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AQA GCSE Business (8132) · Spec 3.3.1, 3.3.2, 3.3.3 and 3.3.4

3.3 Business operations

Read the notes, then try the questions. Each one is marked the moment you press Check, and shows the right answer and why.

Key ideas

  • Job production makes one-off items. Batch production makes groups of identical items. Flow production makes standard items continuously on a line.
  • Flow production gives low unit costs for large volumes, but it is slow and costly to switch to a different product.
  • Procurement means sourcing and buying the materials and services a business needs. Price is only one supplier factor. Reliability and quality matter too.
  • Just-in-time (JIT) means stock arrives only when it is needed. It cuts the money tied up in stock, but late deliveries can stop production.
  • Quality control checks products for faults. Quality assurance builds checks into every stage, so faults are prevented.
  • Good customer service can bring repeat custom and recommendations. Poor quality can mean refunds, recalls and a damaged reputation.

Key terms

Job production
Making a one-off item to a customer's order, such as a wedding dress.
Batch production
Making a group of identical products, then switching to the next group.
Flow production
Making standardised products continuously, often on an assembly line.
Procurement
Sourcing and buying the materials and services a business needs.
Just-in-time (JIT)
Ordering stock to arrive only when it is needed for production.
Quality control
Inspecting products to find faults.
Quality assurance
Building quality checks into every stage of production.

Common mistakes

  • Saying quality control prevents faults. It finds them. Quality assurance aims to prevent them.
  • Choosing a supplier on price alone. A cheap supplier who delivers late can cost more in the end.
  • Saying that holding lots of stock is free. Stock ties up cash and needs storing.

Exam tip

For process questions, name the process and then tie it to the product: 'batch production suits 200 seasonal pies because the same recipe is repeated'. On a 4-mark 'Explain one benefit and one risk', give both sides and develop each one.

Free practice questions

7 questions, 11 marks. Answer, then press Check. The marking guide explains how the marks are worked out. Nothing is saved.

  1. Question 1 · Matching[3 marks]

    Match each product to its most likely production process.

  2. Question 2 · Multiple choice[1 mark]

    Which stock management approach involves ordering materials to arrive only when they are needed for production?

  3. Question 3 · Multiple choice[1 mark]

    Which of the following best describes quality assurance, as opposed to quality control?

  4. Question 4 · Multiple choice[1 mark]

    What is meant by 'procurement' in business operations?

  5. Question 5 · Matching[3 marks]

    Match each quality term to its correct description.

  6. Question 6 · True or false[1 mark]

    State whether this statement is True or False.

  7. Question 7 · True or false[1 mark]

    State whether this statement is True or False.