Alcoa’s Michigan Casting Center runs the business from the bottom up

Citation

Groszkiewicz, D. (2006), "Alcoa’s Michigan Casting Center runs the business from the bottom up", Human Resource Management International Digest, Vol. 14 No. 6. https://doi.org/10.1108/hrmid.2006.04414fad.002

Alcoa’s Michigan Casting Center runs the business from the bottom up

Alcoa’s Michigan Casting Center runs the business from the bottom up

Groszkiewicz D., Warren B.Journal of Organizational Excellence, Spring 2006, Vol. 25 No. 2, Start page: 13, No. of pages: 11

Purpose – To explain how Michigan Casting Center (MCC) achieved quality improvement and enhanced profitability by implementing the Alcoa Business System. Design/methodology/approach – Describes the problems facing the plant at the start of the decade, including high scrap rates and poor customer delivery performance, low employee morale and high labour turnover. Points out that MCC operated with proprietary equipment and processes and therefore needed to focus on the human aspect of production. Explains how a “model line” was organized to produce the product with the greatest operational and quality issues. States that the aim was to stabilize and standardize as many of the operational, safety, people and quality issues as possible during 2000. Shows how standardization and operator training improved model line operating equipment efficiency (OEE) between 2000 and 2003. Notes that for the first time measurement was undertaken at the product level across all the processes involved, with model line metrics posted where all plant associates could see them. Comments on the sense of ownership that this created amongst operators assigned to the model line and the enthusiasm of others to see the approach extended to their own area. Highlights this as an important step in the transition to an empowered team focused on common goals. Compares the traditional manufacturing organization structure previously used at MCC with the flow path management organization structure. Discusses organization for product line accountability and the way a new operating philosophy evolved at MCC. Originality/value – Shows how operational improvement was achieved by increasing worker engagement.ISSN: 1531-1864Reference: 35AJ027

Keywords: Empowerment, Organizational structures, Quality improvement