REDESIGNED
INCENTIVE SCHEME ON WORKSHOPS
-TIRUPATHI
PATTERN
INTRODUCTION:
An
incentive scheme may be viewed as a ‘win–win solution’ between the
administration and the staff of an organization. The advantages for the
administration are:
no requirement of additional man power, higher and efficient machine
utilisation, more productivity, less pilferage of working hours, etc. Whereas
for
workers: it gives the satisfaction of “earning more by working more” leading to
more purchasing power. And as an end result the organization is benefited with
better industrial relations and discipline.
In
this write up, an attempt has been made to discuss the existing incentive
schemes on Indian Railways without going into too much of technicalities but
concentrating on the conceptual aspects of the schemes.
PRESENT
SCHEMES:
Presently
existing incentive schemes on Indian Railway workshops may be broadly grouped
into two categories:
One
is based on saving of time in each activity by the employee, there by performing
the activity in lesser time than the prescribed time- giving scope for increased
out turn. (Chittaranjan pattern)
The
other one is directly linked to outturn given by a group. This is Group based
incentive scheme. (Tirupathi scheme) which has been introduced on workshops
during January 2002.
CHITTARANJAN
PATTERN SCHEME
To
appreciate better the newly introduced incentive scheme in
CRS,
(Carriage
Repair Shop) Tirupathi, by bringing out the differences with the existing
schemes, the chittaranjan pattern is also discussed briefly here
under.
SALIENT
FEATURES:
–Chittaranjan
pattern incentive scheme was started in 1954 on Production shops and in 1958 on
Indian Railway workshops.
–It
is based on the time saved by the worker against the prescribed time for each
activity set by the work-study group.
· It
is so designed that a reasonably efficient worker should be able to earn
33%incentive.
· i.e.;
if the worker is able to complete a work in 3/4ths of the time prescribed, then
he would be eligible to earn 33% incentive.
· However
the maximum limit set is that the employee can not save time more than 50% of
the allowed time for an activity. i.e. more than 50% saving in time will not be
eligible for incentive benefit.
Under
this scheme, the
workers are divided into three categories: Direct workers, Essential indirect
workers, and Indirect workers. Different incentive rates are fixed for each
category.
In this scheme the idle time can be booked on
the following counts:
•Non
availability of tools,
•Non
availability of work
•Power
cut
•Machine
run down.
•The
time office has to give every month the statements showing the number and
details of workers in each category for calculating the incentive
earned.
THE
RETHINKING:
There
has been a general view that the chittaranjan pattern of incentive scheme is not
working up to the expectations because of the following
reasons:
· Individual
employee may earn the incentive leading to financial out flow for the
administration but final out turn of the workshop is not
increasing.
· There
is no provision to take care of quality aspect of the
work.
· As
this is an individual based scheme, the expected synergy in gaining final output
is not accruing.
· There
is a perceived scope for manipulation of time saved by the
employee.
The lacunae in the chittaranjan pattern forced
the administration to rethink- and hence no incentive scheme has been introduced
for workshops set up after 1980.
Hence
the new scheme, which is group based and is directly linked to outturn given by
the group.
TIRUPATHI
PATTERN OF INCENTIVE SCHEME:
RITES
Study group was constituted to propose a new incentive scheme for the workshops
on Indian railways, Tirupathi workshop as a pilot project. The Railway Board
with some modifications accepted the RITES report. The similar scheme suggested
by the RITES study group is being implemented in production shops DLW and ICF.
However for the first time this scheme is introduced on workshops in Carriage
Repair shop
Tirupathi,
during January
2002,
which was inaugurated by the Honorable Railway Minister Shri Nitish
Kumar.
ACTIVITIES
OF CRS:
Before
discussing the new scheme, the activities of CRS Tirupathi, are mentioned
briefly:
The
main activities of CRS are POH of coaches and turning of wheel
sets.
Other
works under taken are:
POH
of MEMU, DMU, DHMU
RSP
works like
•UIC
vestibules.
•SS
inlays
•Retro-fitment
of Coaches.
•PVC
flooring
SALIENT
FEATURES OF THE SCHEME:
The
salient features of the scheme are discussed as under:
A).
The workshop categorization under the Scheme:
To
facilitate the implementation of incentive scheme the workshop has been
categorized into Production shops,
Support Shops Support Departments & Non-incentive
departments.
The
Production shops:
•Wheel
shop
•Paint
shop
•CF
shop
•CBR
(carriage bogie repair shop)
•Train
lighting shop
Support shops:
1.Mill
Wright 2. Power
maintenance
3.Machine
shop and calibration shop
4.Smithy
shop 5. Yard operating
6.Coach
movement and scrap handling
Support
departments:
• IED
(Industrial Engg Department)(This department is newly designated by the RITES
clubbing PCO and other offices and made it primarily responsible for incentive
calculation related work)
• Computer
Section
• Quality
Systems Division (Dealing with ISO 9000 work)
Non Incentive
Departments:
The Non Incentive Departments
are:
–Accounts
department including the Time Office
–All
the Ministerial staff including those working in the
shops
–Personnel
Branch
–Stores
Department
–Basic
Training Center
–Out
Side Power Maintenance
The
Production shops, support shops, and support departments are given different
incentive earning factors.
B). It is a group based incentive scheme:
The
incentive earned is dependent on the collective performance of the group in
terms of
(i)
The total clocked in man-hours. This takes care of the absenteeism within the
group i.e., the number of employees absent in the group will affect the entire
group’s incentive earning capacity.
(ii) Total
out turn in eGSCN given by the group.
(iii)
Quality of work performed without giving scope for en-route detachments, or sick
markings within 100.
C).
Equalising factor for various kinds of Coach works-Conversion in to
eGSCN:
All
the units turned out by the group (say a shop) are converted in to SPUs,
(Standard Production Units) which are: equated GSCN with regard to coach related
POH works, and ICF wheel set with regard to the turning of wheel sets for
calculation of incentive on a equal footing.
RITES
had provided with various conversion factors for various types of work( like RSP
works, POH of MEMU etc) to convert in to eGSCN and authorized IED for any future
requirements in fixing the conversion factors.
D)
No Over Time:
•Overtime
booking though allowed (under RITES study) acts adversely on group performance
and also employee’s incentive earning. However the final scheme as approved by
Railway Board does not provide for booking of over time.
E)
Idle time:
Idle
time can be booked only in the event of power failure for more than one hour
(unlike the chittaranjan pattern).
•To
assist in getting better attendance at work by group members a Group Attendance
Factor is included in the scheme.
F)
Indicators of quality performance:
This scheme takes in to consideration
indicators of performance like
(i)
Rectification man-hours (ii) time spent away from the work place (iii) quality
factors (iv) En-route detachments (v) sick markings within 100 days after POH-
while calculating the final incentive earned by the individual employee. These
indicators will affect the incentive earning capacity of the
employee.
Rectification
man- hours: If a group is forced to spend more time than required to perform an
activity because of the low quality work/ incomplete work of the earlier group,
the additional time spent to rectify it, is called the rectification man hours
and this factor acts negatively on the incentive earned by the earlier group and
the individuals of that group.
G) QUALITY FACTORS:
These
Quality factors are used in calculating the incentive earned by the supervisory
staff, which makes them more responsible for the quality of
work.
For
Supervisory staff payment of incentive will be at a flat rate of 15% of their
basic pay multiplied by quality factor Q as calculated below subjected to the
condition that overall earning of the section supervised by them is 15% or more.
In cases of sectional earning becoming less than 15% the actual average value of
sectional incentive earning multiplied by quality factor Q shall be used for
calculation of incentive earning for supervisory staff.
.
· Quality
linkage factor Q=(Q1+Q2+ Q3)/3
· Q1
reflects the local passing in work shops (NTXR
passing/rejections)
· Q2
reflects coaches marked within 100 days after the POH
· Q3
reflects en-route detachments.
· Q2,
Q3 are 1 if the index is equal to /better than the global average/or previous
year’s
095 (.9 for SE/SSE) if the index is equal to
previous years’ or global average
it
is 0.9(0.85 for supervisors) if it is worse than previous years or than the
global average.
(H)No
fresh recruitment of staff is proposed under this
scheme.
I)
Railway Board had provided for review of the scheme within a year and
termination after five years followed by review.
VARIOUS
PARAMETERS -THEIR EFFECT ON THE INCENTIVE EARNINGS.
Various
parameters of this scheme can be grouped into two:
1. That
are directly proportional to the incentive earned by the
employee.
2. Those
are inversely proportional to the incentive earned by the
employee.
Parameters
which keep a directly proportional relation to the incentive earned by the
employee are:
–Total
Clocked in man-hours of the group
–Total
out turn achieved by the group in eGSCN,
–Number
of working days in a month.
Inversely
affecting parameters
i.e.,
if the value of these parameters increase the incentive earned by the employee
will decrease.
•
The rectification man-hours
•
The coach holding factor. (should be > or = 1. If it is less than 1 it affects adversely on the
incentive earned by the employee of that group).
•The
time spent away from workshop by the employee.
•Number
of men absent in the group in the month.
•Sick
markings within 100 days of
POH,
•En-route
detachments
COMPARISON
OF THE TWO SCHEMES:
|
THE CHITTARANJAN
PATTERN
|
THE TIRUPATHI SCHEME |
|
1.Introduced
on workshops in 1958 2.It
is individual based incentive scheme 3.The
time saved by the worker in performing a work against the allowed time forms the
basis for the incentive earned. The
maximum time that can be saved to be eligible for incentive is 50% to the
prescribed time for an activity. 4. Idle time can be booked on more than one
reason like non availability of tools, machine break down, power cut
etc
5.Over
time is allowed 6.Quality
factors are not taken into consideration 7.There
is no penalising factors for the worker in earning the incentive for the poor
quality of work, absence from the workplace, 8.There
are no equalizing factors for different types of work.
|
1.Introduced
on workshops in January 2002 2.It
is group based incentive scheme. 3. It
is directly linked to out turn of the group in eGSCN units, and the attendance
factors. The
maximum % of additional eGSCN coaches that can be turned out to be eligible for
incentive earning is 50% 4.Idle
time can booked only on account of power failure more than an hour.( In CRS it
seldom happens as power cut is managed by generators. 5.
There is no provision for over time in Tirupathi scheme as approved by the
Railway board. (Even
if Over Time is allowed as per RITES Study, it works against the incentive
earning capacity of the worker) 6.Quality
factors are taken into consideration and these if factors are adverse they act
negative on the incentive earned by the worker. 7.The
important feature of this scheme is that it takes into consideration of quality
of work, the time spent away from the work place; the rectification man-hours
etc and these can act against the amount of incentive earned by the
worker. 8.All
types of coachwork are converted into eGSCN in case of coach works and in case
of the turning of wheels the common factor is ICF wheel
sets.
|
THE
WORKING OF THE SCHEME:
The
theoretical aspects have been discussed regarding the scheme in the earlier
paragraphs. The actual working details of the scheme will be discussed in the
following paragraphs:
Prior
to the introduction of the incentive scheme CRS had been turning out
40coaches(80 Four wheeler Units) per month on an average i.e., 480 coaches per
year. This situation is termed as 100R condition in RITES
Study.
The
Rly Board approved incentive scheme is designed with an incentive earning of 20%
i.e., 120R. With the existing staff strength of 1030 the number of eGSCN that
are to be turned out to get 120R incentive is fixed at 50 equated GSCN coaches
per month. If less than this target is achieved, it will not be eligible for
incentive earning. However the upper ceiling limit of incentive as given in Para
4.02 of Mechanical Code is applicable. i.e., more than 150R incentive is not
allowed. As per this, the maximum
additional out turn in eGSCN eligible for incentive would be restricted to
50%.
As per RITES study, the Industrial Engineering
Department (IED) is made responsible for
the calculation of incentive and preparing the bill. While preparing the bill
the IED is supplied with inputs from Time office like the total clocked in man
–hours of the various groups, and the absentee statements. And IED collects
details of various other data directly from the workshop like the rectification
man – hours, the out turn. The bill prepared is sent to Accounts Department
along with the relevant documents for vetting. The vetted bill is clubbed with
the regular salary bill and payment is arranged after due internal check by the
Accounts department.
CRS
has performed to its optimum and the out turn has increased by 20 coaches per
month on an average. Individual shops have achieved maximum out turn to the tune
of around150R in terms of eGSCN. As a result the incentive payment was also at
150R.
The
average incentive earned by workers of various scales:(In Rs, for Carriage
Fitting shop for 3 months from Jan to March 2002 would give an idea of the
amount of incentive payment to various grades of staff.
|
1560 |
|
2638 |
|
3213 |
|
2924 |
|
3250 |
|
Maximum earned |
|
1406 |
|
2443 |
|
2728 |
|
2300 |
|
2805 |
|
Average Incentive earned |
|
USK 2550-3200 |
|
TECH I 4500 |
|
Sr. Tech 5000-8000 |
|
JE II 5000-8000 |
|
JE I 5500-9000 |
|
Designation/ Scale |
FINANCIAL
OUTGO OF INCENTIVES FOR THE WORKSHOP-MONTHWISE (in Rs)
|
Month |
Production Shops |
Support Shops |
Support Department |
Supervisory Staff |
Total |
Outturn In Four wheeler Units (Not in
SPUs) |
|
Jan-02 |
13,18,831 |
4,75,352 |
16,307 |
27,331 |
18,37,821 |
114 |
|
Feb-02 |
15,65,030 |
2,81,359 |
13,808 |
29,541 |
18,89,738 |
116 |
|
Mar-02 |
13,35,216 |
2,58,822 |
9,831 |
30,346 |
16,34,215 |
116 |
|
Apr-02 |
13,09,826 |
2,53,727 |
9,825 |
31,962 |
16,05,340 |
130 |
|
May-02 |
10,67,766 |
2,00,861 |
8,032 |
28327 |
13,04,986 |
124 |
|
Jun-02 |
12,97,817 |
2,59,789 |
9,161 |
30150 |
15,96,917 |
120 |
|
July-02 |
1412762 |
269077 |
11940 |
31088 |
16,93,779 |
134 |
|
Aug-02 |
1441087 |
283519 |
11819 |
29850 |
17,66,275 |
136 |
|
Total |
10748335 |
2282506 |
90723 |
208745 |
1,32,99,221 |
|
Note:
The incentive calculated is based on the eGSCN units (SPUs) turned out be individual groups. However the out turn shown in the last column is the total number of Four-wheeler Units dispatched by the workshop to the Traffic after the POH.
Prior to incentive scheme the average number of four-wheeler units turned out per month were 80. From January to March three months were trial period. During April there has been a slight enhancement of target by the RITES and hence the total incentive paid was reduced even the out turn was more compared to earlier three months.
And again during the
months of May and June due to heavy summer the percentage of absenteeism has
gone up. It was around 17% where as for other months it was around 12%
explaining the lesser amount of incentive earned by the workshop employees
though the out turn was matching compared to earlier months. Here we can
clearly observe the role of negative factors determining the amount of incentive
earned by the employee.
AN
ANALYSIS AND CONCLUSION
This
scheme will yield good results provided there is a strict monitoring form the
administration. Various sub groups in the workshop have to work in tandem to
achieve the additional out turn for the workshop. Other wise there is a
possibility of the situation where in some groups in the workshop achieve
additional outturn and hence additional incentive whereas some lag behind
leading to no net additional out turn for entire workshop taken
together.
It
is required to maintain the additional feed constantly and continuously at an
increased level. Form the point of view of the workers; they should not be
deprived of incentive for want of additional feed to avoid inviting any labour
problem.
There
is a possibility of premature POH to keep up the additional feed to the
incentive shops.
On
completion of one year the scheme has to be analysed for the financial viability
duly taking into consideration the following aspects:
The
amount of additional out flow in terms of labour payment (incentive) and material, and the financial
benefit to the Railways in terms of the additional out turn in return and at
what cost.
|
The End |
Annexure
follows: Formulae.
Formulae
Equation
1
Group
Std. Monthly Target =
Annual
Target in SPU
Equation
2
Std
Man-hours for the group in the month
=
0.875
* Strength @ 120 R * Working Hours in the month
Equation
3
Group
Attendance Factor =
Equation
4
Available
Man Hours =
Clocked in Man Hours
Less idle time man hours
less
rectification man hours actually clocked in
the month by own group on items for which other supplyin ggrouop agrees for
rectification by own group
plus
(3* rectification work man hours by other receiving group on items earlier
dispatched by own supplying group to any other receiving
group.)
Equation
5
Group
Production Norm for the group in SPU for the month
Std.
Man Hours for the group in the month
Equation
6
Group
Base Output of the group in SPU=
0.833 * Group Production Norm
Equation
7
Group Production Index =
(Group incentive eligible Dispatches) *( Group
Holding Factor )* (Group Attendance Factor)/Group Base
Output
Equation
8
Plant
Production Index = P
Xa/Xb+qYa/Yb+rZa+Zb+….
Xa
Ya Za =
Group
incentive eligible despattch in month for
different incentive production groups
Xb
Yb Zb =
corresponding
group base out put for the month for different incentive production groups.
P
q r = applicable weightage
factors for individual production groups.
Applicable
weightage factors =
(Allowed
Time at 100 R per SPU) * ( Group standard monthly target in
SPU)
Sum of( allowed Time* satandard monthly
target)of All Shops
Equation
9
Gross
Production Index =
(0.7 * Group production index) + (0.3 *
Plant Production Index)
Equation
10
Individual
Incentive Earned =
(GPI-1)
*( Incentive Earning Factor
)
*( Actual Clocked in Hours of the Employee exluding time spent away from work
place)
/
( Total Working Hours of the Month).
INCENTIVE CALCULATION FOR
SUPPORT SHOPS
Equation
11
Standard
Man Power Ratio for Support Shops:
Arithmetic Sum of Authorised Strength
of all Production Shops
Authorized Strength of Support
Shops
Equation
12
Actual
Man power ratio=
Actual overall Strength of all
Production Shops
Actual On roll Strength of Support Shops
Equation
13
Support
Shops Incentive Group Performance Efficiency=
Standard Man Power
Ratio
Equation
14
Support
Shops Incentive Linkage Factor= 0.8 (Constant)
Equation
15
Individual
Support Shops Attendance Factor=
Actual
Clocked In Hours
0.875
* Over all Strength * working Days * Working Hours
Equation
16
Weighted
Performance Index=
Sum
of (G.P.I. * Over all Strength + G.P.I *
Over all Strength + .…………)
Equation
17
Incentive
Earning by an employee=
(Weighted
Performance Index –1) * 0.8* Support
Shops Incentive Group Performance Effy *
Individual support shop
attendance Factor * Applicable Incentive
Earning Factor * Clocked-in Hours by a member / Scheduled Working
Hours.
Similar
formulae are given for the calculation of incentive for the support departments
with incentive linkage factor of 0.5.
Gauging-5%
Handling - 12 1/2 %
Fatigue - 12 1/2 to 25%
Production Bonus - 33 1/3 %
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