43 Do you think this business should change to flow production? Justify your answer. [6]

[BASEL Moderator]

Rafiq is the Operations manager at a small factory. The business makes a range of soft drinks using batch production. Last year Rafiq successfully introduced just-in-time inventory control, based on an idea from one of the 40 employees. As the business is planning to expand, Rafiq thinks it would be a good idea to change to flow production.

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43 Do you think this business should change to flow production? Justify your answer. [6]

Possible KN Points:
• Depends on level of demand/size of market
• Economies of scale
• Workers might become demotivated
• Cost of investment
• Inflexible
• Workers may fear redundancy