Change processes towards lean production the role of the remuneration system

Change processes towards lean production the role of the remuneration system Explores the role of the remuneration system in the implementation process when introducing a complex manufacturing strategy, lean production. Exploratory clinical research in a mechanical manufacturing company was used and three areas of findings emerged. First, there is a need for congruence in time between organization and remuneration, since the remuneration system serves both as an obstructing and a facilitating force in the process. There is also a need for congruence between the principles of the organization and remuneration. Converting the complex goals of the manufacturing strategy into a correspondingly elaborate remuneration system is essential. Finally, proposes a two‐part remuneration system for lean manufacturing. The first part of the system is a response to the founding principles of lean manufacturing: focusing on the competence of the individual. The second part is formed to remunerate the outcomes of a lean manufacturing system based on the performance of the team. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Operations & Production Management Emerald Publishing

Change processes towards lean production the role of the remuneration system

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Publisher
Emerald Publishing
Copyright
Copyright © 1995 MCB UP Ltd. All rights reserved.
ISSN
0144-3577
DOI
10.1108/01443579510102918
Publisher site
See Article on Publisher Site

Abstract

Explores the role of the remuneration system in the implementation process when introducing a complex manufacturing strategy, lean production. Exploratory clinical research in a mechanical manufacturing company was used and three areas of findings emerged. First, there is a need for congruence in time between organization and remuneration, since the remuneration system serves both as an obstructing and a facilitating force in the process. There is also a need for congruence between the principles of the organization and remuneration. Converting the complex goals of the manufacturing strategy into a correspondingly elaborate remuneration system is essential. Finally, proposes a two‐part remuneration system for lean manufacturing. The first part of the system is a response to the founding principles of lean manufacturing: focusing on the competence of the individual. The second part is formed to remunerate the outcomes of a lean manufacturing system based on the performance of the team.

Journal

International Journal of Operations & Production ManagementEmerald Publishing

Published: Nov 1, 1995

Keywords: Implementation; Lean production; Remuneration

References

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