AS Business₇₁₃₁

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 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.

Content	Additional information
The value of setting operational objectives	Operational objectives include: costs quality speed of response flexibility environmental objectives added value.

Content

Additional information

The value of setting operational objectives

Operational objectives include:

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.

Content

Additional information

The interpretation, calculation and use of operations data in operational decision making and planning

Students should be able to calculate:

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

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

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
The value of outsourcing