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To Create the Proper Organizational Context for Change, Employers Must

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To create the proper organizational context for change, employers must quickly and harshly punish mistakes made by employees.


Definitions:

Direct Labor

The workforce directly involved in manufacturing or producing goods, whose wages are considered a variable cost.

Factory Overhead

All indirect costs associated with operating a factory, excluding direct materials and direct labor costs.

Process Manufacturers

Companies involved in production where raw materials are transformed through a chemical or mechanical process into a finished product.

Continuous Flow

A process in manufacturing that involves the constant movement of goods through the production system without any stoppages.

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