NCE manufactures cars in 4 factories using flow production. NCE's Human Resources Director thinks good induction training helps achieve high productivity. Factory X is its most efficient factory. Last year the size of the new car market fell by 20%. NCE now has to make 400 workers redundant at one of its other factories. 'I am pleased NCE is a large business', said the HR Director, 'I think a small business cannot survive in this competitive market.’ Table 2: NCE operations data for 2014 | | Number of cars made | Number of employees | | :---------------------- | :------------------: | :-----------------: | | | 168000 | 2800 |

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2015). The mark or mark type is shown in brackets.

1. [2] Clear understanding e.g. where large quantities of a product [1] are produced in a continuous process [1]
2. [1] Some understanding e.g. 'makes lots of the same thing' OR identifies one distinctive feature e.g. large scale production/large volumes, identical products, continuous production, capital intensive, repetitive tasks, inflexible.
3. Do not credit examples as this does not answer the question.
4. Application [2] e.g. 60 (cars per employee)
5. Some application [1] e.g. method = total output/number of employees OR 168000/2800
6. Knowledge [2 × 1] – award 1 mark for each relevant way [max 2]
7. Application [2 × 1] – award 1 mark for each relevant explanation in context of this business
8. Relevant points might include:
9. Helps employees to settle into their job quickly/familiarise workers with the business/provide information about the business [k] so can cope with flow production [app]
10. Aware of health and safety/legal issues [k] in the factory [app]
11. Know who to ask if there is a problem [k] preventing wastage of expensive parts [app]
12. Opportunity to communicate culture [k] so all car workers get same message [app]
13. Help keep productivity/efficiency high [k] so NCE remains competitive [app]
14. Application could include: (efficient) factory, cars, car parts, productivity, flow production, competitive market.
15. Do not accept generic points such as increase output, less mistakes or more ideas as these could relate to any type of training.
16. Knowledge [2 × 1] – award 1 mark for each relevant factor [max 2]
17. Application [2 × 1] – award 1 mark for each explanation in context of this business
18. Analysis [2 × 1] – award 1 mark for each relevant explanation
19. Relevant points might include:
20. Identify which jobs are not essential [k] as market might recover the 20% lost [app] so would not want to spend money recruiting them again [an]
21. Performance/output/experience/skills/flexibility [k] making cars [app] so will want to get rid of people who make mistakes [an]
22. Wages/salary [k]
23. Length of service/cost of redundancy [k] if worked at factory for a short time [app] might be cheaper to let go [an]
24. Attitude/attendance/disciplinary record [k] in order to maintain productivity [app] will want to lose poor/bad workers [an]
25. Age/physical ability [k]
26. Application could include: 20% fall in market size, factories, cars, (high) productivity/efficient, 400 (workers).
27. Knowledge [1] – award 1 mark for identification of relevant issue(s) [max 1]
28. Application [1] – award 1 mark if relevant reference made to car industry
29. Analysis [2] – award up to 2 marks for relevant development of point(s)
30. Evaluation [2] – justified decision as to whether it is possible for small manufacturer to survive in a competitive market
31. Relevant points might include:
32. Advantages of being small:
33. Able to specialise/cater to niche market [k] so might not need to compete on price [an]
34. Small business able to react quicker to change in customer demands [k] for type of car wanted [app]
35. Able to offer personal service [k]
36. Disadvantages of being small:
37. Less opportunity for economies of scale/lack capacity [k] in factory [app] so higher unit costs [an]
38. High cost of research and development [k] of, for example, 'greener' vehicles [app] might be too expensive for their budget [an]
39. Can they attract best managers/employees [k] as larger businesses might offer better financial package/security [an]?
40. Less visibility as a brand [k] so harder to get recognition/sales [an]
41. Lower marketing budgets [k] so struggle to have a large market presence [an]
42. Application could include: 20% fall in market size, productivity, flow production, (efficient) factories, 400 redundancies, cars or examples of car companies.
43. Note: Candidate's final decision can be either for or against the statement.