The Client is a 100 years old Multi Billion USD MNC spread across various industry segments. The assignment was delivered to the paperboard division which has 4 manufacturing units.
The challenge was to build an incentive system for workers and staffs of the manufacturing units. The current Incentive System is based on the category of products and worked on the philosophy of acceptable and non- acceptable wastage based on team judgment.
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The Strategist proposed for creating a Five Performance Level framework for each Product Family, based on the Philosophy of Higher Incentives for lesser wastage during the production cycle. As a part of the study, an extensive analytical research was done on production and wastage data for each product and product family. Based on Upper Control Limits (UCL) and Lower Control Limits (LCL), the numbers of Good and Bad instances were drawn and keeping in view the product cost & profitability, an Incentive program was devised.
The recommendations were presented to the Union and the staffs by the Management, which was accepted by all.