Explain job, batch and flow production methods
• Describe the main features of different production methods
• Explain the advantages of the different methods
• Select and justify methods appropriate to a given situation

Understand economies and diseconomies of scale
• Explain the concepts of economies and diseconomies of scale [theoretical knowledge NOT required]
• Understand the reasons why economies and diseconomies occur
• Identify examples of economies and diseconomies of scale

• Identify and explain ways of implementing lean production methods

State and explain the cost structure of a business
• Demonstrate understanding as to why the process of production generates costs
Classify costs into fixed and variable/direct/indirect
• Identify examples of different types of costs using the fixed and variable classification

Explain, interpret and use a simple break-even chart
• Construct a simple breakeven chart
• Interpret a given chart and use it to analyse a situation
• Show understanding of the limitations of a break even chart

• Understand the concept of quality control
• Explain why quality control matters to a business

Show understanding of the main factors influencing a firm’s location and relocation decisions
• Identify and explain factors relevant to the location decisions of a manufacturing business
• Identify and explain factors relevant to the location of a service based business
• Show awareness of factors that a business considers in determining which country to locate itself
• Recommend and justify an appropriate location for a business in a given situation

Understand the concept of productivity
• Awareness of the concept of turning resource inputs into an output
Awareness of methods of improving efficiency e.g. automation, newtechnology
• Show awareness of the implication of change for production methodsand labour skills