Case Study Notes - Notes Agem Electronics Corporation...

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Notes: Agem Electronics Corporation Industry- manufactures a line of instruments and other electronic devices for industrial applications The Instrument Assembly Team- one of the production teams in the Phoenix, AZ plant of the company Responsible for assembling, testing, and packaging the company’s regular line of electronic equipment Described as successful and interesting by Larry Fisher- the manager of the Assembly Department 24 months earlier, “agitators”, “hotheads” and “assistant troublemakers” The dramatic improvement in performance: Dollar output of product per man-hr of work Direct labor efficiency Improvement in the raw material utilization Operated at less of its expense budget Hourly wages gone up accomplished from ‘a loss’ to ‘one of the best in the company’ by itself not so much by any tangible thing that Fisher or management had done “least work for the most pay” “fringe benefits won’t do it, motivator instead of fear” AEC’s history Two young scientists started in a small garage workship convinced of the coming industrial applications for electronics instrumentation After rapid growth and mergers, stabilized at a level of sales in the range of $600 million annually Tightening competition, decided to enter the burgeoning instrumentation field 500 employees Team Structures The manufacturing processes for each of the production units were such that the work of one team was not linked to that of the others 25 different types of instruments Repair, modifications, experimental mockup of regular 4 operations of work: Component assembly Instrument assembly Testing Packaging The Production Workers: 8 women The instrument team production staff were augmented by two men, Alan Glassman and Gerry Ledford An employee’s progression within range was determined by periodic merit reviews.
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