Estimated Wage in Outsourcing Maintenance Activities Using the Overall Craft Effectiveness Index

Document Type : Original Article


1 Assistant Professor in department of industrial engineering, Iran University of Science and Technology(IUST) & IHU University

2 Master of Industrial Engineering, Iran University of Science and Technology,Tehran,Iran


Estimating the wage of maintenance activities depends on time, cost, and quality factors. For this reason, in the field of costs, rent management is very important, which with proper planning can lead to significant savings in organizational costs. In the case of maintenance, payments are made at the rate approved by the government and in companies and repair shops are made at the rate approved by the union. Due to the fact that the quality of repair work is different at different levels, wages should be different according to the quality and level of repair work. In this paper, we present an output-driven model (output-driven means that people's wages depend on their work output) in order to accurately calculate wages and also to create a bargaining framework in the maintenance sector using the Overall Craft Effectiveness Index at different levels of outsourced maintenance activities. In order to test the model, data related to the automotive industry in different brands of the market (Ikco & Saipa) under the supervision of legal agencies have been used. This method, in addition to motivating, causes the person who is more effective and provides better output will receive a fair wage commensurate with it.