Essay on Disadvantages of the Low in Volume Process

Submitted By San-Rine
Words: 860
Pages: 4

The overall disadvantage for these particular types of operation process, namely low in volume and the rest being high is that transformation costs can be very high for the enterprise. In particular, the disadvantage of low volume is having high unit costs and low systemization while the advantage relies on factors such as flexibility as products are not standardized and the operations are more inclined with changes. (www.firms.edu.my/image) It can change the particular product that it likes to offer, the variety of products and services as well as the volume and flexibility in time. The disadvantage in terms of variety is the greater complexity that the operations have out of selling and distributing different merchandise. It also involves high unit costs. The disadvantage with having high variation in demand is that operation is more difficult to manage due to this unpredictability in demand. There is a need to immediately provide additional supplies or raw materials in the event of sudden increase in demand and vice versa. The advantage of having high visibility in this case is that customers will be achieving their needs more quickly in contrast with an operation of low visibility. It also offers the chance to attend to the customer request while providing the service, specifically, flower arranging or doing personalized birthday package. The feedback is easily given and any alteration can be made in place.

APPLICABLE STRATEGIES

The enterprise then worked out on the most appropriate actions to minimise the problems as well as maximise the benefits associated with its operations, specifically the four (4) Vs.
They first came with identification of what is important in terms of the 4 Vs. And upon clear identification of the right variety, volume, visibility and variation, they have tackled and performed the reduction of less important goods and services, focusing and controlling the important ones. They got rid of the products that were no longer saleable and ordered products with the right volume. They concentrated on the effort of improving the staffs’ skills in order to produce quality customer service and improved sales. Similarly, they employed the value chain analysis. In this concept, Michael Porter suggested that studying the organizational chain of activities will add more value to the product and services than the sum of further cost of these activities, consequently, giving the company marginal value for the product or service. (Saha, 2011) They have dealt with the primary and support activities that affect the organization as a whole.

There are times that transportation and raw material costs are unpredictable, therefore, they made sure to order the right volume and variety of products and established a good relationship with the suppliers. In dealing with the personnel operation itself, the management developed the staffs’ skills so as to improve the sales volume as well.

The management made sure that high visibility will work towards their advantage to enable them to get positive customer feedback. The store is kept clean and facilities well maintained as they are highly visible to customers too. They also ensure to provide personalized service wherein they can view how the flowers are arranged or the party banners and stuff are prepared so they can welcome any feedbacks and make possible changes right away. This, then, ultimately led to a more steady demand for products and services. In terms of outbound logistics, the management made a way to provide free delivery of the products to add value to it, thereby, resulting in even more satisfied customers. Improving these areas along…