Emerson’s efficiency plan

Efficiency = Problem 1: Suppose, standard output for the whole day is 800 pcs. Output of operator A = 400 pcs Output of operator B = 640 pcs Output of operator C = 1000 pcs Calculate their earning under Emerson’s efficiency plan. Assume time wage is $10/hour and each day has 8 working hours. Solution: Efficiency of A = Efficiency of B = Efficiency of C =

Earning of A = 8 hours x $10/hour = $80/hour Earning of C = 8 hours x $10/hour + 8 hours x $10/hour x 20% + 8 hours x $10/hour x (125%-100%) = $116 Earning of B = 8 hours x $10/hour + 8 hours x $10/hour x 7.99% = $86.392 Bonus 20% (100-66.67)% E ---- (20-0)% B 1%E ---Bonus (80% - 66.67%)E --= 7.99%

Efficiency Effi 66.67% Effi 100%

Bonus 0%

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