Topic 2.3 Making operational decisions

Question 1

What are the 3 types of production method

Answer 1

Job
Batch
Flow

Question 2

What is the advantage and disadvantage of Job production?

Answer 2

Advantage:
- Meet customer needs directly  
- Able to charge high prices
Disadvantage:
- Skilled workers are needed
- high cost (labor and raw materials)

Question 3

what is the advantage and disadvantage of batch production?

Answer 3

Advantage:
- Able to produce a higher volume then job
- may have some machinery which increases productivity
disadvantages:
- May need skill workers
- productivity is reduced when switching between batches

Question 4

What is the advantage and disadvantage to flow production?

Answer 4

Advantage:
- High productivity as it is automated 
- no need for a skilled workforce
Disadvantage:
- Start up cost will be expensive 
- workers are likely to be unmotivated due to being specialised

Question 5

What is the impact of technology on operations?

Answer 5

advantages:
- Speeds up production process
- lower production cost
- mistakes and errors are less likely to occur
disadvantages:
- costly investment 
- can quickly become obsolete
-employees may need to be trained in order to use the equipment.

Question 6

What is a procurement?

Answer 6

The process of selecting a supplier . They make a agreement of payment term and contract details

Question 7

What is logistics?

Answer 7

The process of getting goods and services to a different stage of the supply stage.

Question 8

What are the advantage and disadvantage of procurement and logistics?

Answer 8

advantages:
Ensures that the business has the right amount of raw materials at the right time.
- less waste which leads to less cost
- keeps production flowing meaning increase in sales

Question 9

sales process

Answer 9

• strong product knowledge
• efficient services
• customer engagement
• customer feedback
• Post-sales service