NSL is a business based in country $$\(X\)$$ ．It manufactures food products including bread and breakfast cereals．NSL uses lean production in its factory．Maintaining quality is important．NSL imports $$\(15 \%\)$$ of its raw materials．Changes in country X＇s exchange rate can affect businesses which import raw materials．NSL＇s Marketing Manager knows the business should respond to changes in consumer spending patterns．She is aware that market research can be used to help make business decisions． Explain two benefits to NSL of using lean production. Benefit 1: Explanation: Benefit 2: Explanation: .......................................................................................................................................

Award 1 mark for identification of each relevant benefit (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:
- Fewer mistakes/errors [k] so less rework / lower repair costs / may improve reputation [an] as maintaining quality is important [app]
- Less inventory held \([\mathrm{k}]\) of imported materials [app] lowering storage costs/amount of working capital [an]
- Cut out some processes [k] when making the food [app] which speeds up production / increase productivity [an]
- Increase motivation [k] leading to lower absenteeism / reduce labour turnover [an] at the factory [app]
- Less waste of time/ materials OR improved efficiency [k]quicker/increased output [an]
- Lower (unit) costs [k] improving competitiveness [an]

Other appropriate responses should be credited.