4.4d Improving flexibility Flashcards Preview

Business Studies AS > 4.4d Improving flexibility > Flashcards

Flashcards in 4.4d Improving flexibility Deck (26):
1

Ways flexibility can be improved

1. Managing customer demand
2. Managing the business' supply

2

Ways to manage supply

- Produce to order
- Mass customisation
- Outsourcing

3

Produce to order definition

Product is only manufactured once and order has been received

4

Modular approach definition

Basics of the product are fixed and some elements are allowed to be customised

5

Advantages of produce to order

- Customers get exactly what they want
- Less costs spent on buying raw materials that are never needed
- Can add value

6

Disadvantages of produce to order

- No consistency of production
- Increased unit costs due to poor capacity utilisation

7

What does mass customisation involve?

Making bespoke individualised items for different customers but on a mass level
(See diagram)

8

Four approaches to customisation

1. Transparent
2. Collaborative
3. Adaptive
4. Cosmetic

9

How do adaptive customisers work?

They offer one standard, but customisable product that is designed so that users can alter it themselves.

10

How do cosmetic customisers work?

They present (package or market) a standard product differently to customers

11

How do transparent customisers work?

They provide individual customers with unique goods or services without letting them know explicitly that those products have been customised for them

12

How do collaborative customisers work?

They conduct a dialogue with individual customers to help them state their precise needs, the make customised products for them

13

Advantages of mass customisation

- Can better target specific market segments
- Allows a competitive advantage to be created
- Added value

14

Disadvantages of mass customisation

- Rejected customised products cannot be reused for another customer
- Further increased flexibility from suppliers is needed

15

Advantages of part-time workers

- Lower costs
- More flexible
- Can recruit wider range of skills for same total employment cost

16

Disadvantages of part-time workers

- Potentially higher costs on training
- Harder to communicate with employees if they spend less time in the business

17

Advantages of temporary workers

- Very flexible
- Ideal for specific jobs
- Chance high quality temp can be persuaded to join the business permanently

18

Disadvantages of temporary workers

- Higher cost per hour
- Temps are less likely to know and understand the business
- Potentially less motivated and productive

19

Outsourcing definition

Getting another business to provide part of the production process for you

20

Advantages of outsourcing

- Can react quickly to changes in demand without permanently increasing capacity
- Specialist companies can provide higher quality
- Reduced operational and recruitment costs

21

Disadvantages of outsourcing

- Quality of the final product is no longer determined just by the business alone
- Price of final product will be pushed up as outsourced producer wants to make a profit
- Might slow down production process

22

Supply chain definition

System in place that facilitates the delivery of a product from a business' supplier to its customes

23

What was the traditional supply chain policy?

'Viking' - volume is king

24

Ideal supply chain features

- Wide variety of suppliers with alternatives
- Clear and effective method of distribution
- Suppliers who conform to the quality, ethical or environmental standards
- Reaches around the world

25

Advantages of a supply chain

- Very competitive
- Easy to source items
- Time differences allow for 24/7 business

26

Disadvantages of a supply chain

- Cultural and language barriers
- Cost issues for delivery of final product
- Environmental and ethical concerns

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