Topic 2.3.1 - .3.4

• What is the purpose of business operations?

  To produce goods and provide services that meet customer needs, generate revenue, achieve profitability and create competitive advantage
• What are the types of production?

  Job production - where a single product is made at a time for a specific client. Products offer high quality, therefore a higher price can be charged.

  Batch production - where small quantities of identical products are made when a business wants to make more at one time. It can be switched over to make new products.

  Flow production - using production lines with continuous movement of lines to mass produce products.
• What are the benefits/disadvantages of job production?


  Benefits:

  • Unique products for clients
  • High prices can be charged
  • Motivated workers work hard

  Disadvantages:

  • Skilled labour is a large expense
  • Wide range of tools required
• What are the benefits/disadvantages of batch production?


  Benefits:

  • Production can be changed
  • More machinery, less labour
  • Specialised employees = more effective

  Disadvantages

  • Less motivated workers
  • Production stops when machines change
  • Delays in batch = decrease in productivity
• What are the benefits/disadvantages of flow production?

  Benefits:

  • Large quantities made
  • Automated process
  • JIT system can be used

  Disadvantages:

  • High set up costs
  • Low motivation due to repetitive tasks
  • Breakdown of machinery = loss of production
• What are the impacts of the different types of production?

  Job production - best needed when making only one product at a time

  Batch production - when a group of products are needed

  Flow production - for producing large quantities
• What are the impacts of technology on production?

  Lower costs - machinery does not need to be paid except the first initial cost

  Improvement in quality - no human error can occur

  Improvement in productivity - robots can work 24/7 and require no breaks

  Improvement in flexibility - machinery can produce a wide range of products, saving time for workers
• What is Just In Time stock (JIT)?

  Stock that a business does not keep within its shops/warehouses. The business would receive the goods on the day they need them.

  Advantages:

  • No wastage
  • Stock is less likely to go out of date
  • Improved cash flow

  Disadvantages:

  • Can't meed unpredicted increases in demand
  • Can't quickly replace broken parts
• What is Just In Case stock (JIC)?

  Stock that a business would keep for products just in case they're needed
• What is the role of procurement?

  Procurement is the process in which a business buys raw materials, products, services and other resources from a supplier to produce their own goods
• What does procurement need to ensure?

  Quality - businesses want suppliers that offer best quality products

  Delivery - JIT method requires deliveries to be on time otherwise production can stop

  Availability - suppliers need to make sure stock is available, if not production slows down and customers might shop elsewhere

  Cost - both sides have to agree on pricing for raw materials

  Trust - built through reliable deliveries and high quality products/services
• What is quality control?

  Inspectors that check that standards have been met at the end of the production process.

  It includes:

  • Inspection
  • Testing
  • Sampling
• What is quality assurance?

  How a business can design the way a product is produced to minimise the chance of errors. It's a way of preventing mistakes and defects in the manufacturing stage of the products and to avoid problems during delivery.
• How can a business control costs to gain a competitive advantage?

  Controlling the quality of products means there will be less wasted resources and materials. By having less waste, cost of production will be lower

  If a businesses costs are lower, they can charge a lower price or make a higher profit
• How do businesses use quality to build a competitive advantage?

  • Differentiating their products
  • Meeting customer needs
  • Building a strong brand
  • Charging premium prices for their products
• What is the sales process?

  When selling products to the end user, there are several skills which are essential for providing.

  Product knowledge - understanding a products features allows to showcase its benefits

  Speed/efficiency - customers expect their orders to be correct within sufficient speed

  Customer engagement - the relation that the customer has with the business

  Responses to customer feedback - feedback is important as it helps a business to improve their products/services
• What is the post sales service?

  The service a customer receives after they have purchased a product. It can be the warranty, repairs or any maintenance on their product
• What is the importance of providing good customer service?

  • Unhappy customers have the ability to tell potential customers and persuade them not to buy from a certain brand.
  • Happy customers will come back and buy again from brands that offer a good service.
• What is the customer service method a business should follow?

  Listen to the customers problem

  Apologise for the inconvenience

  Solve the issue

  Thank them for the services

  LAST