4.3. Achieving quality production
A subsection of Business Studies, 7115, through 4. Operations management
Listing 5 of 5 questions
IRKAM is a company that produces high quality doors for hotels and offices. The company currently uses job production. The Managing Director, Abdul, believes that quality control is important. He is looking for ways to increase productivity. All workers receive on-the-job training. Abdul is thinking of including off-the-job training as well. What is meant by ‘productivity’? What is meant by ‘on-the-job training’? Identify and explain one advantage and one disadvantage of off-the-job training for IRKAM. Advantage: Explanation: Disadvantage: Explanation: Identify and explain two reasons why quality control might be important to IRKAM. Reason 1: Explanation: Reason 2: Explanation: Over the past three years there has been a large increase in demand for IRKAM’s doors. Do you think job production is still the best method of production for IRKAM? Justify your answer.
7115_s12_qp_11
THEORY
2012
Paper 1, Variant 1
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DWT makes solar panels in country Y. This is a low-cost country which is experiencing rapid economic growth. DWT’s production method makes use of specialisation. All 120 of DWT’s employees know that ensuring quality production is important. DWT imports some of its raw materials. The Government of country Y plans to introduce import tariffs of 50%. DWT’s Managing Director said: ‘This decision will affect all of our stakeholders. Why do governments introduce trade restrictions such as import controls?’ Define ‘specialisation’. Identify two reasons why a government might introduce import controls. Reason 1: Reason 2: Outline two ways DWT could try to ensure quality production. Way 1: Way 2: 1 3 Explain one objective of each of the following stakeholder groups of DWT. Customers: Pressure groups: Do you think that all businesses will benefit from operating in a country which is experiencing rapid economic growth? Justify your answer. [ 1 3
7115_s20_qp_12
THEORY
2020
Paper 1, Variant 2
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SWB is in the secondary sector. It produces 150000 wooden bookcases each week using batch production. SWB sells all its output to one customer. Quality control is important. SWB has 240 employees, of which 100 are part-time workers. SWB’s managers use noticeboards around the factory and meetings with employees every month to help reduce communication barriers. The Operations Manager is considering introducing just-in-time inventory control to reduce the amount of waste. Define ‘secondary sector’. Identify two factors a business should consider when deciding whether to introduce just-in-time inventory control. Factor 1: Factor 2: Outline one advantage and one disadvantage to SWB of using quality control. Advantage: Disadvantage: 1 2 Explain two possible communication barriers that might exist at SWB. Communication barrier 1: Explanation: Communication barrier 2: Explanation: Do you think it is a good idea for a business to have only one customer? Justify your answer. [ 1 2
7115_w21_qp_12
THEORY
2021
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TBX manufactures high-quality steel which is used to build railways. The method of production used allows TBX to benefit from economies of scale. The business holds a high level of inventory including iron ore. The Managing Director knows business activity could have an impact on the environment and is considering ways the business can contribute to sustainable development. Identify two ways business activity could have an impact on the environment. Way 1: Way 2: Identify two ways a business could contribute to sustainable development. Way 1: Way 2: Outline two possible economies of scale TBX might benefit from. Economy of scale 1: Economy of scale 2: 1 2 Explain two possible problems for TBX of holding a high level of inventory. Problem 1: Explanation: Problem 2: Explanation: Do you think quality control is the best method for a manufacturing business to use to achieve quality production? Justify your answer. [ 1 2
7115_w23_qp_12
THEORY
2023
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SSG manufactures mobile phones using batch production. Quality control is important. SSG has 130 employees who all receive on-the-job training. The Marketing Manager is analysing cost and output data for product X. An extract is shown in Table 1.1. As product X is in the maturity stage of the product life cycle SSG is considering possible extension strategies. Table 1.1 Extract from SSG’s cost and output data for product X $300000 Rent and other expenses per month $80 Variable cost per unit Output per month Define ‘on-the-job training’. Calculate total variable cost per month. Show your working. Identify four factors a business should consider when deciding which method of production to use. Factor 1: Factor 2: Factor 3: Factor 4: 1 3 Explain one advantage and one disadvantage to SSG of using quality control. Advantage: Explanation: Disadvantage: Explanation: Do you think adding new features to a product is the best extension strategy for a manufacturing business to use? Justify your answer. [ 1 3
7115_w22_qp_11
THEORY
2022
Paper 1, Variant 1
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Questions Discovered
5