The 4V’s

Operations Management

Done by:
Dalia Al-Shatarat
Learning Objectives
1. Introduction.
2. The Definition of 4V’s.
3. 4V’s frame work.
4. Service operations vs. Manufacturing
operations.
5. The difference between product layout
and process layout.
6. Similarities and differences between
product and process approaches.
Operations Management is essentially how
businesses produce goods and services.

All operations processes have one thing in

common, they convert inputs into outputs

They do this in different ways and there are

different designs for the operations process.

The main four factors influence the process

design is known as the Four V’s,
Volume,Variety,Variation and Visibility.
What are the 4V’s
 Although all processes share the same
objective, they differ in these dimensions:
 Volume.
 Variety.
 Variation.
 Visibility.
The 4V’s Dimensions
1. Volume
o It is how many products or services are
completed or made by the operations.
o uniformity, standardization, automation and
routine are key to achieving high volumes
(mass production) of output and therefore
low cost per unit.
o This dimension works best when
operations make a single product or small
range of standard products.
o We might see this dimension is key to
Organizations like McDonald's .
2.Variety
o Refers to how many different types of
products and services are made by the
operations.
o This dimension requires more ‘functional
flexibility’ (or multi-skilled) staff and other
resources in order to produce a ‘diversity
of output (variety)’, otherwise a low cost
model can be difficult to achieve.
o For example general physician in the ER.
3. Variation
o it is related to the demand, and refers to
how much the level of the demand changes
over time.
o this dimension refers to the ‘degree of
customization’ to its products or services
that an organization can offer to its
customers.
o For example the cars manufacturing
companies when they customize cars
under the demand of their special
customers.
4.Visibility.
o This dimension refers to the customers
ability to see and experience operations
as a process.
o This dimension is more critical to service
sectors such as barber shop.
o physical evidence, people and processes
are witnessed first-hand by the customer.
4V’s Framework

Service Product
Product Orientated
and
Process Orientated
Process vs. Product Layout
 Manufacturing companies operations managers
face a problem of deciding their facilities layout
philosophy in order to achieve its best
organization goals by maximizing their
productivity and reducing their costs and waste in
their operations.
 Process layouts and product layouts are two
popular layouts best suited to different
production situations.
 In order to structure their own manufacturing
operation they need to understand the difference
between process and product layout
manufacturing.
Process vs. Product Layout
 Product Layout
o Groups different workstations together
according to the products they work on.
o For example: cars assembly factories.
 Process Layout
o Groups workstations together according
to the activities being performed,
regardless of which products each
workstation is working on.
o A factory that has several sewing machines
Examples
Comparison
Line or Product Layout Process
In line or product layout, similar machines
are arranged according to the sequence of
operations required for manufacturing the
product.
It is meant for mass production and
extremely less job variety
Work flexibility is very less in this layout
It is used in mass production or assembly
work.
Process or Functional Layout
In process or functional layout, similar
machines are arranged in one location for
manufacturing the product.
It is meant for moderate production and
more job variety
Work flexibility is more in this layout
It is used in job order production or
maintenance work of non-repetitive type.
Thank you 