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Funny-Chur manufactures and installs seating for large sporting stadiums throughout Australia - VCE - SSCE Business Management - Question 1 - 2023 - Paper 1
Question 1
Funny-Chur manufactures and installs seating for large sporting stadiums throughout Australia. They produce their seats using locally sourced inputs and materials. ... show full transcript
Worked Solution & Example Answer:Funny-Chur manufactures and installs seating for large sporting stadiums throughout Australia - VCE - SSCE Business Management - Question 1 - 2023 - Paper 1
Step 1
Define corporate social responsibility.
Answer
Corporate social responsibility (CSR) refers to a business model in which a company takes on a duty to act beyond its legal obligations. This includes considering the impact of its operations on stakeholders, the environment, and the community. For Funny-Chur, this means using locally sourced materials not only to comply with regulations but also to support the local economy and demonstrate environmental responsibility.
Step 2
In relation to lean management, explain how two of the following could be used to reduce waste at Funny-Chur: pull.
Answer
The 'pull' strategy minimizes waste by ensuring that production is directly based on customer demand rather than forecasts. By implementing a pull system, Funny-Chur can produce seating only when there is a confirmed order, reducing excess inventory and associated storage costs. This leads to a more efficient use of resources and decreases the possibility of overproduction.
Step 3
In relation to lean management, explain how two of the following could be used to reduce waste at Funny-Chur: zero defects.
Answer
Adopting a zero defects approach means that Funny-Chur strives for perfection in manufacturing, aiming to eliminate all defective products. This proactive strategy not only enhances customer satisfaction by ensuring high-quality seating but also reduces waste associated with rework and material disposal. By investing in employee training and quality control mechanisms, the company can significantly minimize errors in the production process.