Aggregate planning involves having several production strategies which often are
ID: 458836 • Letter: A
Question
Aggregate planning involves having several production strategies which often are determined through trial and error. Staffing is one such area that can prove particularly difficult, especially with service firms where the cost of labor must be controlled. Staffing issues deal with changes to the size of the work force through hiring or layoffs, the use of part time employees, giving some employees overtime work while idling others, and outsourcing or subcontracting work loads. Each issue has its advantages and disadvantages.
Examine your own place of work or industry. Use your own personal observation and experience or use your knowledge gained through speaking with a manager or someone in the company who deals with production and staffing. If you do not work, you can use the workplace/industry of a friend or relative.
Please discuss the following information in your initial post:
What are the staffing issues that arise throughout the year?
What production needs must be met? How are high-demand/low-demand times managed?
How are unexpected demands dealt with if any exist? What is the firm’s position on the staffing issues identified above?
For example, does the firm use part time, overtime, idling workers, and/or subcontracting?
How does the firm control the cost of labor?
Imagine you are the operations manager for this firm, after reviewing these practices, what recommendations would you suggest to improve the efficiency of the operation?
Explanation / Answer
What are the staffing issues that arise throughout the year?
Answer :
In organizations staffing issues are very critical . Throughout the year this problem arises.As there is always gap between Demand & Supply .Also in today's business scenario customers are not ready to wait , they prefer to other competitor .In such cases staffing is important.
Following are the issues.
1) What will be the no of permanent staff.
2) How much contracted staff needs to be hired
3) Subcontracting / outsourcing are the best options for minimizing the load of staffing
4) What will be the estimate of overtime calculation
etc
----------------------------------------------------------------------------------------------------------------------------------------------------------------------
What production needs must be met? How are high-demand/low-demand times managed?
Answer :
For the accomplishment of production Resources are required,.Following are the resources.
1) Man
2) Machine
3) Materials etc
If these resources are available on time the production will be completed.
High demand can be managed through making available the resources immediately.
Eg. Man : On contract basis , over time basis ,
Machines : Machines can be hired on rent for high demand
Material : Material can be immediately purchased
For high demand , subcontracting or outsourcing is also best option.
For Low demand , the contracted staff , daily wages staff can be given Lay off.All the subcontracting & outsourcing work can be stopped
----------------------------------------------------------------------------------------------------------------------------------------------------------------------
How are unexpected demands dealt with if any exist? What is the firm’s position on the staffing issues identified above?
Answer :
As mentioned above the unexpected demand can be adjusted by varying the combination of resource management.
High demand can be managed through making available the resources immediately.
Eg. Man : On contract basis , over time basis ,
Machines : Machines can be hired on rent for high demand
Materials : Material can be immediately purchased
For high demand , subcontracting or outsourcing is also best option.
----------------------------------------------------------------------------------------------------------------------------------------------------------------------
For example, does the firm use part time, overtime, idling workers, and/or subcontracting?
Answer :
For unexpected demand which is high ,Organization may use the best use of above factors.
Suppose if organisations have idle workers , part time workers then they can go with these all.If demand is manageable within task force then by giving the overtime demand can be managed.
But if still demand is not manageable , then there is only one option to give the work for subcontracting.
----------------------------------------------------------------------------------------------------------------------------------------------------------------------
How does the firm control the cost of labor?
Answer :
Firm control the cost of labor in following ways.
1) By Automation
2) By reducing the waste in the process
3) By Subcontracting at lower rate
etc
----------------------------------------------------------------------------------------------------------------------------------------------------------------------
Imagine you are the operations manager for this firm, after reviewing these practices, what recommendations would you suggest to improve the efficiency of the operation?
Answer :
Following are the suggestions for improvement in efficiency of the operations.
1) Reduce the waste in the process
2) Under stand the demand pattern for a whole period
3) Use perfect combination of Resource Management
4) Use the decision where ever required for part time, overtime, idling workers, and/or subcontracting
5) Innovate new techniques for improvement in efficiency.
----------------------------------------------------------------------------------------------------------------------------------------------------------------------