B3 - Operations

Question 1

What is Production

Answer 1

The process of turning raw materials into goods and services

Question 2

What are 2 types of Production?

Answer 2

• Job Production

- Flow Production

Question 3

What is Job Production?

Answer 3

Producing items that meet the specific requirements of the customer

Question 4

What is advantages of Job Production

Answer 4

• Products - high quality
• Meets individual customer requirements
• Greater job satisfaction for employees, involved in all stages of production

Question 5

What are disadvantages of Job Production?

Answer 5

• Requires skilled employees, demand higher levels of pay

- Labour intensive, as less suited to the use of machinery

Question 6

What is Flow Production?

Answer 6

Continuous production to produce many identical products

Question 7

What are advantages of Flow Production?

Answer 7

• Workers used can specialise in one job, makes them more efficient
• Products will have consistent quality
• Ideal for large-scale production of mass- market products

Question 8

What are disadvantages of Flow Production?

Answer 8

• Expensive to purchase machinery and to set up

- Jobs can be repetitive and boring as it’s machines, lowering the motivation of workers

Question 9

What is Lean Production?

Answer 9

Focuses on cutting out waste, whilst ensuring quality.

Aims to cut costs by making the business more efficient and responsive to market needs.

Question 10

What is Procurement?

Answer 10

The process of a business of buying raw materials

Question 11

What is Just In Time stock control

Answer 11

Stock comes in from suppliers when needed

Question 12

What are benefits of Just In Time?

Answer 12

• Less stock held

- No warehouse costs

Question 13

What are drawbacks to Just In Time?

Answer 13

• Making more frequent purchases

- Buying in smaller quantites means no Economies of Scale

Question 14

What is Just In Case stock control

Answer 14

Have a large amount of stock of resources from suppliers

This means the business won’t run out of stock.

Question 15

What are benefits to Just In Case?

Answer 15

Holding lots of spare stock, to satisty consumer demand

Question 16

What are drawbacks to Just In Case?

Answer 16

The cost of holding spare stock, cost of warehouse

Question 17

What is Logistics?

Answer 17

Process of transporting goods to customers

• Transportation, Packaging, Inventory, Security

Question 18

What is a supply chain?

Answer 18

All the businesses which provide parts of the porduct until it gets to the consumer

Question 19

What is Total Qulaity Management

Answer 19

An apporach to long term success through customer satisfaction

Question 20

What are the features of TQM

Answer 20

1) Quality Circles ( small group of workers meet to solve work problems )
2) Zero Deflects ( business ensure products aee free from defects )
3) Change in Culture
4) Internal Customers
5) Lean Approach ( continuous improvement )

Question 21

What are advantages of TQM to a business ?

Answer 21

• Not paying for inspectors , lower cost
• Employees are motivated, increased productivity
• Improved quality , more satisfied customere

Question 22

What are disadvantages of TQM to a business ?

Answer 22

• some staff are resistant to change in culture
• costs to train staff , may be expenisve for smaller businesses
• takes time to introduce , demands time

Question 23

What is Outsourcing ?

Answer 23

Involves getting another business or organisation to provide the service for you

Question 24

Outsourcing examples ?

Answer 24

• Production
• Payroll
• Delivery
• Purchasing and maintaining information systems

Question 25

What is a Franchise?

Answer 25

Where a small business owner buys the rights to sell the goods and services of a large well-established company

Question 26

What is a franchisee ?

Answer 26

small business owner buying the rights

Question 27

What is the franchisor ?

Answer 27

large business who are selling the rights