Which term describes making a single, one-off product that is designed to meet the requirements of one specific customer?
Job production
What is meant by flow production?
The continuous mass production of identical items on an assembly line
Which term describes the use of machinery and robotics to carry out production tasks with little or no human input?
Automation
Which term describes manufacturing groups of similar goods using the same machinery before it is re-set to make a different group?
Batch production
What is meant by productivity?
The amount of output produced by each worker in a given period of time
What is meant by flexibility in a production process?
The ability of a business to change quickly from one task to another
What is the main purpose of business operations in a company?
To produce goods and provide services for customers
Which of the following is a service rather than a good?
A car repair carried out at a garage
Which of the following is a feature of job production?
Each item is made to meet one customer's requirements
Why are unit costs usually high when goods are made using job production?
Skilled workers take a long time to make each item
Which of the following is a benefit of batch production compared with job production?
Unit costs are lower because the same machinery makes a whole batch
Why does flow production allow a manufacturer to charge competitive prices?
High output means the cost of each unit is low
Car factory workers wear augmented reality glasses that display assembly instructions while they work. How does this most improve productivity?
Workers finish each task more quickly without checking paper manuals
How does automated machinery improve the quality of goods produced?
Machines repeat the same process exactly, so errors are reduced
A clothing factory installs computer-controlled cutting machines that cut fabric with almost no waste. What is the main effect on the factory's costs?
Less fabric is wasted, so the cost of each item falls
A car plant uses robots that can be reprogrammed in minutes, so the line can switch from building one model to another. What does this show about the impact of technology?
It makes the production process more flexible
A small bakery is thinking about buying an automated bread-making machine. What is the main drawback of doing this?
The machine is expensive to buy and install
Which of the following is most likely to be produced using batch production?
An order of 100 identical mobile phone cases
What is a disadvantage of batch production for a manufacturer?
Time is lost re-setting the machinery between batches
A drinks factory fills thousands of identical bottles every hour on a flow production line. Why is productivity high on this line?
Automated machines keep running, so output per worker is high
What is the name for the process of finding suppliers and agreeing terms for the supply of goods or services?
Procurement
Which term describes the amount of time between placing an order for stock and receiving the delivery?
Lead time
What is the name for the extra stock a business holds to cope with emergencies or unexpected rises in demand?
Buffer stock
What is meant by just-in-time stock control?
Materials are delivered just as they are needed for production
What is meant by 'logistics'?
The management of the movement and storage of goods from suppliers and on to customers
What is meant by 'stock control'?
Managing the level of stock so that a business has enough to meet demand without holding too much
Why does a business hold buffer stock?
To cover demand or deliveries that are unexpected
What is a main advantage of using just-in-time stock control?
Less money is tied up in stock held in storage
A business using just-in-time stock control has a delivery delayed by two weeks. What is the most likely result?
Production stops because the materials have run out
Why might a business choose not to buy from the cheapest supplier it can find?
Cheap supplies may be lower quality or less reliable
Why is trust an important part of the relationship between a business and its supplier?
The supplier will keep to agreed prices and delivery dates
A business's supplier keeps delivering late, so customers cannot buy what they want. Which is the most likely impact on the business?
Its reputation is damaged and customers may go elsewhere
What is meant by the re-order level on a bar gate stock graph?
The stock level at which a new order needs to be placed
A bar gate stock graph shows that a business's stock has fallen to its re-order level. What should the business do?
Place a new order with its supplier
A business switches to a cheaper supplier whose goods are often faulty. Which is the most likely effect on customer satisfaction?
Customers receive poor quality products and become less satisfied
Why is the availability of supplies especially important to a business using just-in-time stock control?
There is very little stock held to keep production going if supplies run out
A business asks its supplier to deliver an urgent order more quickly than usual. What is the most likely effect?
The business pays more for the delivery
Which is a problem for a business that holds too much stock?
Storage costs rise and cash is tied up in unsold stock
Which term describes a good or service that is fit for purpose and meets the needs of a particular customer?
Quality
What is meant by 'quality control'?
A business checking that the goods it has produced have been manufactured to the required standard
What is meant by 'quality assurance'?
The systems a business uses to ensure production quality meets customer needs
What is the name for the edge a business has over its rivals when customers are prepared to pay more for its products because of their higher quality?
Competitive advantage
Which term describes a customer's judgement that a product is worth the price they pay for it?
Value for money
What is meant by 'consistent quality'?
The same standard of product or service is provided to every customer every time
What does it mean if a product is described as being of good quality?
It is fit for purpose and meets the needs of the customer
At which point does quality control usually take place in the production process?
At the end, after the goods are produced
How does quality assurance differ from quality control?
It focuses on the whole production process rather than the finished output
A furniture maker inspects quality at several points during production instead of only at the end. What is the main benefit of this?
Faults are found early, which reduces waste and production costs
How can consistently high quality help a business gain a competitive advantage?
Customers trust the brand and may pay more
How can a quality assurance system help a business to control its costs?
Less money is wasted because fewer faulty items are made
A restaurant keeps receiving complaints that its staff are rude to customers. Which action is most likely to improve service quality?
Training staff to deal with customers politely
A clothing retailer sells items that vary in quality, and some fall apart after one wash. What is the most likely impact on the business?
Its reputation is damaged and customers switch to rival shops
Two customers buy the same meal at a restaurant. One says it is excellent quality and the other says it is poor quality. Why might this happen?
They have different expectations of what quality means
During a flight, cabin crew ask passengers whether they are happy with the service. Why is it important to deal with any problem before the flight ends?
The problem can be fixed before the customer leaves
A hotel wants to use quality assurance to improve its service. Which action is most suitable?
Setting standards for every stage of a stay
A phone manufacturer recalls thousands of phones because the batteries overheat. Why does this increase the manufacturer's costs?
It must repair or replace faulty phones
A hotel chain has excellent service in some branches and poor service in others. Why is this a problem for the chain?
Customers receive different standards and the brand may suffer
A restaurant wants to monitor the quality of its customer service. Which method is most suitable?
Asking customers to complete a feedback survey
What is the name for the information and understanding that sales staff have about the features and benefits of the items they sell?
Product knowledge
What is meant by 'post-sales service'?
The support a business gives a buyer after a purchase, such as repairs or replacements
What is the name for the opinions and comments that buyers give to a business about the goods or services they have bought?
Customer feedback
What is meant by 'customer engagement'?
The way a business builds a relationship with its customers to encourage loyalty and repeat purchases
What is the name for the promise made by a seller to repair or replace a faulty item free of charge within a set period after it has been bought?
Guarantee
What is meant by 'speed and efficiency of service'?
How quickly and smoothly a business deals with a customer's needs when making a sale
Why can poor product knowledge among sales staff lead to a lost sale?
Customers are left with unanswered questions and lose confidence
Which of these is a benefit to a business of providing an efficient service?
It keeps the cost of providing the service low
Why does a business try to engage its customers through channels such as social media and apps?
To build customer loyalty and encourage repeat business
Which of these is a reason why customer feedback may not be reliable?
It may come from a disgruntled customer
Why might a firm offering generous post-sales service gain a competitive edge over its rivals?
Customers trust the firm and recommend it to others
A skincare firm offers customers a 100 per cent money back guarantee after 60 days. What is the main benefit of this to the business?
Customers feel confident enough to try the product
What is a likely consequence for a business that provides poor customer service?
Customers switch to rivals and the firm's reputation suffers
What is meant by good customer service?
Looking after customers well before, during and after a sale
In which of these markets is speed of service most important to customers?
Emergency plumbing repairs
Why does a business benefit from responding to the customer feedback it collects?
It can improve its products and service
A customer's online order arrives late and damaged. Which action shows good customer service?
Dealing with the complaint quickly and arranging a replacement
How can offering post-sales service help a business to increase its sales?
It gives the business the chance to sell related products
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