AOS3

Question 1

Operations management

Answer 1

Operations management is coordinating and organising the activities involved in
producing the goods or services that a business sells to customers.

Question 2

Efficiency

Answer 2

Efficiency is how productively a business uses its resources when producing a good or service.

Question 3

Effectiveness

Answer 3

Effectiveness is the extent to which a business achieves its stated objectives.

Question 4

Productivity

Answer 4

Productivity is the number
of goods or services that are
produced compared to the
number of resources used in
the production process.

Question 5

Inputs

Answer 5

Inputs are the resources used by a business to produce goods and services.

Question 6

Processes

Answer 6

Processes are the actions performed by a business to transform inputs into outputs.

Question 7

Outputs

Answer 7

Outputs are the final goods or services produced as a result of a business’s operations
system which are delivered or provided to customers.

Question 8

Raw materials

Answer 8

Raw materials are unprocessed
substances used to produce goods
and services.

Question 9

Manufacturing businesses

Answer 9

Manufacturing businesses use
raw materials and resources to
produce a finished physical good.

Question 10

Service businesses

Answer 10

Service businesses provide
intangible products, usually with
the use of specialised expertise.

Question 11

Tangible

Answer 11

Tangible is the ability to be

touched.

Question 12

Capital intensive

Answer 12

Capital intensive is using a
high degree of machinery and
equipment during the production
process.

Question 13

Inventory

Answer 13

Inventory are resources and

finished goods held as stock.

Question 14

Standardised goods

Answer 14

Standardised goods are goods that
are produced consistently and are
virtually identical to one another.

Question 15

Intangible

Answer 15

Intangible is something that

cannot be touched.

Question 16

Labour intensive

Answer 16

Labour intensive is having a high
degree of employee involvement
during the production process.

Question 17

Computer-aided design

Answer 17

Computer-aided design (CAD) is a digital design tool that enables businesses to generate and
modify technical illustrations of a product.

Question 18

Computer-aided manufacturing

Answer 18

Computer-aided manufacturing (CAM) is a software used to control and direct the
production process by controlling machinery and equipment through a computer.

Question 19

Automated production lines

Answer 19

Automated production lines are machinery and equipment which are arranged in a sequence,
and the product is developed as it proceeds through each step.

Question 20

Website development

Answer 20

Website development is the creation and improvement of online web pages controlled by a
business that customers can use to discover information about the business and purchase their
goods or services at any time.

Question 21

Forecasting

Answer 21

Forecasting is a materials planning tool that predicts customer demand for an upcoming
period using past data and market trends.

Question 22

A master production schedule

Answer 22

A master production schedule (MPS) is a plan that outlines what a business intends to
produce, in its specific quantities, within a set period of time.

Question 23

Materials requirement planning

Answer 23

Materials requirement planning (MRP) is a process that itemises the types and quantities
of materials required to meet production targets set out in the master production schedule.

Question 24

Just in time

Answer 24

Just in time (JIT) is an inventory control approach that delivers the correct type and
quantity of materials as soon as they are needed for production.

Question 25

Stock

Answer 25

Stock is the materials stored for
production or goods stored for
sale.

Question 26

Quality control

Answer 26

Quality control is inspections at various stages of the production process to ensure
products meet designated standards and unsatisfactory products are discarded.

Question 27

Quality

Answer 27

Quality is a good or service’s ability

to satisfy a customer’s needs.

Question 28

Reactive

Answer 28

Reactive is responding to
a situation after something
has occurred.

Question 29

Quality assurance

Answer 29

Quality assurance is a business achieving a certified standard of quality in its production after
an independent body assesses its operations system.

Question 30

Proactive

Answer 30

Proactive is performing actions
to prevent problems before they
occur.

Question 31

Total quality management (TQM)

Answer 31

Total quality management (TQM) is a holistic approach where all employees are committed
to continuously improving a business’s operations system to enhance the quality for customers.

Question 32

Quality circles

Answer 32

Quality circles are small groups of
employees who meet to discuss
and create solutions to problems
related to quality.