Do you think SOLS should change its method of production? Justify your answer.
Knowledge [1] – award 1 mark for identification of relevant issue(s) [max 1] Application [1] – award 1 mark for a relevant reference made to this business
Analysis [2] – award up to 2 marks for relevant development of point(s) Evaluation [2] – justified decision made as to whether SOLS should change its method of production
Relevant points might include:
Job production:
• Meet exact customer demands / unique / higher quality [k] so able to charge higher price [an] in a niche market [app]
• More varied work leads to higher motivation [k] leading to few workers leaving / less absenteeism [an]
• Change could damage reputation [k] for its luxury product [app] which could lower its sales [an]
Batch production:
• Flexible or easy to switch production [k] between the 5 styles [app] so able to react quickly to changes in customer demand [an]
• Some economies of scale [k] leading to lower average costs [an]
• Can be demotivating for employees (as work likely to be more repetitive) [k] so may not pay as much attention to quality assurance [app] increasing amount or cost of wastage [an]
• Able to produce more [k] which is important as demand has increased [app] so maybe able to meet additional demand [an]
Cost of new equipment OR training [k]