What are the four Vs in Operations Management?

The four Vs of operations management:

  • Volume: Volume is an important metric since it demonstrates customer trust in a product or service. Although volume should never be used to establish price or selling trends, it may be utilized as a starting point for gaining insights into the markets and determining future steps.

  • Variety: It has to do with the wide range of goods and services that will be created and sold to clients. It’s all about variety in this V. Selling a diverse range of products or services allows businesses to expand their sales and profit potential while reducing their reliance on just one or two products, which can lead to business closure if demand for those products dwindles.

  • Variation: It refers to how much demand fluctuates over time as a result of external variables. However, predicting variation is challenging due to a number of factors.

  • Visibility: It refers to the entire value chain of a company’s procedures. Customers must be able to try out the company’s goods and services. In comparison to manufacturing businesses, service industries have a high level of visibility.