3. Business Operations

Question 1

3.1 Key terms - production management

Answer 1

Refers to all the activities in managing the
transformation process.

Question 2

3.1 Key terms - production

Answer 2

Is the process of changing inputs such as labour services into goods and services that can be sold.

Question 3

3.1 Key terms - job production

Answer 3

Is a method of production in which a product is supplied to meet the exact requirements of a customer.

Question 4

3.1 Key terms - flow production

Answer 4

Occurs when an item moves continuously from one stage of the process to another.

Question 5

3.1 Key terms - specialisation

Answer 5

Occurs when individuals focus on a limited number of tasks.

Question 6

3.1 Key terms - lean production

Answer 6

Is an approach to production that aims to minimise waste.

Question 7

3.1 Key terms - just in time production

Answer 7

Holds as little stock as possible, Items are ordered just in time to be used.

Question 8

3.1 Key terms - kaizen

Answer 8

Means continuous improvement, It is an approach to production that aims to achieve change from a series of small steps.

Question 9

3.2 Key terms - Just-in-case (JIC)
production

Answer 9

holds stocks just in case there is a delay from supplies or a sudden unexpected increase in demand.

Question 10

3.2 Key terms - Purchasing economies of scale

Answer 10

Occur when the cost per unit falls if large orders are placed with suppliers due to a bulk discount.

Question 11

3.2 Key terms - Procurement

Answer 11

Procurement (or purchase) involves selecting suppliers, establishing the terms of payment and negotiating the contract.

Question 12

3.2 Key terms - Supply chain

Answer 12

Refers to all the businesses, people and activities that take part in the production processes from the start until it gets to the customer.

Question 13

3.2 Key terms - Logistics

Answer 13

Refers to the movement of goods, services, information and money throughout the production process.

Question 14

3.3 Key terms - Total quality managememt (TQM)

Answer 14

Total Quality Management (TQM) is an approach to quality in which everyone is focused on preventing errors occurring and ensuring quality at each stage of the production process.

Question 15

3.4 Key terms - Customer service

Answer 15

Customer service is the part of a business’s activities that is concerned with meeting customers’ needs as fully as possible.

Question 16

3.4 Key terms - Positive customer engagement

Answer 16

Positive customer engagement occurs when customers have a good experience from their contact with the business.

Question 17

3.4 Key terms - Post sales service

Answer 17

Post-sales (or after-sales) service is the meeting of customers needs atter they have purchased a product, for example, by repairing or servicing the product.

Question 18

3.4 Key terms - premises

Answer 18

Premises are the buildings used by businesses - these may include offices, shops and tactories.

Question 19

3.4 Key terms - customer loyalty

Answer 19

Customer loyalty means that a business’s customers make repeat purchases because they prefer the business’s products to those of its rivals.

Question 20

3.4 Key terms - information & communications technology

Answer 20

Information and communications
technology (ICT) are the computing and communications systems that a business might use to help to exchange information with
stakeholders.

Question 21

3.4 Key terms - E-commerce

Answer 21

E-commerce (or electronic commerce) is the act of buying or selling a product using an electronic system such as the internet.

Question 22

3.4 Key terms - M-commerce

Answer 22

M-commerce lor mobile commerce) is the buying and selling of products through wireless
handheld devices such as smartphones.

Question 23

3.4 Key terms - global markets

Answer 23

Global markets are made up of customers from across the world.

Question 24

3.4 Key terms - social media

Answer 24

Social media involves methods of online communication such as websites and applications; they share information and help to develop social and professional contacts.

Question 25

3.4 Key terms - data analysis

Answer 25

Data analysis involves gathering and examining data to provide useful information that can be used for decision-making.