Incentive Bonus Scheme in Railways

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the output rating of an average worker under non-incentive conditions?

40 units per hour

80 units per hour

60 units per hour (correct)

100 units per hour

How much more can a worker earn under incentive conditions compared to their basic wage?

25%

20%

33⅓% (correct)

50%

What allowance is added for fatigue based on the type of work?

33⅓%

10%

12½% to 25% (correct)

What percentage is added as a general handling & contingencies allowance on operation time?

12½% Signup and view all the answers

How is the allowed time calculated?

Normalized time plus additional allowances Signup and view all the answers

What is the primary purpose of the payment by results incentive scheme?

To increase productivity in workshops Signup and view all the answers

What is the maximum bonus percentage a normal worker can earn under this incentive scheme?

33⅓% Signup and view all the answers

How is the allowed time for work determined under the incentive scheme?

Through time study based on standard practices Signup and view all the answers

Which of the following features is included in the incentive scheme?

Ceiling for time saved is at 50% Signup and view all the answers

When was the first formal incentive scheme introduced in Indian Railways?

1954 Signup and view all the answers

What happens to the time saved beyond 50% under the incentive scheme?

Only 50% of the time saved is considered Signup and view all the answers

Which of the following workshops first implemented the incentive scheme?

Chittaranjan Locomotive Works Signup and view all the answers

Which of the following is NOT a component of the incentive scheme's allowed time?

Contingency time for errors Signup and view all the answers

What is the cumulative hour including the fatigue allowance of 25% when the normalized time for all elements is 1 hour?

1.25 hr Signup and view all the answers

What is the bonus calculated if the cumulative time is 1.406 hours with a bonus rate of 33⅓ %?

0.468 hr Signup and view all the answers

What is the profit calculated based on the saved time of 0.49 hours and total time of 1.97 hours?

33⅓ % Signup and view all the answers

Which of the following factors is NOT mentioned as a reason to allow extra time?

Poor quality of raw materials Signup and view all the answers

Who is responsible for verifying the request for an excess time card?

Inspector Signup and view all the answers

How is the time taken for each operation recorded?

Based on job-card/squad card Signup and view all the answers

What should be the relationship between the inspector and those under the incentive scheme?

The inspector should be independent. Signup and view all the answers

What is considered preparation time?

Time allowed per batch to arrange necessary materials Signup and view all the answers

What happens if the idle time due to machine breakdown exceeds the monthly target?

No bonus is payable to maintenance gangs. Signup and view all the answers

Who is responsible for approving allowed times on job-cards?

The production engineer (PE) Signup and view all the answers

What percentage of job-cards must be sent to the Incentive Bonus section within 48 hours of job completion?

All completed job-cards Signup and view all the answers

Which document is personally checked by the PE/APE to ensure accuracy in time management?

Inspection cum computation sheets Signup and view all the answers

What is the consequence of consistently high profits (>50%) earned by a majority of workers?

Causes must be analyzed and anomalies rectified. Signup and view all the answers

What adjustment is made regarding time lost during a month?

It is adjusted against saved time after applying a ceiling. Signup and view all the answers

What action is taken when losses are consistently observed among workers?

Investigations are conducted. Signup and view all the answers

How are excess time incidents recorded and managed?

Plus-cards are issued and investigated. Signup and view all the answers

What is the primary purpose of maintaining time books by the section supervisor?

To record time spent by each direct worker Signup and view all the answers

What is the function of job cards in incentive shops?

To show the allowed time and details of operations for each worker Signup and view all the answers

What distinguishes squad summary cards from regular job cards?

They are punched by the leading hand and summarize the work of the squad. Signup and view all the answers

How does the idle time card interact with the job card?

Job card is punched OFF when idle time card is punched ON. Signup and view all the answers

What is the purpose of time sheets maintained by the time booth clerk?

To list the monthly wages earned by each worker across work orders. Signup and view all the answers

What is the maximum allowable time for idle-time to be booked against the job-card?

15 minutes Signup and view all the answers

Who is responsible for inspecting and signing job-cards in the Incentive Section?

The shop inspector Signup and view all the answers

Which of the following statements about apprenticeship and incentive schemes is true?

Apprentices cannot be incentivized. Signup and view all the answers

What must be done if idle-time is recorded?

It should be documented in idle-time cards. Signup and view all the answers

What should happen to handwritten job-cards?

They should be certified by the APE/PE. Signup and view all the answers

What happens to time saved in the job card process?

It should not exceed 50% of the allowed time. Signup and view all the answers

What is the role of the time-booth clerk regarding idle-time cards?

They are responsible for punching idle-time based on slips. Signup and view all the answers

Which factor is not a check performed on job cards in the Incentive Section?

The shop supervisor must approve all job cards. Signup and view all the answers

Study Notes

Payment by Results (Incentive Bonus Scheme)

The need for improved productivity in railway workshops was recognized before independence, with piecework bonus systems already in place in some workshops.
A formal incentive scheme, the CLW pattern, was introduced in Chittaranjan Locomotive Works in 1954. It was successful and later extended to other workshops.
The scheme guarantees workers' basic wages.
Work measurement uses time study, following standard practices.
The allowed time is calculated to enable a worker of average ability to earn a 33% bonus (over basic pay).
Time saved or lost on each operation is tracked separately and does not carry over to the next month.
Time saved over 50% is capped at 50% for incentive bonus calculation.
Supervisors up to the chargeman level are included in the scheme.

Types of Workers

Direct Workers (DW): Workers whose work can be assessed using time studies.
Essentially Indirect Workers (EIW): Workers who support the continuity of work, but who cannot be assessed using time studies.
Indirect Workers (IW): Workers who do not contribute directly to production and do not receive incentive bonuses.

Incentive Scheme Mechanisms

Timing of Operations: A systematic comparison of time taken for a job, considering working conditions, quality, and service speed.
Time Study: Work simplification is pre-requisite. Observation of effective/ineffective elements of the work cycle (machine, worker idle time).
Elements: Basic parts of an operation that are regularly combined (variable or constant timing). Effective vs. ineffective time for work is rated.
Synthetic Times: Standard times based on the average of normalized element times from past similar work studies. Data is collected for calculation.
Rating: Assessment of worker skill and effort required to complete the operation. Rating is independent. Average output for a basic wage is 60 rating, to earn a 33% bonus is 80 rating or output.
Normalising: Adjusting the observed time based on the worker's observed rating to arrive at the standard time. Normal time = actual time x observed rating/80, used to calculate the 33% incentive bonus opportunity.

Additional Allowances

General handling & contingencies: allowance of 12.5% on operating time (includes work such as cleaning, grinding tools, etc.)
Gauging on Machining: 5% added if gauging required on machining.
Fatigue: 12.5% - 25% allowance depending on the task
Production bonus: 33.3% allowance

Allowed Time Calculation

Normalized time is calculated by combining each element's normalized time and adding allowances.
Profit = time saved/time taken

Incentive Bonus to Essentially Indirect Workers and Supervisors

Essentially Indirect Workers (EIW) and supervisors receive 80% of the average incentive bonus of direct workers their supervise.
If overseeing non-incentive workers, bonus is calculated based on the ratio of incentivized to non-incentivized workers.

Time Recording and Calculation

Time is recorded using job/squad cards.
Time saved/lost is the difference between allowed and actual time.
Out-turn is the quality of the work based on inspector's assessment of output.
Calculation of profits is based on time saved and time taken.

Other Important Information

Idle time is the time that a worker is not responsible for (no power, machine repair, lack of materials etc.)
There are limits on how much excess time can be taken
Incentive scheme is linked to product demand in the market
There are checks and balances to ensure the system's integrity.
Formats and forms are used for time recording and tracking work. Job cards and time sheets are integral parts of time calculations and documentation.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Explore the history and implementation of the Payment by Results incentive bonus scheme in railway workshops, starting from its introduction in Chittaranjan Locomotive Works in 1954. Understand the various worker classifications and how productivity is measured and rewarded through time studies and bonus calculations.