As before, reward begins at an earlier point than standard. That is to say, if a smaller quantity than 36 be produced reward is earned, but a certain minimum quantity must be produced before reward begins. This minimum quantity is called "reward production," and begins at 75 per cent. of the standard production. (36 × 75)/100 = 27·0, and this is the reward production for one hour, reward being paid on any excess above this.
Let us assume that a worker is 6 hours on this work, and in that time produces 220 pieces. The reward quantity is 27 per hour, and for the 6 hours is 27 × 6 = 162. The job rate is, say, 24s., because this work would be done by unskilled or partially skilled labour. This is 6d. per hour, and if the worker produces 27 or less pieces per hour that is what he receives. If he produces more than 27 per hour, he gets paid at the rate of 6d. per 27 for the excess, this being equivalent to being paid for all the time saved.
The production in 6 hours is 220; the reward quantity for that time is 162, and the standard quantity 216. It is seen that efficiency in this case is over 100 per cent., because 220 is 4 more than standard. Reward is paid on 220-162 = 58, and payment is made at the rate of 6d. for each 27. If we divide 58 by 27, and multiply the result by 6d., this will give the amount of reward—namely, 1s. This is the reward for 6 hours' work, and is 2d. per hour, so that the worker gets 8d. per hour instead of 6d.
Efficiency is about 102 per cent.
The following shows these examples in tabular form:
| I. | |
|---|---|
| Base time | 12 hours |
| Standard time | 15 hours |
| Reward time | 20 hours |
| Time taken | 16½ hours |
| Time saved | 3½ hours |
| Job rate per hour | 9d. |
| Reward | 3½ × 9 = 2s. 8d. |
| Total reward for week if reward is earned at same rate all the week (namely, 48 hours) | 7s. 9d. |
| Total earnings | 36s. + 7s. 9d. = 43s. 9d. |
| II. | |
|---|---|
| Base quantity | 40 per hour |
| Standard quantity | 36 per hour |
| Reward quantity | 27 per hour |
| Time worked | 6 hours |
| Quantity produced | 220 |
| Reward quantity for 6 hours | 162 |
| Excess quantity | 58 |
| Reward at 27 for 6d. | 1s. |
| Total reward for week if reward is earned at same rate all the week (namely, 48 hours) | 8s. |
| Total earnings | 24s. + 8s. = 32s. |
The foregoing examples are of average workers. The following is an example of what a good worker can do, and, as the method of calculation is given above, a tabular statement is all that is necessary:
| III. | |
|---|---|
| Base time | 8 hours |
| Standard time (base + 25%) | 10 hours |
| Reward time (standard + 33⅓%) | 13·3 hours |
| Time taken | 8·5 hours |
| Time saved | 13·3 - 8·5 = 4·8 hours |
| Job rate per hour | 9d. |
| Reward | 9 x 4·8= 3s. 7d. |
| Total reward for week if reward is earned all week at same rate | 20s. 2d. |
| Total earnings | 36s + 20s. 2d. = 56s. 2d. |
| Efficiency | 117·5% |