Question

A company is planning to install an incentive based pay plan in its manufacturing plant. In developing standard for one particular operation, time study analysis observed a worker for 60 mins. During this time , the worker completed 84 parts. The analysis rated the worker as producing at 125%. The base wage of the worker is rs 30 per hour. The firm gives 20% as fatigue and personal needs allowances. What is the normal time for the task? What is the standard time for the task? If the worker produced 500 units during 8 hour day, what wages would the worker have earned?

Answer 1

based pay plan in its manufacturing plant. In developing standard for one particular operation, time study analysis observed a worker for 60 mins. During this time , the worker completed 84 parts. The analysis rated the worker as producing at 125%. The base wage of the worker is rs 30 per hour. The firm gives 20% as fatigue and personal needs allowances