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3.4 Decision-making to improve operational performance

5 dot points across 5 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.

How do businesses measure how well their operations are performing?

Key operational metrics including labour productivity, unit costs, capacity utilisation and efficiency, how to calculate them, and how they are used to judge and improve performance.
A focused answer to AQA A-Level Business 3.4, covering key operational metrics including labour productivity, unit costs, capacity utilisation and efficiency, how to calculate them, and how they are used to judge and improve performance.
10 min answer →

How can a business raise efficiency and manage its capacity?

Ways to improve efficiency and labour productivity, lean production and waste minimisation, the meaning and management of capacity, capacity utilisation issues, and the choice between capital and labour intensity.
A focused answer to AQA A-Level Business 3.4, covering ways to improve efficiency and labour productivity, lean production and waste minimisation, the meaning and management of capacity, capacity utilisation issues, and the choice between capital and labour intensity.
10 min answer →

How do businesses manage inventory and their suppliers effectively?

Managing inventory using bar gate stock graphs and reorder levels, just-in-time versus just-in-case, the management and choice of suppliers, and the use of outsourcing in the supply chain.
A focused answer to AQA A-Level Business 3.4, covering inventory management with bar gate stock graphs and reorder levels, just-in-time versus just-in-case, the management and choice of suppliers, and the use of outsourcing in the supply chain.
10 min answer →

What are operational objectives and what trade-offs do they involve?

Common operational objectives such as cost, quality, speed, dependability and flexibility, the influences on them, and the trade-offs between operational targets and other functions.
A focused answer to AQA A-Level Business 3.4, covering common operational objectives such as cost, quality, speed, dependability and flexibility, the influences on them, and the trade-offs between operational targets and the other functions.
9 min answer →

How do businesses manage and improve the quality of their output?

The meaning and importance of quality, the difference between quality control and quality assurance, total quality management and quality circles, and the costs and benefits of improving quality.
A focused answer to AQA A-Level Business 3.4, covering the meaning and importance of quality, the difference between quality control and quality assurance, total quality management and quality circles, and the costs and benefits of improving quality.
9 min answer →