Igcse Business
Igcse Business
Igcse Business
1 Earnshaw is a company that buys raw materials and components in bulk. It uses them to
For
manufacture furniture using flow production methods. Productivity in the factory is high. Examiner’s
Currently Earnshaw has high costs of holding stock. The Managing Director wants to Use
introduce lean production methods.
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Advantage 2: ....................................................................................................................
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3
(d) Identify and explain three benefits to Earnshaw of using lean production methods.
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Examiner’s
Benefit 1: .......................................................................................................................... Use
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Benefit 2: ..........................................................................................................................
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Benefit 3: ..........................................................................................................................
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(e) If Earnshaw is to grow in the future then its unit production costs must fall.
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