An initial direct effect of the development of ICT is that new information technologies can lead to lower production costs. The computer has taken over direct simple work from us, which has helped to lower costs. Another example can be found in CAD/CAM: computer aided design and computer aided manufacturing. Computers have taken over skills that were originally done by hand. These include for example, body spraying of cars, general manufacturing of the body of cars. An example from the Ford car industry shows us how effective these costs savings can be. The costs are removed, as the companies no longer need the skilled workers who used to create the products. Another advantage to the manufacturing companies is that creation of products is not limited to the standard working day, manufacture can be done 24 hours a day. Cars have to meet extensive safety regulations and, to make sure they do, they have to undergo certain crash tests. In 1985 it cost Ford £ 37,759.86 every time a car crashed into the test wall. Now such a crash can be simulated on a computer, and as a result the costs now only amount to £ 125 per crash. It is expected that in 2001 the costs will fall even further to £ 5. A benefit of increased technology use could that increased safety tests run by computers could lead to safer cars. However a problem that may also arise out of this is that computers may also make mistakes, which could lead to unsafe cars.
Overall the consumer and the managers of big businesses have benefited from the changes in technology within the manufacturing industry, through the drops in prices. Mass production has allowed business’ to lower the price that they sell their products to the consumer. Prices have become more affordable so that even the working classes can afford to have material goods such as cars.
One of the downsides for the manufacturing industry is that due to the lack of demand of skilled labourers people who have the necessary skills to manufacture products. Therefore employers gain from a reduction in costs but skilled tradesmen lose their jobs to robots that can complete the job in less time and more efficiently for a fraction of the price.
Before the introduction of the new technology the manufacturing people to provide income relied upon industry. Large communities of people were involved in big factories. Now the focus has shifted from physical labouring to the maintaining of the machines.
The impact on food manufacturing.
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