CHANGE PROCESSES TOWARDS LEAN PRODUCTION - THE ROLE OF THE REMUNERATION SYSTEM

Citation
C. Karlsson et P. Ahlstrom, CHANGE PROCESSES TOWARDS LEAN PRODUCTION - THE ROLE OF THE REMUNERATION SYSTEM, International journal of operations & production management, 15(11), 1995, pp. 80
Citations number
17
Categorie Soggetti
Management
ISSN journal
01443577
Volume
15
Issue
11
Year of publication
1995
Database
ISI
SICI code
0144-3577(1995)15:11<80:CPTLP->2.0.ZU;2-9
Abstract
Explores the role of the remuneration system in the implementation pro cess when introducing a complex manufacturing strategy, lean productio n. 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 th e 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 compl ex goals of the manufacturing strategy into a correspondingly elaborat e remuneration system is essential. Finally, proposes a two-part remun eration 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 rem unerate the outcomes of a lean manufacturing system based on the perfo rmance of the team.