2.3 (2) Flashcards
How does using machinery increase productivity?
Machines can work 24/7 and don’t require holidays, so can increase overall output
How can using CAD improve production quality?
It is more precise and removes human error
What is another advantage of using CAD?
Allows for adjustments in the production process, increasing flexibility and choice
What is buffer stock?
The minimum amount of stock a business will hold
How can just in time stock management improve cash flow?
Less money is spent on raw materials/stock that are not being used, so the business has more spare cash
List 2 disadvantages of JIT:
- Supplier delays halt production- No economies of scale
What is procurement?
The act of acquiring raw materials/components for production
What 5 factors do businesses need to consider when choosing a supplier?
- Quality- Delivery- Stock availability- Cost- Trust
What is meant by logistics?
The process of organising commercial transport
What are the advantages of having a reliable supplier?
The business can meet demand and produce good quality products, ensuring customer satisfaction which builds up a good brand reputation.
Why can quality control be costly?
Results in large amounts of wastage, increasing unit costs for suitable products.
Name a disadvantage of quality assurance:
Can increase training costs
How can quality assurance impact productivity?
Increases productivity as workers are more motivated
What are the advantages and disadvantages of job production?
A: Can charge premiumWorkers are more motivatedD:Worker training requiredLengthy process and higher unit costs
What are the advantages and disadvantages of batch production?
A: Can take advantage of economies of scaleGreater rate of productionD: Demotivated/bored workersDelays can hold up the line
What are the advantages and disadvantages of flow production?
A: Automation increases productivityLower unit costsD: Expensive machineryInflexible- hard to adapt production
List 3 ways of increasing productivity?
-Installing machinery-Improving staff motivation-Staff training to improve efficiency of production
List 2 quality control practices that may be implemented by a business:
-Inspections at the end of a production line-Feedback systems
How does quality assurance differ from quality control?
Its focus is on preventing falling below standards as opposed to identifying errors after they have occured
What are the 5 most important aspects of the sales process?
-Product knowledge-Efficient service-Customer engagement-Receptive to feedback-Post-sales service
What is necessary in order for staff to have good product knowledge?
Good training, loyalty and commitment
What may post-sales service entail?
Warranties, reparations, offering support
////What is a business’ gross profit?
The sales revenue minus the cost of sales
What is net profit?
A business’ fixed running costs subtracted from the gross profit
