INCENTIVE SCHEME FOR WORKSHOP WORKERS By :- ANURAG KAPIL IRAS

WHAT IS INCENTIVE SCHEME Kind of bonus system followed by Indian Railways. Introduced to improve productivity and to increase outturn. First formal incentive scheme in C.L.W. in December 1954. Time is basis of this scheme and the time standards used are predetermined after systematic work measurement. Also known as “the system of payments by results”.

SALIENT FEATURES Basic wages guaranteed to all the workers. Time is the yardstick for measuring work. The system envisages fixation of time standards for each operation through ‘time study’. The ‘allowed time’ is so fixed that the average worker completes an operation in 75% of the allowed time and thereby earn 331/3 % bonus. Allowed time includes allowances for fatigue(12.5% - 25%), general handling(12%), gauging(5%) and production bonus allowance(33.33%).

Contd…. Extra time above the allowed time can be allowed due to:- Excessive machining work Hard material Defects in the machine Change in the batch quantity against a work order. Job cards are the basic document to calculate the incentive.( punched on or off with the aid of job recorders) The results will be determined on the total quantity passed by the Inspector concerned.

CALCULATION OF INCENTIVE DW incentive = Total Saved Hours X Hourly Rate (Total Saved Hours subject to maximum profit ceiling of 50% of time taken) Total Saved Hours = Total Allowed Time – Total Time   Taken Hourly Rate of Pay = Total Wages + Leave Salary No. of Hrs. of Attendance + No. of Hrs. on Leave With Pay

REVISED INCENTIVE SCHEME The actual Allowed Time for each activity to be reduced by 12%. Reduction in Allowed time is achieved by reducing Fatigue Allowance from 25% to 12.5% Contingency Allowance from 12.5% to 10% EIWs should be less by15% of the DW’s.

WORKING OUT OF ALLOWED TIME Before September 99 After September 99 Description Rate Time Cum.Time Diff. Diff.% Normalised Time   1 Fatigue Allowance 25% 0.25 1.25 12.50% 0.125 1.125 Contingency Allowance 0.156 1.406 10% 0.113 1.238 Production Bonus 33.33% 0.469 1.875 0.412 1.65 Total Allowed Time(W/OGA) 0.225 12% Gauging Allowance 5% 0.094 1.969 0.082 1.732 Total Allowed Time(WGA) 0.237  

Contd……….. Calculation of the Direct Worker be done by dividing the modified activity by 267 ie. number of working days in the Work Shops. Strength of Supervisors to be calculated afresh. Minimum number of Supervisors should be there depending on the requirement of the workload. No Over Time should be paid to the staff, which is covered under the incentive scheme.

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