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AQA GCSE Business > Topic 3 > Flashcards

Topic 3 Flashcards

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1
Q

What is production (or operations) management?

A

Production (or operations) management rferes to all the activities in managing the transformation process.

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2
Q

What is production in business

A

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

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3
Q

What is job production

A

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

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4
Q

What is flow production

A

Flow production is when an item moves continuously from one stage of the process to another

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5
Q

What is specialisation in business

A

Specialisation occurs when individuals focus on a limited number of tasks

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6
Q

What is lean production

A

Lean production is an approach to production that aims to minimise waste

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7
Q

What is just-in-time (JIT) production

A

JIT production holds as little stock as possible. Items are ordered just in time to be used

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8
Q

What is Kaizen in business

A

Kaizen means ‘continuous improvement’. It is an approach to production that aims to achieve change from a series of small steps

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9
Q

What is just-in-case (JIC) production

A

JIC production holds stocks just in case there is a delay from supplies or a sudden unexpected increase in demand

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10
Q

What is ‘PURCHASING economies of scales’

A

Purchasing economies of scale occur when the cost per unit falls if large orders are placed with suppliers due to a bulk discount

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11
Q

What is procurement?

A

Procurement (or purchase) involves selecting suppliers, establishing the terms of payment and negotiating the contract

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12
Q

What is the supply chain

A

The supply chain refers to all the businesses, people and activities that take part in the production processes from the start until it gets to the customer.

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13
Q

What are logistics

A

Logistics refers to the movement of goods, services, information and money throughout the production process

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14
Q

What is customer service

A

Customer service is the part of a business’s activities that is concerned with meeting customers’ needs as fully as possible

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15
Q

What is customer loyalty

A

Customer loyalty means that a business’s customers make repear purchases because they prefer the business’s products to those of its rivals

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16
Q

What are global markets

A

Global markets are made up of customers from across the world

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17
Q

What is data analysis

A

Data analysis involves gathering and examining data to provide useful information that can be used for decision-making.

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18
Q

What is a buffer stock

A

A stock of raw materials held in reserve to protect the production process from unforeseen shortages

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19
Q

What is inspection

A

Inspection is the Testing/examining items to check that materials or items conform to the specified requirements/standards.

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20
Q

What is management

A

Management is organising/coordinating business activities in order to fulfill production and meet the business’ objectives

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21
Q

What is product knowledge?

A

An in-depth understanding of the features, use and application of the good/service that will enabke the person selling it to provide any information that the purchaser wants before committing to buy.

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22
Q

What is it meant by ‘product recalls’

A

The withdrawal from sale by the manufacturer of a defective or contaminated item

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23
Q

What does productivity mean in business

A

The amount produced by a worker/machine/factory in a given time; the ability to produce more output with fewer resources

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24
Q

What does purchasing actually mean in business

A

The business buys the goods and services that it needs for producing the goods it sells or for delivering the servuces it sells

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25
Q

Why do some businesses use raw materials

A

Businesses that use raw materials that are heavy and/or bulky choose to locate close to their suppliers to reduce the cost of transport or storage.

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26
Q

What is Total Quality Management (TQM)?

A

TQM is a philosophy that involves everyone in the business in the quest for continual improvement in the attitudes, practices, structures and systems that combine to create a top-quality product

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27
Q

What is unit cost and how do you calculate it?

A

Unit cost is the average cost of each unit

Unit cost = total cost / quantity

28
Q

What are ‘after-sales services’?

A

Meeting of customer needs after they have purchased the product. For example; by repairing or servicing the product

29
Q

Who are suppliers

A

Supplies are businesses/people that provide goods or services for businesses

30
Q

What do businesses consider when choosing suppliers (PQR)?

A
  • price
  • quality
  • reliability
31
Q

What does ‘price’ mean terms of choosing suppliers?

A

How much the business is willing to pay for the suppliers

32
Q

What does ‘quality’ mean terms of choosing suppliers?

A

The extent to which the suppliers meets or exceeds the expectations of their customers

33
Q

What does ‘reliability’ mean terms of choosing suppliers?

A

The ability of the supplier to consistently meet the requirements of the business

34
Q

What us just in case (JIC) production equal to?

A

JIC = buffer stocks

35
Q

What are some advantages of JIC production?

A
  • ability to deal with fluctuations in demand
  • reduces chances of production stopping if there are any problems with suppliers
  • allows company to negotiate bulk discounts and switch suppliers easily
36
Q

What are some disadvantages of JIC production?

A
  • stock may go out of date
  • more difficult to tailor products to individual customers needs
  • costly to share stock
37
Q

What does it mean by ‘efficiency in production’?

A

Making the most possible out put given their inputs (LLCE).
- land
- labour
- capital
- enterprise

38
Q

What are some examples of efficiency in production?

A
  • reduced levels of waste
  • lower average unit costs
  • increased profitability (due to higher productivity)
39
Q

What are average unit costs and how do you calculate it?

A

Average unit costs = total costs/output

They are a measure of how effectively a business is using its scarce resources to generate output

40
Q

What are some advantages of JIT production?

A
  • lower storage costs
  • less stocks go out of date
  • excellent relationship with suppliers
  • products can be customised for each other
41
Q

What are some disadvantages of JIT production?

A
  • may not be able to deal with sudden increase in demand
  • suppliers may not be reliable
  • damage to brand if they cant meet customer orders
  • requires excellent relationship with suppliers
  • may reduce chances of negotiating lower prices on bulk orders
42
Q

What are some advantages of job production?

A
  • high levels of customer satisfaction
  • can charge high prices for unique products
  • workers tend to be highly skilled and motivated by the interesting work
43
Q

What are some disadvantages of job production?

A
  • highly skilled workers require higher wages
  • high prices may exclude many customers
  • production time consuming
  • lack of opportunities to benefit from economies of scale
44
Q

What are some advantages of flow production?

A
  • product production is consistent
  • labour costs are lower
  • materials purchased in large quantities so are cheaper
  • large number of products reduced
45
Q

What are some disadvantages of flow production

A
  • machinery is expensive
  • workers are not motivated (repetitive work -> reduced productivity)
  • if one part of the line breaks, the whole production process will stop until repaired
46
Q

How would you measure the quality of goods? (PRPRD)

A
  • physical appearance
  • raw materials
  • performance
  • reliability
  • durability
47
Q

How would you measure the quality of a service?

A
  • customer satisfaction
  • skill/knowledge of provider
  • waiting time
  • speed of service
48
Q

What are some benefits of providing a good quality product?

A
  • creates a positive brand image and unique selling point (USP)
  • can charge high prices
  • reduces waste
  • increases efficiency
  • lower costs of dealing with complaints and refunds
49
Q

What are some costs of providing good quality?

A
  • training staff
  • costs of raw materials increase
  • more money spent (less profits accumalated)
50
Q

What are some advantages of TQM?

A
  • increased motivation
  • low wastage level
  • achieve certification for quality assurance
51
Q

What are some disadvantages of TQM?

A
  • relies on commitment of employees (they have to believe in the philosophy)
  • training costs cost more
  • time consuming production process
52
Q

What is Total Quality Control (TQC)?

A

External inspector checks quality at the end of the production line

53
Q

What are some advantages of TQC?

A
  • monitored by experts
  • common problem can be identified
54
Q

What are some disadvantages of TQC?

A
  • takes responsibility
  • lack of motivation
  • waste levels high
  • specialist wages may be high
55
Q

How can customer service be effectively provided?

A
  • customer engagement (creating a positive experience)
  • having staff with excellent product knowledge
  • post sales service (user training, help lines, servicing)
56
Q

What are some benefits of customer service?

A
  • customer retention
  • customer referral
  • new customers
  • motivated staff
  • few complaints
  • can charge high prices
57
Q

What are some costs of good customer service?

A
  • staff training (more expensive)
  • time and costs dealing with complaints increase
  • cost of high quality raw materials increase
  • cost of maintaining good premises (fast websites / AI responses) increases
58
Q

What is the sales process?

A
  • contact with customer
  • inform customer of benefits of purchase
  • customer samples
  • price agreed
  • delivery of product
  • post sales service
59
Q

How has ICT changed the way businesses provide customer service?

A
  • through websites (live chats, FAQs, real time delivery tracking)
  • through e-commerce (home delivery, wide range of products, fast AI responses to online customer queries or reviews)
  • through social media (live updates and announcements)
60
Q

What are the four parts of outsourcing? (PPPD)

A
  • production
  • payroll
  • purchasing
  • delivery
61
Q

What are the cons of production in outsourcing?

A
  • Larger businesses may require large quality management facilities and dedicated staff, leading to high expenses.
  • Cost pressures may compel businesses to reduce quality management efforts, potentially resulting in negative consequences for product or service quality.
62
Q

What are the cons of payroll in outsourcing?

A
  • Quality management becomes more challenging as businesses expand.
  • Larger businesses may require extensive facilities and dedicated staff for quality management, leading to high expenses.
  • Cost pressures may result in businesses reducing quality management procedures, potentially harming overall quality.
63
Q

What are the cons of purchasing in outsourcing?

A
  • Outsourcing requires regular monitoring and inspection of the contracted business to ensure they meet the main business’s needs.
  • Continuous oversight ensures quality and compliance with standards in manufacturing or customer service tasks.
64
Q

What are the cons of delivery in outsourcing?

A
  • Outsourcing to high-quality businesses can be costly but ensures high standards and satisfaction.
  • Choosing low-quality businesses for outsourcing may result in problems like late deliveries and poor-quality products.
65
Q

How would quality in a franchise be maintained?

A
  • Franchising makes quality management challenging, requiring strict policies, training, and inspections to maintain consistent service levels across all outlets.
  • Rigorous policies, training programs, and routine inspections are necessary for ensuring franchisees meet performance expectations and maintain quality consistency.

AQA GCSE Business (8 decks)

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