Unit 5 (Operations) Flashcards

1
Q

Operation management tasks

A

1) Designing and improving process
2) Capacity planning
3) Stock management
4) Supply Chain management
5) Quality Control
6) Continous improvement
7) Scheduling and logistics

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2
Q

Input / Output Model

A

Input: Raw materials components, expertise
->
Process
->
Outputs: FInished goods / services

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3
Q

Green supply chain management

A

Environmentally friendly suppliers, reducing waste, minimising carbon footprint

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4
Q

Energy effeciency

A

Energy saving technologies, optimising equipment and managing and reducing energy consumption

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5
Q

Waste reduction / recycling

A

Waste management systems, adapting lean manufacturing principles and designing products with a focus on recyclability and sustainability reduced material usage through the use of eco friendly materials and durability

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6
Q

Promoting fair labour practices

A

Ensuring healthy and safe working conditions like flexible working hours, ample breaks, access to training and advice, and physical conditions

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7
Q

Production

A

Transformation of resources into finished goods and services
Method of production used by business depends on numerous factors:
- Level of output to be produced
- Nature of product
- Whether product is standardised or customised
- Level of automation used in production

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8
Q

Job production

A

Process made to meet specific requirements of customers. Each item produced separately and production process tailored to unique specifications of customised order
Key characteristics:
- Customisation
- Low volume
- Variability
- Skilled labour
- Longer lead times

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9
Q

Adv of job production

A
  • Higher levels of customisation
  • Provides flexilbility to adapt to changes in customer demands
  • Alllows for greater attention to detail and quality control
  • Offers personalised customer experience
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10
Q

Dis of job production

A
  • More expensive than other methods
  • Longer lead times
  • Complex and challenging to manage
  • Unlikely to achieve high economies of scales
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11
Q

Batch production

A

Occurs when products produce in groups or batches
- Certain quantity of products produced together before next batch
- Each batch goes through entire production process from raw materials to finished products

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12
Q

Adv of batch production

A
  • Allows switch between batches and caters for varying customer demands
  • Can be more effective compared to flow production
  • Some extent of managing economies of scales
  • Quality issues can be identified and detected, reaction within specific batches before moving on
  • Can speculate products due to tailoring each batch to meet customer requirements
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13
Q

Dis of batch production

A
  • Setting up equipment and production line time consuming
  • Often leads to accumulation of stock requiring storage costs
  • Not as adaptable as other methods
  • Can be stress on equipment requiring regular maintenance
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14
Q

Flow production

A

When products is produced in continuous sequence of operations on a production line. Involves movement of materials or components through series of machines.
- Division of labor
- Standardization
- Automation
- High volume
- Continuous

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15
Q

Adv of flow production

A
  • Minimizes setup time and reduces production time leading to better overall efficiency
  • Eliminates need for frequent startups and shutdown of machines
  • Labour costs lower due to automation
  • Greater control over product quality
  • Faster production results in shorter lead time
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16
Q

Dis of flow production

A
  • Requires capital investment for machine equipment and automation technology
  • Requires an reliability and efficiency of equipment and machinery
  • Only suited for standardized products
  • May require stoppage of entire production line if detects spotted
  • Requires steady supply of raw materials and components
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17
Q

Mass customiation

A
  • Mass production appears through flow production and involves large amounts of standardized products
  • Customization within job production or small scale batch production
  • Mass customization flexible with amount of customisable options within standardized process
  • Benefits from low units costs associated with flow proudction
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18
Q

Adv of mass customisation?

A
  • Can obtain products that match unique preferences -> Likely to be highly satisfied -> Positive feedback and gained customer loyalty
  • Utilizing components and processes allows economies of scales
  • Can differentiate from competitor’s, attract new customers
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19
Q

Dis of mass customization

A
  • Requires large capital and variable costs tend to be high
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20
Q

Lean production

A

Process of streamlining operations and processes to maximize value and achieve greater efficiency. Should lead to improved quality and reduced cost of production

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21
Q

Kaizen

A
  • Japanese philosophy on making small and continuous improvement to increase effeciency and productivity.
  • Small groups are formed with purpose of idnetifying improvmeent to firms products, processes, and procedures
  • Process of incremental improvement in quality
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22
Q

mapct of Kaizen

A
  • Change is easier to make in small continous improvements
  • People tend to be resistant to big changes
  • Focus on quality and cost saving
  • All employees can contribute to the firm, irrespective of rank
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23
Q

Just in time

A
  • Stock management method based on having stock delivered as when they are needed
  • Only absolute minimum are held as finished goods dispatched as they are produced
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24
Q

What is cradle to cradle / grave

A

C2C: Sustainable model of production based on renewable processess, benefitting the enviornment
C2G: Refers to single use products. Currently the most common method of manufacturing

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25
Q

Quality

A

When the product fulfils the purpose and the expectation of the customers. Percieved based on:
- Physical apperance / design
- Image and reputation
- Durability
- Fit for purpose
- Customer service
- After sales service

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26
Q

Quality management

A

Factors concerned with refining business activities to ensure products are fit for their purpose. 4 Driving factors that led to quality being parmount priority for new business
- Increasing consumer reviews
- Government legislation
- increasing consumer incomes

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27
Q

Quality Control

A

Inspecting quality of output at the end of production process. Focus on maximising output , products not up to standard rejected before released for sale.

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28
Q

Adv of quality control

A
  • Quality specialist employed to check standards
  • Inexpensive and simple way to check output fit for purpose
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29
Q

Dis of quality control

A
  • Rejection at end is waste of resources
  • Little focus on check for defects
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30
Q

Quality Assurance

A

Inspecting quality of production throughout production process. Workers check their own work and others at various stages of production

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31
Q

Adv of quality Assurance

A
  • Identified early thus reworked instead of rejected
  • Focus on case of defects so future quality issues prevented
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32
Q

Dis of quality assurance

A
  • Skilled training and labour required increases costs
  • Reworking may slow down production process
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33
Q

Quality circles

A

Group of workers meeting regularly to identify and solve quality problems in production process
- Volunteers from different departements
- Led by leader
- Work together to manage situations

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34
Q

Adv of quality circles

A
  • Improved worker motivation through decision making involvement
  • Workers facilitated with process, relevant and focused solutions
  • ## Improved productivity as workers engaged in solutions they developed
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35
Q

Dis of quality circles

A
  • Management needs trust in workers
  • Required ongoing teaching to contribute effectively
  • Meeting organizing regularly
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36
Q

Benchmarking

A

Comparing quality and performance with markets leaders in same industry

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37
Q

What is internal and external benchmarking

A

Internal = Comparing of different functions on performance and process
External = Comparison of key performance indicators against market leaders domestically and overseas

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38
Q

Adv of benchmarking

A
  • Identify areas of improvement from practices of industry leaders
  • Identify innovative practices / processes
  • Setting of realistic performance goals
  • Worker motivation when seeing employer striving to be industry leader
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39
Q

Dis of benchmarking

A
  • Differences in metrics can affect accuracy and comparability of data
  • May not be applicable to needs of business
  • Struggle to find time and resources for data collection and analysis
  • Leads to narrow view of success, ignoring ideas from other sources
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40
Q

Total quality management

A

Places quality at core with every worker responsible for quality
- Quality considered from customer perspective
- Inefficiency / waste removed from every business activity

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41
Q

Adv of TQM

A
  • Improves efficiency leading to improve profitability
  • Constant improvement with high standards
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42
Q

Dis of TQM

A
  • All workers committed to significant continued training
  • Careful monitoring and control required
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43
Q

Quality standards

A

National / International benchmark that demonstrate business commitment to quality
- Administered by independent bodies with string of tests to ensure standards met
- Business awarded these standards revisited regularly to ensure maintained

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44
Q

Importance of quality standards

A
  • Ensures customers commitment to quality
  • Set business apart from competitors
  • Allow business to enter these markets
  • Reduces risk of legal issues / penalties.
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45
Q

Factors affecting production location

A
  • Proximity to markets
  • Proximity to labor
  • Proximity to materials
  • Proximity to competitors
  • Nature of business activity
  • Infrastructure
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46
Q

Outsourcing

A

Process where business delegates specific business activities to external service providers
- Business do this to reduce costs, access specialized expertise and focus on core competencies

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47
Q

Subcontracting

A

Specific parts of a larger project or contract assigned to third parties
- Business remains responsible for project but certain tasks and components delegated to other individuals / companies with specialized skills

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48
Q

Adv of outsourcing / subcontracting

A
  • Cost saving through reduction of expenses like hiring and training employees, maintaining infrastructure, and IT systems
  • Access to specialized skills through resources that business lacks internally, benefitting from knowledge and experience of industry experts
  • Increased flexibility to scale up or down operations based on demand fluctuations
  • Can concentrate business resources on core competencies where they can add value
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49
Q

Dis of outsourcing / subcontracting

A
  • Difficult to ensure consistent quality and adhere to company standards
  • Loss of control as reliable partners must be selected to clear contractual terms and protect interests
  • Sharing information may introduce risks to data security / confidentiality
  • May result in language barriers with time zone differences or communication barriers due to cultural differences
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50
Q

Offshoring

A

When business sets up operations in another country to carry out business activities

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51
Q

Adv of offshoring

A
  • Labour costs often lower
  • Tap into skilled labour markets not available domestically
  • Take advantage of 24/7 operations, providing better customer support
  • Can gain local markets insights, spotting opportunities for growth
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52
Q

Dis of offshoring

A
  • Communication and language barriers, resulting in delays
  • Quality control difficult when moved offshore
  • Sharing sensitive information and intellectual property may lead to breach of data security / confidentiality
  • Domestic job losses
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53
Q

Insourcing

A
  • Business assigns tasks to individuals within the organization which was previously outsourced
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54
Q

Reasons for insourcing

A
  • Cost saving strategy to eliminate need to pay external specialists
  • Direct control over quality of work and easier to establish own standards
  • Greater flexibility to changing business needs, adjusting workflows and adapting to new challenges
  • Develop specialized skills within workforce, reducing risks of intellectual property breaches
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55
Q

Reshoring

A
  • Business brings its production activities to home country from abroad
  • Reversing decision to offshore or outsource these activities to another country
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56
Q

Reasons for reshoring

A
  • Initial cost advantages may reduce due to rising labor or transportation costs in foreign country
  • Better control of manufacturing process and ensures higher quality control standards, improving customer satisfaction
  • Reduce risks of intellectual property theft
  • Reduces dependency on foreign suppliers
  • Closer to target markets leading to faster delivery times, reducing transportation costs and customer responsiveness to demand
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57
Q

Supply Chain Management

A

Coordinates and schedules manufacturing to ensure products are produced efficiently and on time with the quantities needed. Refers to stages from obtaining materials to delivery of product to end consumer

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58
Q

Stages of supply chain management

A

Stock control: Planning, implementing, and monitoring movement of raw components, work in progress, and finished goods
Quality Control: Ensuring output meets standards so that end product is safe and meets customer expectations
Transport networks: Efficient delivery of goods to customers with speed, reliability and cost taken into consideration
Supplier networks: Strong relationship with suppliers to improve quality

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59
Q

Global supply chains

A

Coordinated activities across international borders as some stages completed for cheaper in certain countries

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60
Q

Just in time

A

Involves stocks delivered to business as and when they are needed to be used in production process.

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61
Q

Just in case

A

Holding spare buffer stock to ensure there is more than enough stock to meeting requirements

62
Q

Differences in stock levels between just in time and just in case

A

Just in time:
- Minimal stock levels
- Materials delivered / ordered in time for production
- Lower storage and security costs

Just in case:
- Buffer stock
- Protects unexpected increase in demand, supply chain disruptions, or production delays
- Prevent stockouts

63
Q

Differences in costs between just in time and just in case

A

Just in time:
- Lower stock costs
- Reduced waste
- Lower purchasing economies of scales

Just in case:
- Increases fixed costs
- Costly to hold slow-moving stock
- Risks of wastage through expiration or damage

64
Q

Differences in flexibility between just in time and just in case

A

Just in time:
- Emphasis on efficiency and ability to respond to change
- Reliable and efficient suppliers needed

Just in case:
- Safety net against unexpected change in demand / supply
- Less responsive to market changes as buffer stock needs to be used up before new products made

65
Q

Stock controls

A

Careful planning and controlling of stock flow to ensure raw materials, work in progress, and components available to meet production demands

66
Q

Maximum stock level

A

maximum amount of stock a business able to hold in normal circumstances

67
Q

reorder level

A

Level at which business places new order with supplier

68
Q

minimum stock level

A

Aka buffer stock, and lowest level at which business willing to allow stock levels to drop

69
Q

Lead time

A

Length of time from point of stock being ordered from supplier to it being delivered

70
Q

Problems with holding too much stock

A
  • Storage costs higher than necessary
  • Risk of stock spoilage increased
  • Excess stock may need to be sold at lower revenue, lowering profit margins
71
Q

problems with holding to little stock

A
  • Stock may run out, production stoppages and higher unit costs due to underused capacity
  • Sudden increase in demand may be unable to be met
72
Q

Stock

A

Materials, components and products used in the production process. Three main categories:
- Raw materials
- Semi finished goods
- Finished goods

73
Q

Disadvantages of stockpiling

A
  • Storage costs
  • Risk of damage / their
  • Products may be perishable
  • Stock is illiquid
  • May become obsolete if demand changes
  • Changing fashions / taste
74
Q

Disadvantage of stock outs

A
  • Lose out on sales revenue, lost off customers to rivals
  • Leads to inefficiencies
75
Q

Optimum levels of stock

A
  • Orderinig in bulk to get economies of scales but will be forded to pay high storage costs
  • Order in small quantity but more frequently
76
Q

Factors influencing amount of stock

A
  • Fast moving consumer goods/ Consumer durables
  • Peak season / low season demands
  • Short / long lead time
  • High / low opportunity costs
77
Q

Capacity utilization rate

A
  • Measures output level as percentage of its potential output
  • This measures efficiency as it removes extent of idle resources in the organization
  • High measure is financially important as it spreads fixed and indirect costs over large level of output
78
Q

Capacity utilization rate formula

A

Actual output / Productive capacity * 100

79
Q

What are defects

A

When quality of product is not up to standard, represents waste and inefficiency of firms production process

80
Q

Defect rates

A

Measures proportion of defects per time period that is standard. Can be used to evaluate production process as a measure of quality assurance

81
Q

Defect rate formula

A

Defective output / Total output * 100

82
Q

Labour productivity

A

How resources are used in production process to generate outputs. Can be measured using various formulaes
- Labour productivity
- Capital productivity
- Productivity rate

83
Q

Capital productivity

A
  • How well firm uses its physical resources
84
Q

Capital productivity formula

A

Total outputs / Number of capital hours

85
Q

Labour productivity formula

A

Total outputs / number of workers

86
Q

Productivity rate formula

A

Total output / total input * 100

87
Q

Advantages of higher productivity rates

A
  • Economies of scales
  • Higher profit / wages
  • Improved competitiveness
  • Growth in business activity
88
Q

Operating leverage

A
  • Measures firms fixed costs as percentage of variable costs
  • Firms with high costs has higher operating leverage and vice versa
  • Firms with high operating leverage vulnerable to drop in sales volume as sufficient sales volume required to pay substantial fixed costs not feasible
89
Q

Operating leverage formula

A

((Price - VC per unit) * Quantity) / ((price - VC per unit) * Quantity) - Fixed costs) * 100

90
Q

Interpretation of low and high operating leverage

A
  • Low = Less risky but less likely to increase income as quickly with sales increase
  • High = riskier but increase in profitability will rise faster as a result of sales increase
91
Q

Determinants of productivity rates

A
  • Technology
  • Rivalry
  • Innovation
  • Entrepreneurship
  • Skills / experience
92
Q

Cost to make vs cost to buy

A
  • Make or buy decisions occurs when business has to decide between manufacturing a product themselves or buying from external suppliers
  • This involves qualitative and quantitative factors
93
Q

Cost to buy / cost to make formula

A
  • Cost to buy = Price x Quantity
  • Cost to make = Fixed costs + (Variable costs x Quantity)
94
Q

Qualitative factors in make or buy decisions

A
  • Time frame of production
  • Spare capacity
  • Reliability of suppliers
  • In house expertise
  • Size of capital expenditure
  • Core / non core competencies
  • Strategic importance
  • Signfinace of the product to the firm
  • Extenral influences
95
Q

Crisis

A

Situation of instability resulting in major problems in a business. Characteristics:
- Unexpedted / unpredictable
- Threatens organization
- Quick decision making

96
Q

Crisis management

A

Refers to response of organization to crisis situation
Used to minimise impact on the business
Typical responses will include:
- Radical responses
- Centralized decision making
- Autocratic leadership style

97
Q

Contigency planning

A

Anticipating threat to the organization
Developing a plan before unwanted events by using what if questions to identify probable threats
Suitable for:
- Predictable / quantifiable situations
- Situation for which there is advanced notice
- Unexpected / unwanted situations

98
Q

Effective crisis management

A
  • Firms that can do this well can be successful at overcoming negative impact of a crisis
  • Involves four factors, transparency, communication, speed, control
99
Q

Transparency

A
  • Business best to be transparent during time of crisis
  • Denial / Dishonest responses can result in significant damage to a firm
100
Q

Communication

A
  • Effective communication with all key stakeholders critical for crisis management
  • Crisis communication plan should be deployed
101
Q

Speed

A
  • Speed of response critical to effectiveness of crisis management
  • Contingency plan very helpful in reducing impact of crisis for quicker response
102
Q

Control

A

Need to be in control of the situation. Requires:
- Ability to work under pressure
- Communication with all stakeholders
- Quick and effective decision making
- Instant access to cash funds for response to the situation

103
Q

Adv of contigency planning

A
  • Can minimize financial damages to the reputation of the business
  • Save valuable time in crisis
  • Reduce impact of crisis
  • Reassures staff, protects safety needs of employees
104
Q

Dis of contigency planning

A
  • Opportunity costs of time and finance, could be used on other business activities instead of on crisis that may never occur
  • Plans may be inappropriate
  • Depends on accuracy of risk assessments which need to be updated on regular basis.
105
Q

Research and development

A

Scientific and technological research to identify new materials, innovate new products, and improve processes

106
Q

Aims of research and development

A
  • Improve customer satisfaction by providing products that meet changing needs in profitable way
  • Can also involve development of prototypes or carrying out product trials and safety testing
107
Q

How business can be competitive if they conduct research and development

A
  • Drives innovation to achieve competitive edge or first mover advantage
  • Allows business to stay ahead of rivals and adapting to changing market demands
108
Q

How business can conduct market expansion if they conduct research and development

A
  • Exploration of new markets and opportunities
  • Developing new or existing products can appeal to different market segmenets
109
Q

How business can improve profits if they conduct research and development

A
  • Lead to discovery of effecient processes which can help reduce production costs
  • Innovative products can also be sold at higher price
110
Q

How business can gain intellectual property if they conduct research and development

A
  • Often leads to creation of intellectual property like trademarks, copyrights, patents
  • Can create barriers to entry for competitors
111
Q

How business can support staff recruitment / retention if they conduct research and development

A
  • Attract highly skilled professionals
  • Can improve business competitiveness if hiring top industry talents.
112
Q

Importance of innovation

A
  • ## Brings new products to customers and new processes that can lead to greater efficiency
113
Q

Importance of meeting unsatisfied customer needs

A

R&D helps to meet customers unsatisfied needs
- market research identifies needs of which customers are already aware
- innovative products can meet needs of customers which aren’t aware yet
- New processes can improve product quality that satisfy customer needs more fully

114
Q

What are the impacts of meeting customer needs

A

Can lead to more business success
- Customer loyalty increase
- Gaining a competitive advantage
- Greater adaptability to changes in trends

115
Q

What is intellectual property protection

A

Protects inventions, creative works, and specialized processes from being copied.
- Encourages spending on R&D
- Can provide valuable competitive advantage

116
Q

Copyrights

A
  • Grants exclusive rights to use and distribution for limited time
  • Applies to creative, intellectual, and artistic works
  • Begins when the piece of work is created. Doesn’t require formal register with permission needing to be sought from copyright holder to use these works
117
Q

Patents

A
  • Gives exclusive rights to make, use, and sell invention for specified period
  • Filed with government patent office
  • Provides legal monopoly for limited time allowing control and use of inventions for potential profits
118
Q

Trademarks

A
  • Distinctive sign or symbol used to distinguish between brands. Includes words, names, logos, symbols, slogans and more.
  • Grants exclusive right to use that mark for specified time period, preventing customer confusion and building brand identity.
  • Can be a valuable intangible asset
119
Q

Incremental innovation

A

Gradual, small scaled improvement of products, services, or processes.

120
Q

Disruptive innovation

A

Depending on significantly changed or entirely new products, disrupting existing market.

121
Q

Data Analytics

A
  • Transforming raw data into useful information to uncover patterns, correlations, trends, and insights.
  • Increasingly important to business to gain a competitive advantage and make informed decisions
122
Q

Types of data analytics

A
  • Descriptive: Focus on past business performance
  • Diagnostic : Focuses on reasons for past performance
  • Predictive: Focuses likely future performance
  • Prescriptive: Recommendations for actions / decisions
123
Q

Databases

A
  • Provides structure for stored data, allowing swift data input, storage, protection, and retrieval of information.
  • Maintaining may be costly as data must be kept secure
124
Q

Cybersecurity

A

Systems used to protect computer networks from theft or unauthorised access of data

125
Q

Cybercrime

A

Illegal activity on the use of computer or network devices often related to financial or commercial gain.

126
Q

Forms of cybercrime

A
  • Phishing
  • Ransom / Malware attacks
  • Identity Theft
  • Email / internet fraud
  • Intellectual property theft
  • Account hijacks
127
Q

Methods to protect business systems from cybercrime

A
  • Data security / privacy: unauthorised access to sensible information
  • Ethical use of data: Biases leading to discrimination, lack of transparency, damaging customer trust
  • Employee training / adaptation : Skill gaps among employees, resistance to change may impact introduction of digital processes
  • Data quality / accuracy: Inaccurate data can lead to poor decisions making
  • Dependency / reliability: System failures can disrupt business operations
  • Environmental impact: Increases energy consumption, concerning environmental sustainability, disposable of equipment also environmentally problematic
128
Q

Critical infrastructure

A

IT based systems and facilities that are central to the operation of the business

129
Q

Artificial neural networks

A

Computer systems inspired by the human brain works, often can automate business tasks

130
Q

Data centres

A

Physical spaces that hold important applications and data on behalf of a business. Includes mainframes, servers, routers, firewalls and storage systems.

131
Q

Cloud computing

A

Applications and adata stored online rather than in physical location

132
Q

Virtual reality

A

0 Allows users to explore and interact with a a realistic 3D environment created using a software

133
Q

Uses of virtual reality

A
  • Educating / training
  • Retail
  • ## Entertainment
134
Q

Internet of things

A
  • Connection of everyday objects to the internet which allows them to send and receive data for various purposes.
135
Q

Artificial Intelligence

A

Allows machine to complete tasks that are normally require human intelligence or reactions.

136
Q

Benefits of using AI

A

Carry out number business function to improve efficiency
- HR filters job applications
- Logicstics improved by the use of AI powered tools to process real time information
- Manages customer service functions
- Automatic payment systems to improve financial management

137
Q

Big data

A
  • Large volumes of data that business needs to analyse on a day to day basis.
  • Can be used to understand customers better, make informed decisions, and offer personalised services
138
Q

Ways business collect big data

A
  • E-commerce
  • Social Media
  • Internet of Things
  • Logistics
139
Q

Customer loyalty programmes

A

Way to gather large amounts of data on spending habits and behaviours of consumers
- Financial and transactional data about payment methods and details of products purchased
- Interaction data to how customers engage with surveys, feedbacks on experiences
- Marketing data with customer interaction with marketing

140
Q

What do businesses offer in return for the amount of data gathered from customer loyalty programmes?

A

Often offer discounts and reward points attractive to customers
- Customers more connected to business and remain loyal over time
- Frequently recommend business to others and provide meaningful feedback
- Promotional costs reduced if less urgent need to attract new customers

141
Q

Loyalty schemes

A

Help business differentiate itself from rivals allowing for greater personalisation of promotional activities

142
Q

Dis of loyalty programmes

A
  • Operating loyalty schemes expensive, especially for business with limited resources
  • May expect discounts which devalue business products
  • May be disinterested by too many loyalty programmes
  • Storing customer data raises concerns about privacy and data security
143
Q

Digital Taylorism

A

Using technology to carefully monitor use of tools and techniques for completing work tasks

144
Q

Benefits of technological innovations for managers

A

Quickly and cheaply collect, process, evaluate and act upon lists of employee performance information
- Logistics control employees and vehicle fleets
- Sensors track location, timing, driving and other aspects for performance

145
Q

Benefits of using data to monitor employee performance

A
  • Coordination and control: Ensure right number of employees available, poor performance quickly identified
  • Training staff / development: Identify skill gaps and training for employees, recorded customer interaction used for training materials
  • Employee engagement / rewards: Improve communication, identify high performing employees for rewards
  • Less management time required: Auto collecting systems reduce time managers need to oversee subordinates
146
Q

Data mining

A
  • When raw data extracted from large data sets and converted to useful info
  • Used to make data driven decisions that reduce risk and help increase revenue, reduce costs, and improve customer relations
147
Q

Uses of data mining

A
  • Marketing planning
  • Sales forecasting
  • Consumer profiling
  • Personalising loyalty rewards
  • Market research
  • Identifying purchasing patterns
  • R&D
  • Production planning
148
Q

Criticisms of data mining

A
  • Invasion of privacy: Large scale collection can make individuals uncomfortable if info used without consent
  • Data breaches: Risk of security breach where sensible info may be made public
  • Discrimination: May unintentionally discriminate against groups which worsen social / economic disparities
149
Q

Uses / impacts of technology on decision making

A
  • Provides tools for data analysis improving efficiency and communication
  • Innovation driven by technological advances, providing competitive advantage
  • May benefit from these advancements through improved workplace experiences
150
Q

Positive impacts of technology on business decision making

A
  • Data driven decision making: Informed deliciosos based on real time insights / trends improving business performance
  • Efficiency and productivity: Automation enhances operational efficiency, improving decision making by streamlining processes and reducing human error
  • Communication / collaboration: Online communication speeds up decision making
  • Customer experience: Monitoring customer experiences can improve customer interaction / tailor training for employees
  • Innovation / adaptability: Tools for R&D allow adaptation to changing market conditions as trends identified in real time
  • Supply chain management: Can track goods real time, improving efficiency of supply chains
151
Q

Legal, ethical, and practical concerns of technology on decision making

A
  • Data security / privacy: unauthorised access to sensible information
  • Ethical use of data: Biases leading to discrimination, lack of transparency, damaging customer trust
  • Employee training / adaptation : Skill gaps among employees, resistance to change may impact introduction of digital processes
  • Data quality / accuracy: Inaccurate data can lead to poor decisions making
  • Dependency / reliability: System failures can disrupt business operations
  • Environmental impact: Increases energy consumption, concerning environmental sustainability, disposable of equipment also environmentally problematic