Session 3: Employee Turnover

and It’s Impact on Learning

Rohit Kapoor
 Employee Turnover and It’s Effect on
Learning
• Employees working in operations
– Accumulates experience
• And have the potential to improve the performance
– Implies
» Employee learns Company learns

• Now the questions is

– What happens to the experience when employees
leave the company?
 Context
• Consider 2 companies: A & B
– Both installing highly efficient energy systems
• Assume that both the companies
– Have 100 employees
– And it takes an employee with no experience
• C(1) = 500 hours to complete an installation
– As the employee accumulates experience
• This time gets reduced following a rate of 90%
– Company A has relatively stable workforce
• but Company B suffers from significant number of employees leaving every year
– Each company is able to hire new employees
• so as to keep their overall workforce constant at 100
– These new employees start their job with no experience
» With respect to the system installation
» Learning curve starts anew
 Employee Turnover
• ?
• Little’s Law logic
– Average Tenure?
• Assuming Company A has an employee turnover
of 20%
– And Company B has an employee turnover of 50%
• What is the average tenure of an employee in the
companies?
• On many installations can be done by the employees before
they leave
Session 3: Project Selection

Rohit Kapoor
 Tools and Techniques
• AHP
• TOPSIS
– Technique for Order Preference using Similarity to
Ideal Solution
• Goal Programming
• Decision Tree
• Project Assessment
– Sensitivity Analysis
• Assignment
 AHP
• Suppose you have 3 job offers:
– Job 1, Job 2 and Job 3
• Question?
– Which job offer to chose?
– Based on criteria (objectives!)
• High starting salary
• Quality of life in city where job is located
• Interest in work
• Job location near family and relatives
 Illustration Continues
• Requirements
– Generation of weights for each objective
– Generation of scores for each job on each
objective
– Finally
• For each job
– Total score
» Sum of {weight of objective × score of the job in that
objective}
 Illustration Continues
• ith objective
(i = 1, 2, 3, 4)
• jth job
(j = 1, 2, 3)
• Suppose you have calculated
w1 = 0.5115, w2 = 0.0986, w3 = 0.2433, w4 = 0.1466
 Illustration Continuous
• Suppose you have calculated the scores of
each job in each of the objective
Objective Job 1 Job 2 Job 3
Salary 0.571 0.286 0.143
Quality of Life 0.159 0.252 0.589
Interest in Work 0.088 0.669 0.243
Proximity to
Family 0.069 0.426 0.506

• Choose the job offer!

 Scores of the Jobs
• Job 1: 0.339
• Job 2: 0.396
• Job 3: 0.265
– Chose job 2
 Obtaining Weights for Each Objective

• Pair-wise Comparison Matrix (A)

– Elements of A
• aij?
aii = 1
a13 = 3
• Consistency?
aij = k
aji = 1/k
Pair-Wise Comparison Matrix

SAL QL IW NF

SAL 1 5 2 4

QL 1/5 1 1/2 1/2

IW 1/2 2 1 2

NF 1/4 2 1/2 1
 Finding the Score of a Job for an
Objective
• For SAL
– Pairwise Comparison Matrix
Job 1 Job 2 Job 3

Job 1 1 2 4

Job 2 1/2 1 2

• For QF Job 3 1/4 1/2 1

– Pairwise Comparison

Job 1 Job 2 Job 3

Job 1 1 1/2 1/3

Job 2 2 1 1/3

Job 3 3 3 1
 Contractor Selection Exercise
• ?