AQA A-Level Business 3.4 Decision-making to improve operational performance overview quiz quiz

20 units per worker

2,000 units per worker

100 units per worker

200 units per worker

$75\%$

$60\%$

$80\%$

$133\%$

Total cost multiplied by output

Total cost divided by output

Output divided by total cost

Fixed cost divided by variable cost

Producing as much output as possible at all times, regardless of the waste created

Deliberately holding very large stocks of materials and finished goods at all times

An approach that minimises waste of all kinds while maintaining quality

Relying only on manual labour and avoiding the use of any machinery

Control builds quality in at every single stage, whereas assurance simply inspects the finished output at the very end

Quality control and quality assurance are really just two different names for exactly the same thing

Quality assurance only ever applies to services, while quality control only applies to physical goods

Control inspects finished output to remove defects; assurance builds quality in throughout to prevent them

The minimum stock held as a safety margin against delays or surges in demand

The maximum quantity of stock that a firm has the physical space to hold at one time

Stock that has been damaged in storage and can no longer be sold to customers

The stock level that automatically triggers a new order to be placed with the supplier

It always increases storage costs because far more stock has to be held at once

A supplier delay can halt production because there is no buffer stock

It requires the firm to build and run huge warehouses to hold its raw materials

It guarantees that the quality of the finished products will be lower than before

Fixed costs per unit rise sharply because output is being spread very thinly

It always leaves a large amount of machinery sitting idle and unused on the line

There is no slack for breakdowns or new orders, and faults and stress can rise

It automatically reduces total output to a level that is below customer demand

It completely removes the need for any staff training or any change in workplace culture

It increases the number of faulty products that are returned by dissatisfied customers

It only ever checks the finished products once at the very end of the production line

Fewer defects and lower waste costs, with quality made everyone's responsibility

High-volume, standardised output

Low-volume, bespoke or one-off products

A small craft business

A service that depends on personal contact

It always ends up costing the firm more than simply doing all of the work in-house

It reduces direct control over quality and timing and can create dependency

It guarantees that customers will always receive faster delivery of their orders

It completely removes the firm's need to deal with any external suppliers at all