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The four Vs volume variety variation in demand and visibility in an organization?
Wiki User
∙ 14y ago
To understand the different types of operation we differentiate between them by using four dimensions - it calls these the four V's of operations. They are, * Volume - how many products or services are made by the operation? * Variety - how many different types of products or services are made by the operation? * Variation - how much does the level of demand change over time? * Visibility - how much of the operation's internal working are 'exposed' to its customers? In most industries one can find examples at either end of each dimension. So, for example, in transport, a taxi service is low volume while a bus service or mass rapid transport is high volume. In accounting firms, corporate tax advice is high variety because all large corporations have different needs, while financial audits, which have to be carried out to comply with financial reporting legislation, are relatively standardized. In food manufacture, the demand for ice-cream varies considerably depending on the weather, while the demand for bread is far steadier and more predictable. In the dental care industry, dentists operate high visibility operations (it's difficult to work on your teeth if you are not there) but rely on dental technicians in factory-type laboratories to make false teeth etc. These dimensions are most useful in predicting how easy it is for an operation to operate at low cost. Volume dimension: The volume dimension has different implications whether it is in a high level or low. In the low levels of volume, the company's operations have specific characteristics such as having low repetition in the everyday procedures, each staff member performs more than one job in other words they are multifunctional, less systemization and high unit costs. In the high levels of volume, the company's operations have its own specific characteristics such having high repeatability in the everyday procedures, there will be specialization, systemization, more capital intensive and low unit costs. Variety dimension: The variety dimension has its own implication as well whether it is high or low. In the high side of the scale there will be more flexibility in the procedure, complex, the company will make sure to match customer needs and of course the unit cost will be high. In the other hand, when the company is in the low side of the scale the procedures will be well defined, there will be routine, standardization, and of course low unit cost. Variation in Demand dimension: The variation in demand has many implications that can be seen from the company's characteristics. If the company is in the high levels of demand variation then it has changing capacity, anticipation for what the customer might demand, flexibility, in touch with demand and high unit cost. While in the other side of the scale, the company would have a stable and predictable demand, routine, high utilization of resources and low unit cost. Visibility dimension: The visibility dimension which is the customer ability to track his or her order through its different stages has its implications whether it is high or low. When it is high the customers have short waiting tolerance, satisfaction governed by customer perception, customer contact skills are needed and very important and the receive variety is definitely high. And when it is low, the time lag between production and consumption, there will be standardization, the customer contact skills will not be very important or needed, the company must have a high staff utilization and centralization.
Wiki User
∙ 14y ago
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What is Direct action and indirect action of external environment of organization?
The organization is going to be influenced by the laws that are placed on it. Consumer demand will also influence how the business is ran.
Elements of Human Resource Planning?
Balancing labor supply and demand, analyzing current labor supply and forecasting labor demand are the three key elements of HR planning. HR planning serves as the bridge between plan of organization and resource management.
What is forecasting in production planning?
In production planning, we are primarly interested in in forecasting product demand. Because demand is likely to be random in most circumtances, can forecasting methods provide any value? Mostly yes. Although some portions of the demand process may be unpredictable, other portions may be predictable. Trends, cycles and seasonal variation may be present, all of which give us an advantage over trying to predict the outcome of a coin toss.
What does the capacity planning process entail?
The capacity planning process en-tail's determining the production capacity needed by an organization to meet static or fluid demand's by other company's or retailer's for it's product's. Other terms that come to mind would be "design capacity" Or "capacity management" or for even simpler thinking you could call it supply and demand.
What are Human Resource Forecasting?
Forecasting human resource demand is the process of estimating the future human resource requirement of right quality and right number. As discussed earlier, potential human resource requirement is to be estimated keeping in view the organization's plans over a given period of time. Analysis of employment trends; replacement needs of employees due to death, resignations, retirement termination; productivity of employees; growth and expansion of organization; absenteeism and labor turnover are the relevant factors for human resourced forecasting. Demand forecasting is affected by a number of external and internal factors.
What are the 4v's of operation management?
volume, variety, variation in demand, visibility
What is low price sensitivity?
low price sensitivity means a variation in a demand for a product is not more or does not vary much according to variation in the price , depending on the factors that impact demand eg- necessary goods medicine .
How is demand typically measured in a health care organization?
Demand is typically measured in a health care organization by the urgency of the ailment and the availability of the specialist that is needed for the given situation. This determines the waiting order.
Why do you need to keep inventory?
to maintain the risk of demand uncertainity in an organization
What is the full name of the militant organization that uses terrorism to demand land for independent Palestinian state?
Palestine Liberation Organization.
What is the full name of the militant organization that uses terrorism to demand land for an independent palestinian state?
Palestine Liberation Organization.
What is Direct action and indirect action of external environment of organization?
The organization is going to be influenced by the laws that are placed on it. Consumer demand will also influence how the business is ran.
Explain what is meant by compensating variation and equivalent variation?
There are three central measures of welfare in economics:-Consumer Surplus (using a "marshallian demand function) -Equivalent Variation (using Hicksian demand function) -Compensating Variation (also using Hicksian demand function) Although consumer surplus is the most common measure of welfare it is flawed - it is based on a quasi linear demand function - one in which income has no effect on the demand for the good. However if there are large income effects involved; the demand curve is no longer a simple marginal value curve but one in which the value placed on the additional unit is heavily influenced by the amount spent on prior units. The consumer surplus now has no meaning in the marshallian demand context.We want to ideally examine the effect of a price change allowing income to alter but maintaining utility at some fixed level. Therefore we must use a Hicksian demand function - one in which a price change will be matched with a corresponding change in income such that utility is maintained at some level. We can now utilise equivalent and compensating variation to examine the changes in welfare of the associated price change.Equivalent variation is the income that you need to take away from an individual to make him equivalently worse off or better off following a price change.The Compensating variation on the other hand is the amount of income you need to compensate an individual following a price change so that he remains on the same level of utility. For Equivalent variation we maintain utility at the new price ratio whereas in the case of compensating variation we maintain utility at the old price ratio.Assuming the income effect is significant enough to disregard consumer surplus as an effective measure of welfare change and also a rise in price of good 1; the hicksian demand function which holds income constant will thus be steeper than the marshallian demand (assuming normal good - if inferior the opposite is true). The hicksian demand function relating to the original price level will be associated with a higher utility than the other hicksian associated with the new and higher price. However we cannot observe utility, hence we are using these functions. The equivalent variation will be smaller than the change in consumer surplus which in turn will be smaller than the compensating variation. The intuition behind this is that for a normal good more income is required to compensate the individual for a rise in price to maintain utility than income to be taken away from an individual such that he lies on a same lower utility.
Factors affecting demand of malls in India?
Rising per capita incomeEmergence of newclar familiesEntery of multinational-offering variety of products raise the demand of household products
Are insurance agents high in demand?
Yes; the demand for insurance agents is expected to continue to increase in the future, based on the increase in variety of products. In addition, growing population leads to an increase in demand for various types of insurance.
What service is provided by CRM On Demand?
There are many features and benefits of CRM On Demand. Some of these benefits include allowing customers to interact with voice, IVR, and email and monitor organization efficiency.
What is VCAST on demand?
VCAST on Demand is a program that is avalible on most Verizon Wireless Cell Phones. You can choose from a wide variety of Television shows, and watch them instantly (or "On Demand") on your cell phone for a fairly cheap price. Hope I HELPED!
