EDEXCEL GCSE BUSINESS · PAPER 2
Exam Practice: Managing Quality
Managing quality · Making operational decisions · Lesson 3 of 4 · 12 marks · 20 minutes
Name Date
Answer all questions. Use the context of the business in the question where one is given.
Question 1 DEFINE [1 mark]
Define the term 'quality control'.
Question 2 OUTLINE [2 marks]
Outline one cost to a business of poor quality.
Question 3 EXPLAIN [3 marks]
Explain one benefit to a business of using quality assurance rather than quality control.
Question 4 ANALYSE [6 marks]
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SOURCE SmartHome Ltd makes wireless doorbells. It uses quality control, with inspectors checking one in every 50 doorbells at the end of the production line. Last year 4% of doorbells were returned faulty, and its online reviews have fallen from 4.5 to 3.2 stars. |
Analyse the impact of poor quality on SmartHome Ltd.
Answers
Check your answer only once you have written one.
Question 1 [1 mark]
Checking finished products for faults, usually at the end of the production process.
▸ Inspecting finished products / checking for faults at the end 1 mark
Question 2 [2 marks]
The business may have to recall products (1), which is very expensive and damages customers' trust in the brand (1).
▸ A cost identified, e.g. waste / returns / recalls / reputation 1 mark
▸ Developed 1 mark
Question 3 [3 marks]
It reduces waste (1). Faults are prevented or caught at each stage, rather than found only once the product is finished (1). This means fewer materials and less time are wasted on faulty products, lowering the business's costs (1).
▸ A benefit identified, e.g. less waste / lower costs / staff responsibility / fewer faults reach customers 1 mark
▸ First linked point of explanation 1 mark
▸ Second linked point of explanation 1 mark
Question 4 [6 marks]
A 4% return rate means SmartHome is refunding or replacing many doorbells, which increases its costs, as each faulty doorbell is paid for twice - once to make and again to replace. Because inspectors only check one in every 50 doorbells, faulty products are reaching customers. The fall in online reviews from 4.5 to 3.2 stars will also affect sales. Customers read reviews before buying, so a low rating will push them towards competitors. This means SmartHome's sales and revenue are likely to fall at the same time as its costs rise, reducing its profit.
▸ AO2 (Application, 3 marks): uses the context - 1 in 50 checks, 4% returns, 4.5 to 3.2 stars Level 1-3
▸ AO3a (Analysis, 3 marks): chains of reasoning about costs, reputation and sales Level 1-3