학술논문

Optimizing the Labor Strategy of a Professional Service Firm
Document Type
Periodical
Source
IEEE Transactions on Engineering Management IEEE Trans. Eng. Manage. Engineering Management, IEEE Transactions on. 66(3):443-458 Aug, 2019
Subject
Engineering Profession
Planning
Optimization
Scheduling
Organizations
Computational modeling
Aggregates
Uncertainty
Bill-of-labor (BOL)
labor strategy
mathematical programming
workforce flexibility
workforce/manpower planning
Language
ISSN
0018-9391
1558-0040
Abstract
A professional service firm often faces challenges in matching its available workforce with the demands for service delivery. In this paper, we coin the labor strategy optimization (LSO) problem to prescribe an optimal staffing plan for meeting the target revenues of a professional service firm. It simultaneously optimizes the capacity, capability, location, and flexibility of a firm's workforce at the strategic level. Our modeling framework captures the richness and complexity of a general service transformation process. Mathematical programming based models are developed for both the deterministic and stochastic versions of the problem. A prototype of the LSO technology was implemented at the former HP Consulting & Integration organization. Through a comprehensive computational study, managerial insights are drawn and discussed about the optimal labor strategy under various supply-side risks and uncertainties. The optimal labor strategy provides a cost effective and reliable basis for more detailed workforce optimization concerning scheduling and assignment decisions. Our study also offers a data-driven approach to take advantage of large amount of disparate data, from different organizations and geographical locations of a firm, for improving the workforce planning decisions.