2.3.1 Business operations

Question 1

What is the purpose of business operations?

Answer 1

• To produce goods : raw materials that will be produced as goods which will then be sold, will use other processes and materials to add value so that customers will buy it
• To provide services : for customers, intangible items that we cannot touch

Question 2

What is job production?

Answer 2

• A single product is made at a time
• Made specific for a client or customer (made indvidually)
• High quality = High price

Question 3

What are the advantages of job production?

Answer 3

• Bespoke, one off, to customers measurements or specification
• Very motivated workers
• More productive due to less absences
• Higher price can be charged

Question 4

What are the disadvantages of job production?

Answer 4

• Skilled labour + craftsmen are needed which can be very expensive
• Wide range of tools may be required

Question 5

What is batch production?

Answer 5

• Small quantities of identical products are made
• Machines changed to make a different batch
• This production method is used when a business wants to make more than one item, e.g. different types of bread

Question 6

What are the disadvantages of batch production?

Answer 6

• Workers less motivated due to the repetitive work
• Idle time (wastage because work stops while machines are changed to make next product)
• If one batch takes too long, other batches will all be held up too

Question 6

What are the advantages of job production?

Answer 6

• Flexiblity (meet customers needs or fluctuation in demand)
• Standard production of items, can be mechanised=less labour
• Employees specialise (good at their job)

Question 6

What is flow production?

Answer 6

• An assembly line produces standardised products
• Continuous movement of items through the process
• Many mass produced products are made this way, e.g toothpaste, cars
• Assembly lines in production
• Lots of machines (very capital intensive process)

Question 7

What are the advantages of flow production?

Answer 7

• Can make larger quantities - can save money + bulk buy raw materials (economies of scale)
• Automates + computerised production means improved quality + more complex designs
• Stock of parts + raw materials don’t need to be held as production is continuous

Question 8

What are the disadvantages of flow production?

Answer 8

• High costs (factory + machinery)
• Low motivation of staff due to the repetitive work
• Break down and lost production is costly
• Very inflexible, hard to change factory machinery to make different products, the production process will be set up to make just one item

Question 8

What is the impact of different types of production process? : keeping
productivity up and costs down and allowing for competitive
prices.

Answer 8

1) Job production - e.g. making a jumper
2) Batch production - e.g. different flavours of cupcake
3) Flow production - making things in mass e.g. toothpaste

Question 9

What are the impacts of technology on production?

Answer 9

1) Lower costs - robots don’t need to be paid, initial costs of buying machinery or robots will be expensive but the business will soon make these costs back with improvement of quality and reduction of wastage
2) Improvement in quality - Computer aided designs (CAD) designs can be completed on a computer and seen in 3D, machinery and robots = no human error in production
3) Importance of productivity - robots and machines can work 24/7 and don’t need breaks etc, business produces more products
4) Improvement in flexibility - computer aided manufacture (CAM) means that a business can use computers to very precisely control + monitor + adjust tools in manufacturing, a business producing products can be more flexible + produce a wide variety of products