3 Business Operations Flashcards
What is the supply chain?
The supply chain refers to all businesses, people and activities that take part in the production process from the start until it gets to the customer
- List four types of business that are usually part of a supply chain.
Producers, vendors, warehouses and transportation
- What does ‘procurement’ mean?
the process of sourcing, purchasing, receiving, and inspecting all of the goods and services your business needs to operate
- Explain how effective procurement and logistics can improve the efficiency of a business.
getting the right supplies from the right supplier, at the right price and at the right time
- Explain how effective procurement and logistics can affect the unit cost of products.
It can reduce overall costs therefore lowering the amount of money the business needs to make so the product can be sold at a lower price
- Explain why a good relationship with suppliers is a benefit of managing a supply chain effectively.
you will help to develop cost savings and reduce availability problems, quality issues, and product delays
- Why is it important that a firm reduces waste and unnecessary costs in its supply chain?
Avoid transportation wastes through seamless flow of inputs from upstream to downstream processes
Methods of Production and Efficiency
job production. batch production. flow production.
- a) What is meant by ‘job production’?
Making a product based on a customers specific needs and making the products when needed
b) Give an example of a product made by job production.
Table
- a) What is meant by ‘flow production’?
Creating products as a constant flow to provide enough for whoever buys it
b) Give an example of a product made by flow production.
Energy drink
- Give one advantage of flow production over job production.
Less delay for a products
- What does ‘lean production’ mean?
Creating just the right amount of products so you have none left over
- What is meant by a just-in-time (JIT) production method?
- Explain why a business may prefer to use a just-in-case (IC) approach rather than JIT.
Quality (p.40-41)
- Give three reasons why it’s good for a business to ensure customers get good quality products.
- Give two costs associated with maintaining quality standards.
- Why is it advantageous for a business to spot quality problems in the production process?
- What does TQM stand for? And what does TQM involve?
- Give one advantage of TQM.
- Give one reason why a growing business may find it difficult to maintain high quality standards.
Customer Service (p.42-43)
- Briefly describe the steps in a sales process.
- Explain why having good product knowledge allows sales staff to provide good customer service.
- Give one way in which sales staff could make sure they engage positively with their customers.
- Explain why providing good customer service is important for customer loyalty.
- Explain how poor customer service could lead to a big fall in a firm’s revenue.
- Give three ways in which a business can make sure their website provides good customer service.
• Explain how the growth in social media has allowed businesses to develop their customer service.
