Discuss the extent to which the adoption of lean production techniques will solve DA's current operational problems.

Mark scheme

Marking points from the official mark scheme (May/June 2018). The mark or mark type is shown in brackets.

1. [2] Knowledge: Lean production approach – using fewer resources to make production more efficient; Large range of examples could be given e.g. JIT; waste control methods; TQM (reduces waste of poor quality products); simultaneous engineering; kaizen, etc.; Lean production will require DA to work closely with suppliers; Knowledge of operational issues
2. [2] Application: 1.2% point increase in the proportion of defective products; 50% increase in labour turnover; Linking issues to the new batch production system; Linking material supply problems and lean production; Linking lean production to effect on quality of camping equipment produced; Using reference to investment cost of $2m; Linking introduction of lean production to negotiations with unions
3. [6] Analysis: Problems have emerged since production became more capital intensive. Did this result in work becoming more deskilled? Lean production through its emphasis on multi-skilled employees might help motivate employees and therefore address issues such as labour turnover; TQM would give workers responsibility for quality and this could result in quicker identification of problems and thus improve quality; Quality circles increases worker involvement and use their expertise. This could increase motivation and therefore improve operational efficiency; Implementing lean production takes time as training required. This could create operational issues in the short term and disrupt production
4. [6] Evaluation: Reaction of employees to these changes – are they able or prepared to cope with production methods that require much more involvement from them?; Labour turnover is a key problem. Lean production increases pressure on employees to perform – will this result in greater labour turnover?; Better answers will contain an overall judgement suggesting that lean production methods will help but that other factors will affect production/quality problems too, such as employee training