3.3 - Business operations - Summary test 1

Business operations is the department in a business that is responsible for:

• Marketing

• Finance

• Production of goods/provision of services

• Human Resources

Which of the following products is likely to be made using job production?

• Heinz baked beans

• Cadburys Dairy Milk

• Land Rover car

• Made to measure wedding dress

Which of the following is a feature of flow production?

• Products are produced continually on a production line

• Products are one-off meeting customer needs exactly

• Products are made in small identical groups

• Cost of producing one unit is high

A benefit to a business of introducing lean production methods is that:

• Unit costs should be minimised in the long term

• New processes will be easily implemented

• Training costs will be low

• All staff will be happy to take on additional responsibilities

Which of the following stock control methods would involve frequent deliveries?

• Flow production

• Just in case

• Job production

• Just in time

A business that becomes more streamlined as a result of

effective supply chain management is said to be running more:

• Bureaucratically

• Expensively

• Effciently

• Autocratically

Which of the following is a benefit to a business of minimising waste in its supply chain?

• Lower unit costs

• Higher labour turnover

• Higher revenue

• Purchasing economies of scale

Which of the following is a direct benefit of having an efficient logistics department?

• Products arrive exactly when needed

• Labour productivity will reduce

• Efficiency will be minimised

• Staff motivation will increase

Total quality management aims to:

• Give production line staff minimal say in the level of quality standards

• Check quality standards at the end of the production line

• Ensure that quality is the responsibility of everyone in an organisation

• Ensure a single person/single team is responsible for quality

An advantage to a business of asking customers to complete on line surveys regarding customer services is that:

• An unbalanced view of quality standards may be gained

• Low response rate

• Cost effective to set up

• Incentive to complete the surveys may need to be offered