CAIE A-Level Business 4.1.4 Operations methods

Practise choosing between job, batch, flow and mass customisation methods, using case evidence about output, cost and flexibility.

[Maximum number: 3]

Bear Bears (BB)

BB is a business partnership owned by Sade and Chika. BB produces personalised teddy bears (toys) for children.

The toys are made using mass customisation targeted at specific market segments. Each toy has the same shape and size but it is customised with names and words provided by the customer. These are hand-stitched onto the toy and the employees are paid using piece rate. Customers receive their products within a week of ordering.

Each toy is sold for $ 50 and has a unit contribution of $ 6. Last month BB sold 4000 units with a margin of safety of 120 units.

BB currently holds a large amount of inventory in a temperature-controlled warehouse (see Table 2.1).

Table 2.1 BB's current inventory

Sade thinks that BB should adopt a just in time (JIT) approach to inventory management. However, Chika is concerned about the possible impact on BB.

The stitching department is managed by Chika. She has recently received a complaint from David who is the only male employee in the stitching department (see Fig. 2.1).

I feel that I am being discriminated against because I am a man. There are no washroom facilities for me on the ground floor but there are for the women. I have to go up two floors for a washroom which takes me a lot of time.
I am given all the tasks which require heavy lifting. I am often asked to fix problems with other people's stitching machines, and this slows my production. I earn less money than anyone else in the stitching department.

After some further investigation, Chika believes there needs to be increased equality in the stitching department.

Explain the term mass customisation (line 3).

Explain the term 'mass customisation'.

Figure for Answer to Question 4.1.4—Operations methods question 1 — CAIE A-Level Business AS

Indicative content

AO1 Knowledge and understanding

Knowledge of mass customisation □ may include:

- A production process where some elements can be changed to meet customer needs.

No further marks can be gained without knowledge and understanding

AO2 Application

Limited application ${ }^{\Delta \text { Pe }}$ applies knowledge of customisation to mass production, including:

- A process to customise whilst producing large amounts of similar products/flow production.

OR

- Example or some other way of showing good understanding.

Developed application ${ }^{\mathrm{s} \mathrm{Fe}}+{ }^{\mathrm{sFe}}$ applies knowledge of customisation to mass production, including:

- A process to customise whilst producing large amounts of similar products/flow production.

AND

- Example or some other way of showing good understanding.

Accept all valid responses.

2(a)(ii)

Mark Rationale

3

An answer which starts with the knowledge and then

applies it to the mass element with an example.

3

APP cannot be awarded without K, but once the K has been awarded you can go back and reward the APP. Production line/assembly line/flow production is all fine for APP.

Products can be changed slightly □ such as a car

2

Knowledge and an example. with different features ${ }^{\mathrm{APFB}}$ .

Products which can be adapted to meet the differing

1

Simple knowledge of the direct element. needs of customers $\kappa$ .

Large scale production with capital intensive

0

Although there is some attempt at application, these operations ${ }^{\mathrm{Tv}}$ . For example, a T-Shirt with different marks cannot be awarded without knowledge. designs ${ }^{\neg \mathrm{TV}}$ .

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4.1.4—Operations methods question 1