Topic 4

Question 1

What are the three methods of production?

Answer 1

• mass or flow
• batch
• job

Question 2

job production:

Answer 2

• making a unique product specific to the customer order.
• usually more time consuming
• high quality
• often ‘hand made’ or ‘tailored’
• often more expensive.

Question 3

Batch production:

Answer 3

Making a specific quantity of a product.

Due to variation of products E.G. Bread, coloured shoes, chocolate bars.

Question 4

Mass or flow production:

Answer 4

Making very large amounts of the same products.

• Often very efficient
• need big premises and factory
• brings down cost per product to make
• buy in bulk cheaper.

Question 5

Advantages of job production:

Answer 5

• can charge more money

- staff are often more motivated.

Question 6

Advantages of batch production:

Answer 6

• have a range of products
• motivates staff more
• consistent quality

Question 7

Advantages of mass/flow production:

Answer 7

• more jobs created
• faster
• reduces average cost per product to make.

Question 8

Disadvantages of job production:

Answer 8

• no work means no money - no salary
• only get paid when you have orders.
• high cost of skilled workers.

Question 9

Batch production disadvantages:

Answer 9

• slower
• downtime for machines to stop be cleaned etc
• more training for staff required
• costly

Question 10

Disadvantages of mass/flow production:

Answer 10

• high cost machinery
• large perimeter and factory and lorry’s required.
• can cause boredom in employees
• only makes one product.

Question 11

What is quality control?

Answer 11

Checking the quality after its been made and assembled.

Question 12

What is Quality assurance?

Answer 12

Putting systems in place to guarantee the quality whilst teh product was being made.

Question 13

Why is quantity important?

Answer 13

• motivates staff
• to keep customers wanting to buy it again.
• good reviews and feedback
• to increase market share
• for a good reputation
• more sales revenue
• more chance of awards.
• more profit.

Question 14

Advantages of quality control:

Answer 14

• prevents faulty products
• not disruptive to workers - quicker to make the products
• cheaper

Question 15

Quality control disadvantages:

Answer 15

• faults only seen at the end might have to scrap whole batch.
• workers cant be held to account in early stages if they are faulting.
• still need quality control staff.(wages)

Question 16

Customer service in the industry, (3)

Answer 16

• buying online
• face to face
• telesales

Question 17

What is customer service? And why is it important?

Answer 17

• its a method used by a business to look after its current and future customer.
• This involves meeting customer sales before, during and post sales.

Question 18

What makes good customer service:

Answer 18

• good manners
• high quality service
• good sociability
• good shop or phone service
• good product and business knowledge.

Question 19

What is E-commerce?

Answer 19

Electronic commerce is buying goods online.

Question 20

What are the benefits to the customers from E-commerce?

Answer 20

• saves time
• more choice
• shop whenever is convenient
• controls impulse spending.

Question 21

What are the benefits to the business of E-commerce?

Answer 21

• access to more customers
• saves money on rent therefore lowers fixed costs
• reduced marketing costs
• you can charge less if needed to gain more market share.
• can be open 24/7

Question 22

What are consumer rights?

Answer 22

Protection for the buyer from dodgy products. Products have to be ‘ fit for purpose‘ and ‘as described’ and ‘of satisfactory quality’.

Question 23

What is ‘fit for purpose?

Answer 23

Goods must do what they say on the tin. And do what they are meant to do.

Question 24

What is ‘as described’

Answer 24

Goods must be what they are advertised as, for example, size or quantity or colour. So companies cant lie.

Question 25

What is ‘of satisfactory quality.?

Answer 25

Goods shouldn’t be damaged or faulty when received.

Question 26

How could the consumer right act effect the business?

Answer 26

• could lead to a baked reputation - loss of market share.
• could lead to many refunds - lose money, loss of profit.
• could be sued a lot of money if its ‘unsafe’ and faulty depending on the product.

Question 27

What is procurement?

Answer 27

It involves selecting suppliers, and establishing terms of payment and the negotiation of purchasing goods.

Question 28

Wha are the effects of having bad suppliers?

Answer 28

• time delay - bad reputation
• could lose money
• makes customer service difficult
• demotivates staff
• could leave you with stock which doesn’t sell.

Question 29

What makes a good supplier?

Answer 29

• Arrives on time
• reliable
• delivers the right stock
• invoices you on time.

Question 30

What is logistics?

Answer 30

It’s the management of flow of goods from A-B.

Question 31

Factors of logistics and procurement:

Answer 31

• time
• reliability
• length of the supply chain
• costs
• customers service.

Question 32

What makes a business in a good location?

Answer 32

• access to low and high skilled workers.
• good transport links, E.G. motorways, airports etc.
• cost of rent.
• government grants to be in a certain area.
• proximity - being close to suppliers and labour.
• Close to support businesses.