Operations Flashcards
what are the 3 types of production?
JOB - products are made individually
BATCH - product is made and changed to make another
FLOW - product are made in assembly lines
A and D of job production
A - tends to be high quality/made to suit customer needs
D - can be high cost as it requires skilled labour
A and D of batch?
A - can be varied to meet customer need
D - automation that needs to be reset have high costs
A and D of flow?
A - large quantities can be made at once
D - production can be disrupted
factors affecting quality of product?
production method
employee motivation
What is quality control?
checking a finished product to make sure it meets required standard
A and D of quality control?
A - can prevent faulty goods being sold
D - can lead to waste as faulty good is disposed
Quality control - Mystery shopper.
A person pretends to be a customer and checks services are up to standard
What is quality assurance ?
good is checked during production to prevent faults
A and D of Quality assurance ?
A - reduces amount of waste
D - production may be slow because of constant checking
what is E commerce ?
bringing buyer and seller together electronically
Advantages to BUSINESS of e commerce?
open at all times
sell world wide
Disadvantages to BUSINESS of e commerce?
worldwide competition
problems with delivery and returns
online security
changes due to e commerce - location
business can locate anywhere but need to consider roads good for delivery
changes due to e commerce - employment
Businesses can make staff redundant for lack of technology skill decreasing employment.
changes due to e commerce - delivery options
delivering faster than competitors will attract more customers
changes due to e commerce - click and collect
customers might not be home for delivery so businesses need to consider this.
changes due to e commerce - new skill development
businesses need a work force with skilled workers running the websites. extra training requires extra costs
changes due to e commerce - new departments
businesses need a new department that deals with online sales
Advantages to CUSTOMERS using e commerce
wide range of products available
24/7 availability
Disadvantages to CUSTOMERS using e commerce
lack of personal contact
can only see online images
A and D of face-to-face buying and selling?
A - customer can bargain with seller
D - may not always be convenient for customer
A and D of telesales
A - may cost less than selling in a shop
D - costs are involved (e.g warehouse to store goods)
What are the factors affecting a business location?
Costs of land
proximity to skilled labor
proximity to customers
proximity to raw materials
define passing trade and footloose?
Passing trade - products customers buy unintendedly
Footloose - customers sells product virtually and dont need a physical store
what is proximity to market?
business needs to be near it’s customers to sell it’s goods or service. e.g hairdressers or doctors
What is proximity to raw materials?
The closer a business is to it’s suppliers the faster extra goods can be delivered.
what is proximity to labor?
Some businesses need highly skilled workers more than others e.g hospitals need more than retailers
what is cost of land/site ?
Costs of land varies depending on the area. can be expensive is a prosperous area where there will be lots of customer but cheaper in an isolated area
what are the stages of procurement?
- identifying good and service to buy
- choosing suppliers
- ordering good and service
- receiving deliveries from suppliers
Things to consider when identifying good or service
Time of year
changes in technology
changes in fashion
Things to consider when choosing suppliers
The quality of the goods
Reputation of the suppliers
Things to consider when ordering goods and service
Amount to order
prices per amount
Things to consider when receiving deliveries from suppliers
deliveries need to be organised
what are the logistics and supply decision affected by?
TIME - Suppliers must be able to deliver goods on time
RELIABILITY - Must be able to supply quantity and quality needed
LENGTH OF SUPPLY CHAIN - long supply chain increases risk or problems
COSTS - customer will want delivery costs to be as low as possible
CUSTOMER SERVICE - supplier will need to provide customer service to deal with problems
A and D of after service sales
A - Increases sales as customer can buy with confidence
D - costs in training staff to deal with refunded goods
A and D of customer service
A - Increases sales as customer feels confident abt seller
D - costs to train workers to deal with customers
A and D of product knowledge
A - customers are given info so will likely buy the product
D - Costs in training staff
A and D of customer engagement
A - customer feels comfortable so will likely buy product
D - costs to train staff
what is the consumer law ?
Law made to protect customers. consumer right act 2015
what does product have to be for consumer law?
- fit for purpose
- of satisfactoty quality (cant be damaged/faulty)
- as described
what is the right within 30 days?
customer have 30 days to return a faulty good for a FULL refund. (doesn’t apply with digital products)
What is the right act within first 6 months?
if fault develops it is assumed faulty was there at time of purchase. seller may need to prove it wasn’t and customer can argue for a price reduction or replacement
what is the rights act after 6 months
customer must prove fault was there at time of delivery and have only up to 6 years to prove claims
Advantages of good quality goods
increases reputation
increase sales
What are the roles of procecument?
identifying goods to buy
ordering good or service
choosing suppliers
receiving deliveries from suppliers
importance of having reliable suppliers (A/D)
Delivery time - (must deliver goods in time/ business could lose money or reputation)
Reliability - (must supply quality and quantity needed by customer/ bad quality gives bad reputation)
costs - (customers don’t want high delivery cost/ high delivery costs may increase total production costs)
Risks of bad quality
Reputation
Competition
Waste
Advantages of automation is businesses
reduces costs as machines do all the work and less workers are need.
machines make fewer mistakes than humans so that can save costs by reducing waste
Disadvantage of automation in business
machines break down and will slow down production
workers may need training to be able to work with new technology.
