Operations Finance and Influence of Business

Question 1

Name 3 types of production process

Answer 1

Job, batch and flow production

Question 2

What is job production and give an example

Answer 2

Each product is individually produced, exactly to the customers requests eg building a bridge or an advertising campaigne

Question 3

What are the advantages and disadvantages of job production

Answer 3

Advantages
1 products usually high quality
2 product made to meet the needs of the customer
3 high job satisfaction

Disadvantages
1 cost of production can be high
2 labour costs often high as skilled labour usually needed

Question 4

What is batch production and give examples

Answer 4

Just one type of product is produced at a time the can change production to another type eg paint in a factory bakers making cakes

Question 5

What are the advantages and disadvantages of batch production

Answer 5

Advantages
1 needs of different customers can be meet in different batches
2 batches made to meet orders. So reduce storage costs
3 may use specialist machines and so cut labour costs

Disadvantages
1 time taken to switch production results in loss of output
2 need to keep stocks up of raw materials in order to switch may cause cash flow problems and increase storage costs
3 less choice for customers compared to job production
4 task can be boring and repetitive for workers

Question 6

What is flow production and give examples

Answer 6

involves an assembly line, one product made constantly and massed produced eg cars

Question 7

What are the advantages and disadvantages of flow

Answer 7

1 large amounts can be produced
2 cost of production reduced by economies of scale
3 use machines to keep costs down
4 improvements in technology means there can be some variety in products by programming

Disadvantaged
1 mass produced goods quality sometimes suffers
2 production lines are expensive to set up
3need to keep in large stokes of materials which may be expensive
4 if a machine breaks the whole of production stops
5 jobs on an assembly line are repetitive and boring

Question 8

What are the 3 aspects of technology

Answer 8

automation computers and robotics

Question 9

What is automation
Give examples
What are the roles of the worker

Answer 9

Production is controlled automatically by programming a computer to control machines which can be mechanical electrical or hydraulic
Used in factories but also to guide and stabilise ships and planes
The role of the worker is to oversee use of the computer and ensure production is taking place correctly

Question 10

How are computers used and in what industries

Answer 10

Computers help automate production,
Bank payments done by computer - suggest cash may one day is appear
Schools use them for attendance, performance data, set homework, parent make payments

Question 11

What is robotics,
Which industries have used them
How and why have robotics developed

Answer 11

A computer is programmed to control a machine to do a job,
In service industry to collect laundry
Trains operate without drivers
Car and electronic industries
Used to do unskilled repetitive tasks but developments in AI robots programmed to do skilled jobs eg to perform surgical operations or go to places where it is unsafe for humans

Question 12

What are the advantages and disadvantages of technology in production process

Answer 12

1 number of workers reduced so costs reduces
2 machines more accurate than humans so less waste
3 production is flexible they can be programmed to make a variety of products
4 machinery never absent from work
5 machines can work 24/7
6 machines can do dangerous boring work humans are reluctant to do
7 new technology leads to new products

Disadvantages
1wworkers are reluctant when new technology is introduced
2 have to pay redundancy
3 new skilled workers can demand high salaried
4 if machine breaks down production stops
5new technology is expensive
6 sometime customers don’t like new technology eg automated telephone calls
7where systems store data there can be security issues

Question 13

What does the term quality of product mean

Answer 13

Product is fit for purpose and meets legislative rules and customer expectations

Question 14

list the benefits of providing a high quality service

Answer 14

1 avoids waste
2 avoids recall
3 maintains reputation and sales

Question 15

2 methods to ensure quality is maintained

Answer 15

Quality control and quality assurance

Question 16

What is is quality control what are the advantages and disadvantages

Answer 16

check product meets required standard - product goes through inspections eg mystery shopper and satisfaction surveys
Advantages
1 helps prevent the sale of faulty good
2 production is not disrupted
3 businesses maintains its reputation

Disadvantages
1 wasted materials when products are faulty
2 inspection process is expensive
3 workers are not encouraged to be responsible

Question 17

What is quality assurance
What are the advantages and disadvantages

Answer 17

Prevents problems with quality,
Advantages
1 maybe less waste
2 workers feel valued as given a responsibility
3 improved reputation
Disadvantage
1stops production which raises costs when employee stops to check quality
2 cost to train workers to assess
3 worker may worry about extra responsibility

Question 18

List 3 ranges of selling methods used by a business

Answer 18

E commerce
Face to face
Telesales

Question 19

What is e commerce

Answer 19

bringing buyer and seller together electronically

Question 20

What is the influence of e commerce on business activity

Answer 20

1 it is fast changing so needs to stay up to date on developments
2 location for most means you can work anywhere as long as you have a phone line
3 new skill development - may need to recruit, some staff feel threatened when new technology is introduced
4 levels of employment -can increase or decrease
5 create new department - may have dpecific arm for online sales
6 click and collect - solves problems of delivery when people are not in or goods not in stock when they visit store

Question 21

Advantages and Disadvantages of e commerce

Answer 21

Advantages
1 can sell world wide so increase sales and profit
2 no restriction on business hours
3 small businesses can look very professional with little cost
4 lower operating costs so improve profit

Disadvantage
1 worldwide competition
2 problems delivering and returning goods and accepting refunds - you are relying on other companies
3 online security
4 advances in technology

Question 22

What are the advantages and disadvantages to the customer of e commerce

Answer 22

Advantages
1 easy to do price comparison and therefore buyer gets best deal
2 7 day availability
3wider range of products

Disadvantages
1 lack of personal contact
2 hard to return goods
3only an image of the goods is seen
4 security
5 methods of payment are restricted

Question 23

What is face to face selling
What are the advantages and disadvantages

Answer 23

Usually retailer selling in shop
Advantages
1customer can get advice in shop
2 quality of service
Disadvantages
1 shops expensive to operate
2 poor weather puts people off going out
People usually know what they want so don’t need face to face

Question 24

What is telesales what are the advantages and disadvantages

Answer 24

Bridge between e commerce and face to face
Advantage
1customers can haggle for a better deal when renewing contracts eg phones and insurance
Disadvantages
1 business needs trained staff to deal with situations and deals
2 customers at home to generally not like receiving cold calls

Question 25

Why’s is customer service and after sale care important

Answer 25

A business must a least keep its existing customers it is a way to keep customers informed

Question 26

What does the consumer rights act 2015 state

Answer 26

that goods and services bought must be of satisfactory quality fit for purpose and as described

Question 27

List 4 other rights

Answer 27

1 within 30 days faulty goods must be returned to get a full refund
Within 6 months if product develops a fault it is presumed a fault was there when bought it is up to the seller to prove fault is with customer
`After 6 months customer must prove the fault was there when delivered
4 For services if work not completed to a standard or on time customer can sk for a reduction or for work to be redone

Question 28

What is the impact of consumer law on a business

Answer 28

1 it must ensure goods produced are up to standard
2ensure safety of goods and avid injury claims
3 loss of reputation

Question 29

What factors influence location of a business

Answer 29

1 cost of production at different sites can vary because of cost of site or premises, transport costs - if there are roads railways ports airports in the area that will keep transportation of raw goods lower, government costs - may influence where businesses locate and offer grants to go to certain areas or lower rates

2 proximity to markets - being near to customers is crucial

3 proximity to raw material - lower cost of transporting them
4 Proximity of labour - many businesses need different skills on workforce

Question 30

What is procurement

Answer 30

the management of buying and purchasing
They identify goods to buy - where to buy and when
Choosing supplies - consider quality price and reputation
Order goods - receive delivery and decide how much to order

Question 31

What are the impacts of logistics and supply on the business

Answer 31

Time - need delivery to do job
Reliability of supply - need goods to sell
Length of supply chain
Costs