Using the data in Table 1.1, calculate the labour productivity for 2024. Using the data in Table 1.1, calculate the labour turnover of production employees in 2024. Evaluate whether the decision to introduce quality assurance is likely to be beneficial for PAIR.

Mark scheme

Marking points from the official mark scheme (May/June 2025). The mark or mark type is shown in brackets.

1. [1] Labour productivity = annual output / employees OR output per worker in a given time period OR output per worker hour
2. [1] = 105 000 / 50
3. [1] = 2100 (units)
4. [1] Labour turnover = Number of employees leaving the business / Average number of employees × 100
5. [1] 2/50 × 100
6. [1] = 4%
7. [1] Quality assurance: a system of agreeing and meeting quality standards at each stage of production.
8. [1] Contrast to quality control which is checking based on inspection of the product or a sample of products.
9. [1] Less waste.
10. [1] Problems identified during process.
11. [1] Need for final inspection reduced or removed.
12. [1] Easier to trace where faults occur.
13. [1] Employees have greater responsibility for making sure their work meets standards.
14. [1] Greater employee involvement in decision making.
15. [1] Cost of training for employees to fulfil responsibilities.
16. [1] Initial drop in output.
17. [1] Employees may demand higher wages for greater responsibility.
18. [1] Increased pressure on employees.
19. [1] Employees may be resistant to change.
20. Limited application, APP applies knowledge to PAIR once.
21. Developed application, APP + APP applies knowledge to PAIR twice.
22. Links case material to quality assurance
23. [1] PAIR sells B2B.
24. [1] Effective QA might prevent disasters such as the battery fire.
25. [1] Robots are leased to customers.
26. [1] Competitive industry – reputation is important.
27. [1] Decrease in labour turnover from 10% in 2023 to 4% in 2024.
28. [1] Productivity has decreased from 2125 units per worker in 2023 to 2100 in 2024.
29. [1] Productivity in 2024 was below the target of 2200.
30. [1] Increase in the percentage of KB1 output failing to meet quality standards in 2024.
31. [1] Commitment to R&D spending above the industry average.
32. Limited analysis AN - candidate shows one link in the chain of analysis.
33. Developed analysis L2 AN - candidate shows two or more links in the chain of analysis or balanced argument.
34. [1] Faults with products will be identified ensuring that quality standards are met which will increase customer satisfaction AN and this will increase the number of customers who choose to extend their lease for robots resulting in an increase in revenue L2 AN
35. [1] As employees are responsible for checking the robot cleaners for faults APP there will be less waste of materials which will reduce costs AN resulting in an increase in profits L2 AN
36. [1] Employee checking of quality will reduce costs and therefore enable PAIR to offer more competitive prices AN resulting in an increase in sales and therefore profit L2 AN
37. [1] Greater responsibility for quality may increase the motivation of employees which will lead to an increase in work effort and productivity AN and therefore increase output of KB1s L2 AN
38. [1] Introducing QA will require training of employees leading to an increase in costs AN
39. [1] Adapting to QA may reduce the productivity of employees due to resistance to change resulting in less production of KB1s AN and therefore reduce profit L2 AN
40. Limited evaluation EVAL limited supported judgement and/or a weak attempt at evaluative comment.
41. Developed evaluation L2 EVAL supported judgement and/or reasonable evaluative comment.
42. Developed evaluation in context L3 EVAL supported judgement in context and/or reasonable evaluative comment in context.
43. Supported judgement as to overall benefit of quality assurance to PAIR.
44. [1] Critical to PAIR as robots are leased to customers and therefore if the robots are substandard business will end their lease resulting in a loss of sales and profits for PAIR.
45. Factors that the impact might depend on:
46. [1] Extent to which customers value quality above price.
47. [1] The cost to PAIR of substandard production – significant costs as PAIR has a target to solve customer problems within 24 hours. Therefore, PAIR must always have technical staff on hand to deal with customer problems.
48. [1] The quality of the workforce in terms of skills and training and its willingness to adapt to the changes that QA requires.
49. [1] Quality assurance needs to be part of an integrated approach with other functional departmental decisions.