Production of goods and services

Javid is a firm that makes a range of luxury chocolates through batch production. Over the last year, profit has declined because competition has increased. To reduce costs, the Finance Director has proposed that the business introduces new technology into the production process. The Human Resources Director is uncertain whether workers would gain from the introduction of new technology.

May/June 2015

Rafiq serves as the Operations manager in a small factory. The business produces a variety of soft drinks by using batch production. Last year, one of the 40 employees suggested an idea, and Rafiq successfully put in place just-in-time inventory control based on it. Since the business is planning to grow, Rafiq believes switching to flow production would be a sensible move.

May/June 2016

Saltan produces a variety of cars. Inventory levels are too high, so the company intends to cut output at its factory. Staff were informed that, because competition is rising, the business must shrink the size of its workforce. The trade union is unhappy that 360 of the 1200 skilled full time employees at Saltan will become redundant. A trade union spokeswoman said: ‘Saltan ought to shorten the hours of all employees instead of cutting jobs.’ Saltan’s Operations Director is weighing up methods of improving efficiency in the factory.

May/June 2016

GKK manufactures plastic bottles for a wide variety of products, ranging from food products to chemicals. Its raw materials are purchased from a low-cost country. GKK has a broad organisational structure with a short chain of command, so delegation is possible. The Government intends to bring in new legal controls to protect the environment. The Operations manager commented: ‘The Government may meet one of its objectives, but what effect will this have on GKK? This is a competitive market, so prices matter.’ He aims to raise efficiency and is planning to use lean production.

May/June 2017

WLT makes carpets and sends 40% of its output abroad. Globalisation has brought both chances and risks for WLT. Its production method enables WLT to apply specialisation. All 60 employees know that quality assurance matters. WLT’s directors are weighing up the most effective way to improve efficiency.

May/June 2023

CGM uses job production to make high quality shoes. This production method relies on specialisation. CGM operates in a niche market. The managers at CGM understand that every business activity generates external costs, so they always try to behave in ways that protect the environment. The Operations Director wants profit to rise. CGM could either purchase cheaper raw materials or add new technology to the production process. The new technology would cost $30000 and could cut the workforce from 30 to 26.

Oct/Nov 2017

SOLS manufactures 5 styles of luxury men’s shoes by using job production. SOLS works in a niche market. Quality assurance matters. All materials, including leather, are brought in from abroad. SOLS applies cost plus pricing. The shoes are sold straight to customers through its website. The Managing Director said: ‘We can sell our shoes for $100 less a pair than our competitors because we have no shops.’ Demand is growing and the Managing Director must decide whether to switch to batch production.

Oct/Nov 2018

TRB is a small business operating in the secondary sector. TRB assembles computers. Apart from the battery and the glass for the screen, every component is brought in from overseas. 40% of its products are exported. A lot of its competitors are moving to low cost countries. The Operations Director at TRB believes that globalisation may offer more opportunities than threats for TRB. She is considering methods to raise efficiency in the factory. One possibility is to adopt lean production methods.

Oct/Nov 2018

Identify and explain two roles performed by the Operations manager at GT.

Oct/Nov 2018

YMG is a private limited company and the biggest producer of soft drinks in country Y. Every year, YMG makes 1 billion litres by using flow production. The Managing Director wants the business to grow. He explained: ‘My plan is to raise output to 3 billion litres within the next 5 years. That would let us sell our products in fresh markets in other countries. I realise that import quotas and a lack of local knowledge may create difficulties, but there are methods we can use to deal with them.’ He also intends to put $60m into new technology so efficiency improves.

Oct/Nov 2020

NSN is a multinational company. It manufactures cars. Over time, technology has altered production methods. NSN uses just-in-time inventory control in every factory. NSN plans to open a new factory in country Z, which will create 7000 jobs. Country Z’s Government has offered NSN an $80m grant. A spokesperson for NSN said: ‘Governments ought to support business activity. Other factors also influenced our choice to construct the new factory there, including the possible impact of economic growth.’

Oct/Nov 2021

SWB operates in the secondary sector. It makes 150 wooden bookcases each week through batch production. All of its output is sold to a single customer. Quality control matters. SWB employs 240 workers, and 100 of them work part-time. To cut communication barriers, SWBs managers rely on noticeboards placed around the factory and monthly meetings with employees. The Operations Manager is thinking about adopting just-in-time inventory control to cut the amount of waste.

Oct/Nov 2021

Explain two advantages and two disadvantages that specialisation can create in a manufacturing process.

Oct/Nov 2021

Explain two benefits and two drawbacks of using job production.

Oct/Nov 2021

SSG produces mobile (cell) phones by batch production. Maintaining quality control is essential. SSG employs 130 workers, and every one of them is given on-the-job training. The Marketing Manager is studying cost and output figures for product X. An extract is provided in Table 1.1. Because product X is at the maturity stage of its product life cycle, SSG is thinking about possible extension strategies.

Oct/Nov 2022

Explain two benefits and two limitations of CC that arise from using batch production.

Oct/Nov 2024

Explain two reasons for FF’s use of job production.

Oct/Nov 2025