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When Workers Are Paid on a Piece-Rate Basis, an Employer

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When workers are paid on a piece-rate basis, an employer must be able to easily measure each worker's output.


Definitions:

Fill Orders

The process of completing customer orders for goods or services.

Manufacturing Cycle Efficiency

a measure of the efficiency of the production process, typically calculated as the ratio of value-added time (the time spent actually transforming the product) to total cycle time.

Fill Orders

The process of completing customer orders by preparing and delivering the specified goods or services.

Throughput Time

The total time taken to complete a process from start to finish, often used in manufacturing to assess efficiency.

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