Profit Making in Shop And Factory Management

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Day-Work Plan. — This plan, usually decidedly inefficient unless under special conditions, can be easily changed to a most efficient one by applying the bonus idea advanced by Mr. Gantt.
Piece Work. — By this the workman receives a certain amount of pay per piece. A very mischievous plan if it be accompanied by the continual cutting of rates. It cannot be considered efficient when the rates are established according to methods usually practised.
Premium Plan. — An efficient plan on many classes
... of work. The determination of standard times should, however, be made carefully.
If the rates are determined by other methods the plan will eventually fail.
The Differential Plan.— Developed by Mr. F. W. Taylor, of Phila- delphia; the piece price varies according to the rate of production.
The greater the number of pieces turned out in a given time, the higher the piece price. This can be applied when the "intensity or rate of production" must be high in order to get the utmost out of very costly machinery, tools, etc.


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