Piece rates, skills and earnings, to HRMS payroll
Set a rate per good piece for a step, a machine, an item or a category. Every good piece counted on the terminal earns its operator the rate that applies that day. With SmartMy HRMS, the month's earnings go on the payslip as wages for PF, ESI and tax.
PLANSFrom Growth
Why it matters
In many units the weekly piece-rate sheet is the most argued paper in the factory. The supervisor's register, the rate list and the wage sheet never agree. Here one tap on the terminal records a good piece. The same tap records who made it, the rate that applies on that day and the earning. The rate is found by itself from the step, item, category and machine. A new style rate starts on its date; old counts keep their old rate. With SmartMy HRMS the earnings land on the payslip as wages for PF and ESI and are marked paid. So nothing is paid twice or left out.
The problem it solves
- Piece earnings are added up by hand from the supervisor's register every week, and every week someone disputes them.
- Rates change for a new style or a new machine, and the old rate keeps being paid.
- The production count and the wage count are two different numbers.
- Piece earnings are paid in cash outside payroll, so PF and ESI are worked out on the wrong wages.
How it works
- Open Manufacturing > Configuration > Piece Rates > New. Give the amount Per Good Piece and what it applies to. That is a step, a machine / station, an item or an item category, or any combination. Add a From date and, if it ends, a To date.
- Operators count good pieces on the terminal as they work. Each count finds the most precise rate for that job on that day and keeps the rate and the earning on the count.
- Open Manufacturing > Shop Floor > Piece Earnings to see earnings per operator and week, as a pivot.
- With SmartMy HRMS, link each operator to their employee. The employee's payslip gets a Piece Earnings line with the pieces and the amount for the period not paid yet.
- When the payslip is approved or paid, those earnings are marked paid by it, so they are never paid twice. Resetting the payslip frees them again.
- Record each operator's skills per machine (Trainee, Can Work, Expert, Can Train) with a Valid Until date, to see who can run what.
Everything it does
Piece rates
- Per Good Piece (an amount in the Entity's currency)
- Applies to a Step, a Machine / Station, an Item, a Category (and its sub-categories), or any mix; none of them means any work
- From (today to start with) and To dates; archive a rate to stop it
- The rate must fit everything it names; the most precise wins: the step counts most, then the item, the category, the machine
- Between equally precise rates, the latest From date wins
- Shown as, for example, Stitch collar / Shirt / Line 2: 1.50
Earnings
- Each count of good pieces keeps Piece Rate, Rate and Earning (good pieces times the rate)
- Rejected pieces earn nothing
- The rate is the one in force on the day of the count; a later change does not alter past counts
- Piece Earnings: per operator and week, with filters and grouping as in the production log
- Several operators at one station: each count belongs to the operator who made it
To the payslip (with SmartMy HRMS)
- Employee on the operator form
- Salary component Piece Earnings (code PIECE): an earning, counted as wages for PF, ESI and bonus, taxable, not part of CTC, not for gratuity
- Payslip line Piece earnings (n pieces) with the earnings counted in the payslip's period and not yet paid
- Earnings marked Paid On the payslip once it is approved or paid; freed if it is reset
Skills
- Per operator and machine / station: Trainee, Can Work (to start with), Expert, Can Train, and Valid Until
- A Skills tab on the operator and a Skills list under Configuration
- Skills are a record: the terminal checks only the machines each operator may work on
Who uses it
Manufacturing AdministratorSets and changes piece rates.
SupervisorRecords skills and checks counts in the production log.
Production ManagerReads piece earnings per operator and week.
OperatorCounts good pieces on the terminal; earns the rate.
HR / payroll (SmartMy HRMS)Links operators to employees and runs the payslips that carry the earnings.
Where you use it
- Web: Manufacturing > Configuration > Piece Rates and Skills; Manufacturing > Shop Floor > Piece Earnings
- The shop floor terminal: the counts that earn
- With SmartMy HRMS: the payslip's Piece Earnings line
- Not shown to operators on the terminal: they see their counts, not their earnings
What you control
Settings
- Piece rates: none to start with; From is today when you add one
- Skill level: Can Work to start with
- Employee on each operator: empty until you link it (HRMS)
Works with
SmartMy HRMSPiece earnings of operators linked to an employee go on the monthly payslip as wages for PF, ESI and tax. The payslip marks them paid.
Questions
Do we need SmartMy HRMS for piece rates?
No for the rates and earnings: they work in Growth on their own, and Piece Earnings shows them per operator and week. Yes for the payslip: only SmartMy HRMS payroll takes them onto the salary.Which rate applies when several fit?
The most precise one. A rate for the step beats one for the item, which beats the category, which beats the machine. Between equal ones, the latest From date wins.What if we change a rate in the middle of the month?
Add a new rate with its From date, and end the old one. Counts keep the rate that applied on their day.Are PF and ESI worked out on piece earnings?
Yes. The Piece Earnings component counts as wages for PF, ESI and bonus, and is taxable.Can a supervisor correct a wrong count?
Supervisors can change counts in the production log. The earning stays as it was worked out when the count was made, so correct it before payroll and check the Piece Earnings view.Can operators see their earnings?
Not on the terminal. Managers see them in Piece Earnings; with SmartMy HRMS the employee sees them on the payslip.Related features
SHOP FLOORThe shop floor terminal: a tablet at each machineA tablet at each machine or station shows its jobs in big tiles. Operators sign in with a PIN or badge, and start and pause jobs. They count good and rejected pieces with a reason, and stop the machine with a reason. Every count goes straight into the order.PRODUCTION AND JOB WORKRoles for your team, and operators with a PIN or badgeGive each person in the office a role that shows them only their part of production. List your shop floor operators with a badge code and a PIN: they work on the tablet terminal without a login of their own.TEXTILE AND GARMENTSCutting lay by lay, and bundles with barcode ticketsRecord each lay with its marker, plies and the rolls it used. Cut books the fabric really used onto the colour's production orders and adds the pieces to the style order. It makes bundles with barcode tickets that operators scan at each sewing station.LINES AND SCHEDULINGAssembly lines: operation bulletins, balancing and hourly outputSet up each line with its stations, and write an operation bulletin per item with the SMV of every step. See the bottleneck and line balance at once. Each day's line plan becomes a production order, and the hourly board fills from the shop floor terminal.PLANNING, QUALITY AND COSTProduction reports: plan against actual, material against BOM, scrap by reasonThree ready reports for the production manager. What was planned and what was made, by item and month. The material planned and used on orders. What was scrapped, by reason. Each opens as a pivot you can turn, filter and export.
See your shop floor on it.
Tell us what you make, how many machines and people you run, and how production is recorded today. We will set up a line with you and run a job on the terminal.