operations

Question 1

what are the 6 key stages of the sales process?

Answer 1

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

Question 2

what happens at the first stage?

Answer 2

Businesses need to ensure that their employees have good product knowledge. Customers expect a high level of product knowledge and customer service.

Question 3

what happens at the 2nd stage?

Answer 3

Businesses need to ensure they attract the attention of potential customers, for example by using
emotive language in their advertising

Question 4

what happens at the 3rd stage?

Answer 4

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.

Question 5

what happens at the 4th stage

Answer 5

the interactions that take place between a business and its customers during the sales process.

Question 6

what happens at the 5th stage?

Answer 6

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.

Question 7

what is the final stage?

Answer 7

After-sales service involves providing support for customers who have bought a product or service from a business.

Question 8

factors that contriubute to good customer service?

Answer 8

knowledgeable, helpful and friendly staff
meeting all legal requirements
quick delivery
efficient service
excellent
post-sales service and support
good product availability

Question 9

advantages of good customer service

Answer 9

increasing customer loyalty
ability to increase prices
increasing customer spending
improving reputation
attracting new customers

Question 10

when would a business interact with customers?

Answer 10

sales, queries, complaints, after sales

Question 11

how is customer service carried out online?

Answer 11

creating a god website
email or online chat
tracking customers online activity
encouraging feedback

Question 12

what does stock control consist of?

Answer 12

raw materials waiting to be used in production
work in progress
finished stock waiting to be delivered

Question 13

what is procurement

Answer 13

Procurement means getting the right supplies from the right supplier, at the right price.

Question 14

consequences of holding too much stock

Answer 14

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

Question 15

what does logistics mean

Answer 15

Logistics means making sure the correct products are procured and that they will arrive when needed.

Question 16

3 main elements of logistics

Answer 16

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.

Question 17

what is stock control

Answer 17

The process of forecasting stock levels along with closely monitoring stock and reordering when required.

Question 18

what is just in case?

Answer 18

where business have spare stock to ensure they can continue operating.

Question 19

what is just in time

Answer 19

Just-in-time is where stock is delivered exactly when it is required in the production process and therefore minimises stock holding costs.

Question 20

advantages of just in time

Answer 20

• creates more storage space
• products are fresher
• reduces waste so save money

Question 21

disadvantages of just in time

Answer 21

• hard to react to unexpected changes in demand
• unable to use bulk discounts
• poor customer service is stock is late

Question 22

what is the purpose of business operations

Answer 22

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.

Question 23

what is job production

Answer 23

Job production is when individual products are made one at a time to meet specific customer preferences.

Question 24

what is batch production

Answer 24

Batch production involves making a set quantity of identical products. This quantity is known as a ‘batch’.

Question 25

what is flow production?

Answer 25

flow production involves continuously making identical products.

Question 26

advantages of job

Answer 26

high profit margins
employees gain enjoyment
customers get what they want

Question 27

disadvantages of job

Answer 27

Highly skilled staff are required, which increases costs
Highly skilled staff may not be available, which can make training staff very expensive

Question 28

advantages of batch

Answer 28

Able to make a variety of sizes or flavours
Can be partially automated
Can produce more products than job production

Question 29

disadvantages of batch

Answer 29

Not as flexible regarding customers’ tastes as job production
costs may be higher than in flow production

Question 30

advantages of flow

Answer 30

large quantaties
consistency in production
automated

Question 31

disadvantages of flow

Answer 31

profit margins are low
expensive to buy machinary

Question 32

what is quality control

Answer 32

Quality control is the process of inspecting products and services to ensure that what customers receive is of a high standard.

Question 33

what is feedback

Answer 33

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.

Question 34

what are factory inspectors used for

Answer 34

used at the end of production to ensure that products are of the required standard before they reach customers.

Question 35

advantages and disadvantages of quality control

Answer 35

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.

Question 36

what is quality assurance

Answer 36

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.

Question 37

what is a competitive advantage

Answer 37

An advantage gained over a business’ competitors, either by offering lower prices or by offering better products or services that justify a higher price.

Question 38

why is quality management important

Answer 38

it reduces waste and reduces employee costs