The need for 24x7 Operations and its Implications
Market dynamics and changing competitive equations
prompt business, both small and big, to go for round-the-clock operations.
However, 24/7 operations doesn’t work for all businesses. The decision to go
for a 24/7 operation involves considering economic, strategic and long-term
goals. Also, the decision may stand on a simple reason of being financially
viable and profitable for the current period. While some businesses have the
advantage of analyzing and deciding on what they need to do as far as 24/7
operations are concerned, some are bound by the compulsions of being in their
respective lines of business or location. Thus, businesses near highways,
airports or even manufacturing hubs find it almost essential to be open full
time to make the situation beneficial for them.
Many
processes are required to operate continuously, especially in manufacturing,
healthcare, hospitality and some retail industries. With the technological
advancements driven competitive demands, 24/7 operation has become a necessity
for many organizations looking for an advantage in the global marketplace.
Thus, businesses working for customers in different time zones are bound to run
24/7 operations. Working in shifts is common in such organizations.
The
key motivation to go for 24/7 operations; remains profit.
Other
than that multiple factors are considered when deciding in favor or against
going for round-the-clock operations. In cases where businesses may need to
purchase heavy equipment and invest major capital to avoid running full time,
full-time operations are preferred to save the hard cash.
Some
reasons for considering 24/7 operations are its ultimate benefits too. For
example, increased utilization of capital investment, improvements in customer
service, and sizable operational advantage, especially when labor costs do not
matter much, are the benefits that crop up as reasons for choosing full time
running. However, with benefits there are counter implications that need to be
looked on.
Implications
of Running 24/7
The
challenges of running round-the-clock operations extend beyond the obvious.
Employee fatigue is one of the most underestimated adverse effect of 24/7
operations. It has not only financial costs but also business costs in terms of
increased errors, accidents, legal liability, turnover, healthcare costs, labor
relations, and absenteeism. Generally, all such costs of human fatigue are not
estimated in advance, which leads to budgetary failure. Organizations
experienced in round-the-clock operations quantify these costs and include in
their decision-making processes. Costs of reduced productivity, impaired
quality, damaged equipment and increased scrap and rework are quantified and
added to the estimates and budgetary provisions. Apart from this, staff
training on physiological principles of alertness, sleep and fatigue is
required.
Other
major challenges for the organization running 24/7 operations are creating a
uniform culture, instilling common values across all shifts, and implementing
common operating standard. Issues can emerge on the front of employee morale,
operational safety, productivity, and quality control because of variation in
management, training, employee motivation and culture.
Some
technical but serious issues also crop up due to 24/7 working. Some of these
are pay issues because of confusion in definition of workday for each shift and
calculations about overtime. To overcome such issues, technology becomes the
backbone of the solution chosen. In such cases, technology support is most
essential as a 24/7 operation does not have downtime. Innumerous situations and
scenarios can make it highly confusing to calculate extra pay, shift pay, or
holiday pay. It is important to resolve pay issues quickly and effectively.
Thus, various custom time and attendance systems are used after making them
compatible with the requirements.
There
is a lot that comes with the running of 24/7 operations, and there goes a lot
to make the operations happen. For an objective mind, it goes like running
parallel businesses that are management back to back.
With
an expertise of over 25 years, Fourth Dimension Technologies has emerged as a
noteworthy specialist delivering distinguished 24/7 support to its clients
across the globe.
Our
facility is staffed round the clock by seasoned support experts with extensive
experience across a broad range of technologies and equipment vendors.
Leveraging best practices including ITIL advanced service automation
capabilities and intelligent monitoring and management tools, our services
allow you to ANTICIPATE, IDENTIFY & RESOLVE system issues more quickly and
with greater accuracy while maintaining the price competitiveness and control
over your operations. Thus, you get an improved SLA through reduced cost and
increased processes efficiency.
Let
us take care of your IT fort while you focus on your core business objectives.
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