Operations | OCR A-Level Business H436 (H436)
Operations
- 250 questions
- 18 subtopics
- Component 02: Operations, finance and external influences
- Component 02
Operations is examined in Component 02, Operations, finance and external influences.
It covers the purpose of operations and the transformation process, added value and how it is calculated, ways of adding value: convenience, branding, design and facilities, sustainability as a way of adding value, automation, robotics and 3D printing in production, AI, cloud services and digital technology in production, efficiency, effectiveness and productivity, measuring and improving productivity, production quality: purpose and standards, quality control and quality assurance, capacity utilisation and how it is calculated, managing capacity: increasing output, cutting capacity and outsourcing, types of inventory and the purpose of inventory control, inventory control charts, re-order levels and lead time, just-in-time and inventory management systems, the stages of supply chain management, logistics: procurement, transport and reliability of supply and key performance indicators in operations.
Sample questions from Operations
Answer each one closed book first, then open the answer.
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The purpose of operations and the transformation process
State two differences between producing a good and providing a service.
Show the answer
A good is tangible and can be stored, while a service is intangible and is usually produced and consumed at the same moment. -
Ways of adding value: convenience, branding, design and facilities
State two ways design can add value to a product.
Show the answer
Design can make a product more attractive and easier to use, and it can reduce the quantity of material needed to make it. -
Automation, robotics and 3D printing in production
Why can automation improve quality as well as output?
Show the answer
A machine repeats the same movement to the same specification each time, so variation between units and the defect rate both fall. -
Efficiency, effectiveness and productivity
A workshop makes 500 units a day at the lowest cost in its industry, but a third of them are the wrong specification. Is it efficient, effective, or neither?
Show the answer
It appears efficient in its use of resources but it is not effective, because a third of its output does not do the job it was made for. -
Production quality: purpose and standards
Why does a business set minimum standards for its output?
Show the answer
They keep the business within the law on safety and product description, and they stop variable output damaging the reputation of the brand. -
Capacity utilisation and how it is calculated
A plant with a maximum output of 800 units a day is running at 65% utilisation. Calculate its actual daily output.
Show the answer
Actual output is 800 × 0.65 = 520 units a day. -
Types of inventory and the purpose of inventory control
What is meant by inventory control?
Show the answer
Inventory control is managing how much of each item is held and when it is reordered, so that production and sales are never held up while as little cash as possible is tied up in stock. -
Just In Time and inventory management systems
Why does Just In Time depend on quality being right first time?
Show the answer
There is no spare stock to replace a faulty component, so a single substandard delivery stops production immediately.
The 18 subtopics
One subtopic is one session. Work down the list.
| Subtopic | What it covers | Questions |
|---|---|---|
| The purpose of operations and the transformation process | Recall questions on what the operations function does, production, inputs, outputs and the transformation process, the difference between goods and services, operations objectives, and how operations links to marketing and competitiveness. | 14 |
| Added value and how it is calculated | Recall questions on added value and its formula, calculating it per unit and in total, and the ways a business raises it. | 14 |
| Ways of adding value: convenience, branding, design and facilities | Recall questions on adding value through convenience, branding, a unique selling point, design, quality and facilities, which methods suit different products, how easily rivals copy them, and the risk of raising quality. | 14 |
| Sustainability as a way of adding value | Recall questions on circular design, sustainable sourcing, energy efficiency in production and its effect on unit costs, reducing packaging, and the risk of making a sustainability claim that is not accurate. | 12 |
| Automation, robotics and 3D printing in production | Recall questions on automation and robotics, their effects on unit costs, quality, cost structure and the workforce, their drawbacks for small manufacturers, and the uses and limits of 3D printing. | 13 |
| AI, cloud services and digital technology in production | Recall questions on computer systems in operations, cloud services and their benefits and risks, artificial intelligence and predictive maintenance, augmented reality, nanotechnology, and the hidden costs of new technology. | 13 |
| Efficiency, effectiveness and productivity | Recall questions on productivity, efficiency and effectiveness and the difference between them, ways of improving labour productivity, the effect of motivation, the trade-off with quality, and measuring productivity in services. | 13 |
| Measuring and improving productivity | Recall questions on calculating labour productivity, output per labour hour and labour cost per unit, interpreting changes and industry comparisons, ways of raising productivity, and the risk of measuring by output alone. | 15 |
| Production quality: purpose and standards | Recall questions on quality and fitness for purpose, minimum standards, the costs of poor quality, product recalls, rising complaints, how a reputation for quality supports price, and how customers judge quality. | 13 |
| Quality control and quality assurance | Recall questions on quality control and quality assurance, the differences between them, their advantages and drawbacks, self-checking, finding faults early, sampling risk, and which approach suits different production lines. | 14 |
| Capacity utilisation and how it is calculated | Recall questions on capacity utilisation and its formula, calculating it and working back to output, and what a figure at or near full capacity means for a business. | 16 |
| Managing capacity: increasing output, cutting capacity and outsourcing | Recall questions on maximum capacity, ways of increasing capacity, rationalisation and the costs of cutting capacity, planned and unplanned maintenance downtime, and the uses and risks of outsourcing production. | 15 |
| Types of inventory and the purpose of inventory control | Recall questions on raw materials, work in progress and finished goods, the purpose of inventory control, the costs of stock-outs and of holding too much inventory, and how inventory control affects cash flow. | 13 |
| Inventory control charts, re-order levels and lead time | Recall questions on inventory control charts, buffer inventory, maximum inventory level and lead time, calculating the re-order level and re-order quantity, interpreting a chart and its main limitation. | 16 |
| Just In Time and inventory management systems | Recall questions on just-in-time production and its effects on cash flow, costs and quality, the supplier relationships and quality it requires, its risks, just-in-case inventory, and how better data improves inventory management. | 13 |
| The stages of supply chain management | Recall questions on supply chain management and the planning, sourcing, production, delivery and returns stages, choosing suppliers, reverse logistics, and how a failure at one stage affects the whole chain. | 14 |
| Logistics: procurement, transport and reliability of supply | Recall questions on logistics and procurement, calculating purchasing savings, short and long supply chains, improving reliability of supply, road, rail, sea and air transport and their costs, and timing in logistics. | 15 |
| Key performance indicators in operations | Recall questions on key performance indicators in operations, calculating defect, wastage and on-time delivery rates and average delivery time, and why indicators need comparisons and should not be read singly. | 13 |
How the guide is worked
Answering a question from memory stores it far better than reading the answer again. The guide runs that as a fixed procedure on one subtopic at a time, about twenty minutes a session.
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Step 1 · Closed book
Cover the answers. Work through one subtopic and write down what you can. Leave blanks where you have nothing.
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Step 2 · Open book
Go back to the top. Read each printed answer and write it out in full, including the ones you had right.
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Step 3 · Closed book again
Same questions, same order, from memory. The gap between pass one and pass three is the session result.
Read the full method, the return schedule and the research behind it.
Nearby topics
OCR A-Level Business H436 Active Recall Guide
Every topic, not just this one. 2,383 questions with their answers.