UNIT 4 - Operations & project management

Question 1

What are the 4 production methods?

Answer 1

• Job production
• Batch production
• Flow production
• Mass customisation

Question 2

What are the 3 scales of operation?

Answer 2

• Land
• capital (includes enterprise)
• Labour

Question 3

Scale of operation: What is economies of scale?

Answer 3

• Reductions in a firm’s (average) costs of production (GOOD) that result from an increase in the scale of operations

Question 4

Define Scale of operation

Answer 4

• The max output that can be achieved using the available inputs (resources) - this scale can only be increased in the long term by employing more of all inputs

Question 5

Scale of operation: What is dis-economies of scale?

Answer 5

• Factors that cause average costs of production to rise when the scale of operation is increased