Developing wage payment system in a production company by applying time study and work evaluation techniques

In any production system one the main costs are wage paid to the workers. The wage payment system is not only influencing the overall costs, the system also is related to the productivity in the production system directly. The right wage payment system is so important to manage the workers efficiently, to motivate the workers with right incentive payment system, to figure out nonvalue-added activities by investigation on work tasks and etc. In most of the production companies the wage payments are based on time the workers spend for the tasks. This technique can be accepted as one of the best techniques. By this kind of wage payment system, the company assures that they will get benefit by paying salary to the workers. By careful observations and time-keeping techniques this kind of wage payment system can be converted from time base to unit product base. For developing wage payment system in the unit product base, the companies must determine the time required to produce any product accurately. After this for every kind task time tolerances must be arranged. Finally, standard time can be accepted and applied in the production. This paper emphasizes some main techniques on standard time calculation.