Operations is a core part of GCSE Business Studies. Revise the key concepts and common mistakes below, then lock them in with the free games.
Key concepts
Quality controlInspecting finished goods to spot defects
Quality assuranceBuilding quality into every stage of production
Lean productionCutting waste of all kinds to raise efficiency
JITJust-in-time: stock arrives only when needed
JICJust-in-case: hold buffer stock for safety
Defect rate% of units made that fail quality checks
AutomationMachines doing work previously done by humans
KaizenContinuous small improvements by all staff
Unit costTotal cost divided by units produced
BottleneckSlowest stage that limits total output
TQMTotal Quality Management — everyone owns quality
ReliabilityProbability a product works without failing
Job productionOne-off, made to order (e.g. wedding cake)
Batch productionGroups of identical items made together
Common mistakes to avoid
Questions where students often pick the tempting wrong answer — make sure you know the right one:
Are profit and cash flow the same?✗ Yes, profit and cash are identical. ✓ No — a profitable business can still run out of cash.
What are the four Ps of the marketing mix?✗ The four Ps are Product, Price, Profit, and People. ✓ Product, Price, Place (distribution), and Promotion — the controllable variables a business uses to satisfy customers and achieve objectives.
Kaizen is BEST described as.✗ Big one-off changes ✓ Continuous small improvements
Does buying in bulk always save a business money overall?✗ Bigger orders are always cheaper for the business overall. ✓ Bulk-buying lowers the price per unit, but it raises storage costs, ties up cash and risks waste if demand falls — the net effect depends on the product.
Does higher productivity mean employees are working longer hours?✗ The only way to raise productivity is to make staff work more hours. ✓ No — productivity is output per worker per time period; it rises through better training, equipment and methods, not necessarily longer hours.
Practise Operations — free games
Test yourself with these quick revision games for this topic:
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