| Re: production incentive Depending on the production capacity installed, we have made slabs on monthly basis as under
from 60,000 kg to 68,000 kg..........we give rs. 2/kg
from 68,000 kg to 78,000 kg..........we give rs. 4/kg
above 78,000 kg...........................we give rs. 6/kg
for e.g
if Jan production is say 80,000 than incentive becomes
(68000-60000) x 2 + (78000-68000) x 4 + (80000-78000) x 6 = 68000
if jan production is say 75000 than incentive is
68000-60000 x 2 + 75000-68000 x 4 = Rs 44000
This incentive is divided among all the people in all departments involved in produiction.
There is one drawback in above on which I am working and that is inclusion of quality parameters in the calculations. Please advise if you have better ideas!!! |