Business: Operations

What is Job production and some examples?

A single product is made at a time specific to a client

Wedding dresses/rings/cakes

What are the advantages of Job production?

• Bespoke, unique

• Motivated workers

• More productive, less absenteeism

• Higher prices charged and higher profit margins

What are the disadvantages of Job production?

• Skilled labour + craftsmen are expensive

• Wide range of tools needed

• Hard to speed up if demand increases

• Hard to duplicate

• Less efficient

What is Batch production and some examples?

A manufacturing process where a specific quantity of a product is produced in one go.

Newspapers

Bread

What are some advantages of Batch Production?

• Flexibility to meet demand

• Mechanised, less labour

• Employees specialise & become good at job

• More than 1 item

• Cheaper per item

What are some disadvantages of Batch Production?

• Repetitive, less motivated

• ‘Idle time’ between batches

• One batch can hold up all the batches

• Storage issues

What is flow production and some examples?

(Mass) Producing extremely large quantities of standardised products using specialised equipment and machinery

Coca Cola

Heinz beans

What are some advantages of Flow Production?

• Computerised + automated - improved quality & quicker

• Larger quantities (cheaper bulk buy resources)

• Just-in-time system (don’t pay to store resources)

What are some disadvantages of Flow Production?

• Capital intensive

• Slim profit margin

• Inflexible and hard to change product

• Repetitive, low motivation

What is quality control?

A meticulous process of inspecting, testing and assessing products or services to make sure they meet specific standards

Mainly about detecting issues

What is an inspection?

examining products for defects, inconsistencies or deviations from the desired quality. Identifying issues before they reach the customer.

What is testing?

Ensuring products perform as expected

What is Process improvement?

Making ongoing adjustments to production to enhance quality.

Training and education

Training employees to maintain quality standards.

Documentation

keeping records of processes and procedures to track and control quality over time.

Standards

Establishing clear quality standards that everyone in the business follows.

What is Quality assurance?

Preventing defects from happening in the first place

• Designing a quality product

• Design good production

• Quality built into every stage of production

• Every worker is responsible for ensuring quality

Advantages and disadvantages of Quality assurance

Advantages	Disadvantages
Reduce waste & cost	Workers may be stressed over responsibility
Workers are responsible for quality → motivation
Improve reputation of business

What is the definition of quality?

Manufacturing - measure of excellence or a sate of being free from defects, deficiencies and significant variations.

Why is quality important?

1. Reputation of the business

2. Gain & retain customers

3. Reduce products returns & recalls

Advantages and disadvantages of quality control

Advantages	Disadvantages
Stops poor quality goods being sold	Doesn’t prevent waste
Production continues whilst inspection does	Inspection can be costly (wages)
Improves business reputation	Workers aren’t encourages to be responsible for quality

What is E-commerce?

Electronic commerce (buying & selling online)

Can accompany or replace physical stores

Advantages	Disadvantages
Reduces cost	High competition
Reduces risk	Need employees with skills in e-commerce
More potential customers	Customers have to wait for products
Open 24/7
Range of payment options

What is M-commerce?

Mobile commerce (e-commerce on mobile devices)

Advantages	Disadvantages
Easily mix sales & marketing	Fraud & security concerns
Mix physical and online stores	Competitors
Direct communication	Needs to be responsive & easy to use
Convenient for busy people	Requires tech literacy

What is the first step of the sales process?

1. Customer interest

   Attract attention

   Marketing to spark desire

   Product knowledge build trust

   Hard - seek out sale

   Soft - providing best info when wanted

What is the 2nd step in the sales process?

• Speed and efficiency

• same/next day delivery is normal

• Pay more for good quality service

• Needs to be easy to navigate online

• Physical stores have to be laid out efficiently

What is the 3rd step in the sales process?

• Customer engagement

• Social media interactions

• Some products need high level of engagement vise versa

• Building & maintaining customer engagement builds the brand

What is the 4th step in the sales process?

• Response to customer feedback

• Build positive customer relationship

• respond on social media

What is the 5th step in the sales process?

• Post-sales service

• Provide tech support

• Return support

• Loyal customers → repeat purchase

What is face-to-face sales?

Personal selling

Persuasive pitch / demonstration / presentation

Build relationship w/ customers & point out benefits & features of product

What is telesales?

Sales/service over the phone

Customer may call for support / to order

Business may call randomly for an order

What is the Importance of sales?

The ability to turn an enquiry into a sale builds good reputation and profit

How is technology used in production?

1. Robotics - Machines programmed to do work e.g. paint praying

2. Computers - Programmed to control machines / help workers e.g. spreadsheets

3. Automation - Machinery completes repetitive tasks without an operator e.g. machine that fills & caps paint cans

Advantages and disadvantages of technology in production

Advantages	Disadvantages
Machines replace workers (cheaper)	Recruit skilled labour to program computers
Reduce cost bc computers help productivity	May have to retrain workers for new machines (costly)
Reduce waste (computers are more accurate)	Machine can break & affect production
Flexible - change program for different products	New technology is expensive

What influence does e-commerce have one a business?

1. Easy & cheaper & 24/7 to launch only online

2. Established businesses leave high street, no rent

3. Target niche markets & charge a premium

What is the importance of good customer service?

1. Customer service - enquiry → sales / repeat sales

2. After-sales service - Return/repair/ customer support/complaints

Chain of analysis: Why is good customer service important?

Good customer service → Enquiry into sale → Good reputation → word of mouth → Loyal customers → Build relationship w customer → repeat sales → increase sales revenue → keep/increase market share → continues success

What is customer engagement?

Communicating with the customer over the life span of the sale & further

What is and why is product knowledge important?

Turn a enquiry into a sale

Build trust in customer

Ensure customer gets desired product → less returns

What is consumer Law?

Sales of Goods Act 1979

• As described

• Fit for purpose

• Satisfactory quality (not faulty/damaged

Consumer Law: If the product does not meet these standards, the customer is entitled to a return, refund or replacement

What determines satisfactory quality?

1. Appearance & finish

2. Durability

3. Fit for use

4. Free from defects

When do consumers have and not have rights?

√ Broken or damaged, unusable or doesn’t match sellers description

X damaged by use/misuse, consumer knew of damage before buying/ consumer changed their mind

What is the protocol for faults before and after 6 months?

Before 6 months

• Seller has to prove than the fault is with the consumer

After 6 months

• Consumer has to prove that the fault was there at time of delivery

Logic chain: what effects on the reputation of a business does ignoring consumer law have?

Business ignores law → legal prosecution → fined → damage reputation → customers shop elsewhere → lose market share → lose revenue → negative impact on profit

What impacts a businesses location?

• Cost of rent

• Government grant / High unemployment areas / cheap, skilled labour

• Bulky/perishable goods will be located near transport (ports)

• Close to customer traffic (footfall)

• Cluster concept (next to similar businesses)

• Near services for employees (childcare etc)

• Close proximity to raw materials (lower transport costs)