The Iron Age 1917-01-18: Vol 99 Iss 3

| New York, January 18, 1917 SHED 1855 it 4 yf GUE’ yee i hi, VOL. 99 No VT a FF ' - aot! SF z of : Relocating Equipment in a Machine Shop Improving Operating Conditions Without Buy- ing New Machines or Erecting New Buildings —First of a Series of Management Discussions BY FREDERIC industry, regardless of kind, size and system eady in use there, it is not a very hard matter introduce improvements which will be consid- be very important. Of course the intelligent rsevering co-operation of the management must dered as a condition sine qua non. here reminded of two reports that I wrote | handed over to the respective managements of two v different industries, located indeed in two differ- countries. In both cases the conditions were almost like and similar to all other cases of the majority of ctories all over the world. This is the reason why I not afraid to make the foregoing statement. One factory suffered frequently from congestion, hich oceurred sometimes in one place, sometimes in ther. The congestion occurred not only at times f exceptional activity but even when the factory was -oducing its normal output. To remedy this, it had proposed at different times and from different les to construct new additions to the present building. Close study of the question convinced me that if working methods were introduced, it would possible to eliminate the chronic congestion re- to, and prevent congestion when the factory is rking at maximum production. “More than this,” port went on, “it is quite possible, as I will prove ereafter, to increase the maximum productions three without being obliged to make radical changes. fact, to do this: | do not propose to buy new machines. I do not propose to build new buildings. ‘l advise you only: lo advpt a new location of machines at present To change the location or enlarge certain doors, vs, stairways and elevators. lo strengthen certain parts of the first floor, etc. cost of these changes is quite insignificant ompared with the direct and indirect benefits sulting from the introduction of the above-mentioned ” no. In th r e other report covering a study of a new layout ge shop I proposed to increase actual manu- £ capacity from 50 to 100 per cent, and to save ear 75 per cent of the cost of handling materials. author, who is a graduate of the University of * engaged as consultant in industrial management ‘ion in Brussels, Belgium, when the war inter- work He came to the United States to study _working methods and has now established himself ig engineer in industrial matters. The present is to be followed by others on the proper installa- whinery, as in a forge shop; on the Landline of o handling of machinery; the handling of men f labor, ete SCHREIBMAN History of the Average Plant Expansion In every factory, even in the best organized, one will find the same things. The only difference is that in some factories all departments are disorganized and poorly equipped, while in other factories only two or three departments are badly organized. Yet this fact does not mean that the remaining departments are well organized. One of the causes we meet very often is that the majority of the large factories have not always been large; they have attained their present growth littk by little. The proprietor of a small shop succeeds i: making his business prosperous; he is obliged there fore, to be constantly buying new machinery, and those machines, according to strong expression given by a general manager who is not afraid to speak the truth, are “thrown in in a hurry, never mind where or how.’ The capacity of the shop becomes more and more in adequate and congestion is inevitable, and normal work ing of the factory is impossible. To remedy this the management decides to extend the existing small build- ing. It may be due to justified ignorance of the prob able growth of the business, or to mere incompetence, but the fact is that the management fixes the capacity of the new building quite at random. The figures adopted are not based on logical reasoning—on the average production of the last ten years, for instance, or on the probable future amount of business. Concerning the location of the building, here, too, it is not chosen after deep reflection. One of the manage ment simply points his finger in some direction— perhaps I might say in any direction—and says: “We will place the extension here.” The only idea for justification of the decision is that one place in a corner of the factory seems to be less busy than another place in another corner of the same factory, and so it is taken. Finally it is decided to erect a new building, but how to build? What raw materials are to be used— cement, wood, iron, or what? What respective dimen sions must be given to the walls, the doors, to the parts of the roof, etc.? They don’t know themselves, and, unluckily enough, they don’t consider the matter to be of sufficient importance to be handed over to an archi tectural specialist. They believe, naively, that they can realize economy by doing it themselves. After this, is it any wonder that one will find in almost every factory that there are unsatisfactory buildings; that the capacity of some buildings is not suited to the requirements; that there is lack of light; that the doors are placed in such a manner as to cause drafts all the time; that the columns are weak and do not 187 + EP queer ope Th + %y THE The Machine Shop Before Changes Wer: ndert eI Ir ferent general class« ‘ machin | t reproduction r ing macnines and haper D tor dri £ y cl es B for bor chines; S for slotting machines; W for wheel presses, and etc.? In a word, failure and causes a constant allow the proper placing of cranes, the building is an utter loss of time and money and a no less constant inter- ference with the normal conditions of the factory itself. Again it happens often in such need, for instance, a pulley of they cannot find it. As they are in } working a factory that they given dimensions and a hurry (in badly factories are always in a hurry, be cause they do not have the habit of preparing thing ahead—they think at the last they take a pulley of whatever dimensions may be at their disposal in the storeroom. It is true they prom ise themselves that they will the first opportunity with a pulley of proper dimensions, but in some factories the employees change more than should organized they every only moment) replace it at be necessary; in fact, every day employees are dis- ones engaged. As up-to-date found in this factory—sometimes record—and the newcomer charged and new no records are to there isn’t the shadow of a in this case ignores what has been done by his pre- decessor, or he does not want to know, or he has no time to study what has been done before, busy as he is with new problems that he has been entrusted with, so consequently he does not bother with the pulleys, belts his predecessor intended to There are reasons why Con- be and other things which change at the first opportunity. the “first opportunity” has not presented itself. sequently, the provisional pulley remains for all time. Now this happens with not only one pulley, but with many, and the same things that happen to pulleys can very well happen with gears, shafting, belts, and so on. One can easily understand the reason why almost all machines in a factory are located helter-skelter and have not the requisite speed, feed, etc. A Machine Shop as It Was Found The irrational location of machines and uneconomi cal use of space in a machine shop are shown in an The placed in accompanying drawing machines are { } VIET: vi WT f j / Z t—¥ ee 4 e = -" 5 i | L L = pit oMzi't 2M oM OM aM MyM ' ] BPP; p VW, dpi Aklip ARE [ye TZU; V, : p fy Cit ||" i BOLT AND NUT MACHINES BENCHES Plan of the plans indicate position of workmen. Two or vision of space for standing at different points. be done and on the other a similar receptacle for the finished existing locations owing more circles at IRON AGE Same Machine Shop with Machines Rearranged and Space In general on worl l | a | lors were used to diflerentiate had to letters, so that ZL stands for lathe; P f I G fi rinding machines; M for mill circles The represel! t large! all directions without any system and are all mixed yy together. One will find milling machines, pla shaping machines, lathes, etc., in the same corner. 1 mall circles represent the places where the wor must stay to attend the machines. As thus the workman has the light sometimes at his sometimes in his face. The machines are so together that there is no space to pass between. The is still more aggravated on account of the fact that in every available space one will find such a larg: juantity of castings, angle irons, wooden boards and so much rubpis:. that if one would go through this shop he must be as agile as his antidiluvian father While some of the pieces are going through to fil current order, others are “side-tracked” and wait around for weeks, some probably much longer. In the great majority of cases there is no justification fo leaving pieces not required on a current order piled up indefinitely in the working space. The handling of materials from one spot to another could not be done otherwise than by means of a crane which picks up materials in some places and deposits them where they are needed. The trouble is the service of a crane can only be used in a narrow band of the machine shop which is provided with the crane. The remainder of the shop is devoid of such conveniences as a crane. There are no other means existing in this section whereby materials can be transported from one place to another, unless they are taken piece by piece on the shoulders or in the hands of the laborers, but as it is almost impossible for a person unencumbered with anything to get through the congested place, on¢ wonders how the laborers are to get through. The handling by means of a crane in that sectio1 where it is available is not very practical, and is als In fact, the manufactured pieces are not +he stat back ase very costly. gathered in containers, but are thrown directly or floor, and it remains for the crane to pick them uJ In the most favorable cases the crané Though this piece by piece. takes a board loaded with several pieces. The small circles t Provided for Extra Machines, 1 single machine may indicate two or more operators © one side of a machine is a box or tray containing the W Some nine machines at the left end were left their heavy foundations ra * +heil allows the crane to take a larger load at a however, rarely exceeding % ton) it is danger- load many pieces on the one board, as they ely to drop, injure workmen and become dam- \s no control exists as to what the craneman laborers ought to do, one can understand how wing of pieces goes very slowly and is ex- the arrangement is it is absolutely impossible to acks installed for running trucks. Besides this, foor is not level with the floor of all the neigh- departments, it would be difficult to install a or network of rails in this factory. THE IRON AGE 189 The second drawing shows the same machine shop rearranged with the same machinery grouped by classes of machines and affording space for trays or boxes of materials in process and space for trucking as on narrow-gage tracks. Bolt-cutting and nut-tapping machines have also been included, these being removed from another department of the works. Along the outside wall are sectional benches, and a feature of the rearrangement is the location at convenient points of inspection and supply stations. At the upper left is located a flexible tool-distributing and store room which the author has devised and which it is intended to describe in a separate article The Question of the Steel for Rifle Barrels Need for Steels to Offer Maximum Resistance to Erosion and Yet Meet Machining Strength and Cost Requirements — Present Practice BY C. B. LANGSTROTH cuss rifle barrel steel. The topic of rifles is be- ing discussed widely and the barrel stock has a great deal to do with the accuracy, life, cost and time required to manufacture a barrel, which is the most im- portant component of the rifle. Soft steel we need scarcely consider, as the use of this class of material in barrels for military purposes has been given up since the introduction of smokeless powder, and by far the largest number of barrels being made at the present time are for military purposes. Nickel steel is being used for a large number of the military barrels manufactured now and it would be used r more but for the fact that many of the arms com- anies have had trouble machining this stock due to its t being properly manufactured or not receiving the st suitable heat treatment. Manganese steel, for a number of years, has been e principal stock from which military rifle barrels » been made and is the material used in making the for the Springfield M ’03. This steel has a great n its favor, as it can be supplied by a large num- f steel plants in a satisfactory condition to drill le, whereas only a limited number of plants are ng a satisfactory nickel steel. ‘-hemical analyses of the steels which have been to work satisfactorily are as follows: A [ the present time it does not seem amiss to dis- inalyses of Steels for Rifle Barrels Soft Nickel Manganese .0.13 to 0.18 0.30 to 0.40 0.50 to 0.60 0.70 to 0.90 0.50 to 0.60 1.00 to 1.25 .0.07 to 0.12 Netover 0.05 Not over 0.06 ; pe 0.10 to 0.20 0.15 to 0.25 +c eee 0.05 to 0.09 Notover 0.03 Not over 0.06 ’ y 3.00 to 4.00 ‘ ‘ally these steels should test as shown in the g table and still machine readily: Physical Characteristics of the Barrel Steels Soft Nickel Manganese lb. per sq. in....40,000 90,000 75,000 ximum Ib. per sq. in.60,000 100,000 110,000 n 2 in., per cent.. 30 20 20 of area, per cent.. 60 60 45 btain a uniform stock and eliminate forging the soft steel barrels are normalized by heat- 625 deg. Fahr., soaking at this temperature for ir, and are then removed from the furnace to the air. The heating is done in a muffle or semi- ‘urnace and the barrels are charged either di- n the floor of the furnace or on pans. The latter s the quicker, as the pans may be loaded while the furnace is heating one charge and this may be re moved from the furnace and anotker full pan placed in the furnace much more rapidly than by charging the individual barrels. Heat treating the other classes of barrel steels is becoming the general method, as it is found in the drilling and rifling, which are the most difficult machin- ing operations, that better results can be obtained when heat treating is practised than when the physical con- ditions desired are sought through cold rolling. This latter method is only employed in the barrels made from manganese steel. The process consists of first rolling the outline of the barrel from the billets which are preheated to 1030 deg. Fahr. The barrels are then reheated to 1370 deg. Fahr. and passed between the rolls which give them their final shape. The operation on the blanks is finished at a temperature of 1200 deg. Fahr. The barrels are then straightened under a 500-Ib drop hammer. Heat Treating of Barrels Barrels that are to be heat treated are, however, as a rule formed to the required size at the breech end on an upsetting machine and then heated in a semi- muffle furnace. This process has been tried in a semi- continuous furnace but without success up to the time of writing, although there is one concern still working on this method. The temperature generally used for hardening the nickel steel is 1500 to 1525 deg. Fahr., and for the manganese 1475 to 1500 deg., but this has to be varied, depending upon the chemica] analysis of the different shipments of steel from which the bar- rels are to be made. The barrels are brought up to the required temperature in about one to two hours, depend- ing upon their number and the heating factor of the furnace, and then allowed to soak at this temperature for a similar length of time, after which they are quenched in a tank of oil. The quenching solution is oil, as this is not liable to crack or warp the barrels, and it should be kept at a constant temperature of from 70 to 100 deg. Fahr. Many plants are now equipped with an oil circulating system in which the hot oil is cooled by a refrigerating machine. Following the hardening of the barrels, the next operation is the drawing to the required physical re- quirements. This is done in the same type of furnace as is used for the hardening and also in a semi-con- Anges ve vo er ae ne gh AOS , geen se a — . 190 tinuous furnace, which is in this case very successful. The time required is about the same as for hardening and the temperature ranges from 1100 to 1250 deg. Fahr., depending upon the physical requirements. Every bar- rel after drawing has a small flat surface ground on the breech end on which the Brinell test is determine whether the barrels meet the physical test. If they are too low, they are hardened once more and drawn at a lower temperature; and if they are too high, they are simply redrawn at a higher temperature than previously. made to Different Alloy Steels Might Be Studied So far the arms companies of the United States and the steel manufacturers have not got together to find out what elass of steel really is the best for ma- chining for strength and also to give the longest life to the rifle. companies on existing materials, but they have not been Many tests have been made by the arms large caliber rifles, however, such tests have been rather fully gone into; and if we judge by the results of these tests, the purer the steel the longer the barrel will stand up against erosion, but it being impossible to use steel of exhaustive enough to cover all conditions. On this character, owing to its not being sufficiently strong, we must alloy it with some element to raise the physical requirements. These tests also show that the only suit able alloys are ones that have a high fusion point and hence a steel was manufactured that was alloyed with tungsten. This material was found very suitable ability to resist erosion, but its cost and difficulty in machining would prevent it from being used for rifle barrels. In conclusion, we believe that it would be advisable in its to have more thorough tests made as to the possibilities of changing the composition of the present barre! steels either by introducing some new alloy or a new com- bination of the alloys now used. As an example we might have a higher silicon and lower manganese con tent or use alloys of chrome-vanadium or of molyb denum. If it is found impossible to obtain a steel with any marked superiority in resisting erosion, then the chief governing qualities should be the machining prop erties, strength and cost. A Vertical Sliding Solid Steel Window The Detroit Steel Products Company, Detroit, Mich., has placed on the market a type of vertical sliding steel sash for windows, the construction of which is shown in the accompanying illustrations. An angle iron is attached to the sliding section of the sash, pro- truding into the center of the channel guides. Line contact, it is pointed out, is thus secured between the web of the sash channel and the ends of the flanges A/R CURRENTS LINE CONTACT An Angle Is Attached to the Sliding Section of this Vertically Sliding Steel Sash and Projects Into the Center of the Channel! Guide Employed, thus Causing Any Air Currents from the Outside of the Building to Change Their Direction Ten Times, as Indicated by the Arrows, Before Reaching the Other Side of the Sash of the guide channel and the ends of the angle on the sash and the web of the guide channel. With this ar- rangement the air currents are given ten different directions before they may finally gain entrance to the building. In addition to securing better weathering through this construction it is pointed out that the THE IRON AGE January 18, 19 sash operates easily as friction is eliminated and entire member is preserved and protected by pa which is not rubbed off. The two moving sections : counterbalanced to such an extent that 2 or 3 Ib. pressure is found to be all that is required to mov: window of this type. A Special Type of Tapping Machine A precision tapping machine has been designed a: built by the H. E. Harris Engineering Company, 3ridgeport, Conn. Among the objects sought in it design were the tapping of accurate holes, a red tion in tap breakage and the securing of a large o Head at the Rig Causes the Work t Forward Driving Work-Carrying Head at the Left ‘ap and Engages the it the Extreme Left put by permitting the operator to use both hands to place and remove the work and employ them for that purpose only. The machine consists essentially of two heads, one for the tap and the other for the work, and a bed. The tapping head at the left is mounted in a fixed position on the bed and is a casting containing two bearings supporting the rotating tapping spindle. In addition these bearings act as studs for the forward and reverse belt pulleys to rotate upon and provide a thrust bearing for them. The inner surface of the rim of these belt pulleys is bored to act as the inter nal members of the tap driving clutches. A _ spider mounted permanently and centrally on the tapping spindle carries the external members of the clutch, a slight longitudinal movement with the spindle being provided to enable a change from one clutch to anothe: to be made. Aluminum is employed for the clutch spider to insure lightness and the periphery of the spider is grooved to give a cushioning grip to the leather friction surfaces and reduce the weight still further. The edges are spun up or outward over the leather, this arrangement being relied upon to prevent oil from getting on the leather or between the clutch surfaces due to either centripetal force or gravity The construction of the belt pulleys also tends to carry oil away from the frictions. Oil cups in the pillar supports for the bearings feed oil by the suction caused by centripetal action and by gravity through channels and oil grooves to every moving part. It is explained that the capacity and location of these channels and oil grooves is such that undue waste or spattering of the oil are pre vented. The work carrying head at the right is adjustably mounted on the bed to accommodate large or sma! work and long or short taps. The work is carried in a simple taper shank fixture fitting into the hollow sliding work spindle. A pin slipping into a notch is relied upon to prevent the fixture from turning in the work spindle and that in turn is prevented from rotating by an adjustable clamp dog carrying a hardened steel stud upon which a roller with an intermediate slip bushing to reduce friction rotates. All of these parts are hardened and ground and work in a hardened and ground channe! piece, which, it is emphasized, ary 18, 1917 ts rotation but permits longitudinal motion with- retarding friction of a key when under rota- essure. Rough adjustments for the size of the length of tap and depth of hole are made by ng the whole work carrying head longitudinally bed and the clamp dog on the spindle. A threaded hardened steel adjusting screw, which ned into the clamp dog and bears against a ed steel stop or button in the tailstock, provides adjustment for exact depth. yperation the fixture is placed in the taper hole work spindle and the tap is placed in the tap The work carrying head is next set to approxi- the proper position and the clamp dog and stop et to the correct depth. The operator then with his chest opposite the breast pad at the right of the work spindle and facing toward ‘int of the tap at the left. A piece of untapped : picked up with the right hand and placed in the and a light pressure applied to the breast pad. pressure is transferred to the cutting end of the d causes the spider friction to engage that of rward driving pulley at the left of the tapping The operator then removes his right hand from rk in the fixture and reaches for a new piece of slight forward pressure being maintained to he friction engaged. During the tapping opera- the left hand is placed on the work in the fixture. When the proper depth of hole is reached, a slight ird pull on the work with the left hand disen- the friction and the spider and tapping spindle to a stop and the reverse driving pulley and clutch ght of the tapping head are engaged to reverse tapping spindle. This motion brings the breast id back against the operator’s chest and he removes tapped piece from the fixture with his left hand nd at the same time picks up a second piece with his right. As this new work is placed in the fixture the finished piece is placed in a tray at his left side and vork on the second piece started by applying pressure the breast pad. Details of Gas-Producer Operation “Operating Details of Gas Producers” is the title Bulletin 109, by R. H. Fernald, professor of me- hanical engineering, University of Pennsylvania, re- ntly published by the United States Bureau of Mines. Mr. Fernald discusses the producer-gas-plant situ- tion as it exists in the country to-day, and also com- ires the producer-gas plant with the steam turbine. Says: steam turbine naturally lent itself to central-station It was a unit easily understood: it could be readily | without radical changes in the boiler-room equipment ; t rapidly met the demand for large central-station units. producer-gas plant was an untried factor: it met with £ opposition from those who saw possibilities of being out of their positions; its installation meant a com- novation of the entire plant, with the replacing of the boiler by the producer unit. Large units of this type materialize, with the natural result that even to-day ducer-gas power plant is not the large central-station ilthough it occupies a strong position among the iso- lants and the small central stations eral unsuccessful attempts have been made by various cations to collect data relating to these important mat- infortunately little or no information could be had. ng the value of such data in connection with the roblems of fuel conservation and its investigations use of producer-gas power, the Bureau of Mines that an effort should be made to procure operating from a small number of representative producer-gas ising scrubbed gas either for power or heating pur- nd that primarily data from plants using bituminous | lignites should be sought, but that data from a few rger anthracite plants and the oil and wood plants included. these points in mind, data sheets were sent to the of a limited number of plants, and the response has ehly gratifying. Returns of a positive character were from 39 installations. It is bélieved that in this sufficient detailed information is presented to provoke discussion on the part of those interested in this power, and to serve as a basis for comparison by the ' Operators of similar plants. ’ THE IRON AGE 191 Tool for Extracting Broken Set Screws The Cleveland Twist Drill Company, Cleveland, Ohio, has developed a tool for extracting broken set and cap screws, studs, staybolts, etc. It is known as the Ezy-Out screw extractor and operates on much the same principle as that employed by the ordinary corkscrew as it bites its way into the cork, secures a purchase and then backs the cork out, although in this case the broken screw is backed out on its own threads. These tools are made in three different sizes covering practically all machine shop require- ments and are supplied in sets. The extractor is made of steel that has been given special treatment to enable it to withstand the torsional! strains to which it is naturally subjected in use. To remove a broken screw or stud with the extractor a hole is drilled in the portion remaining, as shown at the left of the accompanying illustration. The ex- tractor is then inserted, a slight twist being given to seat it firmly. This causes the left-hand corkscrew like spirals of the extractor to grip the sides of the drilled hole and exert a twisting or rather an untwisting action on the broken screw. It is em- phasized that the tighter the screw sticks the harder the fo Remove a Broken Set Screw Staybolt Cap Screw or Stud Hole Is Drilled in the Broken Screw After Which the Extractor Is Inserted and the Screw Backed Out On Its Own Threads, as Show! it the Right extractor grips and twists and the screw soon is backed out of the hole on its own threads easily and quickly. In addition to effecting a reduction in the time required to remove a broken screw, it is also pointed out that the work is accomplished without danger to the threads of the hole. A New Soldering Iron of the Electric Type The Cutler-Hammer Mfg. Company, Milwaukee, Wis., has developed a new type of electric soldering iron. Five standard sizes ranging from % to 1% in. in diameter are made and the electric heating unit is hermetically sealed inside the body, thus preventing moisture, heated solder or flux from penetrating a joint and coming in contact with the wire of the heating unit. Steel is also employed for the body to eliminate the likelihood of seams opening on account of unequal expansion. The copper tip does not screw into a hole in the body but screws over a threaded core projecting from the latter. In this way the heat is led directly to the tip and concentrated where it is required. In ad- dition to soldering the iron can also be employed for melting wax, branding, etc. The committee on industrial relations appointed by Mayor Mitchel, of New York City, met a committee of the New York-New Jersey branch of the National Metal Trades Association at the office of the associa- tion, 30 Church Street, New York, on Thursday, Jan. 4. They formed plans of organization and discussed means of obtaining information for a survey of the metal working industry. es ees eed ——— Seg on a me —— The Financial Organization of Factories A Synopsis of the Methods That Are Needed for Economical Production and the Building BY EDWIN HE primary object of all cost systems is to obtain a record of the amount of money spent on labor and material, to ascertain the proportion of the expense of working the factory to be added to these two items, and to present (1) the total net cost of every production and (2) such divisions and sub divisions of the cost as may be considered by the man agement most likely to enable a close scrutiny of work ing processes to be made and a continuous comparison with corresponding items in the estimates. Four essentials of a good cost system are: (1) curacy; (2) simplicity; (3) rapidity; (4) elasticity. Ac Fig. 1—Cost Progress Curve; Steel This seems sufficiently obvious, but writers on these subjects complain that elaboration of detail is only too apt to increase to a point where the cost of work- ing the system becomes unduly high. The case of Woolwich Arsenal is quoted, where in 1906 over 4 per cent of the total wage bill was spent on clerical admin istrative labor. lime, Material and Other Records Accuracy in recording time is of the first im portance and at the same time most difficult to insure When work is constant and is paid on piece rates, the returns are probably as correct as is but when a man on time rate is employed on a number of comparatively short operations for various orders, the difficulty of accurate record becomes greater and at tempts to meet it probably costly. ciple it would foremen in the timekeeping system to an influence them in spreading the evenly as possible, so as to avoid the difficulty referred to above, but at the same time shall not interfere to any ful extent with their function, the and technical supervision of the work. Much attention has been paid to the storehouse by various writers, as it constitutes a possible source of leakage which is difficult to detect unless the cost sys tem is carefully designed and applied. A well ar ranged system of cards to offer the best tion and to give the clerical department complete in formation in a form which is readily accessible. In the design and application of the system, however, there should always be the closest possible collabora- tion betweeen the accountants’ department and the technical management. In fluctuating markets the storehouse requires considerable attention, for the ad- necessary, As a general prin- hould be involved extent which Ww ork seem that shall as harm- real distributior seems solu *From a paper on “Works Organization, meeting of the North-East Coast Institution of Shipbuilders, Newcastle-upon-Tyne, Oct. 2¢ presented at Engineers and Plant Wages Up of Business L. ORDE iustment of the rates at which various articles sho be issued must exercise an important effect on the « of the product and on future estimates. As a ¢ eral rule it seems that the market rate at the d of issue or at the nearest date that can convenier be ascertained should be taken and any profit or dealt with in the stores account. Unless this is d direct comparison between the market rates and cost of the product becomes impossible and future est mates based on these costs are misleading. Materials ordered direct for contracts pass throug! the ordinary books required by the system in use, a1 materials for stock through the stor house or yard and can be suitably corded on cards. Estimating Much has been written on the su periority of American methods of cost keeping and estimating, and so far as the writer has been able to ascertain they possess the attractive feature of rapidity There can be no doubt that the best way of obtaining accuracy is to be found in a system which enables results to be re- corded within a few days after the work is finished, and the details are still fresh in the memories of those concerned in it. The estimating department then has the knowledge that the net costs or which its work is based are the re sult of immediate inquiry and inves tigation when discrepancies occur, and so can be used in a new estimate without any misgivings. Another feature of what may be called the American systen of estimating is the employment of technical men as estimators both of quantities and rates. These tech nical men generally specialize in one main department or group of departments, analyze net cost figures bring them up to date, and work them into form: which they find most suitable for preparing estimates for the cost of work carried on in their own special department. In the highest development of the system they fix rates for various classes of work. The ad antages of the system are: 1. Technical peculiarities which should prevent the net cost figures of one contract serving as a basis for another, might pass unnoticed by any non-technica man and so spoil an estimate. 2. The technical estimating staff is in constant touch with the net cost system, and should be able to devise methods of presenting figures to the man agement which can be prepared by the net cost clerks and so keep the present and future work on a correct ost basis. On the other hand the system must be costly if it is really to be efficient, though this will be perhaps recouped in works where there is much estimating t be done, by the accuracy and rapidity which will be ittained by such a system in the hands of competent men. The inherent weakness of the system of esti- mating in general use in this country [Great Britain] .e., the calculation of quantities by technical men and rates by net cost clerks, lies in the difficulty experi enced by the net cost clerk in fixing his rates judicious y, owing to his lack of technical experience. It is impossible in this as in other details of finar- cial organization to dogmatize or to fix on any on system which is applicable to every factory. Th writer, however, considers that a judicious blend of the estimating draftsmen and net cost clerks can b¢ made which will bring out the best qualities of both 192 nuary 18, 1917 rtments, and so produce sufficiently accurate esti- ; for presentation to the managers. These are nsible for the cost of carrying out the work, and d therefore examine all estimates before they are for bids. he system of doing the whole of this work by of a technical staff has an advantage over the ost clerk system in that the technical staff, when actually engaged in estimating, can be occupied itching net costs as the work progresses, and in ng means whereby they can be compared with estimates at all stages. This will keep the man- nent closely in touch with the financial aspect of peration. \ close comparison between the cost of work in eress and the estimate is, of course, difficult to _ unless a large and expensive staff is maintained the purpose. Such a staff will insure that wages be quickly abstracted and compared with the corre- ding items in the estimate, without allowing a to make possible the occurrence of grave differ- without being noticed. This can to some ex- be arranged by plotting cost progress curves, of h the ordinates represent money, and the absciss2, If the scales are judiciously chosen, the esti- curve can be made to assume so definite a char- er that any marked difference between it and the tual cost curve, when it is plotted, can be seen, prob- y one or two weeks before it begins to assume rious proportions. Fig. 1 is an actual case where steel wages measure the progress of a ship up to he date of launching. A similar system can be applied other trades. It constitutes a valuable check on he progress and cost of the work, without entailing extravagant clerical staff. The ordinary bookkeeping systems have been criti ized, over-hauled and improved until there is little more to be done exeept perhaps in minor details. But the full development of a good net cost system and the establishment of a close connection between the ost, estimating and constructive departments on the lines indicated above deserve the careful attention of | those concerned with factory organization. The best results are likely to be obtained by the closest possible combination between accountants and engi- rs. If either is eliminated some essential element iccess will surely be forgotten. Overhead Charges No discussion on the financial organi- nm of factories, so far as it affects rnal work, should disregard the great {1 vexed question of establishment erhead) charges. The closeness of estimating and the accuracy of the st systems are indicated clearly by number of items placed under the d of indirect charges. When there are the work is well sub-divided and xl measure of accuracy may be ted upon; when there are many, the site may be confidently expected. The basis on which indirect charges ? ild be calculated in cost keeping and ating has been argued at consider- Fig ength by manufacturers, and it has held that some percentage should be taken of the cost of labor and material. Let us imagine two sister ships, one plated with nary steel and the other with galvanized steel. actual labor cost and works expenditure account covered by establishment charges would prob- | not show any very large difference between But a percentage on the sum of labor and ma- costs would show something rather substantial vor of the second vessel. This argument in one or another seems to show that the only correct on which charges should be calculated for net ind estimating purposes is the labor cost. On ther hand where contracts are placed on a time ' material basis, it is probably a benefit to the pur- . rs to fix charges on material and labor, as this THE IRON AGE — gives them an inducement to check extravagance in the choice of material. The sub-division of charges is a question which probably never will be finally settled, for conditions in engineering works are constantly changing, and though elasticity is claimed as an essential of a good cost system, this quality must sometimes fail under new developments, and changes must be made. In engineering works where a large amount of the work is done on machine tools, it is probably advisable to charge all such capital cost items under a special heading, and provide for them by fixing a rate for each machine which is added to the cost of all the work which it produces. The extent to which this should be carried, how far shop charges should be kept separate from estab- lishment charges proper, whether it is advisable to sep- arate shop and departmental from distribution and general charges, and many questions of this kind can only be decided by the exigencies of the particular business. It would seem, however, that the greatest accuracy may be expected where the items under direct charges are many, and those under indirect charges few. The best facilities for scrutiny by the manage- ment will be provided if sub-division is carefully made on this line. The cost of estimating and bidding is an item which should be carefully kept if only as a record of the un- productive work, and a guide as to how and where it has been apportioned. This brings under review the idiosyncrasies of customers in regard to the demands they make on the estimating staff, compared with the value of the orders given, and may form an important factor in deciding policy. What a Cost System Should Show The perfect cost system should be capable of show- ing at a glance the cost of work as it proceeds, but unfortunately that system is yet to be devised. It may, however, be taken, that in most factories, ship- yards, or engine works, some little signals can be set up which will be serviceable symptoms of the financial health of the place. Some of these are: Weekly returns of material and wages showing how they are apportioned; weekly output of various trades; machine time worked, and many similar data which can be easily collected and 4 icteristic Curve of 12 Month Riveting Outfit applied as best suits the particular trade or the re- quirements of the management. In this, as in all de- tailed cost accounting, the exercise of discretion is required in deciding the extent to which details shall be earried. The case of Woolwich Arsenal has beer quoted above. It is easy to imagine that there may be many others. The output of shipyards can to some extent be shown by the number of rivets worked, provided proper correction can be made for difficult work, bad weather, holidays or other causes which re- duce output. A comparison of these results and, say, the charges, requirements of the yard or the volume of work in hand is often a useful guide as to genera! progress. A characteristic curve (Fig. 2) illustrates this. No doubt numerous checks such as this have been devised and are in use in most manufacturing pan tre rea 4 Saeed maa ton ene ee ero ee ee 194 establishments where the financial organization has been studied. They can easily be worked out by col- laboration between the management and the account- ing department. This collaboration should always exist and be encouraged, for by no other means can the financial aspect of the work be shown quickly and ac- curately. Without this information it is impossible for the management to judge whether or not the whole organization is in phase, to apply the necessary cor- rections if required; and at the same time to exercise such supervision over the estimate as is preparing tenders. essential in Financial Organization for Foreign Trade* So far only the internal finance of factories has been considered, but a very large and important ques tion is opened when the finance connected with the dis- posal of the product comes under discussion, for it points to the desirability of reconstituting or perhaps creating financial institutions, banks or trading com panies, which shall help to build up trade abroad. In the writer’s view the first great banking company (subsidized by the Government if need be, or relying on its own resources if these are sufficiently strong) which shall finance manufacturers who find it necessary to grant long credit terms to foreign customers. trade is largely due to this, and her example will no doubt be followed by countries who are better equipped with capital than ever before, factures and require markets. of this kind are already in existence, and have no doubt done much to foster trade during the war It should not be impossible to devise means for relieving the ordinary bank depositors of the trade risks by underwriting as is done in Germany, by associations of insurance companies, who guarantee the purchasers’ obligations at a fixed rate of interest. An institution of this kind has been established in England for the furtherance of trade with Italy. This has a capital of £1,000,000, and for the next ten years a subsidy of £50,000, but for the development of trade with, for in- stance, Russia, a bank of this kind would have to be on a much larger scale. The financing of trade would not be the only func tion of such a bank, it would also arrange to collect by means of trade and banking connections, all such information as is essential in building up a trade organization. This would be distributed among the potential purchasers and traders as found desirable, and thus lay the foundations of business relations which only require satisfactory production from the factories to develop them into permanent connections. The organization should probably be a combina- tion of banks, merchants and manufacturers supported by the Government financially if necessary and through international channels. whenever and wherever re- quired, but should not be under Government control. No small private companies should be allowed to enjoy similar facilities, at all events until after the current of trade with this country is firmly established. It is necessary that all our forces of this kind should be concentrated and directed towards the one object in their fullest strength and rapidity, conditions which it is impossible to obtain if competition between small forces is permitted. The details of the work to be carried out by such an institution are numerous and comprise: necessity is a Germany’s success in securing such have developed manu American institutions (a) Translation into the particular language and numeral system of communications between buyers and sellers, in fact, all the literature of the trade. The dissemination in the proper direction of all such information as may spread full knowledge of the products of firms involved. (c) The collection of information regarding the re- quirements and standing of possible purchasers. *It must be borne in mind that what follows was written with especial reference to building up the foreign trade of Great Britain. THE IRON AGE January 18, 191° (d) The training and development of suitable me to act as pioneers of trade, who shall have suf ficient technical knowledge to appreciate possi bilities, understand and overcome difficulties, and sufficient standing to be entrusted with powe to negotiate contracts if necessary. Christmas Funds Added to a Monthly Bonus A Christmas distribution of company earnings t employees was made this year by the Cincinnati Plane Company, the Acme Machine Tool Company and th: Greaves-Klusman Tool Company, Cincinnati. In ad dition to a special bonus of 10 per cent of the tota earnings of employees each month, which bonus is pay able the second Thursday of the month following, the three concerns mentioned decided last February that this method of distribution could still be improved upon by rewarding additionally those employees who aré earnest in the performance of their work and regular in attendance, and who form the nucleus and backbone of the organization. So the idea was conceived to create a Christmas savings fund, consisting of 5 per cent of the total earnings of the employee, which would be paid to the employee with 3 per cent interest on the day before Christmas. The principle upon which the fund was accumu lated was that each employee who was absent not more than one day in the month without excuse, or late not more than one day in the week without excuse, would be entitled to 5 per cent of his earnings for that par- ticular month. Each month constituted a unit by it self. While an employee by too frequent absences or by being late too often might forfeit the benefits for that particular month, the opportunity was given to acquire this 5 per cent Christmas savings fund for any subsequent month; and the right is not forfeited to any previous month where the fund was earned. The plan has worked out satisfactorily, and the companies named distributed specially printed checks on Christmas savings fund aggregating a little over $20,000 for the three concerns. The checks were mailed on the evening of Dec. 20 to the homes of the employees, accompanied by a letter printed in red and green ex- plaining the operation of the fund and emphasizing that the object is “to encourage co-operation; to foster industry and economy, and to strengthen that spirit of good-will -and fellowship between employer and em- ployee which is so essential to the success of both.” Owing to the satisfactory working of the plan over the eleven months of 1916 the three companies have decided to place the same plan in operation this year Some useful metric conversion tables have been pub- lished in handy form by Edward Le Bas & Co., iron, stee] and metal merchants of London, England, with offices at 82 Beaver Street, New York City. Besides affording the opportunity, for example, of determining the equivalent of whole numbers and fractions of inches, feet and yards in metric units, and likewise of weights and liquid measure, the tables include such conversions as the equivalent for any given number of kilograms per square centimeter in terms of the num- ber of pounds per square inch and so on. It is probable that a copy of the table or reckoner, as it is called, may be obtained for a nominal sum. Milwaukee is left with practically no Lake trans portatio