JIT workers and Sales Impact

A Wall Street Journal article (July 27, 2011) describes the 2009 sales drop of 4.5 % and employment drop of 8.3 % and a ten year growth of 19 % while private sector jobs dropped 2 million.  One concept described is that of treatment of workers as variable cost because they can be hired “just in time”, due to the flexible labor market today.  In addition, the new workers added are often in foreign locations.  What is the point at which the potentially increased productivity of full time workers trump the flexibility of JIT employees ? Are there industries where a flexible labor approach, synched with demand, may increase costs over the long run ? How do we maintain the benefit of “process learning” in the face of an evolving employee pool ?

 

Advertisements

About aviyer2010

Professor
This entry was posted in Operations Management, Supply Chain Issues and tagged , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s