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Production Reports for 10% Cut on Work Force and Outsource Part of the Business to a Supplier in China

Essay by   •  December 7, 2011  •  Case Study  •  1,456 Words (6 Pages)  •  963 Views

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PRODUCTION REPORTS FOR 10% CUT ON WORK FORCE AND OUTSOURCE PART OF THE BUSINESS TO A SUPPLIER IN CHINA.

A manufacturing company in the UK cut 10% workforce due to the recession and outsource part of the business to a supplier in China.

Motivation of staff will go down which can result in poor quality as staff will not do their best because they do not know if they going to be laid off. This can affect team working. There will be low motivation and morale because of downsizing and redundancy. According to Barron (1991) in the Sarah Hollyforde and Steve Whiddettbook,'The Motivation Handbook, it is the internal process that activate, guide and maintain behaviour especially goal; directed behaviour. Motivation can be difficult to explain because it cannot be seen and since it comes from the individual it differs. People cannot be motivated if there is no reward or satisfaction.

There are so many motivational theories that answer questions as to why people make certain choices or what makes someone persist at one activity yet quickly give up on another. In the Maslow's Need Hierarchy, it is concern with the needs and the relative strength of people. In the theory, Biological and Physiological needs might be affected slightly as people are made redundant they might not be able to provide all these needs for their family even though the government might provide some of them.

This could bring conflict in the workplace based on whom to lay off, no matter the decisions of management some of the staff will be unfairly treated. The Company might cut workforce for staff employed for less than 2 years.

Redundancy pay and compensation as people will struggle to find job in a recession. These are the things to be done if people are made redundant. How do we manage redundancy? In addition, what support put in place for laid off staff? And there is a high chance of industry action by the union which will affect production and put the company in danger.

OUT SOURCING.

Consideration should be given to the life cycle of the project or investment as it includes Cost, Quality and Time.

Cost of supervision to make sure goods are up to standard compared to production in the UK. There should be performance management, which will include attitude, behaviour and performance. The use of KPI (Key Performance Indicators).There should be accountability, flexibility and social satisfaction of members. As we outsource part of the business, we loose great control in KPI.

Advantages of Outsourcing.

Outsourcing can reduce labour cost but measures has to be put in place for fair trade, human rights ,health and safety and not abuse labour force which is common with company's getting workforce abroad.

Demographical change can bring new ways of working, its widening talent pool that enhance innovation, creativity.

It gives a better public image, attract investors and clients e.g. Chinese people and neighbouring cities will become aware of the UK products as some of them are manufactured in China, boosting production and Sales.

Disadvantages.

There is the likelihood of inconsistency in methods and system as production is based in different geographical zones, which could result in poor quality compared with the quality in UK. Working in different time zones, different cultures.

There could be duplicate of efforts.

Communication problems as different languages are used. Language barrier.

Conflict can arise and lack of co ordination.

During the past decades the manufacturing technology is growing fast in china therefore all aspects technology and workforce standard exist in china which can he whelp for the company to produce product at a cheaper price than any where else in the world Chinese technology and workers one of the most improved and available.

For example, if your company has spotted a potential market for a product, then they should take advantage of the opportunity that they have identified in a quicker time and allow them to deliver quality at the best price and allowing them to focus on their core competencies and product development if an opportunity exist.

Gantt Chart

Benefits of a Gantt Chart

There are many benefits received when creating a Gantt Chart when planning a project. One of the biggest benefits of a Gantt chart is the tool's ability to boil down multiple tasks and timelines into a single document. Stakeholders throughout an organization

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