Operations Management module quiz: O-Level Business Studies (SEAB 7085) quiz

Flow production

Batch production

Job production

Mass production

Job production

Custom production

One-off production

Flow (mass) production

It can make different varieties in groups, giving some flexibility

It can never change the product

It is only used for one-off items

It removes all set-up time

Total sales divided by total costs

Output per worker over a period of time

The number of managers in a firm

The price of the product

Because workers are paid more

Because prices automatically rise

Because the same fixed and labour costs are spread over more output, reducing the cost per unit

Because productivity has no effect on cost

$2{,}000

$10

$16{,}000

$4

Buying raw materials in bulk at a lower price per unit

Paying more per unit for small orders

Communication breaking down in a huge firm

Rising average costs as a firm gets too big

Cost advantages of growing larger

Rising average costs that can occur when a business becomes too large, often due to poor communication and coordination

A type of pricing strategy

A method of stock control

Holding any stock at all

Making any profit

Running out of stock (a stock-out) if demand or delivery varies

Selling its products

It needs no reliable suppliers

It requires very large warehouses

It guarantees production never stops

It reduces storage costs and the money tied up in stock by ordering only what is needed when it is needed

Because late or poor-quality deliveries can halt production and harm the firm's own quality and reputation

Because suppliers set the firm's prices

Because reliability lowers customer demand

Because it removes the need for stock control

There is no difference

Quality control inspects products at the end to catch faults; quality assurance builds quality in at every stage to prevent faults

Quality assurance only happens after the customer complains

Quality control means ignoring faults

Only the final inspection of products

That quality is the job of one inspector

That every employee is responsible for quality and aims for continuous improvement

That quality does not matter

It increases customer complaints

It has no link to reputation

It always raises unit costs with no benefit

It builds customer satisfaction and a good reputation, supporting repeat sales and reducing waste from faults