1. To calculate multifactor productivity, we divided our inputs by total outputs. Beforehand, capital costs as well as barrel costs were low. When we calculated the multifactor productivity for 2009, the capital costs nearly doubled and the barrel costs also increased. This resulted in a minimal increase in productivity. Since the productivity percentage has decreased, some of the suggestions for Zychol Chemical Corporations would be to look for suppliers that can offer cheaper cost per barrel. Also re-examining the large increase in capital costs might provide some deeper insight into the drop of productivity. 2. The productivity of making product decreased; however, the price of the product increased thus they are increasing profit. Thus, …show more content…
Identify non-core competencies New Mexico Labor Department should have made extensive analysis that would evaluate the degree of impact that unemployment compensation information has on the operations of the entire company. This analysis should include both qualitative and quantitative measurements. Identify non-core activities that should be outsourced Before assigning Tata as the outsourcing company New Mexico Labor Department should have made sufficient analysis that would provide an objective way to evaluate outsourcing company. Factor-rating method would one of the effectives ways to do evaluation. Identify impact on existing facilities, capacity, and logistics The initial system was delivered 1 year later and over budget by $10million Establish goals and draft outsourcing agreement specifications New Mexico’s Labor Department could have presented and enforced a more precise deadline, and consequences on unfulfilled requirements, established security of information contract. Identify and select outsource provider New Mexico did not factor that Tata had never worked on an unemployment compensation system. They should have looked for a firm with a higher experience, more reliable reputation, costs, reviews and feedback from those who have used Tata and Tata’s ability to meet budget and …show more content…
One of the ways to monitor process and make sure it is done by due date is specify partial deadlines and deliverables in the legal contract and develop penalties in case these specifications are not met. Evaluate and give feedback to outsource provider Make sure outsourcing company responsive to feedback and makes changes according to the requirements of hiring company. Monitor the process through representatives of hiring company to make sure mistakes being fixed before they incur additional cost. Evaluate international political and currency risks Implement extensive research to predict possibility of economical, cultural or financial complications in the outsourcing country. Make economical/political stability one of the factors in the evaluation process as well as tariffs, customs, and insurance. Evaluate coordination needed for shipping and distribution New Mexico’s Labor Department should have considered logistics and time required to transfer all information required to Tata to start the process of implementing software for them. Along with safety of transferring the
After analyzing all these risks and criteria Id like to present some points to demonstrate why we should go for outsourcing:
However, there needs to be serious analyses done to determine the correct action to take. Financially, many outsourcing deals make sense. Furthermore, it gives businesses an opportunity to have business segments performed by professionals or in a much more efficient fashion; if the proper workforce or operational procedures are not in place. In a small business, I believe that outsourcing is a great way to have complex or strategic roles filled within an organization. Additionally, the customer base is smaller and allows the small business to still interact intimately with each customer. However, for a large business, outsourcing may create holes within the organization that makes them vulnerable. Specifically thinking about customer service roles, Vitthal Gore (2013) talks about the emergence of call center or Business Process Outsourcing (BPO). As the 21st century begins to impact the globe, many countries are being targeted for their people as the new-age workforce (Gore, 2013). Additionally, Gore notes as more people become competent in the English language, the easier it is for a business to tap into the untouched workforces of the East. While many times cheaper for companies to outsource their customer-service segments, many Americans expect a high-level of service from their provider, and as such, some of those quality controls may be lost in a total outsourcing (Gore,
Although the company did show an increased gross profit of $8,255,000 with $6,358,000 less Net Sales in 2013 versus 2012, that increase is due to the reduction in product Cost of Goods Sold by $14,613,000. Since increases in product price will negatively affect sales, one of management’s primary goals is to keep prices stable. This objective is achieved through implementation of cost cutting programs, investing in more efficient equipment, and automation of more steps in the production process.
Issue Identification: This memo presents an analysis of the employment classifications for the state employees of New Mexico, specifically an analysis of the discrepancies that have been brought up regarding a position within the Human Services Department and the Department of Labor. Currently, the position of “Employment Counselor” in the State of New Mexico holds two different classifications under the Department of Labor (DOL) and the Human Services Department (HSD). Ms. Rose Paddock, an Employment Counselor for the state of New Mexico under HSD has acquired assistance from her union, the American Federation of State, County, and Municipal Employees (AFSCME), Local #2839 as they believe that the State of New Mexico has violated the principle of a public sector organization by not grouping the identical positions in the same classification. The issue at hand is whether same job titles can be classified differently by an employer even if the job specifications and qualifications are the same; the only difference is that these state employees are placed in different departments.
Today most of the companies wants cost cutting in their business. Nowadays outsourcing helps to achieve such goals. According to the internet, (www.flatworldsolutions.com), outsourcing can be to as the allocation of specific business processes to a specialist external service provider. Outsourcing is an arrangement in which one company provide services for another company that missing or don't have a specialist in the certain area of expertise. Most of the times, an organization cannot handle all aspects of a business process internally. Additionally some processes are temporary and the organization does not intend to hire in-house professionals to perform the tasks.
List and describe at least three factors that a firm should consider when making an outsourcing decision.
Fiscal and IT staff will need to have an understanding of how to answer potential questions from staff or at the very least who the contact person would be to address the concerns. The outsourcing company will also need to provide the available training options that can be utilized during each phase of the transition.
Some providers of outsourcing may be providing the same service for several companies at the same time. Due to this, they will not be able to provide 100% of their attention to any of these companies and their quality may not be up to par. This can reflect negatively on the company as the customer calling may not be aware that the call center is being run by an outside source and they may directly relate it to the company. So unless the service being provided is truly top notch, it may prove to be less beneficial to the parent company than expected.
It is a concept that has evolved from a manufacturing perspective to a strategic perspective, which views the concept as a way for organizations to focus and be more competitive. The basic premise of outsourcing is that a specialist organization can perform a particular service more efficiently than can internal operations because a specialist organization has an inherent advantage in producing and delivering a service. Superior technology, management skills, or economies of scale may contribute to this perception. The type of sourcing relationship depends on whether a long-term or short-term need exists. To save funds used for benefits for regular employees, temporary workers are hired. In this case, the organization (outsourcer) provides all necessary resources except the workers, who are provided by the vendor. For long-term services, the vendor has full responsibility for delivering the service; the outsourcer provides only a liaison.
The fourth advantage to outsourcing is that it can help develop internal staff. As I stated in the advantage above, outsourcing projects help meet performance peaks, but it can also assist in completing projects that are nearing the end of its requirements. What this does is allow the company staff to focus on new initiatives that
The articles I choose for this paper will cover different areas on this topic. The first area covered is what steps employers and employees must take to work together to fully provide adequate job security and maintain the best labor force. I’m also going to cover what the process of termination would look like under a better “Just Cause” policy, and the reasoning behind why most employers like the current policy. The next article will compare the labor data from Montana, the only
Outsourcing has become an integral part of many organizations today. Outsourcing has its advantages and disadvantages that organizations will have to weigh to decide whether or not outsourcing is the best possible solution to their current problems and business operations. Outsourcing refers to the process of hiring external provider to operate on a business or organization function (Venture Outsource, 2012). In this case, two organizations or businesses enter a contract where there will be an exchange of services and payments. This paper will discuss the possible risks an organization may encounter in outsourcing in relation to the use of an external service
Card and Krueger flagged serious problems with the data Neumark and Wasscher used. The second and more important point, however, is that after 1995, Card and Krueger replicated their earlier work using what is called ES-202 data. ES-2 data is derived from reports filled by employers subject to unemployement compensation laws, both state and federal. Neumark and Wasscher claimed that Card and Krueger’s data wasn’t as reliable because of reporting errors inherent in telephone surveys. These new data answered the main objection raised by Neumark and Wasscher and substantially increased the information available for the
Because of the important relationship between insourcing/outsourcing and competitiveness, organizations must consider many variables when considering an insourcing/outsourcing decision. This may include a detailed examination of a firm’s competency and costs, along with quality, delivery, technology, responsiveness, and continuous improvement requirements. Because of
Outsourcing should only be implemented when a company’s core competitive advantages are not affected and then when