NAME:……………………………………………………… CLASS:………………….

MODULE 4: 0PERATIONS MANAGEMENT

LO 4.1: APPLY KNOWLEDGE OF METHODS OF PRODUCTION IN DECISION MAKING
Masa Milling Company is a market-led business producing baby food using mass production. The
business uses technology for production, therefore pride itself on meeting customer needs at all
time.

(a) Give two benefits of meeting customer needs

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(b) State two difference between product-led and market-led businesses(4)

PRODUCT-LED BUSINESS MARKET-LED BUSINESS

1. 1.

2. 2.

(c) Discuss whether advantages of using mass production by Masa Milling Company are greater
than the disadvantages. Justify your answer.
Advantage………………………………………………………………………………………………………………………………
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Disadvantage…………………………………………………………………………………………………………………………
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Decision…………………………………………………………………………………………………………………………………
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Justification……………………………………………………………………………………………………………………………
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(d) Explain two factors to consider when choosing a method of production.

1……………………………………………………………………………………………………………………………………………
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2……………………………………………………………………………………………………………………………………………
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(e) Consider the advantages and disadvantages of using technology.

Do you think Masa Milling made a good decision to use technology in production? Justify your
answer.
Advantage……………………………………………………………………………………………………………………………………
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Disadvantage
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Decision………………………………………………………………………………………………………………………………………
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Justification 1
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stification 2
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LO 4.2: APPLY KNOWLEDGE OF PRODUCTION STRATEGIES IN DECISION MAKING

Diaparo (Pty) Ltd manuafactures quality curtains. They use Just In Time production strategy.
During production, quality is checked at each stage of production.

(a) (i) Define the term ‘Production strategies’.

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(ii) Consider the advantages and disadvantages of just in time (JIT) production.

Do you think managers of Diaparo (Pty) Ltd made a good decision to use just in time as a
production strategy?

Advantage……………………………………………………………………………………………………………………………………
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Disadvantage………………………………………………………………………………………………………………………………
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Decision………………………………………………………………………………………………………………………………………
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Justification 1
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Justification2
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(b) Explain the following terms.
(i) Quality control

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(ii) Quality assurance

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(iii) Total Quality management

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(c) (i) What is meant by Costs of quality?

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(ii) Give three costs of quality for Diaparo (Pty) Ltd.
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(d) Explain two ways how a business may reduce costs of quality during production.
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(e) (i) Explain two benefits of research and development in production decisions at Diaparo (Pty)
Ltd
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(ii) List two research institutions in Botswana.

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……………………………………………………………………………………………………………………………………………… (2)

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LO 4.3: DEMONSTRATE KNOWLEDGE OF PRODUCTION ACTIVITIES

(a) Define and State the importance of each of the P’s of production.
(i) Product

Meaning…………………………………………………………………………………………………………………………………
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Importance…………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………….(1)

(ii) Plant

Meaning…………………………………………………………………………………………………………………………………
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Importance…………………………………………………………………………………………………………………………………
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(b) Giving an example of each, explain the following types of costs.

Fixed costs
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Variable costs
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Total costs
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