Business Studies Topic 3 Flashcards
Define production
The action of making or manufacturing from componenets or raw materials .
What is job production ?
Job production is where one single product is made at a time .
What are two advantages of job production ?
- Very motivated workers who can see one item made from start to finish .
- Motivated workers are normally more productive
What are two disadvantages of job production ?
- Skilled labour and craftsmen are expensive
- Wide range of tools may be required
What is flow production ?
Flow production is where mass amounts of products are made in one go
What is one example of flow production ?
Coca cola
What are two advantages of flow production ?
- A business can make larger quantities which means they can buy bulk raw materials and save money
- Automated and computerised production means improved quality and more complex designs can be made in shorter times
What are two disadvantages of flow production ?
- High costs to buy the factory and machinery
- Low motivation of staff due to repetitive tasks
What is lean production ?
Lean production is where a business uses as few resources as possible
Lean production tries ro use as few resources as possible, waste is also kept to a minimum there are seven wastes , what are they ?
Transport , motion , inventory , waiting , over-processing , over-production and defects .
What is just-in-time delivery ?
Just-in-time means that a business does not keep stocks of parts in a warehouse . Instead they order the parts and get them supplied the same day.
What are two advantages of just in time delivery ?
- As parts are ordered as they are needed there is no wastage .
- Stock is less likely to go out of date .
What are the disadvantages of just in time delivery ?
- The business won’t be able to meet unpredicted demands .
- The business won’t be able to quickly replace damaged parts .
What are the disadvantages of just in time delivery ?
- The business won’t be able to meet unpredicted demands .
- The business won’t be able to quickly replace damaged parts .
What does procurement mean ?
The process by which a business buys raw materials , products other resources from suppliers to produce their own products and services .
What is direct procurement ?
Buying raw materials that are used in the making or the product, or delivery of the service .
What is indirect procurement ?
Buying maintenance contacts , admin stationary , marketing advert space , ICT and other support items .
What are the six factors a business needs to identify when choosing a supplier ?
- Quality and reliability
- Speed and flexibility
- Good service
- Value for money
- Communication
- Financial security
What does logistics mean ?
The activity of transporting goods to customers .
What is a supply chain ?
A supply chain is all the businesses which provide parts of the product until it gets to the consumer .
What is the definition of quality ?
A measure of how well made a product is .
What does a quality product always leave you feeling ?
Satisfaction
What does TQM stand for and what does it mean ?
Total quality management . This is a management approach to long term success through customer satisfaction . The business will focus everything on quality .
What are two advantages of TQM ?
. Not paying for inspectors means lower costs
. Empowered employees are motivates and therefore more productive .
What are two disadvantages of TQM ?
. Takes time to introduce
. Some staff might be resistant to the change in culture .
What are the benefits of a quality product ?
- Additional sales
- Enhanced reputation
What is internal failure ?
Where costs can include the cost of scrapped material and rework and repair .
What is external failure ?
Where costs can include product recalls, customer complaint handling and loss of reputation .
What is a franchise ?
Where a small business owner buys the rights to sell the goods and services of a large, well-established company .
What is a franchisee ?
This is a small business owner who is buying the rights .
What is a franchisor ?
This is the large business who are selling the rights.
What is outsourcing ?
A business practise in which a company hires people to do certain jobs .
What are the four examples of outsourcing ?
Production , payroll , purchasing and delivery
What is customer service ?
The assistance and advice provided by a company to those people who buy or use its products or use its products or services .
When is customer service ?
Before the sale , at the time of the sale and after the sale
What does before the sale ?
A customer may wish to get some advice, particularly if they are spending lots of money .
What is meant by at the time of the sale ?
A customer may want gift wrapping or easy payment terms
What is meant by after the sale ?
A customer may need to call the helpline if the product doesn’t work or if they need further advice .
What is the sales process ?
There are seven steps .
- Preparation
- Introduction
- Questioning
- Presentation
- Objection handling
- Close
- Follow up
What will good product knowledge build with a customer ?
Trust and confidence
How will product knowledge of the employee help a customer ?
Help to meet their needs and the right product . Becausecof this the number of returns by the cystomers will reduce .
What is customer engagement ?
Means creating a positive experience fo the customer
What is meant by post sales services ?
Post sales services are services that are carried out by the business after the buyer has paid for the goods .
What does an increase in customer satisfaction mean ?
- Satisfied customers
- Customers come back to the business and buy again and again
- Good reviews
What does a dissatisfied customer mean ?
- Bad reviews
- Bad customer spending
What is e-commerce ?
Any form of business activity conducted electronically can be defined as e-commerce .
What are the advantages of social media ?
- Customers increasingly engage with businesses
- Brand visibility
- Response to complaints and feedback will be quicker .
What are the disadvantages of social media ?
- Commitment of resources will be expensive for social media
- Negative feedback from customers will be more visible .
