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Nucor Steel, which has an operation in Auburn, New York, is an enigma of sorts. It has the highest paid employees in the steel industry. At the same time it has the lowest labor costs per ton of steel produced than any other player in the industry. How does this happen? At a time when steel production in America has all but disappeared, Nucor is on fire. They can deliver product in 90% less time than competitors. They virtually never have a layoff. Their headquarters are simple rather than palatial. They also have no job descriptions that might limit what an employee would do at work. Further, workers are expected to maintain their own productivity contributions at the highest levels possible. People work hard, no doubt. For this assignment, how specifically does Nucor create such an environment, and would you want to work there? Textbooks in Management are quick to talk about workers having fun at work. Does that idea apply here?
Riverside Metal Works produces cast bronze valves on a five-person assembly line. On a recent day, 180 valves were produced during an 8-hour shift. Calculate the labor productivity of the line.
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