All friends are requested to give ideas or existing policies for introducing a production incentive scheme in our factory. We are a biscuit manufacturing company with 400 employees directly attached to production. Looking for an early response. Thanks, Vivek.
From India
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2From India
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It depends on the kind of production. I work in production company too, and we have bonus system based to the quality, quantity and personal performance.
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Hi Vivek,
I am also running a manufacturing unit, and we usually give incentives as follows:
- For production up to 'x': Rs. 2 per unit
- For production between 'x' and 'y': Rs. 3 per unit
- For production between 'y' and 'z': Rs. 4 per unit
The total of the incentives above is divided among all the employees.
From India, Delhi
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I am also running a manufacturing unit, and we usually give incentives as follows:
- For production up to 'x': Rs. 2 per unit
- For production between 'x' and 'y': Rs. 3 per unit
- For production between 'y' and 'z': Rs. 4 per unit
The total of the incentives above is divided among all the employees.
From India, Delhi
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Depending on the production capacity installed, we have made slabs on a monthly basis as follows:
- From 60,000 kg to 68,000 kg, we give Rs. 2/kg.
- From 68,000 kg to 78,000 kg, we give Rs. 4/kg.
- Above 78,000 kg, we give Rs. 6/kg.
For example, if the January production is, say, 80,000 kg, then the incentive becomes:
(68,000-60,000) x 2 + (78,000-68,000) x 4 + (80,000-78,000) x 6 = Rs. 68,000
If the January production is, say, 75,000 kg, then the incentive is:
(68,000-60,000) x 2 + (75,000-68,000) x 4 = Rs. 44,000
This incentive is divided among all the people in all departments involved in production.
There is one drawback in the above, on which I am working, and that is the inclusion of quality parameters in the calculations. Please advise if you have better ideas!!!
From India, Delhi
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- From 60,000 kg to 68,000 kg, we give Rs. 2/kg.
- From 68,000 kg to 78,000 kg, we give Rs. 4/kg.
- Above 78,000 kg, we give Rs. 6/kg.
For example, if the January production is, say, 80,000 kg, then the incentive becomes:
(68,000-60,000) x 2 + (78,000-68,000) x 4 + (80,000-78,000) x 6 = Rs. 68,000
If the January production is, say, 75,000 kg, then the incentive is:
(68,000-60,000) x 2 + (75,000-68,000) x 4 = Rs. 44,000
This incentive is divided among all the people in all departments involved in production.
There is one drawback in the above, on which I am working, and that is the inclusion of quality parameters in the calculations. Please advise if you have better ideas!!!
From India, Delhi
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hi mohit , the scheme you have described a excellent scheme but can u plz give me the idea about how u determined the per unit incentive of each slab.
From India, Calcutta
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From India, Calcutta
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There is no specific formula to derive the per-unit rate. It depends on how much you are willing to pay for current levels of production and how much the worker should earn to actually motivate them to achieve higher levels. So basically, what I mean is it is at your own discretion.
From India, Delhi
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From India, Delhi
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Incentive scheme - Differently abled employees.pdf