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XYZ LtdHas Just Introduced a Performance-Based Reward System for All Production

question 46

Essay

XYZ Ltd.has just introduced a performance-based reward system for all production employees.The plan pays employees a team-based bonus based on the reduction of labor costs per unit in the production department.Describe three strategies to ensure that this and other performance-based reward systems are effective.Your answer should also briefly state the type of reward system used by XYZ Ltd.


Definitions:

5S

A workplace organization method originating from Japan that stands for Sort, Set in order, Shine, Standardize, and Sustain.

Lean Production

A manufacturing methodology that focuses on minimizing waste within manufacturing systems while simultaneously maximizing productivity.

Sort/Segregate

The process of separating items into different categories based on specific criteria to improve efficiency, organization, or processing.

Seven Wastes

Overproduction; queues; transportation; inventory; motion; overprocessing; defective product.

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