A Plan for Continual Improvement

When I was in the US Army, they had a program that anyone who proposed an improvement could receive 1% of the value of the improvement which would normally be some cost saving someone recommended.

I was reminded of that today talking with a factory manager who also pays 1-2% for ideas that save costs in the factory. Industrial Engineering popularized it, and in their 3000 person factory they get 50-60 suggestions a month. That’s a bottom up continual improvement plan to consider.

It is not easy to bring such a plan to life. Posting notices will have little effect. Leaders should be rated in how many suggestions of value their people turn in. Leaders should regularly talk about it, and it can take hold.

What do you think?

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Posted in: Culture Development, Leadership, Motivating Workers, System

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