UNIT 5 - OPERATION MANAGEMENT BUSINESS QUESTIONS WITH CORRECT ANSWERS
LATEST UPDATE 2025/2026
Operations Management - Answers The part of an organization that is concerned with providing
right goods and services in the right quantities and at the right quality level in a cost-effective
and timely manner
Labour intensive - Answers Production methods that make more use of human effort relative to
machinery
capital intensive - Answers Production methods that make more use of machinery relative to
human effort
production process - Answers The method of turning factor inputs into outputs by adding value
in a cost-effective way
Value Added - Answers Occurs during the production of a good or service because the value of
the output is greater than the costs of production. created through the effective management of
business functions.
Types of operations (production) methods - Answers Job production
Batch production
Flow production and mass production
Mass customisation
Job production - Answers Producing a one-off item specially designed for the customer
Batch production - Answers Producing a limited number of identical products - each item in the
set passes through one stage of production before passing onto the next stage
Flow production - Answers Producing items in a continually moving process, with one product
moving to the next step once it has passed the previous step
Mass production - Answers Producing large quantities of a standardised product
Mass customisation - Answers The use of flexible computer-aided production systems to
produce items that meet individual customer requirements at mass production cost levels
Factors influencing choice of production method: - Answers 1. Size of the market
2. The amount of capital available
3. The availability of other resources
4. Market demand for products adapted to customer requirments
,Impact of changing production methods from Job to Batch - Answers Finance:
- cost of equipment needed to handle large numbers in each batch
- additional working capital needed to finance high levels of stocks and work in progress
Human Resources:
- less emphasis placed on individual's craft skills
Marketing:
- can no longer promote product as being 'customised to each consumer'
- may have to promote the benefits of lower prices and consistent quality
Impact of changing production methods from Batch to Flow - Answers Finance:
- cost of equipment needed for flow production
- any production delays during the change-over period may impact cash flow
Human Resources:
- risk of low motivation and boredom if traditional line production techniques are used
Marketing:
- mass production requires mass marketing so market research will be essential to identify
largest market segments
- accurate estimates of future demand to ensure that output matches demand
- promotion and pricing decisions will have to be geared towards a mass marketing approach -
not niche marketing, so the orientation of the business may have to change
Productivity - Answers Measures the level of labour and/or capital efficiency of a business by
comparing its level of inputs with the level of its output. a measure of efficiency
Specialisation - Answers The division of a large task or project into smaller tasks that allow
individuals to concentrate on one or two areas of expertise. Specialisation is an essential part of
mass production.
Standardisation - Answers Producing an identical or homogeneous product in large quantities,
such as printing a particular magazine, book or newspaper
Features of job production - Answers Single one-off items
Higher skilled workers
, matches customer demand
Features of batch production - Answers Group of identical products pass through each stage
together
can be customisable
Machine and labour flexibility needed
Features flow/mass production - Answers Mass production of standardised products
Produced in high quantities
Capital intensive
Capital investment is higher
Efficient
demotivated workforce
Features of mass customisation - Answers Many common components
Flexible and multi-skilled workers
Flexible equipment - often CAM to allow for variations in the product
Meets production demands
Capital investment required.
Main advantages of job production - Answers - Able to undertake specialist projects or jobs,
often with high value added
- High levels of worker motivation
Main advantages of batch production - Answers - Some economies of scale
-Faster production with lower unit costs than job production
-Some flexibility in design of product in each batch
Main advantages of mass/flow production - Answers - Low unit costs due to the constant
working of machines, high labour productivity and economies of scale
- JIT stock management easier to apply than with other methods
Main limitations of job production - Answers - High unit production costs
- Time consuming
LATEST UPDATE 2025/2026
Operations Management - Answers The part of an organization that is concerned with providing
right goods and services in the right quantities and at the right quality level in a cost-effective
and timely manner
Labour intensive - Answers Production methods that make more use of human effort relative to
machinery
capital intensive - Answers Production methods that make more use of machinery relative to
human effort
production process - Answers The method of turning factor inputs into outputs by adding value
in a cost-effective way
Value Added - Answers Occurs during the production of a good or service because the value of
the output is greater than the costs of production. created through the effective management of
business functions.
Types of operations (production) methods - Answers Job production
Batch production
Flow production and mass production
Mass customisation
Job production - Answers Producing a one-off item specially designed for the customer
Batch production - Answers Producing a limited number of identical products - each item in the
set passes through one stage of production before passing onto the next stage
Flow production - Answers Producing items in a continually moving process, with one product
moving to the next step once it has passed the previous step
Mass production - Answers Producing large quantities of a standardised product
Mass customisation - Answers The use of flexible computer-aided production systems to
produce items that meet individual customer requirements at mass production cost levels
Factors influencing choice of production method: - Answers 1. Size of the market
2. The amount of capital available
3. The availability of other resources
4. Market demand for products adapted to customer requirments
,Impact of changing production methods from Job to Batch - Answers Finance:
- cost of equipment needed to handle large numbers in each batch
- additional working capital needed to finance high levels of stocks and work in progress
Human Resources:
- less emphasis placed on individual's craft skills
Marketing:
- can no longer promote product as being 'customised to each consumer'
- may have to promote the benefits of lower prices and consistent quality
Impact of changing production methods from Batch to Flow - Answers Finance:
- cost of equipment needed for flow production
- any production delays during the change-over period may impact cash flow
Human Resources:
- risk of low motivation and boredom if traditional line production techniques are used
Marketing:
- mass production requires mass marketing so market research will be essential to identify
largest market segments
- accurate estimates of future demand to ensure that output matches demand
- promotion and pricing decisions will have to be geared towards a mass marketing approach -
not niche marketing, so the orientation of the business may have to change
Productivity - Answers Measures the level of labour and/or capital efficiency of a business by
comparing its level of inputs with the level of its output. a measure of efficiency
Specialisation - Answers The division of a large task or project into smaller tasks that allow
individuals to concentrate on one or two areas of expertise. Specialisation is an essential part of
mass production.
Standardisation - Answers Producing an identical or homogeneous product in large quantities,
such as printing a particular magazine, book or newspaper
Features of job production - Answers Single one-off items
Higher skilled workers
, matches customer demand
Features of batch production - Answers Group of identical products pass through each stage
together
can be customisable
Machine and labour flexibility needed
Features flow/mass production - Answers Mass production of standardised products
Produced in high quantities
Capital intensive
Capital investment is higher
Efficient
demotivated workforce
Features of mass customisation - Answers Many common components
Flexible and multi-skilled workers
Flexible equipment - often CAM to allow for variations in the product
Meets production demands
Capital investment required.
Main advantages of job production - Answers - Able to undertake specialist projects or jobs,
often with high value added
- High levels of worker motivation
Main advantages of batch production - Answers - Some economies of scale
-Faster production with lower unit costs than job production
-Some flexibility in design of product in each batch
Main advantages of mass/flow production - Answers - Low unit costs due to the constant
working of machines, high labour productivity and economies of scale
- JIT stock management easier to apply than with other methods
Main limitations of job production - Answers - High unit production costs
- Time consuming
