Production Incentive - Incentive Ideas - CiteHR
Mohit Kapoor
Tzveti
Hr & Communication Specialist

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All friends are requested to give ideas or existing policy for introducing production incentive scheme in our factory.
we are biscuit manufacturing company with 400 employees directly attached with production.
looking for early reponse .
thanks
vivek

It depends on the kind of production. I work in production company too, and we have bonus system based to the quality, quantity and personal performance.
Hi vivek
i am also running a manufacturing unit and we usually give incentive as
for production upto say x: rs. 2 per unit
x to y: rs 3/unit
y to z: rs. 4 per unit
the total of above is divided into all persons.

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!!!

hi mohit , the scheme you have described a excellent scheme but can u plz give me the idea about how u determined the per unit incentive of each slab.
see, there is no specific formula to derive per unit rate. it depends on how much you are willing to pay for current levels of production and how much shouldvthe worker earn to actually motivate him to achieve higher levels.........so basically what i mean is it is at your own discretion.
so on what dimesion did u calculated the per unit price.i am on a project work the same area.
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