4 About a month ago an engineer made an outstanding improvem

4. About a month ago an engineer made an outstanding improvement in a process. His company produces ap- proximately 300,000 parts per year through the process, and the direct labor savings alone amounts to approximately $0.40 per part. The supervisor of the de- partment in which the process is located has compli- mented the engineer on his achievement, but no one else in the plant has done anything more than mention it to him. What, if anything, should the engineer do?

Solution

Everyone including the engineer must do their best for the company. Team work is essential.

The total labour saving = 300,000 x 0.4 = $ 120,000. If the supervisor could get everyone to work, they would have saved a lot more.