Application of Workforce Management - Essay Example

?#613779 Operations Management Application of Workforce Management Workforce management is the art and science of having the right number of workers available at the right time to deliver the desired output (Sharp, 2002). It aims to achieve optimum production by managing manpower and the terms and conditions of employment. One such approach is known as “core-ring strategy” where the workforce is reduced to a small number of full-time employees to maintain the core business operations. Surrounding this core group is an outer ring of non-standard workers who are hired only when necessary and discharged when not needed (Levine, 2002). An earlier model of workforce management is the Japanese concept of lean operations which has replaced the old method of mass production. Lean philosophy aims for elimination of waste to achieve faster, more dependable, high quality products and services at low costs. The system requires job rotation, job enrichment, team-based problem solving and multi-skilling (Tariq, 2005). 2. Quality of Products and Services – a Critical Issue Whereas in the past, firms employed mass production to achieve economies of scale and generate profit without regard to quality, in the future, quality will be the distinctive character that will differentiate the leader from the rest (Pride and Ferrell, 2009). The customer of the future would be demanding for quality which is one great responsibility the manager of the future has to take upon himself. Such personalized quality can happen only by engaging in mass customization using sophisticated product designs and flexible production processes and support systems (Stevenson in Tariq, 2005). To achieve this at a reasonable margin would require the proper coordination of these company-based systems in place, from the supply chain to product design to the production processes to customer service. Future managers will have to ensure that these systems generate quality levels respectively such that the final output is a total differentiation from competition. 3. Consequences of Under-Utilization and Over-Stretching of Capacity The success of a restaurant operation can be gauged by its ability to operate at full capacity. One approach to managing that capacity is to manipulate it so that it matches the changing demands placed on it (Wild, 2003). A restaurant’s capacity is measured by the number of tables it operates. If there are too many tables provided yet are not filled because the demand is less, it results in under-utilisation (Wild, 2003). Unfilled tables mean that some space is unutilized yet being paid for in rent, unrecovered costs of acquisition of service facility, energy wasted, under-utilised service of assigned personnel, and therefore eventual loss of revenues. If insufficient capacity is provided, meaning there are less tables available than the present number of customers, it would result in some customers waiting unreasonably or being turned away and going elsewhere and would mean loss of income opportunities and diminished business image. 4. Operating for Competitive Edge Operations management is an activity that converts resources into outputs, and since outputs relate to customers, its aim is to ultimately satisfy the customer (Wild, 2003). Operations management can therefore be seen as a strategy for achieving the corporate goal of competitive leadership. Since operations management involves the use of resources and converting these into meaningful outputs that should lead to customer satisfaction, it plays a crucial role in every step of the process, from the sourcing of the raw materials, the final configuration and production of the product, the distribution of the finished product and the consequent after-sales service. Each of these steps can contribute in many different ways towards developing a finished product that will truly cater to the demands of the customers: lesser acquisition costs from the supply chain, best final design at least production cost, competitive pricing and efficient methods of delivery and efficient after-sales service (Wild, 2003). 5. Corporate Social Responsibility Corporate social responsibility has assumed a totally different meaning in the new world order when more firms take responsibility for the impact of their operations on people and communities as well as the natural environment. It moves away from the traditional concept of business as mainly for profit and assumes instead a certain obligation and duty of protection and care for its stakeholders. Some of the ways a company can pursue its corporate social responsibility are by way of its reducing its carbon footprints in response to the problem of climate change, not creating and distributing products which are intrinsically harmful both to users and the environment, being true to the public it serves via truthful advertising, paying its taxes in full, providing equal employment opportunities to all, shunning discrimination at work, and sharing its corporate blessings among the marginalised in society (Kotler and Lee, 2005). 6. The Four V’s in Process Design The four V’s of process design refer to volume, variety, demand variation and visibility (Berger, 2011). These are the dimensions whose implications are being watched closely in creating products or services to be distributed. These dimensions dictate the typology of operations in the design and production of products and services. Paul in Chaturvedi (2011) observes that if volume is low, it means repeatability is low, members perform more jobs, there is less systemization and therefore the unit cost is high. If volume is high, there is high repeatability, specialisation and systemisation are necessary, design and production are capital intensive, and therefore, unit cost is low. If variety, demand variation and visibility are low, the implication is towards a low unit cost; otherwise, the implication is high unit cost. Berger (2011) cites high volume, low variety, low demand variety and low customer touch-points as helping keep processing costs to the minimum. 7. Operations Management and IKEA Pycraft et al (2007) open their book on Effective Operations Management with an introduction of IKEA as a “furniture retailer with a difference,” with more than a hundred giant stores operating successfully in over 15 countries and cite what IKEA has done with its operations to merit such a standing. IKEA has established a new model in operations management that characteristically provides a smooth customer flow, clean and well-designed work environments, enough goods to satisfy customer demands, sufficient number of personnel to serve customers, an appropriate quality service, and a continuous flow of creative ideas to further improve its already satisfactory and impressive operations performance (Pycraft et al, 2007). Mention is also made of their very tight control on costs and their extreme concern for their customers. Customers everywhere regard their products as representing outstanding value for money which is an indication of the superior quality of their after sales service. 8. The Importance of Supply Chain Management for Competitiveness Business firms traditionally tended to look at suppliers as potential competitors because of the role they played as material providers. This posture has reduced the firms’ ability to respond quickly to market changes and customer demands. Increasing competition and globalization, however, have forced organizations to look at suppliers being partners as a matter of strategy. Managing the supply chain has thus become a means of improving competitiveness (Khosroupour, 2002). As companies become aware of the need to interact with the customer, never has the need for managing the supply chain equally more pressing. Within that framework, customer interaction stays grounded on the principles of customer satisfaction, collaboration and partnership and continual improvement and learning (Khosroupour, 2002). The factors of quality and pricing could enhance customer satisfaction through continual improvement but would only validate via a timely delivery which is a matter of coordination and collaboration among suppliers. 30 - References: Berger, A. (2011). Operations Management. Germany: Verlag Chaturvedi, K. (2011). 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