2.3 - making operational decisions

Question 1

define operations

Answer 1

business function that organises, produces and delivers goods and services. Transforming resources into finished goods

Question 2

production method

Answer 2

job, batch, flow

Question 3

flow advantage and disadvantage

Answer 3

• high volumes and low margins
• low skilled workforce
• automated process
• expensive machinery increase costs

Question 4

batch advantage disadvantage

Answer 4

• larger volume of products than job
• some flexibility
• semi skilled workforce
• some level of automation
• productivity reduced when switching between batches

Question 5

job advantage disadvatage

Answer 5

• one-off/bespoke products
• focus on customer needs and individual service
• specialist workforce increase costs

Question 6

impact of technology on busienss operations

Answer 6

• speeds up production process –> efficiency –> motivation
• lowers production costs –> hire less workers –> more revenue
• usually involves initial investment –> break even –> high risk
• requires employees to be trained to use new tech –> expensive –> increase costs

Question 7

benefits of JIC

Answer 7

• unpredicted surges in demand can be met
• damaged goods can be quickly replaced
• businesses receive discounts for bulk buying from suppliers

Question 8

benefits of JIT

Answer 8

• don’t need to buy storage space –> reduce cost of production –> can make pricing more competitive
• less chance of damaged or stolen stock

Question 9

what makes a good supplier

Answer 9

• good price
• flexible deliveries –> if late, holds up production –> dissatisfied customers return products
• reliable deliveries
• discounts for bulks
• high quality supplies
• available products

Question 10

benefits of having good quality

Answer 10

• can charge premium price
• builds strong brand image
• meets customer needs –> competitor advantage
• USP

Question 11

quality control vs quality assurance

Answer 11

control: part of production - quality controller examines quality once product has been delivered
assurance: focusing on quality at every stage and everyone is involved and responsible - likely for fewer defects

Question 12

define logistics

Answer 12

the organisation and management of the transport of raw materials and goods

Question 13

role of procurement

Answer 13

getting good quality supplies from quality suppliers, and having effective stock control (reliable suppliers) to meet customer demands

Question 14

5 stages in the sale process

Answer 14

• customer gaining interest
• providing speedy/efficient service
• customer engagement
• respond to customer feedback
• post-sales service
  (- customer loyalty)