Pod Production; it's not a new style of pea picking but the latest production method adopted by R. Griggs, the company behind Dr Martens.

The Dr Martens factory in Whetstone, Leicestershire employs more than 300 people, producing 55,000 pairs of shoes a week.

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Since our visit, Dr Martens has announced that it is shutting its factories in Britain Production will be moved to China The company says it will be cheaper to make its boots there 1,000 jobs will be lost in Northamptonshire, Leicestershire and Somerset

It has recently introduced Pod Production where workers are divided into individual cells made up of 17 people.

Responsibility

Each pod is responsible for its own production.

Staff work 39 hours a week but each pod can divide that time how they wish.

For example, if a pod wants to work four long days and have a day off they can do so.

And for every extra 100 pairs of shoes each pod makes over their target, they get extra money.

Workers can earn up to �411 a week or �20,000 - a good rate for shoe workers.

Troubles

But Griggs has had its share of troubles.

It recently announced it was closing its Somerset plant because of the downturn in the US market.

That leaves it with four factories in the East Midlands.

R. Griggs isn't alone. The shoe industry, like many others has declined substantially.

Down at heel

There are now only about 20 manufacturers left in the UK.

The decline began in the 1950s, when cheaper imports began coming into the UK.

The mass market for shoes is very price-sensitive and in the UK, labour is 30% of the cost of production.

Those shoemakers which have survived tend to be at the high-margin, craft end of the market - like Church & Co, now a subsidiary of Prada - or in a niche market, like Griggs.

An endangered species

Bristol used to be an international shoe making centre, with more than 10,000 people working in the industry before World War II.

Now there are none, though 100 workers are still employed at a shoe manufacturer's distribution depot.

Northampton is probably the town most associated with the industry in the UK.

But times have changed.

In the late 1990s, manufacturers employed 27% of the working population in this town of about 200,000.

Now it's 20% and falling.

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Student Guide

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Dr. Martens started life as workmen's boots. They're tough, comfortable and last a lifetime.

Suddenly, they became a fashion icon and were to be found on the feet of the cool and trendy.

To stay in the market, the boots must still be priced competitively - so the staff at R. Griggs, which makes them, must ensure that production is efficient.

Overseas competition

In some other parts of the world, wages are much lower than in the UK.

As it costs much less to employ people, shoes can be made more cheaply.

R. Griggs has got to work hard to keep costs down.

It has reorganised the way it makes boots in one factory in order to be more efficient.

Businesses often re-jig production to cut costs; at R. Griggs, they introduced cell production.

Why cell production?

The work force is divided into teams - or cells.

Each cell takes responsibility for part of the production process or even all of it.

At R. Griggs, each cell does everything but the cutting and stitching.

It is responsible for:

Organising itself

Planning output

Meeting order deadlines

Quality

Multi-skilled

Everyone in the team is multi-skilled so they can carry out all the tasks needed to produce the boots.

This has a couple of advantages.

If someone is away, production does not stop because another member of the team can fill the gap.

If people can carry out all parts of the process, they will discover where their expertise lies and can be used most effectively.

Some people get bored if they do the same thing all the time, so having a variety of skills means they can do a range of things and keep boredom at bay.

If people are bored, quality can fall and output may be rejected.

Just think...

How would the introduction of cell production work in a business you know about?

What motivates?

Working in cells means being responsible and receiving the rewards for increased production.

At R. Griggs, this might mean more money or the flexibility to have a day off if targets are met in four days.

Many people are motivated when they have the ability to control how they work. They get more satisfaction from their work because they:

must work together

don't get bored

must take responsibility

see the results of their decisions

Sticking points

Sometimes this sort of management can be difficult to introduce because people are not used to taking responsibility.

If people have been told what to do all their working lives, having to make decisions can be a challenge.

It often means a change in the culture, or attitudes of people in a business.

If the culture is positive and everyone works together well, the business should thrive.

People will always be looking for better ways to do things in order to make their cell succeed and achieve its target.

Just think...

What motivates you to work?

What changes would encourage you to work harder?

Where can cells work?

R. Griggs is in the production business.

It is easy to see how cells work because it is easy to count the number of pairs of boots that they have made.

Cells can be just as effective in service industries as well.

Groups of people can work together to decide how to meet targets when selling or looking after people.

Because they have to make the decisions and be responsible for the outcomes, they feel much more involved with the process and are likely to be more effective.

Just think...

Choose a service industry and work out how cells might help to increase efficiency.