ADVANTAGES + DISADVANTAGES

• Advantages of Automated Production Lines


  -Ensure products are consistently produced at a high standard

  -Reduce errors and number of resources wasted

  -Removing chance of employee injury

  -Tasks performed much faster

  -Technology can complete tasks for extended periods of time

  -Reduce business's wages expenses

  -Enhance overall quality of the product
• Disadvantages of automated production lines 


  -Business might develop a poor reputation if it makes employees redundant

  -May cause employee redundancies

  -Sudden breakdowns may halt production

  -High initial set-up costs

  -Expensive to repair

  -Expenses to do with training employees to use
• Advantages of robotics 


  -Improve the business's reputation

  -Reduce errors and the number of resources wasted

  -Removing need to complete dangerous tasks

  -Performed much quicker than human labour

  -Complete tasks for extended periods of time

  -The number of employees needed can be minimised, decreasing wage expenses

  -Enhance the overall quality the product and allow a business to generate more sales revenue
• Disadvantages of robotics 


  -May develop a poor reputation if employees are made redundant

  -May cause employee redundancies

  -High initial set up costs

  -Expensive for a business to repair and update

  -Expenses around training employees to use technology
• Advantages of CAD 


  -Improve a business's reputation

  -Customers have more flexibility

  -Attract more customers

  -Enabling a more innovative product design process

  -Speed up product design process

  -Increase customer satisfaction and business's number of sales
• Disadvantages of CAD


  -Develop a poor reputation of CAD makes employees redundant

  -May cause employee redundancies

  -High initial set-up costs

  -Costly to update and repair

  -Expenses associated with training employees
• Advantages of CAM 


  -Improve a business's reputation

  -Positively impact employee morale

  -Speed up the process

  -Enhance product quality and customer satisfaction

  -Increase sales revenue

  -Reduces labour expenses
• Disadvantages of CAM


  -Poor reputation if lots of employees are made redundant

  -Employees be made redundant

  -Sudden breakdowns can use production to halt

  -High initial cost setup costs

  -Costly to update and repair

  -Expenses may occur to train employees
• Advantages of AI


  -Improve customer satisfaction and business reputation

  -Greater levels of precision

  -Improve job satisfaction by removing tedious tasks

  -Perform functions much faster

  -Reducing wage expenses

  -Enhance product quality and increase customer satisfaction which can increase sales revenue
• Disadvantages of AI


  -Poor reputation if employees are made redundant

  -Employees may be made redundant

  -High initial set-up costs

  -Costly to maintain
• Advantages of Online Services 


  -Improve business reputation through increased customer convenience

  -Increase the size of its customer base

  -Increase job satisfaction

  -Process bookings faster than employees

  -Increase revenue generated from sales
• Disadvantages of Online Services 


  -Technical difficulties may disrupt business operations

  -Deter customers who lack technological skills

  -Time consuming

  -Cost involved using established platforms

  -High initial establishment costs

  -Expenses to train employees
• Advantages of Forecasting 


  -Improve a business's ability to meet customer demand

  -Prevents excessive ordering of materials

  -Help to minimise the business's impact on the environment and improve its reputation

  -Reduce cost of storage
• Disadvantages of Forecasting 


  -If a business is too reliant, may be unable to meet unexpected demands

  -Quantity of materials ordered may be incorrect to reflect future demand

  -Time consuming

  -Production may halt if a business does not have enough materials

  -May need to hire forecasting specialists which increases wages costs and time for training
• Advantages of the Master production schedule 


  -Reduce impact on the environment

  -Prevents a business from producing an excessive amount of products

  -Provide employees with a clear schedule

  -Employees to develop a positive work-life balance

  -Less likely production will be brought to a halt

  -Businesses are more likely to meet customer demand which can increase sales
• Disadvantages of Master Production schedule 


  -Not flexible

  -Time consuming

  -Expensive
• Advantages of materials requirement planning 


  -Decreasing waste generated in production which helps minimised the impact on the environment and improve its reputation

  -Less likely that production will halt

  -Avoids excess storage which reduces expenses around that
• Disadvantages of materials requirement planning 


  -Time consuming

  -May lead to additional costs
• Advantages of Just in Time


  -Limits the amount of stock wasted

  -Minimise the business's impact on the environment and improve its reputation

  -Reduces storage costs
• Disadvantages of Just in Time 


  -May fail to meet customer demand

  -Less time to check the quality of stock

  -Production will halt if suppliers are unreliable

  -Discounts from bulk buying will be reduced

  -Delivery costs may increase
• Advantages of quality control 


  -Providing customers with consistently high-quality products, and minimising the number of faulty goods or services they receive can improve a business's reputation

  -Reducing the number of faulty goods or services that are sold to customers can minimise the number of refunds.

  -The strategy is relatively inexpensive as it controlled internally and no external parties are required to carry out quality checks.
• Disadvantages of quality control 


  -Not actively attempting to reduce the level of wastage produced which can negatively impact a business's reputation as it may be associated with harming the environment

  -Potentially causing the business to develop a reputation for selling poor-quality products

  -Boring work for employees to check production line for defects

  -It is time consuming to address the causes of error.

  -Errors are eliminated after they occur when the product has already been produced. May cause costs with waste.
• Advantages of quality assurance


  • Reduce the amount of waste generated in production which can enhance a business's reputation as it is perceived to be environmentally friendly
  • Receiving external certification from an independent body can improve a business's competitiveness as customers are likely to have increase confidence in the business and its products
  • Improve the safety of the workplace for employees
  • Reduced number of errors enables production to flow smoothly
  • Minimise number of resources wasted which can allow for the business to utilise its resources and avoid repurchasing of wasted inputs
  • Gaining external certification can be used as a marketing tool, which can increase sales
• Disadvantages of quality assurance 


  -Employees may have to be trained to comply with new procedures

  -Completing documentation needed for the external body can be time consuming for a business

  -May be expensive to organise an external body to asses the operations systems of a business.
• Advantages of Total Quality Management 


  -A business can adapt TQM to specific business requirements

  -Engaging in TQM can minimise the amount of waste generated which can improve the reputation

  -Employees may feel increasingly valued as they are involved

  -The business can utilise its resources and minimise the amount of wasted inputs that are needed to be repurchased
• Disadvantages of Total Quality Management 


  -Employees may feel confused about their roles if managers fail to communicate the strategy

  -It may take time for the benefits of TQM to show

  -May be costly to introduce as employees may have to be trained.
• Advantages of global sourcing of inputs 


  -A business is able to source materials that may not be readily available in its country of operation

  -Higher quality materials can be sourced by a business allowing a product to better meet customer expectations

  -There is greater access to cheaper raw materials and resources from overseas, allowing a business to reduce its operating costs

  -A business may be able to negotiate a lower price for its inputs as there is greater competition between overseas suppliers
• Disadvantages of global sourcing of inputs


  • Imports may be affected by government-imposed quotas limiting the number of suppliers a business can import
  • It may be difficult to communicate with suppliers
  • Different time zones and locations may be difficult to monitor the activities of suppliers
  • Materials may be damaged during transport
  • If a supplier does not treat its employees ethically then this may reflect badly on the business's reputation
  • Transporting inputs over large distances can increase a business's carbon footprint and negatively impact the reputation
  • Delivery may be time-consuming
  • A business may incur additional costs
  • If resources are damaged during transport, they may need to be discarded which increases a business's expenses
• Advantages of overseas manufacture 


  -There is greater access to highly skilled employees who have expertise in production

  -Cheaper labour costs can allow a business to lower its product prices which can increase customer satisfaction and sales

  -Overseas workers are provided with employment and an income allowing them to support their families

  -Production speeds can be improved through the use of highly skilled and experienced overseas employees

  -There is greater access to labour resources which can reduce business costs

  -Setting a plant overseas may be less costly
• Disadvantages of overseas manufacture 


  -Manufactured goods may be damaged during transport

  -Poor corporate social responsibility may reflect badly on the business

  -Members of the local community may resent the business for taking jobs away from the local economy

  -Local employees may lose their jobs

  -Delivery is time consuming

  -Poor communication and language barriers may lead to production and delivery delays
• Advantages of global outsourcing 


  -The quality of business activities can be improved as the external business may be experts in the area

  -A business can allocate more resources and focus on its own areas of expertise

  -Productivity may increase as the external business has the expertise to complete tasks more efficiently

  -The business has more time to focus on its own areas of expertise, increasing the productivity

  -decrease in labour costs as global outsourcing reduces the need for local employees
• Disadvantages of global outsourcing 


  -A business has reduced control over some of its activities as they have been transferred to an external business

  -It may be difficult to communicate due to language barriers

  -The quality may decline if the external business is dealing with multiple businesses at once

  -Poor corporate social responsibility practices performed by the external environment may reflect badly on the business's reputation

  -Local employees from the business's main operating country are likely to lose their jobs