Technical Report
 

Improving productivity through internal contracting

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https://ir.library.oregonstate.edu/concern/technical_reports/tm70n115w

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  • The Northwest forest products industry has been under severe economic pressure for the past several years. Many Northwest forest products companies have gone out of business entirely and others have closed portions of their operations. This monograph describes how one company has instituted a productivity improvement program to reduce its cost of operations in a particular area. ITT Rayonier was faced with converting from a unionized employee work force to less costly contract vendors. Instead it developed an internal contracting system that has proven to be an effective approach to reducing costs with company employees even as the company's volume of business has increased. The employees have also benefitted from this plan by retaining their jobs plus gaining bonus opportunities related to the cost savings. Both the company and employees have benefitted from the maintenance of a good relationship between the company and the employees' union, and both parties have benefitted from the improvements in workers' morale. ITT Rayonier calls this program of internal contracting "The POD System."
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  • File scanned at 300 ppi (Monochrome) using ScandAll PRO 1.8.1 on a Fi-6770A in PDF format. CVista PdfCompressor 4.0 was used for pdf compression and textual OCR.
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