Unit 4 - Production Process Flashcards
Advantages of technology and machinery ….
-produces goods and services more efficiently —-> productivity increases
-saves money in long run bc of reduction in wages
-higher quality goods and services
-makes less mistakes than humans
-reduce the number of workplace accidents
3 uses of technology in the production process..
Automation
Computers
Robotics
What’s automation ?
Machinery and computers control production.
> role of workers is to over see the use of machines
Advantages of automation…
-consistency
-reducing waste
-increased productivity
-customer satisfaction rates
-labour costs
-flexibility
What’s robotics ?
Refers to robots in the process of production
Advantages of robotics …
Large amounts can be made
Less dangerous as can be done by robots instead of people
Production can be flexible
Disadvantages of robotics in production …
-Initial costs are very expensive
-breakdowns can be problematic >resulting in a loss of production time
-robots need downtime for servicing > during this time production is limited
What are computers in the production process ?
Computers - refers to the use of computers, particularly in service industries to automate processes
3 types of production…
Job production
Batch production
Flow production
Whats job production ? Example :
Advantages
Disadvantages
-Producing each product individually. (Wedding dress)
Advantages
-Products usually high quality
-products meet needs if individual customers
-more satisfaction for workers
-higher prices charged
Disadvantages
-production costs high
-labour costs high because job production requires skilled labour
What’s batch production? Example:
Adv
Disadv
-Set stages of the production process need to be gone through, one process has to be completed before the next stage of production can begin. Example: white bread and brown bread
Advantages
-needs of different customers are met
-batches made to meet specific orders from customers
-reduce costs as goods don’t need storing
-use of machinery reduced costs
Disadvantages
-takes time to switch production from a batch of one product to another produc.
Machinery needs a reset —-> increases costs
What’s flow production ? Example :
Advantages
Disadvantages
Involved assembly line, one type of product made continuosly. Goods mass produced
Eg: same bottle being made
Advantages
-Large amounts can be made
-less employees as machinery can be used
-production lines can operate 24/7
-lower unit costs
Disadvantages
-initial costs are high
- machinery could breakdown
-jobs on the assembly line can be boring —>demotivated workers
What’s productivity ?
How’s productivity calculated ?
Output per a given number of employees
Productivity = output / number of workers
How does a business increase productivity levels ?
-Recruit correct staff
-appropriately train staff to be efficient
-motivate staff with financial and non financial methods
-Replace workers with machinery
What’s different about customers nowadays ?
-Able to share information (leave review)
-customers more likely to complain
-customers more demanding
What’s quality ?
A product or service which meets the needs and expectations of a customer and is fit for purpose.
Consequences of quality issues ?
-loss of customers
-reputation of a business negatively affected
-costs of scrapping or reworking
-costs of replacements or returns
-Costs of reducing the price of products no one wants to buy
-legal action taken against the business
What can quality enable a business to do?
-Charge a high price
-differentiate its products from competition
4ways a can businesses measure quality ?
-Amount of faulty products
-customer satisfaction
-level of complaints
-mystery shoppers
What’s quality control?
System of inspecting quality of goods and services produced. Ensuring they’re good quality
Quality control advantages …
-If inspectors used, customers shouldn’t receive a substandard product
-specialist inspectors check quality, meaning employees are free to complete other tasks
Quality control disadvantages …
-Doesn’t prevent waste of products as products scrapped
-workers less likely to take responsibility for errors
-high cost of inspector wages
What’s quality assurance ?
What do workers also have to do?
Approach that involves whole business focusing on quality , prevents quality problems arising
Staff involved
Workers also have to suggest ways a business can be improved
Advantages of quality assurance ?
-Less wastage
-workers feel valued as they have more responsibility
-business has a better reputation of quality
-fewer returns / complaints
-charge a higher price
Disadvantages of quality assurance ?
-disrupt production because workers stop to check quality
-costs the business to train employees to check quality
What’s e-commerce ?
Process of bringing a buyer and seller together electronically or over the internet
Benefits of Eccomerce to customer…
Disadvantages
Benefits
-Convenient
-can shop 24/7
-acess to reviews
-compare prices
Disadvantages
-can’t try the product
-can’t ask questions
-can’t get product instantly
-lack of experience
Benefits and drawbacks of eccomerce to the business ….
Benefits
-allows business to acess more markets
-reduce costs because physical shops not needed
-sales increase because customers can shop 24/7
Drawbacks
-initial and ongoing costs of investment in websites
-personal contact euthanasia customers lost
-competition increases, including those abroad
What’s face-face selling?
In a shop where there direct contact between buyer and seller
What’s telesales?
Sales made over the phone
What’s customer service?
Ways in which a business meets the needs and wants of the customers
Importance of providing good customer service…
-increased sales, satisfied customers likely to try other products
-customer retention, satisfied customers likely to make repeating purchase
-enhanced public image, satisfied customers recommend products
-lower costs, less returns /refunds
-improved profits as a result of improves sales / reduced costs
Impacts of poor customer service….
-loss of long term loyalty /customers
-increased costs because of more refunds / returns
-unhappy customers spread the word verbally or through online reviews
3 stages of the successful sales process…
Stage 1 - know your product
Stage 2 - engage with customers to create a positive experience
Stage 3 -good after sales service
Advantages of knowimg your product ( stage1 of successful sales proces)….
Disadvantages….
Advantages- giving customer information so they can make an informed decision
Disadvantage- more training so they know the product —> higher training costs
What’s an advance age of stage 2 of the successful sales process ( engage with customers)
-shows you employee is interested
-more likely to make a purchase
Advantage and disadvantage of stage 3 ( good after sales service)
Advantage - customers more likely to make a repeat purchase
Disadvantage-cost to train staff to deal with customers and refunds / returns
What’s the consumer rights act 2015?
-goods must fit their description
-goods must be satisfactory quality
-goods must be fit for purpose
Benefits to a business of meeting consumer law…
-improved reputation / bad publicity avoided
-no time cost of dealing with problems
-high fines avoided
Costs to a business of meeting consumer law…
-training required to ensure employees can produce quality product and are aware of consumer law
-increased quality control needed
-higher quality raw materials needed —> increased costs
What must businesses also make sure their products don’t lead to?
Injury or death ( they’re safe to use)
Factors influencing business location?
-location of target market
-proximity to supplier (quicker , cheaper to get resourced)
-disposable income of target market
-where competitors are
-location of labour market
-good infrastructure
Benefits to a business of being closer to a supplier?
-raw materials received quicker
-perishable products fresher
-bussines carbon footprint reduced
-delivery cost reduced —> profit increased
What will businesses have to consider relating to costs when deciding bussines location?
What they can afford against the revenue and likely footfall in every location
A bussines location depending on competitors….
-locate where’s there’s a gap in the market with no competitors
-however it may be an unprofitable location for any bussines
-steal customers
Where’s might a factory locate ?
An area of traditionally low wages or high unemployment rates
Whats procurement …
Management of purchasing within a bussiness
6Key parts of procurement ….
-identifying products to buy
-selecting suppliers
-ordering products
- negotiating contracts between business and suppliers
-managing deliveries from suppliers
-managing logistics
A business identifies which products to buy depending on ?
-time of year
-changes in technology
-changes in fasion
4 things Selecting suppliers is affected by….
-quality of goods
-reliability of supplier
-delivery time
-product availability
Why is ordering the right products important for a business?
Enable effective running
What might a business do to reduce cost per unit?
-order in large quantities
How’s procurement involved in managing deliveries for a business?
-makes sure there sufficient storage space
-staff receive deliveries
What’s logistics ?
Management of transportation and storage of goods
Why’s the management and investment in logistics important ?Whats the advantage of this?
-Ensures deliveries are made on time
-correct items delivered
-undamadged items delivered
-as a result , better reputation and competitive advantage
What’s a supply chain?
A network of organisations that get products to the customers
