Business studies: operations

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What is batch production?

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1

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

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2

What is flow production?

Production of one product that takes place continuously using a production assembly line. Also called mass production

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3

What is job production?

A method of production where products are made individually

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4

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

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5

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

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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

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7

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

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8

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

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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

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10

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

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11

How are computers used in the tech of production?

Computers are programmed to control Machines and help workers to do their work

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12

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

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13

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 costsWaste 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

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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

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15

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

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16

Advantages of prolonging good quality goods and services

  • Waste is reduced

  • Recalls are reduced

  • returns are reduced

  • The business gains a good reputation

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17

What are the advantages of quality control?

  • Stops poor goods and services being sold

  • Inspection can take place while production is happening-output is not affected

  • Improves the reputation of the business

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18

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

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19

What Is quality assurance?

An approach that involves the whole business focusing on quality with the aim of preventing quality problems from arising

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20

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

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21

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

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22

What are the disadvantages of quality assurance?

Workers may be stressed by the responsibility of having to check the quality of their own work

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23

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

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24

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

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25

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

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26

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

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27

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

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28

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

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29

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

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30

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

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31

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

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32

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

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33

What are the disadvantages of customer service?

It can be expensive to train employees to deal with customers and provide refunds

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34

What are the advantages of after-sale service?

A good after sale service can improve a sales as customers can buy with confidence

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35

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

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36

What are the advantages of product knowledge?

  • it increases sales as customers are given information that helps them to make good decisions

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What are the disadvantages of product knowledge?

It can be expensive to train workers for product knowledge

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What are the advantages of customer engagement?

It increases sales as customers feel comfortable with the buying experience

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What are the disadvantages of customer engagement?

It can be costly to train employees to deal with customers

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40

What is an after sales service?

Advice and help given to a customer after they have brought a product or service

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41

What is the consumer law?

The area of law which protects the customers of a business mainly through the Customer Rights Act of 2015

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42

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

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43

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

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44

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

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45

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

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46

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

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47

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

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48

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

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49

What are the 4 stages of procurement?

  1. Identifying goods and services to buy

  2. Choosing suppliers

  3. Ordering goods and services

  4. Receiving deliveries from suppliers

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50

What is the definition of procurement?

The management of purchasing within a business

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51

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

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52

How does choosing suppliers influence procurement decisions?

  • Dependant on the quality of goods or services customers want

  • Reputation and reliability of suppliers is important

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53

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

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54

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

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