CQT is a public limited company. It manufactures paint using flow production. This method of production allows CQT to benefit from economies of scale. CQT employs 50 workers. All CQT's raw materials are currently bought from local suppliers. However, the Operations Director knows there are many reasons for globalisation. He has been asked to explain factors a business should consider when deciding whether to relocate its factory to another country. Explain two limitations for CQT of using flow production. Limitation 1: .................................................................................................................. ....................................................................................................................................... Explanation: .................................................................................................................. ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... Limitation 2: .................................................................................................................. ....................................................................................................................................... Explanation: .................................................................................................................. ....................................................................................................................................... ....................................................................................................................................... .......................................................................................................................................
Exam No：0450_s24_qp_13 Year：2024 Question No：3(d)
Answer:
Award 1 mark for identification of each relevant limitation (max 2).
Award 1 mark for each relevant reference to this business (max 2).
Award 1 mark for each relevant explanation (max 2).
Points might include:
- Inflexible/production line is difficult to change [k] so difficult to meet customer demand/needs [an] for paint [app]
- Demotivating [k] for its unskilled 50 employees [app] so may lower efficiency/output [an]
- High level of raw materials/inventory is held [k] increasing storage space/cost [an] for this public limited company [app]
- If one machine breaks down the whole production line stops [k] which could lower output [an] so may not benefit from globalisation [app]
- High initial/set up cost [k] which the business may not be able to afford [an]
Other appropriate responses should also be credited.
To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the poin being made.
The following words are likely to be appropriate for this question:
- Paint
- Economies of scale
- 50 (employees/workers)
- Local suppliers
- Globalisation
- Relocate its factory
- Public limited company
Other appropriate examples can be credited.
Some points can be [k] or [an] but only award once.
Award 1 mark for each relevant reference to this business (max 2).
Award 1 mark for each relevant explanation (max 2).
Points might include:
- Inflexible/production line is difficult to change [k] so difficult to meet customer demand/needs [an] for paint [app]
- Demotivating [k] for its unskilled 50 employees [app] so may lower efficiency/output [an]
- High level of raw materials/inventory is held [k] increasing storage space/cost [an] for this public limited company [app]
- If one machine breaks down the whole production line stops [k] which could lower output [an] so may not benefit from globalisation [app]
- High initial/set up cost [k] which the business may not be able to afford [an]
Other appropriate responses should also be credited.
To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the poin being made.
The following words are likely to be appropriate for this question:
- Paint
- Economies of scale
- 50 (employees/workers)
- Local suppliers
- Globalisation
- Relocate its factory
- Public limited company
Other appropriate examples can be credited.
Some points can be [k] or [an] but only award once.
Knowledge points:
4.1.1.1. Managing resources effectively to produce goods and services
4.1.1.2. Difference between production and productivity
4.1.1.3. Benefits of increasing efficiency and how to increase it, e.g. increasing productivity by automation and technology, improved labour skills
4.1.1.4. Why businesses hold inventories
4.1.1.5. The concept of lean production: how to achieve it, e.g. just-in-time inventory control and Kaizen; benefits of lean production
4.1.2.1. Features, benefits and limitations of job, batch and flow production
4.1.2.2. Recommend and justify an appropriate production method for a given situation
4.1.3. How technology has changed and is changing production methods, e.g. using computers in design and manufacturing
Solution:
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