revision 2.4

Question 1

formula for capacity utilisation

Answer 1

(Actual Output / Maximum Possible Output) x 100

Question 2

what is capacity utilisation

Answer 2

measures how much of a business’s potential output is actually being used

Question 3

what is productivity

Answer 3

measure of how efficiently a business uses its resources to create goods

Question 4

pro of QC

Answer 4

ensures product meets specific standards - higher customer satisfaction

Question 5

con of QC

Answer 5

thorough checks slow production process - can’t meet constant demand changes

Question 6

pro of TQM

Answer 6

involving employees can boost morale - improve motivation - increased productivity

Question 7

con of TQM

Answer 7

long procedure to implement - all staff require training

Question 8

what is QC

Answer 8

making sure the quality meets the specified quality performance criteria

Question 9

what is TQM

Answer 9

management approach focused on continuously improving quality in all areas of organisation