Business · 4 Operations management

4.1.2 The main methods of production

Before you start

Production turns inputs — materials, labour, machinery — into goods or services.
Cost per unit is the total cost of making products divided by how many are made; spreading a big cost over more units makes each unit cheaper.
Motivated employees tend to work harder, make fewer mistakes and are absent less (the ideas behind motivation).
Inventory is the stock of materials and products a business holds, and holding it costs money (4.1.1).
Business answers are marked by skill: k for knowledge, app for applying it to the business in the question, an for analysis, eval for a justified decision.

Syllabus objectives covered (3)

job, batch and flow production
advantages and disadvantages of job, batch and flow production
recommend and justify an appropriate production method for a given situation

Part 1 of 6

Three methods, told apart by two questions

Every production method answers two questions. Is each product different, or are they identical? And does production stop and change between groups, or run without stopping? Hold on to those two questions and you can place any business you are given.
Job production is making a single product, one at a time, to the particular requirements of one customer. Each item is usually different from the last. Think of a wedding cake designed for one couple, a suit made to one person's measurements, a house designed for one family, or a bridge.
Batch production is making a group — a batch — of identical products together. The whole batch moves through each stage of production before the next batch starts, and the next batch is often a different version. A bakery that makes 300 white loaves, cleans the mixer, then makes 200 wholemeal loaves in the same equipment is using batch production.
Flow production (also called mass production) is making large numbers of identical products continuously, with each product moving straight from one stage to the next along a production line. The line does not stop to change product. Soft-drink cans, mobile phones and cars on an assembly line are made this way.
Now run the two questions. Different products, one at a time: job. Identical products, but in groups with a stop and a change between them: batch. Identical products, non-stop: flow.
The trap: thinking 'batch' means 'a small amount' and 'flow' means 'a large amount'. A batch can be 50 000 tins of blue paint. What makes it batch is that production then stops and switches to red. Quantity alone does not decide the method.

Part 2 of 6

Job production: advantages and disadvantages

Advantage — the product meets the customer's exact needs. Because it is made for one person, customers are usually willing to pay a high price for it, so revenue per item is high.
Advantage — high quality and uniqueness. Skilled workers can take the time to get every detail right, which builds the business's reputation.
Advantage — varied, skilled work. Employees make something different each time and see the finished product, which tends to motivate them.
Advantage — flexible. The business can change what it makes for every order.
Disadvantage — high cost per unit. Skilled labour is expensive and each item takes a long time, so the cost of each product is high.
Disadvantage — slow. Few products are made in a period, so output and total sales are limited.
Disadvantage — materials cost more. Materials are usually bought in small quantities for each order, so bulk-buying discounts are rarely available.
Notice the pattern: nearly every advantage is about what the customer gets, and nearly every disadvantage is about cost. That is why job production suits products customers will pay a lot for.

Part 3 of 6

Batch production: advantages and disadvantages

Advantage — some variety and flexibility. The business can make different versions — flavours, colours, sizes — by changing what the next batch is, and can respond when demand for one version rises.
Advantage — lower cost per unit than job production. Many identical items are made at once, so the cost of setting up is spread over the whole batch and materials can be bought in larger quantities.
Advantage — machinery is shared. The same equipment makes several products, so the business does not need separate machines for each one.
Disadvantage — time lost between batches. Machines must be cleaned, reset or adjusted before the next batch. While that happens, nothing is produced, which raises costs.
Disadvantage — inventory builds up. Materials wait for their batch to start, and finished batches wait to be sold, so storage costs rise and money is tied up.
Disadvantage — repetitive work. Making hundreds of the same item can be boring, which can reduce motivation.
Disadvantage — planning is needed. If the wrong batch is scheduled, the business may run out of one version while holding too much of another.

Part 4 of 6

Flow production: advantages and disadvantages

Advantage — very low cost per unit. Output is huge, so the large costs of the line are spread over a very large number of products, and materials are bought in bulk. The business can set a low price and still make a profit.
Advantage — high output. Production runs continuously, often using automated machinery, so large and steady demand can be met.
Advantage — consistent quality. Every product goes through the same stages in the same way, so products are standardised.
Disadvantage — very high set-up cost. A production line and its machinery are expensive to buy and install, so a large amount of finance is needed before a single product is sold.
Disadvantage — inflexible. The line is built for one product. Changing the product can mean rebuilding the line, so if customers' tastes change the business struggles to respond.
Disadvantage — one breakdown stops everything. Each stage feeds the next, so if one machine fails the whole line stops.
Disadvantage — boring, repetitive work. Employees doing one small task all day may be demotivated, which can lead to absence and more mistakes.
Disadvantage — needs high, steady demand. The low cost per unit only happens if the line runs near full output. If demand falls, the high costs of the line are spread over fewer products.
The trap: writing that flow production gives 'poor quality'. It gives consistent, standard quality. What it cannot give is individual, customised products.

Part 5 of 6

Choosing the right method for a business

There is no best method, only the best method for this business. The evidence you need is always in the question, so read it looking for these five things.
What does the customer want? Each order different from the last points to job production. A few versions points to batch. One identical product points to flow.
How big and how steady is demand? Low or one-off demand suits job. Demand that varies between versions or seasons suits batch. Large, steady, long-lasting demand is what makes a flow line worth building.
How much finance is available? A small business with little money cannot pay for a production line. Compare the cost in the question with the money the business has.
What price will customers pay? A high-priced, personal product can cover the high cost of job production. A mass-market product sold cheaply needs flow production's low cost per unit.
How long will demand last? An expensive flow line needs years of sales to pay for itself. A short contract or a product likely to go out of fashion makes it risky.
Remember that businesses can combine methods. A furniture maker might use batch production for standard chairs and job production for custom tables. A recommendation that uses one method for one product and another for a second product is valid if you justify it.

Part 6 of 6

How 'recommend and justify' earns 8 marks

In the specimen Paper 1, the last part of every question is worth 8 marks and ends 'Justify your answer' — a recommendation question has exactly that shape. Its 8 marks are 2 for knowledge, 2 for application, 2 for analysis and 2 for evaluation. You cannot reach 8 without all four skills.
Build two developed points first. A good plan is one point for each method being compared. Each point: name the feature [k], tie it to a fact in the stem [app], and say what it leads to for this business [an].
Example: 'Flow production has a very high set-up cost [k]. The line would cost $300 000 but the business has only $90 000 [app], so it would have to borrow, and interest payments would reduce its profit [an].'
Then decide. Name the method you recommend. An answer that says 'both have advantages, it depends' and never chooses has not made a justified decision.
Justify with something new. The evaluation marks are for weighing the points, not restating them. Useful ways to do that: say which factor matters most for this business and why; say why the method you rejected is worse here; or say what the decision depends on, then use the stem to settle it.
Weak evaluation: 'Batch is better because it has lower set-up costs.' That repeats the analysis. Strong evaluation: 'Batch is better, because the contract lasts only three years — if the retailer does not renew, the business would be left with debt for a line that can make only one toy.'

Worked examples

Example 1. Identify the method of production used in each case, and say how you know. (a) A tailor makes a suit to one customer's measurements and choice of cloth. (b) A furniture maker produces 40 identical oak tables, then resets its machines and produces 60 identical pine chairs. (c) A water company fills 50 000 identical bottles a day on a line that runs without stopping.

Show the working

Ask the two questions for each: are the products identical or different, and does production stop to change between groups?
(a) One suit, made for one customer, different from the next suit. That is job production. The number is one and the product is individual.
(b) The tables are identical to each other, and so are the chairs — but production stops and machines are reset between the two groups. Identical items made in groups with a change between them is batch production.
(c) Identical bottles, made continuously, moving from one stage to the next without stopping. That is flow production.
Notice that (b) and (c) both make identical products. The difference is the stop-and-change in (b). That is the test to reach for whenever you are unsure whether something is batch or flow.

Answer: (a) Job production — a single product made to one customer's requirements. (b) Batch production — groups of identical products, with production stopping and changing between batches. (c) Flow production — identical products made continuously on a line.

Example 2. SnapCase makes plastic phone cases. Its most popular case, made for one phone model, sells a steady 20 000 a week. SnapCase is considering building a flow production line for this case. The line would cost $250 000 and could only make cases in that shape. The phone's manufacturer usually releases a new model every two years. Explain one advantage and one disadvantage for SnapCase of using flow production for this case. (6 marks)

Show the working

Six marks for one advantage and one disadvantage means 3 marks each: point [k], link to SnapCase [app], consequence [an]. Plan both before writing.
Find the facts to apply: 20 000 identical cases a week, steady; a $250 000 line; the line makes only one shape; the phone is replaced about every two years.
Advantage. Flow production gives a low cost per unit [k]. With a steady 20 000 identical cases sold each week [app], the cost of the line is spread over a very large number of cases, so SnapCase could charge a lower price than rivals and increase its sales [an].
Disadvantage. You could use the high set-up cost, but the stem has handed you something sharper: flow production is inflexible [k]. The line can only make cases for one phone, which is usually replaced every two years [app], so when a new model comes out demand for this case will fall and the line could stand idle, wasting the $250 000 investment [an].
Check that each half contains all three pieces and that the consequence is about SnapCase, not businesses in general.

Answer: Advantage: flow production gives a low cost per unit [k]; SnapCase sells a steady 20 000 identical cases a week [app], so the cost of the line is spread over many cases and it could lower its price below rivals' and increase sales [an]. Disadvantage: flow production is inflexible [k]; the line can only make cases for one phone, which is usually replaced every two years [app], so demand for the case will fall and the $250 000 line may stand idle, wasting the investment [an].

Example 3. Marigold Chocolates has 12 employees and uses job production to make personalised chocolates for weddings. A supermarket has offered to buy 5 000 boxes of one standard design every month for 2 years. The business has $20 000 of savings. A flow production line would cost $180 000. Its current kitchen equipment could make the boxes in batches alongside wedding orders. Consider batch production and flow production for the supermarket order. Which method should Marigold Chocolates use? Justify your answer. (8 marks)

Show the working

Eight marks: k2, app2, an2, eval2. Plan one developed point on each method, then a decision with a new reason.
Collect the application: 12 employees; wedding chocolates (job) continue; 5 000 identical boxes a month; only 2 years guaranteed; $20 000 savings; $180 000 line; kitchen can make batches alongside wedding orders.
Batch point. Batch production can use existing equipment and switch between products [k]. Marigold's current kitchen could make the 5 000 boxes in batches alongside its wedding orders [app], so it avoids a large investment and keeps its wedding income [an].
Flow point. Flow production has a very high set-up cost [k]. The line costs $180 000, but Marigold has only $20 000 of savings [app], so it would need to borrow about $160 000 and pay interest, which reduces profit [an].
Decide. Batch looks right. Now find a reason that weighs the points instead of repeating them. The strongest one is how long the demand lasts: the order is guaranteed for only 2 years, and a flow line needs long, steady demand to pay for itself.
Add a second evaluative thought that uses the stem differently — for example, batch lets Marigold find out whether the supermarket order is profitable before it commits to anything larger.

Answer: Batch production lets a business use the same equipment for different products [k]. Marigold's kitchen could make the 5 000 standard boxes in batches between its wedding orders [app], so it needs no large investment and keeps earning from personalised chocolates [an]. Flow production has a very high set-up cost [k]: the line costs $180 000 and Marigold has only $20 000 [app], so it would need to borrow around $160 000, and interest payments would reduce its profit [an]. I recommend batch production. The supermarket has guaranteed the order for only 2 years, which is not long enough to be confident of covering the cost of a line that can make only one design [eval]. Batch also lets Marigold find out whether the order is profitable before committing more money, and it could reconsider flow production if the contract is renewed [eval].

Where people go wrong

Mistake: Deciding between batch and flow by the quantity alone — 'small amount is batch, large amount is flow'.

Instead: Batch makes identical products in groups with a stop and change between groups; flow makes identical products continuously without stopping.

A batch can be very large. What defines it is the change between batches, which is also the source of its main disadvantage, the time lost resetting machines.

Mistake: Writing that flow production gives poor quality.

Instead: Flow production gives consistent, standardised quality; what it cannot provide is products tailored to individual customers.

Every product passes through identical stages, so products are the same as each other. 'Low quality' is not a valid disadvantage and wastes the space for one that is.

Mistake: Recommending a method using general reasons that could apply to any business.

Instead: Tie every reason to the stem: its demand figures, its finance, its product, how long orders last.

Application marks need a reference to the business in the question that makes sense for the point. A general answer can only reach the knowledge and analysis marks.

Mistake: Ending an 8-mark answer with 'it depends' and no decision, or with a decision that just repeats a point already made.

Instead: Choose a method, then give a new reason that weighs the points for this business.

Evaluation marks are for a justified decision. The justification should not repeat earlier points.

Mistake: Assuming a business can use only one method.

Instead: A business can use different methods for different products, such as batch for standard items and job for custom orders.

Many real businesses do this, and in a recommendation question a mixed answer is valid when the stem supports it and you justify it.

Check yourself

Define job, batch and flow production in one sentence each.
Answer
Job production: making a single product at a time to the requirements of one customer. Batch production: making a group of identical products together, then changing to a different batch. Flow production: making large numbers of identical products continuously, moving from one stage to the next along a production line.
Which method is each? (a) A car factory making 1 200 identical cars a day on an assembly line. (b) A portrait painter. (c) An ice-cream maker producing 800 litres of vanilla, cleaning the machines, then 600 litres of strawberry.
Answer
(a) Flow — identical products made continuously. (b) Job — each portrait is unique, for one customer. (c) Batch — identical products in groups, with a stop and change between them.
State two advantages of batch production compared with job production.
Answer
Lower cost per unit, because many identical items are made at once and materials can be bought in larger quantities; and faster output, so more products can be sold. (Also valid: the same equipment can be used for several products.)
A machine breaks down on a flow production line. Explain why this is more serious than a breakdown in batch production.
Answer
On a flow line each stage feeds the next, so one broken machine stops the whole line and nothing is produced, while employees are still paid. In batch production the batch using that machine is delayed, but work on other stages or batches can often continue.
Why can flow production reduce motivation, and what could that lead to?
Answer
Employees repeat one small task on identical products all day, which is boring. Demotivated employees may be absent more often, make more mistakes or leave, increasing costs.
A new business making handmade leather bags has $8 000 of savings and sells about 20 bags a month. Identify a suitable production method and justify it with two reasons from the information.
Answer
Job production (or small batches). Selling about 20 bags a month is too low a demand to need a production line, and $8 000 of savings could not pay for one. Handmade bags can also be sold at a high price, which covers the higher cost per unit of job production.
What is the difference between an analysis sentence and an evaluation sentence in a recommendation answer?
Answer
Analysis explains a consequence of one point for the business ('so it would have to borrow and pay interest'). Evaluation makes a decision and weighs points against each other to support it ('batch is better because the contract is too short to cover the cost of a line'), without repeating the analysis.

Exam questions

Try each part first. Open the mark scheme after you have written your answer.

Question 1. Oakridge Toys makes wooden toys and has 25 employees. It uses batch production to make 8 different toy designs in batches of 200. Its machines take 3 hours to reset and clean between batches. A large retailer wants to buy 60 000 of one toy train design every year for 3 years. A flow production line for the train would cost $400 000. Oakridge Toys has $150 000 of retained profit.

(a) Define 'batch production'. 2 marks

Mark scheme

pt2 Award 2 marks for clear understanding, e.g. making a group / quantity of identical products together, then changing production to a different group / batch (2). Award 1 mark for some understanding, e.g. making products in groups (1). Do not award examples on their own.

(b) Outline two disadvantages to Oakridge Toys of using batch production. 4 marks

Mark scheme

k1 First disadvantage identified, e.g. time lost / no output while machines are reset between batches; inventory of materials or finished batches must be stored; repetitive work may demotivate employees; higher cost per unit than flow production; batches need careful planning.
app1 Relevant application, e.g. machines take 3 hours to reset and clean; batches of 200; 8 different designs; 25 employees; wooden toys; 60 000 trains wanted by the retailer. The reference must make sense in relation to the point.
k1 Second, different disadvantage identified (as above). Do not credit mirror statements of the first point.
app1 Relevant application of the second disadvantage to Oakridge Toys (as above). Accept all valid responses.

(c) Consider batch production and flow production for making the toy trains for the retailer. Which method should Oakridge Toys use? Justify your answer. 8 marks

Mark scheme

k2 Identification of relevant points, up to 2 marks. Flow: low cost per unit / high output / consistent quality; very high set-up cost / inflexible / breakdown stops the line / boring work. Batch: flexible / can keep making other designs / uses existing machines / lower investment; time lost resetting / higher cost per unit.
app2 Relevant application, up to 2 marks, e.g. 60 000 trains a year; order lasts 3 years; line costs $400 000; only $150 000 retained profit (would need to borrow about $250 000); 8 designs; 3 hours to reset; batches of 200; 25 employees; wooden toys.
an2 Relevant development, up to 2 marks, e.g. low cost per train so profit on the retailer's order increases; borrowing increases interest costs and reduces profit; the line could only make one design so it may stand idle if the order ends; batch keeps other 7 designs in production so income is not dependent on one customer; frequent resets reduce output so the order may be hard to meet.
eval2 A justified decision about which method Oakridge Toys should use, up to 2 marks, not repeating earlier points. E.g. batch, because a 3-year order is too short to be sure of repaying the borrowing for a line that makes one design, and it could run larger batches of trains instead / flow, because 60 000 identical trains a year guaranteed for 3 years is the large, steady demand a line needs, and the lower cost per train could win further orders. Either decision can be credited if justified. Accept all valid responses.

Question 2. Seraphine Bridal makes wedding dresses. Each dress is designed with the customer, and one of its 6 skilled dressmakers takes about 3 weeks to make it. Dresses sell for between $2 500 and $6 000.

(a) Identify two disadvantages of flow production. 2 marks

Mark scheme

pt1 First valid disadvantage, e.g. very high set-up cost; inflexible / difficult to change product; a breakdown stops the whole line; repetitive work demotivates employees; needs high and steady demand; large inventories of materials or products.
pt1 Second, different valid disadvantage (as above). Only award the first two answers given. Accept all valid responses.

(b) Explain two advantages to Seraphine Bridal of using job production. 6 marks

Mark scheme

k1 First advantage identified, e.g. product meets the customer's exact requirements; high quality / unique product; can charge a high price; varied, skilled work motivates employees; flexible.
app1 Relevant application, e.g. each dress designed with the customer; weddings; 6 skilled dressmakers; 3 weeks per dress; $2 500 to $6 000 price. The reference must make sense in relation to the point.
an1 Relevant development, e.g. customers are willing to pay a high price, which covers the high labour cost of each dress / satisfied customers recommend the business, increasing sales / motivated dressmakers are less likely to leave, so skills are kept.
k1 Second, different advantage identified (as above).
app1 Relevant application of the second advantage to Seraphine Bridal (as above).
an1 Relevant development of the second advantage (as above). Accept all valid responses.

Question 3. Kestrel Bikes Ltd makes racing bicycles using job production. Each bike is built to one customer's body measurements by one of its 48 skilled employees, takes 5 days to make and sells for $4 000. Kestrel now plans to launch an electric city bike. Market research suggests it could sell 9 000 a year at $1 500 each, but a rival launched a cheaper electric city bike last year. Customers want a choice of 4 frame sizes and 5 colours. Kestrel has $350 000 of retained profit.

(a) Explain two advantages and two disadvantages to Kestrel Bikes of using job production for its racing bicycles. 8 marks

Mark scheme

k1 First advantage identified, e.g. the product meets each customer's exact needs / high quality / can charge a high price / varied, skilled work motivates employees / flexible. Award 1 mark for each advantage (max. 2 advantages).
app1 1 mark for an explanation of the first advantage applied to Kestrel Bikes, e.g. each racing bike is built to the customer's body measurements, so it fits the rider exactly and customers are willing to pay $4 000.
k1 Second, different advantage identified (as above).
app1 1 mark for an explanation of the second advantage applied to Kestrel Bikes, e.g. building a whole bike uses the skills of its 48 skilled employees, so the varied work keeps them motivated and less likely to leave.
k1 First disadvantage identified, e.g. slow / low output / high labour cost per unit / needs highly skilled employees / materials may have to be bought for each order. Award 1 mark for each disadvantage (max. 2 disadvantages).
app1 1 mark for an explanation of the first disadvantage applied to Kestrel Bikes, e.g. each bike takes 5 days to make, so output is low and customers may have to wait weeks when many orders arrive at once.
k1 Second, different disadvantage identified (as above). Do not credit mirror statements of an advantage.
app1 1 mark for an explanation of the second disadvantage applied to Kestrel Bikes, e.g. 48 skilled employees each spend 5 days on one bike, so labour cost per bike is high and the $4 000 price limits sales to riders with high incomes. Accept all valid responses.

(b) Consider the following three methods of production Kestrel Bikes could use to make its electric city bike. Which method should Kestrel Bikes choose? Justify your answer. Job production: each bike built to order by one skilled employee; average cost $1 300 a bike; up to 600 bikes a year. Batch production: batches of 100 bikes of one size and colour; average cost $1 000 a bike; up to 4 000 bikes a year; needs new equipment costing $200 000. Flow production: one design made continuously; average cost $750 a bike; up to 12 000 bikes a year; the line costs $900 000, and the bank would lend the rest at 8% interest a year. 12 marks

Mark scheme

Level 3 (9,12 marks): Excellent knowledge and understanding of relevant business concepts using appropriate terminology in context. Detailed discussion of two or more methods. Well-justified recommendation. Candidates discussing all three methods in detail, in context and with a well-justified recommendation including why the alternative methods were rejected should be rewarded with the top marks in the band.
Level 2 (5,8 marks): Good knowledge and understanding of relevant business concepts using appropriate terminology in context. Detailed discussion of at least one method. Judgement with some justification / some evaluation of choice made. Candidates discussing two or more methods in detail and in context should be rewarded with the top marks in the band.
Level 1 (1,4 marks): Limited knowledge and understanding of relevant business concepts in context. Limited ability to discuss the methods with little/no explanation. Simple judgement with limited justification / limited evaluation of choice made. Candidates outlining all three methods in context should be rewarded with the top marks in the band.

Indicative content:

Job production, advantage: every bike can be any of the 4 frame sizes and 5 colours the customer wants, using skills Kestrel already has and no new equipment, so none of the $350 000 retained profit is spent.
Job production, disadvantage: only 600 bikes a year, one-fifteenth of the forecast 9 000, and just $200 left from each $1 500 after the $1 300 average cost, so it could not meet demand or compete with the rival's cheaper bike.
Batch production, advantage: batches of different sizes and colours can offer all 20 versions customers want, $500 is left from each $1 500 sale, and the $200 000 equipment is paid for from retained profit, leaving $150 000, so no loan or interest is needed.
Batch production, disadvantage: 4 000 bikes a year leaves 5 000 of the forecast demand unmet, so those customers may buy the rival's bike; production stops while equipment is changed between batches, and bikes of each size and colour must be stored as inventory until sold.
Flow production, advantage: the lowest average cost, $750 a bike, leaves $750 from each $1 500 sale, so Kestrel could cut its price to compete with the rival and still make a profit, and up to 12 000 bikes a year covers the 9 000 forecast.
Flow production, disadvantage: Kestrel must borrow $550 000, costing $44 000 interest a year; one design cannot offer the 4 sizes and 5 colours customers want; and 9 000 sales is only a forecast, so if the rival takes customers the expensive line may stand idle.
A recommendation could be, e.g.: batch production, because it gives customers the 20 size and colour choices they want and is paid for from retained profit; flow is rejected because a $550 000 loan for one design is risky while demand is only forecast and a rival is already selling, and job because 600 bikes a year at $1 300 each can neither meet demand nor match a cheaper rival. Any method can be recommended if it is well justified.

How this is examined

Choosing between job, batch and flow production for a product in a case study, and saying why the other two lose.: A 12-mark Paper 2 case-study part (b), in the specimen's wording: 'Consider the following three methods … [business] could use… Which method should [business] choose? Justify your answer.' The specimen marks these by levels of response (Level 3 9–12, Level 2 5–8, Level 1 1–4), not by adding up points. For each method, an advantage and a disadvantage, each tied to a case fact — forecast demand against the output each method allows, the choices customers want, the cost per unit, the finance available — and followed through to sales, costs or profit. Outlining all three methods with a case fact but no consequence tops out at Level 1 (4). Detailed discussion of at least one method plus a judgement with some justification is Level 2; two or more methods discussed in detail and in context reach the top of Level 2 (8). Level 3 needs detailed discussion of two or more methods and a well-justified recommendation, and the top of Level 3 goes to an answer that discusses all three in detail and in context, then says why each of the other two was rejected for this business — e.g. 'not flow, because a large loan for a line that makes one design is risky when demand is only a forecast'.
Recommending the best production method for the business in the question.: The long final part of a data-response question, ending 'Justify your answer', with demand figures, finance available and the cost of a production line in the stem. One developed point for each method compared, each with a fact from the stem — 'a flow line costs $300 000 but it has only $90 000 [app], so it must borrow and pay interest [an]'. Then a clear choice, and a new reason that weighs the points, such as how long demand will last or which factor matters most for this business.
Explaining the advantages and disadvantages of one method for a named business.: A 6-mark Explain — one advantage and one disadvantage, or two advantages — for a business whose product and demand are described. Three pieces per point: 'low cost per unit [k], 20 000 identical cases sold each week [app], so it can lower its price and increase sales [an]'. The key disadvantages: job — high cost per unit and slow; batch — time lost resetting between batches and inventory to store; flow — very high set-up cost, inflexible, one breakdown stops the line, boring work.
Outlining what goes wrong with a method the business already uses.: A 4-mark Outline of two disadvantages (or advantages) for the business in the stem. Point plus link, twice, and no need for analysis: 'machines must be reset between batches [k], which takes 3 hours each time [app]'.
Saying precisely what job, batch and flow production are.: A 2-mark Define, or an Identify of two features of one method. Batch: 'a group of identical products made together before production changes to a different batch'. Flow: 'identical products made continuously, moving from one stage to the next'. Job: 'a single product made to one customer's requirements'. An example alone, like 'a wedding cake', does not define the term.

Words to know

Job production: Making a single product at a time to the particular requirements of one customer.
Batch production: Making a group of identical products together, with production then changing to a different batch.
Flow production: Making large numbers of identical products continuously, each moving from one stage to the next along a production line. Also called mass production.
Cost per unit: The total cost of production divided by the number of units made.
Production line: A sequence of stages, often automated, through which products move one after another without stopping.
Standardised product: A product made identical to every other one of its kind.

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