CIMA E1 Syllabus E1. Operations management - The Four V's Of Operations - Notes ^{2 / 21}

The Four Vs of operations

In understanding the nature of operations of a business, the four V's of operations management are used.

1. Volume

   The volume of inputs and outputs. 

   The higher the volume, the increased need for capital intensive standardisation.

2. Variety

   Whether the operation handles a number of different inputs or produces a range of different outputs.

   More number of inputs and outputs mean more complex operations.

3. Variation in demand

   Demand for some operations may be seasonal or regular peaks and dips in demand may be experienced.

   The higher the variation in demand, the more difficult it will be to manage operations.

4. Visibility

   The degree to which business operations are visible to the customer.