3. Operations

Question 1

What is production managment?

Answer 1

all the activities in managing the transformation process.

Question 2

What is production?

Answer 2

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

Question 3

What is job production?

Answer 3

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

Question 4

What is flow production?

Answer 4

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

Question 5

What is specialisation?

Answer 5

when individuals focus on a limited number of tasks.

Question 6

What is lean production?

Answer 6

an approach to production that aims to minimise waste.

Question 7

What is Just-in-time (JIT) production?

Answer 7

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

Question 8

What is 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

What is 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

What is Purchasing economies of scale?

Answer 10

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

Question 11

What is Procurement?

Answer 11

involves selecting suppliers, establishing the terms of payment and negotiating the contract.

Question 12

What is a supply chain?

Answer 12

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

Question 13

What is Logistics?

Answer 13

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

Question 14

What is Total Quality Management (TQM)?

Answer 14

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

What is customer service?

Answer 15

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

Question 16

What is positice customer engagement?

Answer 16

when customers have a good experience from their contact with the business.

Question 17

What is Post-sales (or after-sales) service?

Answer 17

the meeting of customers’ needs after they have purchased a product, for example, by repairing or servicing the product.

Question 18

What is Premises?

Answer 18

the buildings used by businesses – these may include offices, shops and factories.

Question 19

What is customer loyalty?

Answer 19

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

Question 20

What is Information and communications technology (ICT)?

Answer 20

the computing and communications systems that a business might use to help to exchange information with stakeholders.

Question 21

What is a global market?

Answer 21

made up of customers from across the world.

Question 22

What is Data analysis?

Answer 22

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