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Resource Management

  • 4 subtopics
  • 18 things to know
  • Paper 2 and Paper 3

What Resource Management covers

Resource management is the fourth section of Theme 2. It covers how a business actually makes what it sells, how hard its capacity is working, how it holds stock without tying up cash or running out, and how it keeps quality high enough to protect the brand.

Where it is assessed

Paper 2 and Paper 3

Theme 2, examined on Business activities, decisions and strategy, then the pre-released synoptic paper.

Check the Pearson Edexcel specification ↗

The 4 subtopics

Each one has its own page.

What you need to know

Answer each one before you reveal it.

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Key term

Distinguish job, batch and flow production.

Process

How does higher productivity affect competitiveness?

Process

What determines how efficiently a business produces?

Key term

Under what circumstances is labour intensive production typically suited?

Numbers

How is capacity utilisation calculated?

Numbers

How does capacity utilisation affect unit costs and profit?

Evaluation

How can a business raise capacity utilisation, and what does running near full capacity cost?

Numbers

Explain how developing new products or entering new markets can improve capacity utilisation.

Key term

What is buffer stock, and what is the reorder quantity?

Evaluation

What are the risks of holding too much or too little stock?

Key term

What is just in time stock management, what are its benefits, and what does it demand of suppliers?

Evaluation

What are the benefits of waste minimisation for a business?

Evaluation

How does lean production create competitive advantage through quality?

Key term

How does quality assurance differ from quality control?

Key term

What are quality circles and Total Quality Management?

Evaluation

What is Kaizen, and how does quality management build competitive advantage?

Key term

How can quality management reduce business costs?

Numbers

State the capacity-utilisation formula.

Take Resource Management further

The same content, four other ways.

Commonly confused

Pairs that lose marks when they are blurred together.

  • Job production vs Batch production

    Job production: one customised item completed at a time. Batch production: a specified quantity of identical items completed together.

  • Quality control vs Quality assurance

    Quality control: inspection that detects faults in completed output. Quality assurance: systems designed to prevent faults throughout production.

Questions from this topic

Each one with the model answer underneath.

  1. 1

    What is job production?

    Model answer

    A method where individual, unique products are made one at a time to meet specific customer requirements.

  2. 2

    What is batch production?

    Model answer

    A method where a group of identical products moves through each stage of production together before the next batch begins.

  3. 3

    What is flow production?

    Model answer

    A method of continuous production where products move along a production line through sequential stages without stopping.

  4. 4

    What is cell production?

    Model answer

    A method where the production process is divided into self-contained units (cells), each responsible for completing a significant part of the finished product.

  5. 5

    Define productivity.

    Model answer

    How much output each unit of input yields in a given period.

  6. 6

    What does the 'input' in the productivity formula typically refer to?

    Model answer

    The quantity of resources used in production, such as labour hours, number of workers, or units of capital employed.

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Six ways to work the same material.

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Meeting Customer Needs
The Market
Marketing Mix and Strategy
Managing People

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Net gain = − initial cost.
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AGross profit equals revenue minus cost of sales.
BOperating profit equals gross profit minus operating expenses.
CNet profit equals operating profit minus interest and taxation.

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Assemble a full-mark answer from its marking points, in the order an examiner wants them.

Tariff means a tax imposed on imported goods.
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Resource Management revision questions

What does Resource Management cover in Edexcel A-Level Business?
4 subtopics: production, productivity and efficiency, capacity utilisation, stock control and quality management. Each one has its own page with questions and model answers.
How is Resource Management organised?
By the Edexcel 9BS0 specification, subtopic by subtopic, so it matches the order you are taught it in.

Every question in Resource Management, on a schedule.

Attempt a question from memory, write the correct version, then attempt it again. Levo records the jump between your first attempt and your last, and brings each question back on the day you are due to forget it.

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