3. Operations

Question 1

Production management

Answer 1

all the activities in managing the transformation process.

Question 2

Production

Answer 2

the process of changing inputs such as labour services into goods and services that can be sold.

Question 3

Job production

Answer 3

a method of production in which a product is supplied to meet the exact requirements of a customer.

Question 4

Flow production

Answer 4

when an item moves continuously from one stage of the process to another producing large numbers of the same goods.

Question 5

Specialisation

Answer 5

when individuals focus on a limited number of tasks.

Question 6

Lean production

Answer 6

an approach to production that aims to minimise waste.

Question 7

Just-in-time (JIT) production

Answer 7

holds as little stock as possible. Items are ordered just in time to be used.

Question 8

Kaizen

Answer 8

means ‘continuous improvement’. It is an approach to production that aims to allow staff to suggest improvements - culture for open communication

Question 9

Just-in-case (JIC) production

Answer 9

holds stocks just in case there is a delay from supplies or a sudden unexpected increase in demand

Question 10

Purchasing economies of scale

Answer 10

• when the cost per unit falls if large orders are placed with suppliers due to a bulk discount.

Question 11

Procurement

Answer 11

• involves selecting suppliers, establishing the terms of payment and negotiating the contract.

Question 12

Supply chain

Answer 12

• all the businesses, people and activities that take part in the production processes from the start until it gets to the customer.

Question 13

Logistics

Answer 13

the movement of goods, services, information and money throughout the production process.

Question 14

Total Quality Managemnt (TQM)

Answer 14

• an approach to quality in which everyone is focused on preventing errors occurring and ensuring quality at each stage of the production process.

Question 15

Customer service

Answer 15

• the part of a business’s activities that is concerned with meeting customers’ needs as best as possible.

Question 16

Positive customer engagement

Answer 16

• when customers have a good experience from their contact with the business.

Question 17

Post-sales service

Answer 17

-the meeting of customers’ needs after they have purchased a product, for example, by repairing or servicing the product.

Question 18

Premises

Answer 18

• the buildings used by businesses – these may include offices, shops and factories.

Question 19

Customer loyalty

Answer 19

• a business’s customers make repeat purchases because they prefer the business’s products to those of its rivals.

Question 20

Information and Communications technology

Answer 20

• the computing and communications systems that a business might use to help to exchange information with stakeholders or customers

Question 21

E-Commerce

Answer 21

• the act of buying or selling a product using an electronic system such as the internet.

Question 22

M-Commerce

Answer 22

• the buying and selling of products through wireless handheld devices such as smartphones

Question 23

Global market

Answer 23

• made up of customers from across the world.

Question 24

Social media

Answer 24

• involves methods of online communication such as websites and applications; they share information and help to develop social and professional contacts.

Question 25

Data analysis

Answer 25

- involves gathering and examining data to provide useful information that can be used for decision-making.