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Appraisal Letter Template for Manufacturing Company

A manufacturing appraisal letter shares the result of the annual review with plant supervisors, engineers and staff. It records the rating and revised wages, and links them to shop-floor measures such as output and OEE, rejection rates, safety record, attendance and kaizen or improvement contributions.

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[Company Logo][Company Name]

PERFORMANCE APPRAISAL LETTER

Ref. No.:
[Reference Number]
Date:
[Date]
Employee ID:
[Employee ID]
Plant:
[Plant Name]

To,
[Employee Name]
[Designation], [Department]

Subject: Annual Performance Appraisal – [Review Period]

Dear [Employee Name],

We appreciate your efforts in the [Department] during [Review Period]. Based on the review by your Section Head and Plant Head, your performance rating is [Rating].

Key Results

KPITargetAchieved
Production vs Plan[Target][Achieved]
OEE of line / machine[Target][Achieved]
Rejection / Rework %[Target][Achieved]
Lost Time Injuries in areaZero[Achieved]
Kaizens Implemented[Target][Achieved]
Attendance %[Target][Achieved]

Revised Wages

ComponentCurrent Monthly (₹)Revised Monthly (₹)
Basic Salary[Amount][Amount]
Dearness Allowance[Amount][Amount]
HRA[Amount][Amount]
Other Allowances[Amount][Amount]
Gross Monthly[Amount][Amount]

The revision is effective from [Effective Date]. PF, ESI (if applicable), bonus and other statutory benefits will be computed on the revised wages as per law.

Promotion / Upgradation (if applicable): You are promoted to [New Designation] / upgraded to [Skill Category] with effect from [Effective Date].

Expectations for Next Year

  • [e.g. Reduce changeover time on Line 2 by the agreed target]
  • [e.g. Train two operators for multi-machine operation]
  • [e.g. Maintain zero safety incidents in your shift]

Other terms of your employment remain unchanged.

Keep up the good work.

Yours faithfully,

For [Company Name]
[Authorised Signatory]
Plant HR
Received by
[Employee Name]
Date: [Date]

What this template includes

  • Rating and period
  • Production, quality and safety KPIs achieved
  • Attendance and discipline record
  • Improvement contributions such as kaizen or 5S
  • Revised wage table with basic and DA
  • New grade or skill category where promoted

When to use it

  • Annual increment for staff-category plant employees
  • Recognising a supervisor whose line improved OEE or reduced rejections
  • Communicating promotion from operator to line leader or supervisor
  • Revising pay of engineers after multi-skilling or new machine qualification

How to customise this template

  1. 1Insert KPI values from the plant MIS
  2. 2Update revised wage table, keeping DA separate if used
  3. 3Mention any skill category upgrade
  4. 4Delete the promotion line if not applicable
  5. 5Add goals for next year such as reducing changeover time

HR tips

  • Use the wage settlement for unionised workmen rather than individual appraisal letters
  • Never reward output that came at the cost of safety
  • Recognise team results as well as individual effort
  • Share KPI definitions so ratings feel fair

This letter is a starting point. Where wages are governed by a settlement or standing orders, follow those first, and check revised wages against minimum wage notifications and applicable labour laws.

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Frequently asked questions

Which KPIs are used in manufacturing appraisals?+

Common ones include production versus plan, OEE, rejection or rework rate, safety incidents, attendance, and improvement ideas implemented.

Do workmen get appraisal letters?+

Where wages are fixed by a long-term settlement, increments follow the settlement. Appraisal letters are more common for staff and supervisory categories.

Should safety performance affect increments?+

Safety behaviour is a core expectation in plants and is commonly included as a KPI or gate in appraisals.

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