Incentive Schemes in Indian Railways
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Questions and Answers

What is the maximum percentage for bonus limits?

  • 70%
  • 90%
  • 50% (correct)
  • 30%

    • Under what circumstances can idle time be booked?

  • Both A and B
  • Machine breakdown
  • Power failure exceeding one hour (correct)
  • Lack of raw materials

    • What percentage of the overall outturn is used in bonus calculations?

  • 50%
  • 70%
  • 10%
  • 30% (correct)

    • What does individual shop outturn constitute in the bonus calculation?

    <p>70%</p> Signup and view all the answers

    How many men are typically required in the Industrial Engineering department for production control?

    <p>4 to 5 men</p> Signup and view all the answers

    What was the primary goal of introducing the incentive schemes in Railways?

    <p>Improve productivity through better utilization of resources</p> Signup and view all the answers

    Which workshop was the first to formally adopt the incentive scheme introduced by the Railway Board?

    <p>CLW</p> Signup and view all the answers

    Under what conditions is the average worker assumed to work at a rating of 60 units?

    <p>Under non-incentive conditions</p> Signup and view all the answers

    What classification describes workers engaged in assessable work through time studies?

    <p>Direct Workers</p> Signup and view all the answers

    What percentage bonus can workers of normal ability earn based on the allowed time?

    <p>33 1/3%</p> Signup and view all the answers

    What is the ceiling limit for the time taken under the incentive scheme?

    <p>50% of the time taken</p> Signup and view all the answers

    Which of the following is true about the calculation of incentive gain or loss?

    <p>It is done on a monthly basis</p> Signup and view all the answers

    Essential Indirect Workers contribute to the continuity of work, but what distinguishes them from Direct Workers?

    <p>Their contributions are not assessable through time studies</p> Signup and view all the answers

    What is the calculated incentive percentage if 200 hours were taken from an allowed time of 280 hours?

    <p>40%</p> Signup and view all the answers

    Which of the following is NOT a reason for allowing extra time over the allowed time?

    <p>Low worker efficiency</p> Signup and view all the answers

    What should happen to completed Job/Squad cards?

    <p>They should be sent to the incentive bonus section within 48 hours.</p> Signup and view all the answers

    Which of the following is a component of synthetic times?

    <p>Loading and unloading values</p> Signup and view all the answers

    In the context of idle time deductions, what percentage is debited if the idle time is between 2% and 10%?

    <p>10%</p> Signup and view all the answers

    When is a bonus not paid according to idle time deductions?

    <p>If idle time exceeds 15%</p> Signup and view all the answers

    What is the monetary value of an incentive for a worker earning Rs.110 per hour with an incentive calculation of 80 hours?

    <p>Rs.8800</p> Signup and view all the answers

    Which of the following is listed as a reason for idle time booking?

    <p>No power</p> Signup and view all the answers

    What happens if an inspector certifies that rejections are due to material scrap?

    <p>The reject will be taken into account up to a certain percentage of work done.</p> Signup and view all the answers

    When was the Group Incentive Scheme introduced in Tirupati, Rayanapadu Workshops?

    <p>2000</p> Signup and view all the answers

    What is the purpose of a time study?

    <p>To establish time standards for operations</p> Signup and view all the answers

    How is normalized time calculated?

    <p>Normalized time = Actual time x (Observed rating / 80)</p> Signup and view all the answers

    What percentage is typically assigned for general handling and contingencies in allowances?

    <p>12.5%</p> Signup and view all the answers

    Which of the following allowances has the highest percentage?

    <p>Production bonus</p> Signup and view all the answers

    If a worker takes 30 minutes to complete a task with an allowed time of 45 minutes, what is the incentive percentage?

    <p>50%</p> Signup and view all the answers

    In the normalizing example for a slow worker, what is the normalized time given an actual time of 60 minutes with an observed rating of 60?

    <p>45 minutes</p> Signup and view all the answers

    What component should be added to normalized time to account for fatigue at a rate of 12.5%?

    <p>0.125 hours</p> Signup and view all the answers

    What formula can be used to express the total allowed time after adjustments for different allowances?

    <p>Total allowed time = Normalized time + (Normalized time x Allowance percentage)</p> Signup and view all the answers

    What role do superior rate fixers play in the rating process?

    <p>They check the results of worker assessments.</p> Signup and view all the answers

    During a time study, how should the actual times of all elements be expressed after completion?

    <p>Converted to time at a rating of 80</p> Signup and view all the answers

    What is the primary function of the standard production unit (SPU) defined for each incentive production group?

    <p>To define applicable products for production groups</p> Signup and view all the answers

    Which of the following factors directly affects the group incentive under the Group Incentive Scheme?

    <p>Customer complaints about products</p> Signup and view all the answers

    What is the minimum bonus earning percentage under the Group Incentive Scheme?

    <p>20%</p> Signup and view all the answers

    How is the weightage allocated between individual shop outage and overall outage when determining incentives?

    <p>70% for individual shop and 30% for overall outage</p> Signup and view all the answers

    What is the consequence of excessive detention of coaches in the plant?

    <p>It negatively affects the group incentive</p> Signup and view all the answers

    Which of the following is NOT a characteristic of the Group Incentive Scheme?

    <p>Idle hours can be counted during machine downtime</p> Signup and view all the answers

    In which plant was the Group Incentive Scheme introduced?

    <p>Wheel and Axle Plant, Tirupati</p> Signup and view all the answers

    What defines the formation of a support shops incentive group in the Group Incentive Scheme?

    <p>They are formed from various departments that support production activities.</p> Signup and view all the answers

    What is the maximum permissible bonus limit under the Group Incentive Scheme?

    <p>50%</p> Signup and view all the answers

    Which of the following statements best describes the Individual Employee Dependency (IED) in the context of the SPU?

    <p>IED determines the applicable SPU for products based on group performance.</p> Signup and view all the answers

    What is the impact of machine breakdown on bonus eligibility?

    <p>It only allows for idle time booking.</p> Signup and view all the answers

    How is the outturn calculated in relation to individual and overall performance?

    <p>70% from individual shop outturn and 30% from overall outturn.</p> Signup and view all the answers

    What is the implication of group attendance on individual incentives?

    <p>It does not affect individual incentives at all.</p> Signup and view all the answers

    Which factor is NOT considered in the calculation of bonuses across different types of work?

    <p>Equalizing factors for each type of work.</p> Signup and view all the answers

    How does prolonged detention of coaches affect bonus calculations?

    <p>It does not affect the bonus if within a reasonable limit.</p> Signup and view all the answers

    What is the primary method used to measure work under the incentive scheme?

    <p>Time studies for operational tasks</p> Signup and view all the answers

    How is the incentive calculated if the average worker finishes tasks quicker than the allowed time?

    <p>By using the formula of time taken over allowed time</p> Signup and view all the answers

    What distinguishes Essential Indirect Workers from other worker classifications?

    <p>Their contributions are critical for the continuity of work</p> Signup and view all the answers

    What is the significance of the ceiling limit in the incentive scheme?

    <p>It prevents excessive bonuses regardless of productivity</p> Signup and view all the answers

    What does the term 'normalized time' refer to in the context of the incentive scheme?

    <p>Total time adjusted for allowances</p> Signup and view all the answers

    What was a major outcome identified from the review of productivity in implementing the incentive scheme?

    <p>Enhanced systematic flow of work</p> Signup and view all the answers

    Which of the following best characterizes how the allowed time for tasks is determined?

    <p>It includes allowances for fatigue and other disruptions</p> Signup and view all the answers

    In which year did the Railway Board decide to implement the incentive scheme?

    <p>1949</p> Signup and view all the answers

    What calculation is used to determine the monetary value of an incentive for a worker?

    <p>80 times the hourly rate</p> Signup and view all the answers

    Which of the following is NOT considered a reason for allowing extra time over the allowed time?

    <p>Unexpected labor shortages</p> Signup and view all the answers

    In the context of idle time deductions, which condition results in no bonus being paid?

    <p>Idle time greater than 15%</p> Signup and view all the answers

    What is typically required for Job/Squad cards during the incentive calculation process?

    <p>They must be sent within 48 hours of completion.</p> Signup and view all the answers

    Which of the following statements correctly explains the concept of synthetic times?

    <p>Synthetic times are time standards created from previous direct time studies.</p> Signup and view all the answers

    Which of the following factors is NOT accounted for in idle time booking?

    <p>Employee training sessions</p> Signup and view all the answers

    What happens to bonuses if material scrap results in work rejection?

    <p>Rejects are included only if the inspector certifies them.</p> Signup and view all the answers

    Which condition specifically relates to the calculation of idle time deductions from supervisors?

    <p>Machine repair time must be accounted.</p> Signup and view all the answers

    In the Group Incentive Scheme, what is one of the primary objectives?

    <p>To enhance teamwork and improve overall productivity.</p> Signup and view all the answers

    What specific value impacts the determination of synthetic times?

    <p>Element times from previous time studies.</p> Signup and view all the answers

    What is the purpose of normalizing time in a time study?

    <p>To convert actual time to a standard rating scale.</p> Signup and view all the answers

    How is normalized time calculated for a worker with an actual time of 45 minutes and an observed rating of 80?

    <p>45 minutes</p> Signup and view all the answers

    Which factor contributes the least percentage in allowances during time calculations?

    <p>Gauging on Machining</p> Signup and view all the answers

    What is the calculation of allowed time if the normalized time is 1 hour and allowances for fatigue, contingency, and gauging are added?

    <p>1.728 hours</p> Signup and view all the answers

    In the calculation of incentive, if a worker's allowed time for a task is 45 minutes, how much incentive is earned if the time taken is 20 minutes?

    <p>100%</p> Signup and view all the answers

    What is the formula to determine the incentive percentage based on time taken and allowed time?

    <p>(Allowed Time - Time Taken) / Time Taken</p> Signup and view all the answers

    Which of the following statements accurately reflects the process of rating in a time study?

    <p>Different workers performing the same job are compared and rated.</p> Signup and view all the answers

    What standard percentage is typically assigned for production bonus allowances?

    <p>33.3%</p> Signup and view all the answers

    If a worker's actual time is 60 minutes and the observed rating is 75, what is the normalized time?

    <p>50 minutes</p> Signup and view all the answers

    What does the term 'allowed time' refer to in the context of time studies?

    <p>The time estimated for a task including allowances.</p> Signup and view all the answers

    What is the significance of the management approved annual production plan in the Group Incentive Scheme?

    <p>It serves as a baseline for evaluating production group performance.</p> Signup and view all the answers

    Which of the following aspects is NOT considered when assessing group incentive impacts?

    <p>Idle hours due to scheduled maintenance.</p> Signup and view all the answers

    What is the effect of excessive detention of coaches in the context of the Group Incentive Scheme?

    <p>It reduces the group incentive amount.</p> Signup and view all the answers

    How are the bonuses under the Group Incentive Scheme structured in terms of earning percentages?

    <p>Minimum earnings are set at 20% with a ceiling of 50%.</p> Signup and view all the answers

    Which factor contributes the least weightage during outage calculations in the Group Incentive Scheme?

    <p>Overall outage performance.</p> Signup and view all the answers

    What is the role of the standard production unit (SPU) in relation to each incentive production group?

    <p>It defines the product types associated with each group.</p> Signup and view all the answers

    In which situation is idle time counted towards the Group Incentive Scheme?

    <p>For power failures occurring continuously for more than 60 minutes.</p> Signup and view all the answers

    What distinguishes the Group Incentive Scheme from the CLW Pattern in incentive strategies?

    <p>The Group Incentive Scheme is exclusively a team-based incentive scheme.</p> Signup and view all the answers

    Which of the following practices is expressly prohibited in the Group Incentive Scheme?

    <p>Using plus cards to increase bonus earnings.</p> Signup and view all the answers

    What impact does the attendance factor have on group incentives in the scheme?

    <p>It negatively impacts the bonus calculation under certain conditions.</p> Signup and view all the answers

    Which factor must be considered before booking idle time?

    <p>Lack of tools</p> Signup and view all the answers

    What percentage of the overall outturn is considered for bonus calculation?

    <p>30%</p> Signup and view all the answers

    How many days of detention for coaches do not affect the bonus calculation?

    <p>Up to 60 days</p> Signup and view all the answers

    Which statement regarding group attendance and bonuses is true?

    <p>Group attendance has no effect on individual incentives</p> Signup and view all the answers

    What is the primary factor that affects the bonus calculation in terms of quality?

    <p>Quality linkage factors</p> Signup and view all the answers

    Which of the following groups cannot have their output performance quantified in measurable terms?

    <p>Support shops</p> Signup and view all the answers

    What percentage weightage is given to individual shop outage when deciding overall outage under the Group Incentive Scheme?

    <p>70%</p> Signup and view all the answers

    What is the maximum ceiling on bonus earning under the Group Incentive Scheme?

    <p>50%</p> Signup and view all the answers

    Which of the following features affects the group incentive due to customer feedback?

    <p>Defects reported</p> Signup and view all the answers

    What is the condition under which idle hours may be counted?

    <p>Power failure for 60 minutes</p> Signup and view all the answers

    What does the Group Incentive Scheme not permit regarding time calculation?

    <p>Plus cards</p> Signup and view all the answers

    Which group is specifically formed from departments that support production activities?

    <p>Support departments</p> Signup and view all the answers

    Which duration of detention has a direct effect on incentives?

    <p>Excessive detention</p> Signup and view all the answers

    The incentive calculation in the Group Incentive Scheme is primarily based on what kind of performance?

    <p>Group performance</p> Signup and view all the answers

    What is the highest percentage allowance for fatigue?

    <p>25%</p> Signup and view all the answers

    What does the incentive percentage indicate?

    <p>The time taken compared to allowed time.</p> Signup and view all the answers

    What formula is used to add fatigue to normalized time?

    <p>Normalized time + (Normalized time x Fatigue rate)</p> Signup and view all the answers

    If a worker has an actual time of 60 minutes and an observed rating of 60, what is their normalized time?

    <p>45 minutes</p> Signup and view all the answers

    What is the contingency allowance percentage typically assigned?

    <p>10%</p> Signup and view all the answers

    What is included in the total allowed time calculation after adding allowances?

    <p>Normalized time and all allowances</p> Signup and view all the answers

    What was the purpose of introducing the incentive scheme in 1949?

    <p>To enhance productivity through better manpower utilization</p> Signup and view all the answers

    What is the calculation of incentive earned if allowed time is 45 minutes and time taken is 30 minutes?

    <p>50%</p> Signup and view all the answers

    Which factor is considered the basis for measuring work under the incentive scheme?

    <p>Time taken to complete tasks</p> Signup and view all the answers

    What is the classification for workers who contribute to the continuity of work but cannot be assessed through time studies?

    <p>Essential Indirect Workers</p> Signup and view all the answers

    What percentage of the bonus can workers of normal ability earn based on the allowed time?

    <p>33 1/3%</p> Signup and view all the answers

    How is the incentive calculation performed regarding the time taken?

    <p>Monthly basis with no carryover to the next month</p> Signup and view all the answers

    What distinguishes Indirect Workers in the incentive scheme?

    <p>They primarily engage in cleaning services</p> Signup and view all the answers

    What is the allowed time in the incentive scheme meant to account for?

    <p>Fatigue and various handling allowances</p> Signup and view all the answers

    What rating is assumed for an average worker under non-incentive conditions?

    <p>60 units</p> Signup and view all the answers

    What is the monetary value of an incentive when the hourly rate is Rs.110 and the calculated hours for the incentive are 80?

    <p>Rs.8800</p> Signup and view all the answers

    Which of the following is considered when calculating synthetic times?

    <p>Setting up values</p> Signup and view all the answers

    What percentage of idle time results in no bonus being paid?

    <p>More than 15%</p> Signup and view all the answers

    What should be done with completed Job/Squad cards?

    <p>They must be sent to the incentive bonus section within 48 hours</p> Signup and view all the answers

    What type of time is used to calculate incentives based on pre-determined standards?

    <p>Synthetic time</p> Signup and view all the answers

    Which of the following accurately describes the job cards?

    <p>They are basic documents for incentive calculation</p> Signup and view all the answers

    What is categorized under idle time booking?

    <p>Waiting for supplies</p> Signup and view all the answers

    What should be done with material scrap according to incentive calculations?

    <p>Rejections due to material scrap count towards the outturn</p> Signup and view all the answers

    When was the Group Incentive Scheme first introduced at the Tirupati, Rayanapadu Workshops?

    <p>2000</p> Signup and view all the answers

    Study Notes

    Incentive Schemes in Railways

    • Railways need to improve productivity by better utilization of manpower, machinery, and the area covered.
    • Prior to India's independence, a piece-work bonus system existed in some workshops (e.g., Jamalpur, Kancharpara, Perumbur).
    • However, the implementation of this system varied from workshop to workshop.
    • The Railway Board decided to introduce an incentive scheme in 1949.
    • The first formal scheme was introduced at CLW in December 1954.
    • The successful CLW scheme was later extended to ICF in 1960 and further extended to other workshops.

    Payments by Results

    • The need for this scheme is to boost productivity through better use of manpower and resources.
    • The scheme focuses on the actual results delivered for compensation.

    Introduction

    • Piecework bonus systems existed before independence in certain railway workshops.
    • The adopted systems varied between workshops.

    Review

    • Productivity reviews highlighted the need for improved efficiency, achieved through the scheme.
    • The scheme aims to enhance activity control and create a more structured workflow.
    • It encourages individual workers to strive for better performance.

    Salient Features of the Scheme

    • Basic wages are guaranteed.
    • Time is the benchmark for measuring work.
    • Operations undergo time study within the workshops.
    • Workers with normal ability can potentially earn a 33 1/3% bonus.
    • The allowed time covers all allowances (fatigue, general handling, gauging, and productivity bonus allowance).
    • An average worker under non-incentive conditions is estimated to work at a 60 rating.
    • The same worker under incentive conditions performs at an 80 rating.
    • The average worker completes work in 3/4th the time allowed.
    • Calculations are done monthly, and gains/losses aren't carried over to subsequent months.
    • The maximum bonus earning is capped at 50% of the allowed time.

    Type of Workers

    • Incentive workers are categorized as direct, essential indirect, and indirect workers.
    • Direct Workers (DW): Involved in tasks measurable through time studies.
    • Essential Indirect Workers (EIW): Contribute to work continuity; not measurable through time studies.
    • Indirect Workers (IWS): Support roles (e.g., cleaning); don't directly contribute to output.

    Timing of Operation

    • Efficiency is evaluated by systematically comparing the actual time taken with the predetermined time.

    Time Study

    • Standardizing time for each operation.
    • Accurately determining time from limited observations.

    Rating

    • Rating assesses the skill and effort needed for each operation.
    • Operations by multiple workers are examined to validate results by higher-level rate fixers.

    Normalizing

    • Actual time for each operation element is converted to an 80 rating level for compensation calculation.
    • Normalization formula: Normalized time = Actual Time x (Observed Rating/80)

    Examples of Normalizing

    • Formula: (Actual Time x Observed Rating) / 80.
    • This illustrates calculation for slow and fast workers at different ratings.

    Allowances

    • General handling and contingencies: 12.5%.
    • Gauging on machining: 5%
    • Fatigue allowances: 12.5% to 25%.
    • Production bonus: 33 1/3%.

    Calculation of Allowed Time

    • Calculates the allowed time by factoring in allowances above the normalized time of 1 hour.

    Calculation of Incentive

    • Incentive calculation involves subtracting time taken from allowed time.
    • Example calculation shows a worker working 200 hours and earning 280 hours of allowed time, resulting in a 40% incentive and 8800 rupees in compensation for a rate of 110 per hour.

    Synthetic Times

    • Synthetic time standards are built from previously obtained element times from direct time studies.
    • Standardized data includes: loading/unloading, setup, tool changes, and preparatory tasks.

    Extra Time

    • Additional time allowances may be given when there is excess work, issues with materials, changes in batch quantities, or other factors (e.g., harder materials, machine defects, order changes).

    Job Cards

    • Job/Squad cards are basic documents for incentive calculation.
    • Cards are punched using time recording clocks.
    • Cards are kept by the time booth clerk and should be sent within 48 hours to the incentive bonus section for calculation.

    Material Scrap

    • Bonus is paid on work meeting specifications.
    • Rejected material (if due to material scrap) can affect the incentive calculation.

    Idle Time Deduction from Supervisors

    • Shop Engineers are responsible for idle time caused by lack of work or tools.
    • The idle time percentages (2-10%, 5-15%, >15%) determine the bonus withholding percentage.

    Idle Time Booking

    • Causes for idle time booking include lack of power, machine breakdown, material shortages, tool deficiencies, waiting for work, crane faults, and miscellaneous issues.

    Group Incentive Scheme

    • Introduction of Group Incentive Scheme at Tirupati, Rayanapadu Workshops in 2000.
    • Groups formed from primary production shops.
    • Standard production units (SPUs) are defined for each incentive production group.
    • Support shops form a separate incentive group for support services.

    Group Incentive Scheme - Further Details

    • Output from support shops is not easily quantifiable.
    • Support departments are involved in production support activities.
    • Output cannot be measured using physical units.

    Salient Features of the Group Incentive Scheme

    • Management-approved annual production plans for each production group.
    • Standard production units (SPUs) defined for each product by the relevant department.
    • Manpower requirement (including allowances) to achieve the annual production plan is considered.
    • Idle time due to power failure longer than 60 minutes qualifies for booking.

    Salient Features of the Group Incentive Scheme - Further Details

    • Plus cards are not permitted under this scheme.
    • Group attendance can affect the group incentive.
    • Coach detention issues can affect the incentive.
    • Customer depot reported defects can affect the group incentive.
    • Outage calculation requires 70% individual shop weightage and 30% overall weightage.
    • Rework reduces the group incentive.
    • Minimum bonus earning requirement is 20%.
    • Maximum ceiling on bonus earning is 50%.

    CLW Vs GIS

    • CLW: Individual-based incentive scheme, minimum bonus 33 1/3%, maximum 50%.
    • GIS: Group-based incentive scheme, minimum bonus 20%, maximum 50%.
    • Detailing of issues like idle time, power failure, coaches, and quantity comparisons for both schemes.
    • CLW scheme was introduced in 1958 and extended to other workshops. GIS was introduced in 2000 at Tirupati and Rayanapadu Workshops.
    • Additional days of coaches stay does not affect bonus under CLW but does under GIS.
    • No equalizing factor for each work type under CLW but a standard sleeper coach conversion under GIS for bonus calculation.

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    Related Documents

    Incentive Schemes in Railways PDF

    Description

    Explore the evolution of incentive schemes in Indian Railways, starting from the piece-work bonus systems before independence to the formal schemes introduced post-1949. Understand how these schemes aimed to enhance productivity through better utilization of resources and manpower. This quiz delves into key historical milestones and their implications for railway efficiency.

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