Provided to each operation or stage of manufacture. Hence, a job to manufacture oneitem may have several operation cards
Contains data such as Batch quantity, Quantity produced, Number of rejected units etc
Idle time card
simply record the amount of time a particular employee is left idle, or unoccupied
also records the reason for idle time, for example machine breakdowns, materialshortages or bottlenecks
Employee record card
records the personal details of an employee, for example, address, employee number,payment scheme, pay rate, contact numbers, skills etc.
How do we determine the correct time spent by employees on production?
carefully analyse all the relevant records (time sheets, attendance records, job cards,piecework tickets etc)
identify occurrence of idle time (idle time? ~ the amount of time an employee is unoccupied)
How do we accurately calculate wages paid to employees in accordance to their paymentscheme?
correctly identify their respective payment scheme (perhaps by way of coding)
thoroughly understand the underlying concepts and applications of the various paymentschemes
2.Elements of costs
Payment for labour or services to a worker, especially remuneration on an hourly,daily, or weekly basis or by the piece.
is a form of
from an employer to an employee, which isspecified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis.
Compensation paid to an employee or employees for achieving a particular target or organisational objective.
This is above and beyond a salary or wage
3.Calculation and accounting for the different payment schemesa.Basic pay (time-based pay)
employee is paid for the number of hours worked at a basic rate per hour
Basic pay = hours worked * hourly rate
Simple to understand and administer
Simplifies wage negotiations – use only one rate
No incentive to increase output
Employees in the same grade are paid the same rate regardless performance
Constant supervision is necessary
A variation of the basic pay system, however the rate is higher because the time workedis over and above the normal working hours
Refer example from page 66OT scheme: time & half for weekly hours > 40 hoursEmployee A: works 50 hours; that extra 10 hours were spent on Job XHourly wage rate: RM6
A’s weekly wage:2