Unit 4 - Production Process

Question 1

Advantages of technology and machinery ….

Answer 1

-produces goods and services more efficiently —-> productivity increases

-saves money in long run bc of reduction in wages

-higher quality goods and services

-makes less mistakes than humans

-reduce the number of workplace accidents

Question 2

3 uses of technology in the production process..

Answer 2

Automation
Computers
Robotics

Question 3

What’s automation ?

Answer 3

Machinery and computers control production.
> role of workers is to over see the use of machines

Question 4

Advantages of automation…

Answer 4

-consistency
-reducing waste
-increased productivity
-customer satisfaction rates
-labour costs
-flexibility

Question 5

What’s robotics ?

Answer 5

Refers to robots in the process of production

Question 6

Advantages of robotics …

Answer 6

Large amounts can be made
Less dangerous as can be done by robots instead of people
Production can be flexible

Question 7

Disadvantages of robotics in production …

Answer 7

-Initial costs are very expensive
-breakdowns can be problematic >resulting in a loss of production time
-robots need downtime for servicing > during this time production is limited

Question 8

What are computers in the production process ?

Answer 8

Computers - refers to the use of computers, particularly in service industries to automate processes

Question 9

3 types of production…

Answer 9

Job production
Batch production
Flow production

Question 10

Whats job production ? Example :
Advantages
Disadvantages

Answer 10

-Producing each product individually. (Wedding dress)

Advantages
-Products usually high quality
-products meet needs if individual customers
-more satisfaction for workers
-higher prices charged

Disadvantages
-production costs high
-labour costs high because job production requires skilled labour

Question 11

What’s batch production? Example:
Adv
Disadv

Answer 11

-Set stages of the production process need to be gone through, one process has to be completed before the next stage of production can begin. Example: white bread and brown bread

Advantages
-needs of different customers are met
-batches made to meet specific orders from customers
-reduce costs as goods don’t need storing
-use of machinery reduced costs

Disadvantages
-takes time to switch production from a batch of one product to another produc.
Machinery needs a reset —-> increases costs

Question 12

What’s flow production ? Example :
Advantages
Disadvantages

Answer 12

Involved assembly line, one type of product made continuosly. Goods mass produced
Eg: same bottle being made

Advantages
-Large amounts can be made
-less employees as machinery can be used
-production lines can operate 24/7
-lower unit costs

Disadvantages
-initial costs are high
- machinery could breakdown
-jobs on the assembly line can be boring —>demotivated workers

Question 13

What’s productivity ?
How’s productivity calculated ?

Answer 13

Output per a given number of employees

Productivity = output / number of workers

Question 14

How does a business increase productivity levels ?

Answer 14

-Recruit correct staff
-appropriately train staff to be efficient
-motivate staff with financial and non financial methods
-Replace workers with machinery

Question 15

What’s different about customers nowadays ?

Answer 15

-Able to share information (leave review)

-customers more likely to complain

-customers more demanding

Question 16

What’s quality ?

Answer 16

A product or service which meets the needs and expectations of a customer and is fit for purpose.

Question 17

Consequences of quality issues ?

Answer 17

-loss of customers
-reputation of a business negatively affected
-costs of scrapping or reworking
-costs of replacements or returns
-Costs of reducing the price of products no one wants to buy
-legal action taken against the business

Question 18

What can quality enable a business to do?

Answer 18

-Charge a high price
-differentiate its products from competition

Question 19

4ways a can businesses measure quality ?

Answer 19

-Amount of faulty products
-customer satisfaction
-level of complaints
-mystery shoppers

Question 20

What’s quality control?

Answer 20

System of inspecting quality of goods and services produced. Ensuring they’re good quality

Question 21

Quality control advantages …

Answer 21

-If inspectors used, customers shouldn’t receive a substandard product
-specialist inspectors check quality, meaning employees are free to complete other tasks

Question 22

Quality control disadvantages …

Answer 22

-Doesn’t prevent waste of products as products scrapped

-workers less likely to take responsibility for errors

-high cost of inspector wages

Question 23

What’s quality assurance ?

What do workers also have to do?

Answer 23

Approach that involves whole business focusing on quality , prevents quality problems arising
Staff involved

Workers also have to suggest ways a business can be improved

Question 24

Advantages of quality assurance ?

Answer 24

-Less wastage
-workers feel valued as they have more responsibility
-business has a better reputation of quality
-fewer returns / complaints
-charge a higher price

Question 25

Disadvantages of quality assurance ?

Answer 25

-disrupt production because workers stop to check quality -costs the business to train employees to check quality

Question 26

What’s e-commerce ?

Answer 26

Process of bringing a buyer and seller together electronically or over the internet

Question 27

Benefits of Eccomerce to customer… Disadvantages

Answer 27

Benefits -Convenient -can shop 24/7 -acess to reviews -compare prices Disadvantages -can’t try the product -can’t ask questions -can’t get product instantly -lack of experience

Question 28

Benefits and drawbacks of eccomerce to the business ….

Answer 28

Benefits -allows business to acess more markets -reduce costs because physical shops not needed -sales increase because customers can shop 24/7 Drawbacks -initial and ongoing costs of investment in websites -personal contact euthanasia customers lost -competition increases, including those abroad

Question 29

What’s face-face selling?

Answer 29

In a shop where there direct contact between buyer and seller

Question 30

What’s telesales?

Answer 30

Sales made over the phone

Question 31

What’s customer service?

Answer 31

Ways in which a business meets the needs and wants of the customers

Question 32

Importance of providing good customer service…

Answer 32

-increased sales, satisfied customers likely to try other products -customer retention, satisfied customers likely to make repeating purchase -enhanced public image, satisfied customers recommend products -lower costs, less returns /refunds -improved profits as a result of improves sales / reduced costs

Question 33

Impacts of poor customer service….

Answer 33

-loss of long term loyalty /customers -increased costs because of more refunds / returns -unhappy customers spread the word verbally or through online reviews

Question 34

3 stages of the successful sales process…

Answer 34

Stage 1 - know your product Stage 2 - engage with customers to create a positive experience Stage 3 -good after sales service

Question 35

Advantages of knowimg your product ( stage1 of successful sales proces)…. Disadvantages….

Answer 35

Advantages- giving customer information so they can make an informed decision Disadvantage- more training so they know the product —> higher training costs

Question 36

What’s an advance age of stage 2 of the successful sales process ( engage with customers)

Answer 36

-shows you employee is interested -more likely to make a purchase

Question 37

Advantage and disadvantage of stage 3 ( good after sales service)

Answer 37

Advantage - customers more likely to make a repeat purchase Disadvantage-cost to train staff to deal with customers and refunds / returns

Question 38

What’s the consumer rights act 2015?

Answer 38

-goods must fit their description -goods must be satisfactory quality -goods must be fit for purpose

Question 39

Benefits to a business of meeting consumer law…

Answer 39

-improved reputation / bad publicity avoided -no time cost of dealing with problems -high fines avoided

Question 40

Costs to a business of meeting consumer law…

Answer 40

-training required to ensure employees can produce quality product and are aware of consumer law -increased quality control needed -higher quality raw materials needed —> increased costs

Question 41

What must businesses also make sure their products don’t lead to?

Answer 41

Injury or death ( they’re safe to use)

Question 42

Factors influencing business location?

Answer 42

-location of target market -proximity to supplier (quicker , cheaper to get resourced) -disposable income of target market -where competitors are -location of labour market -good infrastructure

Question 43

Benefits to a business of being closer to a supplier?

Answer 43

-raw materials received quicker -perishable products fresher -bussines carbon footprint reduced -delivery cost reduced —> profit increased

Question 44

What will businesses have to consider relating to costs when deciding bussines location?

Answer 44

What they can afford against the revenue and likely footfall in every location

Question 45

A bussines location depending on competitors….

Answer 45

-locate where’s there’s a gap in the market with no competitors -however it may be an unprofitable location for any bussines -steal customers

Question 46

Where’s might a factory locate ?

Answer 46

An area of traditionally low wages or high unemployment rates

Question 47

Whats procurement …

Answer 47

Management of purchasing within a bussiness

Question 48

6Key parts of procurement ….

Answer 48

-identifying products to buy -selecting suppliers -ordering products - negotiating contracts between business and suppliers -managing deliveries from suppliers -managing logistics

Question 49

A business identifies which products to buy depending on ?

Answer 49

-time of year -changes in technology -changes in fasion

Question 50

4 things Selecting suppliers is affected by….

Answer 50

-quality of goods -reliability of supplier -delivery time -product availability

Question 51

Why is ordering the right products important for a business?

Answer 51

Enable effective running

Question 52

What might a business do to reduce cost per unit?

Answer 52

-order in large quantities

Question 53

How’s procurement involved in managing deliveries for a business?

Answer 53

-makes sure there sufficient storage space -staff receive deliveries

Question 54

What’s logistics ?

Answer 54

Management of transportation and storage of goods

Question 55

Why’s the management and investment in logistics important ?Whats the advantage of this?

Answer 55

-Ensures deliveries are made on time -correct items delivered -undamadged items delivered -as a result , better reputation and competitive advantage

Question 56

What’s a supply chain?

Answer 56

A network of organisations that get products to the customers