Unit 3: Operations

Question 1

Brand image

Answer 1

The consumers’ perception of the brand; its character, qualities and shortcomings. It is developed over time and operates as a consistent theme through advertising campaigns.

Question 2

Buffer stock

Answer 2

A stock of raw materials held in reserve to protect the production process from unforeseen shortages.

Question 3

Cost

Answer 3

The money spent by a business on goods and services.

Question 4

Customer Engagement

Answer 4

The relationship between the business and the customer that puts the customer’s
requirements at the centre of the operation to build brand loyalty

Question 5

Disposal of waste

Answer 5

The removal, storage or destruction of unwanted material. Methods include recycling, burning and landfill sites.

Question 6

E-Commerce

Answer 6

Business transactions carried out electronically on the internet

Question 7

Economies of Scale

Answer 7

The cost advantage of producing on a large scale. As output increases the unit cost decreases

Question 8

Export

Answer 8

Good/service sold to a customer in another country.

Question 9

Fixed costs

Answer 9

The costs that stay largely the same, regardless of the business’ output

Question 10

Flow production

Answer 10

Using a production line to make goods continuously and in large numbers

Question 11

Good

Answer 11

Items that are produced from raw materials for sale to businesses or consumers

Question 12

Import

Answer 12

Good/service bought from a supplier in another country

Question 13

Induction

Answer 13

Training given to a new employee when they start a new job; it provides information about the business, its operation and working practices

Question 14

Inspection

Answer 14

Testing/examining items to check that materials or items conform to the specified requirements/standards

Question 15

Job Analysis

Answer 15

The process of determining what the job entails, including responsibilities and tasks

Question 16

Job production

Answer 16

A method of creating a single product to meet an individual order

Question 17

Just In Case (JIC)

Answer 17

Organising procurement to ensure that the production process never runs out of stock, reducing the number of sales lost due to insufficient raw materials

Question 18

Just In Time (JIT)

Answer 18

Organising the ordering of raw materials and components to be delivered just before they will be used, reducing the need for storage

Question 19

Lean Production

Answer 19

Continually working to reduce the resources used to create products: raw materials, labour, machines and premises

Question 20

Logistics

Answer 20

Managing the movement of supplies and products to ensure the timely delivery of supplies to the production process and finished products to customers

Question 21

M-Commerce

Answer 21

Business transactions are carried out electronically by mobile phone

Question 22

Motivation

Answer 22

The reasons people are interested in and committed to their job

Question 23

Outsourcing

Answer 23

Contracting another business to carry out some of the business’ activities, often to reduce costs

Question 24

Post Sales Servicing

Answer 24

Maintenance or repair of equipment by the manufacturer or supplier during or after the warranty

Question 25

Primary Industry

Answer 25

A business that extracts the earth’s natural resources

Question 26

Procurement

Answer 26

The process of buying goods and services including dealing with:
• demand
• selection of suppliers
• analysing and negotiating prices
• making the purchase
• managing payments

Question 27

Product Knowledge

Answer 27

An in-depth understanding of the features, use and application of the good/service that will enable the person selling it to provide any information that the purchaser wants before committing to buy

Question 28

Product Recalls

Answer 28

The withdrawal from sale by the manufacturer of a defective or contaminated item

Question 29

Productivity

Answer 29

The amount produced by a worker/machine/factory in a given time; the ability to produce more output with fewer resources

Question 30

Raw Materials

Answer 30

Businesses that use raw materials that are heavy and/or bulky choose to locate close to their suppliers to reduce the cost of transport or storage

Question 31

Recycling

Answer 31

The conversion of waste into reusable material

Question 32

Supplier

Answer 32

a business that provides goods/services.

Question 33

Supply chain

Answer 33

The network of organisations, people, activities, information and resources that take the product/service from supplier to customer

Question 34

Total Quality Management (TQM)

Answer 34

A philosophy that involves everyone in the business in the quest for continual improvement in the attitudes, practices, structures and systems that combine to create a top-quality product

Question 35

Trade Credit

Answer 35

The process of buying items from a supplier and paying for them later; for example, 30 days after invoice date

Question 36

Wholesaler

Answer 36

A business or person that buys goods in large quantities from producers, stores them in warehouses and sells them on to retailers