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Systems Operation Management:Part timers/Subcontractors

â?¢ Discuss the advantages and disadvantages of using part-time workers,
subcontracting work, and building up inventory as strategies for meeting
demand.

â?¢ Why are people willing to pay the premium price for a Starbuck's coffee?

â?¢ What are some other examples of how lead times, cost, quality, and/or
on-demand deliveries are used as supplier evaluative tools within an
organization?

â?¢ Are contract employees more of an advantage or disadvantage to an
organization? Why or why not?

Solution Preview

â?¢ Discuss the advantages and disadvantages of using part-time workers, 
 subcontracting work, and building up inventory as strategies for meeting 
 demand.

A big advantage to using part time employees is the ability to schedule them according to the company's needs and work flow compared to full time employees, who get paid if there is work to do or not. In addition, often part time employees do not qualify for benefits based on the hours they work per week or the company policy. This is a savings for the company. Typically, part timers are paid less than full time workers. Other benefits include the ability to try employees out, and then move them to full time; availability of extra workers at peak times, ability to have employees do more tedious tasks that have been difficult to staff with a full time employee, and greater flexibility of hours. Disadvantages of hiring part-time workers might include less reliable workers. Since they are not full time, career oriented sometimes part timers have less vested in being on time, and present at required times. In addition, they typically go to school, have other jobs or commitments. Part timers are more likely to be inexperienced, and may pose increased risk. Again, the nature of the part time market is of a generally less employable worker, either due to other commitments or because of lack of better options. Here is a good link with more information: http://www.referenceforbusiness.com/small/Op-Qu/Part-Time-Employees.html

Subcontractors can be an even ...

Solution Summary

This solution discusses the advantages and disadvantages of using part-time workers, subcontracting work, and building up inventory as strategies for meeting demand. It also describes why people are willing to pay a premium price for Starbuck's coffee. It discusses what are some other examples of how lead times, cost, quality, and on demand deliveries are used as supplier evaluative tools. And, it discusses if contract employees are more of an advantage or disadvantage to organizations and why or why not. It includes links and examples.

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