Chase strategy is aligning the rate of production to the amount of orders received. Chase strategy is a balancing technique to keeping on staff the correct amount of employees for business production. Should there be fewer orders to fill, there should be fewer employees on hand to complete the smaller tasks. As orders increase, employees would increase as well to compensate and reduce the risk for bottlenecking or slowing down production line process. Maintaining a more experienced staff also allows for faster and more productive production process. The downside to the Chase strategy process is if employees are aware of the company’s usage of the strategy, the employees may work slower in order to reduce the risk of being laid-off, sent home after only working a few hours or maybe losing their job during slower production periods in order to maintain employment. This would be a downside for the use of this strategy.
A fast food industry such as Pizza Hut would utilize the Chase strategy. To keep the customer enticed with hot, fresh out of the oven pizza, Pizza Hut only makes a pizza when it is ordered. Therefore, Pizza Hut only staffs the necessary amount of employees needed to fulfill the individual order. When business ramps up, Pizza Hut staffs more people to meet the busy order periods in order not to be backlogged. When orders start to slowdown, Pizza Hut starts sending home to cut unnecessary man-hours.
Pizza Hut maintains few full-time employees, they staff more part-time hourly employees to reduce labor costs and remain efficient with production management.
Jacobs, F. & Chase, R. (2011). Operations and Supply Chain Management (13th ed.). McGraw-Hill/Irwin. New York, NY. ISBN: 978-0-07-352522-8