Aug 27 2013
Piecework and Excellence Cannot Coexist | Bill Waddell
See on Scoop.it – lean manufacturing
“There are only a few absolutes when it comes to lean but one of them is that there has never been a company that achieved true manufacturing excellence that paid its folks on a piecework system. It can’t happen – ever – period. Either you want to make the right product at the right time … or you just want to make a whole lot of stuff. You can’t have it both ways.”
A couple points that could be added are:
- The administration of piece rates is expensive, because you not only have to develop, maintain and monitor rates for every single task but you have to do with caution as people’s livelihoods are at stake and it is easy to start a mutiny.
- Tensions inevitably arise between operators who do a manual task at a speed they can control and those who run machines with automatic cycles they cannot change.
In the 1990s, I was surprised to learn that 2/3 of factory workers in Germany were still paid on a piece rate, which I was told after observing an operator getting furious at a machine that he couldn’t get to start because of a faulty safety latch. I also learned the piece rates are not set by the company directly but by an external organization called REFA that is accredited for this purpose by the unions. In that plant, everybody was producing to 140% of the standard, the performance that generated the maximum income for the operators.
See on www.idatix.com
Aug 31 2013
Misleading Graphics in Global Manufacturing Report from McKinsey
See on Scoop.it – lean manufacturing
“The global manufacturing sector has undergone a tumultuous decade: large developing economies leaped into the first tier of manufacturing nations, a severe recession choked off demand, and manufacturing employment fell at an accelerated rate in advanced economies. Still, manufacturing remains critically important to both the developing and the advanced world. In the former, it continues to provide a pathway from subsistence agriculture to rising incomes and living standards. In the latter, it remains a vital source of innovation and competitiveness, making outsized contributions to research and development, exports, and productivity growth. But the manufacturing sector has changed—bringing both opportunities and challenges—and neither business leaders nor policy makers can rely on old responses in the new manufacturing environment.”
The bubbles above are intended to represent global market share by gross value added in 2010 in the manufacturing of “global goods for local markets,” which includes appliances, automotive, chemicals, and pharmaceuticals.
The complete chart (see below) is a map of the world with a bubble for each of the top ten countries. From the point of view of graphic art, the chart looks professional; as a means of presenting data, however, it misleads.
From the center of the bubbles, you can see that China’s share is twice that of Japan, but the bubble is four times larger. This is because its radius is twice that of Japan’s bubble.
This is a perfect example of Tufte’s rule that you should not us a two-dimensional symbol to show one-dimensional data. Market share is one number. If you want to make an accurate graphic comparison of different countries’ market shares, use a bar chart. It would look as follows:
As most readers know where in the world the US, China, and Japan are, you can lose the map of the world. It looks great, but it adds no information.
See on www.mckinsey.com
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By Michel Baudin • Press clippings • 0 • Tags: Chart Junk, Global Manufacturing, Global Market Share, McKinsey