By Lloyd Graff
Is paying overtime rather than bringing in new employees lean manufacturing practice?
For adherents to lean concepts, the question of how to handle a “bullwhip” effect where companies need to rebuild inventories is a challenge for suppliers. (All this “bullwhip” talk is making me hum the theme song from “Rawhide.” See clip below.) People who were laid off may be unavailable for a call back or may be happily pruned. Overtime is expensive, and eventually core workers get burned out working six or seven days a week or 12 hour shifts.
Temps are often an imperfect answer because they require significant training and may be poorly integrated into a group of standoffish employees who are offended that old employees are not being rehired.
As contract shops reach the “bullwhip” phase of inventory rebuild, how do you think workforce additions should be handled?
Question: Would the Obama $5000 tax credit proposal for new employees be enough to tip you into hiring new people?
Theme Song from the TV Show “Rawhide”