Modification of supply - aggregate planning, Project Management

Modification of Supply - Aggregate Planning

Some of the methods by which we can modify the supply to match the demand are:

a.Hiring and Lay off of Employees: As this policy deals with the employees one must be careful enough while selecting this strategy it is because by hiring labours on temporary basis the hiring charges may go high or some times the workers may not available in time when needed. Or if the manager goes for lay off strategy, he going to invite the troubles from the labor unions at the same time the employee morale may go down. Sometime the company may have to face legal problems due to lay off. Before taking decisions one has to weigh both positive and negative aspects so that the decisions taken will not hurt anybody.

b.Overtime and Under Time: When the changes in supply are manager and temporary overtime and under time are most commonly used. By adopting overtime, we increase the production but overtime costs are to be added to the normal costs. By under time the production may be reduced and under time costs are to be considered here.

c.Use of Part time or Temporary Labor: When the manager has to increase the supply he has to increase the capacity. By employing the temporary or part time labor the manager can do this depending on the type of labor the cost may be slightly higher or lower than the normal labor cost.

d.Subcontracting: In case the another company has some spare capacity and is prepared to hire the capacity the manager can give a part of production as subcontract to that firm. The parent company all the time can send its workers to have a close control over the quality of the product produced. Depending on the hire charges the costs of products produced under subcontracting may slightly the normal costs.

Posted Date: 1/30/2013 7:41:53 AM | Location : United States







Related Discussions:- Modification of supply - aggregate planning, Assignment Help, Ask Question on Modification of supply - aggregate planning, Get Answer, Expert's Help, Modification of supply - aggregate planning Discussions

Write discussion on Modification of supply - aggregate planning
Your posts are moderated
Related Questions

What is Project Portfolio Matrix? Choose three Projects A, Project B, Project C from any organization or where you are currently working as a Functional Manager. 1) Develop Project

Question: a) Why are GSD projects more difficult to manage than single site collocated projects? b) Which agile practices would be easier to adopt, and which would be challe


Question: (a) Any project has a beginning and an end; without a formal closure process, project teams can fail to recognize the end and this can drag the project into unnecessa

Question: (a) Earned Value Management is a systematic approach to the integration and measurement of cost, schedule, and technical accomplishments in a project. List the benef

Continuous improvement: The library should set goals for continuous improvement. To develop this a focus  on training,  education, communication, recognition  of achievements

1. Which product /service you propose to work on this quarter? From which company? Which product category does it belong to? Describe the product/service you will market briefly.

Creating a Risk Management Plan  The main aim of risk management is to develop a well-structured approach to deal with any kind of uncertainty, which create threats in the proj

Question : (a) Project communication plan involves the generation and distribution of project documentation among stakeholders and is considered as the driver of the project co