Topic 3 - Operations

Question 1

What does it mean by Operations?

Answer 1

Is all the activities in managing the transformation process. It takes inputs and delivers them as outputs.

Question 2

What does it mean by Production?

Answer 2

The process of changing inputs such as labour services into goods and services that can be sold

Question 3

What does it mean by Job Production?

Answer 3

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

Question 4

What does it mean by Unique Designs?

Answer 4

If the design is unique it allows businesses to gain advantage over larger rivals

Question 5

What does it mean by Variety and Flexibility?

Answer 5

It allows personal services to be supplied

Question 6

What does it mean by Costs?

Answer 6

Job production is expensive because each product is different so every step is unique

Question 7

What does it mean by Recruitment and Training?

Answer 7

Is requires skilled employees so it is difficult to employ people with those skills (Job production may require staff to be highly skilled)

Question 8

What does it mean by Low Volumes?

Answer 8

Provides flexibility and meets each customer’s needs

Question 9

What does it mean by Batch Production?

Answer 9

Occurs when groups of items move together through different stages of the productions process

Question 10

What does it mean by Flow (Mass) Production?

Answer 10

Occurs when an item moves continuously from one stage of the process to another, in large scale production of identical items

Question 11

What does it mean by CAD?

Answer 11

CAD is used for displaying and editing designs on the computer

Question 12

What does it mean by CAM?

Answer 12

CAM uses a computer to control a manufacturing process.

Question 13

What does it mean by Quality?

Answer 13

Involves meeting a standard for a good or service in order to meet consumer needs and expectations

Question 14

What does it mean by Quality Assurance?

Answer 14

Is a guaranteed given by producers to consumers that certain standards have been met throughout the production process

Question 15

What does it mean by Quality Control?

Answer 15

Involves inspecting a sample of goods produced at the end of the production process to ensure that specifications have been met

Question 16

What does it mean by TQM?

Answer 16

Total quality management (part of the quality assurance process)

Question 17

What does it mean by Supply Chain?

Answer 17

The various processes involved in producing a product and distributing it to buyers. Managing the supply chain includes procurement of supplies, logistics and stock control

Question 18

What does it mean by Procurement?

Answer 18

Will involve selecting suppliers, establishing the terms of payment and negotiating the contract.

Question 19

What does it mean by Logistics?

Answer 19

Movement of goods, services, information and money throughout the production process

Question 20

What does it mean by Just-in-case production?

Answer 20

Holds stocks just in case there is a delay from suppliers / sudden unexpected increase in demand

Question 21

What does it mean by Just-in-time production?

Answer 21

Holds as little stock as possible. Items are ordered just in to be used.

Question 22

What does it mean by Sales Process?

Answer 22

Involves a series of steps taken from when the potential buyer meets the prospective seller until after the final sale is made

Question 23

What does it mean by After-sales service?

Answer 23

Is the meeting of consumers’ needs after they have purchased the product - for example, by repairing or servicing the product

Question 24

What does it mean by Customer Engagement?

Answer 24

Occurs when the business and customers communicate throughout the sales process

Question 25

What does it mean by Customer Service?

Answer 25

Is the part of the businesses’ activities that is concerned with meeting the customers’ needs as fully as possible

Question 26

What does it mean by Premises?

Answer 26

Are the buildings used by businesses: these may include offices, shops and factories

Question 27

What does it mean by Customer Loyalty?

Answer 27

Means that businesses’ customers make repeat purchases because they prefer the businesses’ product to those of its rivals

Question 28

What does it mean by Feedback?

Answer 28

Is the response by a customer following the purchase of a good or service. This will be used by the producer to improve what has been produced.

Question 29

What does it mean by Stakeholders?

Answer 29

Anyone who has an interest in a business e.g. customers, suppliers, Government, shareholders