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TECHNOLOGY UPDATE
PERFORMANCE INCENTIVES
=
HIGH PRODUCTIVITY
Sewing Operator Incentive Schemes and
Technology Solutions
������������������������ ���� ����������� ���������������� ��� �� ��� ������������������� ����������������������������������������������� ������������������� ������ ������ ���������� ���� ������������������������� ��������������������������������� ����� ��� ��� ���� ��� �������������� ��� ������� ������ ���������������� ���� ������������������������������� ������� ������������ �������������������!������������������ ��� ���������������� �� �������� ���� ����� ���� ��������������� ������������������
The solution is a fair and direct
incentive scheme for workers.
effective amongst other incentive schemes as it provides a lot of motivation and is highly effective in increasing productivity. It is a supplement to other management techniques, and we may regard it as one of the important tools since it attempts to link wages with performance.
Purpose of incentivesThe main purpose of incentives is to motivate workers to give his best. Incentive scheme is set to improve performance of workers, by making them work more effectively with less wastage of time, at a greater pace, and with better application to the job. Anincentive scheme for the workers brings down the making cost when engineering methods are implemented simultaneously. Currently, performance incentive scheme in a factory is optional, but in the near future an incentive scheme would be become mandatory to run a
attendance bonus. Few years ago bonus for attendance did not exist in garment export industry, however, now most of the companies are providing attendance bonus to their workers to reduce operator absenteeism. Similarly performance bonus for workers can break
reduce garment making cost. I don’t need to
both the factory owner and workers. Here is a case to describe the impact and importance of performance incentive.
Case: Performance incentive given to operators based on line (group)
Assume that a factory is currently running at
become eligible for incentive earning is 45%. When line
from 35% direct labor cost per garment reduces by 30%. See following illustration-1.
Cost saving per garment = (38.80 – 27.16) = Rs. 11.64 and Cost reduction = (11.64*100/38.8)=30%Total saving per month from one line = (6,240 X 11.64) = Rs. 72,643.00 If the factory distributes 50% of the savings earned from extra production, each operator will earn Rs. 211.00
who are earning say 7000 rupees per month with overtime. Operator incentive earning
reduce OT hour expenses. Incentive amount can be planned at lower or higher than 50-50 that should attract operator to give efforts to produce more.
in OT
Above calculations seem very interesting. Some of you may be already gone through
what do you need to have such kind of productivity improvement?Requirements to run an Incentive Scheme effectively
content (operations SAM)
production and produced minutes
Every factory owner knows this very well that if they distribute one dollar as performance based incentive to their operators they can earn and save in return more than that. But
with implementing an incentive scheme for workers. Many are interested and think to start some kind of incentives to motivate their employees but still they fail to start. Why so?
Major reasons for not having Incentive Schemes
recording production data and calculate
without human intervention.
�� May 2013
PERFORMANCE INCENTIVES
=
HIGH PRODUCTIVITY
Sewing Operator Incentive Schemes and
Technology Solutions
������������������������ ���� ����������� ���������������� ��� �� ��� ������������������� ����������������������������������������������� ������������������� ������ ������ ���������� ���� ������������������������� ��������������������������������� ����� ��� ��� ���� ��� �������������� ��� ������� ������ ���������������� ���� ������������������������������� ������� ������������ �������������������!������������������ ��� ���������������� �� �������� ���� ����� ���� ��������������� ������������������
�� May 2013
Figures at Existing Line
Figures at Improved line
Operator Salary
SAM per Garment 30 30
Machine/Line 30 30
(pieces)
The solution is a fair and direct
incentive scheme for workers.
effective amongst other incentive schemes as it provides a lot of motivation and is highly effective in increasing productivity. It is a supplement to other management techniques, and we may regard it as one of the important tools since it attempts to link wages with performance.
Purpose of incentivesThe main purpose of incentives is to motivate workers to give his best. Incentive scheme is set to improve performance of workers, by making them work more effectively with less wastage of time, at a greater pace, and with better application to the job. Anincentive scheme for the workers brings down the making cost when engineering methods are implemented simultaneously. Currently, performance incentive scheme in a factory is optional, but in the near future an incentive scheme would be become mandatory to run a
attendance bonus. Few years ago bonus for attendance did not exist in garment export industry, however, now most of the companies are providing attendance bonus to their workers to reduce operator absenteeism. Similarly performance bonus for workers can break
reduce garment making cost. I don’t need to
both the factory owner and workers. Here is a case to describe the impact and importance of performance incentive.
Case: Performance incentive given to operators based on line (group)
Assume that a factory is currently running at
become eligible for incentive earning is 45%. When line
from 35% direct labor cost per garment reduces by 30%. See following illustration-1.
Cost saving per garment = (38.80 – 27.16) = Rs. 11.64 and Cost reduction = (11.64*100/38.8)=30%Total saving per month from one line = (6,240 X 11.64) = Rs. 72,643.00 If the factory distributes 50% of the savings earned from extra production, each operator will earn Rs. 211.00
who are earning say 7000 rupees per month with overtime. Operator incentive earning
reduce OT hour expenses. Incentive amount can be planned at lower or higher than 50-50 that should attract operator to give efforts to produce more.
in OT
Above calculations seem very interesting. Some of you may be already gone through
what do you need to have such kind of productivity improvement?Requirements to run an Incentive Scheme effectively
content (operations SAM)
production and produced minutes
Every factory owner knows this very well that if they distribute one dollar as performance based incentive to their operators they can earn and save in return more than that. But
with implementing an incentive scheme for workers. Many are interested and think to start some kind of incentives to motivate their employees but still they fail to start. Why so?
Major reasons for not having Incentive Schemes
recording production data and calculate
without human intervention.
Line Eff 48 49 50 51 52 53 54 55 57 58 59
48
49
50
51
52
53
54
55
57
58
59
70
0 0
00
23.08
23.08
23.85
23.85
25.38
25.38 29.23
29.23 30.00
30.00
30.77
30.77 31.54
31.54 32.31
32.31 33.08
33.08 33.85 35.38
33.85 35.38
15.38
15.90
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
15.38
15.90
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
38.97
39.49
40.00
40.51
41.08
41.08
41.08
41.08
41.08
41.08
41.08
41.08
41.08
41.08
41.08
41.08
41.08
41.08
41.08
41.08
39.23
39.74
40.77
41.28
41.79
41.79
41.79
41.79
41.79
41.79
41.79
41.79
41.79
41.79
41.79
41.79
41.79
41.79
41.79
41.79
40.00
40.51
41.03
41.54
42.05
40.77
41.28
41.79
42.31
42.82
43.33
43.33
43.33
43.33
43.33
43.33
43.33
43.33
43.33
43.33
43.33
43.33
43.33
43.33
43.33
43.33
41.54
42.05
43.08
43.59
44.10
44.10
44.10
44.10
44.10
44.10
44.10
44.10
44.10
44.10
44.10
44.10
44.10
44.10
44.10
44.10
42.31
42.82
43.33
43.85
44.87 47.18 47.95 48.72 49.49 51.03 51.79 53.33
53.33
53.33
53.33
53.33
53.33
53.33
53.33
53.33
53.33
53.33
53.33
53.33
53.33
53.33
53.33
54.10
54.10
54.10
54.10
54.10
54.10
54.10
54.10
54.10
54.10
54.10
54.10
54.10
54.10
54.10
54.10
43.08
43.59
44.10
44.13
43.85
44.87
45.38
45.90
45.13
45.38
45.90
47.44
47.18
48.21
47.44
47.95
48.97
48.21
48.72
49.23
49.74
48.97
49.49
50.00
50.51
49.23
49.74
50.77
51.28
50.oo
50.51
51.08
51.54
52.05
50.77
51.28
51.79
52.31
52.82
51.54
52.05
53.08
53.59
44.87
44.87
44.87
44.87
44.87
44.87
44.87
44.87
44.87
44.87
44.87
44.87
44.87
44.87
44.87
47.18
47.18
47.18
47.18
47.18
47.18
47.18
47.18
47.18
47.18
47.18
47.18
47.18
47.18
47.18
47.95
47.95
47.95
47.95
47.95
47.95
47.95
47.95
47.95
47.95
47.95
47.95
47.95
47.95
47.95
48.72
48.72
48.72
48.72
48.72
48.72
48.72
48.72
48.72
48.72
48.72
48.72
48.72
48.72
48.72
49.49
49.49
49.49
49.49
49.49
49.49
49.49
49.49
49.49
49.49
49.49
49.49
49.49
49.49
49.49
51.03
51.03
51.03
51.03
51.03
51.03
51.03
51.03
51.03
51.03
51.03
51.03
51.03
51.03
51.03
51.79
51.79
51.79
51.79
51.7951.79
51.79
51.79
51.79
51.79
51.79
51.79
51.79
51.79
51.79
51.79
individual incentive or a group incentive scheme would suit them to bring up opera tor motivation as well as labor productivity and debate goes on.
considered to make the scheme error proof. If the scheme is not designed correctly it would
without an established tool. They fear, in case in centive payment is calculated on spreadsheet by employees there may be chance of data manipulation which will have severe impact.
want to add multiple parameters in designing incentive scheme? Like individual
bonus plus attendance bonus. Total amount
these three.
undecided. Technology Solutions of the problems1. Standard Time setting for a product: Instead of guesswork factories can have one of the following technologies for setting time standards for sewing operations.
SewEasy Pvt. Ltd.
2. Technology for Data Tracking and Analysis: To have accurate data for individual
tracking solutions are very helpful. Leadtec and G.Pro are such example. Barcode system is one law cost solution compared to RFID for
production data tracking. Few names those take apparel manufacturing industry to step ahead with real time data capturing and in depth data analysis are
system such as Leadtec, G.Pro Technologies
3. Designing of Incentive schemeEvery system has pros and cons. But you have to select one from the available resources. In case you don’t want to spend money for incentive calculation software packages use
Based on your incentive scheme prepare an
amount. Incentive matrix can be made simple incentive plan to a complex one. Once you made the incentive matrix, prepare another table for calculating operator incentives. Later when you calculate incentive amount of an operator for a duration or daily just you have to pick amount from the matrix. For example, one complex matrix has been shown below where scheme includes individual incentive and group incentives. In case you want to make your incentive calculation system automatic, Leadtec system
multiple incentive bonus system, an
tracking. It tracks individual operator
work on multiple operations in a day; system takes care to calculate operator’s total
operators.
can be used or can integrate own scheme.
same time – like incentive based on
incen tive)
TECHNOLOGY UPDATE
��May 2013
Line Eff 48 49 50 51 52 53 54 55 57 58 59
48
49
50
51
52
53
54
55
57
58
59
70
0 0
00
23.08
23.08
23.85
23.85
25.38
25.38 29.23
29.23 30.00
30.00
30.77
30.77 31.54
31.54 32.31
32.31 33.08
33.08 33.85 35.38
33.85 35.38
15.38
15.90
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
15.38
15.90
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
17.95
38.97
39.49
40.00
40.51
41.08
41.08
41.08
41.08
41.08
41.08
41.08
41.08
41.08
41.08
41.08
41.08
41.08
41.08
41.08
41.08
39.23
39.74
40.77
41.28
41.79
41.79
41.79
41.79
41.79
41.79
41.79
41.79
41.79
41.79
41.79
41.79
41.79
41.79
41.79
41.79
40.00
40.51
41.03
41.54
42.05
40.77
41.28
41.79
42.31
42.82
43.33
43.33
43.33
43.33
43.33
43.33
43.33
43.33
43.33
43.33
43.33
43.33
43.33
43.33
43.33
43.33
41.54
42.05
43.08
43.59
44.10
44.10
44.10
44.10
44.10
44.10
44.10
44.10
44.10
44.10
44.10
44.10
44.10
44.10
44.10
44.10
42.31
42.82
43.33
43.85
44.87 47.18 47.95 48.72 49.49 51.03 51.79 53.33
53.33
53.33
53.33
53.33
53.33
53.33
53.33
53.33
53.33
53.33
53.33
53.33
53.33
53.33
53.33
54.10
54.10
54.10
54.10
54.10
54.10
54.10
54.10
54.10
54.10
54.10
54.10
54.10
54.10
54.10
54.10
43.08
43.59
44.10
44.13
43.85
44.87
45.38
45.90
45.13
45.38
45.90
47.44
47.18
48.21
47.44
47.95
48.97
48.21
48.72
49.23
49.74
48.97
49.49
50.00
50.51
49.23
49.74
50.77
51.28
50.oo
50.51
51.08
51.54
52.05
50.77
51.28
51.79
52.31
52.82
51.54
52.05
53.08
53.59
44.87
44.87
44.87
44.87
44.87
44.87
44.87
44.87
44.87
44.87
44.87
44.87
44.87
44.87
44.87
47.18
47.18
47.18
47.18
47.18
47.18
47.18
47.18
47.18
47.18
47.18
47.18
47.18
47.18
47.18
47.95
47.95
47.95
47.95
47.95
47.95
47.95
47.95
47.95
47.95
47.95
47.95
47.95
47.95
47.95
48.72
48.72
48.72
48.72
48.72
48.72
48.72
48.72
48.72
48.72
48.72
48.72
48.72
48.72
48.72
49.49
49.49
49.49
49.49
49.49
49.49
49.49
49.49
49.49
49.49
49.49
49.49
49.49
49.49
49.49
51.03
51.03
51.03
51.03
51.03
51.03
51.03
51.03
51.03
51.03
51.03
51.03
51.03
51.03
51.03
51.79
51.79
51.79
51.79
51.7951.79
51.79
51.79
51.79
51.79
51.79
51.79
51.79
51.79
51.79
51.79
TECHNOLOGY UPDATE
��May 2013
individual incentive or a group incentive scheme would suit them to bring up opera tor motivation as well as labor productivity and debate goes on.
considered to make the scheme error proof. If the scheme is not designed correctly it would
without an established tool. They fear, in case in centive payment is calculated on spreadsheet by employees there may be chance of data manipulation which will have severe impact.
want to add multiple parameters in designing incentive scheme? Like individual
bonus plus attendance bonus. Total amount
these three.
undecided. Technology Solutions of the problems1. Standard Time setting for a product: Instead of guesswork factories can have one of the following technologies for setting time standards for sewing operations.
SewEasy Pvt. Ltd.
2. Technology for Data Tracking and Analysis: To have accurate data for individual
tracking solutions are very helpful. Leadtec and G.Pro are such example. Barcode system is one law cost solution compared to RFID for
production data tracking. Few names those take apparel manufacturing industry to step ahead with real time data capturing and in depth data analysis are
system such as Leadtec, G.Pro Technologies
3. Designing of Incentive schemeEvery system has pros and cons. But you have to select one from the available resources. In case you don’t want to spend money for incentive calculation software packages use
Based on your incentive scheme prepare an
amount. Incentive matrix can be made simple incentive plan to a complex one. Once you made the incentive matrix, prepare another table for calculating operator incentives. Later when you calculate incentive amount of an operator for a duration or daily just you have to pick amount from the matrix. For example, one complex matrix has been shown below where scheme includes individual incentive and group incentives. In case you want to make your incentive calculation system automatic, Leadtec system
multiple incentive bonus system, an
tracking. It tracks individual operator
work on multiple operations in a day; system takes care to calculate operator’s total
operators.
can be used or can integrate own scheme.
same time – like incentive based on
incen tive)
Prasanta Sarkar holds an Engineering degree in Textile Technology from College of Textile Technology, erampore and Post Graduate in
Fashion Technology from National Institute of Fashion Technology, New Delhi. Previously he worked in a garment manufacturing and exports house in NCR and in an apparel
a consultant. He has visited many garment manufacturing companies in India and Bangladesh and conducted no. of training programs
on industrial engineering, quality management and sewing operator training. He did projects on productivity improvement, quality improvement, development of factory MIS systems.
