Summary
DMO
Block
A
2016
Akiko
van
Dal
Campus
Amsterdam
18/10/2016
,Block
A
2016
DMO
Summary
Akiko
van
Dal
Direct
The
4
V’s
of
Operations
Processes
Differences
in
transforming
inputs:
-‐
The
volume
of
their
output
-‐
The
variety
of
their
output
-‐
The
variation
in
the
demand
for
their
output
-‐
The
level
of
visibility
customers
has
of
the
creation
of
their
output
Implications
Implications
Low
repetition
Low
Volume
High
High
repeatability
Each
staff
member
Specialization
performs
more
of
job
Systemization
Less
systemization
Capital
intensive
High
unit
costs
Low
unit
costs
Flexible
High
Variety
Low
Well
defined
Complex
Routine
Match
customer
needs
Standardized
High
unit
costs
Regular
Low
unit
costs
Changing
capacity
High
Variation
in
Low
Stable
Anticipation
demand
Routine
Flexibility
Predictable
In
touch
with
demand
High
utilization
High
unit
costs
Low
unit
cost
Short
waiting
tolerance
High
Visibility
Low
Production
and
Satisfaction
governed
by
consumption
time
lag
customer
perception
Standardized
Customer
skills
needed
Low
contact
skills
Received
variety
is
high
High
staff
utilization
High
unit
costs
Centralization
Low
unit
costs
2
, Block
A
2016
DMO
Summary
Akiko
van
Dal
The
five
Operations
Performance
Objectives
1. Quality
Quality
is
consistent
conformance
to
customer’s
expectations.
e.g.
Supermarket:
-‐ Goods
are
in
good
condition
-‐ The
store
is
clean
and
tidy
-‐ Décor
in
appropriate
and
attractive
-‐ Staff
are
courteous,
friendly
and
helpful
Quality
inside
the
operations:
-‐ Reduces
cost
–
Fewer
mistakes
made
by
each
process
in
operation,
the
less
time
will
be
needed
to
correct
the
mistakes
and
the
less
confusion
and
irritation
will
be
spread.
-‐ Increases
dependability
–
Error
free
products
and
services
can
lead
to
customer
satisfaction
2. Speed
Speed
means
the
elapsed
time
between
customers
requesting
products
or
services
and
them
receiving
them.
The
faster
a
customer
receives
a
product/service
the
more
likely
they
are
to
buy
it,
or
the
more
they
will
pay
for
it,
or
the
greater
benefit
they
receive.
e.g.
Supermarket:
-‐ The
time
taken
for
the
total
transaction
of
going
to
the
supermarket,
making
the
purchases
and
returning
kept
to
a
minimum
-‐ The
immediate
availability
of
goods.
Speed
inside
the
operations:
-‐ Reduces
inventories/risk
–
Fast
throughput
reduces
inventory
hence
reduces
risk
3. Dependability
Doing
things
in
time
for
customers
to
receive
their
goods
or
services
exactly
when
they
are
needed,
or
at
least
when
they
are
promised.
3
DMO
Block
A
2016
Akiko
van
Dal
Campus
Amsterdam
18/10/2016
,Block
A
2016
DMO
Summary
Akiko
van
Dal
Direct
The
4
V’s
of
Operations
Processes
Differences
in
transforming
inputs:
-‐
The
volume
of
their
output
-‐
The
variety
of
their
output
-‐
The
variation
in
the
demand
for
their
output
-‐
The
level
of
visibility
customers
has
of
the
creation
of
their
output
Implications
Implications
Low
repetition
Low
Volume
High
High
repeatability
Each
staff
member
Specialization
performs
more
of
job
Systemization
Less
systemization
Capital
intensive
High
unit
costs
Low
unit
costs
Flexible
High
Variety
Low
Well
defined
Complex
Routine
Match
customer
needs
Standardized
High
unit
costs
Regular
Low
unit
costs
Changing
capacity
High
Variation
in
Low
Stable
Anticipation
demand
Routine
Flexibility
Predictable
In
touch
with
demand
High
utilization
High
unit
costs
Low
unit
cost
Short
waiting
tolerance
High
Visibility
Low
Production
and
Satisfaction
governed
by
consumption
time
lag
customer
perception
Standardized
Customer
skills
needed
Low
contact
skills
Received
variety
is
high
High
staff
utilization
High
unit
costs
Centralization
Low
unit
costs
2
, Block
A
2016
DMO
Summary
Akiko
van
Dal
The
five
Operations
Performance
Objectives
1. Quality
Quality
is
consistent
conformance
to
customer’s
expectations.
e.g.
Supermarket:
-‐ Goods
are
in
good
condition
-‐ The
store
is
clean
and
tidy
-‐ Décor
in
appropriate
and
attractive
-‐ Staff
are
courteous,
friendly
and
helpful
Quality
inside
the
operations:
-‐ Reduces
cost
–
Fewer
mistakes
made
by
each
process
in
operation,
the
less
time
will
be
needed
to
correct
the
mistakes
and
the
less
confusion
and
irritation
will
be
spread.
-‐ Increases
dependability
–
Error
free
products
and
services
can
lead
to
customer
satisfaction
2. Speed
Speed
means
the
elapsed
time
between
customers
requesting
products
or
services
and
them
receiving
them.
The
faster
a
customer
receives
a
product/service
the
more
likely
they
are
to
buy
it,
or
the
more
they
will
pay
for
it,
or
the
greater
benefit
they
receive.
e.g.
Supermarket:
-‐ The
time
taken
for
the
total
transaction
of
going
to
the
supermarket,
making
the
purchases
and
returning
kept
to
a
minimum
-‐ The
immediate
availability
of
goods.
Speed
inside
the
operations:
-‐ Reduces
inventories/risk
–
Fast
throughput
reduces
inventory
hence
reduces
risk
3. Dependability
Doing
things
in
time
for
customers
to
receive
their
goods
or
services
exactly
when
they
are
needed,
or
at
least
when
they
are
promised.
3
