A UK manufacturer produces standard and made-to-measure windows. It must select either multi-skilled teams or a production line for all window production next year. It cannot use different methods for the two types of window.
Table 1 shows results from separate 20-working-day trials using the same 25 workers. Each trial reproduced the manufacturer's normal output mix of 55% standard windows and 45% made-to-measure windows. Each trial included three scheduled changes of window design per week, making 12 design changes in total.
The output and total assembly cost figures include the effects of all 12 design changes and all stoppages shown. Total assembly cost also includes the labour and materials used for windows that were later scrapped. No new workers were trained during either trial.
| Measure | Multi-skilled teams | Production line |
|---|---|---|
| Windows assembled | 2,500 | 3,500 |
| Windows failing final inspection and scrapped | 2% | 6% |
| Total assembly cost | £425,000 | £448,000 |
| Training time for a new worker | 12 days | 4 days |
| Production stopped because of worker absence or machinery failure | 6 hours | 30 hours |
| Time needed for each change of window design | 1.5 hours | 5 hours |
With reference to Table 1, assess whether a production line would be the better choice for all of the manufacturer's window production.
84 exam-style questions on AQA GCSE Economics 1.2 Resource allocation, covering 1.2.1a Markets, 1.2.1b Allocation of resources, 1.2.1c Factor and product markets, 1.2.2a Primary, secondary and tertiary sectors, 1.2.2b Goods and services, 1.2.3a Specialisation and the division of labour, 1.2.3b How and why producers specialise, and 1.2.3c Costs and benefits of the division of labour. Each one has a worked solution and a mark scheme showing where the marks go.