Identify and explain two methods PP could use to improve the quality of its products.
- (a)Identify and explain two methods PP could use to improve the quality of its products.[8]
- (b)Consider the following three ways PP could reduce its costs. Recommend which way PP should choose. Justify your answer.[12]
Mark scheme
Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.
- [1] Method: Quality control identified
- [1] Explanation of Quality control: checked at the end/by inspectors; aims to eliminate faults before product gets to customers; less training needed as inspectors employed to check quality
- [2] Application mark for Quality control (contextual reference to PP/pottery production)
- [1] Method: Quality assurance identified
- [1] Explanation of Quality assurance: checked by employees throughout the production process; eliminates faults before it passes to the next stage of production; reduced costs as less need to reduce prices of faulty products; more expensive to train staff to check their own work; relies on workers being committed to maintaining a standard
- [2] Application mark for Quality assurance (contextual reference to PP/pottery production)
- [1] Method: Total Quality Management (TQM) identified
- [1] Explanation of TQM: continuous improvement by focusing on each stage of the production process; quality become central ethos of employees; 'right first time' means no customer complaints/reduced costs as no faults to repair or price reductions needed; expensive to train all employees; relies on all employees accepting responsibility for ensuring quality
- [2] Application mark for TQM (contextual reference to PP/pottery production)
- [1] Method: (Employees) Additional training of employees/recruit experienced workers identified
- [1] Explanation of (Employees) Additional training: less likely to make mistakes
- [2] Application mark for Employee training (contextual reference to PP/skilled production workers)
- [1] Method: (Raw materials) Change supplier/improved quality of raw materials identified
- [1] Explanation of (Raw materials) Change supplier: improved quality of final product if inputs better
- [2] Application mark for Raw materials (contextual reference to PP/pottery items)
- [1] Method: (Equipment) Introduction of automation/new technology identified
- [1] Explanation of (Equipment) Introduction of automation: fewer faults as products are standardised
- [2] Application mark for Equipment (contextual reference to PP/factory, traditional methods)
- [1] Reduce marketing budget by 20% (Advantage): Reduces costs spent on advertising
- [1] Reduce marketing budget by 20% (Advantage): Loyal customers may not need advertising to still demand PP pottery products
- [1] Reduce marketing budget by 20% (Advantage): Already well-established/well-known brand so less advertising needed
- [1] Reduce marketing budget by 20% (Disadvantage): May lead to falling sales if consumers are not persuaded to buy the pottery
- [1] Reduce marketing budget by 20% (Disadvantage): Competitors may be advertising and attract customers
- [1] Reduce marketing budget by 20% (Disadvantage): Reduced spending on market research - less likely to understand customer needs
- [1] Reduce marketing budget by 20% (Disadvantage): Need to research new market in country Z – expansion may be hampered
- [1] Increase investment in automated equipment (Advantage): Increases efficiency
- [1] Increase investment in automated equipment (Advantage): Lowers unit costs
- [1] Increase investment in automated equipment (Advantage): Improved quality - standard product so less mistakes/fewer faults
- [1] Increase investment in automated equipment (Advantage): Fewer workers needed leading to reduced wage cost
- [1] Increase investment in automated equipment (Disadvantage): High cost of initial investment may take long time to recoup the expense from lower unit costs
- [1] Increase investment in automated equipment (Disadvantage): Costs incurred of making workers redundant
- [1] Increase investment in automated equipment (Disadvantage): Increased debt
- [1] Increase investment in automated equipment (Disadvantage): Additional training costs
- [1] Change to a cheaper supplier of raw materials (Advantage): Lower cost of raw materials reduces variable costs – increase in the profit margin/lower prices
- [1] Change to a cheaper supplier of raw materials (Advantage): Lower cost of sales - increase profit margin
- [1] Change to a cheaper supplier of raw materials (Disadvantage): May lead to a lower quality pottery reducing reputation
- [1] Change to a cheaper supplier of raw materials (Disadvantage): May increase transport costs (although existing supplier is not local)
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