Speed
Meaning of speed is different for different organization. The basic definition is time passes between a customer asking for a product or service and getting it in a satisfactory manner. Speed is a major parameter for measuring a company’s performance. It reduces the need to manage transformed resources as they pass through the operation and therefore reduces inventory, minimize risk saving cost.
Dependability
This factor explains the customer's dependability on the company. It prevents lateness causing disruption and wasted time and effort gives stability and therefore reduces cost.
IKEA Not a major factor in case of IKEA but like the opening hours is very important for IKEA, constant availability of parking, or buy car roof rack
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IKEA
IKEA has different flexibility; service Flexibility for IKEA is the introduction of new designs and products, Mix flexibility of IKEA that it has a wide range available.
Volume flexibility is the ability to adjust the number of customers served.
Delivery flexibility the ability to obtain out-of-stock items (very occasionally)
ACME Product and service flexibility
In case of ACME is the introduction of new design or promotions. Mix flexibility that it has wide range of goods stocked in respect of its industry. Volume flexibility is the ability to adjust the volume of production. Delivery flexibility is the ability to reschedule manufacturing priorities.
Cost
The cost of producing products and services is obviously influenced by many factors such as input costs, but two important sets are The 4 V’s: volume, variety, variation, visibility and the internal performance of the operation in terms of quality, speed, dependability, flexibility.
Mr. Abhishek Gokhale, London SAM (ST0006096)
Operations differ in four important aspects:
1Thevolume of their
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The fact that IKEA can also be found in other
Countries allow for economies of scale and hence, IKEA is able to bring costs down with its high-volume production.
• Tasks are repeated frequently. It makes sense to specialize:
•One specialist person is assigned to one job.
This leads to the systemization of the work where the standard procedures are set down in a manual, with instruction on how each part of the job should be carried out.
•It gives low unit cost; the fixed costs of the operation are spread over a large number of products or services.
LOW VOLUME: ACME WHISTLES
• The degree of repetition will be low.
•The number of staff will be low (possibly only one person).
• Individual staff is likely to perform a wider range of tasks. It is less open tosystemization.
• Less feasible to invest in specialized equipment
• For all of these reasons, the cost per unit product/service is Likely to be higher (even if the price is comparable) The Variety Dimension High-Variety: