Seeking Insights on Implementing Production Incentive Schemes in the Apparel Industry

Hi Friends,

This is a call to my colleagues from the Apparel Industry. I would like to know if you have introduced Production Incentive Schemes in your organization. If yes, could you please share the details of how incentives are paid? We are planning to introduce a production incentive scheme in our organization, and any insights you can provide will be valuable.

-Srinaren

I'm Shahbaz, working as an Industrial Engineer in the apparel industry. We are planning to implement a piece-rate and incentives salary system. Can anyone provide information on the difficulties associated with this system? Please share.

Regards,
Shahbaz

Dear Srinaren and Shahbaz,

I have scanned CiteHR and found a number of similar queries in the past that have had no response. Only https://www.citehr.com/1191-producti...ve-scheme.html has some sound advice from Rajat Joshi, a Senior Member.

I have worked in the UK as an Industrial Engineer and have conducted Method Study, Time Study, and set rates using Ready Work Factor (for electronic assembly tasks) and MTM 2 for packing operations. I have been involved in managing both Individual and Group incentive schemes in both manufacturing and warehouse operations.

What I find lacking in your queries is some information about yourself and what you know, what facilities you have to conduct Method Study and set rates. For example, one of the bloggers who wanted to set rates did not have any training in these methods and had been set the task of setting rates. Also, as Rajat Joshi rightly advises, I do not know the industrial relations set up in your places. Are your employees unionized? If so, what will be its reaction to you introducing incentive schemes, which invariably will involve workers having to produce more than what they are already doing (British Standard equivalent idea is a worker with no incentive will be working at a pace equivalent to walking at 3 Miles per Hour and with an incentive will walk at 4 miles an hour).

Are the outputs of jobs purely under a worker's control or are they dependent on staff that feed them raw material and accessories?

Hence, I suggest that you engage a consultant to give you sound advice after studying your system. However, if you have drawn flow process charts for your operations, then I can advise you from the UK via Skype or Yahoo Messenger chats. If you need any more information, please drop me a private message or contact me by email.

Have a nice day.

Simhan

You can see my profile at by clicking on "About us".

Dear Sir,

I have found the advice very valuable, especially the psychological effect of this system on employees. We are currently on a salary system, approximately 480 machine operators. Now, I think we have to move to an incentive system gradually, not all at once for all 480.

I also have training on time study motion study. I have calculated all the rates and XYZ things. Just wondering what difficulties we will have to face in implementing all these changes.

Thanks for the advice, sir.