Operational Characteristic Visibility - Essay Example

Business Operational Characteristic Visibility Operational Characteristic Visibility When a business functions perform all the activities of planning, organizing, leading and controlling of those resources which are required to produce the goods and services within the organization,in order to createthe business value is known as Operational Management. Operational management is important for the organization because it increases the organization’s revenue, reduces the cost, gives opportunities in order to make innovations in the business, reduces the amount of investment and is much profitable to the organization.

For an example, IKEA which is a retailer store of furniture. This store started to work in 1950s, Sweden and now it is the most thriving furniture retailer’s. It has total 276 stores in 36 countries.Its owner has built the store in a very special & innovative way. Therefore its per-unit cost is high as compared to others in the market.Characteristics of operational management includes four V’s.; volume, variety, variation & visibility. Here we’ll discuss the Visibility characteristic, which involves High & Low visibility.

Low visibility operations –in this operation to much timing process is involved between the production and the consumption. That is why the output from the transformation is highly standardized. Employees don’t have the required skills and they move towards theminimum number of tasks during the transformation process. Therefore, low visibility leads the business to low cost unit High visibility operations –on the other hand in high visibility time is effectively consumed. Quality of service is based on the service perception.

Employees hold much skill to work & there is a high contact among them. The degree of the variety of product is highly considered, keeping the demands of the customers in mind. Services aren’t standardized that’s why employees take their customers seriously. Therefore, per-unit cost is very high. (Business management a Functional focus, 2012) Bibliography Business management a Functional focus. (2012).