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    Mubin Shaikh Nooru

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    6 2

    Uploaded by

    Mubin Shaikh Nooru
    11 views16 pages

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    6.2

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    Copyright:

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    11 views16 pages

    6 2

    Uploaded by

    Mubin Shaikh Nooru

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    © All Rights Reserved
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    of 16
    Scanned with CamScanner Scanned with CamScanner are placed inthe rack whieh is kept at fhetory Mite Wy Ms . Hen a car’ © J time with pao punches jis aevival time with the help of the Machine ang Worker attiye, he ween veo the PaCTO) the process is reversed PU inte, the wet jos ACOUTITE and quick reeording of Ad Atlendang, " worker may puneh more than one card © Buty "Nites heavy peo jal Timve Recorder jaa TIOW hich is used for recording time Automation) rs “x the circumference, Each hole represents worker’, Thishondt yg vy of alloted clock mombers, AC te time of arival yee Mh tome, » eal angchine, the dial arm into a hole and the time iy ind depart Of Worker, ape Fe sheet placed inside, This machine is suitable in small ae lly recorded a 2 as Key Recorder System: ations, i” nthis machine there are number of keys, cach key denotes workers wal and departure the worker inserts his allotted key in the key hole and 2 lee is automatically recorded, This method is economical and casy to 8165 a tun, the 23. 6 Biomatric time attendance system: ee A biomatric time attendance system is a biomatric time cloc| e. Whasa biomatric finger print scanner built in that by placing a sarin ck ial reads the finger print and allows the person ie the scanner, js much more accurate in time keeping because employees can't clock in othe OF clock out, It the best time and attendance system. It helps prevent time theft and nucera ee for k that tracks one of company: 24 TIME BOOKIN Time Booking is a system of recording the time spent by each worker 0 Various j orders or processes. Jobs, Objectives - i) Toascertain the labour cost of a job, order or process. ii) To check wastage of time. iii) To ascertain cost of idle time, iv) To ensure that the time for which a workers is paid is properly utilized, Methods of Time Booking: 2.4.1 Daily Time Sheet: * Each worker is provided Daily Time sheet. This sheet records the time spent on each job or process, at the end of the day. : This method is suitable where workers have to change their jobs quite frequently during day ic. maintenance workers. But this method involves lot of clerical work. a al ae Sea Scanned with CamScanner Scanned CamScanner jactJob Card (or Job Teket): jop card is prepared for each job and records the time spent by various worker on that job, st tates the computation of labour cost ofeach jo ' nhs Format - ABC Ltd. Job Card order Coe i Workers Day | Name No. F Workman | Cost Clerk Five Generally four different types of job cards are used. a) Job card for each job. b) Job card for each worker ¢) Combined time and job card, d) Piece work card 2.5 IDLE TIME: Meaning - ‘Idle time is that time for which payment is made but no direct benefiv/ production is obtained. Ile time = Total time (as per Time Keeping records) Less Productive Time (as per Time booking records) Causes of Idle Time: Normal causes: The idle time which is bound to occur and unavoidable in every work situation e.g. . Time lost between factory gate and place of work . Time lost between the finish of one job and Staring to next. . Set up time for machine . Time taken for personal needs. . Time lost due to normal fatigue & tiredness. Abnormal Causes: The idle time which cannot be anticipated and occurs due to the Teasons beyond the control if the workers and management is called abnormal idle time. eg. * Machine break down * Power failure * Waiting for materials and tools Scanned with CamScanner Waiting for instructions . Strikes, lockouts, fire, flood ete, + Faulty planning Accounting treatment - Idle Time cost may be treated in Cost Accounts as foll Cost of normal idle time ~ It is treated as part of cost, Hence normal idle ste, lows- workers treated as direct wages, COSt Of diregt In case of indirect workers, itis treated as factory indirect wages, Treatment of Abnormal Time : Cost of Abnormal Idle Time constitutes a Loss which s F and Loss Account heh should be debited to costing Pro 2.6 OVERTIME: Overtime isan extra time over and above the normal working hours, Aceordi ti : . According t r Act, a worker is eligible for overtime pay if he works for more than nine hours on et peairy than 48 hours in a week. In India, overtime is to be paid at double the normal rate ores oF more c8, Causes of Overtime - Overtime may arise due to any of the following reasons | . \ + Genuine labour shortage + Pressure of immediate / Urgent delivery by customer, . To meet seasonal demands . To meet rise in market demand + Making up shortfall in production targets due to abnormal conditions. Effect of Overtime Payment: . Extra payment at higher wage rate Postponement of work to overtime, in order to claim overtime Wages, + Reduced output due to fall in workers efficiency during late hours, . If extra working as regular feature has an adverse effect on the health of workers, 2.7 NIGHT SHIFT ALLOWANCE: When there is an unusual pressure of work, workers may be asked to work in the evening. or night shifts. Generally higher rate of wages or additional payment is made for night shift work known as night shift Allowance. The additional payment can be treated in two ways. If it is caused to complete the job within a specified time it should be treated direct labour cost of that job. F Z If it is paid to increase the output or to make up production backlog, the extra payment charged to production overhead. 2.8 METHODS OF WAGE PAYMENT; The two principal methods of wage payments are A. Time Rate wage system B, Piece Rate Wage System ' : ; ; : Scanned with CamScanner aio Pec Rate ee m : "A worker is paid at fixed rate per hour! Paid at a fixed rate per unit p “ Payment re month for the time devoted or job completed. There isno linkage between performance There is linkage between perf - rear & reward * nployees security } ; Quality of work tends ( *7) Supervision _| Close supervision is required Close supervision is not required Cost of Maintenance is low Cost of maintenance is high ~ '§) Maintenance F ‘Less chance of wastage of materials & | More charges of wastages 1 Under this system di : i higher rewards for more efficient workers. Various plans are explained as follows, 2.8.4 Taylor's Differential Piece Rate System: j Dr. EW. Taylor (U.S.A.), father of Scientific Management introduced this plan, | system, Differential piece rate suggested for higher rewards to more efficient workers. ‘ The wages 10 workers is paid as under em 8 i 7 on Less than 100% 10% of Normal Piece Rate = Figal oor more an 100% | 120% of Normal Piece Rate = | Ito or more than 100% 2.9 ILLUSTRATIONS: Illustration 1; Standard ou! Mr. Y, Produces 110 units. Calculate earnings. Solution : X's carnings = 70 units x Rs.1 x 80% = Rs. 56 = 110 units x Rs.1 x 120% = Rs.132 tput 100 units. Normal piece rate Re.1 Mr. X produces 70 Y's earnings Scanned with CamScanner A avantages = simple to understand & easy to operate, It prov ides incentives to efficient workers, Cost of production is reduced due to increased production, pisadvantages? ; It penalises severely the inefficient workers, ‘ It does not ego hourly wages, . _ Tworates < Hig! wer) may i {eis difficult to fix standard as “reas ConBets among the workers. 2.8.5 Merricks Differential Piece Rate: Merricks suggested there (3) piece rates. Itis also known as Multiple Pj aap ies iple Piece Rate System, Up to 83% Normal Piece Rate ‘Above 83% up to 100% | 110% of Normal Piece Rate ‘Above 100% [120% of Normal Piece Rate Illustration 2. Standard output 100 units Normal Piece Rate Re.1 Mr. X produced 70 units, Mr. Y. : Calculate earnings. ¥. 90 units and Me:Z., 130 units, Solution = X’s eamings = 70 units x Re. 1=Rs.70 ‘Y’s earnings = 90 units x Re.1 x 110% = Rs. 99 Z’s earnings = 130 units x Re.1 x 120% = Rs. 156 ‘Advantages : This system does not penalise the workers huciny piece rate

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