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Operations - Coggle Diagram
Operations
Business location
Cost of location
Government support
Proximity to suppliers / raw materials
Labour skills / proximity to labour
Unemployment level
Transport infrastructure
Communication infrastructure
Customer Service
After sales service
Customers are more confident to buy product (increasing sales)
Workers need to be trained to deal with customers and refund returns
Customer Engagement
Customers feel comfortable with the buying experience (increasing sales)
There are costs in training staff
Product knowledge
Customers are given information that helps them make a good decision (increasing sales)
There are costs to training staff
Customers feel confident about the seller and what they are buying (increasing sales)
Encourages customers to return in the future
Methods of Production
Job Production
Advantages
High quality, bespoke items
High selling price
Disadvantages
High costs of production
Requires skilled labour
Production may be slow
Flow Production
Advantages
Large quantities can be produced quickly
Benefit from economies of scale (decrease cost per unit)
Use of automation can reduce costs
Disadvantages
Mass produced good may not be high quality
Requires large warehouses to store raw materials and machinery
Production can be disrupted by a mechanical breakdown
May be repetitive and boring for workers leading to staff retention and motivation problems
Batch Production