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Self-Designing Teams Have All the Characteristics of Self-Managing Teams, but They

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Self-designing teams have all the characteristics of self-managing teams, but they can also control and change the design of the teams themselves, the tasks they do and how they do them, and who belongs to the teams.


Definitions:

Variable Maintenance Cost

Costs that change in proportion to the operational activity of a company, such as repairs and maintenance expenses that vary with usage.

Mixed Cost

A cost containing both variable and fixed cost elements, changing in total with activity level but not proportionately.

Direct Labor Hours

The total time workers spend producing a product or providing a service, directly tied to the production process.

Contribution Margin Ratio

A financial metric that shows what percentage of sales revenue is available to cover fixed costs and generate profit after variable costs have been paid.

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