3 Business Operation Flashcards
(26 cards)
What is flow production?
Uses production lines with continuous movements of items in the process
Give an example of an advantage of flow production
A business can make larger quantities of products, meaning they can bulk buy raw materials - saving money
Give an example of an disadvantage of flow production
High costs to buy the factory and machinery
Give examples of what could be made by flow production
Toothpaste, cola, crisps, chocolate bars
What is production?
The action of making or manufacturing from components or raw materials
Give an example of an disadvantage of job production
Skilled labour and craftsmen are expensive
Give an example of an advantage of job production
Higher prices can be charged to the customers
What is JIT (Just in Time)?
Ordering products only when you need it, e.g fast food restaurants through deliveroo
Give an example of an disadvantage of JIT
The business won’t be able to quickly replace damaged parts
Give an example of an advantage of JIT
Stock is less likely to go out of date
What is JIC (Just in Case)?
It’s when a company, e.g Tesco, holds products in a storage facility as stock
Give an example of an advantage of JIC
The business won’t run out of stock if they get unexpectedly large orders
Give an example of an disadvantage of JIC
Holding large amounts of product can be very expensive
What does Kaizen mean?
Kai - change. Zen - good. Continental improvement
What is lean production?
It’s an approach to management where they try to cut out as much waste as possible
Why is it important to have good trust with a supplier?
Because it shows that they deliver on time and that you can sell their product
What is logistics?
It’s the transportation of raw materials and good
What is procurement?
It’s the whole process of choosing a supplier, managing the ordering and reciept of products
Why is quality important?
With good quality you will have reliable customers, but with bad quality you will have less customers as word will spread of bad quality
Benefits of good quality
Loyal customers, strong brand image, you can sell at a higher price
Drawbacks of bad quality
Lost customers, legal action against businesses, costs of refunds
What is good customer service?
Delivery is important as it should be quick and easy to do
Benefits of good customer service
Loyal customers, strong brand image, you can sell at a higher price, increased sales
Drawbacks of bad quality
Satisfaction levels drop - lose customers, problems drive customers away, unhappy customers spread the word
