Cost control of aircraft manufacture a modern approach

Extract

Bonus schemes have tended to fall into disrepute and have been neglected; this is a pity because they are an extremely powerful tool when applied successfully. One of the weakest areas of the individual bonus scheme for cost control was the setting of standards through individual negotiation influenced by many factors, rather than by estimating the work content.

During 1975, the individual bonus scheme was suspended at British Aerospace Weybridge-Bristol Division, Filton Site, and a start was made on the development of a cost control system based on work measurement and using modern computing techniques. The new system had to contain two essential features. First, the speedy identification of jobs giving problems on the shop floor, since it was realised that the suspension of the individual bonus scheme would slow down this process, secondly the provision of a fast and reliable method of checking the work issued to the shops against the original estimates.