Association between the Productivity of Workers According with Piece-Rate System and the Production Quality of Machinery Plants

The aim of this study was to evaluate the association between the productivity of workers according with piece-rate system and the production quality of businesses as exemplified by machinery plants. Methods. The study was performed using data from 6 machinery plants in Saratov (Russia) for 5 years (2011-2015). The productivity of workers was evaluated by percentage of met standards of the worker's output per year. Effectiveness of machinery plants was evaluated by quantity of production, acquired profits and production defect rate. Results. If average percentage of met standards of the worker's output was below 100%, incidence of production defect rate within range of 4.0-6.5%; if met standards were met more than by 115%, incidence of production defects increased up to 10.5%. Lowest production defect rate (2.0-3.0%) was observed when percentage of met standards of the worker's output was within 100-115% range. If percentage of met standards was below 95%, there was a modest decrease in profits, while if it was 95% or higher, profits increased. Conclusion. Optimal mean percentage of meeting standards of the worker's output for mass production at machinery plants lies within range of 100-115%.