1. SA3 CUSTOMER NEEDS MARK SCHEME
1.
a) A (1)
b) Any reasonable benefit identified (1), such as:
Lower cost per unit
More competitive
Ability to lower price
Higher profit margin
c) Explanation of one method (3) must be linked statements, such as:
Training
Machinery
CAD, CAM, CIM
Kaizen
Team-working
JIT
Motivational techniques
d) Description of methods of reducing costs (3), no need to have linked statements, could be three
different methods of cutting costs for full marks or explanation of one or more cost reductions:
Better purchasing from suppliers
Lower overheads e.g. marketing
Relocating production
Better design
2.
a)

2. b)
c)

3. 3.
The aim here is for candidates to make a judgement as to whether quality control or quality
assuranceis the best way for BMW to ensure the quality of the new Mini. There is no right
answer and the candidate can argue that either method is best, depending on the
circumstances. Candidates might consider the following possible ideas as part of their
answer:
Quality control:
Checks at the end that the car is not faulty
Highly trained inspectors can be used
Quality control can be used to see company wide problems
Cost of inspection
Workers do not need to take responsibility for their work: more errors?
Cars that fail quality control can’t be sold (or need to be modified before they can)
Quality assurance:
Product checked throughout the production process
Less wastage costs (i.e. cars that don’t pass the final tests)
Motivational benefits of being in charge of quality
Need high quality / trained workers
Some workers may not like the responsibility and be resistant
Can’t spot company-wide problems as easily
To be evaluative and support the judgement made, the candidate might suggest that most effective
method depends on the workforce BMW has (i.e. is it skilled enough or will they be motivated) or
the relative cost of training factory workers compared to hiring an inspector. Some may suggest a
combination with a culture of quality instilled but with some checking at the end by those at the
final stages of production.
Level Mark Descriptor
No mark 0 No rewardable material
L1 1-2 One reason given (2 marks if explained)
L2 3-4 Two reasons given (4 marks if explained well)
L3 5-6 Two reasons given with some balance (5)
and with a conclusion in context of BMW (6)

4. 4a) Description of customer service (2) applied to Parcelforce (1). To gain full marks the answer
must be applied to Parcelforce. Answers could include:
Meeting and exceeding customer expectations
Better training of delivery staff
Dealing with complaints about deliveries
Listening to customers e.g. environmental concern with carbon neutral parcels to meet
customer needs
Reliability of delivery / on-time service
Clear delivery slips / receipts
b) One mark for each disadvantage identified (1 + 1), 2 marks for explaining the effect on
Parcelforce (3 + 3) which could include application to Parcelforce (1 + 1):
Disadvantages could include:
Cost of dealing with customer service problems: some problems of customer service will cost
the business money i.e. refunds for cold food or the need for further training of staff increasing
future costs.
Lower sales & profits: customers will switch to businesses who provide a better service
Lower repeat custom: customers will not want to come back to the business if their customer
needs were not met, reducing future sales & profits.
Damage to reputation and brand: if customers have been hit with poor customer service then
they may not trust the brand as much and the reputation (possibly via word of mouth) will be
damaged. This hits long-term sales and profits.
Survival: if businesses see their sales and profits damaged in the long-term then this could
threaten the survival of the business.
c)1 mark for the identification of a consumerprotection law and 1 mark for some kindof elaboration
applied to Parcelforce. Possible answers include:
• Trade Descriptions Act • Sale of Goods Act.
Candidates may suggest other consumer protection laws not on the specification. These should be
rewarded appropriately.
d) One mark for identifying an effect, one mark for a linked explanation and final mark for
application to Parcelforce. Effect could include:
Cost of understanding the law e.g. lawyer costs, time spent researching laws
Cost of compliancee.g. cost of refunds, cost of ensuring quality of deliveries
Improved reputation / profit / revenue if met successfully or laws exceeded could boost brand
image

5. 5. B & R Engineering
a)
The range of variables which contribute to the success of a design: they are function, cost and
appearance (1)
An example of a design mix element: cost, function, appearance
b)
The aim here is for candidates to consider the benefits of assuring quality applied to B & R Ltd. The
question asks candidates to assess these benefits so the candidate must develop some evidence of
balance in the answer. This could take the form of disadvantages / costs associated with quality
assurance, which benefit is most important or use of the ‘it depends ‘rule.
Benefits of quality assurance:
Ability to sell at higher price
Brand image, reputational & marketing benefits
Higher sales revenue and profit if customer needs met / exceeded
Lower costs of wastage
Possible morale benefits
Cost associated with ensuring quality:
Time to establish a culture of quality
Cost implications e.g. need for worker training, better machinery possibly
Morale impacts, will all want to get involved?
It depends on:
Success of the quality assurance scheme
e.g. commitment , skill & morale of workers
How well B & R Ltd do compared to compared to competitors
Level Mark Descriptor
No mark 0 No rewardable material
L1 1-2 One benefit with weak developmentor two identified (2)
L2 3-5 One or more benefits with onewell developed (3)
With a simple judgement but often assumes quality assurance is beneficial (4)
With some evidence of balance (5)
L3 6-8 Two reasons well explained with balance and in context
(6-8 depending on quality of argument)

6. c)Benefits of R&D, any of the following applied to B & R Ltd:
Evaluation or Balance:
Evaluation or balance can be achieved by considering downsides of R&D, comparing R&D to other
factors (e.g. JIT), the significance of the advantages (possibly relative to one another), the use of the
it depends rule (e.g. depends on competition, state of the economy as mentioned in the extract)and
concluding on the importance of R&D to B&R Ltd with justification.
Downsides to R&D:
Cost& time of research, prototypes and development if on a continual basis
R & D is not always successful
R & D a very long-term strategy, can take several years to develop products fully
Comparing R&D with other factors important to B & R Ltd which could be considered, e.g. Quality
assurance, Just-in-Time production
Conclusions could include:
In a highly competitive market R&D key in order to out compete rivals with better products
meeting component suppliers’ needs.
In a highly competitive market R&D needs to be combined with measures to reduce cost (JIT) to
ensure B&R compete on price as well as quality. This is especially true in the current economic
climate.
JIT much more important than R&D as with low budgets during the economic crisis price
becomes an essential form of competitive advantage rather than quality.
.
Level Mark Descriptor
No mark 0 No rewardable material
L1 1-4 One benefit explained or a few bullet pointed or
a simple judgement given (with justification at the top of this level)
L2 5-7 Two or more benefits wellexplained (5)
With a simple judgement / conclusion (6)
With some undeveloped balance / conclusion (7)
L3 8 -10 Two or more benefits explained with good balance & a conclusion,(8) which is
drawn from the analysis (9) and is in context, providing a coherent argument
(10)