Industry

Manufacturing

In manufacturing, there is evidence that certain management practices, especially cross-training, are associated with both greater productivity for the company and higher wages for production employees. One factor: Firms can benefit if investing in workers’ training and compensation means that employees handle expensive materials more efficiently.

Featured Manufacturing Resources

Optimax Systems, Inc.

Optimax Systems, Inc., a privately held prototype optics manufacturer, has a team-based culture that is reinforced by two key management practices established more than two decades ago: a reward-oriented bonus structure and a comprehensive performance review system. According to Optimax CEO Rick Plympton, the company’s mission is to enable both customer success and employee prosperity. As part of that mission, Plympton explains, the company invests in technology, invests in its employees, and ensures that employees share in the company’s profits.

 

 

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Integrated Packaging Corp: Cross-Training

IPC of Detroit, MI, makes corrugated boxes—a mature commodity with thin margins, so the company is constantly looking for ways to maximize efficiency and productivity.  One key method is to cross-train production workers on different machines and jobs, which helps cover for absent workers and mitigates fluctuations in workflow. By building an agile workforce, the company enjoys cost savings, lower turnover, improved machine uptime, and greater ability to promote from within—thanks to a better-trained worker pool.

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Also Worth Reading

Lundberg Family Farms

Respectful stewardship of the land has always defined the Lundberg family’s vision for their organic farming business in Richvale, CA. And that meant establishing a culture of learning to instill the company's employees with a long-term view of the business and the environment. A mix of on-site training, work in cross-functional teams, and off-site education—including training in lean manufacturing for the entire production team—increased consciousness around waste and inefficiencies and resulted in improved work processes and substantial savings.

Lundberg Family Farms

SRC Electrical

SRC Electrical, an electrical components remanufacturer, has been committed to engaging all employees in the financial management of the company from its startup in 1991. Indeed, Jack Stack, the founder of its parent company, has been one of the most visible promoters of the "open-book management" concept since the 1980s. Since employees own shares in the Springfield, MO-based business through an employee stock ownership program (ESOP), they have an authentic stake in the company’s financial success.

SRC Electrical

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