Business Studies (AS)·Production management · NSSCAS 3.6
Capacity utilisation, outsourcing & quality
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How busy is a factory really? In this lesson you will measure capacity utilisation with a formula you can use in the exam, and work out what it means when a business runs too empty or too full. You will decide when outsourcing a job to another firm is smart and when it is dangerous. Then you will separate quality control from quality assurance — two ideas examiners love to test and learners love to mix up. Bring a calculator: there is a full write-on calculation waiting for you.
What you'll learn in this lesson
By the end you should be able to (NSSCAS Business Studies (AS) 3.6):
- explain how capacity utilisation can be measured
- assess implications of operating under or over maximum capacity
- discuss the advantages and disadvantages of outsourcing in a specific context
- explain quality in terms of what the consumer demands
- discuss the importance of quality assurance
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Miss Maria and Mike talk through the whole topic — with the figure and working drawn live.