Operations Business Test Flashcards
(31 cards)
What is production?
The making of a good or giving of a service and processing inputs into outputs.
What is the chain of production?
The processes or stages a product goes through before it becomes the final product.
What is input?
All the resources in the production process eg staff, machinery, raw materials, information.
What is the process?
Changing resources to make the good eg mixing, stitching, painting, joining.
What is output?
The final product which is available for sale to the consumer.
What are the manufacturers?
Manufacturers make the product and then sell it on to their customer
What are the retailers?
Retailers buy a finished product and sell it on at a profit.
What are the factors of production?
The factors of production are the resources used to make a product.
What is land?
Land is all natural resources from the earth.
What is labour?
labour is all physical and mental human effort.
what is capital?
Capital is man-made items use in production eg tools, equipment.
What is enterprise?
Enterprise is the entrepreneur who sets up in business.
What does the purchasing mix do?
The correct purchasing mix help control costs and maximise profits.
What 2 decisions do businesses make about their raw materials?
The quantity to purchase and the supplier to use.
What is current stock?
What we currently have available to use or sell .
What is budget?
The amount of money that can be spent on buying more stock.
What is usage?
The amount used or sold each day.
What is potential demand?
The need to satisfy consumer wants by having stock available to sell.
Name 4 things that could affect who the business chooses as a supplier and provide a reason for each of them.
Price and discount, best deals and low cost.
Delivery charge, not too expensive.
Quality, provides high quality materials.
Reliable supplier, delivers on time.
What is meant by labour intensive?
Uses more workers than machinery .
What is meant by capital intensive?
Uses more machinery than labour.
Name 4 positives of a labour intensive business.
can charge a high price.
Specification can change even if job started.
Good quality using highly skilled workers.
Motivated workers so easy supervision.
Name 5 negatives of a labour intensive business.
Skilled workers are paid higher wages.
Variety of tools and equipment needed.
Takes time to make the product.
Items may lack standardisation.
Tired workers make mistakes.
Name 4 positives of a capital intensive business.
Large output of standard product.
Quality easier to check.
Lowest costs through bulk buying discounts and reduced wages.
Machines work 24/7 – without complaint.
