Hello,
In my opinion the best way to design a Production Linked Incentive Scheme in any Production Unit is -
1) Seggregate the manpower into two or three categories - Directly related to production, In-directly related to production and Service related manpower like office, hospital, cash, billing etc.
2) Decide a break-even level of production, above which production will attract Incentive. Annual Target may be sub-divided into monthly, daily and shift target (in case of shift working) for this purpose.
3) Best performing shift may be rewarded on daily basis with some cash out of total Incentive money allocated.
4) Ratio of Productive/Semi-productive and service Units may be fixed in the ratio of 40:35:25 or any other proportion deemed fit.
Adequate publicity must be made of the scheme formulated to boost the morale of workforce at all level.
Feel free to discuss.
Best wishes.
Arun Kr. Jain
+919431564226