Change processes towards lean production

TLDR

The study examines how remuneration systems influence the implementation of lean production in complex manufacturing settings. The authors propose a two‑part remuneration system tailored for lean manufacturing. The system comprises a competence‑focused component aligned with lean principles and a team‑performance‑based component that rewards collective outcomes. Findings indicate that congruence between remuneration timing, principles, and organizational goals is critical, as misalignment can obstruct or facilitate lean implementation, and that a complex remuneration system reflecting lean objectives is essential.

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.