“The important thing about outsourcing or global sourcing is that it becomes a very powerful tool to leverage talent, improve productivity and reduce work cycles,” Azim Premji. This article will discuss the benefits and reasons for a company to outsource, backsource, and offshore a business process or service. It will also briefly discuss disadvantages of each category and outline how to avoid and mitigate failures. Outsourcing is a business practice that could make or break the company. It refers to the way in which businesses delegate their services or processes to an outside company.
As the chair of the board’s personnel committee I think that all of the above challenges can be applied on READ adopting FWA program. However, one of the most important challenges may be the industry READ is operating in. As Daniel said, ‘ This type of flexibility in a small organization such as READ, Inc. will lead to poor or less service to customers and more disruptions to operations.’ Since the full-time staff conducts most of the programs, and in nature the industry isn’t really flexible, Daniels concerns may be relevant and display a very important issue that shouldn’t be ignored. Another challenge that we might be facing is the resistance of employees to the adoption of FWA program that was obvious when Daniels mentioned her concerns of any loss in productivity or disruptions in operations and strongly opposed this new program. This might be a great issue; for we need to take into consideration that Daniels is the organization’s executive director (ED) and the fact that she has been with READ, Inc. for more than fifteen years
The main things that are taken into consideration here is finding out the necessary needs and the wants of the stakeholders and coming up with a specific plan. Scope Management This mainly refers in achieving the specifics needs and the goals in relation to the particular activities that take place in the business. This is all that has to be included in the project that is being developed where on one hand the necessary work that the project has to complete is considered. This is simply figuring out what needs to be included if there are activities that are not included. Time Management Time is the most crucial factor when taking any project or an activity considered.
Each unit has their own job description with some description depending on each other. This means that when a single unit fails to communicate effectively with the other, the whole production process would fail. From the recommendation required, the management should identify specific people and form a team that will interact with each other as they perform their functions. The significant functional areas that would require the input of the team members include the finance functional areas and operations functional area. The choice of the above functional areas is significant to ensure that the firm succeeds in the given core activities.
Forced ranking: In this model, the project managers get together and force the projects in to a priority order. The projects are then added to the business portfolio in a ranked order till the resources available for the time frame are exhausted. All the projects that do not make it in the ranked priority list are then abandoned or postponed. There could be a few flaws in this process like bias, human errors and also politics in the selection of projects that make the priority list. High and low priority projects can be segregated with more ease by people who have some depth of project knowledge with respect to the benefits.
Supply chain activities transform resources, raw materials and components into finished products and services that are delivered to the customers. According to Chapman (2011) supply chain involves an organization outsourcing a number of activities involving operations and support services that are deemed not core to the business to an outside company. These ranges from transportation services, cleaning services, communications and manufacturing and might occur in different parts of the world. Experience has shown that managing the supply chain in an increasingly global competitive environment has proven to be quiet challenging due to uncertainties in supply and demand, globalization of the market place, rapid changes in technology to name but a few. These have resulted in higher exposure of risk in the supply chain
Article 1: Operations strategy: a firm boundary-based perspective Operations strategy is concerned less with individual processes and more with the total transformation process that is the whole business. It is concerned with how the competitive environment is changing and what the operation has to do in order to meet current and future challenges. It is also concerned with the long-term development of its operations resources and processes so that they can provide the basis for a sustainable advantage (Slack & Lewis, 2011). If a business does not fully appreciate the strategic impact that effective operations and process management can have it is missing an opportunity. Perhaps more significantly, many of the businesses that seem to be
Kill overhead- Extra expenses can be cut down by following a process, implementing an efficient way of operation, the best deal done with the supplier so as to avoid wastage of time and money, this helps to lessen overhead. 2. Invent revenue- the human resource works to find the source of revenue, this makes the Human Resource team a profit center instead of being a cost center, like if the firm has extra building space, inventory or capacity to work then that could be sold or given on lease. This amount generated will help in meeting the expenses of the company, thus HR becomes a profit center even in case it produces no loss and profit for the firm. So an HR that manages the cost manages is not a cost center.
The largest problem is the cost of this process, which firstly involves the cost of computer equipment, software cost, personnel training and any changes in work processes. However these are all one off costs and I believe the benefits far outweigh the negatives in this case. In businesses where such information systems have been introduced into use have shown that this one off investment pays off by reducing other costs and increases quality of service from the use of information systems in the
Insourcing is when a company does all the work within their company. However outsourcing is the opposite, and is when a company will send the work out to a third party. Some situations companies may resort to outsourcing because they are able to find areas to outsource with lower labour costs. Another reason is that there isn't enough employees that are skilled in a certain area of a business process. Also, the company may need to put their focus on other goals for the