Topic 4 Flashcards
(32 cards)
What are the three methods of production?
- mass or flow
- batch
- job
job production:
- making a unique product specific to the customer order.
- usually more time consuming
- high quality
- often ‘hand made’ or ‘tailored’
- often more expensive.
Batch production:
Making a specific quantity of a product.
Due to variation of products E.G. Bread, coloured shoes, chocolate bars.
Mass or flow production:
Making very large amounts of the same products.
- Often very efficient
- need big premises and factory
- brings down cost per product to make
- buy in bulk cheaper.
Advantages of job production:
- can charge more money
- staff are often more motivated.
Advantages of batch production:
- have a range of products
- motivates staff more
- consistent quality
Advantages of mass/flow production:
- more jobs created
- faster
- reduces average cost per product to make.
Disadvantages of job production:
- no work means no money - no salary
- only get paid when you have orders.
- high cost of skilled workers.
Batch production disadvantages:
- slower
- downtime for machines to stop be cleaned etc
- more training for staff required
- costly
Disadvantages of mass/flow production:
- high cost machinery
- large perimeter and factory and lorry’s required.
- can cause boredom in employees
- only makes one product.
What is quality control?
Checking the quality after its been made and assembled.
What is Quality assurance?
Putting systems in place to guarantee the quality whilst teh product was being made.
Why is quantity important?
- motivates staff
- to keep customers wanting to buy it again.
- good reviews and feedback
- to increase market share
- for a good reputation
- more sales revenue
- more chance of awards.
- more profit.
Advantages of quality control:
- prevents faulty products
- not disruptive to workers - quicker to make the products
- cheaper
Quality control disadvantages:
- faults only seen at the end might have to scrap whole batch.
- workers cant be held to account in early stages if they are faulting.
- still need quality control staff.(wages)
Customer service in the industry, (3)
- buying online
- face to face
- telesales
What is customer service? And why is it important?
- its a method used by a business to look after its current and future customer.
- This involves meeting customer sales before, during and post sales.
What makes good customer service:
- good manners
- high quality service
- good sociability
- good shop or phone service
- good product and business knowledge.
What is E-commerce?
Electronic commerce is buying goods online.
What are the benefits to the customers from E-commerce?
- saves time
- more choice
- shop whenever is convenient
- controls impulse spending.
What are the benefits to the business of E-commerce?
- access to more customers
- saves money on rent therefore lowers fixed costs
- reduced marketing costs
- you can charge less if needed to gain more market share.
- can be open 24/7
What are consumer rights?
Protection for the buyer from dodgy products. Products have to be ‘ fit for purpose‘ and ‘as described’ and ‘of satisfactory quality’.
What is ‘fit for purpose?
Goods must do what they say on the tin. And do what they are meant to do.
What is ‘as described’
Goods must be what they are advertised as, for example, size or quantity or colour. So companies cant lie.
