Royal Motors is an auto manufacturer. Until recently, the company has operated as an assembly line. The

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Royal Motors is an auto manufacturer. Until recently, the company has operated as an assembly line. The chassis started at one end of the factory, and as it moved through the plant, parts were added until a completed car emerged from the other end of the plant.

Royal Motors has recently decided to change to a cell manufacturing approach. A cell is composed of a team that completes an entire car in a relatively small area, and parts are brought to the cell for assembly. Workers have multiple skills that allow them to perform many different operations, rather than a single operation on an assembly line.

On the assembly line, a worker was evaluated by how well he performed a single task. The work performed by the individual workers of the cell-manufacturing team is not as easily identifiable.

How should Royal Motors change performance measures to accommodate cell manufacturing?

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Management Accounting In A Dynamic Environment

ISBN: 9780415839020

1st Edition

Authors: Cheryl S McWatters, Jerold L Zimmerman

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