TAYLOR - NARAYANA RAO PRINCIPLES OF INDUSTRIAL ENGINEERING
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| 16-Incentives |
Taylor stated that high productivity and high incomes go together.
Productivity incentives are the vehicle for providing higher income for higher productivity taking into account individual differences. When the incentive is related to the quantity and quality of the output, the persons putting in effort to increase their skill as well as to produce more will get more income.
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Productivity improvement will be done only when it is beneficial to people involved. Customers, employees and company have to get the benefit. Customers have to get price reduction, employees extra income and company extra profits through cost reduction per unit.
In the initial days of implementation of new productivity methods or process, employees are given incentives in proportion to the incremental extra production achieved and it is called incentive. After the process is stabilized, the fixed monthly or weekly payments are increased. Incentives are offered once again when new more productive methods are implemented.
Frederick Taylor's System for Rapidly Attaining The Maximum Productivity (1895).
Advantages: 1. Cost Reduction 2. Maximum productivity of each machine and man.
The system has two important steps. First one is to improve the elements of the work task to give more productivity. Second is to give incentive to the operators to learn and produce more as the new method designed by industrial engineering. We need to remember that in case of engineering tasks, process planners first design the process of producing any part or service. Industrial engineers improve the process periodically based on studies (process improvement study based on process chart, time study, method study, and motion study etc.) and implement suggestions based on the continuous flow of them from various employees of the organization including operators and supervisors. The productivity increase specified in the new processes need to be achieved in working by the operators. They are given incentives to reach the targets or rates of production for unit period. The most important part of the system is IE or productivity engineering. The managerial part is incentive payment that brings interest and commitment in operators to learn the new process and achieve its potential.
The principle is part of 12 principles of efficiency by Harrington Emerson. Harrington Emerson's Twelfth Efficiency (Productivity Management) Principle: Efficiency Reward.
Principles of Industrial Engineering - Presentation
by Dr. K.V.S.S. Narayana Rao in the 2017Annual Conference of IISE (Institute of Industrial and Systems Engineering) at Pittsburgh, USA on 23 May 2017
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Principles of Industrial Engineering - Narayana Rao - Detailed List
Clicking on the link will take you to more detailed content on the principle
9. Principles of motion economy to be used in all IE studies in the area of human effort engineering
11. Work measurement
21. Cost measurement
The full paper on the principles by Prof. K.V.S.S. Narayana Rao is now available for downloading from IISE 2017 Annual Conference Proceedings in Proquest Journal Base.
Read Lessons of Productivity Management Course Lessons - Module of Industrial Engineering FREE ONLINE Course.
Ud 8 March 2022, 5.10.2021
Pub 29.6.2017
Needs elaboration.
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http://nraoiekc.blogspot.com/2013/10/chapter-14-twelfth-principle-efficiency.html
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