Change processes towards lean production: the role of the remuneration system
International Journal of Operations & Production Management
ISSN: 0144-3577
Article publication date: 1 November 1995
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.
Keywords
Citation
Karlsson, C. and Åhlström, P. (1995), "Change processes towards lean production: the role of the remuneration system", International Journal of Operations & Production Management, Vol. 15 No. 11, pp. 80-99. https://doi.org/10.1108/01443579510102918
Publisher
:MCB UP Ltd
Copyright © 1995, MCB UP Limited