Payroll Manual for Modular Work Teams at Maryland Clothing.

This section and Exhibit V are taken from the Final Report of INSTALL MODULAR MANUFACTURING WORK TEAMS AT A DAM, PHASE II, for the purpose to provide an adequate description of the reasons for the payroll procedures selected and the intent of the system. Section 2 will start detail payroll procedures and specific explanation of the formulas used in the system. The task of converting Maryland Clothing from a true piece rate shop to a group based incentive program has not been simple. Payroll procedures at Maryland Clothing have been built around a computer program, that is limited and with the ability to use different conversion factors for different employees. CGA operated on the basic principle that as long as group output in SAH or SAM was the same as the cumulative amounts previously contributed individually, then no one in the team would lose money. If the group did more, they would all earn more. If the group did less, they would all earn less. In order to make this a reality, CGA did the following things.