AQA A level Business unit 4

these are goals for each functional area of a business and are based on corporate objectives

costs, quality, speed of response and flexibility, dependability, environmental objectives, added value

sales revenue - total costs

increase sales or reduce costs

those features of a product or service that allow it to satisfy customers

customer satisfaction rating, customer complaints, scrap rate, punctuality

how promptly a business delivers its goods

(deliveries on time/ total deliveries) x 100

reducing waste, reducing carbon footprint, minimising waste products or materials, increase recycling, achieving self-sufficiency in energy use

the difference between the costs of producing a good and the price it is sold for

labour productivity, unit costs, capacity, capacity utilisation

when labour costs outweigh capital costs of a business

the amount of output that is obtained from each employee

output per period / number of employees in that period

quality of machinery, skills and motivation of workforce, methods of production used, reliability of raw materials

increasing number of hours worked, training to employ output, investment in technology, changing the way work is done, motivating employees

the cost of producing one unit of output

total costs / units of output

efficiency of workforce, efficiency of machinery, how easily variable costs can be controlled

the maximum total level of output or productivity that a business can produce in a given time period

the percentage of a firm's total possible production level that is being reached

(capacity output) / maximum capacity) x 100

resources not being used that could be

new competitors, change in customer taste, unsuccessful marketing, seasonal demand, over investment in fixed assets

aims to reduce all forms of waste in the production process

zero delay, zero stocks, zero mistakes, zero waiting, zero accidents

organising production around teams instead of a production line

reducing the stock holding of a business to make it more efficient by ordering just when it is needed

raw materials, work in progress, finished goods

type of operating process, relative price of resource, availability of resource, nature of product, state of technology, ethics

robotics, automation, communication, design

reducing costs, improving quality, reducing waste, increasing productivity, financial monitoring, new products, better working conditions

a measure of excellence which is free from defects or significant variations.

image and brand, reputation, exclusiveness

appearance, reliability, durability, functions, after-sales service, repair and maintenance

sales, USP, selling price, flexibility, cost reduction, firm reputation

system that uses inspections to check the quality of work at stages of the manufacturing process

system that improves quality by arranging every process to get products right first time

approach to long term success that aims for improvement continually throughout every functional area of the business

policy of implementing incremental changes in order to achieve better quality and greater efficiency

set of criteria used to establish quality systems which are accredited

productivity, profitability, customer satisfaction, costs

personalisation or custom tailoring of goods to meet customer needs

a process by which a firm improves its efficiency by cutting the scale of its operation

when a business asks another business to make all or part of its products

an employee contract that is for a fixed period