BUSINESS OPERATIONS Flashcards
what is a supply chain?
group of firms that are involved in all processes needed to make a product
what is a distributor?
someone who buys products from a manufacturer and sells them to other people
what is a retailer?
someone who sells products directly to customers
what are some factors firms consider when choosing a supplier?
price - if within budget, if they want fast deliveries, quality
quality (must be consistent)
reliability - need high quality products on time
what is procurement?
finding and buying thinmgs a firm needs from suppliers outside the business
what is logistics?
getting goods/services from one part of the supply chain to another
why does good logistics and procurement improve efficiency?
the business will have the necessary supplies at the right time. overall costs are reduced - don’t waste money by being inefficient since they have the best material
what are the benefits of a good supply chain?
good relationship with suppliers - makes sure processes are efficient and cost-effective
find best price
reduce waste/unnecessary costs - more streamlined (effective) and faster production
what is job production?
making products individually - each product is unique
what are the advantages to job production?
high quality
customer satisfaction
more sales -> more profit
good brand image
what are the disadvantages to job production?
expensive - retool
longer process
need high skilled workers
labour intensive
staff training
what is flow production?
continuous production
what are the advantages of flow production?
easier
faster
familiarity
low cost per unit -> economies of scale
cheaper
machinery/quality systems are the same
what are the disadvantages of flow production?
open 24hrs
requires lots of space
initially expensive
boring/repetitive for workers
what is lean production?
how businesses can increase efficiency
what is just-in-time (form of lean production)?
aim to keep stock levels at the bare minimum - usually calculated by computers
what are the disadvantages of JIT?
may not be on time -> run out of stock
calculated wrong
requires lots of coordination
lose out on economies of scale
what are the benefits of JIT?
reduces cost of keeping stock
fresh stock
improve productivity
what is just-in-case stock control?
method where there are buffer stocks at each stage
what are the advantages of JIC?
less risk of lost/no stock
better supply rates
efficient
market products regularly
what are the disadvantages of JIC?
can be left with with stockpiles -> expensive to store
risk of shrinkage (products expiring)
slow growth - money can’t be spent on other factors
need lots of storage
define customer service.
assistance and advice provided by a company to those people who buy or use its products
what are the benefits of maintaining quality?
more profit -> customers are willing to pay more for better quality
more sales
better reputation
what are the drawbacks of maintaining quality?
costly
staff training needed
inspection
if not maintained - loss of sales, disrupt services, product returns(recalls) -> affect reputation
how can quality be measured?
physical properties
how many products get returned
customer surveys
what are the 3 stages at which quality is checked?
- check raw materials from suppliers
- random samples of work in progress
- random sample of finished product
what is total quality management?
continual process of detecting and reducing errors in manufacturing - every employees duty to make sure quality is consistent
what are the drawbacks to TQM?
long time to introduce
staff training
demotivated staff - extra work
why does rapid growth make it hard to maintain quality?
expensive to carry out necessary inspections
overwhemled - cut things short to make things faster
what are some solutions to maintaining quality under rapid growth?
more staff BUT need training - time consuming
franchisor -> will need to carry out regular checks
outsourcing - expensive
name steps of the sales process
- finding potential customers
- approaching them
- assessing customer needs
- presenting product/service
- closing
- follow up
why is good product knowledge important?
any questions can be answered fast and accurately
make sure customer is getting most suited product
customer feels confident
what is important for good customer service?
good product knowledge
engaging well with customers
offering post-sales service
why is e-commerce good for customer service?
24hr ordering -> easier for customers
FAQs
online accounts
social media - updated
communication with customers - live chats
fast and easy
what are the benefits of good customer service?
customer satisfaction
loyal customers
spend more - more sales ->profit
what are the drawbacks of good customer service?
dissatisfied customers -> complaints
poor reputations
lose sales
