Assess technology in production and services
Explain how automation, mechanisation, CAM, 3D printing and service technology change operations.
Exam scope and assessment notes
Cambridge IGCSE Business Studies 0450, 2026 syllabus, Version 2. Use the 2026 A*–G route; this qualification changes to 0264 for first assessment in 2027. Candidates are not assessed on constructing income statements or statements of financial position, nor on price-elasticity or exchange-rate calculations. Simple cash-flow forecast construction is assessed. Written practice is self-checked, not an official Cambridge grade; timed-paper evidence and human subject-teacher review remain outstanding.
Before you begin
- No previous operations study is assumed. Read the time period, output unit, cost data and operating constraints before calculating or recommending.
Work on paper. Try each question before revealing help, and explain why your method works.
Quick readiness check
Which technology is named in the syllabus as a production example?
What you will learn
- Recognise technology examples
- Explain business and employee effects
- Evaluate investment conditions
Technology changes production methods
Automation uses equipment or systems to perform tasks with less direct human operation; mechanisation uses machinery to assist or replace manual effort. Computer-Aided Manufacture (CAM) can control production equipment, while 3D printing builds objects layer by layer from a digital design.
In services, technologies such as contactless payments can speed a transaction or reduce manual processing. The effect depends on customer access, system reliability and how the technology fits the service.
Benefits require investment and support
Technology may increase productivity, consistency or capacity, and can reduce some repetitive work. It can also require capital, maintenance, training and secure systems; employees may need new skills or face changes to roles.
A business should compare expected benefits with purchase, setup and operating costs and consider how affected employees and customers will use the system.
Pause and explain
Which is one possible employee effect of production technology?
Worked example
A clinic considers contactless payment terminals. Give one possible productivity benefit and one issue to manage.
Show the worked solution
- Payment may take less staff time.
- The system needs reliable connectivity and payment processing.
- Provide another way to pay for customers unable to use contactless.
Answer Contactless terminals may shorten payment transactions and let staff serve patients sooner. The clinic should manage system reliability and retain an accessible alternative for customers who cannot or do not use contactless payment.
Try a topic test
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Test this topic →From guided practice to a new situation
Write your answer and reasoning first. Use a hint only if you are stuck. The model solution is for self-checking; your written work is not automatically marked.
A furniture firm considers a CAM machine for cutting standard panels. Explain one business benefit and two conditions to assess.
Give me a hint
Consider repeated precision and the investment required.
Compare my reasoning
- CAM may produce consistent cuts and raise capacity.
- The machine has purchase and maintenance costs.
- Employees need training and enough suitable production volume.
CAM may improve consistency and output for repeated panel designs. The firm should compare investment and maintenance costs with expected demand and train employees to operate and maintain the machine safely.
Look for these in your work
- Benefit linked
- Cost considered
- Demand and skills considered
A designer proposes 3D printing for every product. Explain why it may suit prototypes but not all large-scale production.
Give me a hint
Compare design flexibility with unit cost and output rate.
Compare my reasoning
- 3D printing can create test designs without some traditional tooling.
- Print speed or material cost may be unsuitable for very high volume.
- A different method may lower cost for standardised output.
3D printing can support prototypes or customised items because designs can be changed digitally, but production time and material cost may be high for large volumes. The firm should compare lifecycle cost and required output with other methods.
Look for these in your work
- Prototype use explained
- Scale limitation stated
- Alternative comparison suggested
A retailer installs self-service checkout. Explain one potential customer benefit, one employee effect and one operating risk.
Give me a hint
Consider speed and access alongside changed roles and system reliability.
Compare my reasoning
- Some customers may complete simple purchases faster.
- Employees may shift from scanning to assistance or exception handling.
- Technical failure can delay service or require staff intervention.
Self-service can shorten simple transactions for some customers. Employees may need training to assist users and resolve errors, while system failure can create queues; the retailer should monitor service quality and provide staffed options.
Look for these in your work
- Customer outcome included
- Employee effect considered
- Operational risk and response
Common mistakes
- Assuming technology removes all labour needs
- Ignoring maintenance and training
- Treating automation as automatically more productive
What can you explain now?
Which technology is named in the syllabus as a production example?
Compare with the explanation
Computer-Aided Manufacture (CAM)
CAM is explicitly listed.
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Make it stick
Why should a business compare technology's full costs and effects on workers as well as output?
If you needed the solution, close it and solve the problem again from a blank page. A correct answer is stronger when you can explain the reason for each step.