Operations Management Flashcards
What does production efficiency depend on?
1) The type of product.
2) The level of demand for the product.
3) The cost.
What is job production?
Firm manufactures individual products with a unique design and can be based on a customer’s specification.
What are the advantages of job production?
1) High labour to capital ratio (little financial investment).
2) Easier to customise an item.
3) High quality and unique products will satisfy customers.
What are the disadvantages of job production?
1) Requires highly skilled labour.
2) Expensive and takes a long time.
What is batch production?
Making a limited amount of numerous identical products then stopping, reorganising and making a batch of something else.
What are the advantages if batch production?
1) Less waste than job production.
2) Can produce things in limited quantities.
What are the disadvantages of batch production?
1) Requires equipment and good management skills.
2) Products can’t be customised.
What is quality assurance?
Firm’s attempt to satisfy customers by ensuring that quality standards are agreed and met throughout the organisation.
What affects the quality of the product?
1) Material of the product.
2) Production method used to assemble the product.
How can firms reassure potential customers about the reliability of their products?
Display which quality awards (evidence of high standards) or trade associations they belong to.
What are the benefits of good customer service?
1) Higher customer satisfaction, leading to repeat purchases.
2) Word-of-mouth recommendation from satisfied customers.
What does the Sale of Goods Legislation ensure?
1) Product is fit for purpose.
2) Product matches its description.
3) Product is of satisfactory quality.
What are the benefits of e-commerce?
1) Reduces costs and increases sales.
2) Reaches international markets.
3) Websites can provide customer service.
What are the benefits of online purchases?
1) Buy whenever is convenient for you.
2) Easy to compare prices and products.
3) Progress of delivery can be tracked.
4) Huge range of stock is offered.
What are the problems with online purchases?
1) Impossible to tell whether the website belongs to a trustworthy firm.
2) Credit / debit card details could be hacked.
3) Products can’t be seen.
4) Difficult to refund / exchange products.
5) Customers receive spam emails.
