Implementing Production-Linked Incentives in Custom Manufacturing: How Would You Approach It?

We manufacture fiber parts, and these parts vary in size based on customer requirements. We do not receive repeated orders for the same products. We are interested in implementing production-linked incentives for our workers. Could you please provide guidance on how to introduce production-linked incentives for our staff?

When you have no repeated orders in hand, why should you move for production incentives? If you have an order to be delivered now, make a scheme applicable for this instant order only. Once the order is accomplished, the incentive will also come to an end. That would satisfy the workers as well.

Production-linked incentives

Production-linked incentive is required for organizations where the workload is maximum. There should be a time study and motion study by experts to determine the standard time to produce one product or batch of products. Another important factor is quality. Increased speed of production may lead to more rejections and create unsafe conditions.

Therefore, the production incentive should be linked to the rejection percentage to minimize rejections. Safety-related issues should be addressed separately.

Regards, S K Bandyopadhyay