Dq's for Week Four
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- Category: Science
- Date Submitted: 03/04/2010 02:01 PM
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DQ’s for Week Four
DQ Number One
After reading this week’s reading assignment this writer was able to improve his knowledge of outsourcing and the possible affects to business organizations that use outsourcing. Outsourcing is defined as moving some part of a firm’s internal activities along with decision responsibilities to outside providers. These responsibilities are established in a legal contract to avoid potential misunderstanding. Not only are business activities transferred but resources are also transferred including employees, facilities and equipment.
There can be potential positive and negative effects of outsourcing on the organization. Positive effects include concentration on their core business areas, tax advantages and competitive advantage. Negative effects can include lower quality, loss of control and hidden costs. Outsourcing can also mean current employees lose their jobs to these outside vendors, or may have to accept lower pay or loss of benefits if they decide to accept employment at these organizations.
Outsourcing has not affected this writer’s current employment situation. The services provided cannot be readily outsourced and there are no significant advantages for this writer’s employer to outsource these types of services.
DQ Number Two
Several important differences exist between service and manufacturing capacity planning. The first difference is that services cannot be stored for later use or as inventory. A negative for having inventory is that resources have been used without any revenues being received for these outlays. This inventory can also deprecate or become outdated for the manufacture. A positive to maintaining an inventory allows manufacturing organizations to meet unexpected increases in demand and maintain stronger customer service.
Service organizations are more susceptible to changes in demand. The capacity needs to be ready when the customer demands it and these service organizations cannot...
DQ Number One
After reading this week’s reading assignment this writer was able to improve his knowledge of outsourcing and the possible affects to business organizations that use outsourcing. Outsourcing is defined as moving some part of a firm’s internal activities along with decision responsibilities to outside providers. These responsibilities are established in a legal contract to avoid potential misunderstanding. Not only are business activities transferred but resources are also transferred including employees, facilities and equipment.
There can be potential positive and negative effects of outsourcing on the organization. Positive effects include concentration on their core business areas, tax advantages and competitive advantage. Negative effects can include lower quality, loss of control and hidden costs. Outsourcing can also mean current employees lose their jobs to these outside vendors, or may have to accept lower pay or loss of benefits if they decide to accept employment at these organizations.
Outsourcing has not affected this writer’s current employment situation. The services provided cannot be readily outsourced and there are no significant advantages for this writer’s employer to outsource these types of services.
DQ Number Two
Several important differences exist between service and manufacturing capacity planning. The first difference is that services cannot be stored for later use or as inventory. A negative for having inventory is that resources have been used without any revenues being received for these outlays. This inventory can also deprecate or become outdated for the manufacture. A positive to maintaining an inventory allows manufacturing organizations to meet unexpected increases in demand and maintain stronger customer service.
Service organizations are more susceptible to changes in demand. The capacity needs to be ready when the customer demands it and these service organizations cannot...