IB Business Management HL 5.2 Operations Methods Topic Practice

Benefits of using cell production could include:
- Employees see the product and participate in the production process from beginning till the end thereby creating a sense of ownership, interest, creativity and motivation. That could allow LR to create new innovative farm/dairy products.
- Creates empowerment for LR workers, hence increasing motivation further in LR. Low staff turnover can decrease costs for LR hence more money will be available for the much needed fund for R\&D in LR.
- Improved communication, avoiding confusion arising from misunderstood or non-received messages.
- Workers become multi-skilled and more adaptable to the future needs of R L.

Accept any other relevant benefit with a description.
While the points above are rather generic, it is expected that candidates will make some reference to LR.

Mark as 2+2.
Award [1 mark] for each relevant and correct benefit identified and [1 mark] for describing the benefit in context up to a maximum of [2 marks].

The benefits of a flow production method to SF could include:
- It is likely to lead to SF meeting the growing demand for its meals quickly and in the process reducing the unit costs of production.
- This may allow SF to reduce the price of its meals as they use cost plus pricing.
- The benefits of flow production imply that S F will be true to its mission statement.
- Enables SF to control quality more effectively and avoid the mis-labelling issues.

The costs allude to an increase in complexity of the business and the stimulus indicates that some problems are emerging. Hence some costs could include:
- Charles' management style will also come under increased pressure as he does not have experience of transitioning to and using this new technology.
- Communication and coordination issues may arise leading to higher unit costs effectively a diseconomy of scale.
- Investment in flow production involves high capital costs resulting in possible borrowing and higher gearing.
- Pausing production e.g. for changing recipes, can be expensive.
- If flow production creates too many additional meals even with growing demand, S F could be left with meals it cannot sell.

Award [1] for a benefit of flow production with an additional [1] for application to S F.

Mark as [2+2]

Cell production in the construction industry splits the construction of a building into cells or modules. Typically this type of construction method can be done if it dovetails with the building design, which fits well with the proposed hospital in Loyka/Beral.

Rather than dividing the workforce into areas of specialization (masons, carpenters, electricians, plumbers, etc.), the workforce is split into teams, each team constructing a cell or module of the building. Though individual team members may develop some limited degree of specialization within teams, all members can perform all functions within the process.

In general, cell production fosters teamwork, as a whole team is responsible for a cell. This approach also fosters a commitment to the team (and therefore to the project) by individual team members as well as foster cohesion among team members.

From a motivational perspective, cell production can be rewarding as workers learn a variety of skills (job enrichment) and develop a broad understanding of the entire process. If team spirit does develop (as it typically does),

Though there are some risks to quality because workers in cell production have less specialized knowledge than in the traditional organization of a construction project, pride can develop for the whole project, strengthening a commitment to quality.

For the hospital, cell production makes considerable sense:
- Building the hospital is not the primary mission of the UWP troops in Loyka, and Colonel Michael Donovan can expect that soldiers will regularly be absent from the construction project to support the primary mission.
- With cell production, the pride it fosters, and the broad-based skill set workers develop through it, keeping the construction process going during periods of heightened absenteeism from the construction site will be easier. In a typical construction process, the absence of certain specialized workers could bring the entire project to a halt.
- The design of the building (into four wings) lends itself to construction in four different teams;
a competitive spirit should develop.
- If one team is diverted to the primary mission (peacekeeping), the entire project does not have to come to a halt.
- Though the lack of worker specialization associated with the cell production means the facility might have a lesser "finish" compared to hospitals in industrialized countries, the top priority is having a functioning hospital, a much-needed facility in the war-torn country of Loyka.
- If, for whatever reason (increased violence or withdrawal of the UWP Mission from Loyka) several of the cells were completed and not the entire project, at least a portion of the project would be complete and could serve some purpose. Other portions could, conceivably, be completed later by the Loykese.

Given the constraints that the UWP Mission faces, the decision to shift to a cell production approach makes sense. It produces a manageable plan for constructing the hospital. The time to complete it is not excessive. Though the building that is produced may have a lesser "finish" because of less worker specialization, at least the hospital will be built. The workforce will have maximum flexibility. All workers on all teams will have some degree of skill and knowledge about the process.

Accept any other relevant analysis.

Marks should be allocated according to the markbands on page 5.