Operations Management: Understanding the 4 Vs and Effective Performance Objectives

Operations Management 1
OPERATIONS MANAGEMENT
By
Course
Professor’s Name
Institution
Location of Institution
Date

Operations Management 2
Operations Management
Business operations refer to the main place in the business where the input of labor to produce a
certain result is carried out. On the other hand, in service-based organizations, operations are
usually in the form of physical output until a specific delivery is made. There is a need for
research on operations management especially from the real world because the people are the
consumers in any given set of business. In companies that manufacture raw materials, operations
follow the product from the time it is received by the organization, to the time of processing and
finally to delivery (Millard, 2015). Management of operations in organizations is crucial
because, it helps to evaluate the strengths of a business, its weaknesses and possible room for
improvement.
Transformation in operations management is the conversion of inputs into output. When
transforming goods, the output will be a tangible while when transforming services the output is
said to be intangible. An example is the South Australian Automobile Association, which is a
transforming resource since it provides services to vehicle breakdowns. On the other hand, the
vehicle becomes a transformed resource as its value is restored by the services given by the
association. A similar example of a transforming resource is the RAC’s Breakdown Assistance
Centre. It receives calls and responds to customer’s orders and therefore, add value to the motor
vehicles. The motor vehicle automatically becomes the transformed resource because its value is
improved by the services offered.
According to Millard, (2015), the 4 Vs. of Operation Management gives key ways
of how to learn about differences in operational processes. The first key is The Volume
Dimension, which depends on the customer relationship to knowing the number of goods or the
type of service needed. In the case of the breakdown above, the customer calls and explains the

Operations Management 3
level of breakdown, which helps the service providers know all the required information like, the
location of the breakdown, and the level of breakdown. This helps in calculating the level of
input needed hence minimizing cost. The second key is The Variety Dimension, which also helps
to know the customer demand and the service needed like in the case of the motorist above.
Variety Dimension makes the third key which in the case of the motorist, gives
him a wide range of choices to make depending on the speed, dependability, quality, or cost of
the services. The last key is Visibility Dimension, which in the case of the motorist also gives the
customer an opportunity to evaluate by sight the quality of service provided and therefore make
the right choices (Somerville & Sargent, 2014).
Below is the Dabbawala’s delivery process regarding customer's requirements.
Speed They deliver on time
Quality They have the best quality in Mumbai
Dependability They are very reliable
Flexibility They deliver a variety of food
Cost Very affordable
Deliver a variety of goods
Delivery is always on
time. Very reliable
They have the best quality.
Affordable prices for customers