An Incentive Plan for Inspectors Based on Linear Indifference,
ARMY MATERIEL COMMAND TEXARKANA TEX INTERN TRAINING CENTER
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The United States Army Materiel Command, as is any responsible organization is interested in controlling and reducing inspection related costs. The indifference incentive payment plan for inspectors presented in this paper is applicable to many inspection situations associated with inspection of high volume-low value items produced by government owned-government operated facilities and to inspection situations associated with rebuild and maintenance programs on depots. The productivity and accuracy of human inspectors vary from day-to-day and from item-to-item the plan presented in this paper allows the Army to control the costs associated with these variations by paying the inspectors a wage commensurate with their performance to offset these cost variations.
- Administration and Management
- Manufacturing and Industrial Engineering and Control of Production Systems