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Flashcards in Operations Deck (19):
1

What are the advantages of ethical trading?

Increased sales revenue as demand ethical products growing
Improve business image
Ethical investors make easier access finance
Improve employee motivation

2

What are the disadvantages of ethical trading?

Cost sourcing ethical labour and materials high
Higher overheads eg proper training
Ethical standards vary between countries

3

Benefits of being fairtrade

Market for fairtrade growing
Increased loyalty as costumers commuted to fairtrade
Good image
Easier to recruit staff

4

Drawbacks business being fairtrade

Charge higher price might put customers off
Small scale production promoted so discourage large business that want economies of scale
Environmental impact

5

Benefits of being environmentally friendly

Lower energy requirements lowers costs
Reducing raw materials cuts waste costs
Income from recycling
Preventing damage cheaper than paying fines
Good business reputation

6

What are the different methods of ensuring quality?

Quality control
Quality assurance
Quality management
Quality circles
Benchmarking
Mystery shoppers
Quality standards

7

Advantages and disadvantages of quality circles

Advantages
Encourages team work so workers feel equal
Employees learn new skills
Harmonises workplace
Disadvantages
Employees not producing when in circles
Steering committee needed money on training

8

Advantages and disadvantages of benchmarking

Advantages
Study competitors methods find possible savings
Motivate workers as have target
Disadvantages
Not easy gather information
Give standards strive for not how reached
Same things not good for all organisations

9

Advantages and disadvantages of mystery shopper

Advantages
Account of quality through fresh eyes
Improve practice following feedback
Disadvantages
Have to tell staff
Staff threatened and feel not trusted
Expensive

10

Describe labour intensive production

Products are made using labour
Common in smaller businesses producing smaller quantities

11

Describe capital intensive production

Products are made using technology
Initial set up of this type of production is expensive

12

Describe automated production

Machinery has completely replaced the need for labour

13

Describe mechanised production

Requires a mix of both machinery and labour to operate

14

Why is producing high quality products or services important to businesses?

Good reputation as a quality brand making customers loyal
Legal requirement to have products of a certain standard
Retailers will be happy with product so will continue to stock it
Higher price can be charged for higher quality

15

What are the advantages and disadvantages of quality circles?

Advantages
Encourages team work and makes all employees feel equal and valued
Harmonises the work place
Employees learn new skills which can allow them to advance their career

Disadvantages
Employees not producing when in quality circles, costs the business money
Training needed for team leaders who oversee programme
Requires everyone to be committed to the quality circle

16

What are the advantages and disadvantages of quality control?

Advantages
Any faulty products don’t reach the customers

Disadvantages
Wastage because if a faulty product is found the whole line has to be scrapped

17

What are the advantages and disadvantages of quality assurance?

Advantages
Defects are spotted as early as possible in the process so waste is minimised

Disadvantages
Expensive and time consuming as staff are required to check the product at each point

18

What are the advantages and disadvantages of quality management?

Advantages
Quality is ensured throughout the whole business

Disadvantages
Staff have to take time out of their job to check quality which costs the business money

19

What is quality management?

Whole organisation takes responsibility in ensuring quality. Part of the businesses culture is the good quality standards they have set and stick to