Operations

Question 1

what is the definition of quality

Answer 1

those features of a product or service that allow it to satisfy customers’ requirements

Question 2

why should a business ensure quality

Answer 2

-to keep customers happy (more sales)
-to avoid customer complaints/returns (reduces waste)
-to gain and maintain a good image in the market place
-to make sure products are up to standard

Question 3

what are ways to ensure quality

Answer 3

-quality control
-quality assurance
-quality circles
-benchmarking

Question 4

what is quality control

Answer 4

-this involves the product being checked at the end of the process with unsatisfactory products discarded
-more cost effective than quality assurance as less checks required, only seeks faulty products rather then prevent them (high wastage)

Question 5

what is quality assurance

Answer 5

-quality checked at every stage-product doesnt move on if doesnt meet criteria
-time consuming to check products regularly.

Question 6

what is a quality circle

Answer 6

-small groups of managers and staff meet to discuss where improvements can be made in the production process.
-motivates workers to be more productive by including them in the decision making

Question 7

was is benchmarking

Answer 7

-the business identifies a market leader and copies or improve on their standard of quality
-all work compared to this to ensure a suitable quality
-continuous process of striving to improve which can enhance competitiveness

Question 8

what are 4 factors to be considered when choosing a supplier and explain them

Answer 8

the cost of the raw materials (how much it is to purchase them)
-costs need to be kept to a minimum to maximise profit

the quality of raw materials (the standards of what the supplier provides)
-good quality raw materials ensure good quality finished product

the quantity of raw materials required (the amount the business needs)
-if the supplier cannot supply the quantity of raw materials required it could mean production needs to halt

how reliable the supplier is (which is if they can be depended on)
-will the supplier deliver the correct quality/quantity on the agreed date

Question 9

what are the four methods of prodcution

Answer 9

job, batch, flow and capital intensive production

Question 10

what is job production

Answer 10

job production is where a company produces a single product or small number of products specific to the requirements of customers. The emphasis in on individuality

Question 11

what is batch production

Answer 11

batch production is groups of similar products are made with slight variation. Products will be similar but different ingredients may be used for different products. (common in baking and house building)

Question 12

what is flow production

Answer 12

flow production is when a product moves along a production line with parts added at each stage, used to make identical products, capital intensive method.

Question 13

what is capital intensive production

Answer 13

capital intensive production is when a high percentage of machines and used in production rather than people

Question 14

what are factors to be considered when choosing a method of production

Answer 14

-having the money to buy the machinery
-the time the product takes to make
-customer demand
-the technology involved
-the finance available

Question 15

advantages of job production

Answer 15

advantages
-customers get what they want
customer satisfaction, become loyal
-company can charge a high price
increased sales, increase profit
-workers may be more motivated as each job is different
higher productivity

Question 16

disadvantages of job production

Answer 16

business does not benefit from economies of scale production
-no bulk discount, increase costs
staff need to be highly skilled
-wage costs will be high
delivery times may be long
-dissatisfied customers may go to competitors in the future

Question 17

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Question 17

advantages of batch production

Answer 17

batches can be changed to meet customer requirements
-increasing customer satisfaction, increase loyalty
less skilled staff are needed
-lower wage cost
large amounts can be made
-economies of scale gained reduced cost which incraeses profut
machinery can be standardised
-reduced cost, increase profit

Question 18

disadvantages of batch production

Answer 18

mistakes may lead to loss of whole batch
-loss of profit
machines/workers may sit idle between stages and between each batch unless there is careful planning
-waste of resources
staff may be less motivated as they repeat the same task in batches
-less productive

Question 19

advantages of flow production

Answer 19

costs are spread over a high level of output
-reduced costs, maximise profit
huge amount can be produced
-cope with large orders, needs of customers can be met, high customer satisfaction
high discounts may be available (bulk buying)
-saves money, more spent on other areas e.g marketing
automation can be used-mass production
-less staff = less costs

Question 20

disadvantages of flow production

Answer 20

high initial investment needed
-due to high costs business will take a long time to break even and make profit
individual orders cannot be catered for
-customers may want a unique product and feel their needs cannot be met and go to a competitor
equipment may not be suitable for use in another process
-several pieces of machinery will have to be purchased and staff will need to be trained on how to use it, expensive

Question 21

advantages of capital intensive production

Answer 21

machines can work 24/7, dont need breaks
-more products can be made
machine can produce products of consistent quality
-less wastage cosy, machines rarely make mistakes, less customer mistakes
machines can work faster than humans
-increased, productivity, business more able to cope with customer demand
less human labour required
-reduced wage cost

Question 22

disadvantages of capital intensive production

Answer 22

have to purchase machinery and have to train staff on how to use
-initialy very costly, reducing profit, may struggle to break even at first
technical faults may occur halting production
-lost production time during breakdown