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Group Incentive Scheme at Rail Coach Factory, Kapurthala. GROUP INCENTIVE SCHEME AT RCF, KAPURTHALA. PART-I - HISTORY PART-II - SALIENT FEATURES PART-III - CONVERSION FACTOR CALCULATION PART-IV - MANPOWER CALCULATION PART-V - INCENTIVE PERFORMANCE DURING
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Group Incentive Scheme at Rail Coach Factory, Kapurthala
GROUP INCENTIVE SCHEME AT RCF, KAPURTHALA • PART-I - HISTORY • PART-II - SALIENT FEATURES • PART-III - CONVERSION FACTOR CALCULATION • PART-IV - MANPOWER CALCULATION • PART-V - INCENTIVE PERFORMANCE DURING 2005-06 & 2006-07 • PART-VI - REDUCTION IN MANPOWER DEPLOYED PER EQ. GS UNIT
PART-I HISTORY OF INCENTIVE SCHEME INVOGUE AT RCF
PART-II SALIENTFEATURES
GROUP INCENTIVE SCHEME AT RCF(SALIENT FEATURES) • PRODUCTION SHOPS HAVE BEEN DIVIDED INTO FIVE PRODUTCTION GROUPS: GROUP-I - SMS, FSAS & ASSOCIATED PROGRESS GROUOP-II - SAS & ASSOCIATED PROGRESS GROUP-III - PAINT SHOP & ITS PROGRESS GROUP-IV - FURNISHING, CARPENTRY, FRP & FINISHING AND ITS PROGRESS. GROUP-V - BOGIE SHOP AND ITS PROGRESS • THE INCENTIVE EARNING PRECENTAGE FOR EVERY ONE IN A PARTICULAR GROUP IS SAME. • INCENTIVE OUT TURN IS BASED ON THE FINAL OUTPUT IN COMPLETE COACH SETS FROM THAT GROUP IN THE CONCERNED MONTH. • OUTPUTS OF GROUPS ARE MEASURED IN EQ. GS UNITS COMPUTED BY USING THE CONVERSION FACTORS FOR DIFFERENT COACH TYPES.
GROUP INCENTIVE SCHEME AT RCF(SALIENT FEATURES) (CONVERSION FACTOR OF A COACH IN A GROUP = AUTHORIZED DIRECT MAN HRS FOR THAT COACH / AUTHORISED DIRECT MAN HRS FOR A GS COACH IN THAT GROUP) • THE SCHEME IS DESIGNED AT AN ASSUMED INCENTIVE PERFORMANCE OF 120R FOR STATISTICAL PURPOSES. ON THIS SCALE, 100R IS THE ZERO INCENTIVE LEVEL. • THE INCENTIVE EARNING CONSISTS OF TWO PORTIONS:- - BASED ON GROUP'S OWN PERFORMANCE, WHICH IS GIVEN 70% WEIGHTAGE. - BASED ON RCF'S OVERALL PERFORMANCE DEPENDING ON THE PHYSICAL DESPATCH OF COACHES, WHICH IS GIVEN 30% WEIGHTAGE.
GROUP INCENTIVE SCHEME AT RCF(SALIENT FEATURES) • SUPPORT SHOPS COVERED UNDER INCENTIVE ARE :- a) TOOL ROOM b) MILL WRIGHT c) TRANSPORT SHOP d) MATERIAL HANDLING SECTION e) ELECTRICAL & ELECTRONIC MAINTENANCE SECTIONS f) MACHINE SHOP • SUPPORT SHOPS EARN INCENTIVE EQUAL TO THE WEIGHTED AVERAGE OF THE INCENTIVE EARNINGS OF THE FIVE PROD. GROUPS. • SUPPORT DEPTS GIVEN BELOW ARE COVERED BY PCO ALLOWANCE, (15% OF BASIC PAY), a) PROCESS PLANNING b) MATERIAL PLANNING c) INDUSTRIAL ENGINEERING DEPT. d) INSPECTION & QUALITY CONTROL
GROUP INCENTIVE SCHEME AT RCF(SALIENT FEATURES) • Quality of the product is ensured by individual groups through self-inspection & acceptance by receiving group apart from the inspection carried by QC. • Any item needing rectification is to be rectified by the concerned incentive prod. Group and rectification hours are added to their available man-hours. It lowers the incentive earning. Further, double the overtime is also added to available Man-hours with a similar effect to discourage the same. However there is no overtime booking in RCF. • No idle time booking is permitted except for power shut down exceeding 60 min. at a stretch. • Normal requirements for preventive maintenance and breakdown maintenance of M&P have been catered for in assessment of cycle time and auth. manpower.
GROUP INCENTIVE SCHEME AT RCF(SALIENT FEATURES) • The actual clocked in duty time in the allocated work center of the individual worker only is counted towards calculating the individual's incentive earning. Any time spent away from RCF Shops by staff under incentive, whether on duty or other wise is not counted. The only exception is in case of TA camps, in which case the individual gets an amount based on that individual's rate of earning in the last twelve months, for the duration he was away. • The staff is given incentive based on clocked- in man hrs recorded through the computerized time attendance system. If clocked-in man hrs of an individual are equal to maximum possible attendance during the incentive period, he becomes entitled for payment of full incentive and as such the scheme encourages staff to improve their absenteeism performance.
GROUP INCENTIVE SCHEME AT RCF(SALIENT FEATURES) • Payment of incentive amount is based on bonus factors for each grade. Bonus factors have been defined for each grade by Rly. Board and incentive payment made is a %age of the bonus factor and not the basic pay. The bonus factors incidentally are 30% more than the bottom of the scale of pay for each category. • The inclusion of SSE's & SE's in the incentive though recommended by RITES was not accepted by Railway Board, hence supervisors up-to the level of J.E.-I only are covered by the incentive scheme. The SSEs and SEs on the shop floor get a fixed 15% of the basic pay and those in PCO get a fixed 7.5% of basic pay. • The authorized manpower is calculated as follows. - Rites has given the manpower in each group for making 1000 GS unit in one year.
GROUP INCENTIVE SCHEME AT RCF(SALIENT FEATURES) - The annual load for each group in GS units is calculated using the conversion factors. - The authorized manpower is then calculated for this load. - This manpower is at a rating of 120R and 16% absenteeism. • The Group Performance Efficiency (GPE) is calculated as follows. Actual out-turn from the group in GSUs GPE = 1.2 x ------------------ -------------------------------- • Target outturn of the group Where TARGET OUT TURN OF THE GROUP= STANDARD OUTPUT OF GROUP ACTUAL MP --------------------------------------- X -------------- X W. D. OF MONTH AUTHORISED MP OF GROUP 25
GROUP INCENTIVE SCHEME AT RCF(SALIENT FEATURES) • The RCF performance factor is calculated as follows. CUMM. RCF ELIGIBLE INCENTIVE OUTPUT UPTO THE END OF INCENTIVE PERIOD = 1.2 X--------------------------------------------------------------------------------------------------------- CUMM. RCF MANAGEMENT DECLARED TARGET OUTPUT UPTO END OF INCENTIVE PERIOD IN EQ. GS UNITS - The monthly target out turn from RCF = Annual load Actual W. Days in the month Actual strength off all groups in GSUs for x ----------------------------------- x ---------------------------------- RCF as a whole 300 total auth. strength of all production groups
GROUP INCENTIVE SCHEME AT RCF(SALIENT FEATURES) • The incentive to be paid is calculated as below. - Incentive %age of the group = [70 x (GPE-1) + 30 x (RCF.perf.fac.-1)] x A, where A=(GPE/1.2)2x(RCF perf.fac./1.2). `A’ can not have a value<1. • Incentive amount of an individual = Employee's clocked in attendance hrs. Inc.%age x bonus factor x ---------------------------------------------- Hours in the month • The incentive of the support shops is calculated as below. - Incentive % = Weighted Avg. of Act. MP on roll (100-Act. Absenteeism) incentive earnings x ----------------- x ------------------------------ x [{(Annual prod plan load in five prod. groups Auth. MP 84 GSUs/1000–1) x 1/4} + 1]
EXAMPLE FOR MANPOWER CALCULATION ANNUAL LOAD
Advantages of group incentive scheme over Chitranjan Scheme • No concept of indirect worker in this incentive scheme i.e. All workers are treated as direct & get 100% incentive. • Less paper work due to absence of individual job cards & Item wise rate fixing, resulting less administrative over heads • The sectional output is always geared towards increasing the overall, final output of the workshop. No imbalances in production of different sections/Shops. • More adaptable for Multi skilling. • Greater flexibility for efficient utilization of work force at different locations as per requirement.
Advantages of group incentive scheme over Chitranjan Scheme • No upper limit of incentive earning. • Absenteeism % affects incentive earnings of each group, hence scheme discourages absenteeism. • Relaxation allowances are given based on ILO guidelines, which are more scientific. • All allowances like inspection, fatigue etc. are already included into the direct man-hours, based on the actual observations during the time of study.
