SlideShare a Scribd company logo

Productivity Based Compensation

•
•
T
taylorsara14

Describes a method to compensate based on productivity

1 of 22
Productivity Based Compensation Linking Compensation Plans To Productivity Measures Sara Taylor-Niemann President Assembly Services And Packaging, Inc. Hudson, Wisconsin
Introduction ,[object Object],[object Object],[object Object],[object Object]
Situation ,[object Object],[object Object],[object Object]
Production Rate Example
Production Rate Example
Production Rate Example
Production Rate Reality ,[object Object],[object Object],[object Object],[object Object]
Effect Of Productivity Losses On Hourly Labor Cost
Effect Of Productivity Losses On Hourly Labor Cost ,[object Object],[object Object],[object Object]
Effect Of Productivity Losses On Unit Cost
Effect Of Productivity Losses On Unit Cost ,[object Object],[object Object]
Reduced Productivity Results In Lost Opportunities
Reduced Productivity Results In Lost Opportunities ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Production Rate Example Discussion ,[object Object],[object Object],[object Object],[object Object],[object Object]
Production Rate Example Budgetary Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object]
Systemic and Cultural Implications ,[object Object],[object Object],[object Object],[object Object],[object Object]
What If…? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Effect Of Productivity Gains On Hourly Labor Cost
Pool Plan ,[object Object],[object Object],[object Object],[object Object]
Pool Plan Budget ,[object Object]
Compensating for desired outcomes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Thanks … ,[object Object],Sara Taylor-Niemann President Assembly Services And Packaging, Inc. Hudson, Wisconsin

Recommended

More on facilities continuous improvement
More on facilities continuous improvementMore on facilities continuous improvement
More on facilities continuous improvementDoug Snell, MBA, CFM, Owner
 
Efficiency
Efficiency Efficiency
Efficiency Israr Khan Raja
 
Making behavioural change stick - LogiKal event
Making behavioural change stick - LogiKal eventMaking behavioural change stick - LogiKal event
Making behavioural change stick - LogiKal eventLogiKal Projects
 
Principles of Office Management - MIT School of Distance Education
Principles of Office Management - MIT School of Distance Education Principles of Office Management - MIT School of Distance Education
Principles of Office Management - MIT School of Distance Education MIT School
 
Staff motivation
Staff motivationStaff motivation
Staff motivationcenriquegf30
 
The Inevitable Change - Are You Ready for the Ups and Downs?
The Inevitable Change - Are You Ready for the Ups and Downs?The Inevitable Change - Are You Ready for the Ups and Downs?
The Inevitable Change - Are You Ready for the Ups and Downs?LogiKal Projects
 
Productivity Matters!
Productivity Matters!Productivity Matters!
Productivity Matters!Cycloides
 
Kpi chart
Kpi chartKpi chart
Kpi chartharrisrytermoha
 

Recommended

More on facilities continuous improvement
More on facilities continuous improvementMore on facilities continuous improvement
More on facilities continuous improvementDoug Snell, MBA, CFM, Owner
 
Efficiency
Efficiency Efficiency
Efficiency Israr Khan Raja
 
Making behavioural change stick - LogiKal event
Making behavioural change stick - LogiKal eventMaking behavioural change stick - LogiKal event
Making behavioural change stick - LogiKal eventLogiKal Projects
 
Principles of Office Management - MIT School of Distance Education
Principles of Office Management - MIT School of Distance Education Principles of Office Management - MIT School of Distance Education
Principles of Office Management - MIT School of Distance Education MIT School
 
Staff motivation
Staff motivationStaff motivation
Staff motivationcenriquegf30
 
The Inevitable Change - Are You Ready for the Ups and Downs?
The Inevitable Change - Are You Ready for the Ups and Downs?The Inevitable Change - Are You Ready for the Ups and Downs?
The Inevitable Change - Are You Ready for the Ups and Downs?LogiKal Projects
 
Productivity Matters!
Productivity Matters!Productivity Matters!
Productivity Matters!Cycloides
 
Kpi chart
Kpi chartKpi chart
Kpi chartharrisrytermoha
 
Operation management
Operation managementOperation management
Operation managementTSHEHLA MOLEFE
 
Downsizing & Business Reorganisation
Downsizing & Business ReorganisationDownsizing & Business Reorganisation
Downsizing & Business ReorganisationRAHAYU TASNIM
 
Key principles in continuous improvement culture
Key principles in continuous improvement cultureKey principles in continuous improvement culture
Key principles in continuous improvement cultureGopala P.
 
004 benchmarking and productivity
004 benchmarking and productivity004 benchmarking and productivity
004 benchmarking and productivityDr Fereidoun Dejahang
 
14 control systems and managing finances and people
14 control systems and managing finances and people14 control systems and managing finances and people
14 control systems and managing finances and peopleBeulah Heights University
 
The Dark Side of Process Measurement
The Dark Side of Process MeasurementThe Dark Side of Process Measurement
The Dark Side of Process MeasurementChiao-Chin Lin, MPH, CPH
 
Management operations, projects, process business development
Management operations, projects, process business developmentManagement operations, projects, process business development
Management operations, projects, process business developmentGodspower Njoku
 
Team Based Migration
Team Based MigrationTeam Based Migration
Team Based Migrationmastersunconsulting
 
Continuous Improvement
Continuous ImprovementContinuous Improvement
Continuous ImprovementAllan Berry
 
Kaizen-Whitepaper
Kaizen-WhitepaperKaizen-Whitepaper
Kaizen-WhitepaperRomil Shah (Texas A&M Aggie) (HeadStarter)
 
The Value-Up Paradigm
The Value-Up ParadigmThe Value-Up Paradigm
The Value-Up ParadigmChris Poteet
 
Deming’s 14 Points for Management
Deming’s 14 Points for ManagementDeming’s 14 Points for Management
Deming’s 14 Points for ManagementJeanie Arnoco
 
Tqm points
Tqm pointsTqm points
Tqm pointskhaneducation
 
Effectiveness of performance measure
Effectiveness of performance measureEffectiveness of performance measure
Effectiveness of performance measureShyam Sunder Budhwar
 
Hi Performance Manufacturing
Hi Performance ManufacturingHi Performance Manufacturing
Hi Performance ManufacturingAlex Diong
 
PDCA Cycle
PDCA CyclePDCA Cycle
PDCA Cycleমোঃ গোলাম সারোয়ার
 
Competency of the Month: Production approach
Competency of the Month: Production approachCompetency of the Month: Production approach
Competency of the Month: Production approachTalent Management LLC
 
Productivity
ProductivityProductivity
ProductivityPriti Dedhia
 
Lean Continuous Improvement Overview
Lean Continuous Improvement OverviewLean Continuous Improvement Overview
Lean Continuous Improvement OverviewBrandon Jennings MBA,LSS,ASQ
 
Decision Making In Management
Decision Making In Management Decision Making In Management
Decision Making In Management Syed Sadath
 
Where Does The Time Go?
Where Does The Time Go?Where Does The Time Go?
Where Does The Time Go?gstevick1980
 
Facility Performance Measures
Facility Performance MeasuresFacility Performance Measures
Facility Performance MeasuresRobin Camarote, LLC
 

More Related Content

What's hot

Downsizing & Business Reorganisation
Downsizing & Business ReorganisationDownsizing & Business Reorganisation
Downsizing & Business ReorganisationRAHAYU TASNIM
 
Key principles in continuous improvement culture
Key principles in continuous improvement cultureKey principles in continuous improvement culture
Key principles in continuous improvement cultureGopala P.
 
14 control systems and managing finances and people
14 control systems and managing finances and people14 control systems and managing finances and people
14 control systems and managing finances and peopleBeulah Heights University
 
Management operations, projects, process business development
Management operations, projects, process business developmentManagement operations, projects, process business development
Management operations, projects, process business developmentGodspower Njoku
 
Continuous Improvement
Continuous ImprovementContinuous Improvement
Continuous ImprovementAllan Berry
 
The Value-Up Paradigm
The Value-Up ParadigmThe Value-Up Paradigm
The Value-Up ParadigmChris Poteet
 
Deming’s 14 Points for Management
Deming’s 14 Points for ManagementDeming’s 14 Points for Management
Deming’s 14 Points for ManagementJeanie Arnoco
 
Effectiveness of performance measure
Effectiveness of performance measureEffectiveness of performance measure
Effectiveness of performance measureShyam Sunder Budhwar
 
Hi Performance Manufacturing
Hi Performance ManufacturingHi Performance Manufacturing
Hi Performance ManufacturingAlex Diong
 
Competency of the Month: Production approach
Competency of the Month: Production approachCompetency of the Month: Production approach
Competency of the Month: Production approachTalent Management LLC
 
Decision Making In Management
Decision Making In Management Decision Making In Management
Decision Making In Management Syed Sadath
 

What's hot (20)

Operation management
Operation managementOperation management
Operation management
 
Downsizing & Business Reorganisation
Downsizing & Business ReorganisationDownsizing & Business Reorganisation
Downsizing & Business Reorganisation
 
Key principles in continuous improvement culture
Key principles in continuous improvement cultureKey principles in continuous improvement culture
Key principles in continuous improvement culture
 
004 benchmarking and productivity
004 benchmarking and productivity004 benchmarking and productivity
004 benchmarking and productivity
 
14 control systems and managing finances and people
14 control systems and managing finances and people14 control systems and managing finances and people
14 control systems and managing finances and people
 
The Dark Side of Process Measurement
The Dark Side of Process MeasurementThe Dark Side of Process Measurement
The Dark Side of Process Measurement
 
Management operations, projects, process business development
Management operations, projects, process business developmentManagement operations, projects, process business development
Management operations, projects, process business development
 
Team Based Migration
Team Based MigrationTeam Based Migration
Team Based Migration
 
Continuous Improvement
Continuous ImprovementContinuous Improvement
Continuous Improvement
 
Kaizen-Whitepaper
Kaizen-WhitepaperKaizen-Whitepaper
Kaizen-Whitepaper
 
The Value-Up Paradigm
The Value-Up ParadigmThe Value-Up Paradigm
The Value-Up Paradigm
 
Deming’s 14 Points for Management
Deming’s 14 Points for ManagementDeming’s 14 Points for Management
Deming’s 14 Points for Management
 
Tqm points
Tqm pointsTqm points
Tqm points
 
Effectiveness of performance measure
Effectiveness of performance measureEffectiveness of performance measure
Effectiveness of performance measure
 
Hi Performance Manufacturing
Hi Performance ManufacturingHi Performance Manufacturing
Hi Performance Manufacturing
 
PDCA Cycle
PDCA CyclePDCA Cycle
PDCA Cycle
 
Competency of the Month: Production approach
Competency of the Month: Production approachCompetency of the Month: Production approach
Competency of the Month: Production approach
 
Productivity
ProductivityProductivity
Productivity
 
Lean Continuous Improvement Overview
Lean Continuous Improvement OverviewLean Continuous Improvement Overview
Lean Continuous Improvement Overview
 
Decision Making In Management
Decision Making In Management Decision Making In Management
Decision Making In Management
 

Similar to Productivity Based Compensation

Where Does The Time Go?
Where Does The Time Go?Where Does The Time Go?
Where Does The Time Go?gstevick1980
 
Aqa bus2-peopleworkforceeffectiveness
Aqa bus2-peopleworkforceeffectivenessAqa bus2-peopleworkforceeffectiveness
Aqa bus2-peopleworkforceeffectivenessPeter Sammons
 
Shift Work Scheduling Strategy: A Labor Management Crash Course
Shift Work Scheduling Strategy: A Labor Management Crash CourseShift Work Scheduling Strategy: A Labor Management Crash Course
Shift Work Scheduling Strategy: A Labor Management Crash CourseJohn Frehse
 
Human resources and job design @ bec doms
Human resources and job design @ bec domsHuman resources and job design @ bec doms
Human resources and job design @ bec domsBabasab Patil
 
Session 4_OM
Session 4_OMSession 4_OM
Session 4_OMthangv
 
Production & Operation Management
Production & Operation ManagementProduction & Operation Management
Production & Operation Managementiamganeshak
 
IWLA webinar presentation ver4
IWLA webinar presentation ver4IWLA webinar presentation ver4
IWLA webinar presentation ver4Thomas Landry
 
Bm unit 2_4_motivation_ppt
Bm unit 2_4_motivation_pptBm unit 2_4_motivation_ppt
Bm unit 2_4_motivation_pptGerman Fong
 
Job Design and Work Measurement
Job Design and Work Measurement Job Design and Work Measurement
Job Design and Work Measurement Joshua Miranda
 
Labour Cost Control in Cost Accounting-B.V.Raghunandan
Labour Cost Control in Cost Accounting-B.V.RaghunandanLabour Cost Control in Cost Accounting-B.V.Raghunandan
Labour Cost Control in Cost Accounting-B.V.RaghunandanSVS College
 
Employee productivity
Employee productivityEmployee productivity
Employee productivitySelf-employed
 
Employee productivity and Role of HR
Employee productivity and Role of HREmployee productivity and Role of HR
Employee productivity and Role of HRSelf-employed
 
Labour cost control b.v.raghunandan
Labour cost control b.v.raghunandanLabour cost control b.v.raghunandan
Labour cost control b.v.raghunandanSVS College
 
Work Measurement and Operational Effectiveness
Work Measurement and Operational EffectivenessWork Measurement and Operational Effectiveness
Work Measurement and Operational Effectivenessgrubinm
 

Similar to Productivity Based Compensation (20)

Where Does The Time Go?
Where Does The Time Go?Where Does The Time Go?
Where Does The Time Go?
 
Facility Performance Measures
Facility Performance MeasuresFacility Performance Measures
Facility Performance Measures
 
Aqa bus2-peopleworkforceeffectiveness
Aqa bus2-peopleworkforceeffectivenessAqa bus2-peopleworkforceeffectiveness
Aqa bus2-peopleworkforceeffectiveness
 
Shift Work Scheduling Strategy: A Labor Management Crash Course
Shift Work Scheduling Strategy: A Labor Management Crash CourseShift Work Scheduling Strategy: A Labor Management Crash Course
Shift Work Scheduling Strategy: A Labor Management Crash Course
 
Human resources and job design @ bec doms
Human resources and job design @ bec domsHuman resources and job design @ bec doms
Human resources and job design @ bec doms
 
Session 4_OM
Session 4_OMSession 4_OM
Session 4_OM
 
Chapter 4_OM
Chapter 4_OMChapter 4_OM
Chapter 4_OM
 
Production & Operation Management
Production & Operation ManagementProduction & Operation Management
Production & Operation Management
 
IWLA webinar presentation ver4
IWLA webinar presentation ver4IWLA webinar presentation ver4
IWLA webinar presentation ver4
 
Bm unit 2_4_motivation_ppt
Bm unit 2_4_motivation_pptBm unit 2_4_motivation_ppt
Bm unit 2_4_motivation_ppt
 
Job Design and Work Measurement
Job Design and Work Measurement Job Design and Work Measurement
Job Design and Work Measurement
 
Labour Cost Control in Cost Accounting-B.V.Raghunandan
Labour Cost Control in Cost Accounting-B.V.RaghunandanLabour Cost Control in Cost Accounting-B.V.Raghunandan
Labour Cost Control in Cost Accounting-B.V.Raghunandan
 
Employee productivity
Employee productivityEmployee productivity
Employee productivity
 
Employee productivity and Role of HR
Employee productivity and Role of HREmployee productivity and Role of HR
Employee productivity and Role of HR
 
Metrics Mapping
Metrics MappingMetrics Mapping
Metrics Mapping
 
Labour cost control b.v.raghunandan
Labour cost control b.v.raghunandanLabour cost control b.v.raghunandan
Labour cost control b.v.raghunandan
 
Work Measurement and Operational Effectiveness
Work Measurement and Operational EffectivenessWork Measurement and Operational Effectiveness
Work Measurement and Operational Effectiveness
 
Saniah saleem rao
Saniah saleem raoSaniah saleem rao
Saniah saleem rao
 
Improving Productivity
Improving ProductivityImproving Productivity
Improving Productivity
 
Developing Superstar Landscape Employees
Developing Superstar Landscape EmployeesDeveloping Superstar Landscape Employees
Developing Superstar Landscape Employees
 

Productivity Based Compensation