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.
International Journal of Operations & Production Management – Emerald Publishing
Published: Nov 1, 1995
Keywords: Implementation; Lean production; Remuneration
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