2.3 Flashcards
job production
-one off or bespoke products
-focus on customer needs and individual service
-specialist skilled workforce increases costs
-high porfit margins
-longer production processes
batch production
-larger volume of products than job production
-some flexibility
-semi-skilled
-some levels of automation
-productivity reduced when switching batches
flow production
-high volumes and low margines (with high productivity)
-standardised production
-low skilled workforce
-highly automated process
-setting up expensive machinery increases costs
impact of technology on operation
+speeds up production process
+keeps business in touch with their customers
+lowers production costs
+ensures fewer mistakes and defects
-can involve costly initial installment
-can quickly become obsolete
-requires employess to be trained to new technology
technology used in business operations
-CAD
-SCM
-GPS
-EPoS
-3d PRINTING
- e-commerce
benefits of holding stock
-an unpredicted surges in demand can be met
-damaged goods can be replaced
-businesses can recieve discounts for bulk buying
-limited risk of problems supplying customer demand
benefits of holidng little to no stock
-cost saving in not having to store stock
-less chance of damaged or stolen goods
-employees can focus on taks rather than managing stock
-can reduce costs of production, which makes product pricing more competitive
procurenment
the process of managung a businesses major purchases, from raw materials to delivery vans
what factors contribte to a businesses relationship with its suppliers
-the cost of the goods being produced
-delivery provided by the supplier, including the cost of deligery, the speed of delivery and the reliabilty of delivery
-the quality of the materials being made or products that the business is procurring
-the availability of materials or products provided by the supplier
-the level of trust between the supplier and the business
logistics def
organisation and transportation of goods
impact of logistics and supply decisiojs
-costs. a well organised logistics system csn reduce transportation and packaging costs and limit the amount of stock that is lost or damaged
-reputation, a business that manages its supply chain effectivley may gain a reputation for providing a fast and efficient service
-customer satisfaction, a business that can deliver a product or service in a fast, simple and flexible manner is likely to have the highest customer satisfaction ratings
benefits of good quality
-allowd high price to be charged
-builds strong brand image
-good quality is closely linked to meeting customer needs and can help provide a competitive advnatage
-a method of deifferentiating a product
quality assurance checklist
-have quality as the focus of every process
-involves customer and suppliers at the design stage
-aims for zero defects
-have quality as the responsibility of every employee
-have managers who ensure thewre are systems in place to assure quality
-meet a quality standard
-mak e good quality part of the business culture, so it is something everyone aims for and is involved in
benefits of quality assurance
-every employee takes repsibility for the quality of its products
-thus lower proportion of faulty products, customers are less dissatisfied with the service they recieve
-helps build a solid reputation
-avoids the costs of replacing faulty goods
sales process
-customer interest
-speed and efficiency srvice
-customer engagment
-[post sales services
-customer loyalty
good customer service leads to:
-satisfied and loyal customers
-positive brand image and reputation
-differntiated products with acompetitieve advantage
-increased sales and repeat purchasing
bad customer service leads to:
-por customer satisfaction and low customer loyalty
-poor brand image
-inability to differentiate products and charge premium prices
-failing sales and repeat purchases
techniques to get customer attention
-brnaidng
-sponsorhsip
-advertisinh
-sales promotion and special offers
hard approach def
sales employees activley approcach and engage customers, they will do this in order to talk to tgem about the businesses products in an attempt yo encourage the customer to buy the product
soft approach def
sales employees make customers aware that they are agailale if the customer needs and information or support in making a purchase, but ;et the customer look through products on their own
