AS and A-level Business Specifications for first teaching in 2023
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3.4 Operational management
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:
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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:
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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:
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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:
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Influences on the amount of inventory held | Inventory control should include:
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Influences on the choice of suppliers | |
How to manage the supply chain effectively and efficiently and the value of this | |
The value of outsourcing |