Operations Management Flashcards
What are the disadvantages and advantages of job production?
They require high skilled labor and have high labour-to-capital ratio (a lot of workers are needed but little financial investment )
They’re expensive
Time consuming to make
They’re high quality
What is job production?
When one product is manufactured at a time normally it will have a unique design
What is batch production?
The firms make a batch of identical products for a limited amount of time ę.g furniture, houses
Why is it important that a business operates efficiently ?
It lowers operating costs ➡️ higher profits
What does it mean if a business operate efficiently?
For example producing the maximum amount possible with the minimum input of people and raw materials
How does the quality of a good/service that a business supplies affect the customers?
If the quality is bad , customers are unlikely to return they may even bad mouth the businesses causing market share decrease
How can firms prove their companies provide a good level of quality?
BS 5750 is a quality award given by the British Standards Institution that proves the business have high quality standards
Being a member of a Trade Association ę.g Federation of Master Builders can signify a firm meets particular standards of workmanship
Give the 6 steps to good customer service
Accurate product information
Reliability
dealing with customer questions and concerns
Fulfilling of the order requirements
delivering on time
after sales support warranties- if the product goes wrong
How has ICT helped businesses??
Ę commerce saves money on paper as brochures can be printed online opposed to being printed off
Business’ that sell online don’t have to worry about property costs
Ecommerce helps a business sell to international markets as the Internet can be accessed all over the world
How has ę commerce helped and disadvantaged customers?
They can shop at any time
It’s easier to compare prices from different brands
It’s possible to track progress of an order
It can be hard to be able to tell if a firm is trustworthy
Credit card details could be used by others illegally
Products can’t be seen in person before delivery
If goods are unsuitable it can be difficult to exchange them or get your money back
Customers tend to receive a lot of annoying direct mail ( advertising products)
