Analyse one way a business might improve the efficiency of its operations.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2023). The mark or mark type is shown in brackets.

1. [1] Efficiency is the ratio between an output gained from an input during business operations - seeking to produce a product with minimum resources
2. [1] Improve production process
3. [1] More capital investment
4. [1] Motivation of employees
5. [1] Waste reduction measures
6. [1] Improve productivity of employees
7. [1] Cheaper supplies
8. [1] More efficient inventory
9. [1] More efficient HRM/skilled managers
10. [1] Better training of employees
11. [1] Workforce planning
12. [1] Business aims to have cost-efficient operations – reducing waste while retaining quality and service
13. [1] Business can improve efficiency – with more cost – efficient operations, – use new and better equipment, waste reduction, use more machines, training for workers, worker involvement, review inventory cost.
14. [1] Invest in new or improve machines/technology
15. [1] Cost efficient operations—reduce costs while retaining quality and service levels
16. [1] Invest in new and improved machines – improve productivity using robotic process operations
17. [1] Focus on waste - waste reduction methods, audit waste costs, measure the impact of waste on the business
18. [1] Become a more capital - intensive business more consistent production – save on employee costs
19. [1] Invest in training for operational employees – increase skills, productivity and employee confidence
20. [1] Involve workers in the business - consultation, worker directors, empowerment, more engagement, ownership
21. [1] Examine inventory costs – change system to JIT – fit for purpose