Orange Booklet

Question 1

What is a trade union?

Answer 1

An association of workers in a trade or a precession, formed to defend and advance their rights and interest, e.g. negotiating pay

Question 2

What is collective bargaining?

Answer 2

Where a business negotiated with representatives of employees, such as trade unions, regarding the terms and conditions of employment

Question 3

What is industrial action?

Answer 3

Where employees, usually in the form of a trade union, protest over some element of working conditions

Question 4

Give 3 forms of industrial action:

Answer 4

1. Overtime ban (refuse to work any extra hours)
2. Work-to-rule (stick very closely to rules in workplace)
3. Strikes (withdrawal from labour) e.g miners strike 1984

Question 5

How can the employee and employee attempt to dispute resolution? (3)

Answer 5

1. Negotiation
2. Consultation
3. ACAS

Question 6

What does ACAS stand for?

Answer 6

Advisory

Conciliation - discuss dispute

Arbitration - use impartial adviser to settle dispute

Service

Question 7

What is meant by operations management? Give an example

Answer 7

The methods used by a business to create products and services that are efficiently delivered to the customer to maximise profits and reduce costs

E.g. Tesla = in process of making worlds largest battery production facility for its electrical cars

Question 8

What is added value? With calculation

Answer 8

Enhancing the gap between the production cost and selling price

Added value = selling price of product - cost of production

Question 9

What is the definition of production?

Answer 9

The total amount of output produced in a specific time period,

More produced in a specific time period the more efficient the business

Question 10

Give 3 methods of production:

Answer 10

1. Job production
2. Batch production
3. Flow production

Question 11

What is job production? Give an example

Answer 11

A method of production in which a business concentrated in producing a single unit at a time, usually for a unique product.

E.g. wedding dresses

Question 12

What is batch production?

Answer 12

Manufacturing a number of goods at the same time, usually identical products

Question 13

What is flow production?

Answer 13

A method of production in which units move directly from one operation to the next in a conitinous sequence

Question 14

What is productivity?

Answer 14

A measurement of the efficiency with which a business turns inputs into outputs.

The more productive a business is the better it can compete = competitive advantage and increased market share

Question 15

What is the calculation for labour productivity?

Answer 15

Output per period / no. of employees per period

Question 16

What is the calculation for capital utilisation?

Answer 16

( Actual output / max. possible output ) x 100

Question 17

What is capacity utilisation?

Answer 17

Measure the proportion of current output compared with the maximum possible output in a given period

Question 18

What does capacity utilisation tell us? If it’s high

Answer 18

High = lower unit costs, using assets effectively, making the business more competitive should mean higher profits

Question 19

Give 3 ways of increasing capacity utilisation:

Answer 19

1. Increasing workforce’s hours (extra shifts or temp. staff)
2. Improve marketing = increase demand for products
3. Cutting capacity of factories (buy smaller premises)

Question 20

What is spare capacity?

Answer 20

When a business is working at less than 100% capacity

Question 21

Give 4 problems with spare capacity:

Answer 21

1. Demotivation of staff
2. Increase costs to business e.g redundancy payments
3. Reduced profits
4. Lack of return on capital investment

Question 22

How to resolve space capacity: (3)

Answer 22

1. Getting someone else to produce goods for you
2. Concentrating on core products
3. Increasing use of assets (e.g. sublet some of ship floor)

Question 23

Give 4 advantages of technology:

Answer 23

1. Improved quality
2. Faster innovation
3. More effective marketing sales
4. Less dependency on labour

Question 24

What is lean production?

Answer 24

Philosophy which aims to minimise costs and enhance quality by using a tango of waste-saving measures

Question 25

Give 4 methods used to reduce waste and improve productivity:

Answer 25

1. Kaizen
2. Just-in-Time
3. Cell production
4. Time-based management

Question 26

What is Kaizen?

Answer 26

Practices to promote continuous improvement such as asking groups of workers to share ideas about not efficiency

Question 27

What is Just-in-Time?

Answer 27

A stock management strategy which aims to increase efficiency by receiving raw materials only when that are needed in the production process

Question 28

What is Cell production?

Answer 28

A system in which the production line consists of small teams (cells), with each cell responsible for a significant part of the end product

Question 29

What is Time-Based management?

Answer 29

Focus on speed of development, response and delivery are becoming increasingly important. Time regarded as key resource to business

Question 30

What is Quality?

Answer 30

Feature of product or service that allows it to satisfy customer needs

Question 31

Why is quality important?

Answer 31

Factor in gaining competitive advantage.
If customer is consistently satisfied, it will increase their loyalty of the brand, which results in increased sales, market share and profits

Question 32

Give 4 ways in which quality can be controlled:

Answer 32

1. Quality control
2. Quality assurance
3. Total quality management
4. Benchmarking

Question 33

What is quality control?

Answer 33

Process of inspecting products to ensure that they meet the required quality standards