Topic 3.2 production key terms Flashcards
(19 cards)
Why is R and D good for a business (3)
1) helps them come up with new ideas
2) beat the competition
3) better/cheaper way to do things
What is quality?
Meeting customer’s minimum expectations with a product that is reliable and functional and is consistent. It gives customer satisfaction.
What does the design mix look at?
- function
- cost
- appearance
Define quality assurance
making sure that the product/service meets the minimum expectations at the end of the manufacturing process
Define Quality Control
checking products to make sure that quality standards have been met
checked for design, appearance, defects and safety
Why does rapid growth make it hard to maintain quality?
The business could become overwhelmed by orders and reduce the levels in quality
Maintaining high quality requires a cost, time and hassle
What is the solution for maintaining a high quality?
motivate staff
take on more employees
train new workers
but all of these require a cost, time and hassle
What are the three stock control methods?
stock control graphs
just in time
just in case
what are stock control graphs?
Firms set a reorder level
when stocks fall to this level they will reorder
in hope that the new stock arrives in time so the stock won’t fall below minimum level
What is just in time stock control method?
Aim- keep the stock level to the BARE MINIMUM
stock arrives in the factory immediately before used
Benefits of just in time?
Reduces cost of having to keep stocks.. food could run out of date, so lest is wasted
Problems with Just in Time?
requires a good relationship and a lot of coordination between the firm and its suppliers- else firm could run out
Requires extra training, workers get used to the less stock
Stress, threat of running out of stock
What is Just in Case stock control method?
method of operating a production and distribution system with buffer stocks of items at each stage of the process
from raw materials to finished products
this is just in case there is a puppy shortage of consumer demand increases without expecting it
Benefit of Just in Case
if there is a problem with deliveries of any raw material (in first stage of process)
buffer stocks allow the continuous process
Problem with Just in Case
Firms may be left with stockpiles of items = wastage
What are 6 examples customer service?
accurate product information
reliability
dealing with customer questions and concerns
fulfilling the order requirements
delivering on time
after sales support and warranties
What are the benefits of good customer service?
Leads to high levels of customer satisfaction. If customers are satisfied, they are likely to make repeat purchases.
More likely to recommend a business by word of mouth
What happens if customers are not satisfied?
Customers won’t return
The business will have to work harder : cost, time hassle.. to find new customers
Unhappy customers= less likely to recommend. Business end up with poor reputation, fall in revenue and profit
Good customer service requires money
wages for extra stadd, website running costs
BUT THE BENEFITS OUTWEIGH PROBLEMS
