Business – 9.3 Operations strategy – Operational decisions | e-Consult

Limited human resources affect operations in the following ways:

• Skill mix and training: If the workforce lacks the necessary skills, managers may choose simpler, labour‑intensive production methods rather than highly automated processes that require specialised operators.
• Shift planning and capacity: A shortage of staff restricts the number of shifts that can be run, leading to reduced output and the need to schedule production around peak staff availability, often resulting in longer lead times.
• Flexibility: With fewer employees, the operation may avoid frequent change‑overs because each change consumes a larger proportion of the limited labour, favouring continuous‑flow or batch production.