2.3.1 Business Operations

Question 1

What is flow production?

Answer 1

Continuous production of identical products which gives scope for high levels of automation.

Question 2

One advantage of flow production?

Answer 2

Increased productivity

Question 3

One disadvantage of flow production?

Answer 3

Not able to customise products

Question 4

What is batch production?

Answer 4

Producing a limited number of identical products

Question 5

Advantage of batch production?

Answer 5

Able to provide some level of customisation

Question 6

Disadvantage of batch production?

Answer 6

Machinery needs to be cleaned between batches which reduces productivity

Question 7

What is job production?

Answer 7

Production of a one-off item for a single customer

Question 8

Advantage of job production?

Answer 8

Able to charge a premium price because product is bespoke to customer’s needs

Question 9

Disadvantage of job production?

Answer 9

Increased staff costs due to specialist skills and training

Question 10

What does the term “business operations” mean?

Answer 10

The section of an organisation concerned with making and delivering what the customer wants

Question 11

What does productivity mean?

Answer 11

A measure of efficiency, usually output per person in a given time period

Question 12

Advantage of increased productivity?

Answer 12

Reduced unit costs which leads to increased contribution per unit which leads to increased gross profit