2.3.1 business operations

Question 1

One advantage of flow production?

Answer 1

Increased productivity

Question 1

What is flow production?

Answer 1

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

Question 2

What is batch production?

Answer 2

Producing a limited number of identical products

Question 2

One disadvantage of flow production?

Answer 2

Not able to customise products

Question 3

Advantage of batch production?

Answer 3

Able to provide some level of customisation

Question 4

Disadvantage of batch production?

Answer 4

Machinery needs to be cleaned between batches which reduces productivity

Question 5

What is job production?

Answer 5

Production of a one-off item for a single customer

Question 6

Advantage of job production?

Answer 6

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

Question 7

Disadvantage of job production?

Answer 7

Increased staff costs due to specialist skills and training

Question 8

What does the term “business operations” mean?

Answer 8

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

Question 9

What does productivity mean?

Answer 9

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

Question 10

Advantage of increased productivity?

Answer 10

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