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GCSE Business · key term
Resources or activities that add unnecessary costs or delays without adding value for the customer, such as excess stock, waiting time or defective products.
Used by AQA and OCR
Paper 1
Revise: Efficiency in ProductionEfficiency means using these resources with as little waste as possible while maintaining the required quality. A business can become more efficient by producing the same output with fewer resources, or by producing more usable output from the same resources.
Paper 2
Materials left over or discarded during production or consumption.
Explain a chain of effects: less waste → lower production costs → the opportunity to lower prices or increase profit margins.
Lean production is an approach to reducing waste, not an alternative production method to job or flow production.
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Businesses depend on the environment for raw materials, water and energy. Their activities can also damage it: factories may release pollutants, deliveries create traffic and emissions, and discarded packaging adds to waste. Environmental considerations therefore affect decisions about what to produce, which materials to buy, how to manufacture products and how to transport them.