business - operations

what are the 3 methods of productiono

job

flow

batch

what is job production

products are made individually

what is flow production

production takes place continuously using an assembly line and all goods are indentical

what is batch production

on type of product is made then production is switched to make a different type of product

what are 2 advantages of job production

item is likely to be high-quality, unique and customised to meet customer needs

business can charge a higher price and make a good profit

what are 2 disadvantages of job production

can be a high cost method of production especially if it requires skilled workers

production may be slow so the customer has to wait

what are 3 advantages of batch production

batches can be varied to meet the different needs of customers

there are no storage costs if goods are made to order

its cheaper than job production

what are 3 disadvantages of batch production

machines need re-setting between batches which increases costs

stock of raw materials may be needed

tasks may be repetitive leading to low motivaton and retention

what are 4 advantages of flow production

large quantities are produced for sale

business might gain economies of scale which reduces unit costs

machinery and automation can reduce labour costs

computer controlled machinery allows some variation

what are 4 disadvantages of flow production

mass produces goods may not be high quality

business need large stocks of materials ready to use

production can be distrupted by mechanical breakdown

tasks may be repetitive leading to low motivation and retention

what are 3 ways a business can use technology

robotics

computers

automation

what is automation

replacing humans with machinery to do repetitive tasks that is controlled by a computer

what are 7 advantages of using technology in production

machines replace workers which reduces costs

worker productivity is increased as computers allow them to work faster and easier

production can be flexible as computers can be programmed to change what is being produced

technology can operate 24/7 and never needs time off

human safety is improved as machines can do dangerous jobs

new technology leads to new products for businesses to sell

what are 5 disadvantages of technology in production

businesses need to recruit skilled workers to program computers

workers need to be retrained to work with the new technology

machines can break down which disrupts production

new technology can be expensive to buy and customers may not even like automation

storage of customer data must follow data protection laws

what are three features of a quality product

its fit for purpose

complies with legal agreements

does what the customer expects

what are 2 benefits of providing quality goods

waste is reduced

business gains a good reputation

what is 3 ways waste is reduced

less recalls of defective products

less returns from dissatisfied customers

less goods having to be sold as seconds at a lower price

what are 3 ways a business gains a good reputation

customers buy from the business again in the future

customers recommend the business to others

reduces the risk of developing a poor reputatation

what is quality control

checking if a product is good quality at the end of production by an inspector

what are 3 advantages of quality control

stops poor quality goods being sold

production continues while inspection takes place

improves business’s reputation

what is quality assurance

ensuring the goods are of satisfactory quality at every stage of production by workers

what are 3 disadvantages of quality control

it doesn’t prevent waste

inspection can be costly

it doesn’t encourage workers to be responsible for quality

what is a disadvantage of quality assurance

workers may be stressed from the responsibility of having to check the quality of their work

what are 3 advantages of quality assurance

reduces wastage and costs

higher motivation as all workers are responsible for quality

quality goods improve business reputation

what are 3 methods of selling

e-commerce

telesales

face to face

what are 4 advantages of face to face selling

can increase sales

useful when customers want advice and personal service

can help sales in business-business selling

might be unavoidable for some services

what are 3 disadvantages of face to face selling

it might not always be convenient for customers

if customers bargain prices, it reduces profit

retailer costs are high from rent and wages

what are 2 advantages of telesales

can increase sales as customers can bargain price and ask questions

may cost less than selling from a shop

what are 2 disadvantages of telesales

sellers may cold call which can be a nuisance for customers

costs involved such as warehouses to store goods and payment to telesales workers

what is e-commerce

the bringing together and buying and selling electronically

what are 7 influences of e-commerce on a business

levels of employment is reduced

new skills are required

cheaper locations for warehouses

provision of click and collect services

creation of new departments

more business opportunities

speed and cost of delivery options

what are 4 advantages of e-commerce to a business

allows global selling and sales aren’t affected by pandemics

possible to sell 24/7

costs of selling are much lower

web designers can make a business appear attractive at little cost

what are 4 disadvantages of e-commerce

competition is greater

delivery systems must be organised

good cyber security systems must be in place

keeping up with new technology increases costs

what are 3 advantages of e-commerce to customers

they can compare prices more easily

customers can buy 24/7

choice has increased from global selling

what are 4 disadvantages of e-commerce to customers

impersonal so can’t ask for questions or advice

goods are bought as they appear so may not be what the customer really wanted

if systems aren’t secure, personal information could be at risk

not every can and has access to technology

what are 4 features of good customer interaction

customer service

after sales service

customer engagement

product knowledge

what are 2 advantages of customer service

customers feel confident which increases sales

encourages customers to buy again in the future

what is a disadvantage of customer service

costs of wages and training workers to deal with customers

what is an advantage of after sales service

increases sales as customers can by with confidence and encourages customer loyalty

what are 2 disadvantages of after sales service

costs of wages and training workers to deal with customers and refunds

returned goods may have to be sold at a loss or not at all

what is an advantage of product knowledge

increases sales as customers have information that helps them make good decisions

what is a disadvantage of product knowledge

costs for training staff and giving them knowledge

what is an advantage of customer engagement

increases sales as customers are comfortable with the buying experience

what is a disadvantage of customer engagement

there are costs with training staff to be welcoming etc

what are 4 key facts about consumer law

they are designed to protect consumers from unscrupulous sellers

advertising is controlled by law

consumers have the right to return faulty goods within 30 days

when services aren’t completed on time or at a reasonable standard consumers can ask for a price reduction or to have the service redone

what are 3 things the consumer rights act of 2015 says

goods and services must be:

fit for purpose

as described

satisfactory quality

what does of satisfactory quality mean

the quality of goods or services must reflect the price paid for them

how does consumer law affect the production of goods or services

business must have good quality control or assurance

how does consumer law affect advertisement

business must be legal, honest and truthful in its advertising

how does consumer law affect the safety of goods

businesses must make sure the design of products are safe

what are 4 consequences of not producing safe goods

business could have to pay compensation money for death or injuries

business may gain a bad reputation

business will have to stop selling the product which increases costs

business may be forced to close

what are 2 consequences of not following consumer law for advertising or production of quality goods

goods can be replaced or returned which costs money

business may gain a reputation of poor quality

what are 5 factors that affect business location

costs

proximity to market

proximity to labour

proximity to materials

government

what are the 4 stages of procurement

indentifying goods and services to buy

choosing suppliers

ordering goods and services

recieving deliveries from suppliers

what are 3 influences on what goods a business buys

what season it’s buying for

changes in technology

changes in fashion and lifestyle

what are 2 influences on the supplier a business chooses

dependent on the quality of goods customers want

reputation and reliability of suppliers

what is an influence of recieving deliveries from suppliers

a business must arrange workers and an area to recieve the goods

what are 4 logistical considerations made

time

reliability

length of supply chain

costs

customer service

how is time and reliability a potential logistical problem

supplier may be short of materials which delays production of goods which could cause the business to lose sales

how is length of supply chain a potential logistical problem

a business that makes a component could have a delay which causes a knock-on effect leading to the business not being able to produce goods

how is costs a potential logistical problem

high delivery costs increase total production costs which means the business may not be able to sell at a profit

how is customer service a potential logistical problem

business may lose customers if businesses that buy from it aren’t happy with the customer service they recieved

what does logistics mean

the process of organising and transporting goods from the seller to the buyer

what is procurement

the management of purchasing within a business