There is no point in moving capital and goods and in having work done before there is a paying customer. Labour costs are not significant if most of the overall production cost depends on other expenses such as the use of machinery and raw materials. It would likewise make no sense to move the factory to a developing country unless there was a skilled labour force there. Here labour costs account for only a few per cent of the price of a finished product. Savings also mean needing fewer supervisors and quality controllers than there are in an assembly line factory.
Employees get a share of the savings in the form of idea bonuses.
The cell production model has also improved job satisfaction. An ordinary working day can look very convivial. A few employees just sit and the work seems to advance slowly. According to Pylkk nen effective production at ABB does not demand an especially tight rhythm of work. Seeking maximum benefit from an expensive machine often means shift work.