Technical Factors
Technical Factors include:
- Specialisation
- Diversification
- Mechanisation
- Mass Automation
- New & Emerging Technologies
Specialisation
Specialisation can be described as if a company chooses to specialise this means they concentrate on producing one type of product only.
ADVANTAGE:
· Can purchase raw materials in greater quantities – usually cheaper.
· The market is also more inclined to purchase their products as they see them as a specialist (expert) in that area
DISADVANTAGE:
· If the market for the company’s product declines in sales, they have no other product to rely on to supplement their income.
Diversification
The opposite of specialisation is diversification. This is where a company undertakes the manufacture or supply of a variety of goods or services.
ADVANTAGE:
· When demand for one product declines, the company’s income is supplemented by sales of another product.
DISADVANTAGE:
· Lots of goods mean either lots of workers OR lots of training for staff in all areas. Can be costly
Technical Factors include:
- Specialisation
- Diversification
- Mechanisation
- Mass Automation
- New & Emerging Technologies
Specialisation
Specialisation can be described as if a company chooses to specialise this means they concentrate on producing one type of product only.
ADVANTAGE:
· Can purchase raw materials in greater quantities – usually cheaper.
· The market is also more inclined to purchase their products as they see them as a specialist (expert) in that area
DISADVANTAGE:
· If the market for the company’s product declines in sales, they have no other product to rely on to supplement their income.
Diversification
The opposite of specialisation is diversification. This is where a company undertakes the manufacture or supply of a variety of goods or services.
ADVANTAGE:
· When demand for one product declines, the company’s income is supplemented by sales of another product.
DISADVANTAGE:
· Lots of goods mean either lots of workers OR lots of training for staff in all areas. Can be costly
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Mechanisation
Mechanisation means to replace processes that are carried out by manual labour by a machine that performs the same or similar operation.
This will greatly increase efficiency, productivity and quality.
ADVANTAGES:
· Higher volume of goods that can be produced in a shorter time
· More consistent quality of goods produced
· Machines don’t tire or take holidays, and will work 24/7
· Less likely to have accidents and claim workers compensation.
DISADVANTAGES:
· High initial set up cost and high maintenance/ repair costs
· High cost of training workers to operate machines
· Loss of human jobs in the industry
Mechanisation means to replace processes that are carried out by manual labour by a machine that performs the same or similar operation.
This will greatly increase efficiency, productivity and quality.
ADVANTAGES:
· Higher volume of goods that can be produced in a shorter time
· More consistent quality of goods produced
· Machines don’t tire or take holidays, and will work 24/7
· Less likely to have accidents and claim workers compensation.
DISADVANTAGES:
· High initial set up cost and high maintenance/ repair costs
· High cost of training workers to operate machines
· Loss of human jobs in the industry
Mass Automation
Mass automation production means to produce a large number of products, with the help of specialist machinery/ Robots to complete majority of the processes.
Jobs usually done by humans are replaced by automatic machines or robots which are typically computer controlled for greater accuracy. Automation can greatly improve the speed and quality of manufacture, and production can continue around the clock.
DISADVANTAGE:
· Set up costs are high
· People need to program the computer controlled robotics must be highly trained.
ADVANTAGE:
· That expensive capital equipment is used more efficiently and not left idle for many hours day, workers can be organised into shifts to keep the machines operating.
· Robots don’t take sick leave and can complete jobs that are unsafe for humans with ease.
Mass automation production means to produce a large number of products, with the help of specialist machinery/ Robots to complete majority of the processes.
Jobs usually done by humans are replaced by automatic machines or robots which are typically computer controlled for greater accuracy. Automation can greatly improve the speed and quality of manufacture, and production can continue around the clock.
DISADVANTAGE:
· Set up costs are high
· People need to program the computer controlled robotics must be highly trained.
ADVANTAGE:
· That expensive capital equipment is used more efficiently and not left idle for many hours day, workers can be organised into shifts to keep the machines operating.
· Robots don’t take sick leave and can complete jobs that are unsafe for humans with ease.
New & Emerging Technologies
The evolution of technology is advancing at ever increasing speed. A process that is widely used one day, will be replaced with a more efficient method or more advanced material in a very short amount of time. Human ingenuity continually strives to improve and replace inefficient technologies with new and advanced systems
During a few decades we have seen the emergence of robotics, aerospace industries, fibre optics, mobile telephones, satellite communication, micro-electronics as well as many biomedical advances.
Impact on Work Places
The introduction of viable new technologies can have a great effect on the workplace. Both positive and negative.
The internet, for example, has now allowed people to do some of their work from home (or remotely) as they can access the companies’ software and data from home.
This is very positive as:
· Travel time is reduced
· Fewer people travelling on roads to and from work, means less traffic. Less traffic means faster travelling and less frustration before getting to work.
· More work can be done as working alone at home means no distractions from other workers.
· They can still communicate with all members of the team via video conferencing technology
This can be negative as:
· It is harder for staff to socialize, which can cause social isolation during work hours. Can impact on mental health
· People can become distracted easily at home and not produce as much work.
Impact on workers (Sociological factors)
Technological change and restructuring can lead to:
• Staff redundancy,
• Workers needing to be retrained,
• Lifestyle changes
• Unemployment.
Employers need to be aware of the effects of change of all types of people and their wellbeing and take steps to minimise the adverse impacts.
The evolution of technology is advancing at ever increasing speed. A process that is widely used one day, will be replaced with a more efficient method or more advanced material in a very short amount of time. Human ingenuity continually strives to improve and replace inefficient technologies with new and advanced systems
During a few decades we have seen the emergence of robotics, aerospace industries, fibre optics, mobile telephones, satellite communication, micro-electronics as well as many biomedical advances.
Impact on Work Places
The introduction of viable new technologies can have a great effect on the workplace. Both positive and negative.
The internet, for example, has now allowed people to do some of their work from home (or remotely) as they can access the companies’ software and data from home.
This is very positive as:
· Travel time is reduced
· Fewer people travelling on roads to and from work, means less traffic. Less traffic means faster travelling and less frustration before getting to work.
· More work can be done as working alone at home means no distractions from other workers.
· They can still communicate with all members of the team via video conferencing technology
This can be negative as:
· It is harder for staff to socialize, which can cause social isolation during work hours. Can impact on mental health
· People can become distracted easily at home and not produce as much work.
Impact on workers (Sociological factors)
Technological change and restructuring can lead to:
• Staff redundancy,
• Workers needing to be retrained,
• Lifestyle changes
• Unemployment.
Employers need to be aware of the effects of change of all types of people and their wellbeing and take steps to minimise the adverse impacts.