OCR A-Level Business operations management overview quiz quiz

Cost, quality, speed, dependability and flexibility

Profit, growth, survival, market share and brand image

Price, place, product, promotion and people in the mix

Liquidity, gearing, profitability, cash flow and stock turnover

The total cost of all the raw materials and other bought-in inputs used in production

The difference between the cost of inputs and the selling price of the output

The amount of tax a firm pays to the government on its profits each year

The total number of finished units the business produces in a given period

Flow production

Batch production

Job production

Mass production

50%

143%

35%

70%

There is no slack for maintenance, extra orders or flexibility, risking strain and lost sales

Unit costs always rise very sharply indeed once the firm has reached its full maximum output level

The firm can never make any profit at all while it is running at full capacity output

It automatically lowers the quality of every product the business makes down to zero

It ties up far too much cash in large amounts of stock held in the warehouse

Any disruption to supply halts production because almost no stock is held

It always raises storage and warehousing costs because so much stock is kept

It cannot be used by manufacturers and only suits retail and service firms

A method of inspecting finished goods for faults at the end of the production line

A type of flow production used to make large volumes of identical standard products

Continuous improvement through small, ongoing changes suggested by employees

A pricing strategy used to set prices below those of competitors in the market

Control prevents defects throughout the process; assurance only detects them at the very end

They are simply two different names for exactly the same single quality method

Quality assurance only applies to service businesses and never to manufacturers

Control detects defects at the end; assurance prevents them throughout the process

Every employee taking responsibility for quality at every stage, with continuous improvement

A separate specialist inspection team checking every product at the end of the production line

Holding large buffer stocks of finished goods so faulty items can be replaced quickly

Pricing products below their cost of production in order to win extra market share

Product innovation lowers the cost of making goods, whereas process innovation raises total sales revenue

Product innovation creates new or improved products; process innovation improves how things are made

They are simply two different names for exactly the same single business activity overall

Process innovation only applies to service businesses and is never used by manufacturers at all