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Operations Management 5
Job production: architects, tailors and dressmakers and wedding cake makers.
Each product or service provided is aiming to satisfy the particular needs of one customer ­ one-off
products or services allow customers special requirements to be met ­ production costs can be high.
It is often a slow process the business must plan and design each project individually.
It is a flexible production process ­ no two products or services need to be the same ­ high prices can
often be charged as customers may be prepared to pay extra for specially designed products ­
labour costs can be high as skilled workers are usually needed.
Batch Production: paint manufacture, school uniforms, soft drinks, and food in some restaurants.
Groups of identical products can be made at the same time ­ the cost of each unit produced is likely
to be lower than job production as it is more efficient to make a lot similar items ­ there is less scope
for customising products consumers must be prepared to buy similar goods.
Different designs and styles can be made in different batches ­ different consumer tastes can be
supplied by producing different products in different batches ­it can take a long time to switch from
making a batch of one product to a batch of a different type of product.
To be profitable there must be demand for the same style design or flavour of the product ­ stocks
of finished goods from each batch may take some time to sell.
How can one firm be more operationally efficient than another?
More efficient machinery ­ perhaps using the latest advanced technology but this is often
More highly motivated workers who want to work quickly and well.
Minimum wastage meaning that virtually everything that is produced can be sold. This means
everything that is produced must be right first time.
More effective management using faster production methods such as encouraging worker
specialisation. Good managers are at the heart of an efficient business.
Robots ­ computer aided manufacturing
Advantages of robots:
Known for their speed, accuracy and efficiency.
Exact and thorough, achieve high quality and do not need breaks.
Used for repetitive, hazardous and boring tasks.
More accurate than workers they increase efficiency and reduce waste.

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Computerised stock control programs find out:
How much of a product is in stock?
How old is this stock?
Which are the fastest moving items of stock and which are the slowest?
Advantages include:
Automatic stock control, triggering orders when the reorder stock level is reached.
Bar coding systems which speed up processing, recording of stock and customer checkouts.
Less labour required and fewer errors made, both of which improve efficiency.…read more

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Workers can be reluctant to change and accept new ways as they fear they will lose their
Quality of UK banks would be measured by:
The speed taken to answer call.
Queuing times in branches.
The number of account errors made.
The quality of financial advice given.
The advantages of producing a quality good or service:
More satisfied customers.
A better reputation.
Lower costs as wastage is reduced.…read more

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Goods and services sold to consumers must be as described by the business.
They must be fit for purpose.
Goods and services must be of satisfactory quality.
Consumer protection act 1987:
Compensation must be paid to a consumer who suffers injury or damage to property when
correctly using the good.
Competition act 1998:
Businesses must not agree to fix prices at a high level with other similar businesses.…read more

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Websites may not be frequently updated.
Goods cannot be tried on or tested before purchase.
They might not respond quickly and there is no personal contact with sales staff.
Benefits of internet towards the business:
Quite cheap to set up even if business owners cannot design a webpage themselves.
Can access consumers around the world and promote the business and products much more
cheaply than using traditional means of selling.…read more

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Job production: making one off specialised products for each customer.
Batch production: groups of identical items that pas through different stages of the production
process at the same time.
Operational efficiency: producing goods and services to an acceptable standard with as few
resources a possible to keep costs per unit low.
Unit costs: the average cost of making each unit.
Specialisation: work is divided into separate tasks or jobs that allow workers to become skilled at
one of them.…read more

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