Unit 3 Business Operations AQA GCSE Business 9-1: 8132

Flashcards about production processes, procurement, quality, and customer service.

What type of production is used for one-off, custom products, like houses or bespoke wedding cakes?

Job production

What are some potential drawbacks of job production?

High costs due to specialization and longer lead times, leading to higher prices and reduced price competitiveness.

What type of production involves continuous, mass production of standardized products on a production line?

Flow production

What are the benefits of flow production?

Low per-unit costs due to high volume and automation.

What are the drawbacks of flow production?

High initial setup costs for land and capital to create the production line.

What is the primary goal of lean production?

To minimize waste and increase efficiency.

What are some tactics used in lean production?

Quality assurance, Kaizen (continuous improvement), process examination, and just-in-time stock management.

What is the difference between quality assurance and quality control?

Quality assurance aims to prevent quality issues by perfecting the production process, while quality control deals with mistakes after they happen.

What is the Japanese term for 'continuous improvement'?

Kaizen

What is the role of procurement?

Establishing relationships with suppliers to buy raw materials, producer goods, and services.

What is Just-in-case (JIC) stock control?

A 'push' system where stock is ordered and stocked in anticipation of future need.

What are potential disadvantages of Just-in-case (JIC) stock control?

High costs in storage and insurance, and the risk of stock becoming perishable or obsolete.

What is Just-in-time (JIT) stock control?

A 'pull' system where stock is ordered and arrives just before it is needed.

What are the advantages of Just-in-time (JIT) stock control?

Low stock, storage, and insurance costs, and reduced risk of spoilage or obsolescence.

What are factors that influence the choice of supplier?

Price, quality, reliability/speed of deliveries, flexibility in quantities, reputation/ethical issues, and payment terms.

What is the supply chain?

The sequence of businesses and processes that transform raw materials into a finished product or service.

What is logistics in the context of the supply chain?

The movement of goods between the processes in the supply chain.

What is Total Quality Management (TQM)?

A management approach where everyone involved in the manufacture of a product or the delivery of a service are internal customers to each other, and therefore continuously check and ensure quality at all stages of the manufacture or delivery.

What are potential benefits of Total Quality Management?

Lower cost as fewer mistakes are made, improves staff motivation as they take more pride in their work and are listened to, better reputation as all aspects of the customer experience are higher quality

What is 'Quality Control'?

A check performed to see if a completed product meets the required quality standard

What are the drawbacks of quality control?

Waits for the whole product to be created before checking, leading to high costs in rework and waste in defective products

What is 'Quality Assurance'?

Checks made to materials, machinery and the product itself during the manufacturing process that insures a high quality outcome

What is the benefit of quality assurance?

Preventative: reduces costs as mistakes are found before additional work is done to a product

What are the costs of high quality?

Higher price of raw materials, higher staff training costs, higher costs of quality inspection

What are the benefits of high quality?

Increased revenue though improved reputation, can set higher prices, lower costs in reduced product recalls

What is the PEAK process in customer service?

Prospect, Engage, Acquire, Keep

What is 'Brand Image'?

The consumers’ perception of the brand; its character, qualities and shortcomings. It is developed over time and operates as a consistent theme through advertising campaigns.

What is 'Buffer Stock'?

A stock of raw materials held in reserve to protect the production process from unforeseen shortages.

What is 'Customer Engagement'?

The relationship between the business and the customer that puts the customer’s
requirements at the centre of the operation to build brand loyalty.

What is 'E-Commerce'?

Business transactions carried out electronically on the internet.

What is 'Economies of Scale'?

The cost advantage of producing on a large scale. As output increases the unit cost decreases.

What is 'Fixed Costs'?

The costs that stay largely the same, regardless of the business’ output.

What is 'Flow Production'?

Using a production line to make goods continuously and in large numbers.

What is 'Job Production'?

A method of creating a single product to meet an individual order.

What is 'Just In Case (JIC)'?

Organising procurement to ensure that the production process never runs out of stock,
reducing the number of sales lost due to insufficient raw materials.

What is 'Just In Time (JIT)'?

Organising the ordering of raw materials and components to be delivered just before they will
be used, reducing the need for storage.

What is 'Lean Production'?

Continually working to reduce the resources used to create products: raw materials, labour,
machines and premises

What is 'Logistics'?

Managing the movement of supplies and products to ensure the timely delivery of supplies to
the production process and finished products to customers.

What is 'M-Commerce'?

Business transactions are carried out electronically by mobile phone.

What is 'Procurement'?

The process of buying goods and services including dealing with:
• demand
• selection of suppliers
• analysing and negotiating prices
• making the purchase
• managing payments.

What is 'Product Knowledge'?

An in-depth understanding of the features, use and application of the good/service that will
enable the person selling it to provide any information that the purchaser wants before
committing to buy.

What is 'Product Recalls'?

The withdrawal from sale by the manufacturer of a defective or contaminated item.

What is 'Productivity'?

The amount produced by a worker/machine/factory in a given time; the ability to produce
more output with fewer resources.

What is 'Supplier'?

A business that provides goods/services.

What is 'Supply Chain'?

The network of organisations, people, activities, information and resources that take the
product/service from supplier to customer.

What is 'Total Quality Management (TQM)'?

A philosophy that involves everyone in the business in the quest for continual improvement in
the attitudes, practices, structures and systems that combine to create a top-quality product.

What is 'Trade Credit'?

The process of buying items from a supplier and paying for them later; for example, 30 days
after invoice date.