question archive In an effort to keep workers busy management has arranged their operations so each worker is highly utilized

In an effort to keep workers busy management has arranged their operations so each worker is highly utilized

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In an effort to keep workers busy management has arranged their operations so each worker is highly utilized. What is the effect of this? Is the company ultimately gaining from "getting its money's worth by managing its operations so employees operate near their maximum rate? 

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Answer:

If workers are highly utilized by management in order to keep them busy, the contingency or risk of deviation leading to delay increases vastly.

e.g. if manufacturing a box takes 1 hr, so 10 boxes take 10 hours (known as throughput). If a worker is utilized in such a way that every time worker has to take nearly 1 hour only for completing each box, then if there is some issue during manufacturing of any one of the box, rest all boxes will be delayed. Hence some time period should be considered as extra for manufacturing of 10 boxes. Hence, utilization should not be maximum.

If by utilizing workers in this way i.e. high utilization, company is operating, it will lose its money due to delayed work output

For further detailed understanding of concept, a book (in form of a novel) called "The Goal" by Goldratt can be referred.

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