Business Studies
Operations management — Topic 4
- 1.
A tailor makes one wedding dress at a time to a customer's exact specification. This production method is: A Flow production B Batch production C Job production D Mass production
[1 mark] · no calculatorMarking points
- Selects C: job production, making a single, unique product to order.
Examiner tip: Job production suits unique, customised items; batch groups identical items together; flow production runs a continuous standardised line.
- 2.
Explain one advantage and one disadvantage of flow production for a business making thousands of identical bottles of soft drink per hour.
[2 marks] · no calculatorMarking points
- States an advantage such as a low cost per unit due to automation and continuous output at high volume.
- States a disadvantage such as high set-up cost, or inflexibility if the business wants to change the product or produce a smaller quantity.
Examiner tip: Flow production is efficient at very high, standardised volumes but expensive to set up and inflexible to change.
- 3.
Explain the difference between quality control and quality assurance.
[2 marks] · no calculatorMarking points
- States that quality control checks the finished product, usually at the end of production, to find and reject faulty items.
- States that quality assurance builds quality checks into every stage of the production process, aiming to prevent faults happening at all.
Examiner tip: Quality control catches faults after they occur; quality assurance is designed to prevent faults occurring in the first place.
- 4.
Explain one factor, other than cost, that a business should consider when choosing the location for a new factory.
[2 marks] · no calculatorMarking points
- Identifies a relevant factor such as proximity to raw materials or suppliers, availability of skilled labour, access to transport links, or proximity to the target market.
- Explains why this factor matters for the factory's efficient operation.
Examiner tip: Location factors trade off against each other; a site cheap for one reason (e.g. rent) may be costly for another (e.g. transport).
- 5.
Explain one advantage and one disadvantage to a business of automating part of its production process with robots.
[2 marks] · no calculatorMarking points
- States an advantage such as lower long-run labour costs, higher consistency, or the ability to work continuously without breaks.
- States a disadvantage such as high initial capital cost, need for staff retraining, or job losses affecting motivation among remaining staff.
Examiner tip: Automation trades a large upfront investment for lower ongoing unit costs, so it suits high, stable volumes best.
- 6.
A business that only orders raw materials from suppliers just before they are needed, to avoid holding large stocks, is using: A Buffer stock B Just-in-time stock control C Just-in-case stock control D Batch production
[1 mark] · no calculatorMarking points
- Selects B: just-in-time stock control, ordering materials to arrive only when needed for production.
Examiner tip: Just-in-time minimises stock-holding costs but relies on very reliable suppliers; just-in-case holds buffer stock to protect against delays.
- 7.
A factory has a maximum possible output of 2,000 units per week. Last week it produced 1,500 units. Calculate its capacity utilisation for that week.
[3 marks]Marking points
- Uses capacity utilisation = actual output ÷ maximum possible output × 100.
- Substitutes 1500 ÷ 2000 × 100.
- Obtains 75%.
Examiner tip: Capacity utilisation shows how much of a factory's maximum output is actually being used, not its total output alone.
- 8.
A furniture maker currently uses job production, making one bespoke item at a time. It is considering switching to batch production of a small standard range. Analyse one benefit and one drawback of this switch.
[3 marks] · no calculatorMarking points
- Explains that batch production of a standard range can lower the average cost per item through some repetition and bulk material buying.
- Explains that this may allow faster order fulfilment and serve more customers than fully bespoke, one-at-a-time work.
- States a drawback such as losing the unique, fully customised appeal that bespoke customers value, or needing new equipment and planning.
Examiner tip: Moving from job to batch production usually trades some uniqueness and premium pricing for lower unit cost and higher output.
- 9.
A growing bakery must choose between investing in an automated bread-slicing machine to cut labour costs, or hiring two more part-time staff to keep flexibility during busy and quiet periods. Recommend one option using two relevant factors.
[3 marks] · no calculatorMarking points
- Analyses a relevant factor for the machine, such as lower ongoing labour cost per loaf if demand is consistently high.
- Analyses a relevant factor for hiring staff, such as flexibility to adjust hours worked if demand varies significantly by day or season.
- Makes a supported recommendation that weighs the pattern of demand against the upfront cost of the machine.
Examiner tip: Automation suits steady, high, predictable demand; flexible staffing suits demand that varies significantly.