AQA GCSE Business - Unit 3: Business
Operations
Efficiency is the...? - correct answer ✔minimisation of production resources
whilst maximising production output.
The lower the average unit cost is, the more _________ a business is. -
correct answer ✔efficient
Break even formula: - correct answer ✔Fixed Costs / Contribution (selling
price - V. Cost)
What are 6 types of waste? - correct answer ✔Over Production
Waiting Times
Transport
Stock going out of date/fashion/becoming obsolete
Motion (in terms of production line)
Defects
What is JiT? - correct answer ✔Just in Time
Means inputs arrive and outputs are produced when they are needed.
Advantages to JiT:
(4) - correct answer ✔-Less Waste
- Less Space Needed
, - Smaller Investments (ideal for smaller business that cannot afford to buy a
huge stock at once. Ordering stock as and when it's needed maintains a
healthy cash flow)
- Stock is less likely to go obsolete/out of date
Disadvantages to JiT:
(5) - correct answer ✔- Risk of running out of stock
- Lack of control over time frame (relies on timeliness of suppliers for each
order)
- More planning required (potential opportunity cost involved)
- No spare/buffer stocks held if mistakes are made/there are surges in
demand
- System is reliant on suppliers delivering on time
Kaizen: - correct answer ✔A firm that has implemented kaizen introduces
constant small improvements to its business. Employees are encouraged and
are often best placed to suggest improvements as they deal with daily
business processes.
Advantages of Kaizen:
(5) - correct answer ✔- Improves quality and efficiency
- Can improve motivation
- Easier to implement
- Reinforces teamwork
- Improves staff retention
What is the definition of production? - correct answer ✔The process of
turning raw materials into goods and/or services that can be sold.
Operations
Efficiency is the...? - correct answer ✔minimisation of production resources
whilst maximising production output.
The lower the average unit cost is, the more _________ a business is. -
correct answer ✔efficient
Break even formula: - correct answer ✔Fixed Costs / Contribution (selling
price - V. Cost)
What are 6 types of waste? - correct answer ✔Over Production
Waiting Times
Transport
Stock going out of date/fashion/becoming obsolete
Motion (in terms of production line)
Defects
What is JiT? - correct answer ✔Just in Time
Means inputs arrive and outputs are produced when they are needed.
Advantages to JiT:
(4) - correct answer ✔-Less Waste
- Less Space Needed
, - Smaller Investments (ideal for smaller business that cannot afford to buy a
huge stock at once. Ordering stock as and when it's needed maintains a
healthy cash flow)
- Stock is less likely to go obsolete/out of date
Disadvantages to JiT:
(5) - correct answer ✔- Risk of running out of stock
- Lack of control over time frame (relies on timeliness of suppliers for each
order)
- More planning required (potential opportunity cost involved)
- No spare/buffer stocks held if mistakes are made/there are surges in
demand
- System is reliant on suppliers delivering on time
Kaizen: - correct answer ✔A firm that has implemented kaizen introduces
constant small improvements to its business. Employees are encouraged and
are often best placed to suggest improvements as they deal with daily
business processes.
Advantages of Kaizen:
(5) - correct answer ✔- Improves quality and efficiency
- Can improve motivation
- Easier to implement
- Reinforces teamwork
- Improves staff retention
What is the definition of production? - correct answer ✔The process of
turning raw materials into goods and/or services that can be sold.
