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Paper 1
Business Operations
Both
Operations decisions balance cost, quality, and speed.
Key Facts
- Lean production aims to reduce waste.
- Capacity utilisation measures how fully a business uses resources.
- High utilisation can cause quality problems.
Topics Covered
Production Methods
What you need to know
- •Job, batch, and flow production suit different products.
- •Flow production suits high volume standard products.
Exam Tips
- Link method choice to cost, quality, and flexibility.
Quality and Efficiency
What you need to know
- •Quality control checks at the end of production.
- •Quality assurance focuses on preventing defects.
Exam Tips
- Explain how quality affects reputation and sales.
Inventory Management
What you need to know
- •Just-in-time reduces storage costs but increases risk.
- •Buffer stock protects against delays.
Exam Tips
- Use context to decide which system is best.
Key Terms
capacity utilisation
Actual output as a percentage of maximum output.
quality assurance
Preventing defects through process focus.
just-in-time
Ordering stock only when needed.
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Common Exam Questions
Calculate capacity utilisation if output is 450 and maximum is 600.
2 markseasyPaper 1
Model Answer
450 / 600 x 100 = 75 percent.
What examiners want to see
- ✓Correct formula
- ✓Percentage
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