result, the staff assignment system is not flexible enough to
accommodate suddenly lower market demand for some of
the company’s products.
Strictly speaking, labor reduction means that even when
the market demand drops or automation advances, the company
does not decrease the number of its workers. Instead,
the company only reduces the amount of labor the workers
perform. Personnel costs remain the same.
Staff reduction means reducing the number of staff when
demand goes down or when automation makes workers
redundant. The redundant workers are still kept within the
same rigid staff assignment system. This has nothing to do
with market fluctuations, but is done simply to reduce staff
at certain jobs.
By contrast, manpower reduction means promptly changing
staff assignments at each process in the factory to reflect
the latest market changes. Once it is known what the current
client orders are, the factory produces exactly that volume of
products while using only the smallest required number of
staff. Obviously, this system requires a flexible staff assignment
system instead of a rigid system.
Staff
Reduction
Manpower
Reduction
Labor
Reduction
(Rigid staff
assignments)
Less labor by
existing staff
Reducing staff
regardless of
market changes
Maintaining
minimum staff
needed to meet
market changes
Market changes
(Rigid staff
assignments)
(Flexible staff
assignments)
Market changes Market changes
....
Figure 2.11 Labor Reduction, Staff Reduction, and Manpower
Reduction.
Thus, the basic principle of JIT manpower reduction is
prompt and flexible adaptation of factory operations and staff
assignments to incorporate current market trends. As such,
JIT manpower reduction goes hand-in-hand with a flexible
production system and contingency management.
The following essential items enable such manpower
reduction and market adaptability.
Flow manufacturing—One-piece flow manufacturing in
pace with market demands is essential for JIT manpower reduction.
Instead of allowing materials and products to pile up,
one-piece flow manufacturing turns out just what is needed,
just when it is needed, and in just the required amount.
Multi-process handling—This means linking production
equipment in lines that suit the flow of products, and having
each operator handle several processes within the flow manufacturing
system. This requires that operators stand (and
walk) while they work, and that they be trained in various
equipment-operating skills.
Separating human work and machine work—This
process begins by grouping all the little “islands” of operators
and their equipment into a flow-oriented line (or manufacturing
cell), thus placing together both people and machines.
Next, the operators get trained in multi-process handling and
are taught how to separate their work from the machine’s
work. Finally, they work out ways to reduce human work
(such as in setting up and removing workpieces) by changing
conveyor configurations or other means.
Movable machines—No matter how brilliant an improvement
plan is, it may end up in the trash can if machines are
unable to be moved to positions specified by the plan. Needless
to say, such obstacles can put a damper on enthusiasm for
improvement. The worst offenders are the machines that have
been bolted to the floor, seemingly stuck there for eternity.
Since the market is always changing and improvements make
progress from day to day, it only makes sense that equipment