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O-LevelBusiness StudiesOperations management7115/11 · May/June 2023 · Q120 Marks

WLT manufactures carpets. It exports 40% of its products. Globalisation has created opportunities and threats for WLT. Its method of production allows WLT to use specialisation. All of its 60 employees understand that quality assurance is important. WLT's directors are considering the best way to increase efficiency.

  1. (a)Define 'specialisation'.[2]
  2. (b)Identify two methods of production. Method 1: Method 2:[2]
  3. (c)Outline two advantages to WLT of using quality assurance. Advantage 1: Advantage 2:[4]
  4. (d)Explain one opportunity and one threat of globalisation for WLT. Opportunity: Explanation: Threat: Explanation:[6]
  5. (e)Do you think improving labour skills is the best way for a manufacturing business to increase efficiency? Justify your answer.[6]

Mark scheme

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

  1. [2] When people/businesses/countries concentrate on what they are best at;
  2. [2] Focusing an individual or group on one particular skill or process that they are suited to or for which they possess the correct skills;
  3. [1] Way in which work is divided so each worker concentrates on a specific task; [1] so they become expert at it;
  4. [1] Partial definition, e.g. Workers do only one job;
  5. [1] Other appropriate responses should also be credited.
  6. [1] Job (production);
  7. [1] Batch (production);
  8. [1] Flow/mass (production).
  9. [1] Reduces faults/errors at all stages of production/fewer mistakes [k] when making carpets [app];
  10. [1] Less waste/less rework (of faulty products) [k] which could help improve efficiency [app];
  11. [1] Encourages teamwork which may motivate worker [k] among its 60 employees [app];
  12. [1] Fewer customer complaints/fewer customer returns/replacements [k];
  13. [1] Better brand image/improve/maintain reputation [k];
  14. [1] Reduce inspection costs/do not need to hire inspectors [k];
  15. [1] Allows business to know at what stage mistakes happen [k].
  16. [1] Other appropriate responses should also be credited.
  17. [1] Increase potential sales/access to more markets [k] as it exports 40% of its products [app] increasing revenue [an];
  18. [1] Cheaper raw materials from other countries [k] to manufacture [app] which can improve the profit margin [an];
  19. [1] Labour may be cheaper [k] reducing (labour) costs [an];
  20. [1] Economies of scale or relevant examples [k];
  21. [1] Global brands are more recognised/desirable [k].
  22. [1] Increased competition [k] leading to a reduction in market share [an];
  23. [1] Employees may leave if WLT cannot pay as much as international competitors [k] so may lose some of its 60 employees [app] increasing recruitment costs [an];
  24. [1] Over dependent on supplies from other countries [k].
  25. [1] Other appropriate responses should also be credited.
  26. [1] Able to work faster [k] which will increase output per worker [an];
  27. [1] Fewer mistakes are made [k] leading to less rework/wastage [an];
  28. [1] Training takes employees time [k] which will lower output in the short-term [an];
  29. [1] Increase training costs [k] which will increase unit costs [an];
  30. [1] Workers are more versatile/flexible [k].
  31. [1] Automation/machinery [k] allows operation with fewer employees [an];
  32. [1] Lean production/Just-in-time/Kaizen [k] therefore lower cost per unit [an];
  33. [1] Improved motivation or methods of motivating, e.g. piece rate [k].
  34. [1] Other appropriate responses should also be credited.
  35. [k] Improving labour skills can mean that employees make fewer mistakes; [an] leading to less rework. [k] Whereas automation allows the business to operate with fewer employees; [an] Improving labour skills is the best way, because automation could lead to redundancies which may demotivate the remaining employees [eval] and potentially leading to less output overall [eval].

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About this question

Topic
Operations management, O-Level Business Studies (syllabus 7115). Structured question, 20 marks.
Source
O-Level Business Studies, May/June 2023 Paper 1 Variant 1, question 1.

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