Students should consider the following throughout this section of the specification:
how developments in technology are affecting decision making and activities in operations (eg more online businesses, better links with customers, suppliers, inventory control, automation and robotics)
ethical and environmental influences on operations decisions
market conditions and competition
how decisions in operations improve the competitiveness of a business
the interrelationship between operational decisions and other functions.
3.4.1 Setting operational objectives
Content
Additional information
The value of setting operational objectives
Operational objectives include:
costs
quality
speed of response
flexibility
environmental objectives
added value.
3.4.2 Analysing operational performance
Content
Additional information
The interpretation, calculation and use of operations data in operational decision making and planning
Students should be able to calculate:
labour productivity
unit costs (average costs)
capacity
capacity utilisation.
3.4.3 Making operational decisions to improve performance: increasing efficiency and productivity
Content
Additional information
The importance of capacity
The importance of capacity should include how to utilise capacity efficiently.
The importance of efficiency and labour productivity
The importance of efficiency and labour should include:
how to increase efficiency and labour productivity
difficulties increasing efficiency and labour productivity.
The benefits and difficulties of lean production
Lean production should include 'Just in Time' operations vs 'Just in Case'.
How to choose the optimal mix of resources
The mix of resources should include an understanding of labour and capital intensive processes.
How to use technology to improve operational efficiency
3.4.4 Making operational decisions to improve performance: improving quality
Content
Additional information
Methods of improving quality
Methods of improving quality should include quality assurance vs quality control.
The benefits and difficulties of improving quality
The consequences of poor quality
3.4.5 Making operational decisions to improve performance: managing inventory and supply chains
Content
Additional information
How to manage supply to match demand and the value of doing so
Ways of matching supply to demand include:
outsourcing
use of temporary and part time employees
producing to order.
Influences on the amount of inventory held
Inventory control should include:
interpreting inventory control charts
lead time
re-order levels
buffer level of inventory
re-order quantities.
Influences on the choice of suppliers
How to manage the supply chain effectively and efficiently and the value of this