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  1. Home
  2. Subjects
  3. Business
  4. AS Business

AS Business7131

SpecificationPlanning resourcesTeaching resourcesAssessment resourcesKey dates
1.0 Introduction
2.0 Specification at a glance
3.0 Subject content
3.1 What is business?
3.2 Managers, leadership and decision making
3.3 Marketing management
3.4 Operational management
3.5 Financial management
3.6 Human resource management
4.0 Scheme of assessment
5.0 General administration
Annex: quantitative skills in business
AS and A-level Business Specifications for first teaching in 2023

AS and A-level Business Specifications for first teaching in 2023

13 Jun 2023

PDF | 782.2 KB

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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

3.4.2 Analysing operational performance

3.4.3 Making operational decisions to improve performance: increasing efficiency and productivity

3.4.4 Making operational decisions to improve performance: improving quality

3.4.5 Making operational decisions to improve performance: managing inventory and supply chains

3.3 Marketing management
3.5 Financial management

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 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 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