A Monetary Incentive Plan for Machine‐paced Operations

For machine‐paced operations a two‐factor monetary incentive plan is developed by employing production quantity output and production waste as criteria for incentive earnings. The plan takes into account machine time allowance and increased operator work pace for manual work for establishing standards in a machine‐paced operation. The two incentive earning factors are given proper weights in terms of their relative economic importance. The weights are determined by comparing possible labour and material costs savings when the operators perform at incentive pace level. To demonstrate the working of the proposed monetary incentive plan an illustrative example is presented.