Business operations, marketing and finance

1. Job production means:

1. Making large batches
2. Making one-off, unique items to order
3. Continuous mass production
4. Assembly line production

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B: Making one-off, unique items to order. Examples include a wedding dress or a bespoke building.

2. What is just-in-time stock control?

1. Holding large buffer stocks
2. Ordering stock to arrive only as it is needed, minimising storage costs
3. Never ordering stock
4. Buying in bulk only

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B: Ordering stock to arrive only as it is needed, minimising storage costs. It reduces costs but relies on dependable suppliers.

3. What is at the top of Maslow's hierarchy of needs?

1. Safety
2. Esteem
3. Self-actualisation
4. Physiological needs

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C: Self-actualisation. It represents reaching your full potential.

4. Which is a financial method of motivation?

1. Job rotation
2. Commission and bonuses
3. Praise
4. Job enrichment

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B: Commission and bonuses. Non-financial methods focus on the nature of the work itself.

5. What does a wide span of control mean?

1. A manager supervises few people
2. A manager supervises many people directly
3. A tall structure
4. A long chain of command

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B: A manager supervises many people directly. Flat structures typically have wider spans of control.

6. What does 'quality assurance' mean, compared with quality control?

1. Checking finished products only
2. Building quality checks into every stage of production, not just the final product
3. Ignoring product quality
4. Reducing production speed only

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B: Building quality checks into every stage of production, not just the final product. This tends to catch problems earlier and reduce waste.

7. A bakery bakes 300 identical rolls in one go, cleans the ovens, then bakes 300 sourdough loaves. Which production method is this?

1. Cell production
2. Flow production
3. Batch production
4. Job production

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C: Batch production. Batch production makes groups of similar items one batch at a time, then switches to the next product. Job production makes one-offs. Flow production runs continuously on a standardised line.

8. Which is the main advantage of flow production for a car-parts maker?

1. Products can be changed quickly and cheaply
2. It needs little capital investment
3. Each item can be fully customised
4. Low cost per unit from large-scale, standardised output

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D: Low cost per unit from large-scale, standardised output. Flow production is continuous and standardised, so high volumes spread fixed costs and give a low unit cost. The drawbacks are high set-up cost and low flexibility.

9. A firm stops relying on checking finished goods and builds quality checks into every stage. Which is the most likely benefit?

1. Quality is checked only once, at the end
2. Fewer staff need training
3. Stock levels must increase
4. Fewer defects and returns, helping its reputation

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D: Fewer defects and returns, helping its reputation. Quality assurance builds quality into every stage, so faults are prevented rather than found late. This means fewer defective items, fewer returns, less waste and a stronger reputation.

10. A pizza chain uses just-in-time ordering for its ingredients. What is its biggest risk?

1. Ingredients going out of date in the stockroom
2. A late supplier delivery stops production
3. Cash tied up in large amounts of stock
4. High storage costs for unused stock

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B: A late supplier delivery stops production. JIT keeps stock very low, so the firm depends on reliable suppliers. One late delivery can halt production. High storage costs, tied-up cash and waste are risks of holding large stock.