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Business Studies - Unit 1 > Topic 3: Business Operations > Flashcards

Topic 3: Business Operations Flashcards

- Types of Production - Methods of Manufacturing - Quality Assurance - Health and Safety in Manufacturing

1
Q

What is production?

A

Production refers to the creation of either goods or services for customers.

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2
Q

What are the three types of production?

A

Primary
Secondary
Tertiary

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3
Q

What is primary production?

A

Primary production is the sourcing of raw materials from the ground or the sea.

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4
Q

Name some examples of primary production

A

Farming
Fishing
Mining
Quarrying
Forestry
Oil drilling

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5
Q

What is secondary production?

A

Secondary production takes the raw materials produced by the primary industries and works on it to manufacture finished goods.

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6
Q

Name an example of secondary production

A

Wood extracted by the primary industry would be manufactured into tables and chairs

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7
Q

What is the tertiary sector?

A

Tertiary production provides services to all other industries and to members of the public.

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8
Q

Name some examples of tertiary production

A

Shops
Banking
Marketing
Insurance
Transport
Hospitality
Education

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9
Q

What is de-industrialisation?

A

This is a move away from the primary and secondary sectors towards employment in the tertiary sector.

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10
Q

What are the rasons for changing trends across the types of production? - Mechanised work

A

Work has become more mechanised than in previous years when work was done manually. Many manufacturing factories now have machines/robots resulting in a loss of jobs.

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11
Q

What are the rasons for changing trends across the types of production? - Agriculture

A

The agriculture industry’s price of goods has been reduced. Milk is sold cheaply in supermarkets making it difficult for farmers, forcing them to close.

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12
Q

What are the rasons for changing trends across the types of production? - Raw materials

A

There is little raw materials in the North of Ireland, so fewer people are therefore needed in industries.

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13
Q

What are the rasons for changing trends across the types of production? - Traditional Industries

A

Many traditional industries in the North of Ireland have closed down due to foreign goods coming on to the market at cheaper prices.

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14
Q

What are the rasons for changing trends across the types of production? - University

A

Many young people are now going to university and taking up professional careers rather than work in primary and secondary sectors.

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15
Q

What are the rasons for changing trends across the types of production? - Leisure Activities

A

Leisure activities are very big, so entrepreneurs have moved into that market.

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16
Q

What are the rasons for changing trends across the types of production? - Demand

A

There is more demand for services such as education, banking, insurance etc. therefore increasing the number of employees needed in these areas.

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17
Q

Name the four methods of manufacturing.

A
  1. Job
  2. Batch
  3. Flow
  4. Process
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18
Q

What is job manufacturing?

A

Job manufacturing is where one single item is completed at a time and is often produced to the customer’s individual specification.

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19
Q

Name some examples of job manufacturing

A

House plans
Specifically designed wedding dress

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20
Q

What are the advantages of Job Manufacturing?

A
  1. The product is made to the customer’s exact requirements
  2. Quality of goods is very high
  3. Manufacturers can charge a higher price
  4. There is greater flexibility in design
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21
Q

What are the disadvantages of Job Manufacturing?

A
  1. Increases the average cost of production
  2. Requires specialist labour
  3. Slow production process
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22
Q

What is batch manufacturing?

A

Batch manufacturing is used when several of the same product are made at one time.

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23
Q

Name some examples of Batch Manufacturing

A

Bread
Newspapers

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24
Q

What are the advantages of Batch Manufacturing?

A
  1. Reduces the need for skilled and flexible workforce
  2. Allows economies of scale in purchacing and production
  3. Machinery may be used
  4. Manufacturing is faster
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25
What are the disadvantages of Batch Manufacturing?
1. All equipment must be cleaned and reset between jobs, which looses time 2. Products are not made to the exact requirements of the customer 3. Larger inventories of raw materials must be kept 4. More space is required for working and storage
26
What is flow manufacturing?
Flow manufacturing occurs when production takes place as a continuous process. The product is produced along an assembly line with components and parts being added at each subsequent stage.
27
Name some examples of Flow Manufacturing.
Motor vehicles Toys Televisions
28
What are the advantages of Flow Manufacturing?
1. The final product is less expensive 2. Large quantities can be manufactured 3. The quality of the product is standardised 4. Machinery can be used so labour costs are reduced 5. Unskilled wages further reduce costs 6. Assembly can run continuously 7. Manufacturing is fast 8. Takes full advantage of economies of scale
29
What are the disadvantages of Flow Manufacturing?
1. The work is repetitive and boring 2. There is an increased risk of accidents 3. Employee motivation is low 4. The products are all identical 5. Large capital investment is required 6. Large buildings are usually needed 7. Machinery breakdown can halt manufacture 8. There is a loss of traditional skills
30
What is process manufacturing?
Process manufacturing refers to the manufacturing of processed goods which cannot be disassembled.
31
Name some examples of process manufacturing.
Food and beverages Petrol Paint
32
What are the advantages of of Process Manufacturing?
1. Large quantities can be manufactured 2. Machinery can be used so labour costs are reduced 3. Manufacturing is fast 4. Manufacturing consistency as it has a clear detailed formula
33
What are the disadvantages of Process Manufacturing?
1. Large capital investment is required 2. Large buildings are usually needed 3. Machinery breakdown can halt manufacture
34
What is specialisation?
Specialisation is when an employee concentrates on one particular operation, and does it all the time.
35
What are the four types of specialisation?
1. Product 2. Process 3. Function 4. Country
36
Describe the four types of specialisation
1. Product - some businesses specialise in making one type of product (e.x tayto and crisps) 2. Process - an employee specialises on one specific process in a business 3. Function - an employee specialises on one specific function in a business (e.x marketing, human resources) 4. Country - a country can specialise in making one particular product
37
What are the advantages of specialisation?
1. People can work constantly at jobs which suit their special skills or training. In this way, each person becomes an expert. 2. The finished product should be of higher quality becasue of this level of expertise. 3. Resources can be used effectively and concentrated in one place. 4. Goods are made faster, therefore the output of the business is increased resulting in higher profits.
38
What are the disadvantages of specialisation?
1. Specialised workers are trained in only one skill so other work may be difficult to find if they become redundant. 2. The work may become boring and repetitive, leading to careless mistakes. 3. Any business concentrating on a single industry is very badly affected if that industry should fail 4. Delays or strikes in one section of the production line can cause stoppages throughout the manufacturing.
39
What is division of labour?
Division of labour is when the manuafcture of a product is divided into a number of small stages and each employee is given a single task which may be very narrow.
40
What method of manufacturing is usually associated with division of labour?
Flow manufacturing
41
What are the advantages of Division of Labour?
1. Each worker becomes and expert in one task 2. Lengthy training is avoided as they only need to know one task 3. The work is faster so the costs per unit of manufacture are reduced 4. Reduced costs mean lower prices to the customer 5. Lower prices will mean more sales and higher profits 6. Time is saved because workers don't have to move between jobs 7. Tools and machinery are only used if and when needed
42
What are the disadvantages of Division of Labour?
1. Boring and repetitive work 2. Bored workers can cause accidents 3. Workers may not take pride in their work, this leads to poor quality 4. Delays or strikes can stop the production line completely 5. There is a loss of traditional skills 6. Goods produced by this method lack variety 7. Workers can feel isolated from each other 8. Redundant employees would have difficulty in finding other work becasue they are so narrowly trained.
43
What will good inventory control do?
- Improve efficency because manufacturing will be constant - Enable the business to always meet demand - Give the business a competitive edge over other businesses - Ensue that capital is not lying idle
44
What may poor inventory control do?
- Mean that consumer demands cannot be met - Lose business and goodwill - Require extra warehouse space - Risk some perishable goods going out of date - Use finanace inefficiently
45
What are the four methods of inventory control?
1. Minimum Inventory Control 2. Batch Crontorl 3. First In First Out (FIFO) 4. Just In Time
46
What is Mimimum Inventory Control?
This is whene the business works out the minimum amount of inventory that it can focus with. Inventory is re-ordered when that minimum level is reached.
47
Advantages of Minimum Inventory Control?
- Less warehousing space needed for storage - Ensures that inventory is only recorded when it reaches a certain level - Capital is used effectively within the business
48
Disadvantages of Minimum Inventory Control?
- There may be a delay between ordering the goods and having them delivered, thus the factory having to cease production until the inventory arrives - Businesses can lose customers if goods are not delivered - It puts pressure on the suppliers
49
What is Batch Inventory Control?
This method is associated with process manufacturing. It is where a business controls stock levels in batches.
50
What is First In First Out Inventory Control?
This method is based on selling the oldest inventory first and selling or using the inventory in rotation
51
Advantages of First In First Out Inventory Control?
- This method is easy to understand and operate - This method helps to prevent products going past their sell by date - When calculating closing stock (whatever is not sold by the end of the day) it is more likely to reflect the current market valuation
52
Disadvnatges of First In First Out Inventory Control?
- It can require large warehouing space to be able to rotate stock - It can be time-consuming due to having to rotate old stock with new stock around - It can be difficult to calculate the price of products if many different batches were ordered at different prices
53
What is Just In Time Inventory Control?
This method involves products being manufactured just in time for them to be sold
54
Advantages of Just In Time Inventory Control?
- Capital is used very effectively - Warehousing is not needed for storage - If faults occur in supplies, the business does not have a large number of the fault items - There is no waste by having excess inventory - The finished product should be cheaper for the consumer to buy
55
Disadvantages of Just In Time Inventory Control?
- The business is very dependant on having a very efficient ordering system - Manufacturing could be halted if the wrong goods are delivered at the last minute - It puts severe pressure on suppliers - The company and its suppliers must work together closely
56
The Impact of Technology on Manufacturing: An improvement of the quality of the finished product.
As a result of the use of technology, the quality of the product is **standardised** and the possibility of human error is minimised
57
The Impact of Technology on Manufacturing: The development of new products
Improved methods of research and development would lead to new products being added to the business' range.
58
The Impact of Technology on Manufacturing: An increase in the business' production level
A fully mechanised business can work 24 hours a day with no interrruptions. This would have the effect of increasing the level of output.
59
The Impact of Technology on Manufacturing: A decrease in the production costs per unit
Increases in production lead to the benefits of **economies of scale** which reduces overall costs per unit of production
60
The Impact of Technology on Manufacturing: Higher levels of profit
Increased production and sales, as well as reduced costs lead to improved profits for the business and improved efficiency overall
61
The Impact of Technology on Manufacturing: Greater customer satisfaction
An improvement in the quality of the business' product and the speed of its service would lead to a larger number of satisfied customers. Computers can also monitor stock levels which would result in better customer satisfaction
62
The Impact of Technology on Manufacturing: Improved motivation of workers
Workers enjoy being a part of an organisation which is progressive and are also motivated by the opportunitites provided by the business
63
The Impact of Technology on Manufacturing: Improved information and communications systems
Internal and external communications are improved by the installation of the internet and e-mail systems. Access to information is improved by the use of computer based systems using database and spreadhseets as well as word-processing.
64
The Impact of Technology on Manufacturing: (Nagative) Possible redundancies of employees
The increase of automated jobs can cause staff redundancies. Previous skills are no longer required and new ones are needed.
65
The Impact of Technology on Manufacturing: (Negative) Retraining programme
A progarmme of continuous training is required to keep employees up to date with the latest development in technology. This is expensive for the business for the business to sustain.
66
The Impact of Technology on Manufacturing: (Negative) Capital costs
The installation, updating and maintainance of technology requires a substantial capital investment. This costly investment is often imposible for small businesses to fund.

Business Studies - Unit 1 (3 decks)

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