2.3 Making operational decisions

Question 1

Batch production:

Answer 1

producing a limited number( usually small quantities) of identical products.

Question 2

Flow production:

Answer 2

Continuous production of identical products, which gives scope for high levels of automation usually mass production. they are made in a factory 24/7 because of automation.

Question 3

Job production:

Answer 3

one-off production of a one-off item for a single customer very unique to the customer, bespoke

Question 4

Productivity:

Answer 4

a measure of efficiency, usually output per person per time period (for example, Nissan UK’s 98 cars per worker per year).

Question 5

Automation:

Answer 5

using machines that can operate without people.

Question 6

Flexibility:

Answer 6

the ability to switch quickly and easily from one task to another.

Question 7

Robots:

Answer 7

machines that can be programmed to do tasks that can be done by humans, such as welding, spray painting and packing.

Question 8

Bar gate stock graph:

Answer 8

a diagram to show changes in the level of stock over time.

Question 9

Buffer (stock):

Answer 9

the minimum stock level held at all times to avoid running out.

Question 10

Just In Time (JIT):

Answer 10

running the business with so little stock that new supplies have to arrive ‘just in time’ before they run out.

Question 11

Stock(s):

Answer 11

items held by a firm for use or sale, for example components for manufacturing or sellable products for a retailer.

Question 12

Availability:

Answer 12

knowing how to get the righ supplies quickly – just when you need them.

Question 13

Logistics:

Answer 13

ensuring that the right supplies will be ordered and delivered on time.

Question 14

Procurement:

Answer 14

obtaining the right supplies from the right supplier.

Question 15

Trust:

Answer 15

building a business relationship in which both sides know that the other won’t let them down.

Question 16

Culture

Answer 16

‘the way we do things round here’; in other words, the accepted attitudes and practices of staff at a workplace.

Question 17

Quality control

Answer 17

putting measures in place to check that the customer receives an acceptable level of quality.

Question 18

Warranty

Answer 18

the guarantee by the producer that it will repair any faults in a product for a specific period of time – often one year.

Question 19

Customer engagment :

Answer 19

the attempt to make a customer feel part of something rather than an outsider.

Question 20

Customer feedback:

Answer 20

feedback: comments, praise or criticisms given to the company by its customers.

Question 21

Post sale service

Answer 21

service received after the purchase is completed, perhaps because something has gone wrong or as a way of promoting customer engagement.

Question 22

Product knowledge

Answer 22

how well staff know all the features of the products and the service issues surrounding the products, such as the precise terms of Kia’s seven-year warranty on its new cars.

Question 23

Advantages to flow production

Answer 23

A business can make larger quantities which means they can bulk buy raw materials and save money (economies of scale). Automated and computerised production means improved quality and more complex designs can be made in shorter times. As production is continuous stocks of parts and raw materials don’t need to be held this means a business can use the JIT system

Question 24

Disadvantages to flow production

Answer 24

High costs to buy the factory and machinery. Low motivation of staff due to repetitive tasks. Break downs and lost production can be costly. Very inflexible, hard to change the factory. machinery to make different products, the production process will be set up to make just one item e.g. bottled cola.

Question 25

Disadvantages to batch production

Answer 25

Workers may be less motivated with repetitive work. Idle time between batches needs to be managed as this is wastage because work stops while the machines are changed to make the next product. If one batch takes too long the other batches will all be held up too.

Question 26

Advantages to batch production

Answer 26

Flexibility because production can be changed to meet customer needs or fluctuations in demand. Standard production of items means it can be mechanised, this means less labour involved than in a job production process. Employees specialise so become good at their job.

Question 27

Advantages to job production

Answer 27

Bespoke, unique, one off, to customers measurements or specifications e.g. a kitchen. Very motivated workers who can see one item made from start to finish. Motivated workers are normally more productive and have lower rates of absenteeism. Higher prices can be charged to the customers.

Question 28

Disadvantages to job production

Answer 28

Skilled labour and craftsmen are expensive. Wide range of tools may be required.