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Operations Management (A Level)

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  Cambridge International AS & A Level Business (9609)

Operations Management (A Level)

The big idea: Strategic operations decide where and how big to operate, how to guarantee quality, and how to run lean.

Summary — What This Chapter Covers
  • Location (local, national, international) and scale: economies and diseconomies of scale.
  • Quality control vs quality assurance; TQM; benchmarking.
  • Operations strategy: IT and AI, ERP, lean production (kaizen, quality circles, cell production, JIT), project management and critical path analysis.
1. Location and Scale
Location

Where and how big

Location decisions weigh quantitative factors (costs, revenues) and qualitative ones (labour skills, infrastructure). Economies of scale cut average cost as output grows; diseconomies (communication, motivation) raise it.

2. Quality Management
Quality

Control vs assurance

Quality control inspects finished output; quality assurance builds quality into every stage; TQM makes quality everyone's responsibility.

3. Operations Strategy
Lean and CPA

Lean production and critical path

Critical path analysis finds the longest path of dependent activities; activities on it have zero total float. Total float = latest finish − earliest start − duration.

Worked Example
Memorise
Economies of scale

Lower average cost

TQM
Lean
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