2.3

• What is job production?

  Where a single product is made at a time for a specific client or customer
• What are the advantages of job production?

  • Able to charge higher prices.
  • Can attract higher- income customers.
  • Easier to retain customer loyalty.
  • Less competitors.
• What are the disadvantages of job production?

  • Time consuming.
  • Narrow target market as operates in a niche market.
  • Need highly qualified workers therefore higher salaries.
  • High production costs.
• What is batch production?

  Where small quantities if identical products are made.
• What are the advantages of batch production?

  • Can easily alter batches to meet customer demands.
  • Time efficient.
  • Wide target market.
  • Can take advantage of economies of scale.
• What are the disadvantages of batch production?

  • Idle time.
  • Some product may be wasted.
  • Quality cannot always be guaranteed.
  • Expensive machinery.
• What is flow production?

  Using production lines with continuous movement of items through the process.
• What are the advantages of flow production?

  • Maximises productivity.
  • Little manual labour.
  • 24 / 7 production.
  • Can take advantage of economies of scale.
• What are the disadvantages of flow production?

  • Reliant on machinery.
  • Large short term expenses.
  • May require large space for storage.
  • Breakdown on the production line halts all production.
  • Repetitive work is demotivating for workers.
• What are the features of a bar gate stock graph?

  • maximum stock level.
  • minimum stock level.
  • re-order level.
  • lead time.
• What is the minimum stock level also known as?

  the buffer stock
• What does JIT stand for?

  just in time
• What are the advantages of JIT?

  • reduced cost of holding stock
  • less likely of stock being damaged, spoiled, stolen or becoming obsolete
  • no stock wasted / reduced costs
• What are the disadvantages of JIT?

  • any delay in delivery may halt production
  • less able to meet sudden surges in demand
  • cant take advantage of economies of scale
  • no buffer stock
  • reliant on relationship with supplier
• What is the difference between procurement and logistics?

  • procurement- the process of buying raw materials from supplier.
  • logistics- how much, how often and where from.
• What is quality control?

  Involves checking the quality of a product at the end of the production line by a team of quality controllers.
• What are the benefits of quality control?

  • system is not disruptive to workers as quality is inspected at the end of the production line.
  • defective products will not make it to market.
• What are the drawbacks to quality control?

  • can be a lot of waste as defects are only found at the end of the production process.
  • process can be costly, not only in terms of waste but as inspectors must be paid.
• What is quality assurance?

  Requires each individual worker to be responsible for the quality of their own work.
• What are the benefits of quality assurance?

  • can be motivating to staff as they have more responsibility.
  • theoretically, there should be no waste as errors are immediately rectified before products move along the production line.
• What are the drawbacks of quality assurance?

  • production may be more time consuming as each worker checks their own quality.
  • staff may need training to take on the extra responsibility.
• What are the stages of the sales process?

  • product knowledge
  • customer engagement
  • speedy and efficient service
  • customer feedback
  • post-sales service
• What is a benefit to a business providing a post-sales service?

  • able to stay in contact with customers
  • expose customers to new products / services and offer discounts if they were to make another purchase
  • customer loyalty may increase