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Business GCSE > 2.3 - Making Operational Decisions > Flashcards

2.3 - Making Operational Decisions Flashcards

1
Q

What is job production?

A

Unique design
Labour costs higher
Cannot take advantage of economies of scale

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2
Q

What is flow production?

A

All products identical
Efficient
Economies of scale
Uses machinery

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3
Q

What is batch production?

A

Limited amount of products for a limited amount of time

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4
Q

What is Just In Time?

A

an inventory management method in which goods are received from suppliers only as they are needed

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5
Q

What do suppliers need to be chosen according to?

A

Consistent quality
Trust
Availability
Delivery
Price

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6
Q

What is quality assurance?

A

Takes steps at every process to ensure no faults. It aims to stop errors from being made in the first place

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7
Q

What is quality control?

A

Checks after every process is complete - can be costly if there are faults

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8
Q

What is job production?

A

When a firm manufactures individual, unique products
Each product has a unique desifn based upon the customers specification

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9
Q

What are the features of job production?

A

Longer to make - Fewer made in a set period of time
More skilled labour, labour intensive?
High costs - higher prices

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10
Q

What is flow production?

A

All products are identical and the aim is to produce as many possible along an assembly line and make productivity as high as possible
To be efficient, it has to be continuous with no stopping
Many flow production factories operate 24 hours a day, with workers rotating in shifts

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11
Q

What are the features of flow production?

A

Used for mass market products
Economies of sale
Low average unit costs

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12
Q

What is batch production?

A

Batch production is faster than job production since each product in a batch is identical
Firms that use batch production have high productivity than job production
Flow production techniques

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13
Q

Disadvantages of batch production

A

Time is needed to change between batches - productivity is lower than flow production
Expensive

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14
Q

What are advantages to using technology in production?

A

Can carry out processes more quickly and accurately than humans
Increase productivity of the business and the goods that are produced should be of a more consistent quality
Technology means machines can work 24/7, so production is completely continuous
Cheaper to run machines in long term

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15
Q

What are disadvantages to using technology in production?

A

Expensive for maintenance and buying and installing
Replaces manual work so some staff might be worried of losing their jobs - demotivates them causing productivity to go down
Machines are inflexible - only suited to one task

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16
Q
A
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17
Q

Why is managing stock important for a business?

A

It balances costs of storage against risks of running out of stock.

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18
Q

What does Just-in-Time (JIT) aim to achieve?

A

Keeps stock levels to the bare minimum - preferably zero.

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19
Q

What is the ideal process in a JIT system?

A

Raw materials come in, are made into products, and go straight out for delivery.

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20
Q

What technology is typically used in JIT systems?

A

Computer systems to calculate stock levels and automate orders.

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21
Q

What is a major benefit of JIT?

A

Reduces the cost of keeping stock.

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22
Q

How does JIT impact cash flow?

A

Minimizes delay between buying supplies and selling products.

23
Q

What is a key challenge of implementing JIT?

A

Requires coordination between the firm and its suppliers.

24
Q

What is the consequence of delivery delays in a JIT system?

A

The firm could run out of stock.

25
What is a downside of buying small quantities in JIT?
Loss of economies of scale.
26
What is buffer stock?
Extra stocks at every stage to handle supply shortages or unexpected demand.
27
What is a problem associated with maintaining buffer stocks?
Can lead to costly stockpiles of items.
28
What do bar gate stock graphs monitor?
Stock levels and when to order more stock.
29
What is the reorder level in stock management?
The level at which new stock should be ordered.
30
How do you determine delivery time using a bar gate stock graph?
Difference between reorder level time and arrival time.
31
What happens when stock arrives on a bar gate stock graph?
The graph shows a vertical line indicating the quantity ordered.
32
True or False: JIT is always the best approach for stock management.
False.
33
Define procurement
Finding and buying things that a firm needs from suppliers outside the firm For example a clothes manufacturer, procurement would involve buying materials that it needs
34
Define logistics
Getting goods or services from one part of the supply chain to another For example a clothes manufacturer would need to havr the material it needs transported to its factory
35
How can effective procurement and logistics improve the efficiency of a business?
The business will have the supplies it needs at the right time For example: no breaks in production because materials aren’t available, or that materials don’t have to be wasted because they didnt arrive at the right time
36
How can effective logistics and procurement decrease the overall costs for a business?
reduce the unit cost - the amount it costs to make each item. The firm can make more profit on each item as it gets supplies at the best price and doesn’t waste money by being inefficient
37
Why might good procurement and logistics be useful for a business?
High quality Reasonable price Delivered on time Improves: Customer satisfaction Firms reputation
38
What factors should a company consider when choosing a supplier and building a relationship with them?
Quality Trust Delivery Availability Price
39
Why should a company consider quality when choosing a supplier and building a relationship with them?
Quality needs to be consistent Customers can be very selective about quality - if it is not of their liking they may switch their shopping to elsewhere Customers associate poor quality with the business, not the suppliers, firms image gets ruined
40
Why should a company consider trust when choosing a supplier and building a relationship with them?
If a supplier lets a firm down, the firm might not be able to supply its own customers Firms need suppliers they can trust Suppliers need to deliver high quality products on time or warning if they cant
41
Why should a company consider delivery when choosing a supplier and building a relationship with them?
Firms need to consider how much it will cost to get supplies delivered and how quickly they want suppliers to arrive Delivery from suppliers near the firm are more likely to be cheaper and faster from a supplier further away Delivery should be reliable - business production could get disrupted
42
Why should a company consider availability when choosing a supplier and building a relationship with them?
If a supplier is often out of stock, it could affect the firms production process They need to make sure their supplier can provide stock in sufficient quantities
43
Why should a company consider price when choosing a supplier and building a relationship with them?
Firms have to decide how much they want to pay for suppllies and whether cost is their top priority If they want to cut down the time it takes to serve customers, suppliers that offer faster delivery may rate higher than those on price alone Cheaper may offer lower quality products
44
What are the two systems that a firm can use to check the quality of their products?
Quality control Quality assurance
45
Whatr is quality control?
Checking products as they’r e being made helps to find faults before the product reaches the customer Defects may be spotted before finishing making the product - reducing waste Expensive - but cost will be greater if customer is dissatisfied
46
What is quality assurance?
Checking that quality is being maintained throughout each process involved in making the product. Stops errors being made in the first place rather than needing to get rid of faulty goods once they’ve been made
47
Why could a firm consider getting quality assured by an external body?
It may be awarded a rating or certificate that it can display to assure customers that the business produces high quality products
48
What might sales processes involve?
Finding potential new customers Approaching potential customers Assessing the customers needs Presenting Closing Follow up
49
Why is it important that anyone from the firm involved in the sales process has excellent knowledge of the firm?
Any questions can be answered quickly and accurately Customer feels more confident buying from the firm
50
Why is it important that anyone from the firm involved in the sales process has excellent engagement with the customer?
Any experience with customers should be positive Polite and friendly Making customers feel important and valued Customers shouldn’t feel as if they’re being pushed into making a purchase
51
Why is it important that anyone from the firm involved in the sales process has quick and efficient service?
Quick and easy Cutting down the number of steps it takes for a customer to buy a product Discounts?
52
Why is it important that anyone from the firm involved in the sales process has post sales service offering?
Firm may offer user training - teaching customers how to use the product once bought Specific after sales helplines Some cars may need to be serviced throughout their lifespan - maintain a good rep with customer throughout
53
Why is it important that anyone from the firm involved in the sales process responds to customer feedback?
To make customers feel valued, companies should reply, be polite, even if the company disagrees with what the company has to say Specific responses rather than generic Offer a gift for the feedback, such as discounts? Customers might be influenced with how a business responds Business can use customer feedback to make changes to the business, improve for future customers
54
Why is it important that anyone from the firm involved in the sales process provides good customer service?
Higher customer satisfaction Repeat purchases - loyal Persuaded to spend more Bad customer service may: Dissatisfy customers Poor brand image Less loyal Reduced market share and lower sales

Business GCSE (11 decks)

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