The existing incentive system of a certain factory is:
Normal working week:: 5 days of 9 hours each plus resorting to overtime of 3 hours for 3 days.
Rate of payment : For day work - Rs 20 per hour.For overtime - Rs 30 per hour.
Additional bonus payable : Rs 25 if worker is not resorting to overtime,Rs 40 is the worker resorts to overtime.
Average output per operative for 54 hour week i.e normal working hours plus 3 hours late sitting for 3 days- 120 articles
In order to increase output and eliminate overtime it was decided to switch on to a system of payment by results.The factory is considering the introduction of some incentive scheme or to make payment on piece work basis. Assuming that 135 articles are produced in a 45 hour week and the additional bonus under the existing system is discontinued in the proposed scheme,calculate :
Weekly earnings in a) existing time rate scheme b) Rowan plan c) Halsey plan
The following information is obtained:
Time rate Rs 20
Basis time allowed for 15 articles is 5 hours
Premium bonus - Add 50% to time
Please help
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