Business operations Flashcards
Production
Process of changing inputs such as labour services into goods and services that can be sold
Functions of production department
Production planning and scheduling, deciding the best production methods to use and managing product quality
Job production
Involves the manufacture of an individual good from start to finish. Each product is different and offers a unique good for the consumer or meets specific consumer requirements
E.g. wedding dresses
Pros-
Unique and higher quality
Cons-
Expensive, time consuming and replacements more difficult to find
Batch production
Found when a small number of identical products are made at once and each batch goes through one stage of the production process before moving onto the next stage. E.g. bakery and clothing manufacturers
Pros-
More products can be produced and production is more efficient
Cons-
Quality not as high and products not produced to a unique specification
Flow/mass production
Goods are produced continuously usually on a production line and partly finished goods move along the assembly line with parts being added through the process e.g. golf balls
Pros-
Efficient use of labour and machines and produces similar/identical goods
Cons-
Bored workers and lack of flexibility
Quality
Involves meeting a standard for a good or service to meet consumer needs and expectations
Try to achieve quality through:
Having the best production processes and training employees and employing the right people
Quality control
Inspecting a sample of goods produced at the end of the production process to ensure that specification has been met. Goods that don’t meed the standards are scrapped or are sold as seconds.
Pros-
Reduces the risk of a faulty product reaching the customer and problem areas can be identified and action taken
Cons-
Requires specilalist personnel and waste levels can be high as a fault will only be found at the end of process
Quality assurance
Guarantee given by producers to consumers that certain standards have been met throughout the production process.
Involves- Checking quality at each stage of the production process and quality is the responsibility of everyone throughout the process
Requires staff to consider-
What suppliers they’re using to make sure the supplies do not create problems and training staff so they can check their own work rather than waiting for it to be inspected
Pros-
Focus on quality throughout the process and better reputation due to quality products
Cons-
Relies on commitment of all staff, training must be provided and productivity can be reduced
Quality awards
Evidence of high standards- these show customers that certain standards have been met
Wastage
Products cannot be sold because they are of poor quality or damaged or stock is out of data
TQM (Total quality management)
Creates quality through continuous improvement, development of systems and products and by creating an organisational culture of quality
For TQM to be effective a number of methods need to be used:
Teamwork and monitoring
Importance of quality to a business
Increasing customer expectations:
Gain and retain customers, word of mouth advertising and brand loyalty
Increasing sales:
Reputation of the business, positive image to consumer and positive word of mouth
Reducing cost and waste:
Reduce product returns and recalls, avoid negative publicity and loss of trust
Ways that a business can make sure that they provide high quality goods and services
Quality of workers, quality control and high quality materials
Consequences of bad quality goods and services
Customers lost, reputation will suffer and increased costs due to wastage
