Meaning of Bedaux Plan
Under Bedaux plan, standard time of each job is determined in minutes known as Bedaux points of B’s one B unit represents the amount of work which an average worker can do under ordinary conditions in one minute.
The standard time, is determined by work study and each job is assigned the number of B’s. Under this system, the worker receives his daily or hourly rate plus(+) 75% of the points saved, multiplied by one sixtieth of his hourly rate. The remaining balance of 25% is paid to supervisors and indirect workers. Thus,
Bonus = No. of B’s saved x Hourly rate / 60 x 75 / 100
Earnings = (Hours worked Hourly rate) + Bonus
Advantages of Bedaux Plan
Following are the advantages of this method:
1. It guarantees minimum wage to all workers.
2. Output of workers is measured in terms of common unit known as B’s. This makes easier the task of recording production of workers and comparing it with standard. Suitable data for production control becomes easily available.
3: As the benefit of 25% of time saved is given to supervisors and indirect workers. Bedaux plan may be extended to the department as a whole including indirect workers.
Disadvantages of Bedaux Plan
1. Detailed calculation of ‘B’ units increases of clerical works. This system is thus comparatively costly.
2. This system is generally not preferred by workers because they do not get the full benefit of the time saved by them.
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