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Higher Business Management > Operations > Flashcards

Flashcards in Operations Deck (7)
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1

Labour Intensive

Products are made using the human effort which is often done by small businesses who can't afford machinery that are producing in smaller quantities

2

Capital Intensive

Products are made using technology such as machinery rather than human hands. It is quite expensive to do which is why it's used by much larger businesses producing in large quantities.
An advantage is that the machine can work 24/7
A disadvantage is that breakdown can be a costly fix while also being costly to the level of production

3

Quality Control

It is the most basic method for a business to ensure quality as it is a method of inspecting either the raw materials or the finished goods to check whether they are at a acceptable standard of quality.

An advantage is that the faulty goods aren't sent to customers.

Disadvantage is that if faulty products would have to be done from scratch wasting time and money.

4

Quality Assurance

This is the method of prevention meaning that the quality of products are checked at different stages in an attempt to prevent errors

5

Mystery Shopper

A mystery shopper is employed by an agency to buy ask questions behave in a certain way to give employers a test bu the employers don't know

6

Benchmarking

This is when the copying of the quality of a finished product is carried out by using the same process to achieve it that was used by the market leader.

7

Quality standard and symbols

This is when the business has reached the required standard which has been agreed upon such as a hotel that nay be going for a 5th star would have to meet the agreed standard to reach the 5th star.