Item A: LittleJuniper produces children's wooden toys. Defects are currently found by inspecting a sample of finished toys. Returns have risen from 3% to 9%, and each return costs £18 to replace. Training every production employee in quality assurance would cost £42,000.
State the quality method currently used by LittleJuniper.
Outline one benefit to LittleJuniper of using quality assurance.
LittleJuniper is considering two quality approaches:
Option 1: Train every production employee in quality assurance
Option 2: Continue quality control and inspect a larger sample of finished toys
Justify which one of these two quality approaches LittleJuniper should choose.
38 exam-style questions on Edexcel GCSE Business 2.3 Making operational decisions, covering 2.3.1a The purpose of business operations, 2.3.1b Production processes, 2.3.1c Impacts of technology on production, 2.3.2a Managing stock: bar gate stock graphs, 2.3.2b Managing stock: just in time (JIT), 2.3.2c Relationships with suppliers, 2.3.2d Impact of logistics and supply decisions, 2.3.3a Quality control and quality assurance, 2.3.3b Quality, costs and competitive advantage, 2.3.4a The sales process, and 2.3.4b The importance of good customer service. Each one has a worked solution and a mark scheme showing where the marks go.