operations Flashcards
what are the 6 key stages of the sales process?
1.preparing through good product knowledge
2.identifying sales opportunities
3.understanding the needs and wants of customers
4.informing customers of the features and benefits of the product or service
5.closing the sale
6.following up and after-sales
what happens at the first stage?
Businesses need to ensure that their employees have good product knowledge. Customers expect a high level of product knowledge and customer service.
what happens at the 2nd stage?
Businesses need to ensure they attract the attention of potential customers, for example by using
emotive language in their advertising
what happens at the 3rd stage?
All customers have different wants and needs when purchasing from a business. It is important for businesses to undertake
market research to find out the different wants and needs of their customers.
what happens at the 4th stage
the interactions that take place between a business and its customers during the sales process.
what happens at the 5th stage?
Closing the sale means completing the sale and selling the product or service to a customer. Until this stage is complete, no money has been received.
what is the final stage?
After-sales service involves providing support for customers who have bought a product or service from a business.
factors that contriubute to good customer service?
knowledgeable, helpful and friendly staff
meeting all legal requirements
quick delivery
efficient service
excellent
post-sales service and support
good product availability
advantages of good customer service
increasing customer loyalty
ability to increase prices
increasing customer spending
improving reputation
attracting new customers
when would a business interact with customers?
sales, queries, complaints, after sales
how is customer service carried out online?
creating a god website
email or online chat
tracking customers online activity
encouraging feedback
what does stock control consist of?
raw materials waiting to be used in production
work in progress
finished stock waiting to be delivered
what is procurement
Procurement means getting the right supplies from the right supplier, at the right price.
consequences of holding too much stock
high storage costs, which may mean the business has to raise its prices
increased waste, if the products are
perishable eg fruit and vegetables
reduced income, if the business needs to sell off excess stock at a reduced price
what does logistics mean
Logistics means making sure the correct products are procured and that they will arrive when needed.
3 main elements of logistics
Transportation is the process of getting goods or services from one part of the supply chain to the next
The process of storing items before being shipped to a customer.
Distribution is The commercial activity of transporting resources from their current position to where they are needed.
what is stock control
The process of forecasting stock levels along with closely monitoring stock and reordering when required.
what is just in case?
where business have spare stock to ensure they can continue operating.
what is just in time
Just-in-time is where stock is delivered exactly when it is required in the production process and therefore minimises stock holding costs.
advantages of just in time
- creates more storage space
- products are fresher
- reduces waste so save money
disadvantages of just in time
- hard to react to unexpected changes in demand
- unable to use bulk discounts
- poor customer service is stock is late
what is the purpose of business operations
Operations is responsible for taking resources and using them to create finished goods or services. Operations then ensures that these goods or services arrive on time and to the right quality standards.
what is job production
Job production is when individual products are made one at a time to meet specific customer preferences.
what is batch production
Batch production involves making a set quantity of identical products. This quantity is known as a ‘batch’.
what is flow production?
flow production involves continuously making identical products.
advantages of job
high profit margins
employees gain enjoyment
customers get what they want
disadvantages of job
Highly skilled staff are required, which increases costs
Highly skilled staff may not be available, which can make training staff very expensive
advantages of batch
Able to make a variety of sizes or flavours
Can be partially automated
Can produce more products than job production
disadvantages of batch
Not as flexible regarding customers’ tastes as job production
costs may be higher than in flow production
advantages of flow
large quantaties
consistency in production
automated
disadvantages of flow
profit margins are low
expensive to buy machinary
what is quality control
Quality control is the process of inspecting products and services to ensure that what customers receive is of a high standard.
what is feedback
feedback can take the form of customer questionnaires, conducted either at the point of sale or electronically, to ask about the service customers received from the business.
what are factory inspectors used for
used at the end of production to ensure that products are of the required standard before they reach customers.
advantages and disadvantages of quality control
reduce the number of faulty or sub-standard products that reach customers.
a disadvantage is that these methods only identify faults at the end of production, when they may be more expensive to fix than if they were found immediately. This is because the whole product may need to be removed and rebuilt in order to fix the fault.
what is quality assurance
Quality assurance is a process of carrying out quality checks at specific stages during the production process. This ensures that faults and sub-standard products are found sooner rather than at the end of the production process.
what is a competitive advantage
An advantage gained over a business’ competitors, either by offering lower prices or by offering better products or services that justify a higher price.
why is quality management important
it reduces waste and reduces employee costs
