Revision Summary-Section 3 Flashcards
What is a supply chain?
The supply chain refers to all the businesses, people and activities that take part in the production processes from the start unit it gets to the customer
List 4 types of businesses that are usually apart of a supply chain
1.Manufacturers
2. Suppliers
3. Distributors/wholesalers
4. Retailers
What does procurement mean
Procurement involves selecting suppliers, establishing the terms of payment and negotiating the contract.
Explain how effective procurement and logistics can improve the efficiency of a business
Effective procurement and logistics improve business efficiency by reducing costs minimizing delays optimizing inventory and ensuring timely delivery of goods and materials.
Explain how effective procurement and logistics can effect the unit costs of products.
Effective procurement and logistics reduce unit costs by lowering material expenses optimizing transportation and improving operational efficiency.
Explain why a good relationship with suppliers is a benefit of managing a supply chain effectively.
A good relationship with suppliers benefits supply chain management by ensuring reliable delivery better pricing priority access to materials and improved collaboration which reduces delays and enhances overall efficiency.
Why is it important that a firm reduces waste and unnecessary costs in its supply chain?
Reducing waste and unnecessary costs in a supply chain increases profitability improves efficiency and enhances sustainability making the business more competitive.
What is meant by job production
Job production is a method of production in which a product is supplied to meet the exact requirements of a customer.
Give an example of a product made by job production.
A custom-made wedding dress is an example of job production.
What is meant by flow production
Flow production is a continuous manufacturing process using assembly lines for mass production.
Give an example of a product made by flow production
An example of a product made by flow production is a car.
Give one advantage of flow production over job production.
Flow production allows for faster production and lower unit costs due to economies of scale.
What does lean production mean
Lean production is a manufacturing approach that aims to reduce waste and improve efficiency by streamlining processes.
What is meant by a just-in-time (IT) production method?
Just-in-time (JIT) production is a method where materials are produced or delivered only when needed, minimizing inventory and waste.
Explain why a business may prefer to use a just-in-case (JIC) approach rather than JIT.
A business may prefer a just-in-case (JIC) approach to ensure it has enough inventory to handle demand fluctuations and avoid stockouts.
Give three reasons why it’s good for a business to ensure customers get good quality products.
1.Good quality products enhance customer satisfaction and loyalty.
2.High-quality products lead to fewer returns and complaints, reducing costs.
3.Consistently delivering quality boosts the business’s reputation and brand image.
Give two costs associated with maintaining quality standards.
1.Inspection and testing costs for ensuring products meet quality standards.
2.Training and staff development costs to maintain proper quality control processes.
Why is it advantageous for a business to spot quality problems in the production process?
Spotting quality problems early in the production process helps reduce defects minimise waste and avoid costly rework or customer complaints.
What does TQM stand for? And what does TQM involve?
TQM (Total Quality Management) is a company-wide approach to improving processes products and services through continuous improvement and a focus on customer satisfaction.
Give one advantage of TQM.
One advantage of TQM is that it improves customer satisfaction by consistently delivering high-quality products and services
Give one reason why a growing business may find it difficult to maintain high quality standards.
A growing business may struggle to maintain high quality standards due to the increased complexity of managing larger production volumes and expanded operations.
Briefly describe the steps in a sales process.
The steps in a sales process typically include:
1.Lead generation – Identifying potential customers.
2.Qualification – Assessing if leads are viable prospects.
3.Presentation – Demonstrating the product or service to the customer.
4.Handling objections – Addressing concerns or questions.
5.Closing – Finalizing the sale and securing a commitment.
6.Follow-up – Ensuring customer satisfaction and fostering repeat business.
Explain why having good product knowledge allows sales staff to provide good customer service.
good product knowledge enables sales staff to answer questions, recommend suitable products and build trust resulting in better customer service.
Give one way in which sales staff could make sure they engage positively with their customers.
