Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

A-level Business > Unit 4 > Flashcards

Unit 4 Flashcards

1
Q

Give some examples of operational objectives

A
  • Quality
  • Cost
  • Flexibility
  • Efficiency
  • Innovation
  • Environment
  • Speed of response
  • Dependability
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Give internal influences on operational objectives

A
  • Nature of product
  • Availability of resources
  • Other departments
  • Overall objectives
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Formula for labor productivity

A

Output per period / number of employees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The value of setting operational objectives

A

Operational objectives can motivate employees who work in the operations function. They are also of value as the help a business measure the effectiveness of the operations function

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Why capacity is important to a business

A

Capacity determines the total amount a business can produce and is important in decisions relating to whether a business can accept more orders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Why efficiency is important to a business

A

Efficiency is important as it can help a business reduce its unit costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

How to utilise capacity efficiently

A

A business can manage its capacity effectively by aiming to increase or reduce overall capacity depending on its level of capacity utilisation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

2 benefits and 2 drawback Operating at
low capacity
utilisation

A

1 Business can take on new orders

2 Production may be less rushed which can lead to higher quality

Downside:
1 Higher unit costs

2 Staff may become concerned re their job security leading to lower motivation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

2 benefits and 2 drawbacks of Operating at high capacity
utilisation

A

1 Lower unit costs

2 Workers may feel more secure in their job leading to increased motivation

Downside:
1 Less time for routine maintenance and staff training

2 Staff may feel overworked leading to lower quality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

2 benefits and 2 difficulties of lean production

A

1 Improves liquidity due to lower waste

2 Lower unit costs

Drawbacks:
1 Resistance to change of implementation

2 Potential increase in short-term costs which may be difficult to finance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

2 benefits and 2 drawbacks of increasing labour productivity

A

1 Output per employee will be increased

2 Lower unit costs

Drawbacks:
1 Quality may suffer

2 Employees may demand higher pay

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Difference between JIT and just in case

A

JIT focuses on reducing supply costs by only ordering inventory when it is needed, while JIC focuses more on risk management over reducing costs by keeping extra inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

benefit and drawbacks of JIt production

A

Inventory is only ordered when it is needed which can reduce waste

Can improve cash flow/liquidity

Drawback:
May reduce the chances of purchasing economies of scale

Supply issues may halt production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Benefits and drawbacks of JIC production

A
  • Business can cope with unexpected orders

Ordering more inventory can allow the business to benefit from purchasing economies of scale

Drawbacks:
Potential for increased waste as the business holds more inventory

Can reduce the liquidity of the business as more cash is tied up in inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

2 ways a business could increase efficiency

A
  • More automation within the production process therefore becoming more capital intensive
  • Outsource some of the businesses operations
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

2 difficulties in increasing efficiency

A
  • Cost - efforts to increase efficiency via automation may be costs, especially in the short-term
  • Resistance to change - employees may be resistant in relation to efforts to increase efficiency, especially if this requires higher labour productivity which may require less staff
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

How can a business increase labour productivity

A
  • Provide more staff training
  • Re-organise the layout of the workspace
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Difference between capital and labour intensive

A

Capital intensive is where the business relies mainly on capital, such as automation whereas labour intensive is where the business relies more on labour. Car manufacturing is more capital intensive whereas hotels and restaurants are more labour intensive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Give one benefit and one downside of Capital intensive

A
  • More efficient leading to lower unit costs
  • Capital costs tend to be more expensive than labour costs
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Give one benefit and one downside of Labour intensive

A
  • Less expensive than capital, especially in the short–term
  • Quality may be inconsistent and depend on the expertise of the individual employee
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

How to choose the optimal mix of resources

A

It depends on the nature of the business, for example, a business that operates in a highly automated industry will need to be more capital intensive. It also depends on the nature of the product/service and the overall financial position of the business

22
Q

How technology can be used to improve operational efficiency

A

Technology can be used to improve operational efficiency as it increases labour productivity which can reduce unit costs and also lead to more consistent quality, which can reduce waste

23
Q

Ways of using technology to improve operational performance

A

Automation
Robotics

24
Q

Benefits of improving quality

A

Improves business reputation and brand image

May allow a business to charge a higher price

25
Difficulties of improving quality
Resistance to change from employees who are unwilling to take on additional workload in relation to quality improvements The cost of improving quality, for example, introducing a more robust method of checking and improving quality
26
Consequences of poor quality
Increased costs due to waste Poor reputation and brand image
27
Difference between Quality control and quality assurance
Quality control is more concerned with inspection of finished products whereas quality assurance is about getting it right first time and ensuring that quality is built in to every aspect of the businesses procedures and processes
28
benefits and drawbacks of quality control
1 May lead to improved quality 2 The use of specialist quality control inspectors helps maintain worker productivity Drawbacks: 1 Use of quality control inspectors may increase costs 2 Only a sample of finished goods are usually inspected
29
What are the benefits and downsides of Quality assurance
1 Should lead to better quality as everyone is responsible for quality 2 May increase worker motivation Drawbacks: 1 May lead to a reduction in labour productivity 2 Workers may not welcome extra responsibility
30
What are the benefits and downsides of Using temporary employees when matching supply to demand
1 Temporary workers can be 'let go' when demand falls 2 Temporary workers are often cheaper than permanent staff Drawbacks: 1 Temporary workers may lack the motivation of permanent staff 2 Increase in training costs
31
What are the benefits and downsides of Using part-time employees when matching supply and demand
1 Part-time workers are often cheaper than full-time workers 2 Part-time workers can cover peak increased in demand Drawbacks: 1 Part-time workers may lack the commitment of full-time workers 2 May be more difficult to communicate with
32
What are the benefits and downsides of Producing to order
1 No excess inventory 2 Less wastage Drawback: 1 May limit opportunities for economies of scale 2 Longer lead times
33
Outsourcing
Using a third party to carry out specific business activities
34
Lead time
The time difference between a business placing an order and the inventory being received by the business
35
Re-order level
The re-order level is the level of inventory that triggers an order by the business. For example, if the re-order level is 800 units, when the business only has 800 units of inventory left, inventory will be re-ordered
36
Buffer level of inventory
Buffer level of inventory is the minimum amount of inventory that a business will keep at anyone time
37
Re-order quantities
Re-order quantity is the amount of inventory that a business will order when the re-order level is reached
38
Identify two influences on each of the following Amount of inventory held by a business
Nature of the product Lead time
39
Identify two influences on each of the following Choice of suppliers
Flexibility Payment terms
40
The value to a business of Outsourcing
Allows the business to focus on its core activities leading to increased efficiencies However, there may be difficulties in establishing quality
41
The value to a business of Managing supply to match demand
Lower costs as fewer idle resources However, if a business only manages supply to match (current) demand, the business may be unable to meet unexpected orders or short-term peaks in demand
42
The value to a business of Managing the supply chain effectively
Products arrive on time at the correct locations, in the correct quantities and of the required quality standards However, poor management of the supply chain can result in products not being delivered as expected e.g. KFC experienced significant issues with its supply chain in 2018 resulting in many of its stores having to close
43
Ways a business can manage its supply chain effectively
- Close relationships with suppliers - Ensuring the supply is effectively matched with demand - Good inventory management
44
What are the implications of under-utilisation and over-utilisation of capacity?
Under-utilisation → higher unit costs, wasted resources Over-utilisation → pressure on staff, lower quality, potential bottlenecks
45
How can a business match operations to demand?
Flexible workforce Part-time or temporary staff Outsourcing or offshoring Seasonal production planning
46
what are internal and external causes of capacity changes?
Internal: machine upgrades, staff training, new processes External: economic cycles, seasonal demand, legislation
47
Define supply chain management.
Managing the flow of goods, services, and information from suppliers to final customers. It includes sourcing, logistics, inventory control, and building supplier relationships.
48
What is value of added?
Value added = Selling price – Cost of bought-in goods and services. Firms aim to increase value added through innovation, branding, and customer service.
49
How does technology improve operational efficiency?
Automation reduces labour costs CAD/CAM improves design and production accuracy Inventory systems (e.g. JIT) reduce waste Improves data analytics and forecasting
50
How can operations strategy influence competitiveness?
By improving: Cost-efficiency (low prices) Speed and flexibility (quick response) Dependability (reliable delivery) Quality (brand reputation)
51
What are operational objectives a business might set?
Cost targets Quality levels Efficiency and productivity Dependability Environmental sustainability

A-level Business (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions