business operations

• What is the main responsibility of the operations area in a business?

  To turn inputs into outputs
• What is the production process?

  The method of converting inputs to outputs
• What is job production?

  Producing products to meet specific customer requirements
• Give an example of job production.

  Made-to-measure clothes
• What is a disadvantage of job production?

  It is expensive to produce unique products
• What is flow production?

  Producing large numbers of identical products continuously
• Name an advantage of flow production.

  Ability to produce large volumes of products
• What is a disadvantage of flow production?

  Lack of flexibility in product design
• How is efficiency measured in production?

  Using cost per unit
• If a business produces 10,000 units at a cost of £10,000, what is the cost per unit?


  £1
• If a business reduces its production cost from £10,000 to £7,500 for 10,000 units, what is the new cost per unit?

  £0.75
• What factors affect a business's efficiency?

  Employee motivation and skills of managers
• What is lean production?

  A method to reduce waste in production
• What types of waste does lean production aim to reduce?

  Unsold products and wasted employee time
• What does kaizen mean?

  Continuous improvement
• How does just-in-time (JIT) production work?

  Regular deliveries of materials just before needed
• What is a disadvantage of JIT stock control?

  Risk of running out of stock due to delays
• What is an advantage of JIT production?

  Reduces waste and storage costs
• What is a disadvantage of JIC stock control?

  Requires more storage space and costs
• What does procurement mean?

  Getting the right supplies at the right time
• What are the three key factors when selecting a supplier?

  Cost, quality, and reliability
• How does logistics impact a business?

  It affects costs and efficiency of operations
• What is the role of transportation in logistics?

  Getting goods from one part of the supply chain to another
• What is the importance of efficiency in a business?

  It reduces production costs and improves performance
• What can happen if a business focuses too much on costs and efficiency?

  It may negatively impact product quality
• What is a supply chain?

  The process of developing and providing goods
• What are the benefits of an effective supply chain?

  Reduces waste and improves customer satisfaction
• What can an ineffective supply chain cause?

  Late deliveries and unsatisfactory products
• What does good quality mean for a product or service?

  It is of a high standard.
• How can quality be demonstrated in a business?

  Through clean facilities and polite employees.
• What do customers expect from goods and services?

  Performance as described and reasonable quality.
• What is the impact of a reputation for high quality?

  It leads to business success and growth.
• What are the two ways businesses manage quality?

  Quality control and quality assurance.
• What is quality control?

  Inspecting products to ensure high standards.
• How can businesses gather feedback for quality control?

  Through customer questionnaires at the point of sale.
• What is a disadvantage of quality control?

  It identifies faults only at the end of production.
• What is quality assurance?

  Carrying out quality checks during production stages.
• How does quality assurance differ from quality control?

  Quality assurance involves checks during production.
• What is Total Quality Management (TQM)?


  A culture where all employees manage quality.
• What are some advantages of TQM?

  Cost reduction and increased customer satisfaction.