SWB is in the secondary sector. It produces 150000 wooden bookcases each week using batch production. SWB sells all its output to one customer. Quality control is important. SWB has 240 employees, of which 100 are part-time workers. SWB's managers use noticeboards around the factory and meetings with employees every month to help reduce communication barriers. The Operations Manager is considering introducing just-in-time inventory control to reduce the amount of waste.

Mark scheme

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

1. [2] Firms that process and manufacture goods from natural resources
2. [2] OR Manufacture goods using the raw materials provided by the primary sector
3. [2] OR Uses manufacturing to transform the raw materials generated in the primary sector into a product
4. [1] Partial definition e.g. makes products
5. [1] Reliability of suppliers / time / speed of delivery / availability of inventory at suppliers / distance from suppliers
6. [1] Whether there is steady production / predictable demand
7. [1] Efficient system of ordering materials / good communication systems
8. [1] Whether discounts are available for bulk purchases
9. [1] Cost/availability of storage space
10. [1] Tries to eliminate faults before customer receives products / reduces likelihood that customers get faulty products [k]
11. [1] as only has one customer [app]
12. [1] Not all workers need to be trained (as inspectors employed to check quality) [k]
13. [1] which is important as has 240 employees [app]
14. [1] Cost/need to recruit inspectors/employees to check [k]
15. [1] the bookcases [app]
16. [1] Does not find out how/where fault occurred [k]
17. [1] in each batch [app]
18. [1] High cost if products must be scrapped / reworked / service repeated [k]
19. [1] which clashes with its objective to reduce waste [app]
20. [1] Technical language / jargon / different language spoken [k]
21. [1] so workers do not understand [an]
22. [1] so make wrong number of bookcases [app]
23. [1] Lack of feedback / no opportunity for feedback [k]
24. [1] so do not know / cannot check if message received / understood (correctly) [an]
25. [1] so not able to help reduce waste [app]
26. [1] Noise [k]
27. [1] so employees may not hear / mishear orders [an]
28. [1] in the factory [app]
29. [1] Employees may not be at work [k]
30. [1] as 100 work part-time [app]
31. [1] so not able to obtain the information [an]
32. [1] Too much information / detail [k]
33. [1] so not possible to absorb / take it all in [an]
34. [1] Employees may not see/read message [k]
35. [1] on the noticeboard [app]
36. [1] Not listening / not paying attention [k]
37. [1] in the meeting [app]
38. [1] Wrong communication method/medium used [k]
39. [1] Receiver may not trust the sender [k]
40. [1] Only one source of revenue / sales [k]
41. [1] so if the customer does not buy, the business could fail / experience cash flow issues [an]
42. [1] Can focus / specialise on the needs of that customer [k]
43. [1] increasing customer loyalty [an]
44. [1] Can help planning / know what need to order [k]
45. [1] reduces amount of wastage [an]
46. [1] No need to advertise [k]
47. [1] leading to lower marketing costs [an]
48. [1] Can give customer too much power to influence prices [k]
49. [1] Less administration (compared to several customers) [k]
50. [2] Having a single customer can make it easier to focus on the needs of that customer [k] so more likely to build customer loyalty [an.] However, can spread the risk if more than one customer [k] so if one stops buying they can rely on the other customers [an]. I think having a single customer is too high a risk as the business is totally dependent on one other business for its own success [eval] as it ties its success to the other business over which it has little control. [eval]