Technology in the Production of Goods and Services Notes

Mechanisation: The introduction of machines into production methods; has transformed industry over the last $300$ years.
Automation: Using advanced technology to make production methods work automatically without employee control.
Computer-aided manufacturing (CAM): The use of software and computer-controlled machinery (e.g., robotics) to automate manufacturing processes.
Computer-aided design (CAD): The use of IT to create, modify, and improve designs; allows for rotation and multi-sided views without redraws.
3D printing: Producing a physical three-dimensional object from a digital design, often used for prototypes.
EPOS (Electronic point of sale): Systems used at checkouts to scan barcodes, display prices, and automatically update inventory.
Artificial intelligence (AI): Technology like chatbots that provide conversational responses to customer input, speeding up enquiries.

Manufacturing: Automation and CAM enable $24/7$ operation and higher accuracy in tasks like car body welding compared to human labor.
3D Printing Benefits: Reduces the need for skilled labor and lowers prototype costs. Case study: Sportsmaster used 3D printing to reduce product creation time by $40\%$ and costs by $30\%$ .
Service Sector Productivity: - Contactless payments: Secure transactions via smartphones or wearables that increase speed and reduce operating costs. - Banking: Institutions like Access Bank, United Bank for Africa, Zenith Bank, and Fidelity Bank in Nigeria utilize ATMs, POS terminals, and mobile banking to achieve economies of scale and meet customer preferences for avoiding queues.

Advantages: - Higher productivity and lower average costs. - Improved product quality and reduced waste due to accuracy. - Increased safety as machines handle dangerous tasks. - Higher capacity utilization through continuous output.
Disadvantages: - High initial purchase costs and potential interest on loans. - Small businesses may struggle to compete due to limited finance. - Training costs for employees to maintain advanced equipment. - Equipment failure can halt the entire production process. - Loss of personal touch in customer service.

Positive Impacts: - Provision of redundancy pay for those losing jobs. - Increased job satisfaction as boring, repetitive tasks are automated. - Potential for higher wages due to increased labor productivity. - Opportunities to gain high-technology skills through training.
Negative Impacts: - Risk of redundancies, particularly for unskilled workers. - Fear of change and loss of job security reducing motivation. - Risk of long-term unemployment if workers cannot retrain.
Statistical Context: In the USA, it is estimated that $39 \text{ million}$ jobs could be lost to automation by $2030$ .

Nigerian Banking Discussion: - Why are banks changing? To increase profits, attract more customers, and respond to the declining desire of Nigerians to carry cash. - Technology Changes: Fewer physical branches; shift toward ATMs, internet banking, and mobile phone banking. - Benefits: Achieving economies of scale and reducing transaction costs.
Case Study Review Questions (ATZ and RDZ Aero Engines): - ATZ: A supermarket that automated food production, increasing output by $50\%$ . Discussion involves the impact on their reputation for "handmade" goods. - RDZ Aero Engines: Uses 3D printing for engine parts to reduce weight and waste; faces the challenge of highly-skilled engineers leaving for higher-paid jobs after receiving training.