Identify and explain two ways SA could use lean production in its factory.

Mark scheme

Marking points from the official mark scheme (May/June 2019). The mark or mark type is shown in brackets.

1. [2] Knowledge [2 × 1] Award one mark for each relevant way
2. [2] Analysis [2 × 1] Award one mark for an explanation for each way
3. [4] Application [2 × 2] Award two application marks for each way
4. [0] Just-in-time/JIT – inventory arrives at production line when wanted/ no warehousing of inventory
5. [0] Kaizen - continuous improvement/eliminates waste/ better layout of factory improves flow of production
6. [0] Cell production – small team working/responsible for complete unit of work
7. [0] Kanban - inventory arrives at production line only when inventory has been used/reduces the holding of inventory
8. [0] Indicative response for (a): Just-in-time (k) means that inventory is reduced to no or very low levels held in storage. (an) This reduces the need for having warehouse space to hold the ingredients to make soap. (ap) SA will need to have good relationships with its suppliers to ensure that the flow production line is not interrupted by inventory running out. (ap)
9. [0] Possible application marks for (a): Produces soap; sold in a mass market; wants to start selling niche market soaps; employs 100 production workers; flow production; batch production.
10. [0] Relevant points for (b) Autocratic advantages: Clear instructions given by manager/quick decision making
11. [0] Relevant points for (b) Autocratic advantages: Less likely to make mistakes if clear what to do
12. [0] Relevant points for (b) Autocratic advantages: Some employees like having no responsibility to make any decisions
13. [0] Relevant points for (b) Autocratic disadvantages: Does not allow worker involvement/one way communication
14. [0] Relevant points for (b) Autocratic disadvantages: May be demotivating for some employees as feel less involved in the business
15. [0] Relevant points for (b) Democratic advantages: Motivating as workers feel they can contribute to the decision making
16. [0] Relevant points for (b) Democratic advantages: Feel they are being listened to and views respected/two way communication
17. [0] Relevant points for (b) Democratic advantages: May have some good ideas for how to improve the work flow as they are the ones working on the production line
18. [0] Relevant points for (b) Democratic disadvantages: More time consuming to make decisions as time taken consulting the employees before decisions made
19. [0] Relevant points for (b) Laissez-faire advantages: Motivating as workers feel in control
20. [0] Relevant points for (b) Laissez-faire disadvantages: Some workers will not like this responsibility
21. [0] Knowledge/Analysis/Evaluation – award up to 10 marks using the level levels-based mark scheme on the next page
22. [0] Level 3 Knowledge/Analysis/ Evaluation: At least 2 x Level 2 + 9–10 marks for well justified recommendation as to which leadership style will be most effective in improving decision making and why the other leadership styles will be less effective. 7–8 marks for some limited judgement shown in the recommendation as to which leadership style will be most effective in improving decision making.
23. [0] Level 2: 4–6 marks Detailed discussion of the benefits and/or drawbacks of each leadership style.
24. [0] Level 1: 1–3 marks Identifies style of leadership and/or identifies features of leadership style
25. [0] Level 1 - 1 mark for each L1 statement (max of 3 marks) e.g. Autocratic leadership style (L1) – will lead to clear instructions being given by the manager for workers to follow (L1).
26. [0] Level 2 - 1 x L2 explanation can gain 4 marks and a further mark can be awarded for each additional L2 explanation (max 6 marks) e.g. Autocratic leadership style will lead to clear instructions being given by the manager. This means production workers will always know what to do and know what is expected of them. However, they will not feel they can contribute or make any comments if they feel something could be improved. (L2)
27. [0] Level 3 - For L3 to be awarded there needs to be at least two L2 marks awarded and then a recommendation which leadership style should be used to ensure there is an improvement in decision making.
28. [2] Award up to 2 additional marks for relevant application for (b).
29. [0] Possible application marks for (b): Produces soap; selling niche market soaps; employs 100 production workers in the current factory; 50 workers in the new factory; 150 combined workforce; directors of SA disagree about leadership style; some managers not involved in important decisions; well-motivated employees are important.