1) 2) 24 3) 4) Annexure- B BHARAT HEAVY ELECTRICALS LIMITED (Corporate Office, New Delhi) Ref. No. ANHR/IR/378/3 Subject: Incentive Scheme 2024 for Supervisors (SA1 to SA3A grades) The Management hereby introduce the “Incentive Scheme 2024 for Supervisors” in SA\ to SA3A grades, with a view to enhance the operational efficiency, productivity and increase Physical Output from Manufacturing Shops. The scheme will come into effect from 01.02.2024. Objectives The objective of the scheme is to encourage commitment, enhance the efficiency and inculcate the spirit of greater team work amongst the employees with aim to enhance operational efficiency, improve productivity & production, build adequate work in progress, motivate the supervisors and enable share the gains of higher productivity Scheme Date: 30.01.2024 The details of the “Incentive Scheme 2024 for Supervisors” are as under: The scheme shall be called "Incentive Scheme 2024 for Supervisors". Any other Unit based Incentive Schemes, which were prevalent in any of the Units, will be discontinued on implementation of this Incentive Scheme. It shall extend to all the Manufacturing Units of the Company. Coverage The Scheme shall cover the supervisors in SA1 to SA3A grades engaged in the production activities and other allowed working areas where Incentive is being paid to the workmen. Categorisation of Supervisors SI. | Categorization No. [Employees Nature of Work Dept. / Areas Covered 4, | Direct Supervisors engaged in | a) Production / Supervisors | Manufacturing operations. Manufacturing - | a) Production Planning b) Material Planning & Stores Supervisors. _in_the | c) Product Quality, Testing >, | Ancillary Shop/Factory who extend | d) Product Technology Supervisors _| services to the shop/factory | e) Shop Maintenance in manufacturing operations. ) Central maintenance & Services 9) Central Stores, Central Despatch Page 1 of 4 ate4) 5) Computation of payment The computation of payment of incentive will be as under: Payment to Supervisors will be related to the total Incentive payment made under Individual performance (Part 1) & Collective performance (Part 2) to the Direct Workers in the Shop/Factory as the case may be in accordance with the applicable scheme. The formula for computation will be as under: Incentive payment to Supervisors = 0.8 x (P/Q) x {R/208) x IF P = Total Incentive to regular Direct Workers in the Shop/Factory Q= Total no. of regular Direct Workers in the Shop/Factory R = Attendance hours of the Supervisor IF= Incentive Factor is as under: - Category of Supervisor Incentive Factor Direct 0 Ancillary 08 General Conditions The terms and conditions regarding eligibility/payment under the incentive scheme for supervisors in SA1 to SA3A grades will be as follows: - (1) The Scheme will be implemented after finalization of the standard hour norms and introduction of Incentive scheme in respect of Workmen. All Units shall review and finalize Standard Hour Norms for different manufacturing operations Product wise from time to time. (2) Incentive shall be paid for physical attendance. For a Supervisor to be eligible for Incentive Payment, minimum 18 days of physical attendance in a month shall be required. Subject to minimum 18 days of work, payment of incentive on pro-rata basis may be calculated in case of sanctioned leave for remaining days. The efficiency for the period of tour and Site deputation will be at par with the Individual efficiency of the supervisor at the Shop Floor. Maximum three (03) days absence will be permitted without effecting the Incentive. Beyond three (03) days pro- rata payment will be done. (3) For the purpose of payment under this Scheme, efficiency will be calculated only for the work which is completed during the concerned month and certified for quality & quantity by the Quality Control Department. To ensure desired quality, technology hours shall be allowed only for jobs meeting quality requirements, i.e., no extra time be allotted for rework and rejection caused due to operators errors. ae Page 2 of 4(4) (5) (6) 7) (8) (9) (10) (11) (12) (13) (14) Concerted efforts shall be made continuously to ensure that more and more workers get covered under the Individual Performance based Incentive Scheme for direct work and reduce the incidence of ancillary in the areas under the incentive scheme. In the event of any wilful irregularity in the time booking by an operator, the job will not be considered for this incentive payment. Likewise, in the event of any general irregularity of time booking in a section, the Incentive Scheme may be immediately suspended in that section. The allowed time will be reviewed and established by the Technology Division of the Product concerned. No incentive payment shall be admissible in case any particular machine is under breakdown resulting in no production. Whenever new and faster machines or processes other than those envisaged at the time when the operation was process planned are used, the allowed time may be varied by the management. Similarly, if there are any arithmetical or clerical errors, the ‘allowed time’ can be corrected accordingly by the management which will be open for clarification. With regard to Clocking and booking of Time on Job Cards, Setting the queries on Allowed Time, Extra Time Allowance, Relevant Management Instructions will be operative. Management reserves the right to review the Time Standards i.e. ‘Allowed Time' for any job. Management shalll also have the right to carry out time and motion study wherever required. Whenever it is found that the elements of process laid down by the Technology Division have been deviated by the Operatorigroup of operators without the approval of Technology Division, the Management will have the right to suspend the payment of Incentive to the group of supervisors of the shop for the particular wage period. The payment under this scheme will be on monthly basis. The month for the purpose of this incentive scheme shall be the same as the wage period i.e. 1* day of the calendar month to the last day of the calendar month (208 hours). The payment will be made in the following month. Extra ordinary leave, Sabbatical Leave, maternity leave, Childcare leave, and Study leave shall not be reckoned for the purpose of calculation of the Incentive under the scheme. Period of tour days or days on which time off availed for sports activities will not be reckoned for the purpose of calculation of the Incentive under the scheme. Page 3 of 4(15) The Management reserves the right to review and suitably modify the Incentive Scheme depending on the accomplishment of objectives as stated above. 6) —_ Anyclarification with respect to implementation of the scheme shall be referred to Corporate Office for consideration/approval of Director (HR). This issues with the approval of the Competent Authority. wt, [bos (M. Isadore) Executive Director (HR) Page 4 of 4