Mike Beck gave an excellent presentation at the Deming Institute conference about the United Technology Corporation management improvement system. I plan on posting more about the session. But for now, here is article that has some details on what UTC has done.
The Unsung CEO [the broken link was removed], Business Week, cover story Oct, 2004:
The program covers every employee, from the veteran elevator technician in Zimbabwe to a fresh-scrubbed office assistant in Tyler, Tex., with some education benefits even extending to laid-off workers. And, for each degree earned, employees get up to $10,000 in UTC stock or options.
Dr. Deming advocated such a commitment to education. I don’t know of any company putting this much money behind the concept.
One recent result: more logical placement of elevator parts — using special boxes instead of loose bags — that trims $300 off the cost of each elevator and will lead to $26.4 million in savings worldwide this year. More important, the factory floor was reconfigured so that the production process was compact — requiring fewer steps, less reaching, and easier access to parts — as well as more intuitive. There are even taped outlines on floors and surfaces, much like the outlines of bodies at crime sites, to show exactly where each widget should go. This is the “5-S” strategy — sort, straighten, standardize, sustain, and shine.