The Business Challenge

After being promoted to manage an engineering polymers manufacturing unit at a major Fortune 100 chemical company site, I spent several months evaluating the operation, observing work practices, and assessing employee skills and organizational capability.

The unit operated with a traditional supervisory structure:

• Base resin production operated 24 hours per day using four crews working 12-hour shifts.

• Downstream extrusion also operated around the clock using four production crews.

• Four shift supervisors provided coverage for the rotating production crews.

• Maintenance, logistics, and technical support personnel primarily worked weekday day shifts, with after-hours call-ins for emergencies.

The organization was experienced and technically capable, but its management structure had not evolved to take full advantage of those capabilities.

I identified an opportunity to fundamentally redesign the organization to reduce fixed costs, strengthen employee ownership, and establish a culture of continuous improvement.
 

The Approach

1. Challenge the Traditional Supervisory Model

My assessment indicated that the experienced production crews possessed the skills and judgment necessary to operate safely and effectively without continuous on-site supervisory oversight.

Rather than immediately eliminating supervisory positions, I developed a phased transition toward self-directed production teams.

The objective was to build an organization in which employees could manage routine operations independently, while management focused on developing capability, improving performance, and removing obstacles.
 

2. Reinvest Supervisory Expertise in Training and Standard Work

When another manufacturing unit requested one of my shift supervisors, I used the transfer as an opportunity to begin restructuring the organization.

I then reassigned the most technically skilled remaining shift supervisor to a new day-shift Training Supervisor role.

This position was responsible for developing structured operator training and standard work to accelerate proficiency, improve consistency, and prepare the organization to sustain performance as experienced employees retired or moved on.

The emphasis shifted from supervising daily activities to systematically developing workforce capability.
 

3. Develop Self-Directed Production Teams

I adjusted the schedules of the two remaining shift supervisors to provide direct, face-to-face coverage for approximately 50% of the production crews' operating time.

During the remaining 50%, crews operated as self-directed teams.

This transitional arrangement allowed us to progressively develop employee ownership, decision-making, and problem-solving capability while retaining supervisory support during the change.

As the teams demonstrated their ability to operate independently, I eliminated the remaining two shift supervisory positions through normal attrition over approximately one year.

The organization transitioned to a day-shift supervisory and training structure supported by capable, self-directed production crews.
 

4. Align Production Schedules With Actual Capacity Requirements

Previous Lean improvements had increased available extrusion capacity.

Rather than continuing to operate downstream extrusion around the clock, I used this additional capacity to consolidate extrusion production into a five-day, day-shift schedule.

As two operator positions became vacant through attrition, I reorganized staffing to support the revised operating model.

This eliminated unnecessary off-shift extrusion operations while maintaining required production capability.
 

The Demonstrated Results

25% Reduction in Manufacturing Fixed Costs

The completed organizational transformation delivered:

• 25% reduction in fixed operating costs.

• Elimination of three shift supervisory positions through transfer and attrition.

• A transition to self-directed production crews capable of operating without continuous shift supervision.

• Structured operator training and standard work to develop and sustain workforce capability.

• Consolidation of downstream extrusion operations from continuous 24/7 staffing to a five-day day-shift schedule.

• Improved productivity and a stronger organizational focus on continuous improvement.

The transformation was recognized with a corporate award for organizational innovation.
 

The Executive Takeaway

The opportunity was not simply to reduce supervisory headcount. It was to create an operating organization that no longer required the traditional level of supervision.

By developing employee capability, establishing standard work, increasing workforce ownership, and aligning staffing with actual production requirements, we created a more productive and cost-effective manufacturing operation.
 

The Lesson: Sustainable fixed-cost reduction comes from redesigning how the organization works—not simply reducing the number of people doing the work.
 

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