bus 2

• what is operations

  the business functions that organises, produces and delivers products
• what do operations do

  turns raw materials into finished goods or service
• what is the production process

  a process that uses resources to produce goods/services that customers will buy
• what are the 3 production methods

  flow batch job
• what are the key features of job production

  one-off/ bespoke products

  focuses on customer needs

  high profit margins

  specialist work force

  production process takes time
• what are the key features of batch production

  some flexibility

  semi-skilled staff

  larger volumes than job

  some automation

  reduce productivity between batches
• what are the key features of flow production


  standardised production

  low skilled workers

  high automation

  high volume and low margins

  set up cost are expensive
• what is operations closely linked to

  productivity

  flexibility

  costs

  quality
• what odes controlling costs in the operations process allow a business to do

  lower prices or high profit margins
• what technology can be used during operations

  supply chain management

  GPs geographic positioning system

  EPOS electronic point of scale

  3D printing

  e-commerce
• what positive impacts can technology have on operations

  lower production costs

  speeds up production

  easier to communicate with customers

  fewer mistakes
• what negative impacts can technology have on an operation

  costly to set up

  can become obsolete

  expensive and time consuming to train employees

  have to lower prices as it not hand made
• what is economies of scale

  average costs fall as output increases- benefit of being big
• what is the advantage of gaining economies of scale

  can decrease price and increase target market
• what is productivity

  output per worker per time period
• what is the benefit of productivity

  lower costs of producing an item
• how do you increase productivity

  lowering costs of inputs

  increasing amount produced
• what factors affect choice of technology used

  productivity-will it increase

  flexibility-do you need it

  costs-set up high/cost per item low

  quality can be maintained
• why is it important to balance the use of technology

  you need to increase production and productivity while keeping a level of flexibility to meet needs .
• how does the choice of suppliers impact a business

  costs

  flexibility

  reliability

  customers service/relations
• why is finding the right supplier be crucial to a business

  competitiveness

  success
• us it easy to choose a supplier?

  no because there is so much to consider, it depends what factor is important to you
• what makes a good supplier?

  value for money

  reliable deliveries

  high quality

  short lead time (quick)

  discounts/deals

  flexible deliveries
• why does a business need a supplier they can trust?

  1. flexible suppliers will provide stock that meets customer needs
  2. late deliveries will lead to no production and no sales
  3. bad quality will upset customers- returns so less revenue and lose customers
  4. it will affect your reputation. sales will decrease and lose loyal customers
  5. if you use one big supplier you can gain economies of scale
  6. if your suppliers delivers for you, you are taking a risk
• what should a business try do with the management of its stock

  be effective and efficient
• what lead time ?

  time it takes to deliver stock
• what are buffer stocks

  minimum stock level kept- safety net in case they are needed
• what is jit

  stock management system. it arrives on time to use it, you do not store buffer stocks, you make products deliver on the day
• what is essential with jit

  good reliable suppliers
• what is the benefit of holding stock (jic just in case)

  increases in demand can be met

  damaged stock is not an issue

  buy in bulk- discounts EOS

  low risk of running out of stock
• what is the benefit of holding no stock

  lowers costs of storage

  less damage/theft

  no need for stock control staff

  money saved on stock control staff can lead to decrease in price so increase sales
• what questions should a business consider about the sales process

  how can we grab customers attention

  how can we be prompt/quicker

  how can we meet customer needs better

  how can we encourage loyalty

  will customers be happy with after the sales service
• why must the sales process be managed carefully

  to ensure customer satisfaction
• what factors must a business consider when selling their products

  product knowledge

  speed/efficiency

  customer engagement

  feedback
• what are 2 ways to achieve good quality

  quality control

  quality assurance
• what is quality assurance

  a system that minimises mistakes/errors

  every part of the process is checked and connected during production
• what are the key aspects of quality assurance

  1. defects spotted before made
  2. reduces waste
  3. zero errors reach customers
• why is good servies more important than price for most customers

  it is about quality

  usually the reason they buy the product
• what can good customer service do to a product

  add value to the product
• what is the sales process

  identifying the key stages that contribute to customer satsifaction