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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
A payoff a. is always measured in profit. b. is always measured in cost. c. exists for each pair of decision alternative and state of nature. d. exists for each state of nature.
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