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Operations Management Workforce Planning - Essay Example

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Summary
Workforce planning is essential in the success of any business endeavor. In many cases, the workforce comprises a big portion of the operating expense of the company. Needless to say, determining the proper workforce level can make or break a company. This is the very reason why most companies have invested so much in institutionalizing recruitment systems that will enable them to get the most suitable worker required for a given job, establishing training programs that will not only enhance the skills of their personnel but will also prepare them for bigger responsibilities in the company and of course, reviewing and updating of employee compensation package.
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Operations Management Workforce Planning
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Operations Management Workforce Planning

This again will adversely affect the bottom line of the company.
At a glance, it might appear very simple and rudimental to determine the actual manning complement for a certain operation however, a deeper scrutiny of the process will reveal the complexities involved such as the unpredictable fluctuation of demand vis--vis a fixed operating capacity comprised.
The proponent used a simple accounting approach to determine and consolidate the cost component of each staffing plan. From here, the proponent tabulated the different data given in the case problem afterwhich, he proceeds in summing up the total cost per plan and simply compares each cost to know which alternative yields the least cost. Further to the quantitative analysis, which is actually just a comparison of the costs, the proponent attempts to account for the other effects of the different plans like employee morale, customer service and operations.
The case problem requires the proponent to analyze three Workforce Planning model based on a given set of forecasted weekly demand, production rate per product and various costs like regular wage, overtime cost, hiring and firing cost. The problem further requires the proponent to evaluate each of these options based on other aspects of the business such as employee morale, operations and customer service. The setting of the problem is in Newmart International Manufacturing where three products are two be produced without incidents of run outs or back orders.




IV. THE WORKFORCE PLANNING MODELS

As mentioned in the case problem, the proposed Workforce Models to address the demand of the coming quarter are: 1) Level Workforce where the proponent simply hires the additional manpower required and keeps them all throughout the succeeding weeks; 2) Original Full-time Workforce plus over time does not engage in firing or hiring employees rather and 3) Adjusting the workforce depending on the requirement per week where the company is engaged in a weekly hiring and firing of employees.







V. ANALYSIS AND RECOMMENDATION

Based on the tabulation shown below, it is clear that among the three options, the original 75 fulltime workers of the company are still sufficient in meeting with the forecasted demands. It is also inferred that employee morale and other organizational elements have been adversely affected by frequent hiring and firing. The proponent therefore suggests applying option B to address the requirement of the company. This option will not only yield the lowest cost, i.e., US$ 609,588 there is but more importantly, it will maintain, if not enhance employee morale, customer service and the overall performance of the business operation.













Bibliography:

Heizer, Jay and Render, Render. "Production and Operations Management".4th ... Read More
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