1a2 marks
Define ‘flow production’.
1b2 marks
aa
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Production of Goods & Services (Cambridge (CIE) IGCSE Business)
Exam Questions
2 hours25 questions
22 marks
Identify two methods (other than technology) a business can use to improve efficiency.
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34 marks
State four factors that can influence the amount of inventory a business might hold.
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42 marks
State two ways a business can increase productivity.
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54 marks
Case Study
NSN is a multinational company. It makes cars. Over the years, technology has changed production methods. NSN uses just-in-time inventory control in all its factories. NSN plans to open a new factory in country Z, creating 7 000 jobs. Country Z’s Government has offered an $80m grant to NSN. A spokesperson for NSN said: ‘Governments should support business activity. There were also other factors that influenced our decision to build the new factory there, including the possible effects of economic growth.’
Outline one advantage and one disadvantage to NSN of using just-in-time inventory control.
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64 marks
Identify four factors a business should consider when deciding
which method of production to use.
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72 marks
Identify two methods of production.
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84 marks
Case Study
MRN is a food retailer. It has 490 shops and 70 000 employees. MRN has announced plans to close 80 of its shops. The Human Resources Director said: ‘20% of management jobs will be removed. We want to encourage delegation. MRN will continue to follow legal controls over employment.’ MRN’s directors know it is important that businesses respond to increased competition.
Outline two functions of MRN’s shop managers.
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92 marks
Identify two factors a business should consider when deciding whether to introduce just-in-time inventory control.
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18 marks
Explain two advantages and two disadvantages of using job production.
Refer to the following insert when answering the question
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26 marks
Case Study
Economic growth in country X has created many opportunities for new businesses, such as TGH. TGH manufactures a range of personalised mobile (cell) phone cases using job production. Quality assurance is important to all 8 employees. TGH operate in a niche market. The marketing manager uses e-commerce as TGH’s channel of distribution. She is considering ways to build customer relationships.
Explain one advantage and one disadvantage to TGH of using job production.
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38 marks
Explain two reasons why it is important for FO to manage all of its resources effectively when manufacturing products.
Refer to the following insert when answering the question
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46 marks
Do you think the ways technology has changed production methods benefit all employees? Justify your answer.
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58 marks
Explain two benefits and two drawbacks of specialisation within SSM's manufacturing process.
Refer to the following insert when answering the question
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66 marks
Do you think flow production is the best method of production for a manufacturing business to use? Justify your answer.
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78 marks
Explain two benefits to TT of using lean production methods.
Refer to the following insert when answering the question
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86 marks
Case Study
CTF is a public limited company. It manufactures beds using batch production. The Operations Director is using break-even analysis to calculate the margin of safety for children’s beds. An extract from CTF’s output data is shown in the below table. The Operations Director wants to know how an increase in inflation might affect CTF. She knows there are many environmental pressures that a manufacturing business could respond to.
Extract from CTF’s output data (children’s beds per month) | |
Break-even output | 14 000 |
Current level of output | 18 000 |
Maximum factory output | 25 000 |
Explain two possible advantages to CTF of using batch production.
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96 marks
Case Study
TYA is a limited company which manufactures 300 000 cars a year. It has 600 employees. TYA has high fixed costs. The Managing Director wants to improve efficiency in the factory. He said: ‘Globalisation is changing how businesses operate. Many manufacturing businesses are considering whether to relocate their operations to other countries.’
Explain two methods TYA could use to increase efficiency.
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106 marks
Do you think job production is the best method of production for a small business to use? Justify your answer.
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116 marks
Do you think improving labour skills is the best way for a manufacturing business to increase efficiency? Justify your answer.
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126 marks
Case Study
TBX manufactures high-quality steel, which is used to build railways. The method of production used allows TBX to benefit from economies of scale. The business holds a high level of inventory, including iron ore. The Managing Director knows business activity could have an impact on the environment and is considering ways the business can contribute to sustainable development.
Explain two possible problems for TBX of holding a high level of inventory.
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138 marks
Explain four ways the new technology identified in Appendix 3 could help Bethany improve her business.
Refer to the following insert when answering the question
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146 marks
Case Study
DSY is a private limited company. It produces washing machines and cleaning equipment. The Managing Director wants DSY to expand into a different market. He plans to spend $2bn on developing electric cars. There is a lot of competition in the electric car market. This market is growing rapidly. A leading pressure group has identified the environmental problems of non-electric cars. The Managing Director knows that important decisions about the method of production and the new car’s brand image still have to be made.
Explain two factors DSY should consider when deciding on a suitable method of production for the new product.
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112 marks
Consider the following two ways MB could achieve lean production.
Kaizen.
Just-in-time inventory control.
Which is the best way for Yasin to choose? Justify your answer.
Refer to the following insert when answering the question
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212 marks
Consider the following two ways VP can purchase its inventory.
Head Office purchases the inventory for all the restaurants.
Restaurant managers purchase their own inventory from local suppliers.
Which way should it use? Justify your answer.
Refer to the following insert when answering the question.
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