Better management for a better company

Companies that invest in workforce training realize many benefits, including higher productivity and boosted profits. In fact, companies average a two-percent improvement in productivity for every one-tenth increase in training hours.

 
1. Challenge
     
  This defense manufacturing company was struggling with serious quality and profitability issues combined with extreme employee dissatisfaction.
     
2. Findings
  Supervisors had a marginal understanding of effective supervision.
     
  Managers spent little time interacting with employees and responding to issues.
     
3. Goals
  Reduce implementation time for the company's Total Quality Management initiative.
     
  Produce measurable improvements in quality, efficiency, and profitability.
     
  Shift from a negative/passive culture to a positive/proactive one.
     
4. Recommendations
  Develop training programs to help management deal with barriers.
     
  Install Visual Control Boards to keep track of issues and foster communication.
     
  Implement systems for regular interaction between supervisors and operators.
     
  Set up Daily Schedule Controls to track productivity, scrap, lost time, and capacity utilization.
     
5. Results
  Supervisor interaction time with employees jumped from 14 percent to 26 percent.
     
  Productivity increased by 23 percent, corresponding with a 21 percent reduction in scrap and a 71 percent reduction in rework.
     
  By being a part of the solution, employees experienced a lift in morale.
     
  Although United Defense was expected to lose money during 1999, the company exceeded all projections and turned a profit.
     
 
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