Measured daywork

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A tool used primarily in manufacturing facilities as a control device to measure productive output in relation to labor input within a specific time period. The measurement of the work content is accomplished through the use of time standards which are usually the result of a stopwatch time study, predetermined time standards (methods-time measurement, the work-factor system), or some other form of work-measurement technique designed to measure tasks of labor under normal and average conditions.

A measured daywork plan is similar to incentive pay plans inasmuch as in both plans, time standards are used as a device to measure operator performance and also for various forms of management planning. However, in a measured daywork plan, worker income is based on a fixed hourly rate established by management, and is usually affected only by job classification, shift premiums, and overtime adjustments. Because of the fixed hourly rate in a measured daywork plan, there is little incentive for a worker to exceed a normal or standard level of performance or productivity. On the other hand, time standards are more readily acceptable, and become less an item of contention to the employee and bargaining unit (union).

The term daywork as used in industry denotes a fixed hourly rate that is not raised or lowered by varying worker performance levels. The hourly rate for a particular job should be a fair one relative to other jobs in the shop, and should also be comparable to rates of pay for similar jobs in the industrial community.

Once measured labor time standards have been established for shop operations, in addition to evaluating operator performance and identifying labor costs, new-product costs can also be determined prior to release to production, worker-power planning and scheduling can be done, equipment capacity requirements can be identified, and planning and make/buy decisions can be facilitated. See also Performance rating; Productivity; Work measurement.