Business operations

Job production
Flow production

Making a specialised product to meet the exact requirements of a customer

Charge higher prices
Give the customer exactly what they want
Advantage over larger rivals

Expensive
Requires skilled employees which are costly

Identical products being made on an assembly line

Big volumes of output
Specialisation of employees
Cheap per unit
Technical economies of scale

High initial costs
Depend on high demand
Less flexible
Employees may get tired of repetition

Cost
Level of demand
Need for flexibility

How well it's using its products to produce goods and services

How well employees work
Quality of suppliers
Investment in machinery and technology
How products are produced

An approach to production to minimise waste

unwanted materials from production

Not enough demand
Waste of time
Faulty products
Holding stock

Continuous improvement
Employees are asked everyday how to improve production

No one knows the production better than the employees
Employees feel important so motivated

Requires a good relationship with employees
Employees might not want to be involved
Training on quality checking is required
May not want to take ownership of faulty work

Holding as little stock as possible.
Items are ordered just in time to be used

Reduced storage costs
Less danger of theft or damage

less purchasing economies of scale
Higher transport costs due to more frequent deliveries
Dependent on suppliers being prompt
Hard to predict demand

Holding stock incase there is an issue with supplies or unexpected increase in demand

Can meet sudden demand
Lower risk as less dependent on suppliers
Purchasing economies of scale
Lower transport costs

Stock may go out of date
Expensive storage costs
Social change may occur

raw materials and components held in storage in case there's an issue with suppliers

cost
quality
reliability

the process of selecting suppliers, establishing and negotiating the contract

So the business can meet their own customer requirements
Essential for JIT production

Suppliers producing good quality products help the reputation and quality of the business
No problems with defects

The movement of goods, services, information and money throughout production

Better quality costs more but this may save costly mistakes down the line

All the businesses, people and activities that take part in production. From the start to the customer.

Getting goods and services for the best price and value
Ensure key processes are running efficiently
Cut waste and unnecessary costs
Less complaints and lower rate of returns

efficiency
lower unit costs

The ability of a product or service to consistently meet customer expectations

A business will set targets for its operations such as:
-produced by a set time
-having certain features
-delivered by a given date
these depend on the nature of the business

-Asking customers
-Mystery visitors
-Asking staff

-customer dissatisfaction
-cost of recalling
-cost f replacing
-cost of waste
-cost of legal action
-gain a bad reputation

Ensure good suppliers
Train staff
Invest in good equipment
Inspect products at each stage
Involve staff in improving

TQM (Total Quality Management)
Inspection

A process to check that a product meets requirements and are free from faults

an approach to quality where everyone is focused on preventing errors and ensuring quality at each stage of the process

cost reduction
increased efficiency
increased customer satisfaction
reduced waste and errors

cost of training
hard and time consuming to introduce
all employees must use it to be successful

costs of quality control
costs of training
costs of better quality suppliers

Customers more likely to return
Reduces costs
Charge more for high quality
Improve brand reputation

If a business franchises or outsources, it gives up control over quality

1.Finding potential customers
2.Approaching potential customers
3.Investigating customer needs
4.Presenting a product
5.Closing the sale
6.Post sale service

When a business builds a relationship with the customer by providing a good experience

Meeting and checking on the customer's needs after they've purchased

dealing with complaints
delivering with delays
repairing goods
exchanging goods if faulty

Customers want clear information about goods and service to then make the right decision.
Employees should be helpful and well trained

Repeat customers
Satisfied customers
Willing to pay more

Dissatisfied customers
Hard to attract new customers
Loss of revenue
Can be costly

Businesses promise too much
Poor communication
Poor management
External factors such as suppliers delayed

Give the customers information
Help to advertise
Can include FAQs
Can offer advice

Can view products at anytime from anywhere
Can see other customer reviews
Can get online support
Get suggestions of other products
May get lower prices

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Can communicate to customers