5 - Business operations
- Syllabus
- 2026
- Section
- 5
- Level
- —
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Topic 5.1
5.1 Economies and diseconomies of scale
Objectives in this topic
5.1.1 Economies of scale
Economies of scale:
- internal (falling average total costs as output increases)
- external (falling average total costs due to external factors).
5.1.2 Diseconomies of scale
Diseconomies of scale:
- limits of growth.
Topic 5.2
5.2 Production
Objectives in this topic
5.2.1 Production processes
Production processes:
- different types:
- job
- batch
- flow
- labour and capital intensive production
- the impact of different types of production
- calculation of productivity and the impact of productivity improvements.
5.2.2 Principles of lean production
Principles of lean production:
- just-in-time (JIT)
- Kaizen
- the importance of using resources effectively.
5.2.3 Impact of technology in production
Impact of technology in production:
- use of robotics
- balancing cost, productivity, quality and flexibility.
Topic 5.3
5.3 Factors of production
Objectives in this topic
5.3.1 Enterprise, capital, land and labour
Changing relationships between enterprise, capital, land, and labour:
- difference between capital-intensive and labour-intensive activities.
Topic 5.4
5.4 Quality
Objectives in this topic
5.4.1 Quality and competitive advantage
The concept of quality and its importance in:
- the production of goods and the provision of services:
- quality control
- total quality management (TQM)
- allowing a business to gain a competitive advantage.