By Doug Cunningham
The Detroit Three automakers reportedly want as much as fifteen percent of autoworker pay to be tied to performance related bonuses rather than guaranteed annual raises. UAW president Bob King has said he’s open to “new forms of profit sharing”.
This would put autoworker pay at risk, a huge change in how autoworker compensation is structured – the biggest change since the 1950’s.
Rightardia thinks the unions have made enough convcesssions to the automakers already to keep GM and Chrysler afloat. American workers are already the most productive in the world.
Also, performance bonuses make sense for managers who make the 'big bucks', but not for necessarily for labor.
The problem with American cars is not US labor. The automakers rested on thier laurels for too long and resisted improving qulaity in their cars.
Enter William Edwards Deming (October 14, 1900 – December 20, 1993) was an American statistician, professor, author, lecturer, and consultant. He intitially approached the Big three automakers with his ideas on quality and was rebuffed,
He is best known for his work in Japan. Since 1950 he taught top management how to improve design (and thus service), product quality, testing and sales (the last through global markets) through various methods, including the application of statistical methods.
Deming made a significant contribution to Japan's later reputation for innovative high-quality products and its economic power.
He is regarded as having had more impact upon Japanese manufacturing and business than any other individual not of Japanese heritage. Although he something of a hero in Japan, he was only beginning to win widespread recognition in the U.S. at the time of his death.
Soon after the new Ford car car model was on the market, Ford customers were requesting the model with Japanese transmission over the USA-made transmission, and they were willing to wait for the Japanese model.
Ford engineers could not understand the customer preference for the model with Japanese transmission. Ford engineers decided to teardown the two different transmissions.
The American-made car parts were all within specified tolerances.
But the Japanese car parts were virtually identical to each other, and much closer to the nominal values for the parts. This made the Japanese cars run more smoothly and customers experienced fewer problems. Engineers at Ford understood how this was done when they met Deming.
source: http://en.wikipedia.org/wiki/W._Edwards_Deming
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Rightardia by Rightard Whitey of Rightardia is licensed under a Creative Commons Attribution 3.0 Unported License.
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This would put autoworker pay at risk, a huge change in how autoworker compensation is structured – the biggest change since the 1950’s.
Rightardia thinks the unions have made enough convcesssions to the automakers already to keep GM and Chrysler afloat. American workers are already the most productive in the world.
Also, performance bonuses make sense for managers who make the 'big bucks', but not for necessarily for labor.
The problem with American cars is not US labor. The automakers rested on thier laurels for too long and resisted improving qulaity in their cars.
Enter William Edwards Deming (October 14, 1900 – December 20, 1993) was an American statistician, professor, author, lecturer, and consultant. He intitially approached the Big three automakers with his ideas on quality and was rebuffed,
He is best known for his work in Japan. Since 1950 he taught top management how to improve design (and thus service), product quality, testing and sales (the last through global markets) through various methods, including the application of statistical methods.
Deming made a significant contribution to Japan's later reputation for innovative high-quality products and its economic power.
He is regarded as having had more impact upon Japanese manufacturing and business than any other individual not of Japanese heritage. Although he something of a hero in Japan, he was only beginning to win widespread recognition in the U.S. at the time of his death.
Soon after the new Ford car car model was on the market, Ford customers were requesting the model with Japanese transmission over the USA-made transmission, and they were willing to wait for the Japanese model.
Ford engineers could not understand the customer preference for the model with Japanese transmission. Ford engineers decided to teardown the two different transmissions.
The American-made car parts were all within specified tolerances.
But the Japanese car parts were virtually identical to each other, and much closer to the nominal values for the parts. This made the Japanese cars run more smoothly and customers experienced fewer problems. Engineers at Ford understood how this was done when they met Deming.
source: http://en.wikipedia.org/wiki/W._Edwards_Deming
Subscribe to the Rightardia feed: http://feeds.feedburner.com/blogspot/UFPYA
Netcraft rank: 6276 http://toolbar.netcraft.com/site_report?url=http://rightardia.blogspot.com
Creative Commons License
Rightardia by Rightard Whitey of Rightardia is licensed under a Creative Commons Attribution 3.0 Unported License.
Permissions beyond the scope of this license may be available at rightardia@gmail.com.
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