Avondale Industries’ top management has set a goal to reduce cost and waste, improve efficiency at all their production sites (both domestic and abroad), and increase profitability. They recognize this is a continuous improvement journey and will involve much more than just the implementation of tools and alignment of work. They are committed to making change, however, and recognize that employee engagement and empowerment are key elements to improving productivity on the production lines. As a first step, the training and development office has engaged several groups of employees (line workers, engineers, quality assurance, quality control, and maintenance) to review production processes and set performance standards. Why is it important that these employees be involved in the process of setting standards? Meeting standards are best achieved when the people who must meet the standards are involved in establishing them. Involving the employees right from the beginning of the continuous improvement journey will increase the likelihood they will support the new standards. Establishing standards for work on the production lines will enable all employees involved to be safe, which is the most important priority of the company. Engaging the different groups of people will allow for differing opinions to inform the company on what needs to be done on the production line

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Avondale Industries’ top management has set a goal to reduce cost and waste, improve efficiency at all their production sites (both domestic and abroad), and increase profitability. They recognize this is a continuous improvement journey and will involve much more than just the implementation of tools and alignment of work. They are committed to making change, however, and recognize that employee engagement and empowerment are key elements to improving productivity on the production lines. As a first step, the training and development office has engaged several groups of employees (line workers, engineers, quality assurance, quality control, and maintenance) to review production processes and set performance standards. Why is it important that these employees be involved in the process of setting standards?

Meeting standards are best achieved when the people who must meet the standards are involved in establishing them.
Involving the employees right from the beginning of the continuous improvement journey will increase the likelihood they will support the new standards.
Establishing standards for work on the production lines will enable all employees involved to be safe, which is the most important priority of the company.
Engaging the different groups of people will allow for differing opinions to inform the company on what needs to be done on the production line.

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