The influence of 4V's

• Volume

  Refers to how much of a product is made

  Volume flexibility relate to how rapidly production process can adapt to fluctuations in demand

  manages lead times, which is the time it takes for an order to be fulfilled from the moment that it is made

  if businesses cannot quickly adapt to change in market demand they will overproduce which may lead to waste and increased inventory costs
• Variety

  The mix of products made or services delievered, through the transformation process is called mix flexibility

  Greater the variety, the more the operations process needs to allow for this variation
• Variation in Demand - increase in demand

  Increase in demand will require inputs from suppliers, human resources, energy use and machinery and technology

  May be problematic if;

  suppliers can’t deliver quickly

  labour is not available in adequate numbers

  machinery cannot adjust to increase requirements

  increased energy and power is not accessible
• Variation in Demand - decrease in demand

  Decrease in demand will also require operational flexibility as staff numbers may be reduced, production slowed or contract suppliers may insist that orders be filled despite being unnecessary

  Anticipating demand → some variations are predictable, for example seasonal such as christmas which will increase demand or increased demand for air conditioners may be required in summer
• Visibility - customer contact

  Customer contact or feedback can directly affect transformation process → customers and their preferences can shape production decisions

  Direct contact takes the form of customer feedback through surveys, interviews, letters, social media

  Indirect feedback occurs through a review of sales data which gives an indication of market share through observing people’s decision-making process