1. Production

Question 1

What is PRODUCTION?

Answer 1

Production is how a company makes its INPUTS such a RAW MATERIAL, ENERGY, LABOUR and changes this into PRODUCT or SERVICES

Question 2

What are the types of PRODUCTION?

Answer 2

1. JOB production used for the EXACT REQUIREMENTS OF THE CUSTOMER (used for one-off items - often used by small companies)

eg garden design - flowers for a wedding - kitchen to a customers specifications

2. FLOW production

Used for producing MANY ITEMS
USED when items move CONTINUOUSLY from one stage of production to another

eg producing 1,000,000 of Innocent drinks

ADV: huge number of items - cheaper per item

DISADB: large SET-UP costs of huge production line - might not be FLEXIBLE

Question 3

What is SPECIALISATION?

Answer 3

Specilisation is when people FOCUS on a particular task - ADV they become VERY GOOD & FAST at the job but DISADV they may become bored

Question 4

What is LEAN PRODUCTION?

Answer 4

Lean production aims to MINIMISE waste - saves ££ and RESOURCES

How to minimise waste

Reduce production of FAULTY ITEMS - have to remake - costing ££

Better STOCK CONTROL - items might get damaged - costing ££ - warehouse costs storing car panels

Question 5

What is JIT production?

Answer 5

JIT is:

. Making an item when the CUSTOMER PLACES THE ORDER
. Keeping as little STOCK as possible - so don’t tie up ££ in STOCK & don’t have to pay WAREHOUSE costs
. STOCK can get damaged over time
. Items are ordered JUST IN TIME to be used
. DISAD: suppliers may not be be able to send the parts quickly - eg can’t produce LAPTOPS if can’t get the MICROCHIPS

Question 6

What is KAIZEN?

Answer 6

Kaizen means CONTINUOUS IMPROVEMENT
. employees think how they can improve things from what they did yesterday
. Company needs to MOTIVATE staff so they will come up with new ways of doing things

Question 7

Flow Productions helps a business to become

Answer 7

Flow Production = MORE EFFICIENT

DISADVANTAGES

• less flexible because every product is the same
• demotivating because can doing the same task can become boring over time - might lead to mistakes

Question 8

LEAN production …

Answer 8

LEAN Production = REDUCES WASTE

Question 9

Why might a company have a large amount of STOCK?

Answer 9

A company might hold stock because it got a PURCHASING ECONOMIES OF SCALE - got a DISCOUNT because thge company bought a LOT

eg it bought 125,000 scarves at 50p each instead of buying 50,000 at £1.25 each (the unit cost is much lower if you BUY IN BULK - buy at lot)

Question 10

What is Just In Case production?

Answer 10

Just in Case Production is:

. Companies hold some stock in case they might be needed
. DISA have to store stock - it costs ££ and space

Question 11

What approach does ZARA have:

Answer 11

ZARA order smaller amounts of STOCK and OFTEN using JIT because:

. Zara has to respond quickly to changes in fashion
. Zara doesn’t what to have a lot of outdated stuff that it can’t sell - wastes ££

Question 12

What is Procurement/Purchasing?

Answer 12

Procurement/Prechasinsing is to do with:

.  selecting the correct SUPPLIER of your goods/services to your company eg getting your tractor from JCB or John Deere
.  Getting the right PRICE
.  Getting favourable payment terms eg pay after 30 DAYS from the date of the invoice
.  What DISCOUNTS do they offer
.  Can they deliver QUICKLY
.  Can they deliver RELIABLY?
.  What is their QUALITY like?
.  
.

Question 13

What is the SUPPLY CHAIN?

Answer 13

Supply Chain is:

. All companies/people involved getting the PRODUCT to the CUSTOMER

. eg - school text books - involved in the supply chain

Teachers placing the order - supplier ordering the book from the printers - books being delivered to the main warehouse - the delivery people taking books to school - school staff checking off the books and delivering to the teachers

Question 14

How can a company makes sure it has a good SUPPLY CHAIN/PROCUREMENT/PUCHASING?

Answer 14

A good SUPPLY CHAIN q company should:

. Get good QUALIITY and GOOD VALUE

.

Question 15

PROCUREMENT is when a company BUYS something

Question 16

ICT system in a modern restaurant like Yo! Sushi. What is one benefit of using up-to-date tech in its restaurants

Answer 16

Use up-to-date tech in modern restaurant - why?

• It’s TARGET MARKET is the young/tech aware customer who expect a quick efficient service
• TARGET MARKET attracted to wiki & USB & would go elsewhere if this wasn’t offered
• QUICK SERVICE to customer as it is LINKED to the KITCHEN and TILLS
• STOCK of FOOD and SALES of DISHES can be MONITORED using the same SYSTEM
• Customers can be SERVED QUICKLY - so the restaurant can SERVE many people a day - INCREASING PROFITS

Question 17

Social Media - a good way to IMPROVE CUSTOMER SERVICE?

Answer 17

Social Media - is this a good way to IMPROVE CUSTOMER SERVICE

• Social Media is a CHEAP form of COMMUNICATION a LARGE NUMBER of PEOPLE - keeps costs low
• Target Market would expect to use socials - but need to keep up-to-date with new tech
• FEEDBACK from customers is INSTANT & things can be changed QUICKLY if there is a problem
• If any problems shown to be DEALT = build customer loyal - repeat visits & increased profits
• encourage FUTURE customers if issues are dealt with
• might encourage NEGATIVE feedback which might be damaging to the BRAND

Question 18

Delegate to employees how the restaurant is run:

Answer 18

ADVANTAGES of DELEGATION

• swap shifts - get a good WORK/LIFE BALANCE - motivate to work hard & efficiently
• may come up with NEW WAYS of WORKING - save company £ & make it more efficient
• LESS SUPERVISORS are needed - more efficient & safe money
• The best person may not be doing to right job

-

Question 19

LEAN production using JIT

Answer 19

LEAN production - reducing WASTE

• only order food that is NEEDED - save £ and make company more efficient
• not have an in reverse if problem

Question 20

JOB PRODUCTION

Answer 20

• Meet the customers INDIVIDUAL NEEDS

- Might take LONGER TO PRODUCE as starting from scratch