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9-30-09 - Employees have freedom to experiment Iverson –...

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9/30/2009 189 Nucor 2005 Steel company Lean Design Low Bureaucracy Use scraps steel as input Lightly decentralized Each Plant is Profit center Focus is cost reduction (cost leadership) 4 incentive process - Low base salary (75% of industry) - High bonus - Team based bonus - If your machine is down, no bonus - Little abuse - Maintenance Makes Steel sheets and joints Was a conglomerate - Buy out small companies - Sell non profitable No R&D Process innovation – comes from workers (innovation is bottom up)
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Unformatted text preview: Employees have freedom to experiment Iverson – “Failure to take risk is to fail.” Buyers -Auto industry-Large Construction Companies More organic / Flexibility No Layoffs Family friendly Loyalty First mini mill About 80 firms but 22 were filing bankruptcy Software were made on their own in their individual plants to keep the company innovated No Union The system is inimitable...
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