INTRODUCTION & PRODUCTION SYSTEMS

1 2 3 QUESTION Describe the role of Operations in an organisation Suggest why operations is considered by many organisations to be important. Describe the main factors which should be taken into consideration when deciding which production system to use. Explain the disadvantages of a labour-intensive system of production. Justify the use of a labour-intensive system of production. Explain the disadvantages of a capital -intensive system of production. Justify the use of a capital -intensive system of production. Ideally production should be at a constant level for good planning. Outline four factors that might result in variable production levels. MARKS 4 2 4

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PURCHASING & STOCK
1 QUESTION The quality of materials will help an organisation decide which supplier to use. Describe other factors that a purchasing manager should consider when choosing a supplier. 2 Supermarkets have to make decisions on the quantity of stock to hold. Describe the problems caused by:  Overstocking  Understocking 6 MARKS 4

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The efficient control of stock is essential for the liquidity of an organisation. Explain how an effective form of stock control can be used in a business. Department stores need to be able to identify best-selling items in order to maintain appropriate stock levels. Describe how ICT can help an organisation to maintain appropriate stock levels.

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Dell, the computer manufacturer, uses the JIT system of stock control. Explain the costs and benefits of Dell using this system.

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Describe the risks to an organisation of running with low stock levels. Discuss the factors which must be taken into account when setting a stock reorder level.

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METHODS OF PRODUCTION
1 QUESTION Describe the process of job production, it’s most suitable application and its advantages and disadvantages. Describe the process of batch production, it’s most suitable application and its advantages and disadvantages. Describe the process of flow production, it’s most suitable application and the advantages and MARKS 8

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disadvantages. Suggest why an organisation might use a combination of productions methods.

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QUALITY
1 QUESTION Quality is important to German car manufacturers like Volkswagen. Describe the factors that Volkswagen would have to consider when assessing if they can provide quality in their operating systems. 2 Distinguish between quality control and quality assurance. Describe the advantages of quality circles for  The organisation  The employee 4 Quality is central to the production of desirable goods and services. Explain how a manufacturing organisation can ensure quality in the production process. 5 Describe the benefits of holding a trademark or quality symbol for  an organization  a consumer Describe the advantages and disadvantages of using an effective quality assurance system. 4 4 1 MARKS 3

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PAYMENT SYSTEMS
1 QUESTION Some organisations use a flat rate system to pay employees. Describe other types of payment systems. Distinguish between the following: • Piece rate and time rate • Flat rate and overtime • Bonus rate and commission Arnold Clark are considering ways of financially rewarding sales staff. Explain 3 payment methods which they could implement. Describe possible objectives an employee might have regarding pay. Compare these objectives with those of an employer. MARKS 4

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TRANSPORT & WAREHOUSING
1 2 QUESTION Outline why organisations may need to have warehousing facilities? Describe the factors that determine the method of transport used. Explain the reasons why road and rail transport are not popular methods of transporting goods in this country. MARKS 3 3

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