technology-and-efficiency as

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Exam code:7131

Using technology to improve efficiency

New technologies such as robots, artificial intelligence (AI) software and networked sensors can help a business increase and speed up production, improve quality and reduce waste

Technology	How it improves efficiency	Example
Robotics	Robots work quickly without tiring, so they pick, move or assemble items faster than people and reduce labour costs	Ocado runs grocery warehouses where AI‑guided robotic arms can pick a 50-item order in minutes This reduces the time taken to prepare orders, lowering unit costs
Artificial intelligence	Algorithms predict machine failures, fine‑tune schedules and spot quality issues early, reducing downtime and waste	Unilever uses AI for predictive maintenance as well as simulation software in its factories This helps avoid breakdowns and reduces production waste
Internet of Things (IoT) sensors	Networked sensors stream real‑time data on temperature, the flow of products along assembly lines and energy use, letting staff tweak processes instantly to save resources	Heineken uses sensors in a variety of machines across its factories This cuts energy use and time lost due to breakdowns, pushing efficiency higher

Cuts production time
- Machines and software work fast and around the clock, so more units can be made per hour
Lowers long‑run costs
- After the upfront cost to install and ensure technology is working effectively, robots, AI systems and sensors reduce wage bills, energy use and material waste
Gives consistent quality
- Automated checks catch errors instantly, so fewer faulty items reach customers
Improves safety
- Robots handle heavy lifting or dangerous tasks, reducing injuries
Provides information
- Real-time data show managers exactly where to tweak processes to save even more time and resources

High upfront expense
- Buying robots, sensors and software, as well as paying for staff training, requires a lot of capital before savings appear
Risk of technical failures
- If an automated system crashes or a key part breaks, the whole production line can stop
Skills gap
- Employees need new digital or engineering skills
  - Recruiting or retraining existing workers takes time and money
Job‑security worries 
- Workers may resist automation if they fear it will lead to their redundancy, hurting morale
Cybersecurity threats
- Connected machines and data must be protected from hacking and data loss

Explain why a firm might stay labour-intensive (e.g. flexibility, craft quality, lower upfront cost) even when machines seem cheaper

Balance those gains against capital‑intensive benefits to show both sides