QuestionQuestionConceptConceptDocumentDocument

4. Operations management

Start with Concept to understand a topic, then use Question Bank to check what you know.

6 topics · 9 learning objectives

Your progress

Sign in to see your mastery and mistakes.

  1. 4.1. Production of goods and services

    1. 4.1.1Production processes

      • calculate labour productivity • why efficiency is important for a business • how to increase efficiency, e.g. increasing automation and technology, improving labour skills • concept of lean production and how to achieve it: just-in-time (JIT) inventory control and Kaizen • advantages and disadvantages of lean production methods • why businesses hold inventory • factors affecting how much inventory businesses hold

    2. 4.1.2The main methods of production

      • job, batch and flow production • advantages and disadvantages of job, batch and flow production • recommend and justify an appropriate production method for a given situation

  2. 4.2. Technology and production of goods and services

    1. • how technology is changing production methods through automation and mechanisation, e.g. Computer-Aided Manufacture (CAM) and 3D Printing • how technology is improving productivity in the service sector, e.g. contactless payments • advantages and disadvantages of changes in technology for businesses and employees

  3. 4.3. Sustainable production of goods and services

    1. • how businesses can be more sustainable: using renewable energy, using fewer resources / less waste, reusing, recycling, developing environmentally friendly products, using environmentally friendly packaging • advantages and disadvantages of businesses becoming more sustainable

  4. 4.4. Costs, scale of production and break-even analysis

    1. • classify and calculate costs using examples, e.g. fixed, variable, average and total • use cost data to help make simple decisions, e.g. which product to produce, whether to continue or stop production, what price to set, help choose suppliers

    2. • concept of economies of scale: purchasing, marketing, financial, managerial, technical • concept of diseconomies of scale: poor communication, lack of commitment or loyalty from employees, weak coordination, lack of control

    3. • concept of break-even • complete or amend a simple break-even chart • interpret a break-even chart • calculate break-even output • define, calculate and interpret the margin of safety • use break-even analysis to help make decisions: effect of changes in price, changes in fixed costs, changes in variable cost per unit • limitations of break-even analysis

  5. 4.5. Quality of goods and services

    1. • what quality means and why it is important for businesses • concept of quality control • concept of quality assurance • advantages and disadvantages of quality control and quality assurance • recommend and justify whether to use quality control or quality assurance in a given situation

  6. 4.6. Location decisions

    1. • factors which influence the location decisions of a manufacturing business • factors which influence the location decisions of a service business • factors that a business could consider when deciding which country to locate its operations in • recommend and justify an appropriate location for a business in a given situation