Group Incentive Scheme - How To Manage Payment During Transfers - CiteHR
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Hi
I am designing a group incentive scheme for 10 lines of sewing workers, average output of a particular line of a month exceeded target will be paid a bonus.
I encounter a problem where member of the groups are frequently moving from
one line to another and this make the tracking difficult for bonus payment at the end of the month.
Please suggest any bright idea how to tackle this problem.
Thank you in advance.
Youngky
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Greetings,
This is what we did in case of transfers:
  • Benefits and incentives were based on scorecards in prorated basis.
  • Incase there was a difference in the payouts from one Development Center to another in a different location, we used to communicate it to the employee.
  • This was mentioned in the transfer letters issued to them.
  • The calculation started afresh with each new role. The earlier incentive calculation were free if they were an annual payment. Incase it was a monthly payment, all the dues were cleared.
Hope this answers your question. Please do blog your queries.
Regards,
(Cite Contribution)

Dear Youngky



Instead of answering your query, I will raise questions first to get the scenario clarified. I hope you do not mind that.
  1. How many workers are in a line? Are their work interrelated or independent?
  2. If independent, why do you want to set a group incentive?
  3. Why are people moving from line to line and how often?
  4. Is it possible to consider setting a weekly target instead of monthly?
Monthly target for an activity such as sewing may be too long a period to act as an incentive. Why not daily targets? As I do not know the product mix produced each day, it will be difficult to advise you.

I have worked as a Productivity Services manager in the UK and have conducted, Method Study, Time Study, etc.



You can see my profile at <link outdated-removed> ( Search On Cite | Search On Google )



Also see http://www.bris.ac.uk/cmpo/publicati.../2003/wp71.pdf if that gives any more ideas for you.



Have a nice day.



Simhan

A retired academic in the UK








HI Simhan

Thank you for your prompt reply. In answering your question:

Background Situation:

1)No of sewing line=10, each line 30 sewing girls, types of garment= underwear.

2) member of line are handling different assembling process, so until the 30th workers, the finished garments are made.Different processes vary in time and degree of complexity. The easier ones are the line helper who does not handling machine. Attaching label operation is easier than fixing elastic waistband operation.

3) output can be measured by "finished garment" per line per hour & per day & being recorded. Output per operator (not finished garment, example, no of label or elastic waistband attached/ hour/day) also being recorded. The time taken for each sewing process to finish is being studied and determined by IE applying time study using stop watch. Important to note that increase output in a particular sewing process does not automatically increase the final output.It depends on the co-ordination inside the sewing line. Bottle-neck situation can occur where work-in progress jam in one of the process as each step varies in degree of complexity & time taken. It is important to balance the line by putting more operators & give helper for "critical" processes.

4) Factors influencing output are: workers attendance,styling of garment. Ordered qty of client for a particular styling (the bigger the order the greater the output over time as learning curve & momentum gain over time). Small order tends to go below target as when momentum picks up, the sewing completed. Usually first 2-3 days' output is low & normalized after that.

5) existing incentive scheme - only attendance bonus is available.

6. Often some operators are ordered to move among lines because

a) order in other line are more urgently needed.

b) Lack of operator in some line due to absent of workers.

c) when change of style, the operational steps may be fewer and thus redundant workers have to be moved to another line.

Point 6 pose a question to me now when designing group incentive scheme as follows:

A) if an average output/month/line to be taken as basis for calculation of bonus.

B) If the some operators are switching among lines daily, will this make calculation so tedious that such scheme be abandoned finally. Example, A worked in Line 2 until noon and switch to L3 & that day when L2 output +200 and L3 less 100 pcs. How many score attributable for A? If there are lots of transfer made within a month, how are we going to manage the "average" output per line for incentive calculation?

C) Members in a efficient line may resent some under-performed operator being transfered to their line or may resist order to transfer to another inefficient line. Management fear backfire of the scheme that switching operators between lines becoming difficult eventually.

Your professional advice is highly appreciated.

Regards Youngky
Dear Youngky,
Thank you for the detailed information.
This has helped me, like it has helped you in arriving at a conclusion.
Like you have aptly said towards the end, it is not a situation where you can apply aGroup Bonus Scheme per line. GBS can only be applied when there is a stable group. When people move around so frequently and you have problems of Balancing the Lines, etc., it is not advisable. As you have rightly noticed, you will end up abandoning the scheme if introduced.
Also see http://acas.org.uk <link updated to site home>
Have a nice day.
Simhan
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