Fig. 1 shows a product to be launched with... | Design & Technology: Product Design 9252 | Paper 1 Mock 01 | Technical, designing and making principles

Question 1 Report

Fig. 1 shows a product to be launched with uncertain demand.

Explain why a company might begin with batch production and only later move to mass production. [4]

Answer

Answer Details

When demand is uncertain, batch production reduces the financial risk at launch.

Batch production requires much less investment in dedicated tooling, so less money is at risk before the company knows whether customers will buy the product. [1]
The design can be changed between batches in response to customer feedback, without having to scrap expensive mass-production tooling. [1]
If demand becomes high, the company can then justify investing in mass-production tooling because its cost will be spread across a large number of products. [1]
The resulting faster, repeatable process lowers unit cost, allowing either a lower selling price or a higher profit margin. [1]

The sequence is therefore sensible: test the market flexibly first, then invest heavily only once demand is proven.

Fig. 1 shows a product to be launched with uncertain demand. Explain why a company might begin with batch production and only later move to mass production....