Operations Flashcards
What is job production?
Production of one off items to meet the needs of each individual customer
Example of job production
Tailer, specialist cakes
Advantages of job production
Premium price
High quality
Meets individual needs
Disadvantage of job production
Requires skilled workers
Time consuming
Goods are expensive
What is batch production
Identical items are produced in groups with slight variation. Each item passing through the production process at the same time
Example of batch production
Bread, clothes (different sizes)
Advantage of batch production
Meet needs of different customers
Quicker and cheaper production
Disadvantage of batch production
Takes time to switch production- reset machinery
Less choice compared to job production
What is flow production
Items move along the production line in a continuous process
Advantage of flow production
Uses specialist machinery
Suitable for mass production
Large scale
Low cost per unit
Efficient due to the use of machinery
Consistent quality
Disadvantage of flow production
High initial cost
Mistakes or problems can shut down the whole production process
Low variety and choice for customer
Benefit of using technology
More accuracy
Quicker production
Increased competitiveness
Drawback of using technology
High initial cost
Loss of human touch
Hazardous environment
How can business ensure it delivers good quality products or services to customers
By checking the quality of goods before sending
What are the benefits to businesses of giving good quality products to customers
It means a good reputation so more customers which mean more sales which mean more profit
What is a product recall
What a specific batch of a product has problems so the hole batch needs to be taken back and customers need to be aware
What is quality control
Checking quality at the end of the production process
Benefits of quality control
Inspection carried out by professional
Problem areas can be identified and action taken
Drawbacks of quality control
Waste levels can be high
What is quality assurance
Checking quality at each stage of the production process
Benefits of quality assurance
Motivates staff as everyone is given responsibility
Less waste as problem caught early on
Drawbacks of quality assurance
Relies on commitment of all staff
Training must be provided which increases cost of business
What is E-commerce
Buying or selling goods online
Advantage of E-commerce
Sell worldwide
Open 24/7
Price comparison
Disadvantage of E-commerce
Worldwide competition
Lack of personal contact
What is telesales
Selling through the phone
Examples of telesales
Services such as data provider, cleaner or insurance as these do not need to be seen in person
What is face to face
Selling in the shop
Advantage of selling face to face
Opportunity for advice to be given
Provides better experience for customer
Persuade customer to buy product
Disadvantage of selling face to face
Inconvenient to travel
Pressure to buy product
Shops expensive to operate
What is after sales services
Providing support for customers who have bought a product or service from a business.
Benefit of after sales services
Encourage people to buy the product in the first place; it can be used to justify a higher price for the good. It also influences the long-term reputation of the firm and can influence future sales
What is good product knowledge
It is having a good amount of knowledge about the product like it’s function, features, price availability’s as to be able to convince customer to buy it
What is customer engagement
Contact between customer and the business like the experience the customer has when dealing with a business
Why is cost of land important to consider
Cost of land can vary between locations as they’re more customers in the city but land is more expensive than in a small village where they’re is less customers
Why is labour important
There needs to be an adequate supply of workers that have appropriate skills
High unemployment areas are gonna have lower wages
Why is proximity to materials/suppliers important
Some businesses depend on certain raw materials for their product so it needs to be close to be able to get there when it is needed
Why is proximity to market important
How close a business is to its customers
A large footfall means more sales
Not all businesses need to be clew to its customers such as suppliers
4 main roles of the procurement department
- Identifying what goods to buy
- Choice of supplier
- Ordering the goods
- Receiving deliveries from suppliers
Example of time of year that can affect choice of products and services
Christmas, Easter eggs
Example of changes in technology that can affect choice of products and services
New iPhones, ps5
Example of changes in fashion and lifestyle that can affect choice of products and services
Clothes and trends such as fidget spinner
Reliability and quality of supplier
If the deliveries are on time and the quality is up to standard
It can’t help reduce stock holding costs
can add value to a product and allow a premium price to be charged
Speed and flexibility (lead time)
Lead time is the time taken from placing an order to recovering the delivery
If lead time is extend then the business may run out of stock leading to production stoppage or customer dissatisfaction
Length of supply chain
The supply chain is the network between a company and all its suppliers
The longer the supply chain the more difficult it is to control
Cost
Lower cost can lead to lower selling price which creates a USP
However if quality is poor it may have a negative impact on the business
Customer service
Quality of raw materials
Flexibility of to match supply to demand
Speed of delivery
