ZIMSEC A Level · Business Studies · Form 5, Form 6
Production methods
Job, batch, flow (mass) and cell production. Labour-intensive versus capital-intensive production.
Efficiency and productivity
- Labour productivity = output ÷ number of workers.
- Capacity utilisation = actual output ÷ maximum possible output × 100.
Lean production
Reducing waste of all kinds: just-in-time (JIT) inventory, kaizen (continuous improvement), cell production, and total quality management (TQM). JIT needs reliable suppliers – a risk where transport or supplies are uncertain.
Quality
Quality control (inspection) versus quality assurance (built into every stage). Standards: Standards Association of Zimbabwe (SAZ) and ISO 9001.
Inventory management
Buffer inventory, reorder level = (lead time × usage) + buffer, and economic order quantity. Inventory control charts show maximum, reorder and minimum levels.
Worked example: A shop uses 50 units a day; lead time is 4 days; buffer inventory is 100 units. Find the reorder level.
Reorder level = 50 × 4 + 100 = 300 units
Location
Factors: costs (land, labour, transport), markets, raw materials, infrastructure, power and water, government incentives (Special Economic Zones) and international considerations.
Critical path analysis
Network diagrams identify the critical path – the activities that determine the minimum project duration – and float time for non-critical tasks.
Check yourself
- Output is 8 000 units and maximum capacity is 10 000. Find capacity utilisation.
- Give two benefits of just-in-time.
- What is the critical path?
Show answers
- 80%
- Any two: less storage cost, less waste, less cash tied up, better quality focus.
- The sequence of activities with no float that determines the shortest project time.
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