4.2 Operations planning 

In this chapter you will examine :

• the influence of marketing, availability of resources and technology (e.g. CAD and CAM) on operations decisions [Note: Candidates are expected to know what is meant by Computer Aided Design and Computer Aided Manufacture. They must understand how CAD and CAM can be applied in a business, including the advantages and disadvantages.] 

• the need for flexibility with regard to volume, delivery time and specification 

• process innovation – changing current processes or adopting new ways of producing products (e.g. automation/ robotics) or delivering services (e.g. improving workflow) 

• differences between methods – advantages and disadvantages of each method 

• problems of changing from one method to another 

• factors that determine (a) location and (b) relocation: geographic, demographic, legal, political, resources, infrastructure, marketing 

• differences between local, regional, national and international location decisions 

• factors that influence the scale of a business 

• causes and examples of internal/external economies/ diseconomies of scale 

• links between economies/diseconomies of scale and unit costs