2.3

Question 1

Q: What is Job Production, and what is its main characteristic?

Answer 1

A: Job Production involves making one product at a time as ordered by the customer

Question 2

Q: Name two advantages of Job Production.

Answer 2

A: High-quality products and the ability to produce customized items.

Question 3

Q: What is a disadvantage of Job Production?

Answer 3

A: Slow production.

Question 4

Q: What is Flow Production, and what is its primary feature?

Answer 4

A: Flow Production is continuous manufacturing of standardized products on a production line.

Question 5

Q: List two advantages of Flow Production.

Answer 5

A: Low unit costs and rapid production

Question 6

Q: What is a disadvantage of Flow Production?

Answer 6

A: Difficulty in customization.

Question 7

Q: What is Batch Production, and how is it defined?

Answer 7

A: Batch Production involves making groups of the same product as a batch.

Question 8

Q: Name two advantages of Batch Production.

Answer 8

A: Specialized workers and flexibility.

Question 9

Q: What is a disadvantage of Batch Production?

Answer 9

A: Tied-up money in stock.

Question 10

Q: How does 3D printing impact the cost aspect of production?

Answer 10

A: 3D printing reduces manufacturing costs by eliminating the need for expensive tooling.

Question 11

Q: How does 3D printing contribute to flexibility in production?

Answer 11

A: 3D printing allows for easy customisation, meeting specific customer needs and enabling small production runs.

Question 12

methods of production

Answer 12

job production
flow production
batch production

Question 13

Question: Why is efficient procurement of raw materials crucial for manufacturing processes?

Answer 13

Answer: Efficient procurement of raw materials is crucial for ensuring the success of any manufacturing process

Question 14

Question: What are some factors that can influence the efficiency of raw material procurement?

Answer 14

Answer: Obtaining raw materials in the most efficient way is influenced by factors such as quality, delivery, availability, costs, and trust

Question 15

Question: Provide an example of how the quality of raw materials can impact the final product.

Answer 15

Answer: If the raw materials are of poor quality, the final product may not meet the desired standards. For instance, a construction company may need high-quality steel to ensure the structural integrity of a building.

Question 16

Question: What is the significance of delivery in the procurement process?

Answer 16

Answer: Companies need to ensure that their raw materials are delivered on time, at a reasonable cost, and in a reliable manner. Just in Time (JIT) is one such order and delivery process used to achieve this efficiency.

Question 17

Question: Why is availability a critical factor in sourcing raw materials?

Answer 17

Answer: Companies need to ensure that the raw materials they need are readily available. For example, Tesla needs a steady supply of cobalt for their batteries.

Question 18

Question: Why is cost a critical factor in raw material procurement?

Answer 18

Answer: Cost is crucial to ensure companies get the best possible price for their raw materials without sacrificing quality. For instance, a textile manufacturer may need to source cotton at the lowest possible price to remain competitive.

Question 19

Question: Why is trust important in the procurement of raw materials?

Answer 19

Answer: Companies need to work with reliable suppliers who can deliver quality materials on time and at a reasonable cost. Trust is essential to ensure materials meet safety standards, such as a construction company working with a trusted supplier.

Question 20

Question: What is Just in Time (JIT) stock management?

Answer 20

Answer: JIT stock management is a process where raw materials are not stored onsite but ordered as required and delivered ‘just in time’ to be used.

Question 21

Question: List two advantages of Just in Time (JIT) stock management.

Answer 21

Answer: Advantages include minimized stockholding costs and improved cash flow as money is not tied up in stocks.

Question 22

Question: List two disadvantages of Just in Time (JIT) stock management.

Answer 22

Answer: Disadvantages include the reduction of the ability to respond to unexpected increases in demand and increased administrative costs related to frequent ordering.

Question 23

important factors in procurement

Answer 23

cost of raw materials
delivery (costs, speed, reliability)
relationship with suppliers
availability of raw materials
quality of raw materials

Question 24

Question: What does quality management consider in a product?

Answer 24

Answer: Quality management considers the characteristics and features of a product that satisfy the needs of customers.

Question 25

Question: Why is maintaining a level of quality important for businesses?

Answer 25

Answer: Businesses need to maintain a level of quality to attract and retain customers.

Question 26

Question: What are the key approaches to managing quality in the production process?

Answer 26

Answer: There are several approaches to managing quality, including Quality Control and Quality Assurance.

Question 27

Question: What is Quality Control?

Answer 27

Answer: Quality Control involves inspecting the quality of output at the end of the production process. Quality specialists check standards.

Question 28

Question: What is a benefit of Quality Control?

Answer 28

Answer: Quality Control is an inexpensive and simple way to check that output is fit for purpose.

Question 29

Question: What is a drawback of Quality Control?

Answer 29

Answer: A drawback of Quality Control is that the rejection of finished goods is a significant waste of resources. There is little focus on the cause of defects.

Question 30

Question: What is Quality Assurance?

Answer 30

Answer: Quality Assurance involves inspecting the quality of production throughout the process. Quality issues are identified early, and products may be reworked rather than rejected.

Question 31

Question: What is a benefit of Quality Assurance?

Answer 31

Answer: The focus on the cause of defects in Quality Assurance helps prevent future quality issues.

Question 32

Question: What is a drawback of Quality Assurance?

Answer 32

Answer: A drawback of Quality Assurance is that controlling quality throughout the production process can be expensive. Staff training and a skilled workforce are required, potentially increasing labor costs. Reworking may also lengthen the production process.

Question 33

Question: How can the quality of a business's products provide a competitive advantage?

Answer 33

Answer: The quality of a business's products can provide a competitive advantage by offering a unique selling point in competitive markets.

Question 34

Question: What is the impact of taking a preventative approach through quality assurance on unit costs?

Answer 34

Answer: Taking a preventative approach through quality assurance is likely to result in low unit costs for a business.

Question 35

Question: How can low unit costs benefit a business in terms of competition?

Answer 35

Answer: Low unit costs may allow a business to reduce its selling price, enabling it to better compete with or undercut rivals.

Question 36

Question: What financial advantage may arise from low unit costs due to quality management?

Answer 36

Answer: Increased finance may be available to fund marketing activities, improving brand recognition and attracting new customers.

Question 37

Question: How can high levels of quality be utilized in promotional activities?

Answer 37

Answer: High levels of quality can be used in promotional activities and serve as a unique selling point for businesses in competitive markets

Question 38

Question: How can a positive reputation for quality ease a business's expansion into new markets?

Answer 38

Answer: Successfully developing a unique selling point (USP) for quality can ease expansion into new markets due to the positive reputation it creates.

Question 39

Question: What is the first step in the sales process?

Answer 39

Answer: The first step in the sales process is to gain customer interest through marketing activities such as advertising, branding, sponsorship, sales promotions, and public relations.

Question 40

Question: How can customer interest be gained through marketing activities?

Answer 40

Answer: Customer interest can be gained through marketing activities such as advertising, direct mailing, branding, sponsorship, sales promotions, and public relations.

Question 41

Question: Provide an example of gaining customer interest through sponsorship.

Answer 41

Answer: An example is the technology company IFS sponsoring the Cloud Cable Car over the River Thames at Greenwich, highlighting its expertise in IT solutions for large-scale engineering projects

Question 42

Question: What is the second step in the sales process?

Answer 42

Answer: The second step is to provide a speedy and efficient service, including flexibility in taking orders, prompt production, and delivery to customers.

Question 43

Question: How can speed and efficiency be improved in the sales process?

Answer 43

Answer: Speed and efficiency can be improved by delivering and installing products for customers, providing convenient delivery methods, making online platforms easy to use, reducing queues at checkouts, and offering various ways for customers to contact the business.

Question 44

Question: What is the third step in the sales process?

Answer 44

Answer: The third step is to engage the customer during the sales transaction, ensuring regular communication, especially when there are waiting periods or for customized products.

Question 45

Question: What is post-sales service, and what does it include?

Answer 45

Answer: Post-sales service is support given to customers after the purchase of a product. It includes support in using the product, handling complaints and faults, managing returns, providing servicing or repairs, offering warranties or guarantees, and collecting customer feedback

Question 46

Question: Why is achieving customer loyalty important for businesses?

Answer 46

Answer: Achieving customer loyalty is important for businesses as it leads to repeat sales and valuable word-of-mouth reviews, helping the firm to reduce marketing costs when launching new products.

Question 47

Question: How can businesses achieve customer loyalty?

Answer 47

Answer: Businesses can achieve customer loyalty by communicating with customers according to their wishes, providing extended product support, maintaining a positive reputation, continuing to offer what the customer wants, and using promotional tactics to encourage repeat purchases.

Question 48

Question: Provide an example of a business well-known for exceptional customer service.

Answer 48

Answer: Zappos is an online retailer well known for its exceptional customer service. They offer free shipping and returns, and their customer service representatives are available 24/7.