Explain two reasons why it is important for FO to manage all of its resources effectively when manufacturing products.

Mark scheme

Marking points from the official mark scheme (May/June 2021). The mark or mark type is shown in brackets.

1. [1] (a) Better understand number of employees needed so labour cost can be better controlled – employees are fully employed / always busy
2. [1] (a) To ensure the maximum output is produced from the least inputs maximises efficiency – increases profit
3. [1] (a) Reduces waste / prevents over or under allocation of resources - not too much inventory ordered – reduces costs
4. [1] (a) Avoiding underproduction – equipment needs maintaining regularly – prevents a lack of output to meet demand
5. [1] (a) Avoiding overproduction – leads to increased storage required for inventory - increases costs / may mean a chaotic working environment – leading to employee demotivation or confusion
6. [1] (a) Will not run out of raw materials – not a shortage of finished product – improved consumer satisfaction
7. [1] (a) Deliveries are made on time – leads to customer satisfaction – improved reputation / repeat orders
8. [1] (a) Application might include wooden furniture, outdoor furniture, nails, brackets, paint, wood, local forests, tables, online ordering.
9. [1] (b) Email Advantages: Can be sent quickly to the suppliers of wood
10. [1] (b) Email Advantages: Can be sent to many people at once
11. [1] (b) Email Advantages: Hard copy if email printed out
12. [1] (b) Email Advantages: Can be saved for reference to later
13. [1] (b) Email Disadvantages: No guarantee it has been read by suppliers of nails
14. [1] (b) Email Disadvantages: Could have gone into junk folder
15. [1] (b) Email Disadvantages: May not be secure
16. [1] (b) Email Disadvantages: If many emails are sent, then it could be lost amongst them
17. [1] (b) Email Disadvantages: Requires an internet connection
18. [1] (b) Mobile (cell) phone Advantages: Know the message has been received
19. [1] (b) Mobile (cell) phone Advantages: Caller can ask questions about the brackets
20. [1] (b) Mobile (cell) phone Advantages: Feedback can be given
21. [1] (b) Mobile (cell) phone Advantages: Receiver more likely to have mobile phone on them so easier to reach
22. [1] (b) Mobile (cell) phone Disadvantages: May take time to reach the correct person
23. [1] (b) Mobile (cell) phone Disadvantages: Time/language differences
24. [1] (b) Mobile (cell) phone Disadvantages: Can be expensive
25. [1] (b) Mobile (cell) phone Disadvantages: Time consuming if need to contact many different suppliers of wood
26. [1] (b) Mobile (cell) phone Disadvantages: No hard copy for reference
27. [1] (b) Letter Advantages: Hard copy
28. [1] (b) Letter Advantages: More formal for legal documents
29. [1] (b) Letter Advantages: A lot of detail can be included about the late delivery of nails and paint
30. [1] (b) Letter Disadvantages: Slower than other two methods
31. [1] (b) Letter Disadvantages: Can be more expensive than other two methods
32. [1] (b) Letter Disadvantages: No guarantee the letter has been received by the supplier of brackets
33. [1] (b) Recommendation: Email best choice if the order is urgent and if a delivery of raw materials is late. FO may need to know when the order will arrive, or manufacturing of furniture may be delayed. A letter will be too slow and using a mobile phone may not get through to the correct person straight away if they are busy, hence will need to keep ringing until they can be contacted, so wasting time.
34. [1] (b) Recommendation: Mobile phone call may be best as it will get instant feedback about the order of wood and the questions can be asked.
35. [1] (b) Recommendation: Letter may be best if express delivery could be arranged about the late delivery of nails and paint. It is more formal that the other two methods and they can be sure it has been received if signed for.