IB Business Management
Unit 5: Operations Management – Scheme of Work
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Unit 1: Business Organisation and Environment – Scheme of Work
UNIT 5: OPERATIONS MANAGEMENT
UNIT 5: OPERATIONS MANAGEMEN T – THEORY OF KNOWLEDGE QUESTIONS
1
Can a business plan for a crisis?
2
Can one make an argument that the more people’s needs and wants are met, the more difficult
innovation is?
3
Environmental costs of production are often referred to as “externalities” as they harm third parties. How
does our formulation of problems affect our sense of responsibility for solving them?
4
Is a quality product always more expensive to manufacture or buy than a mediocre product? How
does time perspective affect our assessment of such statements?
5
Is there a difference between a product that consumers perceive to be of good quality and one that
businesses know is? What ethical dilemmas does the information advantage businesses have over
consumers pose?
Small group work: ONE question: 10 minute presentation.
Topic
GECCIS Focus
5.1
Ethics
Every business decision has moral implications. These consequences can be significant
for internal and external stakeholders and the natural environment.
5.2
Innovation
Incremental or radical improvements to a business idea, or the generation of new ideas
in relation to the final product, service or process, are the result of internal or external
influences.
IB Business Management
Unit 5: Operations Management – Scheme of Work
For many business organisations, a key challenge is bringing in the ‘new’ and managing
the process of improvement in a sustainable way.
5.3
Culture
Every organisation operates in a range of environments in which its role may be
interpreted differently. These expectations affect planning, decision-making and
strategy implementation. Within an organization, values and backgrounds influence
what stakeholders focus on and how they work.
5.4
Globalisation
A wide range of international forces (such as the increasing social, cultural,
technological and economic integration) influence business organizations. In turn,
business organizations shape these forces.
Many business organisations operate across national boundaries. Even local businesses
and consumers are influenced by global forces.
5.5
Strategy
Strategy refers to the significant long-term planning decisions that organisations make
in order to meet the needs and wants of their stakeholders. Strategy is about asking
questions: what, why, when, how, where and who?
5.6
Innovation
Incremental or radical improvements to a business idea, or the generation of new ideas
in relation to the final product, service or process, are the result of internal or external
influences.
For many business organisations, a key challenge is bringing in the ‘new’ and managing
the process of improvement in a sustainable way.
5.7
Change
Competition, new technologies and markets, and trends in consumer behaviour lead
business organisations to adapt their objectives, strategies and operations.
Success emerges from the ability to research and respond to signals in both the internal
and external environment.
TOPIC 4: MARKETING
Time (weeks)
Learning activities
Assessment
Outline operations management and its
relationship with other business functions
Simpson and Smith:
Textbook: pp 460-468
IB Business Management:
Explain the role of operations management in
organisations producing goods and/or services
PPT presentation and
summary notes
Content
5.1 The Role of Operations Management
1 week
Evaluate operations management strategies
and practices for ecological, social (human
resource) and economic sustainability
Textbook questions:
Revision checklist 1-5.
Videos
Flash cards
Classroom games –
Kahoot!
Activity A
Exam practice question
Quizzes
Topic Test
McDonald’s case study
question – Ethics.
IB Business Management
Unit 5: Operations Management – Scheme of Work
Choice of one of the
Economist
sustainability articles
– comment
5.2 Production Methods
1 week
Explain the following production methods:

Job/customised production

Batch production

Mass/flow/process production

Cellular manufacturing
Evaluate the most appropriate method of
production for a given situation
Simpson and Smith:
Textbook: pp 469-479
PPT presentation and
summary notes
Textbook questions:
Revision checklist 1-7.
Flashcards
Classroom games –
Kahoot!
IB Business Management:
Activities A – D
Exam practice question
Quizzes
Topic Test
McDonald’s case study
question – Innovation.
Corus or Leyland
Trucks case study –
group work
5.3 Lean Production and Quality Management (HL only)
1 week
State the following features of lean production:


Less waste
Greater efficiency
Explain the following methods of lean
production:
Simpson and Smith:
Textbook: pp 480-500
Exam practice question
Topic Test

Continuous improvement (kaizen)

Just-in-time (JIT)
Videos

Kanban
Flash cards

Andon
Classroom games –
Kahoot!
Outline features of quality control and quality
assurance
Explain the following methods of managing
quality:

Quality circle

Benchmarking

Total quality management (TQM)
Evaluate the impact of lean production and
TQM on an organisation
Activities A – E
PPT presentation and
summary notes
Textbook questions:
Revision checklist 120.
Analyse features of cradle to cradle design and
manufacturing
IB Business Management:
Quizzes
McDonald’s case study
question – Culture.
IB Business Management
Unit 5: Operations Management – Scheme of Work
Analyse the importance of national and
international quality standards
5.4 Location
1 week
Explain reasons for a specific location of
production
Simpson and Smith:
Textbook: pp 501-516
Evaluate the following ways of reorganising
production, both nationally and internationally:
PPT presentation and
summary notes
Exam practice question
Topic Test

Outsourcing/subcontracting

Offshoring
Textbook questions:
Revision checklist 110.

Insourcing
Videos
IB Business Management:
Activities A and B
Quizzes
McDonald’s case study
question – Globalisation.
Flash cards
Classroom games –
Kahoot!
Zurich or BSI case
study – group work
5.5 Production Planning (HL only)
1 week
Explain the supply chain process
Distinguish between JIT and just-in-case (JIC)
Simpson and Smith:
Textbook: pp 517-533
IB Business Management:
Activities A – D
PPT presentation and
summary notes
Exam practice question
Topic Test
Lead time
Textbook questions:
Revision checklist 113.

Buffer stock
Videos

Re-order level
Flash cards

Re-order quantity
Classroom games –
Kahoot!
Prepare and analyse stock control charts based
on the following:

Calculate and comment on a capacity
utilisation rate
Calculate and comment on a productivity rate
Quizzes
McDonald’s case study
question – Strategy.
McDonald’s or Aldi
case study – group
work
Calculate and comment on the cost to buy
(CTB)
Calculate and comment on the cost to make
(CTM)
5.6 Research and Development (HL only)
1 week
Evaluate the importance of research and
development for a business
IB Business Management:
IB Business Management
Unit 5: Operations Management – Scheme of Work
Analyse the importance of developing goods
and services that address customers’ unmet
needs (of which the customers may or may not
be aware)
Simpson and Smith:
Textbook: pp 534-543
Explain the following types of innovation:
PPT presentation and
summary notes

Product
Textbook questions:
Revision checklist 1-7.

Process
Videos

Positioning
Flash cards

Paradigm
Classroom games –
Kahoot!
Distinguish between adaptive creativity
(adapting something that exists) and innovative
creativity (creating something new)
Discuss how the pace of change in an industry,
organisational culture and ethical
considerations may influence research and
development practices and strategies in an
organisation
Activities A
Exam practice question
Quizzes
Topic Test
McDonald’s case study
question – Innovation.
Why Culture is Key
article – choose one
for comment
Global Biz podcast comment
5.7 Crisis Management and Contingency Planning (HL only)
1 week
Distinguish between crisis management and
contingency planning
Simpson and Smith:
Textbook: pp 544-549
Explain the following factors that affect
effective crisis management:
PPT presentation and
summary notes

Transparency

Communication

Speed

Control
Explain the following advantages and
disadvantages of contingency planning for a
given organisation or situation:

Cost

Time

Risks

Safety
Formative Assessment:
Unit 5: Operations Management – Formal assessment test
Textbook questions:
Revision checklist 1-7.
Videos
Flash cards
Classroom games –
Kahoot!
The Economist article
- comment
IB Business Management:
Activity A
Exam practice question
Quizzes
Topic Test
McDonald’s case study
question – Change.