IGCSE Business Studies Operations Management #1

What is the primary goal of production management?

• To maximize employee satisfaction in the workplace.

• To develop new marketing strategies for products.

• To ensure efficient and cost-effective production processes.

• To reduce the number of production staff involved.

Answer explanation

The primary goal of production management is to ensure efficient and cost-effective production processes, which directly impacts productivity and profitability.

How does production differ from productivity?

• Production measures the quality of goods, while productivity measures the quantity.

• Production is a measure of time taken, whereas productivity is a measure of resources used.

• Production is the total output, whereas productivity is the efficiency of that output.

• Production refers to the number of workers, while productivity refers to the technology used.

Answer explanation

Production refers to the total output of goods or services, while productivity measures how efficiently that output is produced, often expressed as output per unit of input.

List two benefits of increasing efficiency in production.

• Increased waste and longer production times.

• Limited market reach and decreased customer satisfaction.

• Higher employee turnover and reduced morale.

• Reduced costs and improved product quality.

Answer explanation

Increasing efficiency in production leads to reduced costs by minimizing waste and resource use, while also improving product quality through streamlined processes and better resource allocation.

What role does automation play in increasing productivity?

• Automation eliminates the need for any human involvement.

• Automation only benefits large corporations and not small businesses.

• Automation increases productivity by streamlining tasks, reducing errors, and allowing focus on higher-value work.

• Automation decreases productivity by complicating tasks.

Answer explanation

Automation increases productivity by streamlining tasks, which reduces errors and allows employees to focus on higher-value work, ultimately enhancing overall efficiency.

Why do businesses hold inventories?

• To meet customer demand and manage production effectively.

• To reduce storage costs and minimize waste.

• To limit customer choices and control market supply.

• To increase product prices and maximize profits.

Answer explanation

Businesses hold inventories primarily to meet customer demand and manage production effectively. This ensures that products are available when needed, preventing lost sales and optimizing production schedules.

Explain the concept of lean production.

• Lean production focuses solely on maximizing profits without regard for waste.

• Lean production is a technique that emphasizes increasing inventory levels to meet demand.

• Lean production is a methodology aimed at reducing waste and improving efficiency in manufacturing processes.

• Lean production is a strategy that prioritizes employee satisfaction over efficiency.

Answer explanation

Lean production is a methodology focused on reducing waste and enhancing efficiency in manufacturing, making it the correct choice. It aims to streamline processes rather than just maximizing profits or increasing inventory.

What is just-in-time inventory control?

• A method to increase inventory levels for better production efficiency.

• Just-in-time inventory control is a strategy that minimizes inventory levels by receiving goods only as needed in the production process.

• An approach that involves storing large quantities of goods in warehouses.

• A strategy that focuses on bulk purchasing to reduce costs.

Answer explanation

Just-in-time inventory control focuses on reducing inventory by receiving goods only as they are needed in production, which helps minimize storage costs and improve efficiency.

Describe the Kaizen approach in production.

• Kaizen is a one-time event aimed at making drastic changes in production processes.

• Kaizen is a management strategy that excludes frontline workers from decision-making.

• Kaizen is a continuous improvement methodology that engages all employees to enhance processes, reduce waste, and increase efficiency in production.

• Kaizen focuses solely on reducing production costs without employee involvement.

Answer explanation

Kaizen is a continuous improvement methodology that involves all employees in enhancing processes, reducing waste, and increasing efficiency, making it a collaborative and ongoing effort rather than a one-time event.

What are the main features of job production?

• Limited flexibility and unskilled labor

• Main features of job production include customization, low volume, high flexibility, skilled labor, and a focus on quality.

• High volume with low customization

• Mass production with standardization

Answer explanation

Job production is characterized by customization, low volume, high flexibility, skilled labor, and a focus on quality, making it distinct from mass production and high-volume methods.

What are the limitations of batch production?

• Increased flexibility

• Lower production costs

• Faster production times

• Limitations of batch production include inflexibility, higher inventory costs, increased lead times, risk of obsolescence, and quality control challenges.

Answer explanation

The correct answer highlights the limitations of batch production, which include inflexibility, higher inventory costs, increased lead times, risk of obsolescence, and quality control challenges, contrasting with the other options.