Production is: 4:1 Production Processes

the process of turning

raw materials into Job production Batch production Flow production
saleable products and
Advantages Disadvantages Advantages Disadvantages Advantages Disadvantages
services
 Products are  Costs of  The needs of  It takes time to  Large amounts  Goods are mass-
Job production usually high-quality production will be different customers switch production can be made produced so quality
Making products  Products can be high can be met by from one batch to  Costs of may be low
individually made to meet the  Labour costs may making batches of another - costly production for  Expensive to set up a
needs of individual be high because job different goods  May have to keep each unit is low production line
Knowledge Organiser

Batch production customers production often  Batches are made stock of raw  Machinery can  Large stocks of
Making one type of  Workers often get requires skilled to meet specific materials to be be used, helping materials need to be
product then switching to more satisfaction labour orders from able to switch to recue costs kept which can be
make a different product customers production  Technology can expensive
Flow production  It may be possible  Less choice of be used to change  If production stops at
to use specialist products for the products any point then
The production of one machines to customers slightly to more production stops
product on a continuous Technology is being used more and more in automate  Tasks are are available for everywhere
assembly line the production of goods and services. production repetitive for customers to  Jobs can be
Automation workers choose from repetitive and boring
Technological development is making it
Production involving possible for technology to perform skilled
machinery not controlled work and reducing the need for human
by a person resources

Quality is:
4:2 Quality of Goods and Services 4:3 The Sales Process and Customer Service
E-commerce
about a product being fit Bringing together the
Businesses are able to use a range of selling methods.
Unit 4: Operations

for purpose and working in
a way that it is supposed to
Quality control
A system for inspecting the
quality of goods and services
Quality assurance
An approach that involves the
whole business focusing on
quality
Returns
Goods which customers take
back to the shop because of
problems
Recalls
The business asks for products
to be returned because of
faults
Importance of providing quality products buyer and seller
E-commerce: electronically
It avoids waste Customer service
If goods are not of a good quality they may What a business does
Pros to the business Cons to the business to keep customers
not be able to be sold and so the producer Worldwide competition
has wasted money Can sell worldwide happy
Problems with delivering Face-to-face selling
Open 24/7
It avoids recalls and returning goods Usually completed in a
Professional look at Online security issues
If unsatisfactory products are made and sold little cost shop where there is
they will then have to be recalled and the Technology advances direct contact between
Lower operating costs rapidly
issue resolved at a cost to the manufacturer buyer and seller
Telesales
Reputation and sales Sales completed over
Customers will not be happy with poor Pros to the customer Cons to the customer the telephone
quality products and may shop elsewhere in Price comparison Lack of personal contact After-sales service
the future available Problems returning goods Any help and advice
24/7 availability Only image of goods seen given to customers
Disrupted production
Wider range of Security after they have bought
Production may be disrupted if quality is
products Cannot pay with cash a product
poor from the start
 4:4 Consumer Law Location: 4:5 Business Location
Consumer law is: refers to the place
the are of law which For many businesses, the decision of where to locate is
Customers are protected by the Consumer Rights Act where a business is
protects customers. one of the most important decisions it takes. There are a
2015. This Act of Parliament gives customers protection sited
number of factors that influence the location of a business
when they buy goods and services.
Proximity
Fit for purpose
They must be: Means ‘nearness to’
This means that goods Fit for Satisfactory Proximity
Labour to labour
must do what they are purpose As quality The people employed Proximity Target
meant to do described
Knowledge Organiser

by the business to to raw market

As described
produce goods and materials
This means goods must Impact of consumer law on business
be as the business services
describes A business must make sure that the quality of the Raw materials Transport
Proximity
to
Production
goods is up to standard. They must not be faulty or Materials needed to infrastructure
Satisfactory quality of damaged when bought. If they are not customer customers
goods could return products and this will affect their produce saleable
This means that how reputation. goods and services
the goods are made will Transport Location
reflect the price If goods are produced in a defective way customers infrastructure Costs of factors
Reputation can claim compensation for damage or personal The provision of roads, the site
Competition
Safety of

injury. This could result in huge costs for the

goods

What customers say railways, ports and

business and a loss of reputation.
about a business airports

4:6 Working with Suppliers Assessment Information

Logistics Possible questions
Procurement has a number of roles within a business:
Unit 4: Operations

The
management Your Paper 2 will be in the afternoon on 1. State one way consumers are
of the 1. Identifying goods and services to buy Tuesday 4th June protected by law.
transportation 2. Choosing suppliers
and storage of 3. Ordering goods and services Number of marks available: 80 2. Explain why quality is important to
goods 4. Receiving deliveries from suppliers Time allowed: 90 minutes businesses.
Procurement
The Answer ALL of the questions 3. Analyse one benefit of using batch
management Length of the production.
of purchasing Reliability of the supply chain Costs of items The first 15 questions will be multiple
within a suppliers being bought choice - you must only select ONE 4. Recommend one type of production
business answer, selecting two will score 0 marks. a business could use for a product.
Suppliers
Parties who The other questions will include a range 5. Evaluate the importance of selling
supply goods Affects of of 2, 3, 4, 6, 7, & 9 mark questions good-quality products.
and/or services logistics and Customer
Time of supply
to a business service from
delivery
suppliers State Explain Analyse Recommend Evaluate