1
Q
What is production?
A
Production is the transformation of resources such as raw materials
2
Q
What are the main methods of production?
A
The main methods of production are job
3
Q
Describe job production.
A
Job production produces one product at a time
4
Q
Describe batch production.
A
Batch production produces groups of the same product. Advantages: worker specialisation
5
Q
Describe flow production.
A
Flow production continuously manufactures standardised products on a production line. Advantages: rapid output
6
Q
How does technology impact production?
A
Technology improves productivity
7
Q
Impact of technology on costs?
A
Traditional manufacturing requires expensive tooling; 3D printing reduces costs by eliminating tooling needs.
8
Q
Impact of technology on productivity?
A
Traditional methods have long lead times; 3D printing allows rapid production and faster market response.
9
Q
Impact of technology on quality?
A
Traditional manufacturing struggles with complex designs. 3D printing produces accurate
10
Q
Impact of technology on flexibility?
A
Flexibility is the ease of changing production for different products. 3D printing allows small
11
Q
What is a Bar Gate Stock Control diagram?
A
A Bar Gate Stock Control diagram shows stock levels over time
12
Q
Define maximum stock level.
A
Maximum stock level is the highest amount of stock a business can hold under normal conditions.
13
Q
Define reorder level.
A
Reorder level is when a new order is placed to replenish stock before it runs out.
14
Q
Define minimum stock level.
A
Minimum stock level (buffer stock) is the lowest stock allowed to prevent shortages.
15
Q
What is lead time?
A
Lead time is the period from ordering stock to its delivery and availability.
16
Q
What is efficient procurement of raw materials?
A
Efficient procurement ensures timely
17
Q
Why is quality important in raw materials?
A
Poor-quality materials lead to inferior final products. Example: high-quality steel ensures building safety.
18
Q
Why is delivery important in raw materials?
A
Timely delivery prevents production delays. Example: car manufacturers need components on schedule.
19
Q
Why is availability important in raw materials?
A
Consistent access ensures uninterrupted production. Example: Tesla requires steady cobalt supply for batteries.
20
Q
Why is cost important in raw materials?
A
Sourcing at the best price maximises profitability without sacrificing quality. Example: textile manufacturers sourcing affordable cotton.
21
Q
Why is trust important in raw materials?
A
Reliable suppliers ensure timely
22
Q
What is Just in Time (JIT) stock management?
A
JIT is ordering and receiving raw materials only as needed for production to minimise stockholding.
23
Q
Advantages of JIT?
A
Reduces stockholding costs
24
Q
Disadvantages of JIT?
A
Reduced ability to respond to demand spikes
25
What is quality management?
Quality management ensures products meet customer expectations consistently
26
Explain quality control (QC).
QC inspects output at the end of production. It is cheap and simple but wastes resources if defective products are rejected and doesn’t address root causes.
27
Explain quality assurance (QA).
QA monitors quality throughout production
28
How does quality management create competitive advantage?
High-quality products reduce costs
29
What are the steps in the sales process?
Gain customer interest
30
How do businesses gain customer interest?
Through marketing: advertising
31
How do businesses provide efficient service?
By taking orders promptly
32
How do businesses engage customers?
By communicating during waits
33
What is post-sales service?
Support after purchase including product use guidance
34
How is customer loyalty achieved?
By maintaining communication
35
How do businesses develop customer loyalty?
Through excellent customer service (e.g.
36
What is production?
Production is the transformation of resources, such as raw materials, components, and processes, into finished goods or services.
37
Define goods and services.
Goods are physical products like bicycles or T-shirts; services are non-physical items like hairdressing or tourism.
38
What are the main methods of production?
The three main methods are job production, batch production, and flow production, chosen based on output level, product nature, customisation, and automation.
39
Explain job production.
One product is produced at a time, often customised. Advantages: high quality, motivated skilled workers. Disadvantages: slow production, high labour costs.
40
Explain batch production.
Products are made in groups or batches. Advantages: worker specialisation, production can start as previous batch runs out. Disadvantages: careful coordination needed, money tied in stock.
41
Explain flow production.
Continuous production of standardised products, usually automated. Advantages: rapid production, low unit costs. Disadvantages: difficult to customise, high capital cost.
42
What is flexibility in production?
Flexibility is how easily machinery can switch to produce different products, often enabled by technology like 3D printing.
43
How does 3D printing impact cost?
Reduces manufacturing cost as no expensive tooling is needed.
44
How does 3D printing impact productivity?
Products can be produced quickly with minimal lead time, enabling faster response to market changes.
45
How does 3D printing impact quality?
Allows precise production of complex shapes, improving product quality.
46
How does 3D printing impact flexibility?
Supports small production runs and easy customisation, reducing costs of job production.
47
What is a Bar Gate Stock diagram?
It shows stock flow into and out of a business over time, indicating maximum, minimum (buffer), and reorder levels, as well as lead time.
48
Define maximum stock level.
The maximum stock a business can hold under normal circumstances.
49
Define reorder level.
The stock level at which a new order is placed to prevent shortages.
50
Define minimum stock level.
Also called buffer stock, the minimum stock level allowed to prevent production disruption.
51
Define lead time.
Time from ordering stock to delivery from the supplier.
52
Why is efficient procurement important?
Ensures raw materials are available at the right cost, quality, and time to maintain production and product quality.
53
Factors affecting raw material procurement
Quality, delivery, availability, cost, trust in suppliers. Example: Tesla must ensure a steady cobalt supply.
54
What is Just in Time (JIT) stock management?
Raw materials are delivered as needed, minimising stockholding, storage costs, and cash tied in stock.
55
Advantages of JIT
Minimises stockholding costs, improves cash flow, encourages teamwork, frees up storage.
56
Disadvantages of JIT
Cannot bulk buy, less responsive to demand spikes, administrative costs rise, production halted by supplier issues.
57
What is quality management?
Ensuring products meet customer requirements and business standards, improving reputation, efficiency, and competitive advantage.
58
Explain quality control.
Checks output at the end of production. Benefits: simple and cheap. Drawbacks: rejects waste, does not prevent defects.
59
Explain quality assurance.
Monitors quality throughout production. Benefits: prevents defects, focuses on causes. Drawbacks: costly, requires skilled workforce, may slow production.
60
How does quality management create a competitive advantage?
Low costs through prevention, higher brand recognition, USP from quality, supports expansion and pricing strategies.
61
What are the steps in the sales process?
1) Gain customer interest, 2) Provide speedy service, 3) Engage customer, 4) Post-sales service, 5) Achieve customer loyalty.
62
Methods of gaining customer interest
Advertising, branding, sponsorship, sales promotions, PR, excellent product knowledge. Example: IFS sponsoring Cloud Cable Car.
63
What is post-sales service?
Support after purchase: usage help, complaints, returns, servicing, guarantees, and feedback collection.
64
Importance of customer service
Good service builds loyalty, repeat purchases, reduces marketing costs, and supports long-term business growth.
65
Methods to develop customer loyalty
Customer service, loyalty cards, saver schemes. Example: Sephora's Beauty Insider rewards points system.
66
Front
Back
67
What are operational decisions?
Operational decisions are the day-to-day choices a business makes to produce goods or services efficiently.
68
What is production?
Production is the process of turning inputs like labour and raw materials into finished goods or services.
69
What is job production?
Job production means producing a single unique item one at a time often customised for a customer.
70
Advantages of job production
High quality customised products motivated skilled workers premium pricing.
71
Disadvantages of job production
High labour costs slow production specialist skills needed.
72
What is batch production?
Batch production makes groups of identical products in stages.
73
Advantages of batch production
Economies of scale more flexible than flow production variety offered.
74
Disadvantages of batch production
Delay between batches increased storage needs machinery reset costs.
75
What is flow production?
Flow production uses a continuous production line to make large volumes of identical goods.
76
Advantages of flow production
Low unit costs high output consistent quality efficient machinery use.
77
Disadvantages of flow production
High setup costs inflexible boring for workers vulnerable to breakdowns.
78
What is productivity?
Productivity is output per worker or output per hour worked.
79
Productivity formula
Productivity = Output ÷ Number of workers.
80
Ways to improve productivity
Training investment in machinery improved motivation better organisation.
81
What is lean production?
Lean production aims to minimise waste while maintaining quality.
82
What is Just-In-Time (JIT)?
JIT is a stock control system where inventory arrives only when needed in production.
83
Advantages of JIT
Reduced storage costs less waste improved cash flow.
84
Disadvantages of JIT
Risk of stockouts relies on good suppliers production stops if deliveries fail.
85
What is quality?
Quality is the extent to which a product or service meets customer expectations.
86
Why quality matters?
Improves satisfaction reduces returns builds reputation increases repeat purchases.
87
What is quality control?
Quality control checks products at the end of production for faults.
88
Advantages of quality control
Fewer errors reach customers specialist inspectors.
89
Disadvantages of quality control
Wasteful faults found too late may demotivate workers.
90
What is quality assurance?
Quality assurance ensures quality at every stage of production via systems and processes.
91
Advantages of quality assurance
Prevents faults improves motivation reduces waste.
92
Disadvantages of quality assurance
Training costs time-consuming requires teamwork.
93
What is customer service?
Customer service is how a business interacts with customers before during and after purchase.
94
Why customer service matters?
Improves loyalty reputation sales and competitiveness.
95
Examples of good customer service
Fast delivery helpful staff easy returns problem resolution.
96
Consequences of poor customer service
Complaints bad reviews loss of customers falling sales.
97
What is a supply chain?
The network of suppliers that provide raw materials components and services to a business.
98
What is procurement?
Procurement is the process of selecting suppliers negotiating and purchasing resources.
99
Factors when choosing suppliers
Price quality reliability speed of delivery ethics.
100
What is logistics?
Logistics is organising the movement storage and delivery of goods.
101
Benefits of effective procurement
Lower costs higher quality reliable production improved competitiveness.
102
What is stock?
Stock is raw materials work-in-progress or finished goods held by a business.
103
What are buffer stocks?
Buffer stocks are extra inventory kept to avoid running out.
104
Advantages of holding stock
Prevents stockouts meets sudden demand supports smooth production.
105
Disadvantages of holding stock
High storage costs risk of waste tied-up cash.
106
Front
Back
107
Define job production.
1 mark: Production of a single, customised product at a time.
108
Give one advantage of job production.
1 mark: High quality because products are tailored to customer requirements.
109
Explain one disadvantage of job production.
2 marks: It is slow and expensive due to high labour costs, meaning unit costs are high.
110
Define batch production.
1 mark: Producing a group of identical products together in stages.
111
Explain one advantage of batch production.
2 marks: Economies of scale reduce unit costs and production is more flexible than job production.
112
Explain one disadvantage of batch production.
2 marks: There may be delays between batches and extra storage is needed for materials and finished products.
113
Define flow production.
1 mark: Continuous production of large quantities of identical products on a production line.
114
Explain one advantage of flow production.
2 marks: Produces high output at low unit costs because machinery is used efficiently.
115
Explain one disadvantage of flow production.
2 marks: High initial setup costs and it is inflexible if demand changes.
116
What is productivity?
1 mark: Output per worker or per hour.
117
Calculate productivity.
2 marks: Productivity = Output ÷ Number of workers. E.g., 500 units ÷ 10 workers = 50 units per worker.
118
Explain one way to improve productivity.
2–3 marks: Training staff improves skills, reducing mistakes and increasing output per worker, which lowers unit costs.
119
Define lean production.
1 mark: A method to minimise waste while maintaining quality.
120
Explain one lean production technique.
2 marks: Just-In-Time (JIT) ensures stock arrives only when needed, reducing storage costs.
121
Evaluate one disadvantage of JIT.
3–4 marks: If a delivery is late, production stops, causing lost sales. This risk can outweigh cost savings, especially for critical components.
122
Define quality control.
1 mark: Checking products for faults at the end of production.
123
Explain the difference between quality control and quality assurance.
2–3 marks: Quality control checks products after production for errors; quality assurance ensures quality is maintained at every stage through processes and systems.
124
Explain why quality matters to a business.
3–4 marks: High-quality products increase customer satisfaction, reduce returns and complaints, and build a strong reputation, leading to repeat purchases and increased sales.
125
Define customer service.
1 mark: How a business interacts with customers before, during, and after purchase.
126
Explain one consequence of poor customer service.
2 marks: Can lead to complaints and loss of customers, reducing revenue.
127
Define supply chain.
1 mark: The network of suppliers that provide materials, components, and services to a business.
128
Explain one factor to consider when choosing suppliers.
2 marks: Reliability ensures that materials arrive on time, avoiding production delays and extra costs.
129
Explain one benefit of effective procurement.
3–4 marks: Buying from reliable suppliers at good prices ensures production continues smoothly, reduces costs, and improves competitiveness.
130
Explain one advantage of holding buffer stock.
2 marks: Ensures production can continue if deliveries are late or demand rises unexpectedly.
131
Explain one disadvantage of holding buffer stock.
2 marks: High storage costs tie up cash that could be used elsewhere and may lead to wastage if products become obsolete.
