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ACCA Applied Knowledge · Business and Technology · Technological factors

A manufacturer installs sensors on its production machines that send live performance data to a central system. The system automatically flags a machine when readings suggest a part is likely to fail soon, so that maintenance can be scheduled before a breakdown. Which of the following best describes the main operational benefit of this technology?

The best answer is that it enables predictive maintenance. Live sensor data lets the business predict failures and schedule repairs before breakdowns occur, reducing unplanned downtime. It does not remove human decision-making, and it has no link to exchange-rate exposure, which is a financial risk.

  1. AIt moves the business from reactive repairs to predictive maintenance, reducing unplanned downtimeCorrect
  2. BIt removes the need for any human involvement in production decisions
  3. CIt mainly reduces the business's exposure to changes in exchange rates

Explanation

Sensors that stream machine data allow faults to be predicted and maintenance planned in advance, so unplanned stoppages fall. The second option overstates the effect, since people are still needed to make decisions and carry out repairs. The third option is unrelated, as exchange-rate exposure is a financial risk and not affected by machine monitoring.

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