Operations Management

Question 1

What is meant by Job Production?

Answer 1

This is a method of production in which a product is supplied to meet the exact requirements of a customer.

Question 2

What is meant by batch production?

Answer 2

Batch production is a method of production in which a product is supplied to meet the exact requirements of a customer

Question 3

Explain how production can apply to a service?

Answer 3

To supply a service such as cleaning it is necessary to bring together the following resources:

• people to organise the business and to do the actual cleaning
• cleaning materials and equipment such as vacuum cleaners
• vans and cars to transport cleaners to the houses that need to be cleaned
• fuel to put in the vans or cars

THE PRODUCTION PROCESS BRINGS TOGETHER THESE RESOURCES AND GIVES THE RESULT OF A CLEAN HOUSE.

Question 4

What resources do you need to consider as part of a production process?

Answer 4

1. BUILDINGS AND LAND - is there a factory or an office or shop or land?
2. MACHINERY AND EQUIPMENT - is there cars, vans or Lorraine’s, computers,tills and scanners, land lines mobile phones?
3. PEOPLE - are there entrepreneurs, managers, specialist workers (IT experts for a software company or lawyers for a firm of solicitors), shop floor workers
4. MATERIALS - is there a need for fuel, raw materials, shop items, stationary etc.

Question 5

Give some examples of job production

Answer 5

Job production is a method of production in which a product is supplied to meet the exact requirements of a customer.

This is common in small businesses eg:

Garden design - designer will discuss customers needs, offer his own ideas and supply a product (garden design) that is unique to customer.

Tailors - rather than buy off the peg a customer can go to a tailor and get a suit tailored to the customer’s preference and body shape.

Personal trainers - some people have personal trainers like that weirdo Simon. The trainer will provide a diet and exercise routine to suit the individual customers needs.

Question 6

How can job production provide an advantage to a business?

Answer 6

Using the example of a tailor (small business) he will be unable to manufacture or sell loads of suits. Therefore by offering a bespoke tailoring service he can charge higher prices and offer a superior alternative to an off the peg suit.

The same could be said by going to a florist and buying a personally selected bouquet of flowers as compared to buying a bunch of flowers from a garage.

Question 7

What disadvantages does job production bring to a business?

Answer 7

Job production is an expensive process as each product is different so will take time. This will usually require skilled staff and possible training. This means higher salaries. As such it may be difficult to make a profit unless it can sell the product at a higher price.

Question 8

What is production?

Answer 8

Production is the process of changing inputs such as labour services or raw materials into goods and services that can be sold

Question 9

What is batch production?

Answer 9

Batch production is a method of productio in which a group of similar products are produced at the same time

Question 10

Give some examples of batch production?

Answer 10

Bakeries - A small bakery is likely to produce a batch of one type of bread followed by a second batch of a different type of bread

Wallpaper manufacturers - wallpaper will be produced in batches to ensure same pattern. Whilst the same wallpaper can be produced in many batches each batch could be sloghtly different.

Fish and chip shop - they will cook one type of fish followed by another type of fish.

Question 11

What is 2 advantages of batch production?

Answer 11

Fully utilises machinery and allows employees to specialise in one task.

Cuts down on costs of production - but raw materials in bulk

Question 12

What is a disadvantage of batch production?

Answer 12

As it is producing without having secure a sale it could produce too much and not be able to sell it (food is a big problem coz it goes off.

Can end up wth too much that takes a while to sell.

Question 13

Explain 2 ways that can technology improve efficiency within a business (selling, labour and waste)?

Answer 13

INTERNET - Small businesses can use the internet to advertise and sell their products all over the world. This avoids the cost of expensive national adverts or pay commission t overseas agents.

LABOUR - Technology saves on labour such as automated answering systems that take messages and route calls to the correct employees.

WASTE - Tecnology saves on waste by having motion sensitive lights and taps that are sensored so only run for a few seconds at a time.

Question 14

What is meant by quality in production?

Answer 14

Quality is the extent to which a consumer is satisfied with a product.

Question 15

When will a consumer think a product is good quality?

Answer 15

When the product meets or exceeds the expectations of the customer.

Question 16

Which is more likely to be regarded as good quality:

A night in a very expensive hotel of a night in a cheap hotel?

Answer 16

If you said the night in the very expensive hotel then this may not be right. If the night in the hotel did not meet the customer’s expectations then it is unlikely to be regarded as good quality.

However, the night in the cheap hotel may well be regarded as good quality if it met the cistomer’s expectations.

Question 17

What is meant by customer service?

Answer 17

This is the part of a business’s activities that is concerned with meeting customers’ needs as fuly as possible.

Question 18

What is meant by after-sales service?

Answer 18

this is the meeting of customers’ needs after they have purcahsed a product, for example by repairing or servicing the product.

Question 19

What is meant by premises?

Answer 19

This means the buildings used by business - these may include offices, shops and factories.

Question 20

Give 6 things which can help improve customer service?

Answer 20

This means keeping customers happy. There are a number of ways they can do this which includes:

(i) The products themselves - reliable and safe
(ii) Product information - ustomers need info about product
(iii) After-sales service - good complaints handling, good delivery, exchange or refund without issue, customer advice/support
(iv) Employees - well trained sympathetic employees
(v) Premises - clean, well mainatined, disabled friendly, good facilities - toilets, babies
(vi) Payment - flexible ways of paying

Question 21

What is meant by customer loyalty?

Answer 21

Customer loyalty means that a business’s customers makes repeat purchases because they prefer the business’s products to thos of its rivals

Question 22

Explain the short term advantages of good customer service?

Answer 22

Good customer service results in gaining an edge on competition and may attrack new customers through recommendation.

Question 23

Explain the long term benefits from good customer service

Answer 23

Good customer service is likely to result in the customer buying from business again wich increases revenue and profit.

It may increase market share.

It may produce customer loyalty.

Question 24

What are the main areas of consumer protection in the UK?

Answer 24

1. Labelling of products
2. Sale of Products
3. Using information incorrectly
4. Safety of Products

Question 25

How can Information and Cummincations Technology (ICT) help small businesses to offer good customer service?

Answer 25

WEBSITES - give information about product, help advertise, provide frequently asked questions (opening hours, returns policy), can provide technical support (e.g. copy of manual for electronic item).

E-COMMERCE - can sell product through website such as booking hotel or websites like JD sports. Shopping can take place anytime resulting in higher sales.

SELLING IN GLOBAL MARKET - this allows business to sell to much bigger audiance and it can capitalise on reputation of country for product. So in UK, jams and chutneys are seen as high quality.