Business

Question 1

Define buffer inventory

Answer 1

the buffer inventory level is the inventory held to deal with uncertainty in customer demand and deliveries of supplies

Question 2

Kaizen advantages

Answer 2

• increased productivity
• reduced amount of space needed for the production process

Question 3

JIT advantages

Answer 3

• Reduced Inventory Costs - By receiving goods only as they are needed in the production process, businesses can significantly lower inventory holding costs.
• Minimised Waste - by producing only what is required, reducing excess production and minimising waste.

Question 4

JIT disadvantages

Answer 4

• unreliable suppliers - e.g late or poor quality deliveries can quickly halt production
• Increased Transportation Costs - Frequent, smaller deliveries can be more expensive.

Question 5

Job production advatages

Answer 5

• customised products can be produced
• more varied work increases employee motivation = giving them greater job satisfaction

Question 6

Job production disadvantages

Answer 6

• High Setup Costs - Labor-intensive and requires skilled workers, leading to increased production expenses
• Longer Production Time - Custom-made items take more time to produce, resulting in longer lead times.

Question 7

Batch production advantages

Answer 7

• Efficiency - Producing in batches can lead to economies of scale, reducing the cost per unit.
• Flexibility - Allows for the production of different products in succession, catering to varying customer demands.

Question 8

Batch production disadvantages

Answer 8

• Idle Time - Equipment and workers may be idle between batches, leading to inefficiencies and wasted resources.
• Inconsistent Quality -Variability between batches can lead to inconsistencies in product quality, which can affect customer satisfaction.

Question 9

Flow production advantages

Answer 9

• High Efficiency - Continuous production process minimises downtime, maximising output and reducing unit costs.
• Consistent Quality - Standardised processes ensure uniform product quality, enhancing customer satisfaction.

Question 10

Flow production disadvantages

Answer 10

• High Initial Costs - Significant investment in machinery and equipment is required.
• Lack of Flexibility - Difficult to change production processes or adapt to new products, limiting the ability to respond to market changes.

Question 11

New technology advantages

Answer 11

• Increased Efficiency - Automation and advanced technology streamline processes, reducing production time and operational costs.
• Enhanced Data Analysis - New technologies enable better data collection and analysis, leading to more informed decisions

Question 12

New technology disadvantages

Answer 12

• High Costs - Initial investment and ongoing maintenance for new technology can be expensive.
• Training Requirements - Employees need to be trained to use new technology effectively, which can be time-consuming and costly.

Question 13

Average costs of production formula

Answer 13

Total cost of production (in a time period) / total output (in a time period)

Question 14

Define economies of scale

Answer 14

Are factors that lead to a reduction in average costs as a business increases in size

Question 15

Define diseconomies of scale

Answer 15

Are the factors that lead to increase in average cost as a business grows beyond a certain size

Question 16

Margin of safety

Answer 16

Is the amount of which sales exceeded the break even point

Question 17

break even point of production formula

Answer 17

Total fixed costs / contribution per unit

Question 18

Quality control advantages

Answer 18

• Consistent Product Quality - Ensures products meet specified standards, leading to higher customer satisfaction and fewer returns.
• Reduced Costs - Identifies and addresses defects early, minimising waste and avoiding costly rework or recalls.

Question 19

Quality control disadvantages

Answer 19

• Increased Costs - Implementing quality control measures requires resources for inspections, testing, and staff training.

Potential Delays: Quality checks can slow down production processes, potentially leading to delays in delivery and impacting overall efficiency.

Question 20

Quality assurance advantages

Answer 20

• Enhanced Customer Confidence - Demonstrates a commitment to quality, which can boost customer trust and loyalty.
• Improved Efficiency - reduces errors by implementing standards and best practices, leading to more consistent and efficient operations.

Question 21

Quality assurance disadvantages

Answer 21

• high costs - expensive to train employees to check the quality of the work at each stage of production

-Time-Consuming - Developing and maintaining quality assurance processes can be time-intensive, potentially slowing down production and affecting overall efficiency.

Question 22

Total quality management advantages

Answer 22

• Improved Quality - continuous improvement across all areas, leading to higher product and service quality.
• Enhanced Customer Satisfaction - Focuses on meeting or exceeding customer expectations, which can boost loyalty and competitive advantage.

Question 23

Total quality management disadvantages

Answer 23

• high costs - expensive to train all employees to check the product or service
• employee responsibility - relies on all employees following TQM ideology and accepting responsibility for quality

Question 24

Advantages of internal recruitment

Answer 24

• the person is already known to the business and the reliability, ability and potential are known
• quicker and cheaper than external, which may involve expensive advertising

Question 25

Disadvantages of internal recruitment

Answer 25

• jealousy
• quality of internal candidates might be low

Question 26

Advantage to a business employing part time employees

Answer 26

• easier to extend operating hours by working evenings or weekends
• reduce costs compared to paying a full time worker

Question 27

Advantages to induction training

Answer 27

• may be legal requirements to give health and safety training at start if their job
• means workers are less likely to make mistakes

Question 28

Disadvantages of induction training

Answer 28

• wages are paid but no work is being done by the workers
• delay start of employee commencing their job

Question 29

Advantages to on the job training

Answer 29

• it ensures there is some production from worker while they are training
• training tailored to the specific needs of the business

Question 30

disadvantages of on the job training

Answer 30

• trainer will not be as productive as usual because they are showing the trainee instead of working on their job
• many no lead to training qualifications recognised outside the business

Question 31

Advantages of off the job training

Answer 31

• employees may be taught a variety of skills - multi skilled
• business will only pay for the course but no output is lost

Question 32

Disadvantages of off the job training

Answer 32

• wages paid but no work for the trainee
• additional qualifications mean is easier for employee to leave and find another job

Question 33

Advantages of verbal communication

Answer 33

-info can be quickly given out - efficient way of communicating with large number of people

Question 34

disadvantage of verbal communication

Answer 34

• no telling whether the employees was listening and understood the message
• longer to receive feedback occurs than written form like email

Question 35

Advantages of written communication

Answer 35

• elec communications is quicker and cheaper ways to reach a large number of people
• hard evidence of the message which can be referred in the future

Question 36

Disadvantages of written communication

Answer 36

• not easy to check of message has been received
• if message written to long it may be confusing and lose interest of the reader

Question 37

Visual communication advantegs

Answer 37

• written message clearer by adding a chart of diagrams to illustrate the point

Question 38

Visual communication disadvantages

Answer 38

• no feedback and sender of message may need to use other forms of communication to check the message has been understood

Question 39

Advantages of primary research

Answer 39

• up to date and relevant to the business
  -most effective when used to gather info which will help the business with a specific problem

Question 40

Disadvantages of primary research

Answer 40

• not available immediately time consuming
• expensive- individual interviewing people

Question 41

Advantages of questionnaires

Answer 41

• can be online
• customers opinion about the product or service can be obtained