Week 7 - Jan 11- 18, 2020
1. A rate of 0.42 min/pc is set for forging operation. The
operator works on the job for full 8 hr duty and produces
1,500 pieces. If the base rate is $9.80/hr, compute the
earnings for the day.
Given: Std Time/pc = 0-42 min/pc
Output = 1500 pcs
Base Rate = $9.80/hr
Compute: Earnings/day if a. Output based (Wage)
b. Time Based (Fixed Salary)
Solution:
a. Output Based: 0.42min x 1hr x 1500 pcs x $9.80
pc 60 min hr
= $ 102.9 for the day
b. Time-based : $ 9.80 x 8hrs = $78.40 for the day irregardless of outputs produced
hr
Improshare (Improved Productivity thru Sharing) – developed
by Mitchell Fein in 1974
Gainsharing program under which bonuses are based upon the
overall productivity of the work team
Designed to produce more products in fewer hours of direct
and indirect labor
Computes the work hours saved for a given number of unit
produced, to hours required to produce the same number of
units during a base period
To illustrate:
Assume that in a single plant, 122 employees produced 65,550 units
over a 50 week period. If the total worked hours were 244,000 the
work hr std is 3.725 h/unit (244000 total hrs)/6550units).
If in a week, 125 employees worked a total of 4,908 hrs and
produced 1,650 units, what would be the value of the output of that
week? If the employer agrees to share half of the saved, how much
incentives would the employee get to employees
Sample Computation
Work hr std = total productive hrs
units produced
To illustrate: wk hr std = 3.725 h/unit
no of units produced = 1,650/ wk
no of hours work = 4,908 hrs
output value = 3.725 x 1650 = 6,146.25 hr
Hrs gained = 6,146.25 – 4908 = 1238.25 hr.
% share = 50% (1,2398.25) / 4908 = 12.6%
Base Pay Computation
1. In a given Plant, An Operator works on the job for full 8 hr duty and produces 2000
units. A rate of 30 sec/pc is set for that stomping operation..
a. If the base rate is $10/hr, compute the earnings for the day.
b. How many standard hours does the operator earn?
c. What is the operator’s efficiency for the day?
d. What would be the proper piece rate for this job? Assuming that the standard
time is correct?
Base Pay Computation
2. In a given manufacturing plant, a standard rate was computed based on the
70,000 units produced by 100 operators over a period of 6 month, accumulating a
total of 280,000 man-hours.
a. If in a week, the same 100 employees worked a total of 4,900 hrs and
produced 1,750 units, what would be the value of the output?
b. If the employer agrees to a 60% – 40% sharing from the savings, how much
incentives would each employee get?
c. What would be his total Base Pay at if the employee if they’re receiving a
minimum wage of Php 500
Incentive Plans - ImproShare
3. In a plant, a worker is regularly employed at a job for which a guaranteed rate is $8.80.
This worker’s regular earnings are in excess of 88/day. Due to the pressure of the work,
the operator is asked to help out on another job, classified to pay $10/hr. This employee
works 3 days on this job and earns $80 each day.
a) How much should an employee be paid for each day’s worked on new job? Why?
b) Would it make any difference if the operator had worked on a new job for which the
base rate is $8/hr and had earned $72? Explain?
