Hello,
In my opinion, the best way to design a Production Linked Incentive Scheme in any Production Unit is as follows:
1) Segregate the manpower into two or three categories - Directly related to production, Indirectly 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 an Incentive. The Annual Target may be subdivided into monthly, daily, and shift targets (in case of shift working) for this purpose.
3) The best-performing shift may be rewarded on a daily basis with some cash out of the total Incentive money allocated.
4) The 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 the workforce at all levels.
Feel free to discuss.
Best wishes,
Arun Kr. Jain
+919431564226