Discuss ways in which the operations management department of a car manufacturing company could help the business survive during an economic recession.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2016). The mark or mark type is shown in brackets.

1. On its own an operations management department could seek to improve efficiency, reduce costs, enhance product quality by:-
2. process innovation new ways of production – decrease costs.
3. re-engineer the product, enhance quality of cars.
4. strengthen role of CAM and CAD to strengthen efficiency and quality.
5. review and change the transformation/value added processes in the company.
6. With other departments:-
7. work with marketing to review distribution channels, marketing strategies.
8. work with Finance and HRM to review efficiency measures.
9. interim and longer term – e.g. reduce labour force, consider investments in new technology.
10. Perceptive answers will recognise that operations management has the potential to make an impact on the profit/loss position at times of economic recession – but other internal and external factors may also be important.
11. In this question we do not know if the business is /was profitable or is making a loss Candidates could well make assumptions and/or introduce different scenarios.
12. The external environment in this question is clearly not helpful for business survival, and so even if the operations department succeeds in stemming any losses or maintain profitability through lean production, the depressed external environment may well delay or halt any planned business recovery/turnaround.
13. [17-20] Effective evaluation of ways in which an operations department could help the car manufacturer to survive in times of economic recession
14. [13-16] Good analysis and limited evaluation of ways in which an operations department could help the car manufacturer to survive in times of economic recession
15. [11-12] Analysis of role of an operations department in helping a car manufacturer survive in times of economic recession
16. [5-10] Limited analysis with application of the role of an operations department helping a car manufacturer survive.
17. [1-4] Understanding of the role of an operations management department / economic recession.
18. [0] No creditable content