An incentive compensation plan with an eye on quality

Article Abstract:

An incentive compensation plan for employees helped Varian X-Ray Tube Products, a unit of Varian Associates Inc., motivate their employees to improve the quality of their products. This, in turn, enhanced customer satisfaction. The quality improvement project known as Operational Excellence was started in the late 1980s. The introduction of the incentive plan for employees helped to reduce the cost of quality by 35%. The total yield and market share increased, while the number of dead-on-arrival tubes decreased. The project also improved the interpersonal relations between the employees.

Management, Product quality, Reports, Employee incentives, Customer satisfaction, VAR, Varian Associates Inc.

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Six Sigma's missing link

Article Abstract:

A method of using normal distribution curve mathematical tables to calculate sigma ratings is proposed. Excel spreadsheets and tables which enable the user to insert their own data to measure business performance are presented.

Methods, Management science, Usage, Measurement, Management information systems, Business success

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