1. From the following information, calculate the bonus and earnings under Emerson Efficiency Bonus Plan:
|
Standard output in 12 hours |
… |
48 |
|
Actual output in 12 hours |
… |
42 |
Time rate 7.50 per hour
If the actual output is 60 units, what will be amount of bonus and earnings?
2. The existing incentive system of a certain factory is:
|
Normal working week |
5 days of 9 hours plus 3 late shifts of |
|
|
3 hours each |
|
Rate of payment |
Day work = Rs.10.00 per hour |
|
|
Late shift = Rs.15.00 per hour |
|
Additional bonus payable |
25.00 per day shift |
|
|
15.00 per late shift |
Average output per operative for 54 hours week i.e., including 3 late shifts 120 articles
In order to increase output and eliminate overtime it was decided to switch on to a system of payment by results. The following information is obtained:
|
Time rate (as usual) |
10.00 per hour |
|
Basic time allowed for 15 articles |
5 hours |
|
Piece work rate |
Add: 20% to piece |
|
Premium |
Add: 50% to time |
(i) hours worked;
(ii) weekly earnings;
(iii) number of articles produced; and
(iv) labour cost per article for one operative under the following systems:
(a) Existing time rate.
(b) Straight piece work.
(c) Rowan system.
(d) Halsey Weir.
Assume that 135 articles are produced in a 45 hour week under (b), (c) and (d) and that the worker earns half the time saved under the Halsey Weir System. The additional bonus under the existing system will be discontinued in the proposed incentive scheme.