TKF makes furniture such as beds and tables using job production. TKF has 3 part-time office employees, 8 production workers and 1 manager who is expected to carry out quality control. As the factory is busy, most communication is by email. After a number of customer complaints, the manager thinks TKF has some communication barriers. He believes good internal communication can help TKF be more efficient. The manager is also worried about TKF's cash flow position. Table 1: Cash flow forecast for TKF ($000) | | December | January | February | |---|----------|---------|----------| | Cash in | 35 | 20 | 29 | | Cash out | 29 | 25 | 26 | | Net cash flow | 6 | (5) | 3 | | Opening balance | (3) | 3 | (2) | | Closing balance | 3 | (2) | 1 | Figures in brackets are negative.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2016). The mark or mark type is shown in brackets.

1. [2] Clear understanding: where a single product is made at a time OR makes one product from start to finish (before starting the next one) OR produce a personalized product individually
2. [1] Some understanding: e.g. identifies one distinctive feature of job such as products are made to the specific customer design; often labour-intensive; highly skilled workers; high quality, single product, flexible
3. [2] Clear understanding: checking that a product meets the required standard OR checking of goods at the end of the production process OR Checking the standard of goods through inspection OR process of reviewing accuracy of work bought in or completed
4. [1] Some understanding: e.g. checking the work
5. [2] Problems with medium, e.g. inappropriate medium used [k] as workers might not always have access to emails [app]
6. [2] Problems with sender, e.g. language problems/jargon [k] so workers don't understand terms used by the manager [app]
7. [2] Overload of information [k] which confuses production workers [app]
8. [2] Problems with receiver, e.g. workers do not read messages [k] as three workers are part-time [app] OR customers do not read letters [k] so don't know about its furniture [app]
9. [1] Technical issues, e.g. no internet connection [k] without electricity cannot send emails [app]
10. [1] No opportunity for feedback [k]
11. [1] Wide span of control [k] as manager responsible for eight [app]
12. [1] Wrong message sent [k]
13. [3] Clearer instruction/prevent misunderstandings/fewer mistakes [k] prevents need for rework/reduces waste [an]
14. [3] Increase production/speed up work [k] for furniture orders [app]
15. [1] Faster decision making/problem solving [k]
16. [3] Employees aware of objectives [k] so its eight production workers [app] can/might work faster [an]
17. [3] Better co-ordination between departments [k] if only order wood needed [app] reducing costs of storage [an]
18. [1] Reduce barriers to communication [k]
19. [1] Improve relations between employer and employees/better management/improve motivation [k]
20. [1] More ideas [k]
21. [2] Closing balance is positive for two of the three months [k] so can meet all expenditure/bills [an]
22. [2] Cannot cover outflows in January [k] as net cash flow is (5)/opening balance only three [app] so might damage relationship with suppliers of not able to pay [an]
23. [2] Inflows vary per month [k] so no guarantee have money to pay costs [an] so suppliers might be reluctant to supply wood [app] so cannot meet all its orders [an]
24. [2] Cash inflow decreases in January [k] by 15 [app + an]
25. [2] Cannot predict/rely on regular orders [k] using job production [app]
26. [1] May be a temporary problem [k] as only have three months data