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• Is the Production Bonus System Good ?

8th August 1941, Page 16
8th August 1941
Page 16
Page 16, 8th August 1941 — • Is the Production Bonus System Good ?
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Which of the following most accurately describes the problem?

sik A N Y classes of worker are now being paid IV Ion the production-bonus system, but information which has been brought to our, attention raises doubts as to the advisability of this, at least, in specific cases. • The method of payment does not always achieve the anticipated results,, at any. rate, in respect of economic production and quality, The subject Is a very big and important one, and the scheme of payment adopted must, to a large degree, be governed by the individual requirements of particular concerns, but two instances of considerable importance may be alluded to.

In one, something like 10 per cent. of the output of an article vital to the war effort is being returned by the inspectors because of grinding errors at the last stage. Therefore, it seems obvious that the fault lies in the wish to rush out -the articles concerned with a view to gaining the bonus. Each of these products involves hundreds of hours of the most accurate workmanship and the employment of high-quality material; yet forThe sake of' a few pence, on quite a minor operation, many have to he scrapped. The other instance refers to en bloc cylltaders for aircraft engines. It was discovered that an unduly large proportion of these were being rendered useless—again almost at the last stage of machining. Here, also, theopinion of the expert who was' called in to trace the trouble was that it lay with the system of bonus in operation. His advice was, we understand, that as it was not d6ired to inflict any reduction of wages, the bonus arranged should be averaged out and added to the ordinary wages, so that the inducement to , expedite the work in the final and critical stage should no longer exist.

Efforts at excessive production may be made at too high a cost, damage to partly finished components may involve not only the actual manufacturer concerned, but those others who contribute their share towards the finished product.

In the second instance quoted, the castings involved were intricate and expensive, and the loss meant additional work thrown upon the foundry, apart from the many hours of labour in machining and the long occupation of the tools engaged on, this work. .

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