Piece rate usually an advantage to the client because of the outcome production end result that the client is consuming but in the side of the principal may produce a complex waste production that may involve.
The management of piece rate is conservative on the total cost per bulk considering the statutory counterparts projecting in averaging matrix and should not be base on the standard output unless otherwise you are operating in a precise schedule (raw materials, volume, time frame, etc) and the challenge of piece work/rate remarkably be appreciated when the workers are new or fast moving.
contracts and other regulatory labor employment are technically the same with the regular production, but only varies on the guidelines and procedures.
21st May 2016 From Philippines, Cagayan de Oro
Mot of the MNCs get maximum of their spare parts on piece rate contracts just to make final assembly of the end product. But, they have very perfect monitoring and quality control processes before they accept the product.
So, unless proper monitoring and quality control is exercised, piece rate contract sometimes become quite expensive leading to wasteful production and/or huge waste of raw material, as rate contract workers usually try to produce more and more products as against desirable quality. So, you can resort to piece rate contract only if you can ensure tight monitoring and quality control processes at the company level.
23rd May 2016 From India, Delhi