topic 4: operations Flashcards
what is batch production
a production method where one product type is made and production is then switched to another product
what is flow production
production of one product takes place continuously using a production assembly line (sometimes called mass production)
what is job production
production method where products are made individually
pos and neg job production
+ bespoke item, high quality
+ charge a high price, make a good profit
- can be high cost, high skilled workers
- production can be slow, customer has to wait
pros and cons batch production
+ batches can be varied to meet needs of customers
+ if goods are made to order, no storage costs
+ cheaper than job production
- machines need resetting between batches, includes costs
- stocks of raw materials - extra costs
- tasks can be repetitive and boring, low motivation and staff retention
pros and cons flow production
+ large quantities
+ economies of scale can reduce unit costs
+ machinery/automation can reduce costs
+ computer controlled machinery can allow variation in products
- mass-produced goods could be lower quality
- mechanical break-down can cause disruption
- repetitive and boring tasks, low motivation and staff retention
what is quality control
a physical inspection by an inspector/machine to check that each product is to standard
what is quality assurance
the whole business focuses on quality and each worker checks the quality at every stage of production
pos and neg of quality control
+ production can continue during inspection, output isn’t affected
+ good quality products improves the reputation of the business
- doesn’t prevent waste
- inspection can be expensive (unless done by machines)
- doesn’t encourage workers to be responsible for quality
pos and neg of quality assurance
+ should reduce wastage and costs
+ all workers are responsible, could motivate them to take care
+ good quality goods and services improve reputation
- stress on workers from having to check the quality of their own work
pros and cons of face-to-face selling
+ useful if customers need detailed info/personal assistance
+ discussion of detailed technical equipment specifications (B2B)
+ customer can bargain about prices
+ unavoidable sometimes - restaurant meal/door-to-door selling
- not always convenient for customer
- profit could be reduced if customer bargains
- high retail cost if expensive shops are needed
pos and neg of telesales
+ customer can ask questions and bargain price, increases sales
+ can cost less than selling from a shop
- costs eg. storing goods in a warehouse + paying telesales workers
- ‘cold calls’ can be a nuisance to customers
disadvantages of e-commerce to the business
- increased competition, globally
- delivery systems have to be organised, same with returned goods
- cyber security for customers and the business
- tech develops which can add costs and change the operations of the business + the workers it needs
pros and cons of after sales service
+ good after sales service increases sales because customers buy with confidence
- training costs with returns and dealing with customers
- returned goods may have to be sold as clearance, making a loss
what is the key consumer law
the Consumer Rights Act of 2015 which states that goods and services must be ‘fit for purpose’, ‘of satisfactory quality’ and ‘as described’
importance of good quality control and assurance
if not:
have to replace/refund/repair - costs
may gain rep for bad quality - lower sales
may lose a sale
consequences of unsafe goods
- business may have to pay out money in compensation for injury/death
- may gains rep for poor quality, reducing sales
- stop selling unsafe product/service, which can cost money
- may be forced to close
how does proximity to the market influence location
- service businesses have to locate near customers - eg. hairdressers
- manufacturing businesses can locate closer to customers for easier communications
- business located near customers can reduce transport costs to this market
how does proximity to unskilled labour influence location
if a business needs lots of unskilled workers they might locate where population/unemployment is high
how does proximity to materials influence location
- shorter transport journey means less carbon emissions
* locating near a raw materials source can save on transportation costs (especially if bulky/heavy)
stages of procurement
- identifying goods and services
- choosing suppliers
- ordering goods and services
- receiving deliveries from suppliers
what influences goods and services chosen in procurement
which season the business is buying for
changes in technology can affect products sold
changes in fashion and lifestyle
