Business answers

1. Unit 17 – Production of Goods and Services
AnswerstoExam-Style Questions –Paper1
a) Leanproductionisa technique usedbybusinessestocut downonwaste and therefore increase
efficiency.
b) i) Kaizen
ii) Just-in-timeinventorycontrol
iii) Cell production
c) i) Traininghisstaff to be able to produce the cakesmore quicklyusingbettertechniques.
ii) Improve the motivationof the bakers,suchas bygivingthema share of the profitsorincreasing
theirwages(differenttypesof motivationcan be accepted)
iii) Introduce more modernovens,sothatcakesare bakedmore quicklyandmore couldbe
producedina giventime.
d) i) It isa flexible wayof working,sothe bakerycaneasilychange fromone batchof cakesto
anotherbatch of anothertype of cake.Thiswill allow agreatervarietyof productsto be produced.
ii) Itgives a varietyof jobsfor workers,sotheycan change frombakingcakesto bakingbread.This
makestheirjobsmore interestingandthereforetheyare lesslikelytoleavethe business.
iii) Productionislessaffectedif machinerybreaksdown,suchasthe ovensstopworking:thenthe
workerscouldsapto makingan alternative cake whichusesothermachineryandsoproduction
doesn’thalt.
e) Yes,because productionwill be faster,highoutputproduced,costsare lower,capital-intensive
methodscouldbe used,maybenefitfromeconomiesof scale.
or
No,because standardizedproducts,boringforthe workers,large capital costs,machinerybreaks
downthenwhole productionlinestops,consumersmaynotwantto buylarge quantitiesof
standardizeditems.