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The Columbia University Libraries reserve the right to refuse to accept a copying order if, in its judgement, fulfillment of the order would involve violation of the copyright law. Author: Babcock, George De Albert Title: The Taylor system in Franklin management Place: New York Date: 1917 COLUMBIA UNIVERSITY LIBRARIES PRESERVATION BIBLIOGRAPHIC MICROFORM TARGET 71/ '&Zl&=f - S MASTER NEGATIVE # ORIGINAL MATERIAL AS FILMED • EXISTING BIBLIOGRAPHIC RECORD •' V m- ■« RESTRICTIONS ON USE: Babcock, George D. ... The Taylor system in Franklin management, appli- cation and results, by Major George D. Babcock ... in collaboration with Reginald Trautschold, m. e., with a foreword by Carl G. Barth ... New York, The JCngineer- ing magazine company, 1917. 2 p. 1., vii-xx, 245 p. illus. (incl. forms) fold, plates, diagrs. (part fold.) 22"". (Industrial management library) 1. Factory management. 2. . Efficiency, Industrial. 3. Franklin, H. H., manufacturing company, Syracuse. i. Trautschold, Reginald. jjuiTitle. 1^4156 Library of Congress >••*«, T58.B2 Copy 2. Copyright A 481267 O M T TECHNICAL MICROFORM DATA / - FILM SIZE: 35wv^ DATE FILMED: REDUCTION RAT10:_J2£ IMAGE PLACEMENT: lA (^ IB MB 1 INITIALS: VVIa/ TRACKING # : m5H 03L7ft i FILMED BY PRESERVATION RESOURCES, BETHLEHEM. PA. '^. v*"^ % :- V CJl 13 3 O > o 55-2 OOM to o 3 3 > o m CD O OQ ^ o o cC/5 < N X M <^1 j^ -v^ •^^ >^: \ > u o 3 3 .^/ > <^ a? S 3 3 O Up I O^ 00 b bo In 1.0 mm 1.5 mm 2.0 mm ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghiiklmnopqrstuvwxyz 1 234567890 ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyzl234567890 ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 1234567890 2.5 mm ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 1234567890 V t.« ^^ ^ ^^J't^ ^o V .^^^ o> ^^ ^o ^^ fp ?^ m O O ■D m "o OL,"0 X TJ ^ "0) 5 m O m O^ '"c^r-^ € '2^ c»^ <-' « fp 3 3 H 1° 8 o 3 3 1^ is 00 1^ s /v ^.l ^^. Columbia (Hnitiem'tp THE LIBRARIES GRADUATE SCHOOL OF BUSINESS LIBRARY I INDUSTRIAL MANAGEMENT LIBRARY THE TAYLOR SYSTEM IN FRANKLIN MANAGEMENT APPLICATION AND RESULTS BY Major GEORGE D. BABCOCK PRODUCTION MANAGER, H. H. FRANKLIN MANUFACTURINQ COMPANY IN COLLABORATION WITH REGINALD TRAUTSCHOLD, M.E. WITH A FOREWORD BY CARL G. BARTH BENIon MEMBER, CABL G. BARTH AND SON NEW YORK THE ENGINEERING MAGAZINE COMPANY 1917 .^ Copyright, 1917, By THE ENGINEERING MAGAZINE COMPANY New York .1 n I > Q 18 S TO THE ME]^mRY OF FEEDERICK WIN5L0W TAYLOR ■«! /tMAA«JKPO 3\H Scientific Managemenf fundamenUd- ly carmsts of certain broad general principles, a certain phihsophy, which can be applied in many ways, . . . Frederick Winslow Taylor. f % f -> 1 h { CONTENTS PAoa Foreword xi Preface xv Chapter I. Factory Conditions in Nineteen Hun- dred AND Eight 1 Business Conditions. System of Management at Plant. Results Attained. Problem of Automobile Manufacture. Carl G. Barth's Report and Recom- mendations. Chapter II. Investigation op the Taylor System 9 Doctor Taylor's Writings. Plants Operating Under Scientific Management. Inter-departmental Memo- randa and Correspondence. Visit to the Tabor Manufacturing Company. The ''Questionnaire/' Extract from Doctor Taylor's Teachings. Chapter III. Classification and Standardization 31 Taylor System of Scientific Management Defined. First Standards. Classification of Product. Clas- sification of Methods. Classification of Materials. Classification of Machines. Standardization of Me- chanical Methods. Standardization of Tools. Clas- sification of Accounts. Chapter IV. Establishing Control 47 Segregation of Activities into Departments. Clas- sification of the Engine. Arrangement of Work and Analytical Investigations. Symbols, Their Applica- tion and Derivation. Classification of Purchased Parts. Stores Ledgers. Storerooms. Standardiza- tion of Factory Machinery and Fixtures. Routing of Work and Materials. Machine Burden Books. Centralization of Control. The Despatch Room. ^4 \ I ^ f'L vm CONTENTS rAos Chapter V. The Schedule, Control Boards and Pneu- matic Despatch Tubes 63 Plan of Manufacture. Specification of Schedule. Accelerating Production Schedule. Control Boards — Mechanical Construction — Equipment — Example of Application — Set-ups — Movable Feature. Central Despatch Room. Pneumatic Despatch Tubes. Chapter VI. Employment and Rate Fixing 79 Selection of Workmen. Employment Manager's Au- thority. Discharges and Disciplinary Measures. Court of Appeal. Individualism and Group Action. Full Profit for Managerial Effort. Retainer for Task Worker when on Straight Time Work. Deductions for Lates, Absences and Spoiled Work. Responsibili- ties of the Management and of Workers. Rate For- mula. Fundamental Base Rate. Recompense for Skill in More than One Mechanical Operation. Re- ward for Years of Continuous Service. Fixed Charges Rate. Premiums Earned. Standard Pre- mium Task Time. Absences and Tardiness. Penal- ties for Spoiled Work. Recompense for Task and Straight Time Work. Recognition for Co-operation and Conduct. Chapter VII. Organization Classification 109 Producing Division — Planning (Routing and Equip- ment, Schedules, Building and Equipment and Em- ployment) — Executive (Despatch, Produce, Inspec- tion, Stores and Transportation). Engineering Di- vision (Research, Design and Inspection). Purchas- ing Division. Chapter VIII. Changes in Product and Method 115 Reduced Manufacturing Costs. Simplification of Product. Time Requirements Established. Deliver- ies Determined. Elimination of Poor Work. Im- proved Inspection. Uniformity in Quality of Prod- uct. Old Method of Supervising Manufacture. Ma- chine-hour Burdens. Seven Classes of Manufacture. Establishment of a High Class of Manufacturing Ef- fort. I IX PAGE 130 147 r> CONTENTS Chapter IX. Changes which have Affected the Men Reduced Turn-over of Labor. Increase in Perma- nently Employed. Increased Wages. Contentment and Interest in Work. Increased Knowledge of Shop Practices and Office Methods. Shorter Working Hours. Co-operation and Loyalty. Old Methods Re- viewed. Changes in the Purchasing Department. Chapter X. The Results Graphically Depicted Growth and Activities of the Industry. Production and Employment. Average Wages from 1908 to 1917. Decreased Producing Hours. Reduction in Production Cost. Object of Manufacturing. Di- vision of *' Benefits.'* Economic Considerations. '* Equity Ratios.*' Expansion in 1916. Co-operation of the Organization. Appendix I. Wage Rates in the Franklin Shops 167 Fundamental Base Rate. Relative Cost of Living. Comparative Statement of Cost. Recalculation of Workers' Rating. Statements by Employees. Appendix II. Examples in Application of Scientific Management 183 The Repair Shop. The Small Parts Factory. Plant with Uniform Manufacture — Control Board Opera- tion. Index 239 4: ^ ) 1 ^ i c > r.. I ^^ FOREWORD To those whose good fortune it will be to read Mr. Babeock's exposition of the introduction and development of, and the results obtained by, the Taylor System of Scientific Management in the Franklin plant, it will be evident that the same is no small gratification to the man whose privilege and pleasure it was to start the ball rolling there, and to give Mr. Babeock his first practical lessons in Scientific Management. The Franklin plant is, to my knowledge, the best example of what experience has taught me to look upon as the only sure result-producing method of going about the development of a system of Scien- tific Management in a plant. As such it lies be- tween the two extreme courses that are usually re- sorted to by plant managers; namely, the one in which some real or pretending expert is hired to spend all his time at a plant to **put the system in"; the other, in which a local man of unusual ability is appointed to do the same thing, after fit- I A Xll FOREWORD FOREWORD xiu \ ting himself by the study of the literature of Sci- entific Management and by visits to other plants which are supposed already to be operating in part ^ or fully mider Scientific Management. V At the Franklin plant my function was thus practically only that of an instructor and trainer of a few of their own employees, with Mr. Babcock as their leader, in the principles and details of the Taylor System. Hence, after Mr. Babcock had caught the spirit, grasped the fundamental princi- ples, and been initiated into the general ways of applying these through a set of physical mechan- isms that were the best devised up to that time, my main usefulness to him and his company were at an end. Since the discontinuation of my regular visits to the plant, Mr. Babcock, possessed of imusual in- genuity and unbounded enthusiasm and capacity for work, coupled with the opportunity afforded for undivided attention to the particular problems of the one plant, has therefore been able to make improvements and developments in some of the mechanisms of the system that mark a distinct ad- vance, not only over an\i;hing Doctor Taylor orig- inally had to hand over to his direct disciples and co-workers, but also over anything that these have been able to do along similar lines, compelled as they have been to divide their attention, at the same ^ ^ ) time, between several plants representing a di- versity of products and problems. It may be well to mention here that Doctor Tay- lor himself, some fifteen years ago, in warning a group of men against mistaking his details and mechanisms for essentials as against the principles of which they were merely an expression, made the prediction that, ten years from then, not a single one of those details was likely to be in existence ; and while this has not fully come to pass, it is true that, for instance, I myself have hardly left any of them untouched, without, however, having made a single such decided departure as Mr. Babcock has made in the construction of his unique and truly wonderful control boards. In connection with this, I warn the reader, however, that the same are not suitable to a diversified product, though eminently superior to anything previously devised for the same purpose and particularly so in connection with a one-sided product such as the Franklin car, which, except for its two or three different styles of body, is now absolutely a single standard for one or more seasons at a time. The failure to realize and grasp the principles be- hind the details and mechanism of the Taylor sys- tem on the part of a number of its students who have attempted to practise as experts, has inevi- tably resulted in undeservedly discrediting the sys- « m 1'' XIV FOREWORD teni ; but I also take this opportunity to warn the reader, rather to leave it entirely alone than to at- tempt its introduction without the proper kind of expert instruction and guidance, and unless he can turn over to that expert a man who has at least some of Mr. Babcock's qualifications, the most es- sential of which is the ability to grasp and steadily keep in mind fundamental principles, coupled with great capacity for work and details. In Mr. Babcock's formula for the determination of a man's base rate, we also have the first attempt to consider this matter from all possible angles, with a view to absolute justice. While Mr. Babcock has fittingly dedicated his book to Doctor Taylor, it is to be deplored that Dr. Taylor did not live to learn all about what Mr. Babcock has done for the furtherance of his life work, though he did live long enough to learn that the work at the Franklin plant was proceeding sat- isfactorily under Mr. Babcock 's leadership. Carl G. Barth. November, 1917, ^T^ PREFACE Dr. Frederick W. Taylor thus established a criterion by which to judge and value management. "The prin- cipal object of management should be to secure the maximum prosperity for the employer, coupled with the maximum prosperity for each employee." Major George D. Babcock, in "Taylor System in Franklin Management," describes step by step the conversion of an already successful and well-managed business into one of greatly increased activity under five years' application of the Taylor principles of management. During this period, the output of the plant has in- creased several fold, production costs have very ma- terially decreased and the workers have prospered to the extent of an average increase in wages of some sixty per cent. The conditions existing in the Franklin plant in 1908, the year in which the introduction of Scientific Management was first taken under advisement, are ruthlessly criticised by Major Babcock, though they were very similar to those existing today in many so- called successful and ably managed factories and far more satisfactory than the conditions to be found now in the great majority of our industries. In fact, so un- essential was considered any change in the methods of Franklin management that over four years were de- voted to investigations of results secured in other XV i « .■5 k yf XVI PREFACE plants operating under Taylor Systems before the de- cision was finally arrived at to incorporate them into the Franklin management. A comprehensive sum- mary of the inquiries made during these four years of search for irrefutable evidence of the merits of the Taylor System forms an illuminating introduction to Major Babcock's description of the assimilation by the Franklin management of Doctor Taylor's princi- ples. Doctor Taylor's four great underlying principles of management — first, development of a true science of management; second, scientific selection of workmen; third, scientific education and development of work- men; and, fourth, intimate friendly co-operation be- tween the management and the men — are then taken up individually and collectively and their practical ap- plication to the activities of the Franklin Company described. The development of the science is traced from the classification and standardization of prod- uct, methods, materials, tools and even of accounts through the establishment of control, with its divisions of responsibility and authority, the establishment of the manufacturing schedule, the centralization of the various individual despatch rooms into one main clear- ing department, connected to all parts of the shops through a system of pneumatic tubes for the convey- ance of all shop communications, etc., and the intro- ( duction of the Control Boards to act as guides for the ^ carrying on of all necessary acts in the conduct of the business. The selection of the workmen and their training are taken up in the chapter devoted to employment and rate fixing, and the co-operative features of the man- agement, while traceable throughout the development 4 PREFACE xvii of the science and selection and training of the work- ers, are explained in greater detail in the discussion of the organization, which also deals quite extensively with the specific duties and responsibilities of the va- rious individuals — in the shops as well as in the more executive and technical departments. Thus disposing of the more important managerial considerations through the practical application of Doctor Taylor's four fundamental principles,* Major Babcock then devotes two chapters to the changes which have been brought about from a true apprecia- tion of the great truths of efficient, economic and equitable management. First, he dwells on the changes in product and methods, the improvements in which are indicative of the increased prosperity of the em- ployer and measure, therefore, the benefit accruing to the organization from the new form of management; and second, he takes up the changes which have af- fected the men, the permanency in employment, in- creased wages, shorter working hours, increased knowledge of shop practices and office methods, and the spirit of friendly co-operation and loyalty which has grown up in the attitude of the workers toward the management, all indicative of increased prosperity to the employee. * First The development of a science for each element of a man's work, thereby replacing the old rule-of-thumb methods. Second. The aelection of the best worker for each particular task and then training, teaching and developing the workman; in place of the former practice of allowing the worker to select his own task and train himself as best he could. Third. The development of a spirit of hearty co-operation between the management and the men in the carrying on of the activities in accordance with the principles of the developed science. Fourth. The division of the work in almost equal shares between the management and the workers, each department taking over the work for which it is the better fitted; instead of the former condition, in Which almost all of the worW and the greater part of the responsibil- ity were thrown on the men. .1 i V I 'it 1 in xvm PREFACE A final chapter presents in graphic form the growth and activity of the plant under the new management, the improvements which have resulted and the bene- fits realized by the organization, from the viewpoint of both employer and employee. The remarkable con- stancy in management is strikingly brought out in the equity with which the benefits resulting from the de- velopment of the business have been apportioned so as to represent increased prosperity for each employee, as well as for the employer. This last chapter also further brings out the sound- ness of the principles underlying Scientific Manage- ment by showing how it has been possible completely to wind up a successful business devoted to the manu- facture of one kind of product and successfully to start a very much larger business devoted to the manufac- ture of another product which required new designs, new tools, new equipment, new methods, a very large increase in the number of workers with workmen who manifestly could not be familiar with the new work nor possessed of that skill acquired by the men trained in the economical manufacture of the older product, and with an ever increasing volume of output. And this all within a period of a few months and without interruption to the steadily growing prosperity of the workers or to the expectancy of greatly increased pros- perity on the part of the organization through the ma- terial expansion. The appendixes, which are of quite as great inter- est as the book proper, Major Babcock employs for the consideration of certain details, the working out of which has been in large measure instrumental in the attainment of the very gratifying results at the Franklin plant. In the first appendix, the determina- nt PREFACE XIX tion of the wage rates in the Franklin shops are dis- cussed — the fundamental base rate, the allowances made for increased cost of living, the rewards for ac- quired skill, the loyalty developed through years of continuous employment, the valuable knowledge gained in methods of manufacture and the penalties which are imposed for tardiness in reporting for work, ab- sences, spoiled work and acts detrimental to the inter- ests of the organization are all taken into consideration in determining the wage rate of the worker. Each one of the affecting factors is valued and equated in a comprehensive formula by which the wage rate for each workman is ascertained each three months. The justice of this scientific determination of a man's wage rate has been established beyond question of reason- able doubt by the whole-hearted co-operation, content- ment and satisfaction on the part of the men during a period in which the cost of production has decreased as steadily as the wages of the workers have increased. In the second appendix, managerial schemes for the application of Scientific Management to a repair shop, a small parts factory and to a plant with uniform manufacture under Control Board operation are dis- cussed in detail. All necessary acts for carrying on in an economical manner the conduct of each class of industry are described, with an explanation of the forms, order blanks, etc., which simplify and control the managerial acts, the authority and proper respon- sibilities of each department are briefly outlined and also, as far as possible, the particular duties of each individual, managerial or clerical. Thus the experi- ence gained by Major Babcock is made available for a very large variety of manufacturing enterprises for which the managerial control as developed for an in- 2 ■ 'i I 11 m XX PREFACE tricate product such as that built by the H. H. Frank- lin Manufacturing Company might be too complex. Doctor Taylor's eminent co-worker, Henry L. Gantt, has prophesied the failure of anyone attempting to introduce Scientific Management according to any set rules and by the use of established forms and blanks, without a thorough comprehension of the principles upon which it is based, and Doctor Taylor himself stated that Scientific Management consisted fundamen- tally of certain broad general principles which could be applied in many ways. Excellent and deserving of attention are these warnings, but the careful reader of "Taylor System in Franklin Management" should be able to approach the introduction of Scientific Man- agement into almost any plant, not only with a thor- ough appreciation of the principles upon which it is based, but — aided by Major Babcock's comprehensive description of applications of tliese principles to fac- tory management— with a very clear idea of how the broad general principles should be applied. Major Babcock's very marked success in the mana- gerial line has won for him signal recognition, for, be- fore the appearance of this volume, he was called to the colors in France to introduce his principles in the Ordnance Department of the United States Army. Eeginald Trautschold. November, 1917. k THE TAYLOR SYSTEM IN FRANKLIN MANAGEMENT Chapter I factoey conditions in nineteen hundred and eight ^T^HE year 1908 marked a critical period in the -*• H. H. Franklin Manufacturing Company's de- velopment, for it was in that year we commenced the investigations which have culminated in our present system of shop management. The business slump of 1907, which had been acutely felt by the whole automobile industry, had been successfully weathered by us, and a decided reaction had commenced with the spring of 1908. There was a steady increase in business, but accompanied by a trying period of read- justment. Orders and cancellations followed each other with startling rapidity, though the net result in- variably proved to be a gain. A similar experience was quite probably common to many, if not most, suc- cessful automobile manufacturers, and the vital prob- lem confronting us became one of production, rather than one of marketing our product. At that time our factories contained some two hun- dred thousand square feet of floor area, the result of a steady and healthy business growth of six years. ■ t ■4ii U\ ( I A THE TAYLOR SYSTEM Production rarely exceeded one hundred cars i)er month, and averaged somewhat less. The factories and equipment were modern in every respect, and we were not burdened with obsolete methods. Briefly, we were what was considered then, and would be so considered today,, an example of a thriving business in a growing and important industry. The factory management, which was generally ac- cepted as up to date and well developed, was about as follows: The management ordered the quantity, the form, and the date the product was to be finished. Through the engineering department the detailed part forms, the kind of material, and the combination of assemblies were specified. The foreman and superin- tendent planned for the time and duration of opera- tions, the kind of machinery and tools, and the general operating method. They also selected and rated the workmen, and supervised their attendance. From the general car schedules, detailed schedules were made and delivered to the foreman. These were merely copies of the original schedule of finished prod- uct, but were dated earlier by one, two, three, or four months. From this dated schedule, any foreman was obliged to plan the procedure for each mechanical operation. With these conditions, it is evident that the scheduling eventually rested in the hands of the stock chasers who represented the assembly floors. Foremen assigned individual jobs to the workmen, supervised them at their work, and discharged them without appeal on any pretext. They further ordered repairs for machines and equipment, and selected and maintained tools and supplies. The foremen and workmen decided mechanical methods to pursue at the work, the number of pieces FACTORY CONDITIONS IN 1908 3 to start on each operation, and the time in which the work could be applied. The 'grime resyonsihility rested on the workman, with the foreman as a close second. This is evidenced by the considerable work- man labor turnover on the charge of "unsatisfactory work," while there was very little change in foremen. The result of this, as we now see, could hardly be unexpected. The plan of dual responsibility showed the usual weakness of indecision in emergency, lack of correction for faults due to uncertain responsibility, and doubt and distrust due to lack of knowledge. Opinion was pitted against opinion, and a general feel- ing of indefiniteness permeated the factory. Dates called for by the management were not kept by the foremen, primarily because of the uncertainty and irregularity in the scheduling of operations. Ma- terial shortages were frequent. Tools were unsuitable and lacking. Machines were not best suited to the purpose and were often in poor repair. Neither tools nor machines were standardized, and work could not c be exchanged rapidly from one to another. Shortages of parts were constant and serious, and caused a very high ratio of preparation to operating time; through this inefficiency a resultant high peak of workman effort was caused. The change in the number of employees was fre- quent. A large percentage of employees were poorly trained and irregular in attendance. The manage- ment, the foremen, and the workmen were contin- uously at odds over results. The purchasing depart- ment was forever rushing or holding up orders, and, of course, the people from whom we purchased suf- fered the same experience. Fluctuations in labor employment varied from 110 4 ij I I < ;4 fi 4 THE TAYLOR SYSTEM to 200 per cent through the working year. Labor turn- over, measured by the number of new men employed to maintain the force, was about four and one-quarter times, that is, approximately four and a quarter men were employed to maintain a stationary payroll. The problem of automobile manufacture was then, and is now, quite different from that of miscellaneous manufacture. No effort leading up to the product can be credited to the company finance by sale if any one element is lacking. It is a big problem of coordina- tion of industrial activity. The finished units are relatively limited in quan- tity. The demand is seasonable, and the characteris- tic designs from the purchaser standpoint vary in accordance with his opinions. That is, the design of a motor car is more or less dependent upon "style." The completed unit is a large assembly which is com- posed of sub-assemblies of unit parts, most of which must be tested for strength, noise, and perfection of operation. The parts differ radically in material form and requirement of manufacturing method. The pe- riod of planning and work for the output on account of this will range from 300 to 150 working days. The product in service is subjected to extraordinary ex- posure, not only to the elements, but also to strains arising from operation. Schedules of finished output were set for a long time in advance, and were reasonably adhered to. Changes in design were frequent, as could be expected for a new and developing product. But with sched- ules and designs at hand, the output had a most ex- asperating way of going up and down. Cars could not be obtained when they were wanted, but were plentiful when not wanted. Of course, sales were lost. FACTORY CONDITIONS IN 1908 'W^ and partly finished product was cancelled and scrapped. The employment of labor followed the rise and fall of the output curve. Wage increases were sometimes granted on request. Costs were high, and consequently the sale prices were higher. The conditions imposed upon the shops at that time were no different than now. Schedules were as sure, and for as long a time, and designs were prepared in time then as now. Our industry was, compared with the progress made at that time in shop management, highly efiicient. Beyond all else, we were progressive. Our problem was then, as it is of many manufactur- ers today, the proper consideration of rapid produc- tion from first part to finished product; handling of sales on a varied schedule, but as uniform as con- sistent with economy; conservation of the capital in- vestment and the maintenance of a low stock of purchased material because of the variety, value and probable changes caused by public opinion and de- mand. Prompted more by interest and desire than for any real need, the Franklin management decided to in- vestigate the Taylor system of scientific shop man- agement, which at that time was practically untried except by Dr. F. W. Taylor and a few close friends in sympathy with him. Doctor Taylor was consulted as to the probability of success in applying scientific management to automobile factory control. His an- swer was forceful and direct — that it could not fail if (and this is fundamental) the management assumed its responsibilities. Now this was a poser. Like all other managers, we thought we did assume our re- sponsibilities. It required five years for us to learn what he meant. •# O THE TAYLOR SYSTEM Carl G. Barth, one of Doctor Taylor's closest asso- ciates, made a careful study of our factory, and in his report advised that we had the possibility of getting the Taylor System installed for less money and in a shorter time than any concern he had previously dealt with. His reasons for this belief he enumerated as follows: "1. Because of the fact that the suggestion to in- stall the system comes from those actively engaged in running the works and not primarily from the Board of Directors. This is a guarantee that you will do all you can to help get it in in the shortest possible time and as economically as possible ; not only for its own sake, but also because you would be blamed for having recommended going into the matter if we fail either temporarily or permanently. "2. Because your shop is a modern one in every re- spect, and will require a minimum of expense for adapting its machinery to the work. "3. Because you have most excellent drawings of your product ; few changes, if any, will be required to make them in every respect as good as the best I have ever met with. "4. Because your product is of a more limited va- riety than any manufacture I have met, and will cost but little to symbolize in accordance with our system and at a minimum for time study and rate setting. "5. Because you have already collected the greater part of the information needed for the routing of this product through your works in accordance with our methods. "6. Because you have already a system of inspec- tion of this product and, best of all, a special inspec- tion room to which part, at least, of the product is 1^ FACTORY CONDITIONS IN 1908 7 actually sent. This can readily be lined up with our way of handling the inspection. "7. Because you have a good storeroom for gen- eral supplies and good methods for keeping track of them which can easily be switched over to our wav of handling. However, I anticipate considerable diffi- culties with all the finished parts and supplies you have scattered about the factory in various ways, for all such stuff must be absolutely inaccessible to workman until finally delivered by the storekeeper for use on definite manufacturing orders, or directly for ship- ment. "8. Because you will not have to build a planning room, as your present shop office is large enough to be used for this purpose. **9. Because you have in Mr. a man who can readily be released from all other work and can give his whole attention to learning the work for the system, and be its guardian and exponent when fully installed. "In view of the foregoing, I fully believe that the system can be installed in your works in much less time than I suggested in my first letter to you before I visited your plant — say anywhere from twenty-one months to two and one-half years — with less of my time than ten days a month during the latter part of the time. "Therefore, I estimate, the entire cost to you for installing the Taylor system of management would be composed of the following items: My personal services. Other specially hired men to assist in the instal- lation of the system — a few of them only to re- main permanently and, therefore, chargeable to I I 8 THE TAYLOR SYSTEM the installation of the system for, say, another nine months or a year. New printed forms. Special fixtures and apparatus for the planning room. Eearrangement and reorganization of the tool room — including stamping of symbols on all tools, etc. Alterations to the general supply room — prop- erly including the accounting and tagging, etc., of materials now scattered throughout the shop. Additional foremen for, say, four to eight months. A special machine for grinding lathe and planer tools and, perhaps, for boring cutters. Additional small tools of all kinds for emer- gency purposes. Ee-speeding and other alterations to machines. "The last three items above are good investments under all conditions and are hardly chargeable to the installation: of the system, but by it they are definitely shown to be highly desirable. "These investments would, of course, begin to affect the cost reductions and other substantial savings long before the work is actually completed." It requires an acquaintance with Mr. Barth to ap- preciate fully the value of his report. I have seen men who talked little and said much, but never a man who talked so much and never wasted a word. His life is full of facts, and his words are freed from husks. Some years later Mr. Barth became our guide and we never went astray. I -3 Chapter II INVESTIGATION OF THE TAYLOR SYSTEM MpHERE are many modern plans of industrial man- -■• agement which would be successful if introduced at the beginning of an industry. To brace up old methods, long in practice, for new ones to be intro- duced, requires a knowledge of business affairs quite beyond the capacity of many of the much-heralded "Efficiency Engineers." Happily, however, many rep- resentatives of modern methods are exceptionally broad and well trained. The problem which con- fronted the Franklin management was to pick out from those available a representative of satisfying personality and one whose methods could command confidence. The direction of our investigation was in two fields — the writings of Doctor Taylor and his associates, and the industries in which particular application of these investigations had been made. The literature on this subject seemed at that time to be limited to two papers presented before the American Society of Mechanical Engineers by Doctor Taylor; the one, "The Art of Cutting Metals," the other, "Shop Man- agement"— "The Art of Cutting Metals" being his presidential address. Through correspondence with Doctor Taylor we learned that his principles of Scientific Management could be found in operation at the Link-Belt Engineer- 9 1 1 10 THE TAYLOR SYSTEM ing Company of Philadelphia and Chicago; at the Tabor Manufacturing Company of Philadelphia; and at the Yale & Towne Manufacturing Company at Stamford, Conn. In the Link-Belt Engineering and in the Yale & Towne plants modifications of Doctor Taylor's exact mechanical process had been introduced by the respective managements. At the Tabor Manu- facturing Company, not only the principles, but the exact procedure were as established under Doctor Taylor's personal directions. Representatives of our organization were most courteously entertained at each of the above places, but at the Tabor Manufacturing Company only was an exhaustive study made. During the time between our visits of inspection a considerable amount of cor- respondence was carried on between ourselves and Doctor Taylor and Mr. Barth. Our impressions gleaned in this way are shown by the following com- ments and extracts from the original inter-departmen- tal memoranda and correspondence: We found that Doctor Taylor's investigations had definitely established the fact that a time limit could be accurately set on a piece of work before it was given to the shop ; the idea being that if such a rela- tion could, beyond any question of a doubt, be ac- curately and scientifically established, the control of the shop could be taken from the somewhat uncertain hands of various foremen and concentrated in one highly efficient center, which would do all the planning and directing. This would leave to the foreman only the work of (a) Carrying out the orders given, (b) Maintaining discipline, (c) Setting up complicated or particular jobs, INVESTIGATION OF THE TAYLOR SYSTEM 11 (d) Giving any legitimate aid to workmen, and (e) Providing that all stock and tools for the next job to be undertaken by the workman were readv be- fore the completion of the job on which the workman was engaged. "If this control of the planning can be removed, as it now seems possible, from the foremen, one imme- diate advantage is gained. We are enabled to dis- pense with the need of thoroughly efficient foremen, at each point, who are hard to get at reasonable sal- aries, and are thereby enabled to pay one thoroughly efficient man a salary commensurate with his ability and sufficient to retain him. "At this time it might seem that with a few fore- men only the advantage named is not apparent, but it does seem that where a considerable number of fore- men are needed the saving made will undoubtedly more than equal the salary of the one thoroughly efficient man. In other words, a sufficient salary can be paid for the one man to interest a trained engineer, whereas it would not be possible to interest trained engineers for each foreman's position, as the position would not be agreeable even if the salary was. "Under this system a workman is given a definite task to be accomplished in a definite time in a definite manner, and for which he will receive a definite amount known by him before starting the job. If, however, he does not completely fulfill all of the above conditions, he is penalized by receiving an amount less than that which he would have received had he accom- plished what was laid out. Since the rate of pay, if the above task is accomplished, is considerably above the average rate for similar work, any penalty for 'i! 12 THE TAYLOR SYSTEM III m k I non-accomplishment will not reduce the average earn.'' ing below that prevailing in the class. "To secure all the advantages possible adverse shop conditions cannot be allowed and must be eliminated. This of itself establishes a certain economy. "Under this system a workman is not only told in detail how to do a job, but he is also furnished with everything necessary to accomplish it. This means that he must be furnished with stock, sharpened tools, and proper jigs, and he must lose no time because of improper appliances. In other words, all things must be in the best possible condition. "This is, in a way, the premium system, inasmuch as a definite time is established; but it differs from the premium system in that an exact way is laid out, and also in that a penalty is provided in case the in- structions given are not fully followed. "We are informed that in the few shops that are at present using this system the men are not antagonis- tic to the system, because by it their wages increase under clearly defined responsibilities. "To establish this system, the principal things to be done are: / 1. The preparation and maintenance of each tool in the best possible condition ; 2. The standardization of feeds and speeds on all similar machines; 3. The providing of tool rooms with equipment / of tools and jigs; 4. The mechanical operation of all jobs; 5. The establishment of standards, as for stock; 6. The settling of a definite operating time for each part made. "Once a rate of time and pay has been definitely es- II INVESTIGATION OF THE TAYLOE SYSTEM 13 tablished under this system it is never changed, un- less the method of doing work is changed by the man- agement. The rate of time is set so as to allow for reasonable variation by the workman ; that is, it does not set an ideal rate, but rather sets a practical rate which can be attained by careful and industrious work. The methods can be established as slowly as desired. "The seeming advantages of this system are: ^ A. The complete control of the shop is removed from the foreman, ^ B. The need of prodding workmen is removed, C. Labor results alone are paid for, D. Cost is decreased, E. Output is increased, ^ F. Quality is increased, G. Each piece costs a definite amount, H. The rate of pay is definitely and scientific- ally fixed, N I. The amount paid for spoiled work is de- creased, J. Cost keeping is simplified, K. Definite and detail plans are given each foreman, L. The Production Department is given a chance to produce— something that heretofore has not existed, - M. More accurate keeping of promises is made possible, hence, the getting out of work on time." As typical of our difficulty in coming to a final de- cision, our memorandum shortly preceding our visit to the Tabor Manufacturing Companj^ can well be presented : 14 THE TAYLOR SYSTEM m t "In general, we believe that we are ready to rec- ommend the adoption of the system, for in a great many points it is our opinion that the Taylor System only requires what undoubtedly should be done in every well-regulated shop. This refers principally to having all machines and tools in the best possible con- dition; the running of all machine tools at the most economical speeds; the provision of stock and tools ready and on the floor ahead of the workman; the supplying of workman with all that he can possibly need, either as regards instructions or tools; the tak- ing away of the planning from a number of foremen and concentrating it in one place. On the other hand, the installation of this system would mean that all concerned with a manufacturing end would have a heavy burden to carry for probably two or three years. There would be many vexatious problems to solve, and the putting of this system in the factory would un- doubtedly have its effect on the Accounting, Engineer- ing, and Sundry Departments, in that the systems of numbering and recording drawings would undoubtedly have to be changed. "Were we to start a new business, we would adopt the Taylor System. However, in changing a plant over, which is already running with more or less sys- tem and more or less satisfactorily, there are many questions which must be considered. There is prob- ably no doubt but that for a time production might be somewhat hindered, although the aim would be not to have this happen, inasmuch as the system would nec- essarily have to be installed with the idea of prevent- ing this. Then, too, there is a considerable expendi- ture to be made which must be fully considered and realized. INVESTIGATION OF THE TAYLOR SYSTEM 15 • "If it should be decided to adopt this system, our minds must be made up to carry it through, else the major part of the money expended will, in all prob- ability, be thrown away. There is probably no doubt that the Taylor System is scientific. We understand that the privilege of going over their plant would be extended to us by the Tabor Manufacturing Company of Philadelphia, and we believe that they would also give us some actual figures taken from their books which would tend to show whether or not the system was a success. This information would be of ines- timable value in deciding whether or not the system would be installed. If the Tabor Company can show an additional profit in their business which can be traced entirely to the Taylor System, and more than balances the money expended; can show a reduction in the labor cost of manufacturing the same articles ; can show a decrease in the time required to produce that article, or, in other words, increased capacity due to increased efficiency ; and can also show that their non- productive labor has decreased in relation to their out- put, we should not hesitate to adopt it. "This plan should not be started hurriedly, and cer- tainly not until we have full opportunity to investi- gate or ask for such information as may be desired, thus reaching a conclusion entirely satisfactory to our- selves. In any event, as before mentioned, we realize that while this system would necessarily have to be installed by an outside individual, and while a large amount of hard work would fall upon that one, still not all the hard work, by any means, would come on the person installing the system; for it would also mean a tremendous amount of hard work for those con- nected with the manufacturing end to enforce and carry ■ - * '. iff IBP f 16 THE TAYLOR SYSTEM out this system, because any new thing, no matter what it is, which tends to give the company better control is beset with more or less obstacles. These would, of course, have to be beaten down and surmounted. "As before stated, we do not hesitate on account of the work. In fact, our hesitation, if so it might be called, is caused by our desire to render a perfectly true and unbiased statement, not the least bit colored for or against. We have written to Mr. Barth. Our letter and his answer follow : " Tour report of the estimate of cost of installation of the Taylor System in our shop was received and con- sidered. A little further information relative to the subject is desired. " ^Would it be feasible to install the Taylor System in the following manner; our idea being that, should we decide to install the Taylor System, we, of course, wish to make it a success. We also wish to do it as easily as possible. Not that we have in mind the shirk- ing of any hard work, but, when we say making the installation easy, perhaps we mean making it smooth. For that reason, we had thought it might be well to start certain standard pieces which represent a consid- erable value as regards labor. " *It so happens that the pieces for which we have the most complete detail of tools are the pieces which cost the most money to produce, or, in other words, are the most expensive pieces we machine. Would it be feasible to install the Taylor System, as you might say, somewhat piecemeal — ^lay the plans, and put some few certain jobs to working, and, in the meantime, se- cure information relative to additional jobs, all the time making the list of pieces under the Taylor Sys- tem grow. That would mean that, for a considerable INVESTIGATION OF THE TAYLOR SYSTEM 17 length of time, we would have two systems in opera- tion, namely, the day work system and the Taylor Sys- tem; our idea being that we would like to make the installation in such a manner that it would hardly be noticed. That is, we would not at once go and build additional tool rooms, planning boards, and such articles all over the plant, but we would put them in wherever it was necessary, small at first, but in such a manner that they could be readily extended to what you consider the proper sizes should be in the end. "*This would mean that, in all probability, you would place some assistant here to guide the work, who would gather data, issue instructions, and watch the work of installation and, when certain machines were equipped and certain jobs were ready to be put on the Taylor System, they would be put on.' "Following is Mr. Earth's answer : " 'Answering your letter of the 15th, I will say that it is perfectly feasible to introduce task work in connec- tion with a small group of machines only, this being, in fact, the way we always begin. " We must, however, provide all the tools for jobs going to these machines in entire accord with the sys- tem, which means that a section of the tool room must be fully organized on the system to serve these ma- chines. " 'However, until the men fullv realize what we are after, there is usually little opposition on their part, and this is always reduced to a minimum when such features of the system are first gotten well under way as do not directly affect them. Our plan is, therefore, to get the air the men breathe full of the spirit of changes and improvements, so to say, so that by the time we tackle them and their work, they have become vi *' 18 THE TAYLOK SYSTEM m so used to changes that they do not resent them, but take them as a matter of necessary development. " ^If you are satisfied, temporarily or permanently, with your present office methods, they may be retained undisturbed to the extent to which they have no direct bearing on the running of the shop. I shall have to insist only that you adopt our style of time card, from which the payroll and the progress of the work may all bo made up, in any manner that will most readily dove- tail into your present methods; and also our forms for requisitioning, purchasing, and reporting on purchased materials. " 'I am unable to give you a detailed statement of what I propose to do for you, and send you copies of the various forms I should want you to adopt in con- nection therewith, for it would amount to a regular treatise on the subject, and would take months to pre- pare in a manner that would serve its intended pur- pose and not be likely to lead to misunderstandings. Besides, I propose to do nothing for you except what you may wish me to do, plus such things as might be necessary in order to accomplish it, and which we might temporarily and jointly overlook in discussing the matter. " *The main features of our system are : " *1. Our way of planning and routing the work through the shop, which presupposes our storeroom methods and methods of handling purchases ; " *2. Our way of rate-setting by means of slide-rules and time-study, which presupposes our tool-room meth- ods and our methods of improving defectively designed machinery ; " *3. Our cost system, which lends itself to any de- gree of refinement deemed desirable, both in regards nv INVESTIfiATION OF THE TAYLOR SYSTEM 19 to the details of the product and the analysis and dis- tribution of overhead expenses ; " *4. Our general accounting methods, with monthly closing of the books. " *Any one of these may be introduced without touch- ing upon others now practiced by you, except to such an extent necessary to bring the old and the new into harmonious relations. However, the chances are that you could profitably reorganize everything you do, in course of time, one step at a time.' "The Tabor Manufacturing Company was chosen as the first to be visited, because we were informed that there, through a thorough understanding and appre- ciation of the Taylor System, it had been put in most thorough operation. The accuracy of our information on this point was confirmed by conversing with Mr. H. K. Hathaway, Vice-president of the Tabor Com- pany, by whose courtesy we were able to get the great- est amount of desirable information in the shortest possible time. In fact, Mr. Hathaway withstood three hours of rapid cross-examination by the three mem- bers of our party, and in every case answered every question fully and frankly. "In order to make our visit most effectual, a ques- tionnaire was given each member of our party several days before the trip was taken, in order to have each prepared to get definite information for our subse- quent use. These questions and our answers to them are presented below. "This Company (Tabor Manufacturing Company) makes molding machines and accessory foundry sup- plies — tool grinders^ belt benches, etc. Certain ma- chines are made only on order, while others are stand- ard in design and parts. For the manufacture of the I ^1 i] I m 20 THE TAYLOR SYSTEM latter, raw stock, finished parts for assemblies, and completed machines are handled on a maximum and minimum basis. In reply to a question relative to changes in specification or design, Mr. Hathaway stated that the Taylor System was essentially a sys- tem of standards, as to designs, manufacturing opera- tions, tools, and time of operations, and, therefore, was naturally antagonistic to all such changes. The nature of their product was such that improvements were necessary from time to time, and these, of course, were made. "He further added, that if changes were made, it was possible to follow and account for such changes with exactness, and that *slip-ups' were practically impossible. The fact that this was an inflexible rule, that positively all work must be done under this sys- tem, tended to prevent the changes being made, and called for greater forethought on the part of the en- gineering department. The expense of such changes and their effect to delay production became very evi- dent under this ruling. ^ "We will take up now the various parts of the ques- tionnaire previously mentioned, with our replies : " '1— How closely does the system installed follow the original suggestion of Mr. Taylor in his paper be- fore the A. S. M. E., June, 1903, Volume XXIV. ? " *A very recent study of Mr. Taylor's paper enabled us to note that the system at this plant follows closely, in all important details, the system outlined by Mr. Taylor. "*2— Wherein does it differ from the above, and what local conditions seemed to make this difference justifiable? Has it since metamorphosed into a condi- tion retaining the germ ideas of the Taylor System, INVESTIGATION OF THE TAYLOR SYSTEM 21 but with changed appendages, so to speak! Is it effec- tive in all Departments ; if not, why not! What plan of paying is used? Towne-Halsey, or Premium plan? Mr. Gantfs, or Task Work with Bonus? Taylor's, or Differential Piece Eate?' " *The system is effective in all parts of the plant. No orders, either for production, repairs, or renewals to plant or for extensions, are executed until they have passed the planning department. "*The difference was marked, in that the time of starting and stopping a lot of parts was considered the important feature — ^no particular time was noted as to the accomplishment of each particular operation. " *The Taylor System includes the use of the Differ- ential Piece Rate plan in paying for labor. But in this plant they use the Task Work with Bonus plan. Not only does the producing workman receive a bonus, but the gang boss and the speed boss each receive a bonus for each man who makes a bonus and an additional bonus if all men make a bonus. Mr. Hathaway stated that the bonus to the bosses had reached a maximum of about $10.00 per week. The idea was brought out that this was an important factor in the success of the work. " *The fundamental difference between the Differen- tial Piece Rate and the Task Work with Bonus plans is (to use Mr. Taylor's words) that in the former the workman is not only pulled from above to make a bonus, but he is also pushed from beneath; while in the latter, the pulling-from-above influence is potent. This is due to the fact that with the Differential Piece Rate plan, the workman suffers a penalty for not reach- ing a certain standard by being paid only for what he does ; while with the Task Work with Bonus plan, the H n ■ ^'1 ^t i * ■} 1- 22 THE TAYLOR SYSTEM workmau is sure to get his established day rate in ease he fails to make a bonus. "*3 — By whom was the system installed! (a) By some of Mr. Taylor's co-workers? (b) By the Tabor Manufacturing Co. f "*The system was installed by Mr. Barth. Mr. Hathaway, who was with the Company, followed along the lines established and was assisted by Mr. Barth. " *4 — If the Company was to go through the experi- ence again, would it handle it differently as to install- ment! " *Mr. Hathaway expressed the belief that the bene- ficial results of installing this system were largely de- pendent on the thoroughness with which the founda- tions for it were laid. A little hastiness or lack of experience on the part of those installing it, was likely to be paid dearly for by the employing company. In reply to our query, he said that he thought those best qualified to lay such necessary foundations were Mr. Barth, Mr. Gantt, and Mr. Cooke. He modestly with- held his own name, but after seeing what he had accom- plished in his own Company, we do not hesitate to add his name as an easy fourth ; inasmuch as he has been associated with Mr. Taylor in his research work. " *5— The system is O. K. for busy times ; is it also well adapted for slack times, such as the depression of 1907 and 1908? How about work not fully developed! " *It is the policy of this Company to take men from the factory to supply the Planning Department, and most men in that department are practical mechanics. This policy gave them men qualified by practical knowledge of the shop to ]aj out work along thor- oughly practical lines. If intelligence is used in re- cuperating the shop force with the right class of men, « INVESTIGATION OF THE TAYLOR SYSTEM 23 the entire supply for this department can be drawn from the shop, especially for the planning functions. Thus, when the depression of 1907 and 1908 came and business became slack, the inefficient men were dropped from the factory list and their places were supplied from the Planning Department until a profit-making equilibrium was established, and at no sacrifice of the efficiency of the Planning Department. When business again picked up, the process was reversed, and addi- tions were made to the Planning Department as fast as the business demanded them. " *The fundamental feature that the system accounts in very close detail is of the greatest aid in slack times, and the work can be placed in the shops by the centralization of supervision without the influence of the foreman acting to the contrary. This influence was common in the old system, as the function allowed the men to slow up to protect their organization. This slow-up was hard to find by the order system. Its pro- portion was seldom exactly known. The exact control of machines and the flexible system of routing made it possible to centralize work quickly and effectively. '*'We consider one very valuable and important point that of interesting and using the best mechanics for clerical work. " *An exact knowledge of relative expenditures is an especially good thing in dull times. " There was practically no such thing as "work not fully developed." It was essential that each piece be developed, and if there were not enough pieces so de- veloped to produce the assembly, then the assembly waited until these were completed. However, the value of knowing just what was needed to obtain a proposed result was a most valuable asset. t ■ i */ 1 li ! 24 THE TAYLOR SYSTEM "*6— About cost reduction: From the producing labor standpoint, how does present cost compare with that under the old system? In point of numbers and amount paid for wages, how about non-producers as compared with the old system! Or what proportion does the amount paid for unproductive labor bear to total overhead under present and old system? " at was stated to us that since the installation of the system, the company's financial status had changed from a condition where it was on the verge of a change in management, if not of a receivership, to a very profitable business, notwithstanding the fact that sev- eral firms had arisen in competition during the last decade. " ^n the present system, as compared with the old, non-producers have been increased in numbers and amount paid for wages in the ratio of about 5 to 1. In other words, they now employ five non-producers where they formerly employed one, in relation to the same amount of work. This is due chiefly to a more exact classification of non-producers, i.e., a more pronounced separation of productive and non-productive work. "*In conclusion, a word about the investment in- volved: Mr. Hathaway stated that the company's in- vestment in commercial tools alone, such as drills, reamers, milling cutters, clamps, bolts, etc., had in- creased from practically no investment to between $35,000 and $50,000 for the service of 125 workmen. Much more room, and a more elaborate system of tool racks and storing bins and drawers had to be provided, and in the factory at each machine facilities have been provided to take care of instruction cards and tools. " *The system provides a graphical view of the shops and all equipment. The capacity of any or all classes INVESTIGATION OF THE TAYLOR SYSTEM 25 of tools, or the retard of work at any tool, was very evident from the work board. " *The prevention of misplaced material was evident. The lack of materials or tools was easily anticipated, because they were scheduled at a definite time and were prepared beforehand. " *In brief, the company was able to decide what they desired to do, then were able to carry it out in strict accordance with previously considered and thought-out plans.' "The main question left to be considered is : what is the proper thing to be done to make a factory organi- zation more certain in accomplishing predetermined results? Most competent managers and superintend- ents can see the results that they want accomplished, and are able to get these results in just the proportion that they are able to eliminate the personal equation from the rank and file who execute their orders. Un- fortunately, however, the personal equation cannot be entirely eliminated from an organization in which any ordinary system of handling work is installed. "Evidently, a step in advance would be to subject all things to be done in a factory to some system by which each process from start to finish would be thoroughly planned by a corps of well-selected and trained minds, and one in which any deviation from the plans so made will be apparent at once and the reason ascertained, so that the desired results will not be thwarted. The Taylor System, as worked out at the Tabor Manufac- turing Company's plant, comes the nearest of any we have seen or know about to fulfilling these conditions. "In other words, as we see it, what we should have is a system of correctly specifying and carrying out work of all kinds ; so that every process will be car- I i I i I i i' Hi 26 THE TAYLOR SYSTEM ried out exactly as planned, and can be repeated as many times as desirable, in exactly the same manner and with exactly the same results, and the sum of all processes in the factory can be determined with nearly as great exactness as can be determined the sum of two plus two. This is the ideal ; and the thing that will come nearest to this is, in our opinion, the thing to do." With these facts so clearly before us, it was quite ap- parent that the introduction of the Taylor System would involve considerable expenditure of time and money. This could only be warranted if the outlay really promised concrete gain commensurate to the investment. Our determination to give the system a thorough trial was made deliberately and only after a systematic review of all conditions, for it was not until July, 1912, that Scientific Management was practically applied in our plant. Exhaustive as had been our investigations, our decision was arrived at only after a thorough com- prehension of Doctor Taylor's teachings and warnings, as so ably expressed in the following extracts from his writings : "After many years of close personal contact with our mechanics, I have great confidence in their good judgment and common sense in the long run, and I am proud to number many of them among my most inti- mate friends. ^ "As a class, however, they are extremely conserva- tive, and, if left to themselves, the progress from the older toward better methods will be exceedingly slow. My experience is that rapid movement can only be brought about through constant instruction and appli- cation of those responsible for its introduction. "It must be said, therefore, that to get any great INVESTIGATION OF THE TAYLOR SYSTEM 27 benefit from the laws derived from our experiments, our methods must be used ; and even they are of little,' if any, value under the old style of management in which the machinist is left with the final decision as to what shape of tool, depth of cut, speed, and feed he will use. "The instructions as to speed, feed, depth of cut, etc., must be sent to the machinist well in advance of the time that the work is to be done. Even if these writ- ten instructions are sent to the machinist, however, little attention will be paid to them unless rigid stand- ards have not only been adopted, but enforced through- out the shop for every detail, large and small, of the shop equipment, as well as for all shop methods. And, further, but little can be accomplished with these laws unless the old style of foreman and shop superin- tendent have been done away with, and functional foremanship has been substituted— consisting of speed bosses, gang bosses, order-of-workmen, inspector time-study men, etc. In fact, the correct use of our methods involves the substitution of our whole task system of management for the old style management as described in our paper on ^Shop Management' (Transactions A. S. M. E., Vol. 24). This involves such radical, one might almost say revolutionary changes in the mental attitude and habits both of the workmen and of the management, that such re-organi- zation should only be undertaken under the direct con- trol (not advice, but control) of men who have had years of training and experience in introducing this system. "A long time will be required in any shop to bring about this radically new order of things ; but in the end the gain is so great that I say without hesitation 28 THE TAYLOR SYSTEM I'l |i ill that there is hardly a machine shop in the country whose output cannot be doubled through the use of these methods. "And this applies not only to large shops, but also to comparatively small establishments. In a company whose employees all told, including officers and sales- men, number about 150 men, we have succeeded in more than doubling the output of the shop, and in con- verting an annual loss of 20 per cent upon the old vol- ume of business into an annual profit of more than 20 per cent upon the new volume of business, and, at the same time, rendering a lot of disorganized and dissat- isfied workmen contented and hard-working by insur- ing them an average increase of about 35 per cent in their wages. And I take this opportunity of again saying that those companies are indeed fortunate who can secure the services of men to direct the introduc- tion of this type of management who have had suffi- cient training and experience to insure success. "Unfortunately, those fundamental ideas upon which the new task management rests mainly for success are directly antagonistic to the fundamental ideas of the old type of management. To give two out of many examples:— Under our system the workman is told minutely just what he is to do and how he is to do it, and any improvements which he makes upon the orders given him is fatal to success ; while, with the old style, the workman is expected to improve constantly upon the orders given him and upon former methods. Un- der our system, any improvement, large or small, once decided upon goes into immediate use, and is never allowed to lapse or become obsolete; while under the old system, the innovation, unless it meets with the ap- proval of the mechanic (which it never does at the Jj < INVESTIGATION OF THE TAYXOR SYSTEM 29 start), is generally for a long time, at least, a positive impediment to success. Thus, many of those elements which are mainly responsible for the success of our sys- tem are failures and a positive clog when grafted on to the old system. **For this reason the really great gain which will ultimately come from the use of our methods will be slow in arriving— mainly, as explained, because of the revolutionary changes needed for their successful use -^hut it is sure to come in the end, "Too much emphasis cannot be laid upon the fact that standardization really means simplification. It is far simpler to have in a standard shop two makes of tool steel than to have twenty makes of tool steel, as will be found in shops under the old style of manage- ment. It is far simpler to have all the tools in a stand- ardized shop ground by one man to a few simple but rigidly maintained shapes than to have, as is usual in the old style shop, each machinist spend a portion of each day at the grind-stone, grinding his tools with radically wrong curves, and grinding angles, merely because bad shapes are easier to grind than good. Hun- dreds of similar illustrations could be given showing the true simplicity (not complication) which accom- panies the new type of management." How wise our decision was is best demonstrated by the fact that at the present time (July, 1917), we are turning out forty-five cars per day under conditions which promise soon to tax our capacity. Our industry is prosperous and growing. We have added some five hundred thousand square feet to our factory floor space and are paying considerably higher wages to ^ our workmen, an average increase of close to 60 per cent since July, 1912, and of 90 per cent since 1908 I f 30 THK TAYLOR SYSTEM t while our labor charge has nevertheless steadily de- creased through the cooperation of all parties. Since the day on which we commenced to develop our new management we have had absolutely no labor trouble of any kind. Our management is keen, active, and prosperous ; our workmen contented, healthy, and also prosperous. If: If» Chapter III CLASSIFICATION AND STANDAEDIZATION >T^HE Taylor System of Scientific Management is es- -■- sentially a system of classification and stand- ardization. It is that kind of management which conducts a business or affairs by standards established , by facts or truths gained through systematic obser- \ vation, experiment, or reasoning. It is quite different from Common Sense Manage- ment, which relies upon native practical intelligence, natural prudence, tact in behavior and the generally . accepted attributes of good management, in that it is based upon acquired learning and logical speculation. The virtues of the older system are not discarded, nor in any sense discounted, under Scientific Management. They are, on the other hand, incorporated and assimi- lated coordinately with acquired and carefully inves- tigated knowledge to form a comprehensive system of cooperation between management and pro'ducer. Care- ful and systematic classification and standardization of methods, materials, tools, and products form, there- fore, the first requisite for the installation of Scientific Management. During the period of installation of Scientific Man- agement, and until the business has been under such conduct for a considerable time, first standards are naturally roughly approximate to what the standards * 31 'M T H ; )| f 32 THE TAYLOR SYSTEM will eventually become. It is natural, therefore, to ex- pect a very close intercourse between all of the inter- ested parties during this development. The approxi- mate standards of an old business must be revised, and the varying rapidity of approach in different busi- nesses to highest standards precludes the assumption that any particular form of installation or reconstruc- tion can be used by the industrial engineer, or those parties affected by his counsel. Unless the difficulties through the period of dissolu- tion of established practice and the development of new be overcome by persons who have the interests of the business at heart and are guided by the most intel- ligent persons obtainable, the approach to failure of the business, as well as of the methods, is sufficiently rapid to cause great concern, if not severe losses, to organization and finance. Preliminary to any active work, the management and the more important supervisors and workmen must at least agree to be in accord with the intended changes and give their unqualified support. Those chiefly re- sponsible for the work of reorganizing will mark most deeply the final results. If they conduct the work in a half-hearted or unscientific way, conditions will be much worse than before they started. If they are capable and are supported, it will eventually be carried to a successful conclusion and bring a sense of comfort and lack of discord which the organization has hitherto unknown. Classification of product, materials, and machines or- dinarily comprises the. first task — a most important one, for it forms the backbone of the entire system. The recommended order in which this should be done and the scope of the work is as follows : CLASSIFICATION AND STANDARDIZATION 33 I. CLASSIFICATION OF PRODUCT The different kinds of units sold are recorded. Each of these units, if composed of two or more parts, is then completely analyzed, first, into its largest group, then, each of these groups into the next largest groups' and so on, until individual or single parts are all listed! In the separation of these units into their subdivisions, there is a natural division of parts into two classes ; those that are purchased finished ready for use, in one class, and those that are to be manufactured, in another class. Of the parts which are manufactured, there may be two classes ; one class in which the parts are assem^- bhes of several pieces, and the other class, single parts which fasten the assemblies together. As the units are disassembled, a record is compiled of the order in which this occurs. The inverse of this IS naturally the order in which the parts shall be assembled. A chart (Figure 1) of this classification is then developed, showing this order. When the simplest and most economical form is determined, it is adopted as standard. It is important that standard designa- tions, or index numbers, be applied to each part and assembly. One most common in old methods was a drawing number, or, as called by some, a pattern number. This use of a drawing number as a designation sym- bol IS not always to be recommended, for, unless the drawing numbers are applied in consecutive order to the parts as they are assembled, they do not provide a Jogical and easily remembered classification index but simply an arbitrary designation which may tend to confuse. There is no reason why the Dewey decimal system could not be applied to the classification of product, t^ f r I* !l 34 THE TAYLOR SYSTEM JO 1 -" e^i eo •* «o o Of te - C W f^ '-' 5^ 00 ■I Q Q -J ■*i ■** o o /> is § S3 E I •J Q a o 3 4> c > 3 3 a' 4> p S -s o jr J 1 en B ^ • • •. tn 2 2 ►3 <« H ad i-Hv4 QQ n ^ * I 55 ■g « g^BC O .£ U (X ^* 1?^ 00 »H ?"- 92 £? F- •>* »^ OC t«> I 1 CO a E Q 5 CO M tS3 \«» »-\ M > > •c Q •s a j2 P .2 t^ 00 OCi O fa ro \^ "^ ^ :^> eu >: oQ 00 en <^ IZ ^ -H > ^ > OQ Q t- tO uj lO »S U5 U5 K ar. lO i<5 j^ "IS oooro6cii63Sa6ooooae»5a«^p o6* C o *i «» ^ -^ -2 ^ = O U O CS4 IE » :s « 94 «4 iM c« CO ; ill CLAiSSlFlOATlON AND SIANDABDIZAIION 37 iil n ©a 0Q4> ll o 00 ?i o a o O o ■)-> CO 21 o r — CO- U3 « OB OS ! •s I at o a a 0) « o •*» CD 1 m et. .3 QQ a few o o QQ SI 0:3 •hS «*^ •ooa a et •*» OQ 2 ^^ 3 £^ OQ-C Sua GQ vi 1 «8 o •■« o GO ^•300 CO I CO .2 ft O-eoo 1 o fa I fa QQ •So .Sqq O o) as OS asi p bo a . 01*0 • 5 00 Oi O 02 o la a> s o «4 08 .(H ~ a a a (4 bo a .a 01 •o el a as 0!2 I OQ O es OS a c^ Ha » 4) So au pi QQ _, 00 a, — Oi « *•• rr" — ti )h So? --jO-M ,t. 4J-" sS 3i2 5 m .5*0 ji— *— xr3 . fc- e8 ?1 W f-i rt •»- j?> 'C «s^Ba oo-^a, Otf OS »4 9S .2— "* . o o.— 03 a o aw a> .3 ou-»- 25«ag'Sp ►^a soiy ^zSa s mmm » mm s. r -s i -ga at pi OQ •§"« 02 OQQQ OS m m < Ij ■•-' a a 2 OQ 1^ V wt^ a+j 03 ^ 4> ?* >^ ™ », tJD— <1 m •SI goJ t> . ..« ja^ e) OS t4 a « ^ o u OS 3 t^ -it O 99 CI 3 m m mmm m I— I O O H < QQ CQ 01 M 1^ 'V. «4* I I II 38 THE TAYLOR SYSTEM IV. CLASSIFICATION OF MACHINES In a complex mechanical industry, a large variety of machines are used. Among the more common ones are punch presses, turret lathes, automatics, grinders, milling machines, and drilling machines. Many types are in each of these classes. Where a large variety of parts are manufactured in relatively small quantities an arrangement of machines by groups of common class is an economical one. To route parts over their many operations, and to be sure that the productive burden on a machine does not exceed its capacity in the hours of work, it is essential to know the number of similar machines in a class, the number of the dif- ferent types, and the particular location of each ma- chine. Automatics are naturally divided into two types> semi-automatic and full automatic. Drilling machines into power, multiple spindle, and sensitive. All of the machinery, therefore, is classified into its most general class, then into sub-classes, then into types, and finally to individual machines. Not only are machines and all equipment classified and symbolized, but identical types are standardized for exact interchangeability. It is not uncommon to receive machines from the best machine-tool makers in our country that are reported to be exact duplicates, but upon which it is impossible to exchange identical tools and obtain the same result. A slight variation in turret height on a turret lathe, or the least difference in spindle thread, in gear ratio, or in pulley diameter, will preclude exact interchangeabil- ity, and such machines must be mechanically stand- ardized and so maintained. The principal standard that must be determined for practically all machinery is the percentage of increase CLASSIFICATION AND STANDARDIZATION 39 in speed over each speed change by the cones or gears. The standard promulgated by, Mr. Barth, which we adopted, was such that the change of speed from one .> /i:64- 2A/8 28./6 -1. X X ± J L -J I I I \ ZZI /2.a //./ zi.9 Axts ^7S tf-i- asjs /zt.? /f£V/S£0 SPEEDS -l: i_i I I I mo /J.09 IJ./S ZJ.4-30.tS ^7 so 7S9 /Ct.O fS9.0 zsxo sit. /o^rrc*t. 7'-f€0 T^^a^^i' 3. jj'O.^se/ *S/^/A^/7Z.S %S/'££IXS coffSM x/»H\conm /ft /rz /rs /Z.tlXBI /J.f \3Z 23.9 IBS /r.en S3.4S 47.S 66.4- co/fvt >f^?/y CI 89.7S CZ tt6.7 C3 mo FIG. 3. CLASSIFICATION OF MACHINES Single-spindic turret lathe and diagram of "Revised Gearing" INTENTIONAL SECOND EXPOSURE (t| 38 THE TAYLUK SYSTEM IV. CLASSIFICATION OF MACHINES In a complex iiiecliaiiical industry, a large variety of machines are used. Among the more common ones are punch presses, turret lathes, automatics, grinders, milling machines, and drilling machines. Many types are in each of these classes. Where a large variety of parts are manufactured in relatively small quantities an arrangement of machines l)y groups of common class is an economical one. To route parts over their many operations, and to be sure that the productive burden on a machine does not exceed its capacity in the hours of work, it is essential to know the number of similar machines in a class, the number of the dif- ferent types, and the i)articular location of each ma- chine. Automatics are naturallj' divided into two types, semi-automatic and full automatic. Drilling machines into ])owcr, multiple si)indle, and sensitive. All of the machinery, therefore, is classified into its most general class, then into sub-classes, then into types, and finally to individual machines. Not only are machines and all e(iuipment classified and symbolized, but identical types are standardized for exact interchangeability. It is not uncommon to receive machines from the best machine-tool makers in our country that are reported to be exact dnjilicates, but upon which it is impossible to exchange identical tools and obtain the same result. A slight variation in turret height on a turret lathe, or the least difference in spindle thread, in gear ratio, or in [)ullcy diameter, will preclude exact interchangeabil- ity, and such machines must be mechanically stand- ardized and so maintained. The principal standard that must be determined for practically all machinery is the percentage of increase CLASSIFICATION A^'n STANDAliDlZATiON 39 in speed over each speed change by the cones or gears. The standard ])romulgated by Mr. Earth, which we adopted, was such that the change of speed from one X. X X J_ ± /? ■^ /f64- ZO/d 28./Q 4.0. € -Sf.O 78/ 1 1 SO /Sd-S Zll I 1 1 I I \ \ \ \ /Z.IZ z/./ ZX9 ^- -: -i_ ■Ai.iS -^TS £6.4- 89.7s /Zt.J ./77.O /?£V/J£0 JP£E03 l-J I \ I \ ^ /J 09 fy./S ZJ.4-30.tS 47 so 7S.9 fOZ.O fSB.O ZS3.0 'Jraovece acLf. ^i.t /O^/rcM. 6O ZZ 22. €o TZ ^ <:. ^x##» z.eo 2. ^a O.SO6 £0 3. ^ » O. €9df 72 171 B2. 47.S CZ fZ€.7 ^3 23.9 as 66.4- C3 (770 f 40 THE TAYLOR SYSTEM I * step to the next increased in geometric progression. The diagram (Figure 3) illustrates a well-known make of machine completely analyzed. The increments of speed are shown before alteration and after alteration. Such diagrams have been prepared for all of the ma- chinery which we use. It is evidently a very simple matter to determine the exact speed which can be ob- tained on any particular setting of the machine. So, if a certain rate of cutting of machine tool has been determined and the work is to be done on a particular machine, it is possible for the planning department, through this record, to set the time which will be re- quired. From the study of this diagram it is evident that not only must the line-shaft speed be standardized, but, if electrically driven, even the voltage of the sup- plying line must be maintained constant. In fact, our power plant department is not infrequently brought to task on account of reduced voltage by our learning that a certain group of machines fell a definite percent- age below the speed at which they were to be operated. v. STANDARDIZATION OF MECHANICAL METHODS When the classification of product is arranged, each part must be analyzed to determine the mechanical procedure. This procedure is then adopted as stand- ard. A part in process must move from machine to machine in the exact order as recorded, unless a tem- porary suspension of standard is authorized by the manager. That is, if the order of work would be : Operation 1. Automatic u u u ti 2. Milling 3. Drilling 4. Heat Treating 5. Grinding, m CLASSIFICATION AND STANDARDIZATION 41 there will be no exception to this order except by spe- cial authorization. The mechanics who established this routing did so with the complete understanding of their problem, and, although there may be another way "just as good,"' such a substitution could cause mechanical troubles and disorganize the control. To follow certain mechanical methods, the kind, form, and amount of material must be known to the factory mechanic. If he has an elaborate and costly preparation method, he is best able to determine the least number of pieces which should go over that opera- tion at one "set-up." So the size of lot has been stand- ardized for each operation. The same lot size on the same operation on the same, or similar, machine will be produced in the same time. A definite producing time for each operation is thus established, to which is added a reasonable allowance to assure the com- pletion of the operation in actual production work within the allowance time thus fixed. The allowance time for each individual operation on each part is definitely set and the allowance time for all operations on each lot of a particular part, or assembly, may be arranged in their consecutive order— i.e,, the allow- ance time for each operation on a part listed in the consecutive order in which the various operations are performed. Figure 4 illustrates diagrammatically such arrange- ment of allowance times for a particular part as dis- played on our Control Boards. Each of the square blocks, or cages, represents a particular operation on the part, and the space following each cage (the space between one cage and the next cage to the right) is proportioned to the allowance time per lot for the par- T ' II Ir 42 THE TAYLOR SYSTEM ticular operation. The space occupied by the cage itself, representing on our Control Boards one working day, is the time allowance between operations allotted to the moving of the work to the machine on which the next operation on the part is to be performed, setting- Pne Work Day Allowance Time (oe each Operation Standard Time of 10 Days 'Allowed for Inipection and Beceipt of Stock Ko.58 Turret _ Beceipt of Raw Material ^*'ifo^r iato Poccbated Stores Producing Hoara for each Operation 0.0 Hours Hoors( Clutch Drom ( E25A QDaM. ,21405 No.l Sang SflllerJ No... Operation No»2 Operati Tota l Producing Hours and Allowance * ^Tirae for one Lot of 200 Pieces' Drawing No.ft Jlanotacturini: Symbol FIG. 4. STANDARDIZATION OF MECHANICAL METHODS The basis for the Control Boards up, etc., while the space measured over all represents the time the lot is in the shop. Preceding the first oper- ation cage, the space is proportioned to the time re- quired for inspection and receipt of stock from stores. A similar arrangement for each part and all assem- blies, as in classification of product, is made and mounted on a Control Board (Figure 5), and estab- lishes complete standardization of all mechanical methods. A more detailed description of the Control Boards, their function and operation will be given in Chapter V. VI. STANDARDIZATION OF TOOLS Jigs and fixtures which are special to the part for which they are used are standardized, as far as pos- sible, in design and construction, and are naturally classified and arranged in the tool storeroom according to symbols which agree with lists specified for each mechanical operation. In addition, there are the numerous small tools which must be employed, such as m^ m Si •*j a q: ^ Sal' k iJ -M J- m 1 ^ « tt% • f ^ s lm- f OQ 1 1 d (0 d 8 1 • ■*-> hi OQ d d J3 h s> c3 . M 0) 13 -o'S ^ ^ "♦^"^ d d O4 d d ^ 03 S u rder dura 3 «H* P -^g -^-^J 00 3 1 CD (Sl ^i J 3 s. •if «-& ^s T3 M S jifja _M 00 'S Most ( carria Conside Wool- Look li sidera 1 Look li much For Cal 5o 2 o Oo ^o oS ^0 ^^ O '^ o^ c* i^ Zs Ss Ss *5 Oo COo CCq ^o Wo CO^ if ©CO O CO OCO ©CO 1 a3 a3 a3 a2 &4 cx, ^ Sf ^ & ^ a s cu d d (N d (N d Cjl d Cjl d (N-^ rs tl fl r^ i 1 tHCO OQ "^ 2:; QQ^ ® r: 00^ gi s^ S'w S*i» S 00 *N 15 M -ti C -»^ :: ^j o d o,=5 o d d d ?^9 ^"9 feU feQ feO s# x« ^ *# 2 :: o t s H4 43 J O 2 U tS 1 s ^ ■§1 iland Spong ^1 ^ s 2 1^ CO W^ =3 J uu 1=^ k5^ 02 03 .0 WCQ f§^ d f-4 CI S CQ 2 o 53 5P O) d o a OQ 03 a 9i a o a OQ 03 OQ I «-i at) OS'S d d .^ d":3 §^ 03 OJ dl^ fe' 13 03 J^ 5H «^i5 d OQ bC d o a o ® CO Ui to QQ il"^ (S s td S. 03 do's O " go 03 d 60 "^ d 0) w g £| a o ll d d o a s ® CJ OQ I o3 >j O4 bfUoJ-d o3 D4. CD 0,0 o m a> O OQ n: ^ o o 00^ -D X < X -< 4-> e 3 3 .'<«> *■"' ''^-^' :■?> f"»errC|:|J 1^ IS IS IS 2.0 mm «8COCrGHIJKLHNOPQI)STUVWXV2 abcd«*Kh<|lilmnuciQntuvw>vz 1 234&67S90 ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghuklmnopqrstuvwxyz 1234567«50 2.5 mm ABCDEFGHUKLMNOPQRSTUVWXYZ abcdefghljklmnopqrstuvwxyz 1234567«% ^^ ^^ ^- 3 o o m >! g ^->-f. <.>;^> ^e> 1— • (V3 to U1 (j\ 3 3 3 3 3 3 > g. OD !f> 0,0 §-£ O-O h ?g rtO ^S IS (ffX '0 3l ►-^■cz l\>=:55 % '^ §3 2 Sz c^ a>= r 53 l| m '^c ■5^ OS'S ?^ sc 35 < Oorsi ^i S ■< r4 '% ^>*»% .^. ^^^ ^ ^v^ ^J^ FlO JO IlKTAIL or CONTROI. BDARD. Ml'uWINU UKAtt AXL.a Ol'KUATlON* . b. aamhm Aam la Vu «»«« on ttii. "poHiU chart in.liMte the „ l-,t.»i> of the tompUtoa imru on thu |,arti< olar oforalion to tho s.:hea- , ulr tsiK. above. At tb.- toi. of thf . Uart, th» ,rh.-.iul.. tiiya "how. out ►•he.liile fipiriDg at s a«r. .-tea \,f the iKwtiiiK of qnaulitief. in cal.4. REDUCTION RATIO . I ^H ■ I ^^:^^ ^ ^^^y^ CJl 3 3 cr o > 05.0 I "CI ^ :^ N CO CJl CX)M o ^.. 01 3 > o m CD o OQ en X N M a •J- . o 3 i .^^^ > .^Z ^ .^^".a^- ^2^. s 3 3 10 O1 o f"^EI?EE|sK CO bo O^ s Ig 10 NO 10 1.0 mm 1.5 mm 2.0 mm ABCDEFGHUKLMNOPQRSTUVWXYZ abcdefghi|klmnopqrsluvwxyzl234567890 ABCDEFGHUKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyzl234567890 ABCDEFGHUKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 1234567890 ABCDEFGHIJKLMNOPQRSTUVWXYZ ^ _ abcdefghijklmnopqrstuvwxyz 2.5 mm 1234567890 r^ ^d> '^o ^o f^ ?^ , V ^^ ^^^ •cP -"c. fp -i- m o o Tj rn -o > C cd I Tl ^ "CO 5 m 30 O m 6^ •4^1^ A^ '4^ i^ >y <^ Ik <^ :^ «^' <^ ■i^ 3 3 I > 3i |i o»x ^-< o 3 3 CD 5^5 IS 11 ^-< 8 ♦4^ /^/>' Vf^ I*-^^ ' FIG. 10. DETAIL OF CONTROL BOARD, SHOWING REAR AXLE OPERATIONS The numbers shown in the cages on this special chart indicate the relation of the completed parts on the particular operation to the sched- ule tape above. At the top of the chart, the schedule tape shows one schedule expiring at 860, and another schedule starting. That is, the imechanical diagram remains constant so long as product design meth- ods and time of manufacture remain the same. The changing of schedules is affected by the posting of quantities in each of the spaces which represents machines or particular operations. Of the lower tapes, the upper one represents working days and its zero point is the point of any given lot of finished cars. The location of a cage above any number on this tape indicates then the, number of work days, prior to completion of car, when that operation must be started on a standard lot size to secure the finished car at the zero point. The lower of the two tapes is a calendar tape and shows all calen- dar work days. On this it is seen that June 12 is immediately below the zero point; that is, the cars considered are to be finished by June 12. Referring to this tape, the part shown as brake carrier complete, right, Drawing Number 18145, must be governed by the following pro- cedure: The No. 3 Carbon Steel Forging, No. 17905 (shown to the left of the chart), must be ordered not later than December 1, to be re- ceived in Stores March 8; to be issued to No. 138 Vice, Operation 1, March 17; to No. 13 Power Drill, Operation No. 1, March 18; to No. 19 Power Mill, Operation No. 2, March 19; and to No. 20 Power Mill, Operation No. 3, March 22; and so on. The spaces between blocks on this part show the broken time to be very nearly uniform for the same number of pieces on the different operations. Inspection of other parts will show that such spaces vary more, as in the rear axle tube, Drawing Number 17904. I 215 210 c c R c [ [ 'e2. J— 25 I iil 2S 20S I 200 \liy, A 1 1 owe J 200 JL /85 MO I5S _1_ /50 fas JL. 120 us no f05 I J 00 '0 ^/r MA rffA re L- 59 iU OKPtKi R •jr^i r MA tip: a L ri)4X OA re_L~iT3 I opotn J Sik 2 3 L 1 r ■:FFiP /? j/M/T HArejf/AL IBS 74 G/fouP rf- riATk' /60 J55 125 J20 IIS I 27 I 2Z DEC. I 2 3 1 8 I T I 1 14 JAN. f6 /8 _L_ 13 20 21 -L 22 I 23 2S 26 27 28 J_ 20 30 I FEB, 2 _L_L < 6 I 9 1 Um , [39 - *2a»3^ Leather f^MH ^\3I2 %' *%' fhsehead Irmm^ \l5e ^U'-'^IO Copp^ m^^im pmr it — ^^ c tio JL iOS I /OO «3 L 'L 30 JL 2S _JL_ 20 J_ /S to 5" J- 860 3[ r*?*^-/ MPT TT — "J — SR ;>— {^o>^A'3 m DONOl posr ABOVt' cooes POtf pfKOG^esS SHE PUSOTGrtAJSL 8SS 8S0 _L e4S I 840 J_ 8Z5 _J 530 _L 87S I ^20 — ^ I L_ J_ 99£ ^. /<>C »/rK. CR. Pi:^ BSH OS I 4 ^ficcvv i ^ £i26^ fc-li2i::^ PUiOTCKA lf(BVi8S30 jD ^.i Ari^iK o.-JKf a— K- -/3 6 /? VSJJ MAT t ■RIAL ^51 £A /? j//Y/r Af 4 rz-^yxf. J0S74 G.90ur ti- HAXIL. 115 _J L J L MfiM J L SCf P*V30 I C feAL — — — — ^ ^ CMA IR r::i.j.,__ >-r , . _ FO,^ PROGRSSS \PrfS^TTef2A^yi^/e49S _ PUSOTCRAItit\ 9S^9 fT.Ai^LE BffK. Cft. PIN as BRK. C.ff. COMi-'- ft PU30TC/f2R IS US /^.AKLS TUBE IC ..J.J_.. ^rop.". [3 1 pr ■:Ji?^grt?l £«f£JL ZHr-i WWMM A ^-^-.-fe^^ 73rT? 1 Bl 3C UlMriTMIll' :gnrnFiijir 52SU; 11 Mt4 l_ . .j:v/?";y'^Jy.'.c Qri,by?7] /?) Lzr /o A/fr; i/£ isj -1-.:^- [^-11f^"i /?.4x.Lf £>i?/r pv. /»/ // ^5" -^6/ JO TCPAU nB04 HV4 ^ESifl" ffSAR T 7T 2 HJ- •* l'«' ' JT^^ Pt/ Jorc/?>t/^| /79 / /25 i:;»ogs PCftlOP 'if I, ^^Sl^j^i^^ ^^*' oe co/f/^ - z g^r i^; ^c PUSOrCRAZL \i8l44 m. IHP-f rfiHI PCRIQO JL£_ 172 20 8 ^ I /^^i^ SP/fiNG CHAIR Pr/30 TCRA SRX )94SS I trfS'L^ ■Siv-I £9«Lla=: ilSSA 839 'Slv-4 §5/ 4 pas i££^ 62 »P.; SOM-g /Off.» _ t>St>-': '^0€-i; 30 FEB. 2 \ u e 'r \ { \ nil f I «««-• fl i»r-«jj ^if*' 90 J 1 1 1 I I 75 \ 1 J L J 1 1 L es J \ I I 60 J I I 4 L SS -! I L J L SO J 1 L ^S J i I L -A I I L SS 6 MAR. d J I I i 8 , iO /[ if f /5 'f ,7 f ,9 f 22 ^^ 2^ ^f 26 V 29 \0 ^sT i 2 X ± X ± X X I i /o L ■? S ^ T ^ «a ""^ io '< '^ /^ f /« 7 /9 2^ 2! ^? 25 f 2* ^^ -I 1 1 1 1 I I i I I 29 PfAY X I I I I L 39 - *28x3^ Leather Fads per Lot. 312 %y ^' Rosehead Iron Rivefs per Lot J 56 %' ' **{0 Copper Rivets per Lot ''"Oa/e of Record 'Dafe of Rt cord SCHEDULE, CONTROL BOARDS AND DESPATCH TUBES 75 I'll H operation to cause it to be started in its proper time and sequence, it is evident that the determination of a finished car sales schedule provides an order of work directing all animate and inanimate forces in the manu- factory, Eecords of the exact condition of manufacture are obtained by photographing each Control Board face once each week. In proportion to the productive out- put, the clerical organization is materially less than under an older form of detailed records on route sheets and assembly charts. However, old data are readily accessible, and, having been photographed, are evi- dently exactly as they appeared at the time. The Control Boards have been a true economy both in the financial conduct of the office work and in the elimination of misapplied effort in the factory. They have not added to the confusion of management, but instead have so clearly mapped out the exact proce- dure in a semi-automatic manner that fully 80 per cent, of the activities are carried out according to the ideals of the management without confusion or in- quiries during the life of the schedule, usually at least six months. They record the acts emanating fpm the Planning Department, the management, and also the attainments realized in the shops. Every move of the management is directed and every accomplishment of the workers recorded. This necessitates a clearing house for the distribution of orders, etc., the despatch room mentioned in Chapter IV. Our plant, like the majority of establishments which have been built up and expanded to care for a growing business, comprises a group of buildings more or less contiguous and several stories in height. The connec- tions between buildings are planned primarily for effi- y4 J I Ml : '•1 t!i ! ,. f. 76 THE TAYLOR SYSTEM cient routing of work through the plant, and various buildings house different departments. Each one of these departments must be connected with the Control Boards for the receipt and despatch of shop communi- cations, etc., likewise the various tool rooms. A de- spatch room for each department where the workers could hand in their completed job cards, etc., and re- ceive new instructions (our former arrangement) in- volved many miles of messenger service each day, with an accompanying loss of much time, creation of con- fusion and liability of disturbance in the priority of instructions. These decided disadvantages have been overcome and certain other gains realized by substi- tuting for the various small individual despatch rooms one large main clearing house connected with the vari- ous shop departments with pneumatic tubes for the transmission of all communications. This large de- spatch room is located in the building housing the Con- trol Boards, adjacent to them and also to the Planning Department. Under the former arrangement of individual de- spatch rooms, when a worker finished a job and desired a i^w one, he would be apt to find other workers at the despatching cage so that he would have to wait his turn in handing in the old and getting the new job ticket. Often a man would start an argument over the job he was given or the job which he thought he should have. The clerk in the cage would sometimes be blamed and at any rate all the men waiting would be delayed and the production of all of them unnecessarily held up. Under the new arrangement of centralized despatch room there may readily be more terminals in the shops than there were department cages in the despatch room. All the worker needs to do on finishing a job I SCHEDULE, CONTROL BOARDS AND DESPATCH TUBES 77 is to insert the card in the pneumatic tube carrier, wait a short time and a new job ticket reaches him through the tube. Although there are approximately 1,500 jobs despatched in a day, there is practically no delay in getting the new job ticket to the waiting work- man. The centralization of the machinery of putting work through the factory makes for a quick adjustment of any difficulties which the worker may have with regard to machine or tool breakage, slowness of machine w^ith resulting loss of premium, working on jobs out of their regular date order, etc. Also it has eliminated, as stated, personal contact between the workers and the despatching clerks and thus unnecessary conversation is a thing of the past. The result is a more rapid han- dling of the jobs and a greater degree of harmony be- tween management and men because of the rapidity and ease of adjusting difficulties, for which often the clerk in the cage was unjustly blamed. Now, the worker waiting at the tube terminal knows there is nothing personal about his designation to a given job and that if the lot of material is not at his machine or the machine is inoperative, the difficulty is easily taken care of by action of the proper persons in fhe Planning Department. The system comprises 3,500 ft. of tubes in 25 lines, three of them 3 in. in diameter and the remainder 21/4 in. The system is operated by compressed air, an electrically driven compressor with a 35-hp. motor being provided. The carriers are of leather slightly less in diameter than the tubes and each is fitted with a felt washer at the bottom large enough to fit the tube snugly and act as a gasket or piston against which the air pressure acts. (1 . / % lil 78 THE TAYLOR SYSTEM At the central despatching point, or pneumatic tube desk, is a row of pegs, one row for each tube. When a carrier has been emptied it is invei led on one of the pegs. It remains there the short interval required to get the new job ticket before being returned to the tube. The number of inverted carriers thus indicates the number of men waiting at a terminal. If three car- riers, for example, are found inverted at one tube, it follows that there are three men waiting for new tick- ets at the terminal. The work of the despatching room is done so rapidly, however, that seldom are there as many as three men waiting for jobs in the same depart- ment. * * Chapter VI EMPLOYMENT AND EATE FIXING 4 •,4 DOCTOR TAYLOR'S principles of Scientific Man- agement stipulate : First, the development of the science and, second, the selection and training of the w^orkmen to conduct efficiently their share in the co- operative activity developed under such management. The science is not completely developed with the in- troduction of the control, the assumption of the man- agement of its logical and proper responsibilities and the efficient interchange of instructions and reports, as discussed in preceding chapters ; but, further, equitable rates and recompense must be established. This is part of the development of the science, and, at the same time, is the resultant consideration upon which the selection (classification) of the workmen must depend, as well as the incentive making for their intensive training. When the mutual advantage of hearty cooperation is once grasped, as it tends to be during the sane and careful development of the science, the workman is naturally attracted to the work he is best fitted to per- form, and the very human desire to secure a high rate of pay causes him to strive for a higher rank in his class and to acquire the necessary skill which demands and assures promotion. Thus the second principle is closely dependent upon the first, and it is in fact diffi- 7 79 m 80 THE TAYLOR SYSTEM cult to differentiate between them in an actual appli- cation of Doctor Taylor's principles to the management of a present day industry. In fact, the impossibility to demark strictly in the practical application of these fundamental principles emphasizes their basic and in- separable co-relationship. Selection is largely a matter of employing the right man for the right place and it should be freed from any taint of favoritism. In an organization composed of a considerable number of departments (as is ours) this can be best secured by concentrating the authority of employment and discharge in one person who is directly responsible to the management. This concen- tration of authority eliminates as far as possible the evils arising from the entrance of the personal equa- tion into the employment problem, and that this per- sonal equation should most certainly be eliminated is evidenced by the fact that the promotion and demotion of workers in a very large part of our industrial popu- lation is based on about 20 per cent, efficiency and 80 per cent, personal relationship. In our system, an Employment Manager has the sole right to employ or discharge men, but no one is em- ployed who is not also satisfactory to the Supervisor, or Foreman, of the department in which he is to work. And, while the Supervisor cannot discharge a man without the approval of the Employment Manager, he has the right temporarily to suspend any man against whom he has a charge until the case at issue has been investigated, or any man for whom there may be insuf- ficient work. If the worker cares to appeal and if his contention is sustained, yet it does not seem desirable, on account of personal relations, to return him to the department from which he was removed, nothing should .MiMfirj^-if--' ,^,Sp.,,M'-hy!^ii^-'r^-T^--;-'vr^~ 'i EMPLOYMENT AND RATE FIXING 81 preclude his being transferred to another department. One of the first steps we took in relation to the em- ployment problem was the issuance of the following order : "To All Foremen and Despatch Clerks Subject: — discharges and disciplinary measures Workmen whose records show that they cannot do the work satisfactorily in the department in which they are located may, after proper consideration by their Foreman, be released from that department, but not from the employ of the Company. The Employees Eecord Card (Form A-210) must be filled out by the Foreman and sent to the Employment Superintendent for investigation. The Time Office will recognize only those payment cards signed by the Employment Superintendent and endorsed by the writer. When a workman violates the Company's rule, he must be sent to the Employment Superintendent and the complete facts reported at once to the latter by the Foreman. Payment and Eecord Cards (Form A-36) will here- after be made out by the Employment Superintendent only after the workman's case is investigated and the circumstances warrant discharging him. Foremen only have departmental disciplinary au- thority. The Employment Superintendent shall act on the merits of each case in a fair and impartial manner." This created a court of appeal which, when fully un- derstood and properly used by the workmen, satisfac- torily solved one of the most trying and bitter problems affecting the employment of labor. Its object is equity i I ■If 82 THE TAYLOR SYSTEM and fairness, both to the organization and to the work- men. In order that the Supervisor may not abuse his authority of suspension, it is necessary that the work- man appreciate in full his right of appeal. Occasional instances did occur in our plant during the development of our system of management where men were un- justly suspended for indefinite periods. Such unjust suspensions were invariably due to personal prejudice on the part of the foremen, a failing which is unfortu- nately human, but nearly always antagonistic to the best interests of the organization, and one which must not be allowed scope under Scientific Management. The remedy lies in the right to appeal, and when the men realize that this appeal is not only their right, but their duty, unwarranted suspensions are much less likely to occur. Such has been our experience, and it is deserving of note by every management and all work- men. We invite the investigation of all grievances, and justice must result under a system of management in which all work to a common end, with the same funda- mental interests. Justice must be the cornerstone for fair and satis- fied employment, and likewise must be the basis for fair and equitable recompense, both to management and to workmen. This is the groundwork of Scientific Management as we see and practice it— an equitable division of work, just treatment and fair recompense. The men are virtually set up in business for them- selves and must give their best, both for their own interest and that of the organization. Fundamentally it directs first towards individualism and then to group action which will finally culminate, when com- pleted, to concerted action for all classes, and trades towards common interests — ^in no sense antagonistic to M\ EMPLOYMENT AND RATE FIXING 83 the welfare of the management. It provides for a gradual movement from the lowest worker through the master workman and foreman into managerial staff positions. There is no sharp lifie of demarkation be- tween the worker and the management. It not only does not lead to profit sharing, but provides the full profits of the work-lines. This not only provides for the full profit of the managerial effort returns to the management, but it tends to stimulate personal devel- opment through assistance given in the learning of new trades and processes by the worker, and by monetary recognition when such increased knowledge is attained ; it provides a monetary value for years of service; it provides fcr a definite retainer, if, for any reason, the worker is suspended from task work upon which he could make extra earnings for extra effort, and is caused to work on straight hourly time, the retainer is proportional to his effort when under task. From these extra allowances, which are normally much above a pre- vailing rate, are deducted amounts to cover losses due to lates and absences and spoiled work. As interpreted by us, the application of such equita- ble co-operative activity follows: The assumption is carried out that the management will provide space, heat, light, sanitation, service, machine, tools, and methods to the worker; that after the management has established a time cost for the part, any effort of the worker which tends to reduce the cost will be recog- nized by the full payment to him of any saving. The saving in cost includes not only the saving of his own time but also those fixed charges which his saving of time will save. If the investment placed within his hands is misused, or if he sees fit to close up shop, throwing the incidental burden thereof on the manage- ^ 84 THE TAYLOR SYSTEM ment, when he again comes in the employ after an absence of a few hours, or not more than three days, he pays back the losses which have occurred, if he still desires to retain his position. This is, obviously, not paid back in a lump sum, but on the next wage rate adjustment (quarterly the base rate of pay for each workman is revised) the wage rate is reduced an , amount which, during the three months period of its run, will compensate for such loss. The method indi- cates the aggregation of a number of small shops each manned by one worker receiving community service, in which investment responsibility when not in use falls upon the management, and in which the worker assumes the responsibilities which are naturally his if he assumes to operate that shop. The establishment of an hourly rate of pay equitable for all concerned involves the consideration of a num- ber of factors which must bear a definite and intimate relationship to one another. This may be conveniently expressed in the form of a general equation, or special formula. The general equation for the basic rate, where the premium method of payment is used, as deduced by us is "-[\V (l+1.3A'-.3e) (l-f.35PJ-hi; (^'+^«ia+.5.))Jc and for the determination of labor and indirect cost (not including materials) is : X=={r{l + e)+R)t The definitions of terms follow. They are common in both equations : r = Base hourly rate man is to receive K =A constant, when V is 100 per cent., to bring EMPLOYMENT AND RATE FIXING 85 B worker under standard conditions to standard rate Fundamental base rate, temporarily that of 1905 w n = Percentage of increase in living since 1905, taken on the 15th of January, April, July and October of each year = Percentage allowed for each extra process known or learned == Percentage allowed for years of connected serv- ice y = Years of such service R = Fixed charges rate per hour which man has chance to modify e = Percentage of premium earned on time allowance V = 100, which is the standard accomplishment per cent. E = Standard premium task time set Pa = Percentage of time absent or late S = Value of spoiled work per producing hours worked Pt = Percentage of time under task Pd = Percentage of time spent on non-task or straight . time work C = Co-operation and conduct X = Labor and fixed charge cost t = Time taken to do work Note : See Form I and la for analytical statement. Co-EFFiciENT (K), — Siuce in a factory of many proc- esses, or in different factories, a very considerable dif- ference in skill is required, there is consequently a vary- ing base wage. To illustrate : A laborer may receive 20 cents per hour, and a skilled toolmaker 50 cents per hour. However, the fixed charge rate (R) may be very high or low depending on the investment value of UI z oe i tf) o z z flC < u Q z < III s p •k z < s o b. o o o « u It flc o < i Ik UI z •0 z < s ]£ a o II 1 1 1 1 1 1 1 1 1 1 1 1 — ! — 1 — ! — 1 # \"^ J.3 » 1 . u 1 ft 1 ' -- a ^ll J S 8 « 8 s s SS88SSS8 ~^l5;!;SS58SS8g S3SSSgSS5 11 Sf ^ Jl^ i SS S« S! 5 rf ^ ^Isllii^s _ •• a ost « j2!!i^_2J3235'i •!.».-n?li5!2?4-^'t "J -..tN i S»S''R"«"«-«"8"n'5-S»S^3-'g}"=---'Si5i ? sj ? fei r? £! m a II o III SI 51 CS s ^^iisss^ssss "s^&JsUgsss "if-i|sssiss^3 5 5 S g 3 2 S 5 'if a- n« e> 2 "^ It* T"2?J?8->228-»S sg'-srgT- j :: " 10 to Ndh'i Deducted Pay dontl ly 32 Cti. l MM il u £S2 " ag§s;ss8ssg £:2::sss&SSrS9S s s ' SiSSS^SSS^SS SSS2SSS88S$:s;K IR 8 '■'ciaaoet'S oo»«o»co » -,oi CT o ftts M^ oop-«r«n nocxo '•■ ".T". •» «; ft'?'«'?*^'=t«e« *"»■• "" w 1 s « 8 § s 8 s aprs 2 a - * 3 ""-s « g sT s-s a « 2 M £8 r 'ss3 4 <• "< UI la If^ S S S S 2 S S S 7 s si 5|| 8 9 S 3 3 S 2 s 3 a S ^SS88S§3-!j383g 8 8 iiSr3Sg9Siii||S •• oooe Ma>r>o oo 1^ n'asif4ii4fii9 8 8 -if - ^ ^ ^ 2 •9 •»«* M>I~C9 M 2 J_»ag!8->asS'32 s-«aa8"S86" 23 s - 2 - « « ' i * iDis,coaO'- . i... ID e (It (M eo • o o o o Q y. < &4 O Q as O u a u < o Eb C WORKMAN'S RATING CLOCK NO. 532 U < z « ( ^ ) I e #4 #<4 i 35 m 1 si n CO 1 • -i ^* l¥ 1- *t Ji ■I- • 0. :i ^ ^ Is * II 1 «l1 -I 1" 2 5" v4 II 3 • • IJ — 1 J3 11 -I* « g • 1 1 - 2 P4 • • • §1 i ij|^» 51? + 1 ' ' 2 II F «9 Si ■X li 4 g ee ^ 3 • + • 2 + 2 P4 00 a t- 1 s. 3 1 •■ : IJ "2 a u X < M •3 1 ■5 ■5 + ■a m M U 1 § li g S — u k 2 i 5 ^ SB 1 8 H >< S a u a as u Id va to si s 1 2 eo 5 ca 09 s 2 « 8 a CD 00 i » 00 s 1 to ^4 td n S 8 <9 li as » X 11 E4 < CO « 2 2 eo 8 8 % a ^ m • a - CM (O «a30 1- 3 5 < a m - ct CO ♦ - t* w» ♦ 6 02 O o o tea o SO •«< < o o 03 OS 03 o 'a til I 86 87 ijf I ■ J t« : l1 ' 1 ' H : 88 THE TAYLOR SYSTEM equipment which the operator attends. At the stand- ard rate point for workers operating exactly to stand- ard, where the fundamental base rate and fixed charge rate are identical, the constant (A') and the rate (r) will be the same. As the fundamental base rate or fixed charge rate changes, (K) will change and conse- quently rate (r). (K) is first determined for a class by inserting the established standards in the equation and solving for (K), It is then used in each future de- termination for (r^ Fundamental base bate {B), — The fundamental base rates have been temporarily taken as the prevail- ing wage rate for men who worked by the hour with- out task in the year 1905 (See Appendix I, page 169). Careful study of a long period of years through our records showed relatively less turn-over of labor in that year than in any other for a very considerable time before or since. Wage increases were relatively frequent and uni- form for the years 1904-5-6. Altogether it seemed to have been a period when the working community was in good condition and workers were able to obtain sat- isfactory wage rates without difficulty. No attempt has been made as yet to determine the correct wage rate for the workers or in any way to establish funda- mental values for their efforts, but this fact has been established, if the base wage rates of 1905 were then equitable, our base wage rates are now equitable. Then, workers received no premium or extra recom- pense. It was a period during which, however, it seems the workers received a fair and adequate wage for their industry. Since the base wage rate of to- day is the wage rate of 1905 with full alloivance for the increase in living cost in this district, with an in- employment and rate fixing 89 crease for years of continued service, and with increase for acquiring a knowledge of extra processes, their base wage rate is now proportionally greater than iu 1905. In addition to this base wage rate there has fur- thermore been added a premium rate for special effort in which the first-class worker can and does regularly earn from 33 to 40 per cent., and sometimes higher, as an additional wage. This means that the worker today receives, as an average, 30 per cent, more than he did in 1905, in addition to allowance for extra liv- ing expense, years of service, and acquired learning. The base wage rates of 1905 in the trade classes which we employ are shown in Appendix I, page 169. It is my opinion that there is but one fundamental base rate and that is the rate which that worker should receive, who, by virtue of lack of training or mental development, is least productive. With this as a base all other trades and crafts can be raised to standard base wage rates as a percentage on this one funda- mental base wage rate. The percentage of variation would be measured by the relative cost of training the untrained worker to qualify in any one of the various skilled trades. There is at present a wide-spread effort for the de- velopment of young men and women into skilled trades, but so far very little has been done to train the ma- tured man, and in fact very little encouragement is being given to him to put forth effort to such an end. The percentage of increase in living cost (i), — To determine the relative cost of a day's living in the dis- trict surrounding our works in which a large propor- tion of our workers live, and to develop standards for comparison in succeeding years, a very thorough study of such conditions was made by the company. No Sll I i<* iliU <: !l I . ! 90 THE TAYLOR SYSTEM attempt was made to establish the amount that a worker should live on, but only to ascertain the in- creased cost of sufficient items so that, given reasonable figures or proportions by the workers, a percentage of variation between the living cost in 1905 and that in subsequent years could be obtained. In this study, food, clothing, fuel, and shelter were the principal items in which comparisons were sought. While the items of food or clothing as expressed in the menus or clothing lists did not seem to be well balanced in the different meals of the day or different seasons of the year, it was not attempted to cover all items that might possibly be considered, but only to adopt certain standard items about which there could be no question of obtaining local market rates on the same bases from year to year. The selections as to food, fuel, and cloth- ing were finally determined after a very considerable number of conferences with workers. From the sum- mary, the "Percentage of Increase" over 1905 (i.e., since the time of the fundamental base rate) is used directly in the equation as the term (i). The sum- mary of the research is recorded in Appendix I, page 173. Percentage allowance for processes (m). — The re- lease and employment of workers are possibly about twice as frequent on account of limited knowledge as for wilful leaving or discharge. In any industry work- ing on a complex product, temporary shortages of ma- terial or temporary hold-ups on any one operation for parts having a large number of operations may cause a suspension of work in the producing line. If the worker in that line is trained only for his particular act, practically nothing can be done but release him from service for an indefinite time. In the same shop employment and rate fixing 91 •X and possibly not more than two or three machines re- moved from where he was working is a machine with plenty of material waiting for it and with the worker absent for any one of a number of reasons. For this machine the foreman or employment representative is probably trying to engage a man who can do the work. Such an unbalance in productivity is practically con- stant, one class of work behind, and another class of work ahead. There is no question but what the cost of employ- ment, training of a man in organization methods, losses due to slow operation on machine, and spoiled work is considerably larger in a factory doing refined work than has so far been stated as a fact by persons who have given this subject detailed study. The cost of training a worker of mechanical ability on one proc- ess to do another successfully so as to be in readiness for such an emergency, and the additional cost of a reasonable addition to his rate to make it interest- ing and worth while for him to so learn, will not equal in two years the cost of once employing an unknown outside man. The periods in which such assistance would be required are of relatively short duration, and in the course of two years would probably necessi- tate the employment and laying off of a large number of men, were it not for the inside assistance we are enabled to secure by the training of men for more than one task. We have for the time adopted a rate of 4 per cent, for each full process more than one that the worker has acquired or will learn to do ; and furthermore we will furnish an instructor in any process to any worker who really desires to learn and we will pay the time of such instructor through the teaching period. The ■-r! ^ II 92 THE TAYLOR SYSTEM worker accepted, after his attainment has been passed upon by the factory inspectors and the foreman, will receive his process rate allowance after he has worked any full period of three months at the process. Proc- esses are sub-divided into divisions of one-half or one- quarter, and fractional credit is given. The list of standard processes at present in use are shown in Appendix I, page 170. Percentage allowance for each year of continued SERVICE (w). — For the loyalty which develops in em- ployees who have been long in service; for the his- torical knowledge which they have; for the esprit de corps which comes through long periods of association of men; as well as for a reduction in the frequency of labor turn-over, 2i/^ per cent, of the base wage rate is allowed for each year of collected service. If a man wilfully leaves the employ of the Company when we wish to retain him, and he is again employed, he sacrifices the credit for years of service. However, when it becomes necessary to reduce the number of employees, and the men are removed from service by the Company, if they return within a year no change is made in the rating. If they return after an ab- sence of one year or more, the years of absence only are deducted from the rating. While the employment charge cannot be escaped in such a case, practically no other costs are generated by such employment. The fixed chargTes rate (R). — Workers operate un- der widely varying responsibilities. In workshop pro- duction, the hourly fixed charges of a sensitive drill of very small size is insignificant compared to a large stamping press, or milling machine, or planer. Space, heat, light, sanitation, machine interest and deprecia- tion charges, and service provided for the worker and !P^ >.. i^i- ■"■'■- -■■'•^- J- ..^— >.— f- ---- — ■ EMPLOYMENT AND RATE FIXING 93 his machine will vary from a fraction of a dollar to several dollars per hour in fixed charges. These charges are continuous true expenses, not affected by active operations within the space. One hour of idle- ness may mean a charge of from 50 cents to five dol- lars against the product, for which there is no return. If one worker operates a machine having fixed charges of one dollar per hour, and does a certain piece of work in one hour, the fixed charge per piece will be one dollar. If another operator performs the work in one-half the time, the fixed charge per piece will be one- half dollar. If the work be on a piece rate system and the rate is fifty cents per piece, the total piece cost in the first case of one hour will be $1.50, in the second case $1. In the first case the worker receives fifty cents per hour, in the second case $1 per hour. That is, when the worker received the least amount meas- ured on the basis of comparative performance, the total cost was 50 per cent, more than when the worker received a double earning for doubled effort. Under such a plan, while in the second case the worker re- ceived double the amount for double the effort, the management likewise made a profit of fifty cents per piece. The important point is this, if the management was in entire accord, or had set or agreed to the rate of operation as specified in the first case, and the worker willingly and wilfully cut the time in two by personal thoughtful effort, then the worker should receive an additional amount over and above his wage rate saving equal to his saving of investment charges. It is obvious that this is an exaggerated case. There is little probability that the management with full in- telligence and proper care would establish a rate as illustrated in the first case. However, in the major- I ^1 i 1 1 /fff\\ II' • > 94 THE TAYT.OR SYSTEM itj'^ of cases after the management has established what it is satisfied is a fair, equitable rate, and if at such time the worker co-operated with the management to establish as fair a rate as he could, then it is only right to assume that the extra effort has been attained through extraordinary thought and care on the part of the worker, and he should receive the fruits of his efforts. Conversely, if after an equitable rate has been established, and the worker through negligence creates a high cost, then his base wage rate should be so ad- justed that the management will not lose on account of his negligence. This should be equally true for any idleness or spoilage of equipment or materials on ac- count of the carelessness or negligence of the worker. It is evident that by this method, if the management expects reduction of costs beyond that for a set task, the provision of new methods, better equipment and machinery, reduction in investment charges, or in- creases in quantity of output is the way in which to secure it. The worker is not "exploited" in any sense of the word. The way is always open for him to learn new processes; with continued years of service and with willingness and ability to assume larger responsibil- ities which in a tangible way means space with larger fixed charges. It is but a step from this to the "mas- ter workman," when he assumes the responsibility of a group, or to the foreman when he assumes the re- sponsibility of a department. A comparative state- ment of cost and earnings of one of our crank-shaft grinders is shown at the end of the article. (See Appendix I, page 174). This brings out clearly the importance of the fixed charges rate. Percentage of premium earned (e). — For some EMPLOYMENT AND RATE FIXING 95 years previous to our adoption of the Taylor System, we had been operating under a premium system. This was conducted approximately as follows: A department with a number of clerks was employed to record the actual time consumed by the worker on each operation. After such record had been main- tained until the rate of effort approximated a constant value, a premium rate was set ; this premium rate was made evident to the workman by a notice to him that for any time which he could save on that operation, as compared to his previous average performance, he would be paid at one-half the rate in addition to his regular rate. That is, if the worker had established a rate of 30 minutes for an operation, and he saved 10 minutes after the rate had been set, he would then receive pay for 35 minutes for each 30 minutes which he worked and rates proportional for any given time of saving. Under this plan it was evidently left en- tirely to the worker and to his own ingenuity and per- sonal effort as to methods of saving time — the manage- ment in no sense contributing to the saving — and for such time as he saved he received one-half rate onlv. The management profited by one-half the labor cost and all the fixture cost for the time saved. With the advent of Scientific Management, the management at once assumed its full responsibility to establish meth- ods and mechanisms, and by virtue of an exhaustive research to determine what was a fair time in which the work could be done. In general, at the time of such determination and research on account of funda- mental time-study having been used, both the worker and time-study observer were practically eliminated from any major influence on the result. Our time-study work has been directed by Dwi^ht 8 5 I M 96 THE TAYT.OR SYSTEM V. Merrick, one of Mr. Taylor's personal associates, and Mr. Merrick is in frequent consultation with our time study organization. The main responsibilities and resultant rates depend upon men who have had a large amount of mechanical experience, or a considerable amount of mechanical experience with a rather com- plete technical education. As described in Chapter III, a standardization of machine feeds for all equipment in the works was made, and mechanical movements and rate of move- ment were recorded, so that for any mechanical opera- tion the machine time, the depth of cut, or the speed and feed are determined and specified, the handling time only being the irregular variable. Since the time study has been taken on a given operation for a very large number of parts, and each element of the study which requires more than 2/100 of a minute is re- corded, the various elements are readily compared and variations in time taken on each element noted. Through a standard procedure, the base time required is determined. With the addition of average allow- ances for unexpected conditions not involved in the study, a final rate for the part is set, this rate being the number of minutes in which the work should be completed. As a means of providing recompense to the worker for his constant attainment of this rate, and to interest him in bringing to the attention of the management any feature which precludes his mak- ing the rate, additional allowance time of 60 per cent, is added to the flat work rate, and the final time allowance is published. Thereafter for any time which the worker saves on that allowance time, he is paid for one-half that time ; but the management has knowl- edge on account of its pre-planning that the time taken EMPLOYMENT AND RATE FIXING 97 should be the definite base time and therefore, it is expected with slight variation that the worker will save one-half the 60 per cent, allowance time and will be paid for this one-half, or 30 per cent, in addition to his flat base rate. There is no particular reason why a flat hourly rate including the percentage for accomplishment should not be set. Our chief reason for continuing the present premium plan is that it has been a particular procedure at the works, and is espe- cially adaptable for the present rating plan. If, then, a record be kept of the percentage of pre- mium time which the worker earns, a figure which is used in the compiling of pay-rolls and costs, it is rela- tively easy to reduce this to the approximate per- centage of time saved by multiplying by two. While this is not mathematically correct, within the limits of the figures used it is sufficiently so. The rate of pro- ductive effort is thus seen to be one of the principal elements in the rating. Standard premium task time (E). — This value is the percentage of premium which the wiJLrker^shouJd earn as against (e) the percentage of premium which he actually does earn. The simplifying of the equa- tion has made it somewhat difficult to appreciate the relation of this term in the equation. In practice its influence is to recompense the management for time losses of fixed charges on account of the slowness of the worker. Percentage of time for absence or lateness (Pa). — On a closely fitted schedule, in which the mechanical equipment is adjusted as nearly as possible to exact needs, yet with a minimum of fixed investment, any absence of the worker will, in general, cause a corre- sponding overtime effort by that worker, or by a worker I ♦ I M I i t I 98 THE TAYLOR SYSTEM substituting for liiin. Since our overtime rates carry one-third allowance to the regular rate both on base . rate and on premium earning rate, it is only equitable that any conduct of the worker which will cause the overtime work to be required should be adjusted by his rating. It has not been unusual to have a worker absent himself for a part of the hours during the day, and then work overtime for the sake of the extra over- time pay. (See Form II— Fig. 13.) Correction for work spoiled (aS').— The problem of spoiled work on either a work-day or task rate plan has been a most difficult one to handle. It is difficult to decide what should be done with a careless worker who, while working fast, possibly earning high premi- ums, will spoil a large amount of work, or for the straight hourly rate worker who, in our experience, spoils practically as much. It is certainly not equita- ble for such a man to receive as great a recompense as the man who is careful and has a small spoilage, and there has been but practically one redress, and that is discharge. If each operation on each piece that the worker does must be inspected, the overhead charges become very large. If inspection is less frequent, losses may occur and not be discovered until a very consider- able time afterward. At any rate spoilage is so fre- quent, of such an amount, and almost invariably traced to carelessness, that the management cannot withdraw from the workman's pay at a later date at one time an amount sufficient to cover the loss. The cost of the product thereby suffers. Our wage rates are set for high performance without spoilage — not as prizes awarded for little spoilage. The amount to deduct for spoiled work has been a question of considerable moment to every factory man- EMPLOYMENT AND RATE FIXING 99 ager; for many times the worker will not only spoil a great amount of valuable material, but all labor and fixed charges which have been accumulated on the part prior to the time of his beginning work. For fixed charges caused by his operation the worker is respon- FORMA-IZM WORKMAN'S ABSENCE REPORT NAME H.N.K. LEFT WORK MO. DAY HOUR P.M. WILL RETURN MO. DAY HOUR A.M. P.M. CLOCK NO. 532 DID RETURN MO. OAY HOUR Y A.M, EXPLANATION-Absences or Lates are allowed: When causing NO OVERTIME WORK. When NO LOT URGENT TAGS ahead of Man. When Workman arranges with Foreman for Workman's Job to go on without delaying Production. REMARKS: Specify condition of work ahead of Man:— CHECK NO NO YES Man is ahead of schedule on his work SIGNED:- E.J. DEPT. FOREMAN NOTED MO. OAY YR. 16 HOUR A.M. JSSSL eiQNEO 6.H.C D.5 M- CLERK ALLOWED MO. DAY YR. 16 HOUR A.M. aiQHEO H. EMPLOY. SUP'V'R. CHECKED WITH WORKMAN'S RECORD MO. OAY YR. 16 HOUR P.M. SIGNED C . E . ff . EMP. DEPT. CLERK FIG. 13 FORM II. ABSENCE REPORT FOR WORKMAN NO. 532 sible and for the monies paid to him there is little doubt that he can be held accountable^ but for the full material value or previous effort applied for which he is not accountable in any way, there is no justice in charging to him. 100 THE TAYLOR SYSTEM In our plan of rating, the worker recompenses, by a proportionate reduction in his base rate during the succeeding rate period, for such spoilage charges only as may be caused by his rate of pay and the fixed charge rate losses on his operation for which he is ac- countable—only, then, for that part which has been de- cided without question to have been his responsibility. No spoilage is charged until complete evidence has been obtained proving that the mechanical equipment, tools, or other factors over which he had no control were not a part of the causes. It is very unusual for such spoilage or loss to penalize a worker more than two per cent, per hour for his new rating period of three months ; while at the same time he may be drawing 30 to 40 per cent, extra earnings for speed. The larger number of workmen cause losses so small that no penalty is attached. Altogether it has not so far seemed to have worked a particular hardship, but it has not as yet been tried out sufficiently to say that there is not some problem still left. If the spoiled work can in any way be redeemed, then the direct labor charges and fixed charges for such redemption only are charged to his rating. It should be clearly understood that fixed charges do not mean the con- ventional "overhead" rate, but such fixed charges only as the workman can influence. (See Form III.) Percentage op ttme under task (PO-— Under any task plan there are periods of work in which the worker is suspended from task, or work on parts on which no rate has been set. It is universal in any such methods of payment that such time shall be paid at flat base rate only. To determine the merits of this and to obtain a proportion of relative time of opera- tion of workmen when under task or straight time, a employment and rate fixing 101 study was made of the time which workers used on parts on which task by time study was later set. The average result indicated that for a man accustomed to task work, if he saved a given amount on a part after / ^Spoiled & f Q ) Material > Defective \^Z^ Report N DRAW. NO. 21158 E30USIC Crank Sliaft LOT NO. 58 NO. OF DEFECT NO. OF - SPOILED 1 NO. OF RE-M'CH. IMPORTANT -THIS IDENTIFICATION TAG MUST STAY WITH SPOILED AND DAMAGED PIECES. INSPECTOR'S RECORD fNSTROCTIONS - W. M. INSPECTORS WllL SUP- PLY ALL DATA REQUESTED. W.M, RECEIVING CLERK WILL CHECK FOR COMPLETENESS OF RECORD. DRAW. NO. 21158 COT NO. 58 •»©, DAY TrI 7 26 16] OPER. NO. 14 NO. DEF. NO. 8PL0 NO. RE MACH dPECinr EXACT NATURE OF FAULT IN PIECE 1 Ground too small 1 TOTAI 1 SlQNEO W.M.H(BP. J.F. DATE M«. DAY CHECKED 7 30 W.MJI^LK. W.S. J / ® \s IN8TR0CTION8 - REPAIR DIVISION WILL EXAM- INE PIECES FOR SALVAGE- SPECIFY REPAIRS NEEDED - OBTAIN CHIEF INSPECTORS APPROVAL -DETACH STUB BELOW- FORWARD STUB TO ROUTE CLERK TO MAKE ROUTE SHEET. WHEN INVESTIGATION OF RESPONSIBIUTY FOR SPOILAGE IS COMPLETED-REPAIR DIVISION WILL RETURN STUB TO RATING DIVISION FOB POST- ING ON RECORDS. OPER NO CLOCK NO OPERATORS REPORT TOOL COHOITIOM OF CAUSE REPAIRS TO MAKE 14 532 urowed Tools etc wneei too O.K- Wo. UeoairR MO. DAY Wl. APPROVE D-BY CHIEF INSP REPAIRS ROOTED SV 8 2 16 REPAIR OIV. INVEST. Br J.G. 8 3 16 ENTBREO ON RATmO REooND ar D.O. FIG. 14 FORM III. FRONT AND REVERSE OF INSPESTOR'S REPORT OF SPOILED AND DEFECTIVE MATERIAL FOR WORKMAN NO. 532 task was set, he would have approximately one-half of this time before the task was set. While this was not in any sense regular, nevertheless it was so common as to furnish a proportion for the setting of extra recompense in addition to base rate when not under •:\ 1 I i ?1 102 THE TAYLOR SYSTEM task. That is, if a worker earns 30 per cent, premium on a base rate of 30 cents per hour and receives a total earning of 40 cents, he receives 35 cents per hour when suspended from task. If on a 30 cent rate he earns 50 per cent, premium with a total of 45 cents RETURNED FORM A-1277 MFQ. ISSUED Nov. 4,1916 4:00 P.M. Nov. 3,1916 3:30 P.M. IDLE TIME DRAW. NO. nn%. 21158 MATERIALS Not on Floor. Lot incomplete. Tags Mis-sin gr. Not up to Machine. MACHINE Break-Down. Repalrmeji Working an. Belt Trouble. Power Shut-Offs. instructions: -carefully check item causing delay. idle time will not bl allowed if report 18 incomplete. 105 MAN'S NO. D5 IVI32 NAME H.N.K. CHG. TO F-No 115 LOT NO. 58 OPER NO. 14 INSTRUCTIONS Lacking, or Missing. Defective, or Inconnplete. No Blue Print. Delayed for Inspection. Waiting at Cage. TOOLS Lacking, or Missing . Defective, or Faulty. Delayed for Grinding. Delayed for Supplier. FOREMAN CLERK E.J. C .H.C* FORM IV. FIG. 15 IDLE TIME REPORT ON WORKMAN NO. 532 per hour, when suspended from task he receives 371/^ cents per hour. That is, his day work allowance is one-half of his premium earnings when under task. The next rating compensates for this allowance. (See Form IV.) EMPLOYMENT AND RATE FIXING 103 Percentage of time spent on non-task or straight TIME work (Pd), — Discussed in the preceding para- graph. Cooperation and conduct ((7). — Additionally, there FORM A-1SS7 MFQ. WORKMAN'S RATING REPORT NAME CLOCK NO. OLD RATE NEW RATe| H.K. 532 35 H .43 1 NEW RATE BEGINS MO. DAY YR. CONTINUES UNTIL MO. DAY YR. REPORT ISSUED MO. DAY YB. 1 5 8 16 7 1 16 PERIOD BEGINS 1 3 16 PERIOD ENDS 4 1 16 PERIOD LENGTH 650 Hrs. FACTOR EXPLANATION RECORD STANDARD e-E Per cent of task time earned 33.8% 33.3% Pa M II II absence per hour worked 3 % Pd '» »» " time spent on day work 17 % 10 Pl II M »» time suspended % s Averag^e cost of spoiled work per hour S.OO M No. of major processes can do 6 2 y Years of continuous service 10.3 5 C Conduct and co-operation 100% 100% REMARKS: This rating determined on base rateCB)of S.25 for Crank finishers. The record is good cut down your absence all possible and hold your earnings high The old bargaining; rate of 5i.355 for the same performance is hereby abolished Your record through the current period will increase or decrease your rate for the coming period. AUTHORIZED APPROVED APPROVED -^.U^^. 9r,S,77^. P PRODUCTION MANAGER SUPERINTENDENT (/ DEPT. FOREMAN FIG. 16 FORM V-a. RATING REPORT OF WORKMAN NO. 532 The three reports. Forms V-a, Z>. c, show how one man increased his rate of pay from 35% cents per hour, first to 43 cents, then to 49V6 cents, and finally to 53% cents. is the general problem of cooperation and conduct. Co- operation in a special way deserves credit, since it is unexpected. Any defect in conduct, since unexpected, should cause adverse criticism. It is not the intent ■I ; :1 ' h , I H It ■It .' i ,. vi, , I 104 THE TAYLOR SYSTEM at this time to discuss or reduce to factors either co- operation or conduct, although this work is planned and will soon be regularly used. It rests chiefly upon an understanding with the workers that certain well- FORM A-tSSTMFQ. 9|i5fi6WORKMAN'S RATING REPORT NAME H.K. NEW RATE BEGINS PERIOD BEGINS MO. DAY 8 YR. 16 16 CONTINUES UNTIL PERIOD ENDS CLOCK NO. 532 MO. 10 DAY YR._ 16" 16 FACTOR ej_ Pa Pd M EXPLANATION Per cent of task time earned " absence per hour worked " tinfie spent on day work " time suspended Average cost of spoiled work per hour No. of major processes can do Years of continuous service Conduct and co-operation OLD RATE .43 REPORT ISSUED PERIOD LENGTH NEW RATE .495 MO. DAY 30 YR. 16 450 H"» RECORD 42.7% 2.2% 31 % % liPO. 5^ 10.4 100% STANDARD 33.3% 10 100% REMARKS: Your record through the current period will increase or decrease your rate for the coming period. AUTHORIZED ^JM. PRODUCTION MANAGER APPROVED 6^.7^. SUPERINTENDENT APPROVED ^ DEPT. FORE MAN PIG. 17 FORM V-6. (SEE FORM V-a) defined acts of cooperation will bring extra reward, and certain unsatisfactory conduct will cause definite pen- alties, ranging from reduction in wages to the condi- tion where a man's action or influence is incompatible to his supervisors and associates, with resulting dis- charge. EMPLOYMENT AND RATE FIXING 105 Labor and fixed charge cost (X). — This is the cost as adopted and used by the Accounting Department. Time taken to do work (t). — This is the time ac- tually taken to do the work. This may all seem to be a very complex solution of FORM A-1867 MFQ. i2Wi« WORKMAN'S RATING REPORT NAME Crank Grd. Mr.K. NEW RATE BEGINS PERIOD BEGINS MO. DAY IB. YR. m. 16 CONTINUES UNTIL PERIOD ENDS CLOCK NO. 532 MO. IZ. 8 DAY TS" 26 YR. 16 16 FACTOR e-E Pa Pd Pl M EXPLANATION Per cent of task time earned " absence per hour worked t» time spent on day work " time suspended Average cost of spoiled work per hour No. of major processes can do Years of continuous service Conduct and co-operation OLD RATE 495 REPORT ISSUED PERIOD LENGTH NEW RATE 535 MO. DAY YR. 9 118116 630 Hrs. RECORD 60% 1.4% 6% 0% S.003 5h 10.6 100% STANDARD 33.3% % 10 % % s.oo 100 REMARKS: Your excellent record of premium earnin g s as well as low absence has put your rate up this additional amount. Your record through the currer\t period will increase or decrease your rate for the coming period. R.M .H, AUTHORIZED ^,.0^. PRODUCTION MANAGER APPROVED #^ S.'^h^. SUPERINTENDENT APPROVED ^ OEPT.FOREMAN FIG. 18 FORM V-c. (SEE FORM Vhi) the problem, but it seems to be the least complicated expression which will solve the problem in any satis- factory way and allow for the perpetuation of standard rules without personal differences interfering in each new rating. As a result of the application of this \l \ 1 ,• ■< : ■' m: 'i I ! j 106 THE TAYLOR SYSTEM rating to workers two classes immediately developed: — one, in which the worker still maintains or increases his rate, exemplified in Forms I, II, III, IV, V, VI, and Appendix I, page 174 ; the other, a class in which FOB. ..no. WORKMANS DAILY STATEMENT NAME H.K. D 5 M 32 YOUR TIME AND EARNINGS WERE AS FOLLOWS ON MO. DAY YEAR 11 1 16 DATE WORKED ON DRAW. NO. WORKED ON LOT NO. opeR. NO. PREM. BASE PIECES FINISHED TIME TAKEN PREM. HR8.DUE MO. DAY BEGUN AND FINISHED THIS DAY HR8. IOC HRS. 10S 11 1 21158 56 14A SH 35 1 2 1 8 ■ BEGUN OR CARRIED OVER THIS DAY BUT NOT FINISHED 11 1 21158 58 14 104 5 3 3 CARRIED OVER AND FINISHED T HIS DAY 19 11 1 21158 56 14 104 1 6 4 5 TIME ON PRODUCTIVE DAY WORK 20 8 TIME ON NON-PRODUCTIVE DAY WORK I TOT. PREM. OVERTIME TOTAL TIME ACTUALLY WORKED= 9 TOTAL TIME WORKED PLUS PREM. HR8. 108 RATE DOLLARS CT8. lUM TIM HOI E ALI JRS EARNED PLUS -OWANCE. OVER- 29 8 .53H 15 96 PIG. 19 FORM VI-o. DAILY STATEMENT FOB WORKMAN NO. 532 the rate tends to decrease, exemplified in Appendix I, page 176. As typifying these, two cases are illus- trated, the records of one worker in each class. Such records are maintained for all of the workers, and since the re-rating occurs but four times per year, it EMPLOYMENT AND RATE FIXING 107 has not caused an excessive overhead burden. It is self-evident from an inspection of these records that regardless of anything like a reasonable overhead cost, the profits to both worker and management must be IMPORTANT WORKMAN, ATTENTION- IF YOU FIND ANY ERROR IN THIS STATEMENT, WRITE ALL NECESSARY INFORMATION IN SPACES BELOW AND RETURN STATEMENT SAME DAY RECEIVED TO RATING DIVISION. PAYMASTER: -MY CLAIM FOR PREMIUM IS: DATE WORKED ON DRAW. NO. WORKED ON LOT NO. OPER. NO. PREM. TIME PIECES FINISHED TIME TAKEN PREM. HOURS DUE AMOUNT DUE MO. oAr DOLS. CTSt REMARKS AND EXPLANATION TOTAL DUE WORKMAN'S STATEMENT D M CLERK'S STATEMENT PAYMASTER'S STATEMENT FORM Vl-b. FIG. 20 REVERSE OF WORKMAN'S DAILY STATEMENT very great. The statements of two of our workmen are shown as typical of the statements which they have been very free to make to those closely associated with this work. (See Appendix I, page 180.) It is our intention to continue our studies along the lines of the relative cost of training workers for standard proc- I 108 THE TAYLOR SYSTEM esses, and as early as possible to work from one funda- mental base rate. This rating system was adopted and introduced in a year when workmen had practically no fear of ob- taining employment wherever they desired. None of the negative or positive factors was withheld from them or modified during the many discussions with them, and the management has stood ready at any time to assist any worker who did not care to work under its provisions to positions in other industries in this territory. We feel that the plan has been rigor- ously tested. Not only have we had no resignations on this account, but we have also attracted a consider- able number of excellent men to our force. v Chapter VII ORGANIZATION CLASSIFICATION THE cooperation between management and work- men and the division of work between these two branches of the industry — the third and fourth of the principles of Scientific Management as expounded by Doctor Taylor — can be plainly traced throughout the development of the science and the selection and train- ing of the workmen, as outlined in the preceding chap- ters. In fact, the four fundamental principles of Sci- entific Management are so intimately and mutually co- related that it is quite impossible to draw sharp lines of demarkation in their practical application, or, for that matter, between the responsibilities of the man- agement and the duties of the workmen. This in itself, though it may not seem to establish the result, does tend toward creating the necessary cooperative action and division of work, for a practical working organiza- tion built on Doctor Taylor's principles must be based on clearly defined duties for each and every individual. The organization table of our manufacturing depart- ment. Figure 21, forcibly brings out the cooperation and, at the same time, the individualism required for the successful application of Scientific Management to a modem plant engaged in the manufacture of a complex product. There is no confusion ; each depart- ment, each individual has its or his own independent 109 r :! ' ^f «; 110 THE TAYLOR SYSTEM duties clearly defined. Management and production are distinct, but still go hand in hand. The Works Manager, the representative of the Com- pany, is at the head of three divisions: the Purchas- ing, Engineering and Producing Departments, each one distinct and related in no way to any one of the others, except in so far as the product of one may affect the producing division, or in the performance of some special work which stimulates or assists production. For instance, the only direct connection between the Purchasing Department and the shop is that the mate- rials required by the shop are purchased through the Purchasing Department of the organization, though there is an indirect connection in the fact that the necessary patterns are routed through the shop by the Purchasing Department — such special duty aiding the Purchasing Department in delivering to stock certain materials required for production. The Engineering Division, consisting of the three independent sub-departments of research, design and inspection, is quite separate and has no voice in the operation of the shops. Its duties are clearly defined : the research section conducts such technical experi- ments as may be necessary to further the interests of the organization and performs all mechanical, chemical and physical tests ; the designing department prepares the mechanical specifications, makes the drawings and maintains the alterations which are necessary for the producing division of the organization; while the in- spection section passes on all purchased material be- fore it is credited to stores, inspects finished parts, assemblies and, finally, the finished product, the auto- mobile — i.e., worked material inspection. The Producing Division, the factory, is divided into Ml ORGANIZATION CLASSIFICATION 111 \ two main departments, the planning and executive sec- tions, both under the direction of the Production Man- ager. It is in this division of the organization that the cooperation between management and workmen and the division of the work is most clearly apparent. Each one of these two main departments is subdivided into four sections, each section with specific duties and responsibilities forming connecting links between the workers and the management. The sections of the Planning Department are those of routing and equip- ment for production, schedules, building and equip- / ment, and employment. Those of the Executive De- partment: despatch, producing, inspection, and stor- ing and transportation of materials through the shops. The duties of the routing and equipment for pro- duction section in the Planning Department cover the design and construction of tools, their repair and storage, specification of perishable tools and supplies to be carried, preparation of tool lists, selection and standardization of machines, maintenance of belts and attention to all power transmission problems, speci- fications of the size and form of materials to be carried and attention to the routing of all materials, pattern orders, parts and assemblies through the shop. In addition to these more or less routine duties, this sec- tion also decides upon the parts which constitute as- O^ semblies, prepares the assembly charts and conducts / the time studies, etc., decides upon the rates to be set and prepares the instruction cards. Further, it plans the paths and stations for production of parts and assemblies. These numerous duties call for the serv- ices of a master mechanic, draftsmen, time study ob- servers, an analysis clerk and a corps of stenographers. The schedule section is in charge of the Production 9 112 THE TAYLOR SYSTEM I i- Manager, Assistant Production Manager, manufactur- ing order clerks and a progress clerk. Their duties include the preparation of the schedule tape for the Control Boards, the progress charts and setting the schedule for each element entering into the construc- tion of a car. They record the attainment of the pro- ducing division with respect to schedule and despatch and display a perpetual inventory of work in proc- ess and work in finish stores. The lot sizes are deter- mined by them and the Control Boards set-up; they write and date all manufacturing orders, job cards, issues for materials from stores, move tickets and tags. They open and date assembly charts, date pattern and tool orders and set the maximum and minimum requi- sitions for unclassified stores. The building and equipment section has duties which are somewhat foreign to the actual production of auto- mobiles, but which are nevertheless necessary in main- taining production : They include the planning and con- struction of buildings, improvements to the grounds, furnishing light, heat and power to the buildings, and providing for fire protection, ventilation and sanita- tion. The alteration and repair of buildings and prop- erty, the maintenance of cleanliness throughout the plant, etc., also come under the jurisdiction of this sec- tion. The personnel of this section, in addition to the Works Manager and Production Manager, consists of the Superintendent, Chief Millwright, Power Plant En- gineer, foremen and the necessary millwrights, elec- tricians, janitors, watchmen and utility men. The employment section is in charge of the Employ- ment Manager who, in consultation with the Production Manager, Superintendent, Assistant Superintendent and the various foremen, handles all matters per- ORGANIZATION CLASSIFICATION 113 taining to the employment and discharge of workmen, passes on rates, maintains the workmen's time and earning records, classifies the worker's qualifications and is responsible for the tool checks when workmen leave the employ of the company. Under the Executive Department of the Producing Division, despatch is centered in the despatch room with its system of pneumatic tubes for the transmission of all shop communications and is under the immediate control of the Assistant Production Manager. The active force consists of the chief despatch clerk, a tickler clerk, route, file and machine rack clerks and a mail boy. Their duties are mostly clerical, for they consist in the proper distribution of communications to and from the shops; dating, recording and reporting on the numerous orders, tickets and memoranda inter- changed between the Planning Department, the man- agement and the workers in the shops, through the medium of the Control Boards. The carrying of all mail is also entrusted to the care of this section. The produce section of the Executive Department sees that all orders received from the despatching sec- tion are carried out by the respective sections to which they are addressed and acts as general overseer in all matters of production activity. Both the Production Manager and the Assistant Production Manager have distinct duties to perform in this section, as have also the Superintendent and the Assistant Superintendent of the plant. The foremen of each department, the Stores' Chief with his clerks, the Transportation Clerk, movemen, elevator operators, shop inspectors and the workmen cooperate in this section to carry forward the productive activity of the organization. The duties of the inspection section, under the Ex- t ^ M 114 THE TAYLOR SYSTEM ecutive Department, are limited to the inspection of parts in process, which is quite separate from the in- spection of the Engineering Division on worked mate- rial, and to direct dealings with the workmen in re- spect to claims on bonus jobs, etc. The first part fin- ished of each lot on each operation is inspected, checked with its drawing and passed upon for quality of work- manship, etc. The inspector also passes on as many subsequently finished pieces of the same part, in the same lot and on the same operation as it is possible for him to inspect and reports his findings to the foreman of the department. Any criticisms from the Engineering Division inspectors on worked materials are investigated and workers' claims of good parts on bonus jobs checked by the inspectors of this section. The section of Store and Transport maintains the ledgers of all stores on hand and apportions manufac- turing orders and assembly charts to these ledgers. The requisition of all materials called for by appor- tionments is cared for, and all materials received, certified as to quantity and stored. The transporta- tion of all materials on orders from the despatch sec- tion is also a duty of this section, as is the maintenance of transporting equipment, scales, bins, etc. The As- sistant Production Manager heads the section and deals with the Chief of Stores, the stockmen, movemen and the elevator men in the various buildings. This brief explanation of the duties of the various divisions and sections of the manufacturing depart- ment of the organization, together with a study of the organization classification table (Figure 21), should make clear the cooperative feature and the equitable division of work under the Taylor System of Manage- ment as applied in the Franklin shops. REDUCTION RATIO 20:1 b 3 3 0) cr o > t^ 3 X ^o *< JO ■'^^^ OiX ^-< OOM O In 3 3 O > ^S Is xO *< 73 N CO U)^ X ^-< OOM O CJl 3 3 > DO o m "♦* -I- CT>2 z vj o o =^-^ — X < N -< ^^ ^: ^V > "c: '^t ^*** >' >** s 3 3 .«** ^, ^, ^ o 3 3 ei^ ^^^^.^- €^^ V V > .^^ s 3 3 ^: > > 1-; > "c^: 1.0 mm mm mm ABCDEFGHIJKLMNOPQRSTUVWXYZ atKdef ghi|klmnopqrstuvw«yz 1 234567890 ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghiiklmnopqrstuvwxyz 1234567890 '' 2.5 mm ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghiiklmnopqrstuvwxyz 1234567890 o o n m -D X TJ ^ t; O 00 0(/) 5 m V :* <^ f« Ul 3 to b 3 3 ^5 n Si Si ai si si I? 3? E P hip OOM 8 3 3 > CD 0) O o m (t a Old ^ jp O 00- X < IM < -< tSI VUt. it. OnriASIZATIftX CTASSIFIOATinX TA1!I,i: nrts. Prepare Time Study Analysis, Prepare Instruction "ards,. Decide Pates to Set, Plan Path * Station of Parts A AssemUtt s for Production \SCHBOULE^ - \ rriLN I Productiun Manager, Assistant Production Manager, Manufaeturiny Order Clerks, Progress ClerM. \ Dur/£S I Prepare Progress Chart*, Prepare Tape from. Geiierai Schedule, for Control Board wkicA shows each Element of ffoute Division Work except Pate Setting, Set SeheeduU for Each Element, Despatch antf Delayed Parts, Pecord Attrininent of the Producina Division uith fftspeet to Schetiuim • DespaicA., Disptau a Perpetual lnoentoru of Work in Process and Parts in Pinish-Stores, ? determine Lot Sije 3 and Erect ontrol Boards, Ylrite and Date Mcnufactunng Ordei^ Write and Date Jo6 Cards. Store Issues, Mooe Tickets and Tags, Open & Date AssemUy Charts, Date Pattern Orders, Date Tool Orders, Set Meumutns ii /Hinimums, Pe^uisition. Unclassified Storae. - 4 Met/' BUILDIN6 A EQUIPIttSffT Works Iflanager, Production Manager, Sup e rintcnde n t. Chief Miiturrijht, nfillufrights. Electricians, Janitors, Watchmen., UtiUty Men. Pouter T^cnz Engineer^ Poremerz.. H Duries \ Plan ^ Obtain Architect's Specifi- cations and i^uild Buildings and Grounds, Produce Light, Heat k Power for Buildings and Provide Eire /Ve- tection., Ventiiation Si Sanitation, Maintain Eire Department^ Equip- ment and Hospital, Alter A Pepair Buddings A Greunds and Maintain. Order Ir CleojUi- ness. Design, and Protride all Building Eeiupment, Maintain, and Pepair, Police Buildings ^ Grounds. ■* i ^f/y J Emploz/m en t hianager, Prodiiction MeKogtr, Supari'itendtnt . A tsistantSitperinieiuient, ForamaJi: Piiceioe, Intentieur and Peeord aU AppUcants for Hourly LaSor, Fill Vacancies, Endorse all Appli- cants for Discharge, Pass on. Pates, Maintain iNorkmen's Time and Earning Pecord, Classify Workman's Quatifieatiens, Tfeeeioe and Account for Tool Checks urhen Workmen Leaae Em- pioj. -* \D£SPATCH\ 1 EXECuri\/W~^ T I — i MEN 1 Assistant Production /ftanager , Chief Despatch Clerk, Tickler Clerk, Jioute,PUe and titacAine Jfacd aerks, Mail Boy- \DUTIES \PHODUC£\ Open Hcute Sheets and Post at Tine of £ach Eaent, Deliver Moo e Tickets, St^re Issues and Tags to Store Section., Peeeiue Material from. Stores, Chech A Data Stores trswe emd Moee Tickets, Deliver Move Tic/rets to Trans - portation Section., FUe Job Cards in Triplicate in- Machine Packs in Order of Sche- dule Data, DelioerJob Card Coupons to Foremen, Date. Stamp t, Delieer Jo6 Cards ^Workmen in. Order of Schedule Peeeiire Job Cards from Workmert and Date Stamp, Deliaer Inspection. Coupons to fn- Specters, Superirise Attendance Job Card Packs, Jteceiae and Account for Lates and Absences, Report Idle Machines or Under Pepair to Pouting Section, Carry all Itlail.. MEN 1 I Production Mdnager, Assistant Prodfiction Manager, Superin tendenf, Assista/itSuperintf-ndeTit, Foreman Stores Chief a:ui Clerks, Transportation Clerk gtMeoemen, Elepator Men., Inspectors, Workmen. DUTIES 1 Carry Out all Orders Pecscoed from. Despatching Section urith Means Proiridsd 6g Other Sec- tions. INSPECT ' T ' — I ME."^ I Production Manager, Inspectors. - H DUTI£S\ Inspect the First Part of Each Lot on. Each Operation, Check Each. Th.TTan.Each Operation as Frequently as Possible, Peceio-e and. Inirestigate all Criti- cisms from Engineerinff Inspect- ors, Pepart Findings to Foremojx, Check Workmen's Claim, of Good Parts on Bonus Jobs, IjrOffgA TlfANSfVin\ EMGIMeEKlMG DIVISION EMGIMEEn MEN Assistant Production. Manager, Chief of Stores, Stock Men., Mouemen, ELeoator Men. . H experiment '\ DUTIES pTf&CTW/yl {Meci q jzicat Test^ - \ Chemicai Test\ Draft I H Check 1 Hfltysical Test \ - K Trace I Maintain Ledgers of All Stores on. Hand. Apportion Manufacturing Orders and Assembly Charts to Ledgers, Peeiiisition of All Materials called for by Apportion ments, fteceiire Certify to Quantity and Store AlUMaterials. Transport AU MateriaLs on Orders from Despatching Section and Main- tain Scales, Bins, Trujcks andSotts in First Class Pepair. Blueprint t Superaise IcwygclWJi J Test and Msprct Fimsked ^rCs Test mm - j S**m ■»* I Maintain. Alterations . T»,t amd ta^eeC Ftmished Ft »dm* fh REDUCTION RATIO 12:1 ^ .'^A '\: CJl 3 3 O > IS o ::^ ID S t/) Z X OPQ ^ ^ N C/) N) U> -pi. cn ■^-< OOM O •f-7 3 3 > W o m (DO CO- , ^ o O C/5 X < N X M o 3 3 Ai^ > Ul J^/ ^i^. a? s 3 3 O Ml ft bo a 00 b Cn 1.0 mm 1.5 mm 2.0 mm ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghi|klmnopqrstuvwxyz 1 234667890 ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyzl234567890 ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 1234567890 2.5 mm ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 1234567890 V *< ^^ ."^ txy « 5' >?r =^ ^O ?* ¥p ^^ # "^ '^ 4^ ^\}< 6^' r^' <- ^5^ fp f* C€^^^ ^^ ^o fp ^ m o D ■o m -o > C CO I Ti ^ m O m .A* ^^ ^^^A '/M^ ^'4^I^#. IV "^ /Mr <^ «. ^^ « W^ 3 3 o 3 3 I II If ^ li 3i 3 r- i| 5^c *i< *--♦ 5;^ ^-< ■fik^ r si ^-< aorsi 8 Fid. 21. ORrjANIZATfON CT.ARSIFICATION TAPJ.R JmAMi [ 1 PRODUCING DlVI3tON_^ PRODUCTION MANAGER PLANNING mz yim -C 790(/TE 6t£QVtPM£NT FOIf PRODUCTION y MEN J Maste r Me ch a nic, Dra/tsmen^ Time Study Observer^ Ane.lj/si5 CUrk, Stenographers . DUTiaS ] i Pourer Trans- Toot Design and Con, traction^ Specify Ptrishable Tool - 8^ Supplies , Prepare Tool Lists, \ Tiepcur Tools A Stor4 Select Machines ie Aifer, Maintain Belts tHocA missiojt, Maintain Machine Tin^ Burdens Specify Form St Si^e 4 ^Materials, Tfoute Pattern Orders i\Follour up Test Castings $( Lead^f*roofs, Prepare Route Sheets Assemblies, Decide on Parts Grou^ bliest Prepare AssemUy Ch irts. Prepare Time Study Prepare Instruction: Decide T^atestc Set, Plan Path & Stationi] for Production of Parts Ek AssernUtoa. \SCHEDULES\ for Parts 4 '7tp forAssem- Analysis^ Zards, ■ 1 MEN \ Prodaction Manager, Assistant Production Manager, Manufacturing Order Clerks, Progress ClerM, T^pars Tigress Charts, Prepare Tape from General ScheduU for Control Board (irhlchskoiffs each Element of Tfoute Dltrision, Work except J^ateSettiny, Set Schedule for Each Elernent, Despatch ant/ Delaged Parts, flecord Attcinment of the Producing Ditrision loitk Tfespect to Schedule * Despatch,, Displau a Perpetual Inaerttory of Viork ik Process and Parts in Finlsh-'Store s, DeterTnina Lot Sijes and Erect Control Boards, Write and Date Maniifaeturing Orders Write and Date Jo6 Cetrds Store- Issues, Move Tickets and Tags, Open & Date Assentbiy Charts, Date Pattern Orders, Date Tool Orders, Set Maximums & Minimums, Re^uisitioTv Unclassified Stores, BUI LOINS A employX ^ I ■ H 'men n Works /tfanczgcr, Prodaction Manager, Sup erintcnds ?i t. Chief Miilujright, MilLisrights, Electricians, Janitors, Watchmen, UtiUtyMen. Poorer Plcnt En^inacr^ ForemcTV. H DUTIES I Plan ' Obtain Architect's Specifi- cations and 3uild Baildihys a-neC Grounds, Produce Light, Heat k Poufer far Bail dings and Provide Fire Tyo" tecticn. Ventilation S^ Sanitation, Maintain Fire Department, Equip- ment and Hospital, Alter 4 'Repair Buildings * Grounds and Maintain Order 8t ClearUi— ness, Besi^Ti and Proiride all Building Eouipment, maintain and /Repair, Twice BuUdinijs 8^ Grounds. rr . - i MEN \ Emplof/m ent Itfanager^ FrCdiSction Manayer, Supsrintendent , AssistantSuperinteyident, Foreniojv, T^iiceice, tntaraieur and J^ecord all AppUeants for Hourly La6 or. Fill Vacancies, indorse aU Appli- cants for Discharge, Pass on Tfates, Maintain IWorkmen's Time and Earning Tfecord, ClcLSsify Workm&ns Qualifications^ Tfeceiae and Account for Tool Checks urhen Workmen Leatre Em- ploy. \ DESPATCH i I /y/£r/ I Assistant Production Mamger, Chief Despatch Clerk, Tickler Clerk, TtouZe, File and filacAin e Wack Clerks, Mail Boy- M£N [dut/es_J Open Tioute Sheets and Post at Tifne of £ach Event, Delitrcr Moac Tickets, Store fssmes and Tags tc Store Sectcon,^ Ifeceiue Material from Stores, Check tk Date Stores hsue ct^zd Moee Tickets, Deliver Itfoa-e Tickets tc Trans- portation Section^ File Job Cards in Triplicate In, Machine Tracks in Order ofSch^ dale Date, DelioerJob Card Coupons to Foremen,, Date. Stamp ^ Delicer Job Cards to Workmert in Order of SckedtUe fieeeive Job Cards from. Workmen, and Date Stamp, Deliaer Inspection. Coupons to In- spectors, Saperirise Attendance Job Card Kachs, T^eceitre and Account for Lates and Absences, Report Idle Machines -or Under f^epair to Tfouting Section, Carryall MaiL. Ctf ■S3'. t$emn.s P tn»ms. MANUFACrumNG CTfOU WOnnS trtANAGEH XJCIN6 DlVl>5!ON_^ AUCTION MANAOm 1 \ XET^ECuriViT^ \jp striate nde nt , :}i.r.tantSuperittte)ident^ Xor&niari'. iiceioe, /ntaraiaw anU y^eeorct all ''CfUeants for Hourly Labor, ill Vacancies, Endorse all Appli- ijtts for Discharge, \c.ss on. Tiates, ViZiTztaln \NorMm.e.7i's Time and. ytrruTi^ ffeccrd, Utzssif^ Y/crkmans QuaUficatlons^ ^eceioe and Account 'for Tool \ hecks iifken Work men Leaae £m.- \L£SPATCH I I \FROmJCE\ MEN i Assistant Production Manager, Chief Despatch. Clerk, Tickler Clerk, Haute, File and Machine J^acfi ClerkSt Matt Bat/- — V^i^Ti£S \ Op*n Tfcute Sheets and. Post at Time of Each £trent, Deliver Moae Tickets, Stqre Issues and Togs to Store Section,, Jfeceiue Material from. Stores, Check A Date Stores /sstce and Movorker is practically never called upon for an explana- tion as to why this or that did not happen, except in a case where a worker has failed to accomplish those things which are both for his best interests and those of the management. When the little particles which do sift through the managerial screen are again worked over, there will be none left unconsidered. In the best managerial plan it is to be expected that some unob- served conditions will exist, and it was not until we QHANGES WHICH HAVE AFFECTED THE MEN 141 had developed our close relations to our workers through our rating plan that we were able to bring them practically to the 100 per cent, basis. Since intimate relationships have been established with the men, investigations are maintained, corrections striven for and adjustments brought about, whenever possi- ble, until each legitimately dissatisfied worker is con- vinced that any departmental conditions affecting him has been settled to his best interests. In every investi- gation, it may be added, the management has profited in every particular as has the worker. The manage- ment assumes its responsibilities and the workman assumes his. The plan of dual responsibility under old methods showed the usual weaknesses of indecisions in emer- gency, lack of correction for faults due to uncertain responsibilities, and distrust due to lack of knowledge. Opinion was pitted against opinion, and a general feel- ing of indefiniteness permeated the factory atmosphere. Dates called for by the management were not kept by the foreman, primarily because the time duration of events were uncertain and irregular. Material short- ages were frequent ; tools were unsuitable and lacking ; machines were not suited to the purpose and in poor repair; tools or machines were not standardized, and work could not be rapidly exchanged from one to an- other. Shortages of parts were constant and serious, causing a very high percentage of preparation in oper- ating time; through this inefficiency a high peak of workman effort resulted. The change in number of employees was frequent. A large percentage of em- ployees were poorly trained and irregular in atten- dance. Under the present F-^stem of management: single 142 THE TAYLOR SYSTEM l| ^ ! rosponsibility has brought rapid decision; faults are few, and causes are exactly determined; there is no indefiniteness with respect to any element of effort in the plant; dates planned for are almost exactly met in a large percentage of events, for if failure to keep dates is imminent, all available help can be concen- trated at once on the weakness to make a rapid correc- tion. Material shortages are small and infrequent, and parts shortages are also infrequent and never serious ; while tools and machines are kept in first-class condi- tion and are especially selected for the required task. The percentage of operating to preparing time is high and practically constant. Employees are much bettor trained and show less avoidable absence ; and as there is practically no peak load of effort, there is conse- quently little change in numbers of employees. Kates of earning show a marked increase, while cost of com- parative product shows a marked decrease. Time study has been of great value in arriving at these results, particularly in the question of dates, where it has proved even more useful than it has in application of working costs. As typical of the change in conditions, I quote from a communication of September, 1916, by our Purchas- ing Agent, which is characteristic: "Having had over twelve years of experience in buy- ing for the H. H. Franklin Mfg. Company, the writer has naturally seen some inside development in auto- mobile manufacture. In the early days, and in fact even up to a few years ago, it was not an uncommon sight to see the whole purchasing staff in the office at nights for two or three hours' work, working not because business was so good, nor necessarily because it was so bad either, but largely because we did not CHANGES WHICH HAVE AFFECTED THE MEN 143 know just what materials we wanted or when we wanted them. "Our scheme for requisitioning and buying had al- ways been crude and largely represented guess-work. That is, when a requisition was issued we were not always sure just what spoilage or other loss we might experience, and consequently it often happened that we had too little stock or material to finish the job, or perhaps we had altogether too much. "Furthermore, we had carried on no systematic time study and therefore we did not always know, in fact, we very seldom actually knew, just when the material would be wanted for the next batch of orders. In a great many cases this all meant long distance telephone calls, telegraphic messages, and perhaps someone was sent to stay with the source of supply until the rush shipment could be made, and then came enormous ex- press charges. "But worse than these conditions, we were not in- frequently held up seriously in production, which meant the laying off of men, loss of organization, and no finished cars, then a wail from the sales depart- ment and dealers, to say nothing about the cry from the treasurer's office because there were not enough receipts to pay the bills. "Then, on the other hand^ we often received mate- rials considerably in advance of our needs, which meant another cry from the treasurer's office and stock keep- ers because of too much stock and of too heavy an in- vestment. You would be amazed, too, if you were made familiar with some of the usual large manufacturers' losses through surplus or 'dead stock' accounts. "The purchasing department always 'caught it,* both coming and going, and those were the days we 11 144 THE TAYLOR SYSTEM ! I really worked — acted first, then analyzed, then tried to adjust. "All of these conditions caused an enormous cost in overhead and production, but of course the consumer was expected to pay all the costs and offer no criti- cism. "To-day, these conditions are changed. We hardly ever cancel or hold up an order now, whereas we used to spend as much time cancelling or holding up or- ders or changing specifications as was spent in issuing the original specifications. Our sources of supply would corroborate this statement. "We issued about 20,000 orders last year and will probably place from 22,000 to 23,000 this year. Our purchases are easily ten times what they used to be, and yet less effort is expended in this department for meeting the needs of the works. "It is only fair to state that when the Taylor System was first being studied years ago, we did not become particularly enthused, but it was not long before we could easily appreciate that a future for the Franklin Company was in sight. "Before any requisitions are delivered to this de- partment, the requirements are carefully analyzed so tliat deliveries may be arranged early enough and yet not too early. Notwithstanding our materially in- creased production, our stores investment is lower than ever before. "This department keeps the manufacturing depart- ment informed at all times concerning market condi- tions, recommending purchases on account of delivery conditions such as now confront us, and keeping them informed regarding price fluctuations. "We advise them, too, regarding the length of time CHANGES WHICH HAVE AFFECTED THE MEN 145 desired for obtaining materials ; always itemizing, be- cause these conditions, as all will readily appreciate, require frequent changes. This enables the manufac- turing department to chart their requirements, and leaves little or no excuse for late specifications and sub- sequent tardy deliveries. "Furthermore, we now have an accurate and earlier line-up of costs. We used to price parts after the materials had been delivered to us. Now we price eas- ily 95 per cent, of our orders when they are placed. "Our accounting department, as well as our produc- tion department, is given copies of all orders, and is therefore always in possession of figures showing our obligations and costs for all purchases. "Naturally, it is necessary to have some sort of fol- low-up system to know that specifications are properly cared for, but this is easily looked after by reviewing a small block of orders each day, and completing a can- vass of all orders at least once each week." Since the personnel of the organization which is now carrying on our managerial work is practically as be- fore Mr. Earth's first visit in 1908, and since improve- ments in practically every direction have been marked, I believe that the chief cause which led to it is our change of attitude toward the problem gained through Taylor principles for the carrying on of the manufac- turing effort. The changes came gradually: First, better stores — receiving, storage and accounting; sec- ond, better classification of product, tools, and meth- ods; third, better controlling plans; fourth, adoption of time studies and rate standardization; fifth, new machines and equipment. Each of these changes oc- curred at different stages, and product costs which were checked against each of the stages show the rela- ! ilMl t I t ■ h 14iB THE TAYLOR SYSTEM tive effect. In none was the change more pronounced than that of better control. This was to be expected, since the control was merely a co-ordination of all of the others. We are obliged to conclude that the Taylor System in Franklin Management has been successful in reach- ing useful ends, which it would appear could not be attained without it; that instead of substituting for executive ability, it depends greatly upon this for its success. It does not in any sense eradicate the human element, but brings forth the very best that is in men or women subject to its influences. It is very impor- tant that form or method be eliminated as fundamental for Scientific Management, for it is only through a scientific study of the problem to be solved that the cor- rect solution will be indicated. Chapter X THE EESULTS GRAPHICALLY DEPICTED^ AN analytical review of the results attained under the Taylor System of Management at the Frank- lin plant, during the five years it has been in effective operation, shows a number of desirable gains. The organization has grown and apparently prospered, while at the same time the workers have been mate- rially benefited. A spirit of cooperation and mutual respect permeates the shops. Capital and Labor seem to have buried the hatchet, as is evidenced by the free- dom from all labor troubles. The workers appear con- tented, energetic and desirous of increasing their knowledge and efficiency, while the organization shows a firm and healthy development. The growth and activities of the industry are graph- ically shown on Chart I, which depicts not only the increased production of cars month by month, but also records the number of workers employed — from the middle of 1908, when the introduction of Scientific Management was first taken under advisement, until the summer of 1917. The increase in the monthly pro- duction of cars might not alone indicate the marked and continuous growth which has been made by the organization, but when the proportional increase in the number of workers employed is taken into considera- tion there can remain no question as to the expansion of the business. It will be noted that the lines depict- ing production and employment are quite similar in »By Reginald Trautschold. 147 148 THE TAYLOR SYSTEM their general trend ; that is, when many cars were pro- duced a corresponding large number of workers were employed. Scientific Management was practically applied in the Franklin plant July, 1912, and it is quite apparent that both production and employment have been much more regular since that date than prior thereto. The smooth, broken line curves represent mean values and estab- lish the general trend of the development. Here again is to be noted a matter of considerable interest. There is a marked change in the directions of the curves de- picting mean values in July, 1916 — in fact, there are two sets of such curves intersecting on the ordinate of that date. This indicates the change in variety of prod- uct and the commencement of new activity on a much more intensive scale. At times, prior and subsequent to July, 1916, production exceeded the mean and at other times did not equal such value, but the general growth followed closely the smooth accelerating curves. Prior to 1912, the jagged production line shows plainly the periodical, seasonal activity, usually commencing with July or August of a year, sometimes a little later, and extending to the following May or June. This was one of the peculiarities of the business at that time. Annually, production had to be built up virtually from the ground, only seriously to decrease some eight or ten months later, the crest of productivity usually com- ing in the spring of the year. This occurred year after year — an example of an industry based on repeat or- ders for few or many pieces at periodic intervals — one of the most difficult industries to conduct in an efficient and economical manner. After July, 1912, un- der the new-style management, while the annual peri- ods of reduced production are still apparent, they are niAllT I. CAlt TRODUCTIOX AND NUMDKR OF WORKERS 1908-> < 1909 MONTHLY RECORDS THE RESULTS GRAPHICALLY DEPICTED 149 by no means as marked, nor do the crests of produc- tion form such decided peaks. Through Scientific Management, the industry was converted into one in which, though the repeat orders for few or many pieces still remained at more or less regular intervals, production showed no such accentuated variations as before, approaching, in fact, a condition of accelerating continuous activity. The employment of labor (num- ber of workers employed) closely followed the same trend. This conversion of an industry from one of more or less intermittent operation to one of much more continuous activity is one of the most striking and gratifying of the results attained. The graphs also reflect plainly the very radical change in product which occurred in 1916. The drop in productivity, reaching a low level in July of that year, marks the introduction of a complete new model of automobile, all previous work, tools and product be- ing obsoleted at about that time. The condition oc- curring then, as shown by the production line, was very similar to that which periodically took place be- fore the introduction of Scientific Management, and may be considered as marking the wind-up one one business and the beginning of another. While the pro- duction of the new model was picking up, it is quite evident that the number of men employed considerably exceeded the number which would have been required had the product continued to be similar to that brought out between July, 1912, and July, 1916. The regain in productivity was rapid and marked, for at the expira- tion of but six months output was increasing at a con- siderably faster rate than before the change in model. Employment, likewise, rapidly approached the indi- cated normal for the production, as the workers quickly 150 THE TAYLOR SYSTEM mastered the intricacies of the new operations. Scien- tific Management made possible the closing-up of a well-organized and efBciently conducted business and the building-up of a new and much more extensive one, employing a much larger force of workers, entailing new methods and operations, intensive training of workmen and a heavy investment in tools, fixtures and machines, all within a period of a few months. A rec- ord which is quite unique in the rapidity with which the changes were made and efficiency of the production maintained. Chart II depicts the average hourly wage paid thq workers from 1908 to 1917, and here again the steady- ing influence and regularity of increase is much more marked under Scientific Management than before. The w^orkers had benefitted through increased wages prior to 1912, but the mean increase had not been marked and the irregularity of the wage line indicates no definiteness in trend. Increases in wages were ap- parently abrupt in the early days and were frequently followed by almost as great decreases. During the lat- ter part of 1911 and the first few months of 1912 there had been a very decided increase in the average wage, followed by a quite appreciable drop, which reached the low point in July, 1912. After this date, under Sci- entific Management, the average wage received by the workers followed a regular rate of increase very much more closely, until the advent of the new variety of product, July, 1916. With the introduction of this radically new model, with new process of manufacture, etc., a considerable drop in average wage is indicated. This is but natural and should be anticipated, for the new men — ^many additional hands were taken on dur- ing this period — on new processes, etc., could not be as \ CHART II. AVKRAGK IIOUniA' RATE OP PAY o I q: UJ m h- z u o q: <--^l9!4 1915^ — > UJ «0 MONTHLY RECORDS THE RESULTS GRAPHICALLY DEPICTED 151 skillful as the trained men working on the production of the older and more familiar variety of product However, the drop in average wage was of but short duration, and as the men became skilled in their work their average wages increased rapidly, and within a period of a year were fully as high as could have been expected and hoped for under former conditions. Though there were periods in which the average wage seems to have been somewhat abnormal, and during oth- ers the average wage received by the workers was be- low the mean values shown by the smooth curves, the general drift of the wage curves shows a substantial and steadily accelerated increase in average wage, broken only by the drop of July, 1916. This result, attained under and by virtue of Scientific Management, is naturally that in which the workers are most inter- ested, but any such increase in average wage— an in- crease of 60 per cent, in five years— would be quite impossible of realization if it were not for the fact that the workers became more and more efficient nnder the new management. This increase in the efficiency of the men is depicted on Chart III, which shows the decrease in the number of hours required for the production of a car. The smooth, broken line curves indicate the trend of reduc- tion in the number of producing hours and draws atten- tion to two important points: first, the very marked reduction in the number of hours required to produce a car immediately following the introduction of Sci- entific Management ; and, second, in the latter half of 1916 and the beginning of 1917, the decreased relative efficiency of the workers, due to the fact that they had not yet attained the same degree of proficiency in opera- tions on the new model car as had been developed on 3SV3yONI 39VM 39V3dD3a «noH-9NDnaoad o tn < 5 n i 4 D o 0) o o c > > V, // \ f.' , \ // \N // \ V r ' \ \ i \ t \ ^ f / k \ / / V — \ f \ \ J I J % ^ -_ o ■ZT/ fii n ^ /, ' 1 ~t •— Vi Of ' ■/ • ■/ V .... > > > / V / ^ i \ N / \ \ 11 \ Y \ 1 > A { tl \ 11 K \ 1 ft ■ \ / T(j \ L 7 \ f. .0 \ f^ ■V \ A. )t ■/ f" nf o if ^\ /i,?> t\ .-jV_ f TT^ ^A ?^L / J A / 1 % ^ V /y A IJ A r \ f \ ^^^ ' \ ./^ > \ s^ / \ X s/ I A. I / / I ' / 1 / / 1 / I 1 f 1 1 > / 1 ^ / 1 / / 1 / __ _/ t^ I <0 in Q (J) en X r o 0) (J) o o o O o o o o o Ainr 1N3D »3d 152 O H en o < IS H 55 O O H PS THE RESULTS GRAPHICALLY DEPICTED 153 the more familiar types tli rough 1914 and 1915. This decrease in efficiency was but temporary, however, as evidenced by the fact that the broken line curve depict- ing the trend of reduction since July, 1916, rapidly approaches the dotted line continuation of the trend curve prior to that date. Another interesting point brought out is that the various peaks on the actual pro- ducing-hour line invariably mark periods of reduced productivity, showing that the best results are obtain- able when the shops are busily engaged in production. The smooth wage curves shown on Chart III are similar to the broken line w^age curves on Chart II — the scale differs, that is all — and it will be observed that there is a strong resemblance between these curves and the smooth, broken line producing-hour curves, indicating that average wages increased at very nearly the same rate as did the efficiency of the workers, measured by the decrease in the number of producing hours taken to complete a car. How the organization can pay the increased wages on account of the decreased time required for produc- tion is shown by Chart IV. This latter illustration shows the general decrease in production cost per car made possible through the increased efficiency of the workers under the new management, with its improved methods, etc. The cost curves are not dissimilar from the producing-hour curves, the peaks occurring, as be- fore, in periods of reduced productivity. The very marked increase in cost of car in 1916, when all former parts were obsoleted and a brand new model con- structed, with new jigs and fixtures, new machinery and changed operations, is very apparent. This change in product represented a very considerable investment on the part of the organization, during which there was 1N30 H26 < i ?■ n o s o o "^ 1 t It 0> It! J « 1 1 ^ ^ M f ^ / 9 **■ i lZT -*! — -- t 1 *o -^=: -J- -.>. rt f !• y ' ^/^i ■^ ^ 1 i» ^ T ^ a 1 -/I t ^ ^/ _rf x^ ^ / UJ ^ y V, / c i ^^ C* / / ' / / / / 1 /. \ ' J \ ■ J \ f / y ^ ^^ r c* ^, ^^ ^_ Ainr O o a oc o o a: z o s s s J.K3D d3 ! I 158 THE TAYLOR SYSTEM investment by the company in the way of expansion, a radical change in the product manufactured, or a marked increase in the cost of materials, created by an unexpected heavy foreign demand or intensive and prolonged manipulation. The effect of such radical alterations in normal conditions would simply raise or lower the value of the "equity ratio," which would then remain fairly constant while the new conditions existed. There is one other economic consideration which deserves mention before investigating the position of the production management of the H. H. Franklin Manufacturing Company from the viewpoint of equity in the division of "benefit," and that is the effect of an increased investment on the part of either the company or the workers. In any cooperative industry, such as a manufacturing enterprise conducted on equitable lines, an increase in the investment of either Capital or Labor, whether it be for the purpose of increasing production, enlarging the field of operation or tiding over a critical period, will benefit the industry as a whole — the party not making the investment as well as the party making it. The party which does not make the investment, risking nothing, is then benefited to a greater extent than the party making the actual invest- ment. Whenever the equity ratio C:L is increased, then, the workers are benefited to a greater extent than is the manufacturer, and when the ratio C:L is de- creased in value, the manufacturer derives the greater benefit. Chart V illustrates the percentages of such monthly ratios, calculated from the actual values given on Charts II, III and IV. The individual monthly ratios from July, 1912, to April, 1916 — a period in which there was no radical change in product — differ but slightly o O to XKI3D did O o <5> O o p p ^^" ^~~ ■^^ ^~ ''^~" '/ZV/V/AyyX/A y// y/v// ^ — y/^ '^M/Az/AyAyy^^ 44 77, K^// V// '<4^ Y/ a,„ W/^yA^A % !^ a: yY' y/' y/6 YJ' 2^ 'J-^ ^ >> ^^ nfT^ •XiU «ss ■7 T^ S5, rw ^ ^^ ^ S >^ ^SSn\> ss\ ^^\1\\\\\^ /3/i^/ ft £ ^^ /> ^ ^>^> >sN ^/6/ ^/^r ^ 45^ \ ^^ ^ 1 1 ^-* \ 3^ 1 } Y ■' \ — _ff ""■ ^ 4 ■^B—a \^ \<: & 1 — ^ ^ V ■""" \ ^\\ ^ ^ Ns 1 k /Wl ■^"^ ^y jj / F ' ■ J^ ^ s^ V \ v^ "T 1 .. 1, ^ zi 1 __ i (J> <5> tt: o u u QC ' X z o ro O o o o XN3D d3d 159 O to Ainr H n &. o o 1-4 OS > < O ^^ H O o 13 160 THE TAYLOR SYSTEM from the 100 per cent, taken as a basis of comparison. During this period the workers were, as a rule, favored slightly more than the organization, but the variation, one way or the other, was so slight that the division of the benefits between the organization (management) and workers is really remarkable in its uniformity. The fairness of the division on the workers' side is evi- denced unquestionably by the freedom from all labor trouble since the introduction of Scientific Management and by the steady increase in average wage, while on the part of the management it is as strongly shown by the steady increase in volume of business. Con- tentment on the part of the worker and growth on the part of the industry could occur simultaneously only if the benefits realized were equitably divided. In 1916, however, it will be seen that there was a very sharp and decided peak in the "benefit" line at the time of the radical change in product, indicating that the workers benefited far more than did the or- ganization. This could not be avoided, for while such reorganization was being made it would have been manifestly unfair to reduce the wages paid to the work- ers sufficiently to enable the organization to make the extensive changes without a heavy investment. To have so evaded this outlay, had it been possible, would have been a case of exploiting the workers in the in- terests of the management. This would have been con- trary to the principles of Scientific Management and to justice. However, having made the heavy investment, the organization was entitled to all such benefits as it could legitimately claim. It is interesting to note, therefore, that the Franklin Company did actually se- cure such legitimate benefits, as evidenced by the bene- fit line of Chart V falling below the 100 per cent, equity THE RESULTS GRAPHICALLY DEPICTED 161 line after the period of heavy investment in 1916. Upon reimbursement to the organization for its heavy cash investment entailed in the very material expansion made in 1916 by the legitimately increased benefits depicted by the low value of the benefit line, the division of benefit again approaches an "equity ratio," but one which, if the expansion has been a wise one, is considerably below the former 100 per cent, equity line. This alteration in equity ratio is the result of a reduced proportional investment on the part of the organization made possible through increased manu- facturing facilities, an increased output, and the em- ployment of more workers. In other words, in the larger organization the workers control a proportion- ally increased interest in the business, so that the equity ratio C:L is reduced. One of the strongest endorsements of Taylor Sys- tem in Franklin Management is that the radical reor- ganization of the business, whereby the output of the plant was increased some threefold, was carried on while and during the recognition of the workers' indus- try in the way of a continually increasing average wage. Except for the slight and temporary drop in average wage coincident with the much more marked increased cost of production in 1916, the workers have received higher and higher wages in recognition of their increasing industry and growing efficiency. These rewards were made possible even during the period of reorganization by the new system of management, and they continued through the period in which the organi- zation reaped the somewhat increased benefits. The five charts presented illustrate in a striking man- ner the benefits which have accrued to both the organi- zation and the workers. Both branches of the industry 162 THE TAYLOR SYSTEM have gained much under the Taylor System as applied to the Franklin shops. The benefits have been mutual — a flourishing and healthy industry has been built up on the principle of justice and equity — and possibly one of the most remarkable developments to this end has been the derivation of the empirical formula by which the hourly rate paid the workers is established. When it is remembered that the increased cost of liv- ing, the value of greater and more extensive knowledge on the part of the worker, his loyalty, as evidenced by his years of. continuous service, his efficiency, recog- nized by the payment of premiums, penalties imposed for spoiled work, absences and tardiness in reporting for work, etc., etc., have all been taken into considera- tion and valued in establishing the base rate of pay for each worker, then some idea of the efficiency and re- markable resourcefulness of the Taylor System in Franklin Management may be realized. Doctor Taylor's four fundamental principles of Scientific Management have really been applied throughout the whole Franklin organization. The sci- ence is most highly developed in the factory, as is naturally the principle of training and selection of workmen, but the cooperative features and the equitable division of work and responsibility, without which neither the science nor trained men alone could accom- plish the desired results, are found in all departments of the organization, from the highest to the lowest. No small credit for the wonderful results obtained is due to the hearty cooperation and loyal backing of the ex- ecutive heads, the unqualified support of the financial division of the Company, the cooperation of the efficient sales department and the splendid spirit which per- meates all branches. APPENDIXES Wage Bates in the Franklin Shops PAGE 167 Examples in Application of Scientific LIanage- MENX 183 Appendix I WAGE RATES IN THE FRANKLIN SHOPS PAGE Fundamental Base Rate 169 Relative Cost of Living 172 Comparative Statement of Cost 174 Recalculation of a Worker's Rating 176 Statement by Employees 180 I M FUNDAMENTAL BASE RATE Process Class of Work A Spindle 1 Mach. B Lathe 2 1 2 3 C Milling 1 Mach. 2 , D Automatics a . Semi- b . Automatics E Hand Screw 1. 2. F Precision 1 . Grinding 2. 3. G Gear Cutters H Miscella- neous 2. 3 4. 1. 2. 3. 4. 5. Type and Make of Machine DriUs Single gang, Multiple, radial Tapping machine Engine Lathe Bore, turn, face, thread cutting Lo-Swing Turret Fox or Gisholt Jones and Lamson Power Hand BAR WORK 1 . Cleveland 2. Acme 3. Gridley 4 . Brown & Sharpe Potter & Johnson Faye Warner & Swasey Pratt & Whitney EXTERNAL Landis Norton Brown & Sharpe Universal INTERNAL Heald Bryant SURFACE Heald Blanchard Diamond Hobbers Barber & Coleman Gould & Eberhart Shapers Fellows Millers Brown & Sharpe Generators Gleason Planer or Shaper Profiler Boring Mills a. Horizontal b. Vertical Punch Press Use Micrometers and read blue prints 169 Process Total Base Rate Credits {N) Credits 1905 {B) H H K H H H H IH IH .20 .25 IH .25 .25 H .20 .25 .225 .225 .25 .25 .25 .25 .25 .225 I 11 fif i'ii 170 WAGE RATES IN THE FRANKLIN SHOPS Process Class of Work A Master Trimmer. Design and pattern drafting Pattern making and lay-out Cut and make up fittings for experimental jobs Repair work, bodies, tops, slip covers Requires all around man B Stock Cutter. Inspect and select stock Lay-out for economy Accuracy — No spoilage Speed — Fast work Leather cutter Electric machine cutter Buckram cutter C Body Trimmer. Closed car trim Open body trim Cushion build • stuff bv hand Cushion build stuflf by press Door trim Sewing machine Paste Inspect and select stock D Seat Cover. Fit and adjust Sewing machine Lay-out and cut stock Seat cover maker Seat cover helper Sewing machine E Top Maker. Covering and fitting curtains, etc. Setting up bows and covering bows Sewing machine Lay-out and cut stock Build top complete Cover bows and set-up Sewing Machine Process Credits (AT) Total Credits Base Rate 1905 {B) I Ya Va H H H H H (1) (1) (1) (1) .26 (1) .26 .26 .26 .30 .26 .2.5 .22 .20 .19 .20 .258 .22 .19 .26 .19 .19 FUNDAMENTAL BASE RATE 171 Work and Department. (No Process Credits Yet Established.) Case Hardening. Heat treaters Brazer General labor Tool Department. Toolmakers Oilers and beltmen Wood Shop. Bench men Machine men Paint Shop. Air brush Finishers Putty and sand Stripers Paint mixers Monogram men Final Assembly. Sub-assembly Pattern. Metal Wood Repair Department. Repairmen Wash room attendants Heat and Power. Day fireman Night fireman Inspection. , Finished parts Raw material Millwright. Millwrights Millwrights' helpers Electricians Yard men Gate men Night watchmen Stores. Raw stock Finished stock First Aid. Janitors Plumbers Stock Movers. Move men Elevator men Base Rate 1905 (B) .225 .245 .175 .325 .20 .22 .24 .235 .26 .15 .25 .20 .30 .23 .275 .30 .275 .21 .165 .20 .27 .275 .235 .185 .25 .15 .15 .125 .175 .175 .15 .20 .165 .15 Mi J ,1 ! If EELATIVE COST OF LIVING In order to determine the relative cost of living since 1905. the four principal elements — food, clothing, fuel, and shelter — were taken into consideration. The territory involved was the locality contiguous to the plant of the H. H. Franklin Manufacturing Co., Syracuse, N. Y., in which territory the larger part of the workers resided. After considerable study and tabulation the aver- age workingman's. family was taken as consisting of himself, his wife, and three children — two boys, aged fifteen and nine respectively, and one girl, aged seven. The menu of a large number of families was aver- aged for three meals each day at four periods of the year — spring, summer, fall, and winter. A study was made of the clothing each of these fam- ilies desired for proper warmth, protection, and con- sistent appearance. The fuel considerations were those for warming the dwelling in which they lived and also for cooking their food. The typical home was considered, its assessed valua- tion, and the annual taxation, assuming that the work- ingman owns his own home. This taxation was consid- ered as the index of rentals. The investigations were made to a great degree of thoroughness and accuracy. All possible factors af- fecting the cost of living were investigated, the fol- lowing summary was developed, and the percentage of increase in costs for the years 1915 and 1916 over that of 1905 was determined. 172 ^ RELATIVE COST OF LIVING 173 ■ t 1 's • 1-H 6) Q s OS • 1 3 n o Ih u-> h (D ,h* .c s i 1-H bO s •53 ;3 -< OQ >< < o 1 § OQ g s -^ s "^ >. ^ i ? 1 ^ 5 03 *»-i OQ ^ ^ ^ ^ % , ^ S ^ K% o a QQ 2 M M -^ g«2 e 2 u ^2 ^ ^ i ^-^ 03 3 ^ ^ s ^u OiOi 13 < <1 . cs 1 • ■ • OS i Oi • CO Ci 1-4 O o 3J c ) CC > cs 1 c« - • • 1^ ^ CO t^ : ^ cc (O . < r^ *H "ts •■a o o ^ O^ 2 .a J o 'ad a o O 0^ 0) In ©o© s • o o©o ^^ ■CO © 3i C rt • • • • • S.S E ?° 90 73 ^SBBJsJkMM »C »0 CO o o o i* ■^ loO'^ «o 00 oeo25c^po^ .© CO CO"-! CO -*aCp i O 03 © ' «ocoo»o tf a o . !■ -a 03 ^ 08 "^ 13 i i" RELATIVE COST OF LIVING 175 From this table it may be seen that the increase in the cost of living since 1905 up to and including 1915, measured on the basis of the principal requirements of the typical family, was 29.8 per cent., and that since 1905 to 1916 was 46.8 per cent. It ?? CO CO CO CD O S5 a H 18 ill RECALCULATION OF A WORKER'S RATING In order to exemplify the manner in which a work- er's rating is recalculated four times a year, a typical case, that of Mr. H. B., Clock No. 508, in the Machine Shop Department, is given. On September 18, 1916, the Employment Superin- tendent sent to Mr. H. B. the following letter : "We are about to recalculate your rating. In check- ing your record we find it differs from your first rat- ing as follows: Fac- tor Explanation e Pa. Pd. PI. S M y C Per cent, of Your Previoua Rating Your Record for This Last Period Yours Premium earnings Absence Day work Suspended for no work. . Spoilage No. of major proc^ses. . . Years of service Conduct and cooperation 19.4 5.8 56 Std. 33.3 10 Yours 11 2 54 Std. 33.3 10 JL\M 2 2 2 2 4.5 5 4.75 5 1 1 1 1 176 RECALCULATION OF A WORKEr's RATING 177 "This decrease in premium earnings and decrease in day work offsets your decrease in absences and your increase in years of service, and will tend to lower your rate proportionately. "However, there will be no change in your rate until you have advised us of the causes which have made this change in your record and we have made com- plete investigation of the facts. "Please gather all data you have to show concern- ing the conditions which have affected your record and arrange to see me on September 20, at 9 :00 a. m." On the day specified Mr. H. B., No. 508, operating a surface grinding machine, reported : "The Time Study Department set a rate of 120 pieces per hour on my machine and it is the maximum capacity. It is impossible to run the machine at a greater capacity, as it stops when this is done. The belt is now so tight that it pulls apart at the lacing. For another thing, the Inspector that worked in con- junction with the Time Study Department did not show me the right way to do the job, consequently a major- ity of the pieces have been returned to me for correc- tion. In order to do the extra work on the pieces I have to use more time and feel that the present rate should be reset. "My job card does not show when I am on premium work and when not. Even so, I could not make pre- mium speed, as the machine is now loaded to its full capacity. Another thing, delay is caused by poor fix- tures. The magnetic chuck allows the part to whirl around and cut the wheel instead of the wheel cutting the part. This causes the redressing of the wheel, which takes from five to seven minutes each time. A fi il 178 WAGE BATES IN THE FRANKLIN SHOPS new fixture which increased the output wonderfully was furnished, but the work it turned out was not up to the Inspector's qualifications and I had to discard it. Another trouble has been lack of M-24 grinding wheels I have had to get along as best I could with two wheels for two months. The Assistant Foreman on that floor tried to locate some in the Stores Stoc-k Room but was unable to find any." [At this point the Employment Superintendent sent a man into the btores Stock Boom, who found seventeen new M-"* wheels which had been received three months earlier" 1 Furthermore" [Mr. B. continued], "my machine needs a thorough overhauling. But it is impossible to do Uus, as the machine is being worked night and day Outside of the Time Study being wrong.'^my greatest trouble IS m getting supplies and not finding out whether they are available or not and, if so, where they are located." The Employment Superintendent informed Mr H B. that he would carefully check these causes of delay and re-rate him on the result of his investigation. In accordance with that promise he made a number of investigations and found that the claims made by Mr ±i. B were substantially correct. The M-24 grindin.^ wheels had been replaced by wheels marked CM-H and a new clerk did not know of the change. On Octo- ber 8, therefore, the Employment Superintendent again summoned Mr. H. B. and was informed that repairs were being made on the machine in question. The Employment Superintendent closed the matter bv stating: •' "It is hard to estimate your rate adjustment, but since you did not report any trouble prior to our for- ■j BECALCULATION OF A WORKER S RATING 179 mer interview we are going to hold your rate at 37 cents up to December 1. You will have until then to make your record. The conditions are now very good, and you think your chances are better. If you are sat- isfied, we will keep your present rate until December 1. In the meantime, if anything should occur to hurt your rate you must notify your Foreman at once and also let me know. The sooner it is corrected the bet- ter." 1 i I i^ STATEMENTS BY EMPLOYEES To substantiate the arguments that the workers are thoroughly in accord with the method of payment that the Franklin Company has effected, the Employment Superintendent on November 1, 1916, asked some of them the question, "What changes in your habits, mode of hvmg, etc., have occurred since you have been mas- ter of your own pay?" The replies were practically similar in all cases. For brevity, two of the replies only have been settled as typical and are given here- with. Mr. K., No. 532, stated as follows : "(1) Health : Have lost a little in weight, but you know my hay-fever pulls me down every year from August to October. However, outside of that, I am feeling fine and am gaining back my weight. (2) Hygiene : More careful about my personal care. (3) Habits : I think much more than I used to about keeping physically fit for the job. (4) Food : Although my grocery bills are about the same as before, we have more luxuries and wider vari- ety of things to eat. Sometimes if company comes in, we get some ice-cream, never used to feel we could be so hospitable. (5) Clothes: No! Haven't gone in for any yet, but I am going to get some new things. I want to know I can pay cash for them. My wife has just bought some new things. 180 statements by employees 181 (6) Saving: My little old bank account is growing and it's fun to watch it. We think we are getting some- where now. (7) Pleasure: Bought a new piano, getting that paid for fast. (8) Interest in Work : It's a real pleasure to work, it's fun. We think more about our work. We get on the job a few minutes early, we stick until the horn blows, we used to take time off now and then, although never lost much, but now we think twice. Had a chance to work on the polls, but passed it up because didn't want to hurt my efficiency in any way. There was a 'good' piece of change in it, too!" Mr. B., No. 533, made the following statement: "(1) Health: I have increased a little in weight; I have felt better in the last six months than ever be- fore. (2) Hygiene: My wife needed dental work, had been put off because of the expense, she had it done lately. I paid half down in cash and could have paid it all; you know what dentists' bills are. (3) Habits : I'm more regular in my hours of sleep. Before when my wife and I went out, neither one of us thought so much about the time we turned in; now she says, come along — ^you know you want to keep fit for tomorrow, and I find I am more willing to listen. (4) Food: When we worked overtime before, we used to go over to the saloon, get a beer and a sand- wich, come back, feeling punk ; now we go to the lunch room, get some steak, etc., price 15 to 20 cents, cut out the beer and come back feeling fine. At home, also, we have more luxuries. (5) Clothes: I haven't put anything extra into clothes so far, but I'm not keen for a lot of swell duds ; iJ 182 WAGE RATES IN THE FRANKLIN SHOPS I like to see my wife well dressed and she has had a new coat this fall. (6) Saving: I bought an endowment policy re- cently; heretofore I never thought I could save it, now, although it costs me at my age $22 for a quar- ter, Pm going to be prepared for my later days. When I used to go out with only three or four dollars in my pocket and blow it all because it wasn't much ; now I spend only what will carry us through. When you have got $50 you feel like making it $100. (7) Pleasure: We seem to get more" pleasure out of life, not that we are blowing any money foolishly, but I mean we get more enjoyment out of being alive. (8) Interest in Work, Attendance, etc.: It seems more like a game than work. We took you at your word and we have gone after this for all if s worth. We are not suffering any, nor do we find any breach of our confidence in you." Mr. H. : Are you willing that I report these state- ments to the Production Manager! Mr. B.: Yes! I am! Pm willing he should know about them, for I'm certainly satisfied to have a hand in making my own rate of pay. Appendix II EXAMPLES IN APPLICATION OF SCIENTIFIC MANAGEMENT PAGE Repair Shop 190 The Small Parts Factory 199 Plant with Uniform Manufacture 208 I ii EXAMPLES IN APPLICATION OF SCIENTIFIC MANAGEMENT Three main groups of manufacturing activity for which methods of Scientific Management have proved highly efficient may be classified as Eepair Shops, Small Parts Factories and Plants with Uniform Manu- facture. Each one of these mechanical enterprises offers distinct possibilities of installing the Taylor principles — differing somewhat in application, it is true, but nevertheless the four fundamental principles expounded by Doctor Taylor. Keferring to the three broad classes of mechanical endeavor as: Enterprise No. 1 — Repair Shop; Enter- prise No. 2 — The Small Parts Factory; and Enter- prise No. 3 — Plant with Uniform Manufacture; the scope of each will be briefly outlined before describing the system of Scientific Management best suited to its individual requirements. Enterprise No. 1 — Repair Shop Chiefly for a "one line" article, such as the locomo- tive, car, or automobile, but which can be adapted with local modifications to any "jobshop" or small miscel- laneous manufactory. The fundamentals indicating this type of management are : Non-repeating orders on which a limited number of men broadly trained must do a variety of things; fixed equipment is used intermittently; time too lim- 185 H I 186 EXAMPLES OF SCIENTIFIC MANAGEMENT ited or cost excessive for pre-planning; standards of a very limited kind. Enterprise No. 2— The Small Parts Factory * Manufacturing staple articles for demand stock ; the parts not gathered together in complicated assemblies or related previous to shipment. The fundamentals indicating this type of manage- ment are: Kepeat orders of nearly uniform size, but active at irregular intervals of time, upon which (as in Enterprise No. 1) a limited number of men must do a large variety of things; fixed equipment more uniformly burdened than in Enterprise No. 1, but still much of it inactive from time to time. Due to orders repeating, pre-planning can be somewhat highly devel- oped and such costs can be absorbed on subsequent orders. A large percentage of equipment and activ- ities can be standardized. Enterprise No. 3 — Plant with Uniform Manufacture This can be typified by the continuous reproduction of staple articles in large quantities— the motor car, typesetting machines, typewriters, etc. The articles to consist of complicated assemblies made of a large variety of parts. Orders develop into pre-planned schedules which are practically recurring at uniform time intervals. Many men are required, each operat- ing steadily on a small element of the work; fixed equipment is uniformly burdened; standards com- pletely developed for all equipment and activities. The chief task in the management of this enterprise is that of co-ordination of a complex product. examples of scientific management 187 Aiiy one or all of the above enterprises may be in- cluded in the activities of one company. To prevent misconception of some words which will be repeatedly used in the continuation of this subject, we will standardize them by definition. CONTKOL — To cause all work elements to follow out a prescribed plan of action. ROUTING— To plan "where," "how," and "by whom" and in what standard time work shall be done. SCHEDULING— To plan amount of work and when each element shall start. DESPATCH— To meet the conditions of control by applying schedules to routing. Control is entirely executive. Despatching is executive, but subordinate to control. Routing and scheduling are planning, but subordi- nate to control. The persons in control are the general manager, works manager, production manager, superintendent, or other persons of similar executive position. The routing division will contain those persons who analyze facilities for doing work, and who by studying the work to be done, plan for and locate all machines, tools, and fixtures. They will prescribe the path of the work over this equipment. They will specify the operation to be performed and the standard time in which to perform each operation. They will deter- mine and establish all standards for machines and shop methods. The schedules division will contain those persons who plan for the quantity and rate of output for the product. They will specify the date to start each unit of work at each station on the route as prescribed by the routing division. The standard time required for H m '.i 188 EXAMPLES OF SCIENTIFIC MANAGEMENT u 1 elemental work at each station having been established by the routing division it is therefore needless to sched- ule a date to finish if a standard allowance time for movement of work between operations as provided has been established. The despatch division will contain all persons whose duty it is to see that orders are issued, materials se- cured, tools provided, and all movements made which will cause the schedules to be carried out. This will involve those who prepare Control Boards, route sheets, assembly charts, job cards, stores issues, tick- lers, and all similar standard forms, or paper. It will involve also the executives in direct charge of the materials, men and machines, as storekeepers, fore- men, or bosses, inspectors, millwrights, transportation men and employees. The above classification of duties differs in nearly every industry^ applying the Taylor principles of Sci- entific Management, and yet the results obtained in each uphold conclusively the value of these ideals. This fact alone should convince those who are inter- ested that Scientific Management is not a "ready-to- wear" garment, but rather a fine system of "fitting" by which industries can be greatly improved in conduct as well as in appearance, yet retain their individuality. Just as a specially designed and fitted garment will reflect the ability of its tailor, so will the result of any application of Scientific Management reflect the ability of the person or persons chiefly responsible for its installation and conduct. In the detailed statement of methods which follow we are presenting specific examples chiefly useful to illustrate the application of the Taylor principles of Scientific Management to the three broad classes of EXAMPLES OF SCIENTIFIC MANAGEMENT 189 enterprises mentioned previously — the repair shop, the small parts factory, and the plant with uniform manu- facture. The preparation of the organization and men and the establishment of essential shop practices will not be treated separately, but can be appreciated from these examples of actual practice. ,ii i lii ENTERPRISE NO. 1— THE REPAIR SHOP The conditions in this shop previous to the installa- tion of Scientific Management were as follows: The superintendent received orders from customers, either by communication or in person. The job was stud- ied more or less thoroughly by the superintendent and shop foreman, who furnished an estimate of total cost and time of delivery of the finished order. They then endeavored to fulfill the conditions of their estimate. The capabilities of the various workers, or the ac- cessibility of materials and tools for a given job were known only in a general way. The combinations of elemental operations in each job usually varied from any others, although the elements were frequently sim- ilar or exactly the same. As no detail records of ele- mental operations were maintained, each new job re- quired the personal attention of these head men to estimate the "over-all" cost and times. It then became their duty to give by word of mouth detailed instruc- tions to their workers which would cause the result to coincide with the estimates given sometimes weeks before. The superintendent and foremen were prac- tically walking encyclopedias as well as estimators, employers, instructors, disciplinarians and a thousand and one things which a supervisor is expected to be. Under the sightest pressure of work yet to be done, the estimates were hurriedly made, and usually failed by a large percentage. Customers' complaints were 190 THE REPAIR SHOP 191 common. Each complaint, however, received immedi- ate attention by a rearrangement of the workers so as to favor the latest complainant. Under this condition a large number of jobs would be in a partially completed state at the date of prom- ised delivery. Once the job was started and partially completed, since there was no record of how much had been done except in the mind of the worker, if such work stopped and was again started it required an- other "over-all" estimate with even less time than that allowed for the first to tell the customer when the job would be completed. These answers were frequently given to the customer from the time a telephone re- ceiver was taken down until it was hung up again. Several estimates given under this pressure were later tested as to their accuracy, from a study of the aver- age times taken to do the work and the allowances made for interference with the work due to lack of materials and tools, the actual average time required to prepare these estimates was from two to three hours with the estimate still an approximation. The shop charge per hour was a flat rate to all cus- tomers regardless of the training or ability of the work- ers on the job. The total labor billings for a month were frequently less than the labor cost. The differ- ence was charged into the overhead expense. It is obvious that the workers' wages were seldom increased. At times the shop would be full to overflowing with work and at other times very scarce of work, with a consequent extreme variation of the number of men employed, so that they were suspended and again em- ployed without notice. The cause of this variation was chiefly the acceptance by the superintendent of any work which came his way, and promised dates 14 192 EXAMPLES OF SCIENTIFIC MANAGEMENT of deliveries arbitrarily given, usually according to the customer's wishes rather than in a time in which the work could be actually accomplished. Good work- men soon became scarce, and even the untrained and poor w^orkers were irregular in attendance and care- less in their work. The final results of the job were high charges for poor service, usually overdue in de- livery. The method planned to overcome this condition will indicate many other weaknesses which need not be here related. THE REORGANIZATION The first change was made in the supervising meth- ods for the shop. The superintendent was freed from a great amount of clerical duty which was transferred to more efficient yet less costly assistants. This freed the superintendent for a broader view of his problem and enabled him to give intelligent action upon esti- mates. The different classes of work which could be done in this shop were then studied, grouped according to a chart showing grouping of men according to their abil- ity to perform classes of work in the shop, and stand- ardized. The arrangement of the classes of work was in the order of the ability and training of the workers, i,e,, any worker in Class A could do work in any class below him, and so on down the list. This being stand- ardized, the superintendent, foreman, or despatch boy could give out work of different classes to men out of the classes with equal facility. In case it was deemed advisable to give a man routed in a lower class of work a job routed to a higher class — i.e., a workman in G transferred to Z>, it was necessary for THE REPAIR SHOP 193 the superintendent or the foreman to approve of such transference for the one job only. If the upper trans- ference of such a worker caused him to work in a class higher than his own more that 50 per cent, of the time, he was transferred to the upper class perma- nently. Workers were then studied and encouraged to select the highest possible class in which they were reason- ably sure that they would not receive criticism for, lack of ability. They were then arranged in each class in the order of their ability and were rated and paid according to the positions which they held from the highest to the lowest in the class, and from the highest to the lowest class. In writing an order for a job, the superintendent classified his order according to these classes, and the order was immediately delivered to the planning room. The order should show the customer's name and order number, the estimated date of delivery of the finished job and a statement in paragraphs with sym- bols of each element of the job according to the stand- ard classes. The estimated operation time required to perform each of the elemental operations, with an al- lowance time added to each of the operation times, should be noted on the margin of the order, this allow- ance time being the idle time of the job after each operation. The time for the first operation is added to the second, the second to the third, the third to the fourth, etc., until the total time required for the sum of the different operation is known in work hours. With the date of delivery of the job set, each opera- tion can then be dated as to it^ time to start on a given hour and a given day. In case of change of final dates of delivery new dates for each of the elemental opera- 194 EXAMPLES OF SCIENTIFIC MANAGEMENT I* ! tions are readily set by any clerk without further esti- mating. Coincident with the starting of this plan records were maintained of the actual time taken to do these operations in the shop. Soon a large library of infor- mation was obtained, and estimates are now made from these facts rather than from opinion. The delivery of finished jobs on schedule time began to occur with marked regularity within a matter of only a few weeks after the plan was started. After the order was written, as noted previously, it was sent to the planning room. The route file clerk immediately translated and wrote the order on a route sheet. He at the same time wrote a job card for each operation and symbolized it according to the class of work called for by the^operation. The job card con- sisted of three copies; the face copy being a small coupon; the second copy an Inspector's and move ticket ; the third copy a workman's job card. The route file clerk also wrote the material stock issue for such materials as were specified in the order. He wrote the symbol and date for each operation on a long narrow schedule card which was then hung be- tween hooks on a bulletin board. The spacing of writ- ing on this card was the width of the small coupon of the job card. The coupon was punched with holes to hang on hooks, each covering a part of the schedule card on the bulletin board. When each job started, the coupon was hung on the hooks over the correspond- ing operation noted on the schedule card. Since the schedule cards, as well as the coupons, bore the date that each operation was to start, if the coupon was hung on the board over its corresponding place on the card, it was evident that the job had started. In case THE REPAIR SHOP 195 an exposed date on a schedule card was behind the date on which the board was being inspected, this card date was not covered with a coupon, and it was evident that the job was behind schedule. The board was inspected each two hours in the day and all dates behind the current date were blue pencilled if they were not cov- ered by a job coupon. A mere glance at the bulletin board indicated at once to the superintendent any jobs that were weak and behind schedule, and he could take immediate construc- tive action with the minimum of his attention. After the route sheet is written, a second copy is made on a heavy card, and the card is sent to the foreman in the shop as instructions for work. The job cards are put in boxes in despatch racks, especially arranged as follows : One box is prepared for each class of work, the bot- tom of which is divided into two compartments: one in the front for jobs that were ready to be worked upon ; one in the back for jobs written and in process, but not yet ready to be worked upon. In the cover of each box, which is raised at right angles, are thin compartments, one for each man listed in that class of work, the arrangement in the order of their ability, i,e,, the boxes are arranged and classified strictly ac- cording to the classification chart. After the route file clerk has written the job cards for a given job, they are sent to the despatch clerk, who puts the first operation job cards in the front com- partment of the box representing the class of work to which it is routed. All other cards are placed in the rear compartment of the boxes representing the classes of work to which they are routed — i.e., each order is subdivided by its job cards into the different 196 EXAMPLES OF SCIENTIFIC MANAGEMENT classes of work as standardized. When a workman IS available in any one class, having finished a previous job, he hands in his card to the despatch clerk, who notes the classification under which the workman has been working, goes to the corresponding box, takes out the first job in the box and gives it to the worker. All jobs in the front compartment of the boxes are arranged strictly according to their dates, and the job which the workman receives is obviously the one re- quiring first attention. Since this arrangement of job cards by dates is one of the fundamental elements in the despatch plans of all three enterprises, it will be essential that a complete understanding of this be grasped at this time. When the above-mentioned workman finishes the job which he has and returns for more work in his cla«s the despatch clerk may find that there is no more work there standing. In this case he would give him the first job in the next lower class in which a job was standing. If any operation is urgent— i.e., be- hind date, or a customer was waiting for a job a red "lot urgent" tag is attached to that operation, and when a man rings out in a class above that in which the card is standing he is given this urgent nob first, regardless of other work in his class or nearer to his class. ' Upon the foreman's receipt of the card copy of the route sheet, and the workman reporting to the job with his card, the foreman assists the man to start on the job, and from time to time inspects his work in process. At the completion of each operation a floor inspector makes a careful inspection. He also makes a final mspection of the complete job. THE KEPAIR SHOP 197 Tools have been highly standardized for the differ- ent classes of work, and each worker is equipped with a standard set. Special tools are accessible, as are materials from stock rooms immediately adjacent. At four o'clock each day the jobs ready to be worked on are inspected as to dates. If any are behind sched- ule, they are either marked with a "Back of Schedule" card or an "urgent" card, depending on their relative importance. The bulletin board is marked to corre- spond. Curves are plotted daily to show the number of operations behind schedule, the number of opera- tions ahead of the shop and the percentage of opera- tions of the shop which are behind schedule. These curves are posted in the superintendent's office, and are in general the regulator of the promised dates of delivery of new work. If his percentage of jobs "be- hind schedule" is very low, he will give earlier orders of deliveries on new jobs. If there are many ahead of the shop he will make later dates of delivery of new jobs. In this way, after a reasonable experience he is able to maintain a very equitable burden upon the shops. RESULTS OF REORGANIZATION The superintendent and chief estimator is never un- der a heavy pressure of executive work, and can meet customers and deal with them without interruption. He can retain their respect on account of better delivery dates of the finished jobs. His intelligence, as well as the combined intelligence of the shop, is accessible to all persons for common use, without interruption of the workers at their particular tasks. Costs are based on estimates and are practically ex- act. Customers' complaints are seldom heard. M I- f I hi 1 1 ! \ 198 EXAMPLES OF SCIENTIFIC MANAGEMENT The peak load of burden, while not entirely removed, is much improved, and the change in the burden is gradual and can be anticipated. This allows for the taking care of workers in the shop, or in outside indus- tries. The lost time due to waiting for materials and tools, and particularly for instructions to the workers, has been eliminated. Consequently the income of the shop is now profit rather than net loss. The workers have been materially benefited by this through a complete readjustment of their wages, with increases to an equitable amount. The conditions of the shop with its certainty of in- structions, regularity of orders, the lack of expression of violent opinions, have improved so materially that there is no comparison between the new and the old conditions. The workmen appreciate being told specifically what they are to do, and being free from criticism in case the instructions fail. The final result of the shop is, equitable charges for good services, generally rendered on the date due. ENTEEPEISE NO. 2— THE SMALL PARTS FACTORY Unlike Enterprise No. 1, the manufacture of single parts, or small assemblies for stock, offers an oppor- tunity for standardization due to the probability of re- curring orders. , Sources of orders for this shop are : First, the antici- pation of the engineers at the time of design as to the probability of wear or of breakage ; second, custom- ers or dealers ; and third, quick orders from the local car repair shop. Since any of these sources, or all, may furnish orders simultaneously for the same part, it is important that some central place be provided for the accumulation of individual orders, and guided by this accumulation the issue of a single order of standard size for econom- ical production to the manufacturing shop. The practical medium for this is the controlling bal- ance of stores ledger. The ledger is provided for sin- gle entries under the four following headings: First, On Order; second. On Hand; third. Apportioned; fourth. Available. As the individual orders are re- ceived they are at once entered in the column "Appor- tioned," and subtracted from the column "Available." If there is no "Available" at the time of such entry a manufacturing order is written for the standard quan- tity, which quantity is posted in the column "Available" and "On Order." The amount apportioned is then sub- tracted from the "Available" column. From this time 199 i 200 EXAMPLES OF SCIENTIFIC MANAGEMENT on if the "Available" falls below a predetermined amount, as recorded on the balance sheet, a new order is placed in the same manner. After the order has been in process and is closed by receipt of material into finished stock, the amount of parts is added to the "On Hand" column and subtracted from "On Order" col- umn. When shipment is made, amount is subtracted from "Apportioned" column and "On Hand" column. This completes the ledger transaction. The manufacturing order is written in three copies and is sent over a predetermined routing as standard- ized and printed on the order. The date to finish is entered on the order. The order path is as follows : First, the routing department for preparation of route sheet, tools, patterns, time studies; second, a requisi- tion of materials calling for purchase order; third, preparation of the route file; fourth, starting of the material into the shop ; fifth, closing order ; sixth, com- piling cost. When the order is received by the routing depart- ment the master mechanic prepares a route sheet which shows the different operations to be performed on the part, tools and machine for each operation, unit mate- rial and standard time for each operation. He deter- mines the standard lot size and establishes and enters the routing time for the lot from the receipt of raw material to finished stock. This latter information is used by the route file clerk to date each operation order for time due on the machine. After the unit material is specified the amount for the lot is determined and recorded on stores is- sue. The stores issue is passed over a raw stores ledger in the identical manner of the manufacturing order. THE SMALL PARTS FACTORY 201 A standard time for securing each kind of material is established by the purchasing agent. It is arranged in such classes as bar stock, forgings, aluminum cast- ings, sheet aluminum, grey iron castings, etc. The standard time specified for each article is limited by the ability of the purchasing agent regularly to bar- gain, buy and deliver to stores. A standard time is provided for the material to pass through the inspectors and into stock. To prepare the route file, a job card is written for each operation. The information on the job card is: part drawing number, lot number, operation number, name of part, name of operation, machine for the oper- ation considered and the machine for the succeeding operation. The stores issue is prepared to show part drawing number, lot number, part name, unit material, total ma- terial for lot, name of material, date due to issue to shop, machines for operation considered, and certain other essential entries, as — when order is apportioned or issued. A stock tag is written which accompanies the mate- rial through all operations ; the tag shows part name, drawing number, lot number, and the machines for the complete routing of the lot. The tag is an identifica- tion of the material and subsequent parts, and is never removed from the lot. The different papers are dated as follows : A straight line calendar is used. This shows dates only of work- ing days for the year. The interval of spacing for each date is constant. Another scale is divided into the same interval, reading from zero up to a total number of days as the longest time from the receipt of the customer's order to the delivery of finished parts 202 EXAMPLES OF SCIENTIFIC MANAGEMENT on shipment. In this particular shop 150 days is ap- proximately the limit. The zero of the number scale is set to the date of part due in stock as finished, and from the route sheets the days are read off when each operation must start for the particular lot. The standards involved in the above are routing to manufacturing orders, lot size, purchasing time, stores' time, producing time, and allowance time for the lot to move from one operation to the next, fix- tures, tools and instructions. After the route file is prepared and a tickler copy of the manufacturing order calls for the starting of a job, the following procedure is carried out: Assum- ing that the material has been received and is in stores and the receiving ticket has been recorded at the ledger for that material, the combined stores issue, move ticket, and job cards are sent to the stock room. The stock is delivered, receipted for by the shop represen- tative and the issue returned to the stock room. From here it is distributed, one copy to the planning depart- ment showing the issue of the material, another copy through the stores ledger and into costs. The job cards which accompany the stores issue and material to the shop are distributed in the job card racks under the following plan : We will consider the machines of one group : Assume this to be turret lathe with a symbol LT, and nine machines in this group numbered from 1 to 9, i.e., No. ILT, is No. 1 Turret Lathe, 2LT is No. 2 Tur- ret Lathe, etc. All of these machines are maintained in perfect con- dition, and all work is interchangeable. When an operation is planned to go on a turret lathe the symbol LT is shown on the route sheet and is car- THE SMALL PARTS FACTORY 203 ried forward to all job cards. There are also jobs com- ing to these machines from other route sheets. The jobs having been dated from the different route sheets as to the time due on the machines, they can be ar- ranged in the despatch rack box in the order of dates and will go on to the machines in their proper order. In a vertical cover of the box are card holders, one for each of the nine machines. When a job is given out from the main group of jobs to an individual ma- chine, the job card is time stamped and one copy given to the individual worker, who takes it to his ma- chine. The other copy is placed in the card holder for that machine. As workmen change their jobs, the lots are given out in succession in the above way. If the date of delivery of a final lot of material be changed a new date is set on the calendar rule, and all job cards are drawn and re-dated, and are again re-distributed strictly in the order of their dates. This may put them ahead or behind their old schedule posi- tions. When a workman completes his job he turns in his job card, which is then time-stamped. He is given at once a new job on his machine. The old job card is then sent through to the route sheet and ledgers for record and into the payrolls and costs for the labor determina- tion. At the same time the duplicate of the old job card is delivered to the inspector, and after inspection to the moveman, by which authorization he moves material to the next operation. When the job passes through final inspection, it is received in the stock room on the last move ticket and delivered to the assigned location. This last move 204 EXAMPLES OF SCIENTIFIC MANAGEMENT I ( ticket then goes through to the records and costs, show- ing the lot to be closed. Assemblies are treated exactly the same as parts, except that a "group issue" is used instead of a "single stores issue." The "group issue" may call for pur- chased finished materials, or for produced materials, and one will be written for each stock room in case the specification calls for it. The principal feature in this particular control, which differs from anything previously done, is the introduction of standard times for the production of standard lots, and the output determined by the fre- quency with which the lots are started. The dating of the job cards from the standard times on the route sheets is easily accomplished, and the re- sponsible authorities are required only to set the date of delivery, after which the route file clerk can set the dates for each operation. If at 4 o'clock on any day any job on any operation is not on the machine, as called for, a "Lot Ur- gent" tag is attached, and from that time on the job is worked unceasingly night and day. (This, how- ever, will be described in detail under "Enterprise No. 3.") As in Enterprise No. 1, the capabilities of different men have been considered and recorded. After each operation on the route sheet is marked the work char- acteristic letter as A, B or C, Machine symbols are also marked with the same designations for machine conditions. Workmen are interviewed and an agree- ment is reached for rating men according to ability as A,B ovC, With this plan in operation A work is auto- matically despatched to an A machine, at which is pro- vided an A operator. Except in cases of lack of work THE SMALL PARTS FACTORY 205 or of heavy peaks this arrangement is rarely broken. Occasionally an A man may be operating on a ^ ma- chine on C work, etc. Such combinations, however, can only be obtained by request of the despatch clerk upon the shop's supervisor. Under this plan is obtained a high degree of rout- ing and of despatching, but with the requirement of individual scheduling. That is, each lot of each part must be scheduled independently. This is relatively simple when standard times have been established upon which dates can be readily placed. To re-schedule a part on all operations, the chief schedule clerk is re- quired to set a date of completion on the lot only, all other dates previous to that being set by the calendar rule. If, when dating, any operation is due before the current date, a "Lot Urgent" tag is applied. When this appears, the shop's supervisor is instructed to pro- vide extra facilities for carrying out such work. ^ The allowance time which has been previously men- tioned is very important in the smooth operating of the shop, and it is determined and adjusted until the "Lot Urgent" tags do not become too great for eco- nomical working. This allowance time is the time from the finish of one operation on a part to the beginning of the next. It is found by first studying the average condition existing in the shop at the time of its appli- cation. Records are kept of the time when material is started into the shop and the time that it is received in the finished material stock room. The number of opera- tions on a part, that is, the number of moves between machines is used as a divisor for this time. The re- sult is the allowance time per operation. While this obviously will not be constant at first, there is a prob- 206 EXAMPLES OP SCIENTIFIC MANAGEMENT THE SMALL PARTS FACTORY II ^ If ability which must be recognized, that it will require this time on an average. Any longer than such time will cause sluggishness of the mo\v..xient of work and unnecessary work in process investment account. Any shorter time than this average will be obtained only by intensive supervision. It is well worth while to bring the average allowance time to as limited an amount as is consistent without an undue quantity of "Lot Urgent" tags. In the writer's experience it has been found in ordi- nary machine-shop practice, that one current day in addition to the running time of ea^h operation is alDout the minimum which can be operated, for very good running of a production shop. In the job shop, such as described in Enterprise No. 1, in previous para- graphs, where rapid delivery of orders is needed, this may be worked as low as one-half day. If the allow- ance is less than one day, then the scheduling of orders must be to the hour, as is done in Enterprise No. 1. If not by the hour, then the allowance time must at least equal one day. It should be understood that the lot size means that quantity which will move from one operation to an- other, and at each operation each piece shall be worked upon on that operation before the lot is moved to the next. It does not consider the issuing of a large order and then partial movements thereto, which are not supervised. If any lots are to be broken, it should be done only by special permission of the Production Manager or by someone delegated by him, who will allow no such permission to be extended until after careful consideration of all reasons therefor. In this enterprise and the one previously mentioned, each order on each part has its individual treatment 207 for schedule. In Enterprise No. 3 this condition will change, and a schedule for one of the main parts will be so arranged as to become automatically a schedule for each part and each actively included in the major part. 16 I > PLANT WITH UNIFORM MANUFACTURE 209 ENTEEPEISE NO. 3— PLANT WITH UNIFORM MANUFACTUEE The typical case cited is the manufacture of an automobile, in which there is practically no intermix- ing of a variety of models, which can be manufactured to a pre-determined schedule. A consideration of this problem will indicate that there is but one article to sell, that is the finished automobile. This cannot be accomplished unless it be accurately co-ordinated, so that the exact quantity of parts come at the correct time, to go in the subsequent assemblies. Any long delay of one part would tie up all industrial activity and restrict all income from salable product. The principal activity should thus seem to be concen- trated upon the co-ordination of all factors which enter into the production of parts and subsequent as- semblies in proper chronological order. The product must be thoroughly analyzed and a diagram made showing the path of flow of each of the parts through sub-assemblies and into final assembly. If such a dia- gram is laid out, showing not only the parts, but each of the activities upon each part, and are arranged to some scale, which will shop the time at which each oper- ation must be done with relation to any other, we have the ground plan for a very simple method of schedul- ing and of intensive supervision. To erect such a diagram, the exact producing time for each operation on each part must be known; the allowance time between operations must be known; 208 the length of time for materials to remain in the Eaw Stock Eoom and in the Finished Stock Eoom must be standardized ; the Purchasing Agent must agree to a standard time, in which to buy, bargain and deliver the different classes of material into the Stock Eoom after date of requisition therefor. If patterns, dies and tools must be provided for, they should be shown on this diagram in the proper place. The typical part would then show the following items on the diagram : 1. Specification due from Designing Department 2. Order for pattern or die, if required 3. Pattern or die due, finished 4. Eequisition for material 5. Tools ordered 6. Tools finished 7. Material due in stores 8. Material due on first machine or station 9. 10, 11, etc., materials due on subsequent machines and last, material due in Worked Materials or Finished Stock. Since a variety of parts may be required for one assembly, and the assembly is to be started only when all the parts are available, that is, unit assembly con- sidered, it will be obvious that the elements mentioned above will occur in different time positions for differ- ent parts, so that they may all be ready to issue at one time. If this assembly, just mentioned, is one part only of a larger assembly, then the same process will be repeated through to the final assembly of the fin- ished product. With standard lots established, the producing time per lot on each operation will be constant, and with a 210 EXAMPLES OF SCIENTIFIC MANAGEMENT f f I constant allowance time, standard stores and purchas- ing times, all parts will in general follow closely the same total time from date of first requisition to finished product. If the lot size of some parts will provide for the issue of a number of lots of the assem- bly into which it goes, the standard lots will be issued less frequently than of some other parts, which sat- isfy but one or at least a very few lots of the assem- bly in which they go, that is, the lot sizes of parts may be established on individual economic determi- nation. The quantity produced will depend upon the fre- quency with which the lots are started through the different stations in the process of making. If the quantity record at each station is made to read in terms of the number of cars, which will be satisfied by the quantity, with the amount so produced, a sched- ule can be planned for the finished product itself and applied successively over each activity on each part, thus eliminating any need for any other individual scheduling for each part. Such a diagram as has been mentioned will reduce in its simplest form (and even this is very elaborate) to what has been called a Control Board. These Boards, which have been used by the writer for this purpose, consist of large frames, seven feet high and ten feet long. On the face of each frame are strips, each inde- pendent of the other, but supported on wire cables, very much the same as designed for roller doors or roll-top desks. Strips may be added to or taken from this board without difficulty, and as combinations of parts and assemblies change, new ones can be added or the old ones readily removed. Beginning at the right-hand edge of each strip, consid- PLANT WITH UNIFORM MANUFACTURE 211 ered as the zero point, each V2 inch to the left is scaled as a working day. Since the boards are ten feet long, this provides for two hundred and forty working days. On the right hand of the zero point appears but one record place, and that is the finished car. To the left and at the Droper place, each activity on each part is then recorded. The space for this erection is a steel cage, i/s-inch square, in the bottom of which is a marker showing the machine symbol. The operation name of each part, numbers pertaining to lot size and number per car are on a marker at the right hand end of the finished part. That is, if a steering device of a stand- ard lot size of 50 is to be finished and issued to the chassis assembly 20 days before the car can be shipped, the Finished Stock cage for the steering device will be 10 inches, or 20 one-half -inch working days, to the left of the zero or car finish point. Each operation performed on the steering device will have its individ- ual cage at the proper time distance to the left of the Finished Stock cage. The following details of the exact order of procedure in the use of this type of complex control, while inten- sive in detail, are the least that will provide useful de- scription. The desire in any intensive management plan, which will eventually be the only one worth while, should be to detail every possible activity to its least form. There is a tendency to feel that this causes a great amount of detail, but it should be recalled that if such detail actually exists somewhere in processes of the manufacturing effort, it is worth while con- centrating it into physical demonstration at one loca- tion. To take advantage of the new form of Manufactur- ing Control, our work plan is as follows : IKOC« isaucD MACHINE rOR THIS OPERATION CYLINDER COMPLETE ClCll MACHINE WORK'O ON THISOPR'N MACHINE rOR NEXT OPERATION NO.or aooD pc». f^ CLAIMED PINIsn- ED ON THIS JOB -ire- D6M •'■'0<»'» NOTriNISHED 8CWAT CH OUT TMII^ IF JOE IS riNISHEO _ SCRATCH OUT THIS TIME tw tw ROUTE SHEET NF PAY ROLL MAN'S COST MACHINE COST NO. REL. COST B PREM.BASE TIMK ALLOW o| PRCM. LIMIT C=AB TIME TIMK TAKEN INSPECTED MACH. COST MAN'S JOB CARD TIMK SAVED E=C-D PREMIUM F=HE T'ME EARNING TIME G=D-f-F If MAN'S RATE DAY WORK OR PREMIUM PIO. 22 SAMPLE JOB CARD FORM USED BY THE FRANKLIN MANUFACTURING COMPANY EARNINOS I HAVE INSPECTED THC FIRST PIECES OM THIS JOB AND FOUND THEM O.K. rORM A-1077 SIGNED BY DRAWING NO. 21021 LOT NO. MAN'S NAME MAN'S NO. M PIECE SYMBOL E25AY1M OPER. NO. OPERATION NAMC ROUGH & FIN. BORE CYLINDER COMPLETE ORIGINAL PIECES ISSUED MACHINE FOR THIS OPERATION MACHINE WORK'DON THISOPR'N MACHINE FOR NEXT OPERATION 105 -58 V- ClCll -ITC- D6M DATE DUE ON MACHINE MATE* RIAL DATA MEANS STAR- TED FIN* ISHEO MO. DAY HOUR FIG. 23 SAMPLE INSPECTOR'S COUPON AND MOVE TICKET FORM USED BY THE H. H. FRANKLIN MANUFACTURING COMPANY 220 EXAMPLES Oi- SCIEM'lEIC MANAGEMENT nrruRNco FORM A-I077-A isaucD DRAWING NO. 21021 MAN'S NAME LOT NO. MAN'S NO. D M ncCK SYMBOL E25AY1M ORCR. NO. OPCRATION NAME ROUGH Sc FIN. BORE CYLINDER COMPLETE 'Iff ORIGINAL Pieces inc DATE OUE MO. DAT HOUR ISSUED 58V— REASONS ON MACNINt MACHINE FOR THIS OPERATION ClCll PIECES SPOILED WT. MATERIAL MACHINE WORK'OON THISOPR'N ^ITC PIECES DEFECTIVE MACHINE FOR NEXT OPERATION D6M PIECES FOR REPAIR MARK OFF MACHINES NOT WORKED ON r OOOD FON- WRO'D MOVED TO MO. DAY HOUR REC'D BY ROUTE SHEET MOVED ■V 1ST INSPECTED BY M< •Y }VES END 1 1 FIG. 24 FOREMAN'S COUPON FORM USED BY THE H. H. FRANKLIN MANUFACTURING COMPANY PLANT WITH UNIFORM MANUFACTURE 221 Prepare master sheet for Control Board schedule tape as follows : Lay off on one-half inch (1/2 in.) co-ordinate pa- per as many one-half inch (% in.) spaces as there are work days in which to assemble the uniform schedule. At the right end of this sheet, the begin- ning of the producing period is the zero point. Erect at this point a vertical line of any scale to a value, which represents the weekly production of all models at the beginning of the period. At the extreme left of this sheet, the end of the producing period, erect another vertical line with the same scale as the first and to a value, which represents the weekly production of all models at the end of the period. If these lines are of differ- ent length, that is, if the rate is different, connect the tops of the vertical lines by a curved line as specified by the Production Manager. If the value of the two vertical lines is the same, i.e., if rate of production does not change, the base line can be used on which to lay off the schedule. The length of the line connecting the tops of the vertical lines will represent the total number of cars to be produced over the period. Beginning at the right end of this line, lay off to the left dis- tances of 500 cars each and mark the line. Drop a vertical line to the base line from each of these points. This will divide the base line into several divisions of 500 cars each, but if the line is much curved, the distances will be uneven. Reduce each space on base line so provided ten per cent. (10^) and mark back on the base line to the right of each vertical line to show this distance. The remaining ninety per cent. (90^) of the space 222 EXAMPLES OP SCIENTIFIC MANAGEMENT PLANT WITH UNIFORM MANUFACTURE i ill III! II :ri: I will then be divided uniformly into (20) equal parts. Then if a reducing factor of 1/5 is used: the number over the starting point of the first division to the right will be zero. Over the next one 5, the next 10, the next 5 95, which will be over next to last mark. 100 will be over the first mark of the next division, and then 105, 110, 115 195. This will be continued for each section. The percentage reduction space causes an increase in the rate of the production before it, so that any lack of accomplishment in a period can be made np in the allowance time preceding the beginning of the succeeding period. It will be evident from inspection of this diagram that each unit number on the tape represents but one-fifth of the schedule, and that any number of cars indicated by the tape can be found by multiplying by five the denominator of the "Quantity Block." If the quantity is small over a long period, or if the schedule for some parts differs from others, a division of 50, 100, 200, etc., may be used in place of 500. As stated above, the number of cars is then to be found by multiplying the number on the tape by 1/2, 1, 2, etc., and this number used as the denominator of the quantity block ("Q" block). Such parts should be grouped on a board under a common tape, which has lines de- signed especially for that board. This can be illus- trated as follows : If schedule contains Touring, Eun- about and Sedans for first half of period, all com- mon parts will be grouped on as many boards as required, uncommon Touring on another, Eunabout on another and Sedan on another. On "common" board tapes use a division of 500 cars— "Q" block de- 223 nominator = 5. On Touring only, a division of 300 cars — 'Q" block denominator = 3. On Eunabout, a divi- sion of 100 cars— "Q'' block denominator = 1 and on Se- dan, a division of 50 cars— "Q" block denominator =i/>. As the relative schedules change, the period time on which the tape is laid out must be changed and new tapes made to cover period. The quantities in the divi- sions, or "Q" block denominator, need not be changed unless the quantities are greatly changed. ("Q" block denominators may be modified by percentage factors for car, group, division, section or sub-section so as to provide for standard losses or diversions. These fac- tors will always be specified by the Production Manager. If these factors are used, schedules will complete for different parts and assemblies at different tape num- bers, and schedule cages must be maintained at the requisition, "ii!," block for each part and assembly. In this cage will be posted the quantity (in "board units") of parts yet to be ordered, as authorized by the total schedule of the part. As losses and diversions are cor- rected to "board units" and quantities in operation cages are reduced, the quantity is added to the schedule cage. When new orders are written, the quantity in "board units" of the order will be removed from the "schedule" cage. When the quantity in the schedule cage becomes zero, a new schedule must be obtained. After the paper layout for the tape is completed, this will be traced on one and one-quarter inch (I14 in.) thin satin ribbon, the numbers being stamped with a rubber stamp and printers' ink, squeezed on a glass plate. The one-inch day tape and the one-inch calendar tape will be prepared at this time or at such a time as may be convenient, but never later than the schedule tape. The space interval for the work day tape and the 16 224 EXAMPLES OP SCIENTIFTC MANAGEMENT PLANT WITH UNIFORM MANUFACTURE If calendar tape will always bo the interval of the layout sheet for the schedule tape, i.e., one-half inch scale. THE ERECTING CLERK's DUTIES AND INSTRUCTIONS Print schedule tapes and place them on the reels. Receive blue prints from Route Division and write marker for print, showing name and drawing number and symbol, if on the drawing. Erect a black strip for a part and white strip for an assembly on the Control Board, located in groups as specified on the print and place a marker at extreme right-hand end. Erect (when necessary) a strip on Control Board for single stores issue, routed into the part preceding at a particular operation, to include a requisition cage, due in stores cage and an issue cage. For completes made of two kinds of raw material, issued at different times, two strips are to be used, one to have only a stores cage for the material last issued and a marker to indi- cate the time and location to which it is to be issued. Sign, date, and return print to Route Division. Receive print subsequently. Write additional markers as indicated by the print to include : Quantity block. Worked material block. Inspector's block. Stores block. Requisition block (Post tape number correspond- ing to first finished car into which part goes). Schedule block. Pattern or lead proof block. (Mark with tape 225 number as mentioned.) Lead proof block to be erected 30 days after requisition block. Tool block (Mark with tape number). Marker to show that part is added or displaces or supersedes other part. (Do not remove a su- perseded part or assembly strip until Order Clerk releases it.) Add these to the strip as indicated by the parts print and Purchasing Agent's standard "Purchased Time List." Sign, date and return print to Route Division. Receive operation sheet. Write marker to show number of operation and sym- bol of machine or department. Erect cages according to the operation sheet and make any re-arrangements of the original location of strips or markers. For each assembly, check to see that a part strip is m place for each part, as shown in assembly worked material master group issue. ^ Sign, date and return operation sheet to Route Divi- sion. Maintain the board in first-class repair, and under no circumstances allow any markers, type faces or flags to lie on floor under boards. Demand written instructions for any changes, if deemed necessary. Maintain a supply of all materials, including ribbons and reel cords. Provide for and assist with photographic mechanism. If any changes of operations or assemblies cause changes in the assembling time, the part strips of such assembly will be moved to correspond, and the Order Clerk will be at once notified in writing of such moves. m ff.jS; iil! 226 EXAMPLES OP SCIENTIFIC MANAGEMENT ORDER clerk's DUTIES Adjust schedule tape to agree to schedule time as loJlows : Learn from the Production Manager the date that cars at any point on the schedule tape are due to Sales Department and set the calendar tape so that this date IS at the extreme right-hand end of the Control Board ^ He will then set this special number on the schedule tape over the current date on the calendar tape. Other movements of the tape will agree to the tape on master board in the Production Manager's office but m general the tape will move one-half inch to the' right for each work day. At each move of the schedule tape, the Order Clerk will inspect each cage on the Control Board and note Its standing with respect to the number on the schedule tape immediately above it. He will date and deliver to ihe Eoute File Clerk: Single stores issues. Group issues. Tags. Job cards. Instructions for dating paper: Since losses by diverting or scrap changes the schedule of parts, and m so doing changes the quantity in the sta- tions, all datings should be conducted as follows • Determine the board unit for the preceding lot number (in general this will be the last number on the board, but in case of re-dating will not), find this number on the tape and place the cur- rent date of date tape, which is immediately ad- jacent, to the corresponding cage. If board PLANT WITH UNIFORM MANUFACTURE 227 strips are moved, due to changes in time of oper- ations, or if cages are moved due to the same reason, then all paper affected should be recalled for new dates. When each stores issue is sent for apportion- ment, he will place green marker in requisition cage. When a call is made upon Eoute File Clerk for requisition and job cards for a part, he will place a green marker in first operation cage. When requisition is dated and sent to Eoute File Clerk, the Order Clerk will transfer green marker from first operation cage to storage cage. This will be removed by Posting Clerk when material is issued from Stores. If any operation on a complete depends on material or a worked material part, stamp last operation card of the part to show drawing number of complete wait- ing for it and on the operation card to follow for the complete stamp ("do not post until part No is re- ceived at Job Station"). Single stores issues, tags, group issues, or job cards will be delivered to Eoute File Clerk six days preceding exact schedule of the cage. Worked material issue will be apportioned and de- livered two days before date due. ^ For work done on standing orders, such as heat treat- ing, nickel plating and black enameling, job cards will be written for each operation and will be used for post- mg the Control Boards and moving lots. When the Despatch Clerk receives notice that any of these opera- tions on any lot is completed, such job card will be marked "i?'" and sent to the Control Boards for posting i f 'W II 228 EXAMPLES OP SCIENTIFIC MANAGEMENT and the move coupon to the move man. These cards will not show time, and are not to be sent to the Cost Department. He will see that produced quantities do not get too far ahead of schedule, and from time to time will con- fer with the Production Manager for guidance. If any number on the board is overrun by the cor- responding number on the schedule tape, he will obtain a red tag from Route File Clerk and place red marker m cage. He will place any such marker on notice from Despatch Clerk. He will watch the quantity under "Diverted" and "Scrapped," and when large will order the board unit cage standings reduced by the amount. If quantity lost or diverted is very large, all papers on all lots in proc- ess should be re-dated to advance them. This is also true when a change of time of assembly causes notice of shift of parts by Erecting Clerk. He will receive from Stores, Form A 1138, report when any material is scrapped for Stores or is used on any other order other than those to which it has been apportioned. When this depletion amounts to a frac- tion of a lot size, the stores cage on the Control Boards must be reduced a full lot size. When a part or assembly becomes obsolete, he will record the number of pieces so obsoleted on Form (— ) and turn it over to the Route File Clerk for notifica- tion to Service Department and for file. If an assem- bly becomes obsolete and its strip is to be removed from the board, and pieces of assembly are standing m Worked Materials they will be treated as if diverted, and the diverted cage of each old part, which contin- ues in current production, will be posted with the number of pieces so diverted. If the assembly is after- PLANT WITH UNIFORM MANUFACTURE 229 ward scrapped and the pieces re-claimed, the number placed in stock will be removed from the diverted cage and added to the Worked Material cage for each part. Such postings will be made by the Posting Clerk from written notices of the Order Clerk. He will check Worked Material tags to cages and send to Route File Clerk for correction or file. His prime responsibility will be to start all opera- tions, including requisitions, etc., on schedule time. He is to notify in writing, by standard forms, or oth- erwise, those persons who are responsible for the par- ticular item considered. He should feel the responsibility of keeping the shop attainment up to schedule. ROUTE FILE CLERK's DUTIES He will receive all paper from the Order Clerk and distribute it to the proper place. He will receive all paper from the despatch racks and distribute it to the proper place at the boards. He will post in a ledger all lots started or finished, by drawing number, lot number and quantity. Also show special apportionments as sundry, etc., and any notes about particular lots that are deemed necessary. He will supervise Despatch Clerks and Postin Clerks. Immediately on receipt from Order Clerk, he will send stores issues to Balance Stores Ledgers for ap- portionment. He will receive apportioned paper and, after posting, will file. He will send copy of stores issues to Cost Depart- ment, and on receipt will file. g 230 EXAMPLES OF SCIENTIFIC MANAGEMENT II M ' t He will post all receipts of materials against appor- tioned paper and pass receiving ticket to the Posting Clerks to post on Control Boards in stores cages. tie will apportion delayed parts in Worked Material group issues upon notice of receipt from Posting Clerk He will maintain route sheets for job orders and prepare move tickets for all such jobs He will secure job cards for all jobs from route de- partment file. The paper used by the Route File Clerk will be han- dled as follows: The stores issue will be in three cop- ies, and will combine material and move tickets within the same form. When the paper has be6n dated and a green marker placed by the Order Clerk and turned over to the Koute J lie Clerk, he will send the face copy to the stores ledger for apportionment, allowing them twelve hours m which to return it. The face copy will then be delivered to the Posting Clerk for posting "Stores Cage" and to indicate re- moyal of green requisition marker. The Posting Clerk will be required to return this paper within twelve hours to the Eoute File Clerk for file. In case the stores apportionment does not show full quantity of stock on hand, such receipt of the material will be posted by the Route File Clerk to the face copy from the Stores Receiving Ticket and be passed to the Posting Clerk for "Stores Cage." The Stores Receiving Ticket in all cases will be marked by Stores Clerk with orders waiting for ma terial, and will show the drawing number, or symbol, lot number and quantity, which are covered by the receipt. ^ At the time of sending face copy to Stores Ledgers, PLANT WITH UNIFORM MANUFACTURE 231 the second copy will be sent to the Cost Department as a notification for them to open orders. The Cost Department will return this paper within twelve hours for file to the Route File Clerk. The third copy will be placed in tickler under date of stores due, and will be used to start lot. One day before date material is to be issued from the stock room, the three copies of the group issue will be sent to the stock room. If the material cannot start, a red tag will be written and filed in tickler against third copy and notice sent to the Order Clerk, who will mark first operation cage under same plan as for job cards. If a Worked Material group cannot start due to shortage of part or parts, a red marker will be placed in Worked Material cage of parts by Order Clerk, and when parts are received, the Route File Clerk will be notified and the red marker removed. After delivery and receipt by foreman, the Stores Department will return the face copy of Stores to the Stores Ledgers, Worked Material to Route File Clerk, and both to Cost Department to show the charge out of stores. They will send the second copy to the Route File Clerk and Posting Clerk, from which will be posted the move to the first machine. If assemblies require both Stores and Worked Material group issues, they will be issued at the same time. Assembly blocks (R) will show Stores group or Worked Material group, one or both, as they occur. If there is a group of each, and one is up to the Board, a blue marker is placed in first operation cage, but the quantity is not posted. When the second one reaches the Board, the blue marker is removed and the quantity posted. 232 EXAMPLES OF SCIENTIFIC MANAGEMENT The third copy goes to the despatch rack with the goods, or on those floors not having a despatch rack, goes to the foreman and becomes his property. Jobs up to machines, except the first operation, will be posted from the finished (F) job card of the par- ticular lot and previous operation. The job cards must bje returned the same day to Despatch Clerks to arrange for the Cost Department and pay roll. When a job card passes from one department to an- other or to Worked Materials, after posting, the cage receiving will be marked with a blue marker, which marker will be removed by Posting Clerk on receipt of the combined Inspector's Coupon and Move Ticket. Moves into worked materials will be posted in the same way. Spoiled and defective work will be posted from the Move to Worked Material tickets. The Move ticket into Worked Materials will, after going to the Board (and if part was short, after appor- tionment to Worked Material group issue) will be sent to the Cost Department as instructions to close the order. It will be returned by the Cost Department in- side of twenty-four hours for permanent file. Tool and pattern movements will be posted from the tool and pattern order. If the Order Clerk finds any discrepancies between the stock tags and the Worked Material cages, these will be taken by the Route File Clerk, investigated and any discrepancies existing will be adjusted and marked on the tag from which the Posting Clerks will change the Board. Any corrections or alterations to the data on the Board will go through the Route File Clerk in writing. PLANT WITH UNIFORM MANUFACTURE 233 and after approval by him will be posted by the Post- ing Clerk. POSTING clerks' DUTIES They will receive their instructions from the Route File Clerk. They will receive from the Route File Clerk any paper, which is to be posted to the Control Boards. As far as possible this will be taken from baskets attached to the Control Board. They w^ill sort and classify their paper to the differ- ent Control Boards, if this has not been done pre- viously by the Route File Clerk. They will find the part and operations considered and from the numbers standing at the operation moved from and the operation moved to will calculate the new quantities with a Munroe Calculator and post the cages. They should calculate to a decimal of a unit and should watch to see that if the moves w^ork out to a decimal that they are not posted all in one way. All quantities except Worked Material diverted and scrapped will be divided by the denominator on "Q" block (these exceptions will be posted to show the exact quantity). Wlienever an out move is made from Worked Mate- rial by group issue or single issue, whether current production or diversion, the quantity on hand in Worked Material cage will be reduced by the amount taken out. When any assembly is diverted (also see obsoleted under Order Clerk) the "Diverted" cage for such as- sembly will be posted with the number of such pieces. When such assemblies as Diverted are to be ad- INTENTIONAL SECOND EXPOSURE i ^ r t- 232 EXAMPLES OF SCIENTIFIC MANAGEMENT PLANT WITH UNIFORM MANUFACTURE i The third copy goes to the despatch rack with the goods, or on those floors not having a despatch rack, goes to the foreman and becomes his property. Jobs up to machines, except the first operation, will be posted from the finished (F) job card of the par- ticular lot and previous operation. The job cards must bje returned the same day to Despatch Clerks to arrange for the Cost Department and pay roll. When a job card passes from one department to an- other or to Worked Materials, after posting, the cage receiving will be marked with a blue marker, which marker will be removed by Posting Clerk on receipt of the combined Inspector's Coupon and Move Ticket. Moves into worked materials will be posted in the same way. Spoiled and defective work will be posted from the Move to Worked Material tickets. The Move ticket into Worked Materials will, after going to the Board (and if part was short, after appor- tionment to Worked Material group issue) will be sent to the Cost Department as instructions to close the order. It will be returned by the Cost Department in- side of twenty-four hours for permanent file. Tool and pattern movements will be posted from the tool and pattern order. If the Order Clerk finds any discrepancies between the stock tags and the Worked Material cages, these will be taken by the Eoute File Clerk, investigated and any discrepancies existing will be adjusted and marked on the tag from which the Posting Clerks will change the Board. Any corrections or alterations to the data on the Board will go through the Route File Clerk in writing. 233 \ \ and after approval by him will be posted by the Post- ing Clerk. POSTING clerks' DUTIES They will receive their instructions from the Route File Clerk. They will receive from the Route File Clerk any paper, which is to be posted to the Control Boards. As far as possible this will be taken from baskets attached to the Control Board. They will sort and classify their paper to the differ- ent Control Boards, if this has not been done pre- viously by the Eoute File Clerk. They will find the part and operations considered and from the numbers standing at the operation moved from and the operation moved to will calculate the new quantities with a Munroe Calculator and post the cages. They should calculate to a decimal of a unit and should watch to see that if the moves w^ork out to a decimal that they are not posted all in one way. All quantities except Worked Material diverted and scrapped will be divided by the denominator on "Q" block (these exceptions will be posted to show the exact quantity). Wlienever an out move is made from Worked Mate- rial by group issue or single issue, whether current production or diversion, the quantity on hand in Worked Material cage will be reduced by the amount taken out. When any assembly is diverted (also see obsoleted under Order Clerk) the "Diverted" cage for such as- sembly will be posted with the number of such pieces. When such assemblies as Diverted are to be ad- 234 EXAMPLES OP SCIENTIFIC MANAGEMENT PLANT WITH UNIFORM MANUFACTUEE 235 justed, reduce Diverted to Board Units and subtract all assembly Board Unit cages except Stores. At the same time post in Diverted cage of each part contained in the assembly the number of pieces so diverted. In the Stores cage will be posted in quantities of the Board Unit (the Board Unit to mean any quantity divided by the denominator of "Q" block) such quan- tity as is shown to be covered by Apportionment. The Stores cage shows what material is in stock that has been apportioned against the particular part. When correcting Worked Material tags to Boards, if tag shows less than quantity in Worked Material cage, reduce pieces in Worked Material cages to agree to tag, and post in "Diverted" cage the amount of differ- ence. If tag shows more, add to Worked Material cage and reduce any pieces in Diverted or Scrapped cages a like amount ; if no quantity is shown in "Diverted" or Scrap cages, divide by "Q" denominator and add to all previous cages except "Stores" cage and subtract from* Schedule cage. The Posting Clerks will be held accountable for the accuracy of all records on the Boards, and no one will be allowed to move or change any such records without a complete understanding or arrangement with the Posting Clerk. The Posting Clerks will assist as far as possible to bring to attention any general errors existing in the Board or any discrepancies that they may notice be- tween the tape and any corresponding cages. Whenever posting to a cage that has a red marker when the paper is marked with a red cross, such red marker must be removed. In all other cases, the red marker will be replaced. If red marker stands in Worked Material cage, when a full lot of parts move in, the Eoute File Clerk will be at once notified by; Move ticket and the red marker removed. Green marker will be removed when apportioned stores paper is posted. Blue marker will be added to receiving cage when (F) card shows changed department and will be re- moved when Move ticket is received. Any work done in the factory that is not convention- ally posted on the Control Boards must be carried out by route sheets. DESPATCH clerks' DUTIES When job cards are started by the Order Clerk they will be posted in the despatch boxes. When the material is received at the machine, in the second compartment of the machine box will be placed the job card and inspector's coupon, while the fore- man's coupon will be sent to him. All other jobs on that part for that lot will be posted at the proper ma- chines in the third compartment. On giving out job cards, the workman's name, clock number and the machine on which he actually is to do work will be marked. The card will then be time stamped and handed to the workman or will be put in the workman's attendance racks. The attendance racks will be the responsibility of the Despatch Clerks. They will be filled with job cards before the closing at night. They will be unlocked by the watchman in the morn- ing and will be locked by the Despatch Clerks at 7 o'clock, unlocked by them at 12 o'clock, locked at 1 o'clock and unlocked at 5 o'clock. ) 236 EXAMPLES OF SCIENTIFIC MANAGEMENT PLANT WITH UNIFORM MANUFACTURE '1 i All job cards will be removed that remaiii after time of locking. Workmen not in on time will be obliged to report to the Despatch Office for a job. They will be required to sign a late or absent card, which will account for the time so lost. The job cards in machine racks will be arranged in the second compartment in the order of their date and given out in this order; in the third compartment, in order of their drawing number ; and they must be main- tained accurately this way. No exceptions to this will be allowed even tempo- rarily without the Production Manager's authority. If exception must be taken, consult at once with the Route File Clerk or mark with a slip of paper show- ing that such irregularity is known to the Despatch Clerks. All (F) job cards must be delivered to the Route File Clerk for Posting Clerks and when returned must, with all other unfinished cards, be accounted for and arranged for Cost Department. When an operation on any lot cannot be put on ma- chine on date, put a red tag on that lot. When the lot gets up to schedule date again, remove the tag. If a tag placed is the only tag on the operation, report at once in writing the placing of that tag to the Con- trol Board. This report to show drawing and operation number. If, however, another lot of the same part on that operation already bears a tag and has been re- ported to the Board, do not report the tagging of any later lot; in other words, the report of red tags sent to the Board is to be a report of operations tagged rather than lots tagged. When a tag is removed from a lot, if other tags still 237 remain on that operation, simply destroy the tag re- moved, but if the tag removed is the last tag on that operation, mark the {F) job card with red cross. The Despatch Clerks must give very quick and prompt service and accord every possible courtesy to the workmen. If the workmen claim that the job can- not be handled, refer the workmen at once to the fore- man. They will post any route sheets for jobs, which are operated on special orders, if in the discretion of the Route File Clerk it is more economical for them to do so than for the Route File Clerk to do it. They will receive cards from the workmen and time stamp them. As one job is finished on one machine, they will move up the next job in the next machine rack from the information on the card. They will time stamp the inspector's coupon when the job is started and when it is finished. They will issue the coupon as a Move between the machines or departments. They will receive these tickets after moving and de- liver to the Route File Clerk. They will make up the job cards and account for all hours of attendance. They will time and account for all late and absence slips. INSPECTOR OF RECORDS' DUTIES The duties of the Inspector will be to verify that all of the clerical work required in the above is carried out with exactness and he will be looked to for final respon- sibility as to the general accuracy of the conduct of the above work. 238 EXAMPLES OP SCIENTIFIC MANAGEMENT i I He will record his findings, place the responsibility and report to the Production Manager for all errors found. He will bring such errors at once to the atten- tion of the responsible person so that they may be corrected. All reports must be in writing. To check standings proceed as follows: Multiply any value in "Board Units" by denomina- tor of *'Q'' block. This will give pieces. Add or sub- tract any other pieces desired and compare with other values. Example: Check part into Worked Material with outgoing assembly. (Note : Other assemblies may take this part.) Multiply first figures in assembly cage by denomi- nator of "0" block for this assembly. Multiply this quantity by the number of the part (which is being compared) per assembly. Add pieces in Worked Mate- rial and pieces Scrapped and Diverted for the part to this quantity. Then multiply figure in D81M cage of part by the denominator on "Q" block for the part. This quantity should equal the first quantity. INDEX Absence, 97 Absences and tardiness, compara- tive, 133 Acquired knowledge, reward for, 91 Adaptability of Taylor System, 129 Advancing or retarding work by the Control Boards, 74 Advantages of centralized despatch room, 76 the Taylor System, 13 Allowance for years of service, 92 Allowance time, 41 in Small Parts Factory, 205 Analysis of the Franklin activities into classes of manufacture, 127 Assembly blocks, 231 Automobile manufacture, 4 Average hourly wage, 1908-1917, 150 Barth's report, Carl G., 6 Base rate, fundamental, 88, 169 Base rates, work and department, 171 Basis of Control Boards, 41 Benefit, 156 division of, 156 increased, 160 Board units, 223 Building and equipment section, 112 Bulletin board for Repair Shop, 194 Burden, daily, 123 machine-hoiu", 122 (machine) books, 59 Business conditions in 1908, 1 Calender tape, work-day, 67 Car, classification of, 47 Centralization of control, 59 Centralized despatch room, advan- tages of, 76 Change in product, 149 of operations, frequency of, 125 Changes in Product and Meth- ods, 115-129 Certainty of control, 118 Classes of manufacture, 126 Deliveries determined, 116 Elimination of p)oor work, 118 Improved inspection, 116, 118 Improvement and uniformity of product, 119 Improvements in manufacturing methods, 119 Machine-burden hours, 122 Old methods of supervising manu- facture, 120 SimpUfication of product, 116 Stores delivery, 117 Time requirements established, 116 Changes in purchasing department, 142 Changes Which Have Affected THE Men, 130-146 Contentment and interest, 136 Increased earnings, 134 Increase I Classification of car, 47 engine, 48 machines, 38 materials, 35 Classification of methods, 35 product, 33 sponges, 52 variety stores, 51 Classification of workers in Repair Shop, according to skill, 192 Classification in Small Parts Fac- tory, machines, 205 workers, 205 Clearing house, main, 76 Clothing (workingman's) average, 172 Common Sense Management, 31 Communitv, selection of industries for, 131 Company's investment, 157 Comparative statement of cost and earnings, 174 Conditions in Repair Shop prior to introduction of Scientific Man- agement, 190 Conduct reward, 102 Contentment and interest in work, 136 Control, 187 centralization of, 59 certainty of, 118 establishing, 47 Control Board, 66 detail, 73 economies, 75 equipment, 67 erection, 70 functions, 75 movable feature, 72 pennanency of set-up, 74 schedule tape, preparation of, 221 Control Boards in Plant with Uni- form Manufacture, 210. Co-operation and conduct, reward for, 102 Co-ordination of all factors in Plant with Uniform Manufacture, 209 Correction for spoiled work, 98 Cost and earnings, comparative statement of, 174 Cost of employment, 91 living, relative, 172 training a worker, 91 Court of appeal, 81 Crest of productivity, 108 Daily burden, 123 task, 123 Dating paper, instructions for, 226 Dead stock accounts, 143 Decrease in production cost under Scientific Management, 153 Decreased efficiency of workers on new product, temp)orary, 151 Decreased work hours, 134 Deliveries determined, 116 Departmental discipUnary authori- ty, 80 Despatch, 187 Clerk's duties, 235 racks for Repair Shop, 195 racks for Small Parts Factory, 203 room, 59, 76 rooms (former arrangement), 76 section, 113 tubes (pneumatic), 76 tube system, 77 Despatching shop orders, procedure, 60 Detail of Control Board, 73 Disadvantages of individual de- spatch rooms, 76 Discharges, 80 and disciplinary measures, 81 Dividing an industry into classes of manufacture, 127 Division of "Benefits," 156 Drawing requirements, 49 Dual responsibility in 1908, 3 Failure to keej) dates, 3 Fluctuations in labor employ- ment, 3 Labor turnover, 4 Lack of co-operation, 3 Unsuitable equipment, 3 Earnings, comparative statement of, 174 Economical stores deUvery, 117 Effect of increased investment, 158 Efficiency of workers on new pro- duct, temporary decrease in, 151 Elimination of poor work, 118 Employment, permanency of, 133 Employment Manager's authority, oU Employment and Rate Fixing, 79-108 Absences and tardiness, 97 Deductions for lates, absences and spoiled work, 97 Discharges and disciplinary meas- ures, 81 Employment Manager's authori- ty, 80 Fixed charges rate, 92 Full profit for managerial effort, 83 Fundamental base rate, 88 Penalties for spoiled work, 98 Perc5entage allowance for in- creased cost of hving, 89 Premiums earned, 94 Rate formula, 84 Recognition for co-operation and conduct, 102 Recompense for skill in more than one mechanical process, 90 Recompense for task and straight time work, 100 Responsibilities of the manage- ment and of workers, 83 Retainer for task worker on straight time work, 83 Reward for years of continuous service, 92 Selection of workmen, 80 Standard premium task time, 97 Employment of workmen, 80 section, 112 Engine, classification of, 48 Engineering Department's duties in Plant with Uniform Manufac- ture, 212 Engineering division, 110 Engineering Inspection duties in Plant with Uniform Manufac- ture, 212 Equity ratio, 156 legitimate causes for change in, 157 Erecting Clerk's duties in Plant with Uniform Manufacture, 224 Establishing Control, 47-62 Centralization of control, 59 Classification, 47 of enj^e, 48 of variety stores, 51 Despatch room, 59 Machine burden books, 59 Routing of work and materials, 57 Standardization of factory ma- chinery, and fixtures, 57 Standardization of purchase times, oo Storerooms, 54 Store ledgers, 54 Symbols, 49 Example in Control Board erection, 70 Examples op ScrENTipic Manage- ment, 185-189 Plant with Uniform Manufac- ture, 208 Repair Shop, 190 Small Parts Factory, 199 Executive Department, 113 Despatch section, 113 Inspection section, 113 Produce section, 113 Store and transport section, 114 Expansion in 1916, 161 Extra recompense for task worker when straight time work, 100 Extracts from Doctor Taylor's writ- ings, 26 Factory Conditions in 1908, 1-8 Barth's (Carl G.) report, 6 Business conditions, 1 Factory management, 2 Foreman's responsibilities, 2 Problem of automobile manufao- tiu-e, 4 Production, 2 Results of dual responsibility, 3 Size of plant, 1 Stock chasers, 2 Workman's responsibihties, 2 Factory machinery, standardization of, 57 Factory management in 1908, 2 Family, average workingman's, 172 First standards, 31 Fitness for a task, 137 Fixed charge cost, labor and, 104 Fixed charges rate, 92 Foreman's responsibilities under present system, 61 Scientific Management, 10 Forms, changes in, 127 purpose of, 127 Frequency of change of operation, 125 * Fuel for worker's family, 172- Functions of Control Boards, 75 Fundamental Base Rate, 16^171 Fundamental base rate, 88 If! 242 INDEX INDEX 243 Groundwork of Scientific Manage- ment, 82 Group issue papers, 231 Growth and activities, 147 Hours, decreased work, 134 Illumination, improvements due to, 139 Imposing penalties, 84 Improved inspection, 118 inspection methods, 116 Improvement and uniformity in product, 119 Improvements in manufacturmg methods, 119 Increase in living cost, percentage of, 89 Increased "benefits," 160 Increased investment, effect of, 158 production and employment under Scientific Management, 148 wages, 134 Individual despatch rooms, disad- vantages of, 76 Information for erection of Control Boards, 71 Inspection, improved, 118 parts in process, 113 worked material, 110 Inspection coupon, 60 Inspection in Repair Shop, 196 Small Parts Factory, 203 Inspection methods, improved, 116 section, 113 , . . t^i x Inspector of Records' duties in Plant with Uniform Manufacture, 237 Inspector's coupon used by the H. H. Franklin Mfg. Co., 219 Inspector's ticket for Repair Shop, 194 Installations of Scientific Manage- ment, 9 Instruction cards, 60, 136 Instruction in processes, 91 Instructions for dating paper, 226 work in Repair Shop, 195 Inter-departmental memoranda con- cerning investigations, 11 Interest in work, 136 Investigation of the Taylor System, 9-30 * Direction of investigation, 9 Extract from Doctor Taylors writings, 26 Inter - departmental memoranda and correspondence, 10 Main features, 17 Procedure of installation, 17 Visit to Tabor Mfg. Co. plant, 20 The Questionnaire, 20 Investigation of worker's complaint, 178 Investment, company's, 157 workers'. 157 Issuance oi jobs in Repair Shop, 196 Job card for Repair Shop, 194 for Small Parts Factory, 201 used by H. H. Franklin Mfg. Co., 218 Job order, 60 Labor, peak load of, 131 reduced turnover of, 130 Labor and fixed charge cost, 104 Labor turnover in 1908, 4 Ledgers, Stores, 54 Legitimate causes for change in equity ratio, 157 Literature on Doctor Taylor s Sys- tem, 9' Living cost, percentage of increase in, 89 Living costs (daily), summary of, 173 Lot quantity, 124 size determination for Plant with Uniform Manufacture, 214 size in Plant with Uniform Manu- facture, 210 Lots, 65 Loyalty reward, 92 Machine burden books, 59 Machine-hour burdens, 122 Machines, classification of, 38 selection of, 59 Main clearing house, 76 Manager, Production, 111 Works, 111 Managerial weaknesses in 1^8, 3 Manufacture, old methods of super- vising, 120 seven classes of, 126 Manufacturing, object of, 155 methods, improvement in, 119 Margin, 155 Material stock issue for Repair Shop, 194 Materials, classification of, 35 Measuring tape, calender, 67 work-day, 67 Mechanical construction of Control Boards, 66 Mechanical methods, standardiza- tion of, 40 Menu (workingman's), average, 172 Methods, classification of, 35 Methods of manufacture, revamp- ing, 128 Mutual Benefit Association, 139 Non-task, or straight time, work, percentage of time spent on, 102 Object of manufacturing, 155 Old methods reviewed, 141 Order (manufacturing), for Small Parts Factory, 200 Order Clerk's duties in Plant with Uniform Manufacture, 226 Order procedure in Repair Shop, 194 Small Parts Factory, 202 Orders for Small Parts Factory, sources of, 199 in Repair Shop, 193 Organization Classification, 109-114 Outside vendor, 135 Pattern routing, 110 Peak load of labor, 131 Percentage allowance for processes, 90 of increase in li-vang cost, 89 of premium earned, 94 of time for absence or lateness, 97 of time on non-task work, 102 of time under task, 100 Permanency of Control Board set- up, 74 of employment, 133 of rate of time and pay under the Taylor System, 12 Photographing Control Boards, 75 Plan of manufacture, 63 Planning Department, 111 Plant, size in 1908, 1 size in 1917, 29 Plant With Uniform Manufac- ture, 208-238 Co-ordination of all factors, 209 Despatch Clerk's duties, 235 Engineering Department's duties, 212 Engineering Inspection duties, 212 Erection Clerk's duties, 224 Inspector of Records' duties, 237 Order Clerk's duties, 226 Posting Clerk's duties, 233 Route Clerk's duties, 229 Routing Section's duties, 213 Pneumatic despatch tube system, 77 tubes, 76 Poor work, elimination of, 118 Posting Clerk's duties in Plant with Uniform Manufacture, 233 Premium earned, percentage of, 94 Premium system, former, 95 Premium task time, standard, 97 Preparation of master sheet for Con- trol Board schedule tapje, 221 Problem of automobile manufac- ture, 4 Procedure in despatching shop orders, 60 in installation of Taylor System, 17 Procedure (order) in Small Parts factory, 202 Process class of work rates, 170 Produce Section, 113 Producing hours, reduction in, 151 time, 41 Product, classification of, 33 improvement and uniformity of, 119 Product and method, changes in, 115 Production and Employment under Scientific Management, increase in, 148 Production cost imder Scientific Management, decrease in, 153 Production Department, 110 Building and equipment section, 112 Employment section, 112 Routing and Equipment for pro- duction section. 111 Schedule section, 111 Production in 1908, 2 in July, 1917, 29 curve, 64 Manager, 111 Productivity, crest of, 148 244 INDEX Proportional division of benefits, 158 Promotion, 83 , j. • e Purchase times, standardization ot, 56 Purchasing Department, effect of changed conditions on, 142 Purchasing Department's co-opera- tion, 144 Quantity block, 222 Quantities of product, 126 (Quarterly wage rate adjustment, 84 Rate formula, 84 , • ^o Allowance for years of service, 9^ Coefficient, 85 Co-operation and conduct, 102 Correction for spoiled work, 98 Fixed charges rate, 92 Fundamental base rate, 88 Labor and fixed charge cost, 104 Percentage allowance for pro- cesses, 90 of increase in Uving cost, 89 of premium earned, 94 of time for absence or lateness, 97 of time spent on straight time work, 102 of time spent under task, 100 Standard premium task time, 97 Time taken to do work, 104 Rates, process class of work, 170 Rates (base), work and department, 171 Recalculation of a Workers Rating, 176-179 Recognition of a workers skdl, 83 Records in Repair Shop, 194 in Small Parts Factory, 206 ^ Reduced stores investment with in- creased production, 144 turnover of labor, 130 Reducing factor, 222 Reduction in producing hours, 151 in variety of product, 116 Regularity of wage increase under Scientific Management, 150 Relative Cost of Living, 172-175 Relative turnover of labor, 132 Reorganization of Repair Shop, 192 Repair Shop, Scientific Manage- ment for, 190-198 . Conditions prior to installation of Scientific Management, 190 Reorganization, 192 Results of reorganization, 197 Requisition block, 223 Re-scheduling in Small Parts Fac- tory, 205 Responsibilities of the management, 83 Results Graphically Depicted, 147-162 Average hourly rate, 1908-1917, 150 Decrease in production cost, 153 Division of "benefits," 156 Expansion in 1916, 161 Growth and activity, 147 Production and employment, 148 Reduction in producing hours, 151 Results of reorganization of Repair Shop, 197 Results under new management, 141 Retarding work by the Control Boams, 74 Right of appeal, 82 Route Clerk's duties in Plant with Uniform Manufacture, 229 Route patterns, 1 10 Route sheet for Small Parts Factory, 200 Routing, 187 ^ ^ Routing and equipment for produc- tion section. 111 Routing of work and materials, 57 Routing Section's duties in Plant with Uniform Manufacture, 213 Revamping methods of manufac- ture, 128 Reward for loyalty, 92 Safety appliances, effect of, 138 Schedule, Control Boards and Pneumatic Despatch Tubes, 63-78 Schedule, specification of , 63 accelerating production, 64 for Repair Shop, 194 diagram for Plant with Uniform Manufacture, 209 section. 111 tape, 67 Scheduling, 187 ^ , Scientific Management, groundwork of, 82 Seasonal activity, 148 Segregation of departments, 48 INDEX 245 Selection of industries for a com- munity, 131 of machines, 59 Shelter for workers, 172 Shop requirements under the Tay- lor System, 12 Small Parts Factory, Scientific Management for, 19i9-207 Sources of orders for Small Parts Factory, 199 Spoiled work, correction for, 98 Sponges, classification of, 52 Spring symbol, 50 Standard premium task time, 97 Standard stores time, 71 Standardizationoffactorymachinery and fixtures, 57 of mechanical methods, 40 Allowance time, 41 Basis of Control Boards, 41 Procedure, 40 Producing time, 41 of purchase times, 56 of tools, 42 Statements by Employees, 180- 182 Stock bin tags, 54 Stock tag for Small Parts Factory, 201 Store and transport section, 114 Stores issues for Small Parts Fac- tory, 201 Stores ledgers, 54 for Small Parts Factory, 199 Storerooms, 54 arrangement of materials in, 36 Storeroom employee's responsibili- ties, 55 Suggestions for workmen, 137 Summary of daily living costs, 173 Supervising manufacture, old meth- ods of, 120 Suspensions, 80 Symbols, 49 Symbohzation of spring, 50 Tabor Mfg. Co 's product, 19 Tag, stock bin, 54 Tardiness, penalty for, 97 Task, daHy, 123 fitness for a, 137 percentage of time under, 100 Task time, standard premium, 97 Taylor System, 17 Adaptability of, 129 Main features of, 18 of Scientific Management defined, 31 Procedure for installation of, 17 Time requirements established, 116 taken to do work, 104 Tool lists, 60 Tools, standardization of, 42 Transference of workers, 80 Transportation section, 114 Turnover of labor, reduced, 130 relative, 132 Unclassified stores, 54 Variety of product, reduction in, 1 16 Variety stores, classification of, 51 Vendor, outside, 135 Wage (average hourly), 1908-1917, 150 increase, 1908-1917, 29 increase under Scientific Manage- ment, regularity of, 15Q Wage rate adjustment, quarterly, 84 Wages, increased, 134 Work, time taken to do, 104 Work and department base rates. 171 Work spoiled, correction for, 98 Work-day calendar tape, 67 measuring tape, 67 Worked material inspection, 110 Worker's complaint, 177 rating, recalculation of, 176 Workingman's family, average, 172 Workingman's responsibilities under Scientific Management, 11 Penalties, 11 Rewards, 11 Workers' investment, 157 Works Manager, 110 Years of service, allowance for, 92 :r r .t.-'a--^ Y^,>.- . r i.i.f .. ,-i?if>yaiS|ii^i>.g.i>i.. 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