To match or develop a strategy to tolerate supply

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to match or develop a strategy to tolerate supply failure. So, although low variation in demand operations are often linked to operations that focus on cost performance, it isn't an unbreakable relationship. The final part of this model is the inclusion of visibility (you may see this referred to as the degree of customer contact). Having read through the lexicon, you should be able to assert that high visibility operations are typical of service operations, and low visibility of production operations. But here comes the twist - some production operations may well increase the visibility of production to add value to their products (for example, have you ever experienced 'the chef's window' in a take away food outlet? It is for your benefit of seeing that the food is being prepared appropriately). Also you may not be able to 'see' much of some service operations, for example financial advisors preparing their offerings to you. What visibility in the operation infers is the degree of value you could take from experiencing the production/service operation, from which you may infer (and potentially pay for) increased quality. In a descriptive format we may plot these different points (relatively) on four axes: volume (in production), variety (in production process), variation (in demand) and visibility (of the production process). The axes will only be scaled at either extreme as high or low. The only trick to this model is to invert the axis on the volume dimension, leaving the other three consistent in their approach. 1.7.1: 4Vs example grid Developing beyond the descriptive ability of the model. In analysis it means that operations that conform to a left hand weighting are typically a cost performance operation (and usually a production operation). Right hand weighted operations are high value, quality orientated (service) operations. You will be able to gauge the
relative degree of service component where you have hybrid operations - this is useful later in the module where we look at the dominating factors on capacity management and quality management. Developing the 4Vs from a descriptive into an analytical approach, we need some familiarity with the patterns we expect to see. To prepare yourself for this, please respond to the talking point below. THE CHALLENGE OF VARIATION VS. VISIBILITY Using your own experience (either your current workplace, or an organisation with which you have familiarity) quickly find examples of operations that meet the following criteria: High volume/Low variety Low volume/High variety Low variation in demand and low visibility A B High variation in demand and high visibility C D STOP AND THINK ACTIVITY 1.7.1
1.8 Variation and visibility - an opinion Hopefully this will have presented you with two challenges. 1. You may have found it very easy to identify multiple examples in both A and D. B and C will have been more challenging. The likelihood is that your answers were particularly biased toward one or two of the different categories indicating the nature of your organisation.

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