TJK manufactures candles.Contributing to sustainable development is important to TJK.The business uses batch production in its factory in country X .The target market for TJK's products is females between 20 and 50 years of age.The Managing Director is reviewing TJK's financial data. An extract is shown in Table 3.1.He is also considering the benefits to a business of becoming a multinational company. Do you think batch production is the best method of production for a business to use? Justify your answer.
Exam No:0450_m25_qp_12 Year:2025 Question No:3(e)
Answer:
Award 1 mark for each relevant point [max 2].
Award 1 mark for each relevant explanation [max 2].
Award up to 2 marks for a justified decision as to whether batch production is the best method of production for a business to use.
Points might include:
Batch production:
- Flexible / can easily change from one product to another \([\mathrm{k}]\) so can respond quickly to changing customer tastes [an]
- Variety of products can be made [k] which can widen its customer base/help spread risk [an]
- (Variety of tasks) can motivate employees [k]
- Machines must be re-set between batches [k] which can reduce output [an]
- Warehouse space needed [k] which increases storage costs [an]
Other methods include:
Flow production [k]
- Quick/high output [an]
- Economies of scale [an]
- Low(er) unit cost [an] so able to charge a lower price [an]
- Can operate 24 hours a day [an]
- Few(er) employees / high levels of automation [an]
- If a machine breaks down the whole production line will stop [an]
- High initial cost of machinery [an]
- Can lower motivation [an]
Job production [k]
- Can charge a high price [an] increasing profit margin [an]
- Can meet the (exact) requirements of customers [an]
- (Often) high quality [an]
- Labour intensive [an] which increases (labour) costs [an]
Other appropriate responses should be credited.
Justification might include:
Batch production is flexible [k] which means businesses can quickly respond to changes in customer tastes [an]. However, flow production \([\mathrm{k}]\) might be better as a high output is produced [an]. Batch production is better because responding to customer tastes means you are likely to have less waste products [eval] whereas using flow could result in very high quantities of unwanted products which increases costs [eval].
Award 1 mark for each relevant explanation [max 2].
Award up to 2 marks for a justified decision as to whether batch production is the best method of production for a business to use.
Points might include:
Batch production:
- Flexible / can easily change from one product to another \([\mathrm{k}]\) so can respond quickly to changing customer tastes [an]
- Variety of products can be made [k] which can widen its customer base/help spread risk [an]
- (Variety of tasks) can motivate employees [k]
- Machines must be re-set between batches [k] which can reduce output [an]
- Warehouse space needed [k] which increases storage costs [an]
Other methods include:
Flow production [k]
- Quick/high output [an]
- Economies of scale [an]
- Low(er) unit cost [an] so able to charge a lower price [an]
- Can operate 24 hours a day [an]
- Few(er) employees / high levels of automation [an]
- If a machine breaks down the whole production line will stop [an]
- High initial cost of machinery [an]
- Can lower motivation [an]
Job production [k]
- Can charge a high price [an] increasing profit margin [an]
- Can meet the (exact) requirements of customers [an]
- (Often) high quality [an]
- Labour intensive [an] which increases (labour) costs [an]
Other appropriate responses should be credited.
Justification might include:
Batch production is flexible [k] which means businesses can quickly respond to changes in customer tastes [an]. However, flow production \([\mathrm{k}]\) might be better as a high output is produced [an]. Batch production is better because responding to customer tastes means you are likely to have less waste products [eval] whereas using flow could result in very high quantities of unwanted products which increases costs [eval].
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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