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suggestion program.
It takes the spirit of the traditional suggestion system and adapts
it to a Total Quality-type environment. Said McDermott: “It
differs from a traditional system in two basic ways: (1) The employees
drive their own ideas to completion, and (2) It works.”
Toyota, USA,
using the employee-driven idea system approach, increased suggestion
program participation from 12.5% to 93.2% within only three years.
Toyota employees have seen 98.9% of their 38,000 improvement ideas
implemented in a single year!
Some companies
hit 60% participation rates in the first year of implementing such
a suggestion program. Meanwhile, employee participation in traditional
suggestion programs averages about 10%.
What’s
Wrong with Traditional Suggestion Programs?
Asked what’s
wrong with the traditional-type suggestion programs, McDermott said
the traditional suggestion programs focus on financial rewards and
bottom-line savings to the company. Consequently, small ideas that
bring small savings and small employee rewards go unsubmitted or
unimplemented.
In contrast
to the old-type employee suggestion program, the employee-driven
idea system focuses on employee involvement. All ideas are equally
rewarded with token rewards – perhaps a couple dollars to
an individual for an idea, or a dollar to each member of a team
for a team idea. Small ideas are suggested and implemented, and
the small, continuous improvements build on one another. At Toyota,
for example, 85% of employee ideas are approved for implementation
within five days.
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