BA Theories (Business Administration & Management)

The 4 Vs of Operations Management Explained

The 4 Vs of Operations Management

In Operations Management, the 4Vs refer to the four dimensions used to assess operations processes.

Typology of Operations: 4Vs

Operations can be categorised into four dimensions, referred to as The 4Vs typology. These four dimensions are Volume, Variety, Variation in demand, and Visibility.

Volume

It refers to the Quantity (units) of products that a company can make, based on the demand. Companies use different production systems to handle the volume. It strives to adjust to the demand and not overproduce (wastage) or underproduce (lost sales).

Variety

The more the variation in the products, the more are the operations process needed and more are the costs.

Visibility

Visibility is about being knowing the Customer’s needs and experiences of the products. Companies conducts surveys and interviews of customers, and also keeps track of warranty claims and sales data to understand more about the customers preferences. IT systems also provide more visibility in the production process.

Variation in Demand

Increase in demand requires increased inputs whereas decrease in demand requires reduced levels of productivity. Workers may work longer hours or work in additional shifts to meat increase demand.

By using these dimensions to understand the structure of an operation, one can highlight the operations performance objectives.

 

Related: more operations management topics

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