Labour Problem

Arka Bose (None) (313 Points)

02 May 2010  

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