Managing worker flexibility and attrition in dual resource constrained job shops

Abstract

Worker flexibility is an attractive option for enhancing manufacturing performance, since it provides several strategic advantages, and also allows the firm to buffer against uncertainty. In this paper, we investigate issues related to acquiring a flexible work-force in those dual resource constrained (DRC) job-shops that have high learning costs and the presence of worker attrition. Our results show that significant improvement in traditional shop related measures can be attained at even very high attrition rates by incrementally training each worker in one additional department. However, this improvement comes at the expense of productivity losses which shop managers may not be willing to accept. The nature of the tradeoffs that exist in acquiring this incremental worker flexibility are addressed. Two strategies for improving shop performance, based on incrementally training workers or reducing attrition rates, are also recommended for the DRC shop modelled in our study. Conditions under which either of these two strategies should be pursued by the shop managers are also identified.