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Examples of Variations - Operations Function
Volume
Low: Small quantities such as designer clothes; cleaning services with high unit costs; highly skilled labour; single one-off projects
High: Mass production of large quantities such as consumer goods, cars, white products and some foods with low unit costs; capital intensive; use of semi skilled labour .
Variety
Low: Standardised products and processes: off the peg clothes; limited range of size of shirts; shoes; McDonalds; low unit costs
High: Flexible, complex allows customisation, high unit costs; can accommodate customers Specification
Customer contact
Low: Department store; supermarket; financial advice; university staff
High: Doctor; dentist; surgeon; financial services; personal tutors
Demand
Low: First class travel; personal physicians; one-off cars; designer clothes
High: Economy class travel; car servicing; car insurance; window cleaning
Forecasts for groups of items tend to be less accurate than forecasts for individual items because forecasts for individual items don't include as many influencing factors.
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