Topic 2.3.1 Business operations Flashcards
What is the purpose of business operations?
To ensure that the business runs as smoothly and efficiently as possible at the right quantity of the right product,at the right quality,at the right time to the right place.
Advantages of Job production?
Bespoke to customer needs.This means that the business can charge a premium price because its offering a high service.As a result this can help a business increase their gross profit.
Disadvantages of job production?
One disadvantage is that it is expensive. This is because job productive is labour intesive and requires high specialist staff which require a lot of money to pay for..As a result this decreases the gross profit of the business and may eventually lead to business failure.
Advantages of batch production?
One advantage is that it is flexible.This is because manufactures can quickly switch between the batches/products without having to restart the production line.As a result,this helps a business respond to the increase in demand of products from customers.
Disadvantages of batch production?
However there is idle time with the delay in making each batch.This could lead to the business not being able to respond to the increase in demand of products.As a result this can lead to customers less satisfied.
Advantages of flow production?
One advantage is that it helps a business achieve economies of scale.This is because it allows the business to buy in bulk which means that they can buy with lower unit costs.As a result it helps a business increase their gross profit.
Disadvantages of flow production?
One disadvantage is that the products are not personalised to the customers.This may lead to the customers being less satisfied with the business.As a result this could decrease the customer loyalty of the business.
What is productivity?
Productivity measures how much each worker produces over a period of time
Disadvantages of technology in operations?
One disadvantage is that it could delay production.This is because there be errors in the machinery/the machinery breaks down and this will be time consuming to rebuild or make new machinery.As a result this may ruin the relationship between the business and the suppliers if there products are not being sold on time.
Advantage of using technology in operations?
One advantage is that it increases the productivity of the business.This means that customers can get there products in time without there being any delay in there deliveries.As a result this helps increase customer satisfaction of the business increasing customer loyalty of the business.
