VOLUMEVolume refers to the number of times that anoperation has to deliver a service of product.An operation dealing with high volume should bedesigned to process the demands placed upon itmore speedily than the operation meeting lowerVolumeThe combination of specialization, standardizationand high volume opens up the possibility of usingtechnology to perform the task.
VARIATIONVariation describes the pattern of the volumedemands.If there are many peaks and troughs in demand thesituation is said to be one of high variation.Carrying extra capacity in the times of low demand is inherently expensive, involving under- utilization of key resources such as staff, technology and facilities.
VARIETYVariety is the term applied to the number ofdifferent types of service or product demandCoping with high variety is a more challengingmanagerial task than dealing with low varietyAn operation facing high variety has to be designed to provide the appropriate level of flexibility
CUSTOMER CONTACTThe customer contact dimension is concerned withhow much time the personnel of the operation haveto spend with their customer.The more that customer get involved therefore, thegreater is the challenge to the planning and controlof the operation manager.
TASKWhat are the implications for the McDonald’soperation if its customer move towards low volume,high variation, high variety and high customercontact features?
TO REFRESH YOUR KNOWLEDGEWHAT IS VALUE CHAIN? A value chain is a chain of activities. The goal is to analyze the activities through which firms can create a competitive advantage, it is useful to model the firm as a chain of value- creating activities.
VALUE CHAIN ANALYSISThe operations manager have to know how theoperation’s activities fare under this calculation.The way in which the inbound logistics effect thevalue structure of operations have to be analysed.
VALUE CHAIN ANALYSISThe effects of the supporting activities of thecompany structure, human resource management,technology development and purchasing have to beassessed.The effect of operational activities on the valuecalculations of the downstream functions ofoutbound logistics, marketing and sales andcustomer service have to be evaluated.