Question 1
13 marksText 2 — Grimsett Cycles Ltd
Grimsett Cycles Ltd builds bicycles in a workshop in Sheffield. It employs 18 skilled frame builders. At present every bicycle is made to order: the customer chooses the frame size, the paint colour and the components, and one builder completes the whole bicycle before starting the next one.
Orders have risen every year since the business opened, and some customers now wait eleven weeks for their bicycle. The owner, Agnes Pilling, is considering introducing a standard range of three models — the Fell, the Moor and the Trail — which would be made in batches of 50. New machinery would cut and weld the frames for each batch. Custom bicycles would still be built to order for customers who want them.
Agnes is concerned that the average cost of building each bicycle has risen every year.
Table 1 Bicycles produced by Grimsett Cycles Ltd and average cost per bicycle, 2022–2025
| Year | Bicycles produced | Average cost per bicycle |
|---|---|---|
| 2022 | 640 | £410 |
| 2023 | 712 | £425 |
| 2024 | 788 | £446 |
| 2025 | 864 | £472 |
Identify two characteristics of job production.
Using Table 1, calculate the percentage increase in the number of bicycles produced by Grimsett Cycles Ltd between 2022 and 2025.
Answer: ________ %
Analyse one benefit to Grimsett Cycles Ltd of making its standard range in batches.
Analyse two disadvantages to Grimsett Cycles Ltd of continuing to use job production for all of its bicycles.
Disadvantage 1:
Disadvantage 2: