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15 Cards in this Set
- Front
- Back
What is the purpose of business operations? |
To produce goods To provide services |
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Goods |
Physical items that can be seen and touched. They need to be manufactured (increased product development cost). |
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Services |
Involve human effort and action and are intangible. Usually involve a particular skill. |
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Job production |
A one off product that is specific/unique to the customer’s needs. |
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Advantages of Job Production |
- Higher quality - Unique to a customer so it is personal and more appreciated - Higher worker motivation as they take the product from start to finish |
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Disadvantages of Job Production |
- High cost for making the product - More labour is needed, more cost, more training - Takes a long time to make the product so may not be able to keep up with deadlines |
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Examples of products made through job production |
Wedding cake Custom built car Ship building Personal trainer Tailored suit |
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Batch production |
When groups or batches of products are produced together. |
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Advantages of Batch Production |
- Higher productivity than job as machinery is used - Quicker and more efficient than job, leading to more sales - Less risk as more product produced - Flexible, can create different types of products in different groups |
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Disadvantages of Batch production |
- The quality not as good as job - Machinery takes long to reset therefore it is less efficient than flow. - More stock of raw of materials needs to be bought. |
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Examples of products mate but Batch production |
- baked goods - clothing - computer software - electrical goods - Computer chips |
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Flow production |
Continuous production to produce many identical products usually for a mass market |
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Advantages of flow production |
- Produce more products to meet demand - Economies of scale, lower average cost per unit - Efficient and quick - Consistent quality |
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Disadvantages of flow production |
- Need to buy capital, Higher start up costs for machinery - Workers less motivated as it is the same repetitive task - Less flexible and adaptable - One mistake and the whole process is halted |
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Examples of products made by flow production |
- Household appliances - Wasting machines - TVs - Clothes - Standard cars |