The 4V's Model Flashcards
1
Q
What are the 4 V’s?
A
Volume (of operation)
Variety (of output)
Variation (In the demand for output)
Visibility (creation of output)
2
Q
Define the 4V Model
A
The 4V model describes how they are organized in terms of volume, variety, variation and visibility
3
Q
Implications of Volume
A
Low
- low repetition
- each staff member performs more tasks
- less systemization
- high unit costs
High
- high repeatability
- specialisation
- more systemization
- capital intensive
- low unit costs
4
Q
Implications of Variety
A
High
- flexible
- complex
- match customer needs
- high unit costs
Low
- well defined
- routine
- standardized
- regular
- low unit costs
5
Q
Implications of Variation in demand
A
High
- changing capacity
- anticipation
- flexibility
- in touch with demand
- high unit costs
Low
- stable
- routine
- predictable
- high utilisation
- low unit costs
6
Q
Implications of Visibility
A
High
- shot waiting tolerance
- satisfaction governed by customer perception
- customer experience management critical
- received variety is high
- high unit costs
Low
- time lag between production and consumption
- standardized
- low contact skills
- high staff utilisation
- centralization
- low unit costs
7
Q
Implications of 4V’s
A
Cost
- keeping process costs down = high volume, low variety, low variation, low visibility
- cost penalty for operation = low volume, high variation, high variety, high customer contact (visibility)
Efficiency
Human Resources
