1. UNIT 1 – OPERATIONS MANAGEMENT
AQA GCSE Business Studies

2. Making products individually, to order.
JOB PRODUCTION
Making products individually, to order.
ADVANTAGES
DISADVANTAGES
Customer satisfaction - quality of the finished good is high.
Labour costs are very high - skilled workers are needed.
Flexible - design of the product can be changed to meet the customers requirements.
Benefits of economies of scale are lost - raw materials will not be bought in bulk at discounted prices. Ordered when required.
Job satisfaction is high for workers - high quality products.
Finished products are very expensive - limits target market.

3. BATCH PRODUCTION
A group of similar products are produced at the same time.
Assembly line is stopped and reorganised.
ADVANTAGES
DISADVANTAGES
Higher quality products - machines can be used which are more precise.
Expensive - more space is required for working and storage of raw materials.
Flexible – production process can be easily changed to produce a batch of a different product.
Production time can be lost – machines can break or may have to be re-set between batches.
Allows specialisation – an employee can concentrate on one task and becomes efficient at it, rather than switching between tasks.
Decreased staff motivation – work can be repetitive and less interesting.

4. USING TECHNOLOGY ADVANTAGES DISADVANTAGES
Increased production – automated production lines can operate 24/7.
Recued job security for workers – automation can lead to redundancies.
Lower labour costs – machines/computers replace people on the factory floor.
Expensive – installation, up-dating and maintenance of technology requires a substantial capital investment.
Increased quality – human error is minimised.
Increased training costs - employees will need to be kept up-to-date with the latest developments in technology.

5. CUSTOMER SERVICE BENEFITS DEFINITION
Ensuring customer needs are met before, during and after a purchase. Good customer service means keeping customers happy.
Customer loyalty – customers make repeat purchases.
Improved reputation – due to positive customer feedback.
Increased sales/profits – due to attracting new customers and existing customers making repeat purchases.
Increased market share – become bigger than competitors due to increased sales.

6. ACHIEVING GOOD CUSTOMER SERVICE
PRODUCT
Goods/services must meet the needs of customers. They should be reliable and safe.
PRODUCT INFORMATION
Customers expect information about goods/services so that they can make the right decision regarding choices available to them.
EMPLOYEES
Training must be given to improve communication skills and make sure they have enough knowledge of the business and products to answer customer questions.
PREMISES
Should be clean. Customers should be able to find their way around. Facilities e.g. toilets must be available. Products should be accessible to disabled customers.
PAYMENT
Offer a variety of ways that customers can pay for products/services. Accept cheques, debit/credit cards. Providing credit.
AFTER-SALES SERVICE
Includes: dealing quickly and fairly with complaints, delivering products without delays, exchanging faulty goods, repair goods, offer advice and support after purchase has been made.

7. CONSUMER PROTECTION LAWS
LABELLING OF PRODUCTS
Labelling of Food Regulations 1970: States that packaged food must contain the ingredients listed on the label.
Weights and Measures Act 1970: States that weights and measures must be stated on packets or containers. The measures must also be correct.
Unfair Trading Regulations 2008: Replaced the Trade Description Act. Makes it illegal to give consumers incorrect information on packaging and labels. Also outlaws aggressive selling and door-to-door salespeople.
SALE OF PRODUCTS
Consumer Credit Act 1974: Stops businesses charging consumers very high interest rates when taking out loans. Gives consumers a week to change there minds about taking out a loan.
Sale of Goods Act 1979: Makes sure products, when sold, work as expected and are undamaged. Goods should be as described and of expected quality.

8. CONSUMER PROTECTION LAWS
USING INFORMATION CORRECTLY
Computer Misuse Act 1990: Prevents people looking at information stored on computers that they have no right to read.
Data Protection Act 1998: Businesses must store information about consumers securely to avoid theft and loss.
SAFETY OF PRODUCTS
Food and Drugs Act 1984: Lists things that can, and cannot, be added to food products. Also makes it illegal to make of sell food in unclean buildings.
Consumer Protection Act 1987: Prevents firms from selling dangerous products to consumers. A business will be made liable for any injury/illness to consumers caused by using a faulty product.
Food Safety Act 1990: Makes it illegal to sell food that is unsafe and that may cause illness.

9. Selling product/service directly to customers through the internet.
E-COMMERCE
Selling product/service directly to customers through the internet.
ADVANTAGES
DISADVANTAGES
Increased sales – customers can place orders at any tome of the day.
Costly to set up - An attractive website and efficient electronic system are essential.
Keep ahead of competitors - particularly if they do not use e-commerce.
Less profits - payment providers e.g. PayPal, usually charge commission for their services.
Reduced costs - no need for expensive premises.
Increased operating costs - packaging and delivery.
Wider target audience – sell products to people across the country or even all over the world.
Time consuming - if selling worldwide the business needs to be able to cope with many languages.