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Business paper 2 > Operations > Flashcards

Operations Flashcards

1
Q

What is a production process

A

a method of business production - job,batch,flow

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2
Q

what is job production

A

a method of production when products are made individually

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3
Q

what are the advantages of job production

A

high quality items
business can charge a high price

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4
Q

what are the disadvantages of job production

A

high cost - skilled workers
production may be slow

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5
Q

what is batch production

A

a method of production when one type of product is made and then production is switched to make a different product

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6
Q

what are the advantages of batch production

A

batches can be varied to meet customer needs
no storage costs if goods are made to order
cheaper than job

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7
Q

what are disadvantages of batch production

A

machines need resetting between batches
stocks of raw materials may be needed - cost
repetitive and boring for workers

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8
Q

what is flow production

A

production of one product that takes place continuously with an assembly line - also mass production

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9
Q

what are the advantages of flow production

A

large quantities produced
use of machines, automation - cheaper
economies of scale - reduces unit costs

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10
Q

what are the disadvantages of flow production

A

may not be high quality
may need to store large stocks
production can be disrupted
repetitive and boring for workers

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11
Q

what is automation

A

a production process involving machinery that is controlled by a computer rather that a person

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12
Q

what is robotics

A

the use of robots in the production process

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13
Q

what are robotics used for in production

A

machines that can be programmed to do work

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14
Q

what are computers used for in production

A

computers can be programmed to control machines

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15
Q

what is automation used for in production

A

machinery completes repetitive tasks without continuous input from the user

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16
Q

what are the advantages of using technology in production

A

replace workers - reduced costs
productivity is increased
waste is reduced - more accurate
can operate 24/7
can do dangerous jobs - human safety

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17
Q

what are the disadvantages of using technology in production

A

machines can break disrupting production
may be expensive
may need skilled labour to program the computers
storage of customer data must meet laws

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18
Q

what is quality

A

quality refers to a product being fit for purpose

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19
Q

what is a recall

A

when a fault occurs with a product and the business asks for the product to be brought back so it can be repaired or replaced

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20
Q

what is a return

A

goods which customers return to the shop or online retailer because they are unsustainable or faulty.

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21
Q

what does the concept of quality ensure

A

product is fit for purpose
as described/expected
complies with legal requirements

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22
Q

what is a benefit of providing quality goods and services

A

waste is reduced - reduces recalls and returns and products being sold at cheaper prices
good reputation - satisfied customers will buy again, recommend the business

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23
Q

what is quality control

A

a system for inspecting the quality of the goods or services produced and ensuring that they are of the required standard

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24
Q

what are the advantages of quality control

A

stops poor quality goods being sold
production continues while inspection takes place
good quality goods improves reputation

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25
Q

what are the disadvantages of quality control

A

doesn’t prevent waste
inspection can be costly
doesn’t encourage workers to be responsible for quality

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26
Q

what is quality assurance

A

an approach that involves the whole business focusing on quality with the aim of preventing quality problems from arriving

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27
Q

what are the advantages of quality assurance

A

reduce wastage and costs
all workers are responsible for quality so they may be motivated to take care
good quality - better reputation

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28
Q

what are the disadvantages of quality assurance

A

workers may be stressed having to check their own work
production may be disrupted

29
Q

what is face-to-face selling

A

involves direct contact between buyer and seller

30
Q

what are the advantages of face-to-face selling

A

can increase sales
useful when customers like advice
customer can bargain with the seller
can help sales in business-business transactions

31
Q

what are the disadvantages face-to-face selling

A

may not always be convenient
if bargaining profits are reduced
retailer costs are high if a shop is needed

32
Q

what are telesales

A

sales completed over the phone

33
Q

what are the advantages of telesales

A

can increase sales
can ask questions and bargain
may cost less than selling from a shop

34
Q

what are the disadvantages of telesales

A

costs of warehouses to store goods
sellers could cold call which is a nuisance to customers
bargaining may mean less profits

35
Q

what is ecommerce

A

the bringing together of buying and selling electronically

36
Q

what are the advantages of ecommerce to the business

A

increased market - global
can sell 24/7
costs of selling are lower - saving on premises and reduction in need of workers
designers can make business attractive at low cost

37
Q

what are the disadvantages of ecommerce to the business

A

more competition
delivery systems need to be organised
need cyber security for themselves and customers
technology develops so higher costs

38
Q

what are the advantages of ecommerce to the customer

A

can buy 24/7
online selling is easier to find deals and compare prices
increase choice

39
Q

what are the disadvantages of ecommerce to the customer

A

impersonal and may not be able to ask questions
may not have access to technology
customers may have to return at their own cost
if not secure personal data can be taken

40
Q

what are the influences of commerce on a business

A

new skills - relevant skills
levels of employment - less workers - technology
delivery options -speed - drones
business opportunities - worldwide
creation of new departments - online departments
location - warehouses in cheap locations
provision of click and collect services - need storage and staff

41
Q

what are consumer laws

A

consumer laws are designed to protect consumers from immoral sellers

42
Q

what does the consumer rights act ensure

A

goods and services must be:
satisfactory quality
as described
fit for purpose

43
Q

what does as described mean

A

goods must be as the business has described them

44
Q

what does fit for purpose mean

A

the good or service must do what its meant to do

45
Q

what does satisfactory quality mean

A

goods should reflect the price charged for them

46
Q

why do businesses do the consumer law

A

reputation
increased costs if laws are broken

47
Q

what is location

A

the place where the business is situated

48
Q

what is proximity

A

means “nearness to”

49
Q

what are the 5 factors of location

A

costs - land, premises, labour
proximity to market - near customers
proximity to labour - supply of skilled workers
proximity to materials - near raw materials - low transportation costs
government - may pay grants if in an area of low employment

50
Q

what is procurement

A

the management of purchasing within a business

51
Q

what are the 4 stages of procurement

A

1 identifying goods and services to buy
2 choosing suppliers
3 ordering goods and services
4 receiving deliveries from suppliers

52
Q

what are the influences when identifying goods and services to buy

A

which season the business is buying for
changes in fashion
changes in technology affect the products sold

53
Q

what are the influences on choosing suppliers

A

reputation and reliability of suppliers
dependant of quality of goods and services customers want

54
Q

what are the influences of ordering goods and services

A

completing an order form stating what it wants and send it to the supplier

55
Q

what are the influences of receiving deliveries from suppliers

A

a business will arrange for workers to receive goods and have an area where they can be stored

56
Q

what is logistics

A

the process of organising the transport of goods from the seller to the buyer

57
Q

what is a supply chain

A

the chain of businesses involved in the production of a product and its delivery to the user

58
Q

what are the 5 logistical issues

A

time
reliability
length of the supply chain
costs
customer service

59
Q

what is time in logistics

A

the supplier must be able to deliver the goods on time

60
Q

what is the potential problem with time in logistics

A

the supplier may be short of materials or components so production is delayed and sales and revenue is lost

61
Q

what is reliability in logistics

A

the supplier must be able to supply the quantity and quality of goods needed by the customer

62
Q

what is a potential problem with reliability in logistics

A

if the supplier is short of materials they may have to delay or stop production so the business could lose sales and revenue

63
Q

what is length of supply chain in logistics

A

a long supply chain has an increased risk of problems occurring along the chain

64
Q

what is a potential problem of length of supply chain in logistics

A

a business which needs to make components may not get materials and so cannot produce the components its customers need to assemble the product

65
Q

what is costs in logistics

A

the customer will want delivery costs to be low as possible but not at the expense of reliability

66
Q

what is a potential risk of costs in logistics

A

high delivery costs make the total production costs too high so they may not be able to sell their products to make a profit

67
Q

what is customer service in logistics

A

supplier need to provide a customer service to deal with problems and enquiries from its potential actual customers

68
Q

what is a potential problem with customer service in logistics

A

may lose its customers if businesses thst buy from it are not happy with the service that they receive

Business paper 2 (2 decks)

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