Incentive Bonus Scheme in Railways
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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%
  • 33â…“% (correct)
  • 50%

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

  • 33â…“%
  • 10%
  • 12½% to 25% (correct)
  • 5%

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

<p>12½% (A)</p> Signup and view all the answers

How is the allowed time calculated?

<p>Normalized time plus additional allowances (D)</p> Signup and view all the answers

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

<p>To increase productivity in workshops (A)</p> Signup and view all the answers

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

<p>33â…“% (D)</p> Signup and view all the answers

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

<p>Through time study based on standard practices (B)</p> Signup and view all the answers

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

<p>Ceiling for time saved is at 50% (D)</p> Signup and view all the answers

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

<p>1954 (D)</p> Signup and view all the answers

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

<p>Only 50% of the time saved is considered (D)</p> Signup and view all the answers

Which of the following workshops first implemented the incentive scheme?

<p>Chittaranjan Locomotive Works (B)</p> Signup and view all the answers

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

<p>Contingency time for errors (A)</p> 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?

<p>1.25 hr (A)</p> Signup and view all the answers

What is the bonus calculated if the cumulative time is 1.406 hours with a bonus rate of 33â…“ %?

<p>0.468 hr (B)</p> 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?

<p>33â…“ % (B)</p> Signup and view all the answers

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

<p>Poor quality of raw materials (A)</p> Signup and view all the answers

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

<p>Inspector (D)</p> Signup and view all the answers

How is the time taken for each operation recorded?

<p>Based on job-card/squad card (D)</p> Signup and view all the answers

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

<p>The inspector should be independent. (A)</p> Signup and view all the answers

What is considered preparation time?

<p>Time allowed per batch to arrange necessary materials (D)</p> Signup and view all the answers

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

<p>No bonus is payable to maintenance gangs. (A)</p> Signup and view all the answers

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

<p>The production engineer (PE) (D)</p> 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?

<p>All completed job-cards (D)</p> Signup and view all the answers

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

<p>Inspection cum computation sheets (B)</p> Signup and view all the answers

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

<p>Causes must be analyzed and anomalies rectified. (A)</p> Signup and view all the answers

What adjustment is made regarding time lost during a month?

<p>It is adjusted against saved time after applying a ceiling. (D)</p> Signup and view all the answers

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

<p>Investigations are conducted. (A)</p> Signup and view all the answers

How are excess time incidents recorded and managed?

<p>Plus-cards are issued and investigated. (A)</p> Signup and view all the answers

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

<p>To record time spent by each direct worker (C)</p> Signup and view all the answers

What is the function of job cards in incentive shops?

<p>To show the allowed time and details of operations for each worker (B)</p> Signup and view all the answers

What distinguishes squad summary cards from regular job cards?

<p>They are punched by the leading hand and summarize the work of the squad. (D)</p> Signup and view all the answers

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

<p>Job card is punched OFF when idle time card is punched ON. (D)</p> Signup and view all the answers

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

<p>To list the monthly wages earned by each worker across work orders. (D)</p> Signup and view all the answers

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

<p>15 minutes (C)</p> Signup and view all the answers

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

<p>The shop inspector (A)</p> Signup and view all the answers

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

<p>Apprentices cannot be incentivized. (C)</p> Signup and view all the answers

What must be done if idle-time is recorded?

<p>It should be documented in idle-time cards. (B)</p> Signup and view all the answers

What should happen to handwritten job-cards?

<p>They should be certified by the APE/PE. (A)</p> Signup and view all the answers

What happens to time saved in the job card process?

<p>It should not exceed 50% of the allowed time. (D)</p> Signup and view all the answers

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

<p>They are responsible for punching idle-time based on slips. (A)</p> Signup and view all the answers

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

<p>The shop supervisor must approve all job cards. (C)</p> Signup and view all the answers

Flashcards

Payment by Results (Incentive Bonus Scheme)

A payment system that rewards workers based on their output and performance. Workers earn a bonus for exceeding a set minimum target.

CLW Pattern of Incentive Scheme

A type of incentive scheme introduced in 1954 at Chittaranjan Locomotive Works, focusing on rewarding workers who exceeded the expected output.

Time Study

A method used to determine the standard time required to complete a specific task. It involves observing and analyzing work processes to establish efficient timeframes.

Allowed Time

The time allocated for a task, accounting for potential interruptions, fatigue, and other factors.

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Normal Ability Time

The target time a worker is expected to complete a task within to earn the full bonus.

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Time Saved

The percentage of the allowed time a worker saves by completing a task faster than expected.

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Time Saved Ceiling

A limit set on the maximum amount of time saved that can be used to calculate bonus. This prevents workers from earning excessively high bonuses from huge time savings.

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Supervisor Incentive

The supervisors involved in the incentive scheme, up to the level of chargemen, are also eligible for bonuses based on the performance of their team.

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Rating

A measure of a worker's performance compared to a standard output rate. A rating of 60 means the worker produces 60 units per hour, while 80 means they produce 80 units per hour, earning a 33â…“% incentive bonus.

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Normalizing Time

The process of adjusting the observed time of a task to account for a worker's performance rating, ensuring consistency in time calculations.

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General Handling & Contingencies Allowance

A percentage added to the normalized time to account for factors like cleaning, tool preparation, and gauging, ensuring the time allocation is realistic.

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Fatigue Allowance

An allowance added to the normalized time to account for the physical and mental strain of continuous work, ensuring worker well-being.

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Production Bonus

An allowance added to the normalized time to incentivize workers to produce more, encouraging increased output and efficiency.

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Preparation Time

Time allowed for tasks like receiving materials, instructions, and tools before starting a batch of work.

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Extra Time

Additional time granted for factors beyond a worker's control, like extra machining work on materials, handling hard materials, machine defects, or changes in batch quality.

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Time Taken

The total time clocked by a worker for completing a task, recorded using job cards or squad cards.

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Out-turn

Quantity of work successfully completed and approved by an inspector for each operation.

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Rating Systems

The various methods used to rate or evaluate a worker's performance based on factors like output, efficiency, or quality.

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Incentive Scheme

A system that rewards increased production with higher wages or bonuses, incentivizing workers to produce more.

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Normalized Time

The expected time it takes a worker to complete a task, considering various factors like the standard time for each element of the task, fatigue, contingencies, bonuses, and gauging.

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Inspector

An independent individual responsible for inspecting and evaluating the quality of work created under an incentive scheme.

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Checks and Balances in Incentive Schemes

A method to ensure that workers are fairly compensated for their efforts and that the incentive system remains effective in motivating productivity.

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What is Allowed Time?

The allowed time for a task, which includes a buffer for factors like fatigue or interruptions.

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What is Time Saved Ceiling?

A maximum limit on the amount of time saved that can be used to calculate a worker's bonus.

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What is Time Saved?

When a worker completes a task in less than the allowed time.

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How are Supervisors Incentivized?

Supervisors who are involved with the incentive scheme are also eligible for bonuses based on the performance of their team.

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What are Abnormal Profits?

When a worker consistently completes their tasks much faster than the allowed time.

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What are Losses in Incentive Schemes?

When a worker consistently performs below the expected level, it indicates a problem in the incentive system.

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What is the Expected Performance in an Incentive Scheme?

The goal is for an average worker to complete a task in 3/4 of the allowed time, earning a bonus. If a worker consistently performs below this level, it indicates problems with the incentive scheme.

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Overtime under Incentive Scheme

No overtime is allowed for workers under the incentive scheme.

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Apprentices and Incentive Scheme

Apprentices are not eligible to earn incentive bonuses.

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Investigating Idle Time

All idle time must be investigated to ensure efficiency and prevent wasted resources.

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Idle Time Cards

Idle time cards are kept by the time-booth clerk and are only punched based on slips issued by the chargeman.

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Short Idle Time Recording

Small amounts of idle time (up to 15 minutes) can be directly booked against the job card, avoiding separate idle time documentation.

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Checking Job Cards

Job cards are checked to ensure accuracy and consistency in recording work details.

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Shop Inspector Signature

The job card must be signed by the shop inspector to verify the quantity of work completed.

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Corrections on Job Cards

Any corrections made to job cards must be signed by the shop rate fixer to ensure accountability and transparency.

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Time books (W.502)

These books are maintained by the section supervisor and record the time spent by each direct worker on specific work orders.

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Time Sheets (W.504)

These sheets are maintained by the time booth clerk and summarise the time spent by each direct worker on each monthly work order across all work orders.

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Job Cards (W.506)

These cards are used for incentive shops and track the time spent by workers on specific operations. They include details like allowed time, preparation time, and work order number.

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Squad Summary Card (W.508)

This card is used when a job requires teamwork, with each member of the team getting an individual job card attached to the summary card.

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Idle Time Card (W.509A)

This card is prepared for each worker for each month and punched by the time booth clerk. It is used to track and record idle time for each worker when their job card is punched OFF.

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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.

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Related Documents

Railway Incentive Bonus Scheme PDF

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.

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