Studied by 4 people
What is batch production?
A method of production where one type of product is made and then production is switched to make a different product
What is flow production?
Production of one product that takes place continuously using a production assembly line. Also called mass production
What is job production?
A method of production where products are made individually
What are the advantages of job production?
Item is likely to be at a high quality
designed to meet the individual needs of the customer
business can charge a high price and make a good profit
What are the disadvantages of job production?
Can be a high cost production method ( especially if it requires skilled workers )
Production process may be slow
What are the advantages of batch production?
Batches can be varied to meet the needs of different customers
There are no storage costs if goods are made to order
It’s cheaper than job production
What are the disadvantages of batch production?
Machines need re-setting in between batches which costs money
Stocks of raw materials may be needed
Tasks may be boring and repetitive for workers leading to poor motivation and retention
What are the advantages of flow production?
Large quantities are produced for sale
The business may gain economies of large-scale production which can reduce unit costs
Use of machinery/automation can reduce costs
Use of computer controlled machinery allows for some variation in products
What are the disadvantages of flow production?
Mass-produced goods may not be of high quality
The business may need to store large stocks ready for use in the production line
Production can be disrupted ( e.g. mechanical breakdown )
Tasks may be boring and repetitive for workers leading to poor motivation and retention
How is robotics used in the tech of production?
Robots can be programmed to do work such as welding, tightening blots and paint-spraying in the production of cars
How are computers used in the tech of production?
Computers are programmed to control Machines and help workers to do their work
How is automation used in the tech of production?
Completes repetitive tasks without continuous input from an operator
eg. a machine to fill tins of paint and seal a lid on them or sensors to control heating systems
What are the advantages of using tech in production?
Machines can replace workers reducing costs
Workers productivity is increased due to computers helping them work faster and produce more, which also reduces costs
Waste is reduced as machines are usually more accurate than humans
Production can be flexible as machines can be programmed to change what is produced
technology can work 24/7 without leave reducing costs and increasing output
Human safety is improved as machines can do dangerous work
New tech can lead to new products for businesses to sell
What are the disadvantages of technology in production?
The business may need to employ a skilled worker to program robots and machinery
Workers may need to be retrained to work with the technology which costs money
machines break down disrupting production
New tech may be expensive to buy
Customers may not like interacting with automation
The storage of customer data must meet the requirements of data protection laws
What is the definition of recalls?
When a fault occurs with a product and and the business asks for the product to be brought back in so it can be repaired or replaced
Advantages of prolonging good quality goods and services
Waste is reduced
Recalls are reduced
returns are reduced
The business gains a good reputation
What are the advantages of quality control?
Stops poor goods and services being sold
Is a system for inspecting the quality of the goods or services
produced and they are of a good standard
Improves the reputation of the business
What are the disadvantages of quality control?
It doesn’t prevent waste
Inspection can be costly
It does not encourage workers to be responsible for the quality
What Is quality assurance?
An approach that involves the whole business focusing on quality with the aim of preventing quality problems from arising
What is quality control?
A system for inspecting the quality of the goods or services produced and ensuring that they are of the required standard
What are the advantages of quality assurance?
It would reduce wastage and costs
All workers are responsible for the quality which may motivate them to take care
Good quality improves the businesses reputation
What are the disadvantages of quality assurance?
Workers may be stressed by the responsibility of having to check the quality of their own work
What are the advantages of face-to-face selling?
can increase sales
helpful when customers like personal advice from assistants
Can help with business to business sales
For some services this may be unavoidable ( restaurants )
The customer can bargain with the seller over the price
What are the disadvantages of face to face selling?
May not be convenient for customers
Customers bargaining for a better price my reduce profits
Retailer costs are high If expensive shops are needed
What are the advantages of telesales?
Can increase sales by customers asking questions about products and bargaining the price
May cost less than selling from a shop
What are the disadvantages of telesales?
Costs to store goods in warehouses can be expensive
Workers may cold call which can be annoying to customers
What are the influences of e-commerce of business?
Levels of employment
New skills
Location
Provision of click and collect services
Creation of new departments
business opportunities
Delivery options
What are the advantages of e-commerce into business?
Markets have increased as businesses can sell more easily around the world
Its possible to sell 24/7
The cost of selling is cheaper due to savings on rent and number of workers required
web designers can make a business seem attractive at little cost
What are the disadvantages of e-commerce in business?
Competition has increased including abroad
Delivery and return systems need to be organised
E-commerce need to provide cyber security for themselves and their customers
Its expensive to keep up with the evolving changes in staying up to date with the new technology
What are the advantages of e-commerce to customers?
Easier for customers to compare prices and find the best deals
Customers can buy 24/7
Choice has increased because customers can buy from sellers all over the world
What are the disadvantages of e-commerce to customers?
Its impersonal so customers cannot ask questions
Goods may not appear as they saw on the website and must often be returned at their own cost
Customers have a risk of losing personal information or being a victim of bank freud
Not everyone can use or have access to computer technology
What are the advantages of customer service?
It increases sales by making customers feel confident about the seller and the product they are buying
It encourages customers to return in the future
What are the disadvantages of customer service?
It can be expensive to train employees to deal with customers and provide refunds
What are the advantages of after-sale service?
A good after sale service can improve a sales as customers can buy with confidence
What are the disadvantages of after sale service?
It can be costly to train employees to deal with customers and provide refunds
Returned goods may have to be sold at a loss as clearance goods
What are the advantages of product knowledge?
it increases sales as customers are given information that helps them to make good decisions
What are the disadvantages of product knowledge?
It can be expensive to train workers for product knowledge
What are the advantages of customer engagement?
It increases sales as customers feel comfortable with the buying experience
What are the disadvantages of customer engagement?
It can be costly to train employees to deal with customers
What is an after sales service?
Advice and help given to a customer after they have brought a product or service
What is the consumer law?
The area of law which protects the customers of a business mainly through the Customer Rights Act of 2015
The Consumer Rights Act 2015 gives customer’s protection when they buy goods and services. It states they must be:
Of satisfactory quality
Fit for purpose
As described
What is the consumer law’s impact on production of quality goods and services?
Responsibility: Goods and services produced must be of good standard, fit for purpose and of satisfactory quality
Action: The business must have good quality control or assurance processes
Law broken:
The business must replace or repair a faulty good or provide a refund
The business may lose a sale
It will cost the business to replace or repair the product or service
The business may gain a reputation for poor quality leading to a reduction in sales
What is the consumer law’s impact on advertising
Responsibility: Goods and services must be as described
Action: The business must be legal, decent, honest and truthful in its advertising
Law broken:
Goods can be returned by the consumer which costs money
The business may gain a reputation for bad quality leading to a reduction in sales
What is the consumer law’s impact on safety of goods?
Responsibility: Goods and services must be safe to use-they must not lead to a risk of injury or death
Action: The business must make sure the design of the product is safe and that services are provided in a safe way
Law broken:
The business may have to pay a lot of money in compensation if their product or service results in injury or death
The business may gain a reputation for bad quality leading to a reduction in sales
The business will have to stop selling the good or service which can cost money
The business may be forced to close
How does cost influence business location?
Locating a business in a place where the cost of land, premises or labour is low allows for save on office rent or wages
Location in areas with good trade routes for access to raw materials
Access to cheap and reliable ICT communication
How does proximity to market influence business location?
Service businesses must locate near their customers
Manufacturing companies may locate near their customers for easier communication
Being closer to market can reduce the costs of transporting produce
How does proximity to labour influence business location?
A business needs a supply of skilled workers
A business that needs a lot of unskilled labour may locate in a highly populated/ high unemployment area
How does the government influence business location?
The government may need to give business grants towards start up costs or it may reduce corporation tax for businesses locating in an area of low employment, which may encourage firms to locate in enterprise zones
What are the 4 stages of procurement?
Identifying goods and services to buy
Choosing suppliers
Ordering goods and services
Receiving deliveries from suppliers
What is the definition of procurement?
The management of purchasing within a business
How does identifying goods and services to buy influence procurement decisions?
Which season the business is buying for
Changes in tech affect the products businesses sell
Changes in fashion and lifestyle affect the products a business sells
How does choosing suppliers influence procurement decisions?
Dependant on the quality of goods or services customers want
Reputation and reliability of suppliers is important
How does ordering goods and services influence procurement decisions?
A business completes an order from stating what it wants and sending it to a supplier
How does receiving deliveries from suppliers influence procurement decisions?
A business will arrange for workers to receive the goods and an area where they can be stored
factors influencing business location
costs
government
proximity to materials
proximity to labour
proximity to marker
Logistics
the process of organising the transport of goods from the seller to the buyer
Factors to choose suppliers
time
reliability
length of supply chain
costs
customer service
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