Page 357 - Cambridge IGCSE Business Studies

27: Exam technique

a Identify and explain one advantage and one disadvantage
to Early Riders of using batch production. [8]

Extract from sample mark scheme:

Knowledge [2 × 1] – award one mark for each relevant advantage or
disadvantage identifi ed [max 2].

Analysis [2 × 1] – award one mark for a relevant explanation for each
advantage/disadvantage.

Application [2 × 2] – award two application marks for each relevant
advantage/disadvantage.
Relevant advantages might include:

■ Batch production is a flexible way of working [k] this will help the company

respond effectively to any sudden change in demand for one particular style
or size of bicycle [app]. By switching production to these models [app] sales
will increase leading to higher revenue/profits [an].
■ Workers will have some variety of jobs [k] so this should make the work more
interesting and increase job satisfaction [an]; this is important as workers
being more motivated increases eff iciency.
■ Movement of part finished bikes or finished bikes is reduced [k / app] this

makes production faster and more efficient [an] so helping to eliminate
waste, helping to keep the profit margin high [app]. 355
Disadvantages might include:

■ Batch production can be expensive [k] as more equipment may need to be
purchased which will increase the amount of training needed [an]. This could
be a problem as it will increase costs, which could reduce the profit margin
even further [app].
■ Increased storage costs [k] as more warehouse space is required for parts and
finished bikes [app] to be stored while they are waiting to be finished or sent
to the large stores [app].
■ Time delay due to switching between batches [k] might mean that at busy
times they might not have enough finished bicycles ready for delivery [app]
so this might affect customer satisfaction [an].

■ A fault in a part of the batch will oft en affect the whole batch [k]; if the quality

of local parts or tyres [app] is not up to standard, all the bicycles will be
aff ected [an].
Application marks may be awarded for appropriate use of the following:

■ diff erent sizes
■ children’s bicycles
■ components bought from local suppliers
■ tyres imported
■ located near an airport
■ employs 75 production workers and 10 off ice workers
■ good working conditions
■ sold to large retail shops around the world.