AD AND PRODUCT CRITICISM

VIkas Kumar Tyagi

4 VS OF OPERATIONS
MANAGEMENT
 VOLUME
Churchill by Graham Sutherland

 It refers to how much production of a specific product is required to satisfy

its overall demand in the market.
 This refers to the physical number of units or items produced.
 A high volume manufacturing service example would be a fast-food joint like
Domino’s Pizza. (More standardization, lesser per unit cost)
 Alternatively, a low-volume example might be an artist who produces specially
made commissions and pieces of artwork. (High time, customization)
 ?? Give example of low volume but high standardization and high volume but
high cost per unit.
 VARIETY

 It relates to the variety of goods/services to be produced and sold to

customers. This V is all about diversity.
 Eg. HUL sells high variety of products such as Lux, Lifebuoy, Surf
Excel, Rin, Wheel, Glow & Lovely, Pond’s, Vaseline, Clinic Plus,
Sunsilk, Pepsodent, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality
Wall’s
 ?? Give example of low variety firm in FMCG??
 VARIATION

 It refers to how much the level of demand and kind of demand

changes over time due to external factors.
 One example would be prefabricated homes and customized homes.
(one will take more cost and time than the second)
 Emerging technologies helps in better prediction of variation, also fashion.
 ??Give one example of product where variation is very high, and
one example where variation is very low??
 VISIBILITY

 This dimension refers to a customers ability to see, track their

experience or order through the operations process.
 A high visibility dimension includes courier companies where you can track
your package online or a retail store where you pick up the goods and purchase
them over the counter.
 A low visibility dimension could be a web design company who takes your
order and advises your new website will be ready in 4 – 8 weeks.
 Customers need to experience the company’s products/services. Service industries
have a high level of visibility compared to manufacturing industries.
 ?? Increase in visibility increases the satisfaction??? (Slide Change)
 VISIBILITY

 This dimension refers to a customers ability to see, track their

experience or order through the operations process.
 A high visibility dimension includes courier companies where you can track
your package online or a retail store where you pick up the goods and purchase
them over the counter.
 A low visibility dimension could be a web design company who takes your
order and advises your new website will be ready in 4 – 8 weeks.
 Customers need to experience the company’s products/services. Service industries
have a high level of visibility compared to manufacturing industries.
 ?? Increase in visibility increases the satisfaction??? (Contradict)
 VOLUME

 High Volume-
 High repeatability
 Capital intensive
 Low Unit cost
 Fast food restaurant
 Low volume-
 Few specialist items and not lot of same things
 Gourmet restaurant
 VARIETY

 High variety-
 Flexibility

 Low variety
 Routine, regular and standardize production
 Low unit cost
 VARIATION

 High variation
 Low predictability of demand
 Ice-cream producer

 Low variation
 Stable routine and predictable demand
 Resources can be more effectively utilized to meet the customer needs.
 Aluminum producer
 VISIBILITY

 High visibility
 Counselling

 Low visibility
 Financial consultancy
VIkas Kumar Tyagi
Major source used for presentation:
Slack, N., Chambers, S., & Johnston, R. (2007). Operations Management, fifth edition, Pearson (UK).
PROFESSR DAVID GARVIN’S FIVE APPROACHES’ TO
QUALITY

VIkas Kumar Tyagi

 Transcendent approach

 Manufacturing-based approach

 User-based approach

 Product-based approach

 Value-based approach
VIkas Kumar Tyagi
QUALITY CHARACTERISTICS OF A CAR

VIkas Kumar Tyagi

Functionality Speed
Appearance Aesthetics
Reliability Mean time to failure
Durability Useful life
Recovery Ease of repair
Contact Knowledge and courtesy of sales staff
QUALITY CHARACTERISTICS FOR AN ONLINE
GROCERY SHOPPING SERVICE

VIkas Kumar Tyagi

VIkas Kumar Tyagi
VIkas Kumar Tyagi
VIkas Kumar Tyagi
VIkas Kumar Tyagi
VIkas Kumar Tyagi
VIkas Kumar Tyagi
VIkas Kumar Tyagi
 VARIABLES AND ATTRIBUTES

VIkas Kumar Tyagi

 The measures used by operations to describe quality characteristics are of two
types: variables and attributes.
SQC
STATISTICAL QUALITY CONTROL

VIkas Kumar Tyagi

STATISTICAL PROCESS CONTROL IS AN ANALYTICAL DECISION MAKING TOOL WHICH
ALLOWS YOU TO SEE WHEN A PROCESS IS WORKING CORRECTLY AND WHEN IT IS
NOT. VARIATION IS PRESENT IN ANY PROCESS, DECIDING WHEN THE VARIATION IS
NATURAL AND WHEN IT NEEDS CORRECTION IS THE KEY TO QUALITY CONTROL.
 VIkas Kumar Tyagi
CONTROL LIMITS
Variations can be measured through Control charts or histograms

VIkas Kumar Tyagi

ZONES IN CONTROL CHARTS

VIkas Kumar Tyagi

VIkas Kumar Tyagi
VARIABLE DATA CHARTS – INDIVIDUAL,
AVERAGE AND RANGE CHARTS

VIkas Kumar Tyagi

INDIVIDUAL OR X- AVERAGE CHARTS R-CHART
CHART OR X-BAR CHART

Individual Measurements Averages of Subgroups Range

VIkas Kumar Tyagi

COMBINATION CHARTS

VIkas Kumar Tyagi

Individual And Range Charts – IR Charts
ATTRIBUTE DATA CHARTS

VIkas Kumar Tyagi

 ATTRIBUTE CHARTS
DEFECTS AND REJECTS CHARTS

VIkas Kumar Tyagi

Defects Charts count the number of defects within the inspection
unit.
Rejects Charts count the number of rejected units in a subgroup.
Defects Charts

VIkas Kumar Tyagi

 The two defects charts are the c chart and the u chart. The c refers to count of
defects in a subgroup of constant size.
 The u is a per unit count within a variable size subgroup.
Rejects Charts
 The two types of Rejects charts are the p chart and the np chart.

VIkas Kumar Tyagi

 Fraction The p chart measures the fraction of rejected items in the subgroup of
items and np chart measures the number of rejected items in a subgroup of items.
VIkas Kumar Tyagi
VIkas Kumar Tyagi
Thank You