Unit 3: Business Operations Flashcards
What are ‘Business Operations’?
The activities needed for a business to function from day-to-day.
What is a Supply Chain?
The network of Individuals/Companies who create a product and deliver it to the customer.
What does a Supply chain consist of?
Suppliers, Manufacturers, Distributers and Retailers.
What are the Factors a business will consider when picking a supplier?
- Price
- Quality
- Reliability [the delivery of product/service]
What is Procurement?
When Businesses Find and Purchase things it needs.
What is Logistics?
The movement of goods from one part of the supply chain to another.
What are the Benefits of an effective Supply chain?
- Operations and processes are carried out in the most efficient and cost-effective way
- Receive the best price and value for goods
- Reduce Waste and unnecessary costs
What is Job Production?
Producing individual and unique products. [Tailoring, Making Bridges Etc…]
What is Flow/Mass Production?
Producing identical products [making canned-food]
What is Lean Production
When a Business uses as few resources as possible and wastes as little as possible [a ways of improving efficiency]
What is ‘Just-in-Time’
When Businesses only order/produce only the amount that will be guaranteed a sale.
What is ‘Just-in-Case’
When Businesses order/produce extra ‘stock’ just in case of unexpected customer demands.
Where can ‘Quality’ be shown in a business
Products, Service & Customer Service
Benefits of of Maintaining Quality
- Offer Higher Prices; Customers are willing to pay more for Quality
- Increased Sales; Quality products are most likely to have repeat purchases
- Better reputation and Image
Costs of Maintaining Quality
- Costly to Train Staff [to make products etc…]
- Inspections to see if Quality is good enough can cost both time and money
How can a Business measure Quality?
- Customer Surveys [to see if they are satisfied with quality]
- Monitor complaints on quality of product
- Inspections
What is Total Quality Management [TQM]
A business strategy making the consistency of quality the main priority.
Pros and Cons of Total Quality Management
Pros: Increase customer satisfaction, repeat purchases, sales etc…
Cons: Training staff is required [can be costly and time consuming], the ‘extra-work’ can demotivate employees
How can rapid growth in Business make it harder to maintain High Quality?
- Can become expensive to carry out all necessary inspection on the overwhelming number of order
- Solutions [like outsourcing, franchising or taking more employees] are costly
How can a Business have good Customer Service?
1) Excellent Product Knowledge; So any questions from customers can be answered quickly and accurately
2) Positive Customer Engagement
3) Post-Sales Service
Benefits of Good Customer Service
- High-levels of Customer Satisfaction
- Increase Repeat Purchases
- Customers will more likely spend more
Dangers of Poor Customer Service
- Dissatisfied Customers
- Poor reputation there falling revenue
