Identify and explain two ways in which TT might achieve quality production.

Mark scheme

Marking points from the official mark scheme (May/June 2017). The mark or mark type is shown in brackets.

1. Knowledge [2 × 1] - award one mark for each way.
2. Analysis [2 × 1] – award one mark for a relevant explanation for each way.
3. Application [2 × 2] – award two application marks for each way.
4. Award one mark for each way (maximum of two), from this list:
5. Quality control
6. Quality assurance
7. Quality labour - skilled/trained workers
8. Quality materials – consider producing own T shirts instead of buying in
9. Use new technology/new computer-controlled equipment/CAD,CAM or CIM
10. TQM/quality circles
11. Do not accept JIT or lean production.
12. Award a maximum of three additional marks for each explanation – 2 of which must be applied to this context - of how the quality can be achieved.
13. Indicative response: Quality control (k) means that each batch of children's T-shirts are checked at the end of the production process (app) If there are any faults then the batch can be sewn up and repairs made to any gaps in the seams (app) so that products only leave the factory if they are correctly made and in perfect condition (an).
14. Possible application marks: Ready-made plain white T-shirts; high quality material; prints designs; T-shirts imported from country Q, a developing country; 50 different designs; batches production of various sizes; personalized T-shirts; buying new computer controlled equipment for $500 000; retailers expect high quality products
15. There may be other examples in context that have not been included here.
16. Relevant points might include:
17. Option A - take over competing company: Advantages - Specialised in different product range - increase sales. Economies of scale possible - reduce management layers - reduce wage costs. Increase efficiency – share good practice - lower unit costs - more competitive - increase profit. Disadvantages - High cost to buy out shareholders. No guarantee of success - no expertise in this market. Low staff morale – job insecurity - lack of coordination between the two management structures - diseconomies of scale.
18. Option B - expand own production facilities: Advantages - Increased efficiency from new equipment - increased output – increased sales. Not using a wholesaler – absorb profit margin. Option B is cheaper than Option A. Disadvantages - May need joint venture/use an agent - reduce profit margin - lower profit. Lack of knowledge of export market - culture/taste may be different - more difficult to have effective marketing.
19. Knowledge/Analysis/Evaluation – award up to 10 marks using the levels-based mark scheme below.
20. Level 3: At least 2 x Level 2 + 9-10 marks for well justified recommendation of which option to choose and why not choose the alternative option.
21. Level 2: 7-8 marks for limited recommendation of which option to choose.
22. 4-6 marks Detailed discussion of advantages and/or disadvantages of each option.
23. Level 1: 1-3 marks Outline of advantages and/or disadvantages of each option.
24. Level 1 - 1 mark for each L1 statement (max of 3 marks) e.g. Economies of scale are possible if they take over another company.
25. Level 2 - 1 x L2 explanation can gain 4 marks and a further mark can be awarded for each additional L2 explanation (max 6 marks) e.g. Economies of scale are possible if they take over another company as T-shirts could be purchased in bulk and a discount received. However, it will cost over $10m to buy out the shareholders and they may not be able to finance it. (L2 plus 1 App mark for consideration of the costs of the takeover of a competitor).
26. Level 3 - For L3 to be awarded there needs to be at least two L2 marks awarded and then a recommendation of which option to choose.
27. Award up to 2 additional marks for relevant application.
28. Possible application marks: private limited company; set up 15 years ago; in country P; buys ready-made plain white T-shirts; prints designs; T-shirts imported from country Q, a developing country; 50 different designs; batches production of various sizes; sold to small retailers in country P;expect high quality; share capital $2 m; increased to $8 m by 2015; exporting T-shirts; take over DesOwn; personalized T-shirts; sells online; raise $10 m to buy out the existing shareholders; buying new computer controlled equipment for $500 000; sell directly to large retailers; use an agent or a joint venture; really unhappy factory workers; workers want to leave.
29. There may be other examples in context that have not been included here.