Revision notes written to the specification, with examiner tips and the required practicals. Every point here has flashcards in the Stickwise app.
Production processes
A business must choose how to organise its production, and the three main methods are job, batch and flow production. Each method suits a different level of demand and a different amount of customisation, and each brings its own balance of cost, speed and flexibility.
Job productionJob production makes a single, unique product to one customer's exact order, such as a wedding cake or a ship. It is highly skilled and flexible, but it is slow and has a high cost per unit.
Batch productionBatch production makes a group of identical products together, with the whole batch moving through one stage of the process before the next, such as a batch of bread or a batch of clothing. It allows some product variety, but it needs changeover time between batches.
Flow productionFlow production is continuous, automated production of identical, standardised products moving along a production line, such as cars or canned drinks. It gives low unit costs, but it is inflexible and can be demotivating for workers.
The choice between the three methods depends on several factors.
The level of demand for the product.
How much customisation customers want.
The capital available for machinery and equipment.
The level of technology the business can access.
Workers in job production often use a wide range of skills and see a whole finished product, which many find satisfying. In flow production, tasks are often repetitive and narrow, which can be demotivating.
🎯 Examiner tip: The longer questions on production, often worth nine marks, usually ask a business to recommend or justify one method of production. These questions are marked in levels: marks are available for explaining the relevant theory, for applying it to the business in the case study, and for a final evaluation. A top-level answer ends with a clear judgement, not just a list of points for and against.
Procurement & logistics
Procurement is the process of sourcing and obtaining the raw materials, components and services a business needs from its suppliers, so that production can go ahead reliably and at a good price. Once materials are obtained, they move through the supply chain, the sequence of stages a product passes through from raw materials to the manufacturer, then the wholesaler and the retailer, before it reaches the final consumer.
Buffer stockBuffer stock is the minimum level of stock a business keeps in reserve. It is held to avoid running out of stock if demand suddenly rises or a delivery is delayed, although holding it adds storage costs.
Just-in-time (JIT) productionJust-in-time (JIT) production orders stock and materials to arrive exactly when they are needed, so that little or no buffer stock is held. This cuts storage costs, but it relies on dependable suppliers, since a single late delivery can stop production completely.
🎯 Examiner tip: Buffer stock and just-in-time production sit at opposite ends of the same decision. Holding buffer stock avoids running out of stock but adds storage costs, while just-in-time cuts storage costs but leaves production vulnerable to any delay in delivery. A strong answer names this trade-off rather than describing only one side of it.
Quality
Quality means a product or service is fit for purpose and meets customer expectations consistently, without faults.
Quality controlQuality control checks the quality of output at the end of the production process, rejecting or reworking faulty items before they reach customers.
Quality assuranceQuality assurance is a system where every worker checks their own work at every stage of production, aiming to prevent faults before they happen rather than catching them at the end.
The key difference is timing: quality control acts at the end of the process, while quality assurance is built into every stage to stop faults occurring in the first place.
🎯 Examiner tip: Quality control and quality assurance are often confused because both aim for the same outcome. The mark scheme rewards answers that keep the two separate: quality control catches faults at the end of production, and quality assurance is designed to prevent faults happening at any stage.
Customer service
Good customer service builds customer loyalty and encourages repeat purchases and positive word of mouth, giving a business a competitive advantage over its rivals.
Businesses provide customer service in several ways.
Face-to-face, for example in a shop or showroom.
Over the telephone.
Through online support, such as live chat or email.
After-sales service is support given to a customer once they have bought a product. Examples include a guarantee or warranty, and a technical support helpline.
Poor customer service leads to lost customers, a damaged reputation and negative reviews, which can reduce sales and make it harder for the business to compete.
🎯 Examiner tip: A question that asks whether a business should invest in better customer service is asking for a justified recommendation, not a description. The strongest answers weigh the cost of improving service against the value of loyal, repeat customers, and then reach a clear decision on balance.
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