Identify and explain one advantage and one disadvantage to HGH of using batch production.
Knowledge [2 ´ 1] – award 1 mark for an advantage and disadvantage identified
Application [2 ´ 1] – award 1 mark for each relevant reference made to this business
Analysis [2 ´ 1] – award 1 mark for each relevant explanation Relevant points might include:
Advantage:
· Flexible [k] easier to change engines made [app] to better meet customer demands [an]
· Some economies of scale [k] when buying parts for factory [app] which can help reduce average costs [an]
· Less impact if machinery breaks down [k], so other stages can continue OR some output made [an]
· Spread risk as can make more than one type of product [k]
· Variety of products [k] could lead to more sales [an]
· Some variety in work can motivate workers [k] leading to less absenteeism [an]
Disadvantage:
· Time lost switching OR resetting machines between batches [k] could lead to lost output [an]
· Added cost of moving or storing semi-finished goods [k]
· Inventory may be sitting around between stages [k] increasing costs [an] so profit may decrease by more than 30% [app]
One fault could affect entire batch [k] increasing waste [an]