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SUBMITTED BY: - Sandesh Suradev Prajwal Amreen Kavitha

SUBMITTED TO: - Prof. Divya Prabhu SCEM

SUBMITTED ON: - 24/10/13

During periods of lean demand. firms often employ inventory-related alternatives to address the supply-demand mismatch. In a constant workforce strategy. Process industries and highly mechanised batch-processing units fall under this category of such industries. Clearly. a firm operating on a single-shift basis will continue to work in the same fashion. Differentiate LEVEL STRATEGY from CHASE STRATEGY with appropriate examples? LEVEL STRATEGY:In the Level Strategy. In this strategy. the high costs of hiring. inventory-related alternatives are useful only when the risks of carrying inventory are low. Therefore. anticipation inventory is built natives such as backordering/shortage are made use of to match supply with demand. For instance. (Suradev) . This is especially true of highly skilled employees. The other possibility is to maintain constant working hours. an organisation having a certain number of workers may not hire new workers or lay off excess workers in response to changes in demand. inventory plays the vital role of linking one period with the other. In several organisations. Therefore. A case in point is the recent experiences of the firms operating in the information technology (IT) sector in India.up. These firms may employ a variety of automated and semi-automated set-ups for offering products and services.2). the production rate is a function of the number of working working hours. In such cases. several sectors of industry operating in made-to-stock environment and products with low technological obsolescence are suitable candidates for using this strategy. This implies that the system would employ a constant workforce and/or maintain constant working hours. and laying off may be responsible for several organisations resorting to a constant workforce strategy. A constant production rate is an appropriate method for achieving a level production strate4gy in a highly automated and mechanized set. In such an organisation. Firms such as Infosys and Wipro will resort to undertime strategy rather than laying off software engineers. they may temporarily halt fresh recruitment of employees. At most. training. level strategy is obtained only by maintaining constant working hours and a constant number of workers. As the global recession continues to affect several economies there could be a drop in the demand for IT services in the country. A constant production rate is often achieved by maintaining constant working hours.they include two-wheeler and passenger car manufacturing and petrochemical and pharmaceutical manufacturing. They will utilize the other means of addressing the supply-demand mismatch. the emphasis is on not disturbing the existing production system at all.

some workers are laid off. Strategy Level strategy APP alternatives Inventory-based alternatives (a) Build inventory (b) Backlog/backorder/shortage Capacity adjustment alternatives (a) Overtime/undertime (b) Variable number of shifts (c) Hire/lay-off workers Capacity augmentation alternatives (a) Subcontract/outsource (b) De-bottleneck Key features Inventory as the critical link between the periods. . made-tostock environments.Mahadevan. during periods of low demand. Aswathappa. Operations Management Theory and Practice. several service systems Chase strategy Source: . Several service systems and made to order project type of organisations fall under this category.CHASE STRATEGY At the other hand Chase strategy is end of the spectrum. In this method of APP. in extreme situations. additional workers are hired. Similarly. Rather. during periods of high demand. workers are permitted to do overtime. K Shridhara Bhat. made-toorder and project environments. For example. for reasons already described (and due to the cost of these alternatives). The number of working hours is increased. the supply-demand mismatch is addressed during each period by employing a variety of capacity-related alternatives. others are permitted to go on undertime. even the duration of the shift. and.1. capacity augmentation and capacity adjustment alternatives are suitable for a chase strategy. and the number of working hours is reduced by reducing the number of shifts. very little or no inventory is carried from one period to another. Production and Operations Management by K. As we can see from our discussion of APP alternatives. 2. organisations may prefer to exploit capacity adjustment alternatives before employing capacity augmentation alternatives. and more capacity is obtained by outsourcing the unmet demand. However. products with low risks of obsolescence No inventory carried from one period to another.

because the workload remains the same but only few workers work 5. 4. 2. but there is a difference between the two. If not used carefully it may lead to inflexibility. but if the people or the human resources do not work with dedication. Ability depends on quality of the people in the company. Incentives: when the employees get incentives on their work done it boosts the productivity.5). Productivity refers to the amount of goods and services produced by the use of the resources. Operations Management-William J. energy and other resources Productivity can be put in the form of a simple equation Productivity= Output/ Input It is manager’s primary responsibility to achieve the productivity which helps a single operation. It is also defined as the amount of goods and services produced by the use of the resources Productivity is an index which measures the output i. Human element: A company own better machines. labour. Production and Productivity are often used interchangeably. Production and Operations Management. 3. or an entire country. Work environment: It has an influence on productivity it covers many facilities such as lighting.K Aswathappa. Production refers to the total output. Initially productivity may increase after layoff. These productivity ratios are used in organizations for the purpose of planning work force requirements. Stevenson 2. temperature.N) Productivity is the total output relative to the inputs we get with respect to the production. materials etc. high costs etc. Layoffs: It affects productivity in both negative and positive. checking stock prices. Several factors that influences productivity they are 1.e. Technology: Technology alone won’t increase the productivity it must be used wisely and thoughtfully. watching sports scores on the internet.Define Productivity. Design of the workspace: it has a better impact on productivity For example: having tools and other work items within easy reach can positively impact on productivity 6. Standardization: Standardizing the process and procedure whenever and wherever possible to reduce variability can have a significant benefit for both productivity and quality. goods and services relatively to the inputs i. productivity cannot increase employee’s job performance depends upon the motivation and their ability. Explain the factors affecting Productivity. a department. materials. an organization. For example: playing games. 7. scheduling equipments.e. Factors affecting Productivity: Every organizations focuses on productivity. mismatched operations. plant layout. Source: 1. K Shridhara Bhat . financial analysis etc.(Kavitha.