Business 0450 · IGCSE · Production of goods and services
Production of goods and services — practice question
NCE uses flow production in 4 factories to make cars. The Human Resources Director at NCE believes that strong induction training supports high productivity. Factory X is the most efficient of the factories. In the previous year, the new car market shrank by 20%. NCE must now make 400 workers redundant at another of its factories. “I am glad NCE is a large business,” said the HR Director. “I think a small business would not be able to survive in this competitive market.”
(a)[2]
What does ‘flow production’ mean?
(b)[2]
Calculate the output per employee in 2014.
(c)[4]
Identify and explain two ways in which induction training could help NCE.
(d)[6]
Identify and explain two factors that NCE would need to take into account when deciding which workers to make redundant.
(e)[6]
The HR Director claims that ‘a small business cannot survive in this competitive market’. Do you agree with this view? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Large quantities of identical products made in a continuous process” …