2.3 Flashcards
2.3 - Procurement and legislation
Procurement - the process of sourcing and buying stock.
Legislation - The organisation/management of the transport of stock.
2.3: A good supplier
- Flexibility with deliveries and payment
- Reliable
- Large discount for large orders (economies of scale)
- High quality goods
- Good prices
- Short lead times (available quickly)
2.3: Why is good supplier good?
- Late deliveries can hold up customers.
- If not reliable, might not get delivery.
- Supplier can influence the branding of business.
- Flexibility can help businesses to meet customer requirements.
2.3: Good quality definition
A product or service which meets the standards set by customers
2.3: Benefits of good quality
- can charge premium prices
- strengthens brand
- can give a USP/ competitive advantage
2.3: How might a business know if quality is lacking?
- Number of complaints from a customer.
- Product refunds or return
- Loyalty of customers
- mystery shoppers
- customer surveys
2.3: Quality control vs quality assurance
Quality control - the product would be tested at the end.
if the product doesn’t meet standards its made again or thrown away.
Quality assurance - tested at each stage of the process
2.3: Advantages and disadvantages of quality control
ADVANTAGES:
- less low quality to products
- cheaper
- less discipline
DISADVANTAGES:
- Too late to correct errors
- products have to be destroyed.
- wastes money.
2.3: Advantages and disadvantages of quality assurance
ADVANTAGES:
- Leads to zero defects
- customers
- focus on process
- target at the whole organisation
- aims for loyal repeat customer
- less wastage
- quality built into the product.
DISADVANTAGES:
- costs more
- takes time
- training
- employ more staff.
2.3: meaning of production
Production is the process of changing inputs such as raw materials and labour into food and services that can be sold.
2.3: Job production
The method of production where one-off specialised products are made (individually) for each customer.
Staff have to know how to do everything.
For example; hair dressers, tailors, architect, wedding dresses.
2.3: Job production Advantages and disadvantages
ADVANTAGES:
- products of high quality
- meet individual needs of customers
- higher prices may be charged as customers are willing to pay more for specifically designed products.
DISADVANTAGES:
- high cost of production
- high labour cost (requires skilled labour).
2.3: Batch production meaning
Mixture of flow and job production
similar products
like paint or cupcakes
2.3: Batch production advantages and disadvantages
ADVANTAGES:
- Meet customer needs
- Machinery used to lower labour cost.
DISADVANTAGES
- Less scope for customising products
- Takes time to switch between machinery, set up takes time.
2.3: Flow production/ mass production meaning
Making lots of things continuously
identical
