Theory of Constraints Applied to Bonus Payments for Quantity Produced and Product Quality

Theory of Constraints Applied to Bonus Payments for Quantity Produced and Product Quality

🔥NEW Hi everyone, I guess we all agree that if we want to change things we need to use "system thinking"…!
There is a "but"; at my factory in the (instrumental shop) workers get paid bonuses for how many parts they produce. They use CAD drawings. Sometimes these are not correct or sometimes workers are not experienced enough to make correct judgment calls which results in bad end results.
I want to make the engineers and shop workers work together as a whole.
Instrumental shop workers get paid bonuses every month, I want to change that and make their KPIs based on how many end product they produce and then only pay them bonus. But sometimes it's not a worker's problem that he ends up with a bad CAD drawing.
My CEO asked one question that made me think "Why do you want to penalize the workers in the instrumental shop when it should be the managers who are responsible?"
On the other hand, why should we pay bonuses (waste money and material) if the end product is stored away and not used! I understand it's not their fault sometimes, but the current local performance doesn't help me at all.
What would be your suggestions? Greatly appreciated.

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		3 Salvador Pena Business Consultant, Mexico
	Decouple Companies, TOC (CCPM & MTO) Hi Gene, I think you have a typical problem of manufacturing companies that are handled with the con... Sign up