Question

A Wall Street Journal article (December 26, 1996) describes a series of changes at the Pratt & Whitney plant in Maine that manufactures parts for jet engines. In 1993 it was about to be closed because of high operating costs and inefficiencies. A new plant manager overhauled operations. He broadened job descriptions so inspectors do 15 percent more work than they did five years ago. A “results- sharing” plan pays hourly employees if the plant exceeds targets such as cost cutting and on- time delivery. Now, everyone is looking to cut costs.
Hourly employees also helped design a new pay scheme that is linked to the amount of training, not seniority, that an employee has. This was after the plant manager drafted 22 factory-floor employees, gave them a conference room, and told them to draft a new pay plan linked to learning.
Shop- floor wages vary between $ 9 and $ 19 per hour with the most money going to people running special cost studies or quality projects, tasks previously held by managers.
This text emphasizes the importance of keeping all three legs of the stool in balance. Identify the changes Pratt & Whitney made to all three legs of the stool at its Maine plant.



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  • CreatedDecember 15, 2014
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