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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: Nichols, Henry Wyman Title: A method of determining costs in a cotton mill Place: New Bedford Date: 1915 .^ MASTER NEGATIVE « COLUMBIA UNIVERSITY LIBRARIES PRESERVATION DIVISION BIBLIOGRAPHIC MICROFORM TARGET ORIGINAL MATERIAL AS FILMED - EXISTING BIBLIOGRAPHIC RECORD TT' 360*8 ^^^^ Nichols, Henry Wyman, 1872- ^t«^ A method of determining costs in a cotton mill, by Henry W. Nichols, a. b. New Bedford, Mass., E. An- thony & sons, inc., printers, 1915. 115 p. tables. 23*'". ($3.00] ^ .5 1^ Cost/<^counting. 2. Cotton growing and manufacture. Library of Congress Copy 2. Copyright A 398902 O HF5686.C8N4 15-10859 J RESTRICTIONS ON USE: TECHNICAL MICROFORM DATA FILM SIZE: ^fmfC) REDUCTION RATIO: ^ IMAGE PLACEMENT: lA ( ilA j IB MB DATE FILMED: TRACKING # : \\-\^^ INITIALS: w.w MSff 0%ZO^ FILMED BY PRESERVATION RESOURCES. BETHLEHEM, PA. % w GO CJl 3 3 O > IS N C/) CJl ^-< OOISI O 01 3 3 > o m (DO OQ ^ o o C/5 X < N X M ^iw ^K"^ .'^/ ^4 <^^ %y^ 'V^ '« u O 3 3 J^/ > A*/ 'V/ .•b^ a? 8 3 3 N5 O r^EEElSlJI" np. CO O^ 00 ro b ro ro ro bo 10 In 1.0 mm 1.5 mm 2.0 mm ABCDEFGHIJKLMNOPQRSTUVWXYZ abcde(ghijklmnopqrstuvwxy2l234567890 ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyzl234567890 ABCDEFGHIJKLMNOPQRSTUVWXYZ ' ;hiiklmnopqrs1 1234567890 abcdefghijklmnopqrstuvwxyz 12: ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 2.5 mm 1234567890 ^o f^ 2 O o -o m "o > C CO I n ^ m 33 O m <-^ <^ * 1— » 10 CJl 3 3 3 3 5.0 IS I J2S 8 fS If li 5 O ISJi ODIM 8 V ^T 1 i\ T^^^ Columbia ©nibersiitp LIBRARY -\-^^ A METHOD OF DETERMINING COSTS IN A COTTON MILL By henry W. NICHOLS, A. B, NEW BEDFORD, MASS. E. Anthony & Sons, Inc., Printers 1915 i3« 1«i COPYRIGHT 1915 BY HENRY W. NICHOLS PEEFACE That there has been felt for some time the need of a work describing an accurate method of determining costs in a cotton mill, is very evident to anyone in touch with the textile field. It is a subject concerning which there is much misapprehen- sion, the term cost finding being applied, in some cases, to the methods adopted when seeking a figure to use as a quotation on a new fabric the mill has been asked to quote upon. It is evidently not realized, in a case of this kind, that such a figure can be but an estimate, the person, no doubt, thinking that by some subtile means the mill can determine the cost to a nicety, regardless of the costs of any previously manufac- tured goods. Nothing could be further from the facts in the case. If a mill is to figure on a fabric that it has not previous- ly manufactured, it must, of necessity, base its quotation on costs previously determined, although such costs may be for goods differing in construction from the ones on which it is to estimate. Such quotations must, in the nature of the case, be estimates only, and their degree of accuracy is in direct proportion to the accuracy with which the costs of goods pre- viously manufactured have been determined. The need, therefore, of an accurate method of determin- ing costs is readily apparent, since not only are the cost figures of vital interest when considering goods already manu- factured, but they become of equal, if not more, importance when using them on which to base quotations for new fabrics ; if these previous costs are not correct, one cannot expect the new figures to be accurate. Indeed, one does not make too strong a statement by saying that a good method of ascertain- ing the cost of the manufactured product, is the best founda- tion on which to build the efl&ciency and economy of a mill. It is weU to consider here what this term **Good method" embraces, when applied to the cost figures of a cotton mill. There can be no argument with the statement that a method, to be of any value, must first of all be accurate, although there may be considerable difference of opinion as to the methods to be adopted to obtain this accuracy, and also as to the degree of accuracy desired. However, it would appear that a method of cost finding, to be accurate, should contain one main feature; namely, that all the cost of any one article shall fall on that article alone. This result, manifestly, cannot be obtained by any system of averages, no matter how ingenious- ly devised and carried out. Averages are simply what their name implies, no more, no less; and they cannot, under the best of conditions, give accurate information concerning any separate fabric, but can only treat the product as a whole. The writer was much interested in hearing described, some time ago, the method adopted in determining costs in a large department store : how the concern is divided into its separate departments and how each department, although it may be no more than a glove counter, or a handkerchief counter, is considered as a store in itself and has charged to it the proper amounts for rental, advertising, heating, light- ing, and so on. It may be a far cry from a department store to a cotton mill, and yet there is this analogy : a cost system in a cotton mill, to be accurate, should treat each style of goods being made, exactly as a department store treats its separate departments; and there should be fastened to each distinct style its proper amount of all manufacturing expense, no matter whether this expense be for labor, raw material, or any one of the numerous other items incidental to manufacturing. In the second place, a cost system, to be of use, must not only be accurate but must also be so devised that it will be readily adaptable to the mill in which it is to be used. A manufacturing concern would not, ordinarily, consider a comparatively small additional outlay, if by so doing it could obtain accurately the manufacturing cost of each of its different products. On the other hand, if to obtain this information means radical changes in its methods of operation, with consequent friction in its various departments and loss in production, the mill would naturally be very much inclined to consider that the benefits to be derived from knowing accurately the costs would hardly compensate them for the interference with their organization. For this reason, any method of cost accounting, to be of value to a cotton mill, should be handled from the oflSce end almost entirely. There are methods under which considerable of the work falls upon the heads of the different manufacturing departments, but such work cannot rightly be considered a part of the duties of a department head. The two prime requisites of the manufacturing end are keeping up the production and keeping down the expense. Anything that tends to interfere with these two aims must be looked at askance. In dealing with this subject of cost finding, the writer has endeavored to keep within the limits demanded by the above- mentioned requirements. To some, the methods advocated may seem tedious and involved ; but in any such case it should be understood that a description, to be of value, must deal with the subject in considerable detail, and that the actual putting into practice of the method described is frequently a much shorter operation than would appear possible from reading a description of the same. A system such as here described, can be readily handled in a mill of average size by one person devoting only a portion of his time to it, and certainly the results would justify any such outlay. The method of cost finding, illustrated in this work, must not be taken to fit all cases. No one method can do this, since conditions vary greatly with different mills. It has been the aim to illustrate the essential principles underlying an accurate cost system, and it is left to the reader to apply them in the manner most suitable to his own case. It cannot be too strongly advised that those having charge of such work have a good general knowledge of all departments of the mill, since only in such case can one intelligently size up the different situations constantly arising in a mill today, any one of which may alter the details of the work. 5 In this connection it is not out of place to state that the yonng men being turned out by the textile schools of the country are peculiarly adapted to such work. They are as a rule men of a good general education, and, having completed a course in a textile school, they are able to grasp the aim of such work and adapt it to the different conditions they meet with. The figures dealt with in this book are based on the production for one week of fifty-four hours and not for a quarter, as would be the case in actual practice. For the purpose of illustration, this answers all requirements equally well, and at the same time gives the production and pay for a period more readily grasped by the reader. While these figures for production and pay are of minor importance, the chief aim being to describe a cost system, yet the writer has endeavored, in all cases, to keep within the bounds prescribed by good mill practice. Henry W. Nichols. New Bedford, Massachusetts, 1915. A Method of Determining Costs in a Cotton Mill 6 INTEODUCTORY In establishing a method of cost finding in a cotton mill, it is first essential to divide the different departments, and also the different operations in each department, into what may be termed units, each separate unit to embrace only those machines that perform similar functions and through which the stock passes in practically the same manner. Thus, all the machinery directly connected with the pick- ing operation may be considered as a unit by itself. The same is true of the carding, also of the drawing, and so on, since in each of these cases the conditions of pay and running are practically the same. To cite an opposite case, in a mill operating both plain and fancy looms, it would not be correct to consider all the weaving as one unit since the conditions are not the same on both kinds of looms ; a fixer does not have as many looms in his section if he is on fancies as is the case if he is on plain work; a fancy loom requires more supplies than a plain loom ; and many other conditions will be found to vary in different mills. Consequently, in such cases, the plain looms must be considered as one unit by themselves, while the fancy looms should be considered another and distinct unit. These different units will, of course, be found to vary with different mills, since mills differ widely in their organiza- tions; consequently, no list can be given that will cover all circumstances. In case the reader has occasion at any time to make such a division of a mill, the only advice that can be Ill I given is what has been stated above with, perhaps, the addi- tional advice that in case of any serious doubt as to whether a certain portion of the mill should be made a separate unit or incorporated with some other unit, then the safe method to follow is to make of that portion a distinct unit, since this cannot in any way effect the accuracy of the figures. After the different units into which the mill is to be divided have been determined, there must be obtained several items, these items being as follows : a — Floor space occupied by each unit. h — Cost of floor space occupied by each unit. c — ^Value of machinery in each unit. d — Power required to drive the machinery in each unit. Item h should include not only the cost of the construction of that part of the building occupied by the unit, but also the installation of all apparatus that may rightfully be considered as a part of the building. These are the heating, lighting, fire protection and humidifying. Item c should include not only the cost of the bare machin- ery in the unit, but also such other items as the cost of erect- ing, cost of shafting and transmission, supplies for starting: in short, everything necessary to put the machinery into run- ning order. In case an accurate cost system is established at the time the mill is built, it is a simple matter to divide the cost of construction and machinery in such a way that the cost of any particular unit will fall upon that unit. Should, however, such a cost system be started some years after the mill is built, then it is a much more difficult problem and, in the case of many items, estimates only can be obtained. It is, never- theless, absolutely necessary that the mill be split into its several units and the several items obtained for each unit in as correct a manner as possible, if accurate cost figures for manufacturing are to be obtained. The mill that will serve to illustrate the methods to be described in this work, is a suppositional cloth mill of approx- imately 67,000 spindles, running on both carded and combed Unit Floor Space % Cost of Floor Space % Cost of Machinery % H. P. % Office 5000 1.78 10000.00 3.00 . Picking 5198 1.85 5156.41 1.55 12371.75 1.24 80 3.41 Carding 10824 3.85 10607.52 3.19 56580.27 6.96 98 417 Combing 7538 2.69 7387.24 2.21 49060.00 6.04 32 1.86 Drawing 2328 .83 2281.44 .68 7288.50 .90 15 .64 Stubbing 1600 .57 1568.00 .47 5111.52 .63 10 .43 First Int 2100 .75 2058.00 .62 9509.72 1.17 15 .64 Second Int 4284 1.52 4198.32 1.26 31211.52 3.84 50 2.13 Jacks 17160 6.10 16816.80 5.05 86088.74 10.59 180 7.66 Warp Spinning 38200 13.58 37436.00 11.24 108845.96 13.51 740 31.50 Filling Spinning 34600 12.30 33908.00 10.20 98847.00 12.16 520 22.12 Spooling 5200 1.85 5096.00 1.53 4923.00 .61 8 .34 Twisting . 6336 2.25 6209.28 1.86 17820.00 2.19 90 3.83 Warping 5376 1.91 5268.48 1.58 6090.20 .75 5 .21 Slashing 4158 1.48 4074.84 1.22 4870.00 .60 6 .25 Drawing-in 2680 .95 2626.40 .79 396.87 .05 Plain Weaving 51860 18.44 84272.50 25.30 120245.68 14.79 250 10.65 Fancy Weaving 37224 13.24 60489.00 18.16 91406.80 11.24 230 9.80 Cloth Room 3600 1.66 3528.00 1.06 4190.00 .52 10 .43 Machine Shop 2585 .92 2533.30 .76 5000.00 .62 10 .43 Power 9460 3.36 18920.00 5.68 94228.00 11.59 Storage 24000 8.50 8640.00 2.59 Total 281311 100. 333075.53 100. S14085.53 100. 2349 100. NOTE : The dollar sign is not used in this work. In all figures representing dollars and cents, the decimal point comes between the dollars and cents. 8 work and selling its cloth in the grey. The units into which this mill has been divided are shown on page 9, while on the same line with each unit is shown the floor space; cost of floor space; cost of machinery, if any; also amount of H. P. required to drive the machinery, if any. There will also be noted a per cent, column attached to each item. This shows what per cent, each item bears to the total of its own column. For instance, take the column having the heading ** Floor space''; the total of this column is 281,311, which is the number of square feet occupied by all the units. The office occupies 5,000 sq. ft. ; then 5,000^281,311 gives the percentage that the floor space of the office bears to the total floor space, or 1.78%, which number is found under the per cent, column next to the floor space, and on the same line with ** office". 10 Part I LABOR COSTS Cabd Room Having split the mill into its different units and attached to each unit the necessary items, we are prepared to take up the reports from the various departments, both as regards production and pay. In this connection, it is important to note that all reports, with which the person figuring costs has to deal, should be so made up that the different items required may be readily drawn off, and by this means eliminate any needless labor. It is also essential that the person having this work in charge should have a good working knowledge of the organization of his mill, and thus be able to analyze any changing condi- tions that may arise. The layout of the work in the card room is shown on the following page, and since it is necessary to have a thorough understanding of this layout in order to comprehend the divi- sions that will be made when determining the costs, a brief description is given. There are eight different numbers of hank roving being made on the jacks— 8, 10, 12, 14, 16, 18, 20 and 25. This does not, however, exhaust the divisions that should be made, since some of the same numbers are being spun from different stock ; while in one case, that of the 10 hk., not only is it made from different stock, but also some of it is carded and some of it combed. These different conditions must be taken into considera- tion, and each division contain only that hank that is made from the same stock, run through the same machines, and 11 stock. Picker. Cards. Combers Drawing. Slubbers. 1st. Int. 2d. Int. Jacks. 1% 12 oz. 50 grs. Ca rded Wo 60 grs. rk .60 hk. 1.04 hk. 2.6 hk. 8hk. 1% 12 oz. 50 grs. 60 grs. .60 hk. 1.35 hk. 3.5 hk. 10 hk. 1% 12 oz. 50 grs. Co 55 grs. mbed Wo 60 grs. rk .60 hk. 1.35 hk. 3.5 hk. 10 hk. 1% 12 oz. 50 grs. 55 grs. 60 grs. .60 hk. 1.35 hk. 3.5 hk. 12 hk. 1%E. 12 oz. 50 grs. 55 grs. 60 grs. .60 hk. 1.35 hk. 3.5 hk. 10 hk. 1% E. 12 oz. 50 grs. 55 grs. 60 grs. .60 hk. 1.65 hk. 4.95 hk. 14 hk. 1% 12 oz. 50 grs. 55 grs. 60 grs. .60 hk. 1.65 hk. 4.95 hk. 14 hk. 1% 12 oz. 50 grs. 55 grs. 60 grs. .60 hk. 1.65 hk. 4.95 hk. 16 hk. 1% 12 oz. 50 grs. 55 grs. 60 grs. .60 hk. 1.65 hk. 5.25 hk. 18 hk. 1% 12 oz. 50 grs. 55 grs. 60 grs. .60 hk. 1.65 hk. 5.25 hk. 20 hk. 1 % s. i. 12 oz. 50 grs. 55 grs. 60 grs. .6.0 hk. 1.65 hk. 5.25 hk. 18 hk. Ihk B. i. 12 oz. 50 grs. 55 grs. 60 grs. .60 hk. 1.65 hk. 5.25 hk. 20 hk. 1^ s. i. 10 oz. 40 grs. 50 grs. 55 grs. .70 hk. 2 hk. 6.6 hk. 25 hk. l%e E 10 oz. 40 grs. 50 grs. 55 grs. .70 hk. 2 hk. 6.6 hk. 25 hk. that has the same weight on each machine. Thus, in the layout there are fourteen different hank rovings listed, no two of which are run under exactly the same conditions, although in several instances the same number of hank roving is being turned out at the jacks. In any production report from the card room, that is to be used when determining costs, the production of each of these different hank rovings must be listed separately, no two being combined. It is not, however, necessary, when making out the pay roll, to make the divisions shown in the layout, since all the 10 hanks, for instance, may be grouped when indicating the 12 amount of pay ; providing, however, that the piece-work price is the same in each case. The production sheet of the card room shows the follow- ing, this production being for one week, and showing what is produced at the jacks : 1% 1^ 1% 1% l^E 1%E 1% 1% 1% 1% l%s.i. l^s.l. l%s.i. l^oE Hank. Carded Work 8 10 Combed Work 10 12 10 14 14 16 18 20 18 20 25 25 Pounds Run. 3107 4092 2051 6295 2547 255 1374 2857 1230 235 1066 101 1494 785 Using the production report, together with the layout of the card room, the figures should be assembled in such a way that the production of any weight or hank, at any one of the units, may be readily determined. These production figures will, of course, show the production turned out at the jacks and not at the machine for which the figures may be given. There is no practical method of determining accurately the number of pounds any one machine in the card room may be turning out, and this is not necessary, as the pounds produced 13 at the last process or, in this case, the jacks, answers all purposes. Such a sheet is shown on page 15. Eeferring to this page, the production of any one of the weights, at any- machine, is readily seen. For instance, on the cards, 25,210 lbs. of the roving produced at the jacks was run through the cards as 50 gr. sliver, while 2,279 lbs. was 40 gr. sliver. These divisions are used constantly in later figures, and will be referred to frequently. The pay roll is given on pages 16 and 17. This is divided into day work and piece work ; also, the portion deal- ing with the day work is so arranged that the total for any one unit may be readily drawn off. For instance, the total for general expense is 79.27 ; for picking, it is 30.76 ; and so on. Having this sheet arranged in this manner facilitates the work of the one who is to use these figures and who must obtain them from the pay roll. There has now been given sufficient information with which to determine the labor cost at any unit in the card room. It may be stated here that the term labor cost embraces all expense for labor that comes in direct contact with the product as it passes through the different manufacturing processes. Cost, per lb,, at pickers: — ^If all the cotton should be passed through the pickers at practically the same rate of production, the labor cost, per pound, could readily be deter- mined by dividing the total labor pay on pickers by the pounds produced (the pounds produced referring, in all cases, to the pounds turned out at the jacks). Should, however, there be a different rate of production on the different kinds of cotton being nm, it would not be correct to say that all the cotton is costing the same per lb. to run. The picking cost, however, is so small that results would hardly justify one in making a separation, unless, indeed, the circumstances should be exceptional. In order, however, to illustrate all cases, wherever there is any difference in the theoretical production of any one unit, it will be assumed that a separation is to be made. 14 HANK ROVING AND STOCK IH 8hk VA lOhk K VA lOhk c VA E lOhk VA 12hk VA E 14hk 1% 14hk 1% 16hk 1% 18hk 1% s.i. 18hk 1% 20hk V/2 s.i. 20hk 1^ s.i. 25hk 1%6 E 25hk Total Picker 12 oz.. 3107 4092 2051 2547 6295 255 1374 2857 1230 1066 235 101 25210 10 oz.. 1494 785 2279 Cards eOgrs. 3107 4092 2051 2547 6295 255 1374 2857 1230 1066 235 101 25210 40grs. 1494 785 2279 Combers 55grs. 2051 2547 6295 255 1374 2857 1230 1066 235 101 18011 50grs. 1494 785 2279 Drawing 60grs. 3107 4092 2051 2547 6295 255 1374 2857 1230 1066 235 101 25210 55 grs. 1494 785 2279 Slubbers .60 hk. 3107 4092 2051 2547 6295 255 1374 2857 1230 1066 235 101 25210 .70 hk. 1494 785 2279 let Int 1.04 hk 3107 3107 1.35 hk 4092 2051 2547 6295 14985 1.65 hk 255 1374 2857 1230 1066 235 101 7118 2hk... 1494 785 2279 2d Int. 2.6 hk 3107 3107 3.5hk 4092 2051 2547 6295 14985 4.95 hk 255 1374 2857 4486 5.25 hk 1230 1066 235 101 2632 6.6hk 1494 785 2279 15 Cabd Eoom Pay Eoll — Day Work Position Hrs. Rate Amount Total Overseer 64 .6666 36.00 Second hand 64 .3171 17.12 Elevator man 64 .1412 7.62 Scrubber 64 .1178 6.36 Sweeper 64 .0855 4.62 Waste man 64 .1398 7.55 79.27 Boss picker 64 .1846 9.97 3 Picker tenders * 162 .1283 20.79 30.76 Boss grinder 64 .2460 13.28 « Ass't grinder 64 .1733 9.36 4 Strippers 216 .1475 31.86 54.50 Doubler tender 64 .1398 7.55 . 2 Ribbon tenders 108 .1398 15.10 Boss comber 64 .3171 17.12 3d Hand combers 64 .1927 10.41 5 Comber tenders 270 .1691 45.65 95.83 3 Drawing tenders 162 .1347 21.82 21.82 3d Hand slubbers 54 .1927 10.41 2 Back tenders — 1st int. 108 .0962 10.39 3d Hand roving frames 64 .2343 12.65 •. 2 Roving men 108 .1347 14.55 2 Speeder oilers 108 .1347 14.55 62.55 • 344.73 Card Room Pay Roll — Piece Work Hank Roving. Amount. .60 20.98 .70 2.23 1.04 1.83 1.35 15.40 1.65 9.37 2.00 3.62 2.6 5.30 3.5 34.73 4.95 17.63 5.25 10.96 6.6 12.22 8. 14.42 10. 53.43 12. 48.34 14. 15.85 16. 33.83 18. 32.24 20. 6.02 25. 53.30 Total piece work, 391.70 Total day work, 344.73 Total card-room pay roll. 736.43 16 17 In the case of the mill being used as an illustration, the theoretical weekly production of a picker on 10 oz. laps is taken at 8,640 lbs., and on 12 oz. laps, at 10,260 lbs. The labor cost on the pickers is 30.76, and it is necessary to split this amount between the two different weights being ran. Since the more pounds the picker turns off in a given time, the smaller is the cost per pound, the reciprocal of the numbers, showing the theoretical production, must be used when obtaining the percentage that the cost of each bears to the whole. 100 is divided by each of the numbers representing the theoretical production, and each result multiplied by its own pounds run. The percentage that any one* of these latter results bears to the sum of the results, gives the percentage of the labor cost chargeable to its production. This is more fully illustrated in the following figures, which give the labor cost per lb. on picking. 100-^8640 (theoretical production on 10 oz. laps) =.01157 .01157X2279 (lbs. run)=26.36 100-7-10260 (theoretical production on 12 oz. laps) =.00974 .00974X25210 (lbs. run)=245.54 26.36+245.54=271.90 26.36^271.90=.097 or 9.7% to be charged to 10 oz. work. 245.54--271.90=.903 or 90.3% to be charged to 12 oz. work 9.7% of 30.76 (labor cost)=2.98 90.3% of 30.76=27.78 2.98 (cost)^2279 (lbs. run)=.001308 labor cost per lb. for picking on 10 oz. work. 27.78 (cost)--25210 (lbs. run)= 001102 labor cost per lb. for picking on 12 oz. work. Cost, per lb,, at cards:— In the carding, also, the theo- retical production varies with the different stocks run, and what was stated under picking cost in regard to taking this point into consideration, applies equally well here. In figur- ing the cost on the cards the theoretical production will be considered, and dealt with in exactly the same manner as with the pickers, giving, however, no explanations of the mathematical work. The theoretical production on the cards, for the various weights being run, was taken as follows : 18 Grains IVs Carded 1% Combed 1% ly^E 1% l%s.l iy2S.L IV2S.I V/ie E 50 40 500 450 470 475 390 865 310 256 378 The pounds run of each group are obtained from the sheet shown on page 15, while the following figures, which show the cost per lb. of each, are carried through in ex- actly the same manner as was done under picking. Theo. Prod. lbs. run ■ ^0 Total Cost Propor- tional Cost lbs. Cost per. lb. 100^ 256— .391X 1494- 584.15= .09X 54.50- 4.91-i- 1494— .003286 100-;- 378= .264X 785- 205.24= .032X 1.74-^ 785= .002216 100-;- 500- .2 X 3107- 621.40- .096X 5.23-^ 3107= .001683 100-^ 450= .222X 4092- 908.42= .14X 7.63-^ 4092- .001864 100-^ 470- .213X 8346- 1777.70— .275X 14.99^ 8346- .001795 100-^ 475- .21 X 2802= 588.42= .091X 4.96-^ 2802- .001770 100-^ 390- .256X 5696- 1458.28= .225X 12.26-f- 5696= .002152 100-^ 365- .274X 1066- 292.08= .0451X 2.46-^ 1066= .002307 100-^ 310- .322X 101= 32.52= .0051X .48-^ 101= .002772 Cost, per lb,, at combers: — The combing unit presents another instance where the theoretical production may be employed if thought best; otherwise the cost per lb. is ob- tained by dividing the total amount paid for combing, by the pounds run. In this case the theoretical production will be considered, this production being taken as follows : Grs. IV4 1%E 1% l%s.l. l^s.i. l%s.i. l%eE 55 50 800 800 800 700 700 650 800 Referring to the table shown on page 15 to obtain the number of pounds run, in each of the above groups, also taking from the pay roll the amount expended for combing, the following figures are obtained: 19 Theo. Prod. lbs. run % Total Cost Propor- tionaf Cost Ibs. Cost per lb. 100-^ 650- .154X 1494= 230.08= .0884X 95.83= 8.47-J- 1494= .005670 100-*- 800= .125X 785= 98.13= ^ 100-J- 800- J25X 8346- 1043.25- 100+ 800- .125X 2802- 350.25= .8474X 95.83= 81.20-!- 17629- .004606 100-s- 800= .125X 5696- 712.00= 100-i- 700= .143X 1066= 152.44= -. 100-4- 700= .143X 101= 14.44= .0642X 95.83- 6.15-s- 1167= .005270 Taking each hank by itself, on all roving frames, and treating as above, the following is obtained : Cost, per lb., at draw frames :— The drawing cost is so small that, even with some of the work on two process and some on three, one would hardly be justified in making any division. None will be made here, the cost on the draw frames simply being divided by the pounds run in order to obtain the cost per lb. 21.82 (cost on draw frames )h-27,489 (lbs. run)= 000794, cost per lb. Cost, per lb,, at roving f rames :— Under this heading there is met, for the first time, labor that divides itself into two groups, due to the methods of payment. First, there are the operatives who run the machines and are paid by the piece or, in other words, according to the amount of work turned off ; there are also those operatives whose work brings them in contact with the different frames and who are paid by the day ; these are the oilers, roving men, doffers and so on. Considering first those operatives who are on piece work; each operative deals directly with a particular hank roving and it is a simple matter to determine the cost per lb. of each hank on this work, provided the production reports show the pounds run on each hank and the pay roll shows the amount paid for piece work on each hank, both of which points should be provided for. Taking up first the .60 hk. roving on the slubbers ; the pay roll shows a total of 20.98 expended for piece work on this count, and the production report shows a total of 25,210 lbs. run on this count, then 20.98-^25,210=.000832, cost per lb. of piece work on .60 hk. 20 Hank. Pay. Pounds Run. Cost per lb. .60 20.98 25,210 .000832 .70 2.23 2,279 .000978 1.04 1.83 3,107 .000589 1.35 15.40 14,985 .001028 1.65 9.37 7,118 .001316 2.00 3.62 2,279 .001588 2.6 5.30 3,107 .001706 3.5 34.73 14,985 .002318 4.95 17.63 4,486 .003930 5.25 10.96 2,632 .004164 6.6 12.22 2,279 .005362 8. 14.42 3,107 .004641 10. 53.43 8,690 .006148 12. 48.34 6,295 .007679 14. 15.85 1,629 .009729 16. 33.83 2,857 .011841 18. 32.24 2,296 .014042 20. 6.02 336 .017917 25. 53.30 2,279 .023387 Apportioning day labor on roving frames: — There are three methods generally adopted when splitting the cost of day labor on the roving frames, (a) according to the number of spindles, or frames, on each hank (the term hank here in- dicating the final hank roving produced by the last roving process), (b) according to the production on each hank, and (c) according to the total piece work cost of each hank on the roving frames. 21 ^f^^ No one of these methods can be said to fit perfectly aU cases of day labor. Take, for instance, the oilers and doffers. In the case of the oilers, the number required depends directly upon the number of frames or spindles being run, and the cost of this labor may be correctly apportioned on this basis. In the case of the doffers, however, this is not true, since a frame on a fine hank does not require as much attention from this class of abor as does a frame on a coarser hank. The cost of this labor would be more correctly apportioned if based on the pounds produced. To work out each class of day abor according to a different percentage basis would entail labor hardly justified by the results that would be ob- tamed. The difference in any case would be very slight It remams therefore, to select that one of the three methods that best fits the varying conditions. The spindle basis, also the production basis, have been touched upon and there re- mains the cost basis. If the total pomids produced of each different hank on the jacks, is multiplied by the total piece work cost per lb. on all roving frames, of that hank, and these results used as a percentage basis on which to apportion the day labor cost, then both the number of spindles and the pounds run will have an influence on the result, since the number of spmdles it takes to turn out a given production, in a given time, governs the piece work cosfper lb., while the pounds produced are directly used. Taking into considera- tion all the conditions that are to be met, there is no better smgle method of apportioning the day labor cost on the roving frames than by the cost method. Instead however, of finding the total piece work cost of each of the different hanks being made on the jacks, as men- tioned above, the same results are obtained, and with much less work, by finding what per cent, the cost of day work bears to the piece work cost, and then adding that per cent, to the piece work cost per lb. on each hank. First find the total cost per lb. of all piece work on all the roving frames for each of the different hanks being made on the jacks The following table shows this, the piece work cost per lb. given for the different frames being those pre- viously obtamed : ^ 22 Machine. 8hk. 10 hk. 12 hk. 14 hk. 16 hk. 18 hk. 20 hk. 25 hk. Slubber. .000832 .000832 .000832 .000832 .000832 .000832 .000832 .000978 1st Int. .000589 .001028 .001028 .001316 .001316 .001316 .001316 .001588 2nd Int. .001706 .002318 .002318 .003930 .003930 .004164 .004164 .005362 Jack. .004641 .006148 .007679 .009729 .011841 .014042 .017917 .023387 Total for piece work .007768 .010326 .011857 .015807 .017919 .020354 .024229 .031315 The day work cost on roving frames, as shown by the pay roll, is 62.55, while the total cost of piece work on the roving frames, also shown on the pay roll, is 391.70. Divid- ing the day pay by the piece work pay gives the percentage that must be added, for day pay, to cost per lb. of piece work on each hank. 62.55--391.70=.15969 or 16%. Take the 8 hk., for an illustration, the total piece work cost on roving frames for the 8 hk. is .007768, 16% of .007768 is .001242 which, added to .007768 gives .009010 as the total cost per lb. of all work on the roving frames. Taking each hank roving produced on the jacks, and treating in the same way the following is obtained :- 8hk. 10 hk. 12 hk. 14 hk. 16 hk. 18 hk. 20 hk. 25 hk. Piece work cost, per lb. 16%= .007768 .001242 .010326 .001652 .011857 .001897 .015807 .002529 .017919 .002867 .020354 .003256 .024229 .003876 .031315 .005010 Total cost per lb. on rov. frames .009010 .011978 .013754 .018336 .020786 .023610 .028105 .036325 There remains to be distributed the expense that is general to the whole room, such as the pay for the overseer, second-hand, and so on. As shown by the pay roll this amounts to 79.27. As this labor is general to all the room, it is best distributed on a percentage basis, obtained by dividing this amount by the total of all other costs. This method is the same as the one explained in connection with the distri- bution of the day labor on the roving frames. Since the cost of the whole room is being used, there must be as many divisions of the hank rovings as are required by the different costs on the various machines. 23 «i The total pay roll of the card room amounts to 736.43. Of this amount 79.27 is for the general expense that is to be distributed. Then 736.43-79.27, or 657.16 is the amount of the pay already distributed. Dividing 79.27 by 657.16 gives the per cent, that should be added to the cost per lb., so far obtained, of the different hanks. 79.27^^57.16=.1054 or 10.54%. The summary of the costs in the card room, together with the addition of the 10.54%, is shown in the followins: table. The mathematical accuracy of the figures, up to this point, may be checked, if desired, by multiplying the total cost per pound of each hank, by the pounds produced of that hank, and adding the results thus obtained. This sum should be the same as the total of the card room pay roll, allowing a few cents one way or the other for the incompleteness of the decimals. If the 8 hk. had been run three process, instead of four, the methods that have been followed would have applied equally well. In case any of the roving frame tenders are not paid on the piece work basis, then the cost on those frames may be obtained by following the method described under * * Spinning Room.'' Carded r ^ Machine 1% 8hk. 1% 10 hk. 1% 10 hk. 1% E. 10 hk. 1% 12 hk. .001102 1% E. 14 hk. Pickers .001102 .001102 .001102 .001102 .001102 Cards Comber .001683 .001864 .001795 .004606 .001770 .004606 .001795 .004606 .001770 .004606 Drawing .000794 .000794 .000794 .000794 .000794 .000794 Roving .009010 .011978 .011978 .011978 .013754 .018336 Total .012589 .015738 .020275 .020250 .022051 .026608 10.54% = .001327 .001659 .002137 .002134 .002324 .002805 Total cost per lb. in card room .013916 .017397 .022412 .022384 .024375 .029413 1% 14 hk. 1% 16 hk. 1% 18 hk. 1% s.i. 18 hk. 1% 20 hk. 1 % 8.i. 20 hk. 1 % s.i. 25 hk. l%eE 25 hk. .001102 .001102 .001102 .001102 .001102 .001102 .001308 .001308 .002152 .002152 .002152 .002307 .002152 .002772 .003286 .002216 .004606 .004606 .004606 .005270 .004606 .005270 .005670 .004606 .000794 .000794 .000794 .000794 .000794 .000794 .000794 .000794 .018336 .020786 .023610 .023610 .028105 .028105 .036325 .036325 .026990 .029440 .032264 .033083 .036759 .038043 .047383 .045249 .002845 .003103 .003401 .003487 .003875 .004010 .004994 .004769 .029835 .032543 .035665 .036570 .040634 .042053 .052377 .050018 24 25 Spinning Boom The miU being used as an iUustration has ring frames only. As the stock passes from one department of the mill to another, it is absolutely necessary, in order to have a clear understanding of the methods adopted when finding the costs, to have clearly in mind the organization of the mill. By this means only can one attach the costs of one department to the proper product in another department. The different yams being spun in the spinning room also the different rovings and stock used for each yarn, are shown in the following table : Hank Roving and Stock. 8 hk. — 1 % carded 10 hk. — 1% carded 10 hk. — 1^ combed • 10 hk. — 1 ^ E. combed 12 hk. — 1% combed 14 hk. — 1% E. combed 14 hk. — 1% combed 16 hk. — 1% combed 18 hk. — 1% combed 18 hk. — 1 % a.1. combed 20 hk. — 1% combed 20 hk. — 1% s.i. combed 25 hk. — 1 %e B. combed 25 hk. — 1% 8.1. combed Warp. 35s 40s 45s 50s 45s hard twist 55s 60s 65s hard twist 70s 80s 908 Filling. 40s 50s 458 60s lOOs 120s 708 75s 85s 90s 100s 120s hard twist 120s 130s The production report of the ring spinning room should always show the different counts being run, the number of spmdles on each count and the pounds run on each count The production sheet is as follows : 26 Warp Fttjjng Counts. Spindles. Pounds. Counts. Spindles. Pounds. 35s 2465 2507 40s 131 118 40s 496 420 45s 2588 1887 45s 1121 817 50s 5142 3193 45s hard twist 1330 609 60s 2560 1221 50s 3237 2010 70s 1376 520 55s 3570 1960 75s 3234 1106 608 6148 2988 85s 1518 437 65s hard twist 926 250 90s 2330 608 70s 2188 827 100s 1022 230 80s 5374 * 1693 120s 1105 190 90s 4463 1205 120s hard twist 6111 770 100s 444 100 130s 4745 688 120s 3433 587 Totals 35195 15973 31862 10968 The pay roll of the spinning room is as follows Position. Amount. Overseer 33.00 Second-hand 18.00 6 Section hands 69.60 1 Oiler 9.00 2 Roving men 19.00 10 Doffers 64.80 14 Cleaners 87.50 2 Banders 16.00 1 Scrubber 5.80 322.70 Spinners: — Warp - Filling- -275 sides @ .0161=239.08 -249 sides @ .0183=246.06 27 485.14 !i, i- Cost finding in the spinning room adapts itself to the spmdle basis more readily than in any other department of the mill. With practically every division of the help it holds true that the number employed depends directly upon the number of frames, or in other words, the number of spindles in the room. Thus, the number of section hands, the number of oilers, the number of cleaners and so on, are in all cases determmed by the number of spindles. There is, however an exception to this general rule, namely, the doffers, since the class of work, rather than the number of spindles, may more correctly be said to govern the number employed. To make a distmction in the distribution of the cost of this one item would hardly be justified by the results obtained, and it con- sequently may be stated that there is no better method of handling the cost in the spinning room than on the spindle basis. Referring to the pay roll of the spinning room, the price paid the spinners is slightly more on the filling than on the warp, and it is, therefore, necessary to keep these two classes of work separate when finding the cost per spindle. The method adopted may be summarized as follows :• Let A=number of spindles on warp. B= «' " «« « filling. C=cost per spindle of general expense. D== " <' << (< Then Total cost of general expense -4- (A + B)=C. Total cost of spinners on warp -=- A=D. Total cost of spinners on filling -f- B=E. C + D=total cost per spindle on warp. *■ C -I- E=total cost per spindle on filling. After having obtained the cost per spindle, the cost per pound of any count of warp, or filling, is obtained by multi- plying the total number of spindles run on that count, by the cost per spindle of the warp yam, if it is a warp yam being dealt with ; or if it is filling, then the cost per spindle of the filling is used. The result thus obtained is divided by the 28 spinners on warp. " " filling. OQ 00 i I i o CO la I § 3 m ^ CO o t> o> 00 g CO CO o JO 00 N P »-l 00 CO o 5 ^ §8 «o CO ^ t- 00 CO IS 00 00 5 QQ "3 r/s ^ CO r^ Oi o 00 O] 00 lO n'g to th thW^ «o o en <« hfM 00 o ^^1 s ^ -•s.^ He-i O) »^ ^ JS •^ i-t 00 ^ 1-4 1-1 OD CO i 00 OQ 00 la s § OQ 2 til > ZQ Qh 00 '-^ u S. J 6 29 SS o o 3> I ^ f^ e/\ ^ CO 1-1 § OQ ?2 00 Ud CO 8 1 — < 8^ ^ Cj Cj 00 l-l iH lO 00 00 § QQ OQ t- i 88 00 1-1 1-t o ^ ;a 22 O 00 tH ^ tH iH 1-1 1-( o 00 § ■M w y ^ S bo I .s ? (1, d 00 0) 00 "♦J OQ o O in pounds run on that count and this result gives the cost per pound of that yam. Take the case of the mill being used as an illustration, the pay roll shows a total of 322.70 as the cost of the general help; 239.08, cost of spinners on warp, and 246.06, cost of spinners on filling. There are 35,200 spindles on warp yarn and 31,872 spindles on filling yam, making a total of 67,072 spindles. Then, 322.70-T-67,072=.004811 cost per spindle of general help. 239.08-f-35,200=.006792 cost per spindle of warp spinners. 246.06^31,872=.007721 cost per spindle of filling spinners. .004811+.006792= 011603 total cost per spindle on warp. .004811+.007721= 012532 total cost per spindle on filling. K now, the cost per pound of the 35s warp yam is to be determined, the equation will be .011603 (cost per sp. on warp) X2465 (spindle s run on 35s) 2507 (pounds of 35s warp produced) equals .011408, spinning cost per pound of 35s warp. The table on page 29 shows the cost per pound in the spinning room, of the different yams being run, and in each case the result has been worked out in the above manner. Wabp Pbepabation Eoom The methods of handling the warp yam, after it leaves the spinning room, varies with different mills. In the case of the mill being used as an illustration, it will be assumed that the processes of spooling, twisting, warping, slashing and drawing-in are included in one department and under one overseer. The pay roll of this department is shown on page 31. Before the different sub-divisions of this department can be taken up separately, it is first necessary to split the cost of the general expense and attach to each process its own share of this cost. This is best carried out on the productive labor cost basis. 30 Position. Amount. Total. Overseer 24.00 Second-hand 16.00 40.00 general Third-hand on spoolers 11.00 One yarn boy on spoolers 8.00 19.00 spoolers only SPOOLING. Count. Pounds run. Price per 100 lbs. Amount. 35 2507 .48 12.03 40 420 .50 2.10 45 1426 .54 7.70 50 2010 .58 11.66 55 1960 .60 11.76 60 2988 .64 19.12 65 250 .70 1.75 70 827 .76 6.29 80 1693 .90 15.24 90 1205 1.15 13.86 100 100 1.50 1.50 120 587 2.00 11.74 13.00 114.7 5 — spooling TWISTERS. 1 section hand 4 twister tenders 43.20 2 doffers 16.00 3 tieing-over and cleaning 21.00 1 band-man and rail washer 10.00 103.20 — twisters WARPERS. 3 warper tenders 30.75 3 tieing-in girls 24.75 1 man changing beams 9.00 64.50 — warpers SLASHERS. 3 slasher tenders 41.25 2 helpers 16.50 57.75 — slashers DRAWING- AND TWISTING-IN. 359.90 1 359.90 — drawing- and twisting-in 31 According to the pay roll, the amount of the general ex- pense is 40.00 ; the productive labor cost for spooling is 19.00+ 114.75, or 133.75; for twisting it is 103.20; for warping, 64.50; for slashing, 57.75; and for drawing- and twisting-in it is 359.90. The total productive labor cost is 719.10. The percentage that the productive labor cost, on any one process, bears to the total productive labor cost, gives the per- centage of general cost to be charged to that process. To illustrate, the productive labor cost on spooling is 133.75, the total productive labor cost is 719.10, then 133.75^ 719.10=.186, or 18.6%. 18.6% of 40.00 (general cost)=7.44, amount of general cost to be charged to the operation of spooling. This method is adopted in the following table, which splits the general cost between the different sub-divisions : Process. Spooling, Twisting, Warping, Slashing, Drawing- and twisting-in. Productive Labor Cost. Totals, 133.75 64.50 57.75 103.20 359.90 Percent, of Total. 18.6 8.97 8.03 14.35 50.05 719.10 100.00 Amount of General Expense. 7~44 3.59 3.21 5.74 20.02 40.00 Cost, per lb., on spooling : — Spooler tenders are usually paid so much a hundred pounds, the price varying with the counts of the yam. In such cases the cost per pound, so far as the spooler tenders themselves are concerned, is obtained by dividing the pay per hundred pounds by 100. If the tenders are paid by the day, the best method to adopt is the spindle basis and apply it the same as in the case of the spinning. It is seen from the pay roll shown on page 31 that in this case the tenders are paid on the piece work plan. There remains, however, to be divided, the general expense on the spoolers. This general expense amounts to 19.00 (section hand and yam boy) +7.44 (portion of general expense) mak- ing a total of 26.44. 32 This amount should be split between the different counts run, on the productive labor cost basis. Amount to be apportioned=26.44. Cost of spooler tenders=114.75. 26.44^114.75=.230413, or 23.0413%. If now, 23.0413% of the cost per pound for spooler tenders on any count, be added to the cost per pound for spooler tenders on that count, the result will give the total spooling cost per pound of the count. To illustrate, the pay for spooling 35s is .48 a hundred pounds, or .0048 per pound (see pay roll). 23.0413% of .0048=.001105. .0048+.001105=.005905 total labor cost per pound on spooling 35s. This method is adopted in the following table, which shows the labor cost per pound on spooling: Count. Productive Labor Cost, Per Pound. Productive Labor Cost Per Pound + 23.0413%. 35 .0048 .005905 40 .005 .006152 45 .0054 .006644 50 .0058 .007136 55 .006 .007382 60 .0064 .007874 65 .007 .008612 70 .0076 .009351 80 .009 .011073 90 .0115 .014149 100 .015 .018456 120 • .02 .024608 33 Cost, per pound, on twisting: — The total labor cost on twisting is 103.20 (labor) +5.74 (portion of general expense), which totals 108.94. In obtaining the cost per pound on twisters the spindle basis is adopted, which is the same as the one explained un- der spinning. In this connection it is necessary to know the number of spindles run on each count, also the number of pounds of each count produced. The production report should take care of both of these items. The counts run on the twisters under consideration, the number of spindles on each count, and the pounds produced, are given in the following table :- Wabp Yarn Count. Spindles. Pounds. 40/2 220 412 65/2 32 35 65/2 hard twist 335 210 80/2 650 574 120/2 2475 Filling Yarn 1185 40/2 52 115 120/4 hard twist 1036 753 Total, 4800 Dividing the total labor cost on twisters by the total spindles run, gives the cost per spindle. 108.94 (total labor cost)-^4800 (total spindles) =022695 cost per spindle. The 40/2 is run on 220 spindles, which turn off 412 pounds, then the number of spindles multiplied by cost per spindle, and this result divided by the pounds produced, will give the cost per pound, or 34 220 (spindles on 40/2) X.022695 (cost per spindle) 412 (lbs. produced) equals .012118 cost per lb. The following table gives the cost per pound of each count run on the twisters and is obtained by the above method : Warp Count. Spindles. Cost per Spindle. Pounds Run. Cost per Pound. 40/2 220 .022695 412 .012118 65/2 32 « 85 .020749 65/2 hard twist 335 M 210 .036203 80/2 650 •« 574 .025699 120/2 2475 « Filling 1185 .047400 40/2 52 .022695 115 .010262 120/4 hard twist 1036 «« 753 .031224 Cost, per pound, on warping: — ^In dealing with the warp- ers, and all later machinery in a cotton mill, an element en- ters into the work that, so far, has not been encountered ; that is, from the time the yam comes to the warpers it is handled as belonging to a certain style of goods and in dealing with the cost, the style the yarn is going into, and not the count, should be considered. In other words, the cost per pound of warping a certain style should be the end aimed for, and not the cost per pound of warping a certain count of yam. It is consequently, essential to know the different styles the mill is making. These are given in the following tables, together with other information that may not exactly be con- sidered pertinent at this point, as it applies more directly to the weaving process. To save duplicating, however, it is in- cluded here. A brief explanation of these tables is not out of place at this point. 35 Fancy Styles ^ Plain Styles style. Width. Sley. Pick. Warp. Filling. % Warp. % Filling. Weight. Weaving Price. A. 39 80 80 35 50 59 41 5.00 .245 B. 33 76 80 55 60 51 49 8.50 .245 C. 30 76 76 60 85 59 41 11.75 .231 D. 30 80 80 90 130 59 41 16.46 .245 E. 30 64 64 50 75 60.2 39.8 12.30 .195 F. 28 68 64 60 75 57.2 42.8 14.10 .195 G. 30 84 80 60 85 60 40 11.00 .245 H. 30 88 80 60 90 62.5 37.5 10.66 .245 J. 32 76 68 80 120 63 37 15.36 .205 K. 27 90 60 60 90 69.5 30.5 13.06 .18 L. 27 94 72 ( 100 ( 50 120 ( 25.3 ( 44.6 30.1 14.52 .22 M. 28 84 80 55 75 59 41 10.31 .245 N. 34 68 108 70 45E 29 71 6.75 .33 P. 34 72 100 70 45E 32 68 6.75 .30 R. 26 96 108 60 22/26 Denier 74 26 14.63 .33 36 Style. Width. Sley. Pick. Warp. Filling. % Warp. % • Filling Weight Weaving Price. F. A. 27 70 70 45 70 61 39 10.96 .376 F. B. 27 104 92 ( 80 ( 40/2 Mer. 100 40/2 Mer. 43 15.8 27.3 13.9 10.31 1.00 F. C. 30 80 70 60 r 40/2 1 75 59 5 41 11.82 .376 F. D. 28 170 84 i 50 1 L 90 130 32 42 21 9.25 1.41 F. E. 29 68 44 ( 65/2 ( 45 120/4 13.5 38.25 48.25 8.53 .405 F. F. 28 52 32 f 65/2 1 120/2 f 80/2 50 3.5 56.4 43.6 40.1 16.59 .425 F. G. 28 74 32 40/2 [ 50 50 7.2 23.2 26 11.15 .425 F. H. 34% 105 90 50 50 54 46 5.16 .88 F. K. 28% 84 63 60 90 67 33 10.75 .62 F. M. 26 97 92 60 14/16 Denier 85 15 14.48 1.08 87 I i \ I I I Under the heading ** Style'' are placed the different let- ters by which the various styles, dealt with in this work, will be known. The tables are divided into plain work and fancy work, single letters being used for all plain styles and two letters for fancy styles. The second column shows the width of the grey cloth. The third column gives the sley of the cloth, that is, the number of warp ends to each inch. In case the sley is not the same in all parts of the cloth, the number in this column should be taken as indicating the average sley. The fourth column shows the pick of the goods, that is, the filling threads in each inch of the cloth. If the picks per inch vary, then this column shows the average pick. The fifth and sixth columns give the counts of warp and filling, respectively, that are used in the construction of the cloth. Styles E. and F. M. call for silk filling. It is consid- ered that this is purchased by the miU all prepared to go into the cloth. The seventh and eighth columns gives the percentage of warp and filling, respectively, in a pound of cloth. For ex- ample^ take style A, in 100 pounds of this cloth, there are 59 lbs. of 35s warp and 41 lbs. of 50s filling. The ninth column gives the weight of each style, the weight being expressed in terms of yards per pound. Thus style A, for example, weighs 5 yds. per lb. The tenth column shows the weaving price on each style. This price is based on a cut 60 yds. in length, that is, a weaver on style A, for example, is paid 24y2C for each 60 yds. he turns out. As previously stated, when the yam reaches the warpers, it is possible to attach it to the different styles, and it is gen- erally so run. For example, if a certain style calls for 2400 ends of 30s yam, then this number of ends must be assembled on the warper beams, and is generally run for that style. It is, consequently, possible to ascertain the length of time devoted to warping the yam for the various styles and there is no bet- ter method of figuring the cost on warpers than on the machine 38 hour basis. This method necessitates the keeping of -^n ac- curate record of the number of hours spent on each st>le, and consequently may entail a little extra work in this department, but it would seem that the advantage of knowing what it is costing to run each of the separate styles would much more than offset this small additional labor. To illustrate this method, from the payroll of the room and from the division of the general pay, previously made, it is learned that the cost of the warping is 64.50 (productive labor) +3.59 (portion of general expense), or a total of 68.09. There are 16 warpers being run, and as the work is based on a week of 54 hours, there are 864 machine hours (16x54). 68.09 (cost)-:-864 (machine hours) =.078807, which is the cost per machine hour for operating the warpers. If, now, 67 hours are spent on warping style A and there are 2456 pounds of this style warped, then 67x.078807, or 5.280069, is the total cost of warping on this style. This amount divided by 2456 (pounds run) gives the cost per pound on this style, or .002149. The table on page 40 shows the warping cost per pound on each style, the result being obtained in each case by the above method. In this table the hours have been assumed. Cost, per pound, on slashing: — The cost per pound of slashing may be obtained by the same method as in the case of warping, that is, by keeping a correct record of the time consumed in slashing each style, and multiplying the number of hours by the cost per machine hour to find the total labor cost on that style. The labor cost of the slashers, according to the payroll, is 57.75, which added to 3.21 (portion of general expense) gives a total cost on slashing of 60.96 There are 3 slashers, which number multiplied by 54 (hours per week) gives a total of 162 machine hours, 6096 -r-162=.376296 slashing cost per machine hour. Assuming that the number of hours spent on slashing each style, has been found to be as given in the table on page 41, then the cost per pound of slashing each style will be as shown in the same table. 39 I I ■ i ( Cost, Per Pound, on Wabpebs 40 style. Machine Hours. Cost per Machine Hr. Pounds Run. Cost Per Pound. A. 67 .078807 2456 .002149 B. 66 .078807 1254 .004147 C. 17 .078807 307 .004363 D. 61 .078807 450 .010682 B. 13 .078807 255 .004017 F. 17 .078807 297 .004510 O. 19 .078807 318 .004708 H. 20 .078807 342 .004608 J. 11 .078807 120 .007223 K. 24 .078807 414 .004568 L. 23 .078807 267 .006788 M. 36 .078807 667 .004253 N. 31 .078807 371 .006584 P. 37 .078807 440 .006626 R. 13 .078807 218 .004699 F. A. 31 .078807 801 .003049 F. B. 37 .078807 483 .006037 F. C. 19 .078807 333 .004469 F. D. 128 .078807 1371 .007357 F. E. 29 .078807 806 .002835 F. F. 34 .078807 609 .004399 F. G. 74 .078807 2015 .002894 F. H. 17 .078807 356 .003763 F. K. 24 .078807 424 .004460 F. M. 16 .078807 273 .004618 Cost, Peb Pound, on Slashebs style. Machine Hours. Cost Per Machine Hour. Pounds Run. Cost Per Pound. A. .376296 2456 .002145 B. .376296 1254 .003300 C. .376296 307 .004902 D. .376296 450 .008362 B. .376296 255 .004427 P. .376296 297 .005068 O. .376296 318 .004733 H. .376296 342 .004401 J. .376296 120 .009406 K. .376296 414 .003635 L. .376296 267 .007046 IL B .376296 667 .003384 N. .376296 371 .005070 P. .376296 440 .005131 R. .376296 218 .005177 F. A. .376296 801 .003758 F. B. .376296 483 .005435 F. C. .376296 333 .004493 F. D. .376296 1371 .003019 F. E. .376296 806 .003734 F. F. .376296 609 .006178 F. G. .376296 2015 .003361 F. H. .376296 356 .003171 F. K. .376296 424 .003549 F. M. .376296 273 .004135 41 \ . ! J Cost, per pound, on drawing- and twisting-in: — The pay for drawing-in warps is generally based on so much a thou- sand ends, if drawn by hand. For example, a drawing-in hand may be paid 18c per thousand ends on plain work; 20c per thousand ends on 5 harness sateen work, while on fancies the pay may be based on 63c per thousand. Having the weight of warp yam on the beam, the cost per pound for drawing-in, under such circumstances, is readily determined. There is^ however, another point to be taken into consideration in con- nection with this department, namely, twisting-in. When a beam runs out at the loom and the same style is to be con- tinued in that, or any other loom, the ends from a new beam may be twisted to the ends of the beam running out, and then pulled through the harness and reed, thus doing away with the drawing-in process. The person performing this operation may be paid by the piece, or by the day. In any case it would not be a difficult matter to lay out some method by means of which the exact labor cost of draw- ing- and twisting-in each style could be readily ascertained. There remains the portion of general expense that be- longs to this work, and this is best distributed on the pro- ductive labor cost basis. This method is adopted in the table on page 43, which gives the total labor cost per pound for drawing- and twisting-in. It is assumed that the cost of the actual drawing- and twisting-in of each style has been found to be as shown in this table. Take style A for an illustration, the productive labor cost is 59.84, but there remains to be added to this cost, its portion of the total general expense. To find what percentage should be added to the cost on each style, divide the total gen- eral expense on drawing-and twisting-in by the total pro- ductive labor cost 20.02---359.90=.055626, or 5.5626%. Then 59.84 (productive labor cost on style A) +5.5626%= 63.168659, or the total labor cost. 63.168659-^2456 (pounds run)=.025720, cost per lb. In case warp drawing machines are being dealt with, the cost per pound may be obtained by keeping a record of the time spent on each style, and using the cost per machine hour basis. 42 Cost, Per Pound, on Dbawing- and Twisting-in style. Productive Labor Cost. Productive Labor Cost -1-5.5626% Lbs. Run. Cost Per Pound. A. 59.84 63.168659 2456 .025720 B. 24.61 25.978955 1254 .020716 C. 5.48 5.784830 307 .018843 D. 8.45 8.920039 450 .019822 B. 3.84 4.053603 255 .015896 P. 4.44 4.686979 297 .015781 G. 6.27 6.618775 318 .020813 H. 7.06 7.452719 342 .021791 J. 2.29 2.417383 120 .020144 K. 7.87 8.307776 414 .020067 L. 5.64 5.953730 267 .022298 M. 13.08 13.807588 667 .020701 N. 6.72 7.093806 371 .019120 P. 8.43 8.898927 440 .020224 R. 4.26 4.496966 218 .020628 F. A. 12.65 13.353668 801 .016671 F. B. 12.32 13.005312 483 .026926 F. C. 6.29 6.639887 333 .019820 F. D. 54.11 57.119922 1371 .041662 F. B. 13.11 13.839256 806 .017170 F. F. 11.52 12.160811 609 .019968 F. G. 52.36 55.272577 2015 .027435 F. H. 10.71 11.305754 356 .031757 F. K. 12.81 13.522569 424 .031892 F. M. 5.74 6.059293 273 .022195 43 1 1 i .4 i) I < I ( 1 I Weavers Pay Only 44 style. Cost Per Yard. Yards Per Pound. Cost Per Pound. A. .004083 5.00 .020415 B. .004083 8.50 .034705 C. .00385 11.75 .045237 D. .004083 16.46 .067206 E. .00325 12.30 .039975 P. .00325 14.10 .045825 G. .004083 11.00 .044913 H. .004083 10.66 .043524 J. .003416 15.36 .052469 K. .003 13.06 .03918 L. .003666 14.52 .04323 M. .004083 10.31 .042095 N. ^ .0055 6.75 .037125 P. .005 6.75 .03375 R. .0055 14.63 .080465 F. A. .006266 10.96 .068675 F. B. .016666 10.31 .171826 F. C. .006266 11.82 .074064 F. D. .0235 9.25 .217375 F. E. .00675 8.53 .057577 F. F. .007083 16.59 .117506 F. G. .007083 11.15 .078975 F. H. .014666 5.16 .075676 F. K. .010333 10.75 .111079 F. M. .018 14.48 .26064 Weave Room The weave room presents no dijQficult problems when ob- taining the cost per pound. Practically all mills pay their weavers on the piece work basis, the pay being based on so much a cut — a cut being a certain number of yards of cloth. The number of yards in a cut will vary with different mills. Having the length of the cut, the weaving price per cut, and the yards per pound of the cloth, the labor cost per pound of weaving is readily obtained. Take style A for example, and referring to page 36 the weaving price as shown here is 24i/^c per cut, this price being based on a cut 60 yards in length. The goods weigh five yards to the pound. Then .245 (price per cut)-^0 (yards per cut) =.004083 cost per yard, and as there are five yards to the pound, the cost per pound is 5 X. 004083^.020415. This method is followed in the table on page 44, which shows the weaving pay per pound on both the plain and fancies. After having obtained the cost per pound, as related to the actual weaving process alone, there remains to be dis- tributed such general labor as the loom fixers, changers over, smash piecers and so on. These costs are shown on page 46, which gives the pay in the weave room outside of the actual weaving. Three divisions are made in the pay, the first division includ- ing all persons that may be considered general to the whole room, the second division being confined to persons having to do with the plain looms alone, and the third division being confined to those persons whose work brings them in direct contact with the fancy looms only. No better single method of distributing these costs can be obtained than on the loom basis, although in some minor instances it may not be accurate. For example, the number of filling carriers employed is not in proportion to the number of looms in operation, but is rather in proportion to the pounds of filling used. However, to make exceptions in these few cases would entail labor that the results would hardly justify, and, as above stated, there is no better method of distributing 45 Weave Eoom Pay (Day Labor) Occupation. Amount. TotaL 1 Overseer 35.00 1 Second hand 20.00 1 Clerk 9.00 3 Smash piecers 34.32 1 Beam carrier 7.98 3 Filling carriers 23.94 1 Scrubber 5.80 136.04 (General) 8 Plain fixers 128.80 128.80 (Plain) 10 Fancy fixers 156.00 3 Changers over 39.99 2 Chain boys 10.24 4 Drop-wire boys 31.92 238.15 (Fancies) Total 502.99 Weavers pay on plai Q work 551.85 Weavers pay on fi inc pa: y work 7 roll 1279.18 Total weave room 2334.02 if the pay in the weave room, outside of the weavers pay, than on the loom basis. There are, however, certain costs that should be charged directly to the fancy work, as they are not a charge on the plain. There are also certain charges that go to the plain work only, and still other charges that are common to both the plain and the fancy. It is necessary, therefore, first to split the charges common to both, on the loom basis, after which the plain and fancy looms can be handled separately. In this connection it is necessary to know the number of looms on each style, and this information is given in the table on page 47, together with the number of pounds run on each style : 46 Plain style. Number of Looms. Pounds run. A. 125 4163 B. 126 2450 C. 35 522 D. 75 759 B. 25 423 W. 35 517 o. 35 530 H. 36 547 J. 16 191 K. 36 596 L. 30 382 M. 70 1131 N. 70 1279 P. 70 1381 R. 36 295 Totals 815 15166 Fancy F. A. 75 1309 F. B. 70 823 F. C. 35 567 F. D. 125 1735 F. E. 45 1559 F. F. 60 1017 F. G. 90 2723 F. H. 26 659 F. K. 36 632 F. M. 35 321 Totals 585 11345 47 Weave Eoom General Expense style. No. of Looms Cost Per Loom. Pounds Run. Cost Per Pound. A. 125 .255202 4163 .007662 B. 125 .255202 2450 013020 C. 35 .255202 522 .017111 B. 75 .255202 759 .025217 H 25 .255202 423 .015082 F. 35 .255202 517 .017276 G. 36 .255202 530 .016853 H. 35 .255202 547 .016329 J. 15 .255202 191 .020042 K. 35 .255202 596 .014986 L. 30 .255202 382 .020042 M. 70 .255202 1131 .015795 N. 70 .255202 1279 .013967 P. 70 .255202 1381 .012935 R. 35 .255202 295 .030278 F. A. 75 .504273 1309 .028892 F. B. 70 .504273 823 .042890 F. C. 35 .504273 567 .031128 F. D. 125 .504273 1735 .036330 F. B. 45 .504273 1559 .014555 F. F. 50 .504273 1017 .024792 P.O. 90 .504273 2723 .016667 F. H. 25 .504273 659 .019130 F. K. 35 .504273 632 .027926 F. M. 35 .504273 321 .058098 48 There is a total of 1400 looms on the plain and fancy work. 815 looms, or 58.21% are on plain, and 585, or 41.79% are on fancy. Then 58.21% of 136.04 (general room expense), or 79.19, must be charged to the plain, which added to the direct charge of 128.80 on the plain, gives a total of 207.99 to be distributed among the plain looms. Dividing this amount by the number of plain looms, or 815, gives .255202 as the cost per loom. Similarly, 41.79% (% on fancies) of 136.04 (general room expense), or 56.85, is the amount to be charged to the fancies, which added to the direct charge of 238.15 on fancies, gives a total of 295.00 to be distributed. This amount divided by 585 (number of fancy looms) gives .504273 as the cost per loom on this portion of the work. To obtain the cost per pound, multiply the cost per loom on the plain, if it is plain loom work; or by the cost per loom on the fancies, if fancy, by the number of looms on that style and divide the result by the pounds run of that style. For example, on style A there are 125 looms, which mul- tiplied by .255202 (cost per loom on the plain), gives 31.900250. This amount divided by 4163 (pounds run), gives .007662 cost per pound. Continuing with each style, according to the above method, gives the results shown on page 48. Cloth Room The labor cost per pound in the cloth room is best ob- tained by dividing the total of the payroll by the total yards run, to first find the cost per yard, after which the cost per pound of the different styles is determined by multiplying the cost per yard by the yards per pound. Obtaining the cost per pound from the average cost per yard, in accordance with the above, does not take into ac- count every little variation that may cause some one style to cost more per yard than another in the cloth room. The cost in this department, however, is so small in the case of mills that do not finish their own goods, that the average gives re- sults near enough for all practical purposes. 49 I I \ T Cost, Peb Pound, in Cloth Boom style. Cost Per Yard. Yards Per Pound. Cost Per Pound. A. .000751 5.00 .003755 B. .000751 8.60 .006383 C. .000751 11.75 .008824 D. .000751 16.46 .012361 E. .000751 12.30 .009237 F. .000751 14.10 .010589 G. .000751 11.00 .008261 H. .000751 10.66 .008005 J. .000751 15.36 .011535 K. .000751 13.06 .009808 L. .000751 14.52 .010904 M. .000751 10.31 .007742 N. .000751 6.75 .005069 P. .000751 6.75 .005069 R. .000751 14.63 .010987 F. A. .000751 10.96 .008230 F. B. .000751 10.31 .007742 F. C. .000751 11.82 .008876 F. D. .000751 9.25 .006946 F. E. .000751 8.53 .006406 F. F. .000751 16.59 .012459 F. G. .000751 11.15 .008373 F. H. .000751 5.16 .003875 F. K. .000751 10.75 .008073 F. M. .000751 14.48 .010874 1 50 In the case of mills that finish their goods, the condi- tions are different, and in such cases a method should cer- tainly be applied that will place the correct cost on each style. The pay roll of the cloth room is as follows : Occupation Amount 1 Overseer 20.00 1 Clerk 7.50 20 Inspectors 122.80 3 Folders 22.80 1 Pressman 12.00 1 Helper 7.00 Total 192.10 The total of the payroll, 192.10, divided by 255567 (yards run), gives .000751 as the cost per yard. Multiplying the cost per yard, by the yards per pound of any style, gives the cost per pound as shown in table on page 50. SUMMABY OF LaBOB CoSTS It is now possible to obtain the total labor cost per pound on the different styles being run, and it is ad- visable to do so at this point. There is one point that presents itself in this connection and one that is impor- tant to a correct understanding of the method adopted when assembling the labor costs in different departments, in order to obtain the total labor cost on any particular style ; that is, that a pound of cloth, which is the amount used when denoting the cost, is made up of a fractional part of a pound of warp yam, and a fractional part of a pound of filling yarn. It is not, consequently possible to attach directly to a pound of cloth, the labor cost of spinning for instance. The labor costs &1 )i on the different yarns must first be assembled, and brought down to that point where the yarns for the first time are con- sidered as a part of a certain style, which in the case being dealt with, is at the warpers. After having found the labor cost per pound of the warp yam up to this point, it is not the labor cost of one pound of a certain yam that is used, but the labor cost per pound of that style into which the yam may pass. To the labor cost per pound of the warp yarn, there is added the labor cost per pound of warping, slashing and drawing-in for the style using this yam. This brings the calculation up to the weaving, at which point the percentage of warp and filling in a pound of cloth must be used, to determine how much of the yam cost is warp and how much is filling. Take style A for an example, this cloth is made from 35s warp and 50s filling. The labor cost per pound on these two counts, up to the warping, is as fol- lows, these figures being taken from tables given on previous pages. 35s warp 50s filling Labor cost per lb. card room .013916 .017397 Labor cost per lb. spinning room .011408 .020187 Labor cost per lb. spooling .005905 Total .031229 .037584 From this point, up to the weaving, the warp yam alone is considered and the figures are as follows : Labor cost per pound on 35s warp yam up to and including spooling, = .031229 Labor cost per pound on warping, style A, = .002149 Labor cost per pound on slashing, style A, = .002145 Labor cost per pound on drawing-in, style A, = .025720 Total labor cost per pound, warp yam, style A, up to weaving, _ Qgi243 52 59% of the weight of the cloth is warp yarn, then 59% of .061243, or .036133, represents the labor cost on the warp yam in one pound of cloth. 41% of the weight of the cloth is filling yam, then 51% of .037584, or .015410, is the labor cost on the filling yam in one pound of cloth. Combining these two, and adding to them the labor cost per pound in the weave room and cloth room, gives the total labor cost per pound. Labor cost per pound, on warp. Labor cost per pound, on filling. Weaving cost per pound. Cost per pound, general expense in weave room. Labor cost per pound in cloth room, = .036133 = .015410 = .020415 = .007662 = .003755 Total labor cost per pound, style A, = .083375 If the warp yarns, in any style, contain different counts of yam, carry each separate count through, up to the weaving, exactly as though it were the only count in the cloth, then split the total costs of each, up to this point, by the percentage that each bears to a pound of cloth. The following tables give the total labor cost per pound on each style, worked out as stated above. All figures used are from tables previously given. 53 kk Labob Cost Pee Pound of CARDED A. y \y\jj:%±j \jj! Stock 1% 1% 1% 8 40/2 .013916 .013702 .006152 .012118 1% 1%E 1% 1% 1% Hk. Roving Counts Card Room Spinning Room Spooling Twisting 8 35 .013916 .011408 .005905 8 40 .013916 .013702 .006152 10 45 .017397 .015919 .006644 10 45 Hard twist .022384 .025339 .006644 10 60 .022412 .018686 .007136 12 56 .024375 .021134 .007382 12 60 .024375 .023873 .007874 Total .031229 .033770 .045888 .039960 .054367 .048234 .062891 .056122 CARDED Stock Hk. Roving Counts Card Room Spinning Room Twisting .013916 .013912 Total .027828 .013916 .013912 .010262 .017397 .020187 .038090 .022384 .017187 .037584 .024375 .026275 .029835 .032543 .036570 .039571 .050650 .033162 .036644 .043532 .062997 069187 .080102 54 ■ Labor Cost Peb Pound of I Wabp Yabns, Up to Wabping 1%E 1%E 1%E 1% 1% 1% 1% 1% s.i. 1% s.i. 14 14 14 14 16 16 18 20 25 65 Hard twist 65/2 65/2 Hard twist 70 80 80/2 90 100 120/2 .029413 .029413 .029413 .029835 .032543 .032543 .035665 .042053 .052377 .042977 .042977 .042977 .030698 .036830 .036830 .042974 .051517 .067858 .008612 .008612 .020749 .008612 .036203 .009351 .011073 .011073 .025699 .014149 .018456 .024608 .047400 .081002 .101751 .117205 .069884 .080446 .106145 .092788 .112026 .192243 Fn^LiNG Yabns, Up to Weaving 1 % s.i. 1% 1 % s.i. FAeE 1% s.i. 18 20 25 25 25 90 100 120 120/4 Hard twist 130 .036570 .040634 .052377 .050018 .052377 .048025 .055685 ,072883 .099458 .031224 .086430 .084595 .096319 .125260 .180700 .138807 55 Labor Cost Peb Pound of Wabp Style Counts Yarn costs from pages 54 and 55 Warping Slashing Drawing- and Twisting-in Total A. B. c. D. E. F. 36 55 60 90 50 60 .031229 .062891 .056122 .092788 .048234 .056122 .002149 .004147 .004363 .010682 .004017 .004510 .002145 .003300 .004902 .008362 .004427 .005068 .025720 .020716 .018843 .019822 .015896 .015781 .061243 .091054 .084230 .131654 .072574 .081481 G. 60 .056122 .004708 .004733 .020813 .086376 Labob Cost Peb Pound of Wabp Style F. A. F.B. F.C. F.D. Counts 45 80 40/2 Mer. 60 40/2 50 90 Yarn costs from pages 54 and 55 .039960 .080446 .04588 .056122 .045888 .048234 .092788 Warping .003049 .006037 .006037 .004469 .007357 .007357 .007357 Slashing .003758 .005435 .005435 .004493 .003019 .003019 .003019 Drawing- and twisting-in .016671 .026926 .026926 .019820 .041662 .041662 .041662 Total .063438 .118844 .084286 .084904 .097926 .100272 .144826 Yabns in Plain Styles, Up to Weaving H. J. K. L. M. N. P. R. 60 80 60 100 50 55 70 70 60 .056122 .080446 .056122 .112026 .048234 .062891 .069884 .069884 .056122 .004608 .007223 .004568 .006788 .006788 .004253 .006584 .006626 .004699 .004401 .009406 .003635 .007046 .007046 .003384 .005070 .005131 .005177 .021791 .020144 .026067 .022298 .022298 .020701 .019120 .020224 .020628 .086922 .117219 .084392 .148158 .084366 .091229 .100658 .101865 .086626 Yabns in Fancy Styles, Up to Weaving F.E. F.F. F.G. F.H. F.K. F.M. 65/2 Hard twist 45 Hard twist 65/2 120/2 80/2 40/2 50 50 60 60 .117205 .054367 .101751 .192243 .106165 .045888 .048234 .048234 .056122 .056122 .002835 .002835 .004399 .004399 .002894 .002894 .002894 .003763 .004460 .004618 .003734 .003734 .006178 .006178 .003361 .003361 .003361 .003171 .003549 .004135 .017170 .017170 .019968 .019968 .027435 .027435 .027435 .031757 .031892 .022195 .140944 .078106 .132296 .222788 .139855 .079578 .081924 .086925 .096023 .087070 56 57 Total. Labor Cost Pbb I! Style A. B. c. D. E. F. G. Counts warp 35 55 60 90 50 60 60 Counts filling 50 60 ; 85 130 75 75 85 % warp 59 51 59 59 60.2 57.2 60 % filling 41 49 41 41 39.8 42.8 40 Warp cost .036133 .046438 .049696 .077676 .043690 .046607 .051826 Filling cost .015410 .024819 .032842 .056911 .027537 .029612 .032041 Weaving (Jeneral expense, weaving .020415 .007662 .034705 .013020 .045237 .017111 .067206 .025217 .039975 .015082 .045825 .017276 .044913 .016853 Cloth room .003755 .006383 .008824 .012361 .009237 .010589 .008261 Total .083375 .125365 .153710 .239371 .135521 .149909 .153894 Total Labor Cost Per Style Counts warp Counts filling % warp % filling Warp cost Filling cost Weaving General expense, weaving Cloth room F.A. Total 45 70 ei 39 .038697 .024569 .068675 .028892 .008230 F.B. 80 100 43 27.3 .051103 .026295 169063 .077398 40/2 Mer. 40/2 Mer. 15.8 13.9 ♦.022797 ♦.013634 .171826 .042890 .007742 F.C. .258889 60 75 59 41 .050093 .028367 .074064 .031128 .008876 F.D. 40/2 .004896 .192528 50 130 32 21 .032087 .029149 .217375 .036330 .006946 90 42 .060827 .004896 .321887 .060827 .336287 .387610 ♦6c added to labor cost, per pound, for mercerizing. 58 Pound on Plain Styles H. J. K. L. M. N. P. B. 60 80 60 100 50 55 70 70 60 90 62.5 120 63 90 69.5 25.3 120 44.6 75 59 45 29 45 32 22/26 Denier 74 37.5 37 30.5 30.1 41 71 68 26 .054326 .073848 .058653 .037484 .037627 .053825 .029191 .032597 .064103 .031723 .046346 .025802 .037703 .028367 .028096 .026908 .043524 .052469 .039180 .043230 .042095 .037125 .033750 .080465 .016329 .020042 .014986 .020042 .015795 .013967 .012935 .030278 .008005 .011535 .009808 .010904 .007742 .005069 .005069 .010987 .153907 .204240 .148429 .037484 .149506 .147824 .113448 .111259 .185833 .186990 Pound ON Fancy Styles F.E. F.F. F.G. F.H. F.K. F.M. All hard twist 65/2 45 65/2 120/2 80/2 40/2 50 50 60 60 120/4 50 50 50 90 14/16 Denier 13.5 38.25 3.5 56.4 43.6 7.2 23.2 54 67 85 48.25 40.1 26 46 33 15 .019028 .029876 .004630 .125653 .060977 .005730 .019006 .046940 .064336 .074010 .087188 .015071 .009772 .017289 .027916 .057577 .117506 .078975 .075676 .111079 .260640 .014555 .024792 .016667 .019130 .027926 .058098 .006406 .012459 .008373 .003875 .008073 .010874 .019028 .195602 .004630 .295481 .060977 .119517 .019006 .162910 .239330 .403622 .300111 .199500 no Part II OVERHEAD COSTS Having distributed the costs that may properly come mi- der the head of labor, there remain those costs, continually going on in all manufacturing concerns, although possibly not as tangible as are the labor costs. Such costs are commonly termed mill overhead and include taxes, insurance, interest, depreciation and so on. The first object when making a correct distribution of these costs, is to subdivide them in such a manner that each unit of the mill will bear its correct proportion. As an aid to this distribution, three main divisions of the mill may be made, namely, building, land, machinery. Under each of these three main divisions are placed the different units into which the plant has previously been divided. This is shown, for the buildings, on page 61. The overhead consists of taxes, 101.22; insurance, 4.03; interest, 388.57; repairs, 38.46; and depreciation 140.90 ; making a total of 673.18, to be distributed under this heading. The interest, shown here, is the interest on the investment in the buildings, and is not interest paid oiit for money borrowed. The depreciation on buildings is figured at 2%%. The propriety of including these charges at this point is discussed in later pages, the above explanation being all that is deemed necessary here. The item of repairs includes only those general repairs of the building that can- not be attached directly to some one unit. It is next necessary to distribute this total charge of 673.18 to the different units on some equitable basis, and the cost basis is considered best for this particular case. The 60 Buildings Taxes 101.22 Repairs 38.46 Insurance 4.03 Depreciation 140.90 Interest 388.57 Total amount to be distributed 673.18 Unit. Office SIiop Picking Carding Combing Drawing Slubbing 1st Int. 2nd Int. Jacks Spinning — warp Spinning — filling Spooling Twisting Warping Slashing Dra wing-in Weaving — plain Weaving — fancy Cloth room Storage Power Total Cost. 10000.00 2533.30 5156.41 10607.52 7387.24 2281.44 1568.00 2058.00 4198.32 16816.80 37436.00 33908.00 5096.00 6209.28 5268 48 4074.84 2626.40 84272.50 60489.00 3528.00 8640.00 18920.00 333075.53 61 Per cent. 3.00 .76 1.55 3.19 2.21 .68 .47 .62 1.26 5.05 11.24 10.20 1.53 1.86 1.58 1.22 .79 25.30 18.16 1.06 2.59 5.68 100.00 Distribution. 20.19 5.12 10.43 21.47 14.88 4.58 3.16 4.17 8.48 34.00 75.67 68.66 10.30 12.52 10.64 8.21 5.32 170.31 122.25 7.14 17.44 38.24 673.18 I first colTimn shown on page 61 contains the different units into which the mill has previously been divided, the second column shows the cost of the building for each of these units, while the third column shows the percentage that each cost bears to the total cost. The last column gives the portion of the overhead to be charged to each separate unit, and is found by obtaining each unit's percentage of the total distribution. Take the office for example, the cost of building is 10,000 ; this amount is 3% of the total cost for building construction, then 3% of 673.18, or 20.19, is the portion of the overhead, on all buildings, chargeable to office alone. The distribution under the heading ''Land'' is shown on page 63. Under this heading are included all charges, not previously distributed, that may be said to cost in direct pro- portion to the number of square feet occupied by each unit. The taxes are the taxes on the land only, and the interest is interest on money invested in the land. The distribution of the total charge of 129.61 is made on the basis of the floor space occupied by each unit. The calcu- lations are carried out exactly as described when dealing with the overhead on buildings. The distribution under the heading ''Machinery" is shown on page 64. The separate amounts consist of taxes on the machinery, 269.58 ; insurance on the machinery, 10.75 ; interest on the money invested in the machinery, 949.76 ; and depreciation on the machinery, figured at 4%, and amounting to 626.22; making a total of 1856.31 to be divided between the different units. The method adopted, in making the distribu- tion, is the cost basis. In the second column is shown the cost of the machinery in each separate unit, while the third column gives the percentage that the cost of each unit bears to the cost of all the machinery. The last column gives the portion of the overhead to be charged to each unit and is obtained in the same manner as described in connection with the overhead on buildings. Although not strictly a part of the mill overhead, yet capable of being included with it and attached to the separate units, are other expenses that come under the headings of 62 Land Taxes 12.70 Heating and humidifying . Interest 35.00 Watchman Lighting 48.10 Total amount to be distributed 129.61 23.81 10.00 Unit. Floor Space. Per cent Distribution. Office 5000 1.78 2.31 Shop 2585 .92 1.19 Picking 5198 1.85 2.40 Carding 10824 3.85 4.99 Combing 7538 2.69 3.49 Drawing 2328 .83 1.07 Slubbing 1600 .57 .74 1st Int. 2100 .75 .97 2nd Int. 4284 1.52 1.97 Jacks 17160 6.10 7.91 Spinning — warp 38200 13.58 17.60 Spinning — filling 34600 12.30 15.94 Spooling 5200 1.85 2.40 Twisting 6336 2.25 2.92 Warping 5376 1.91 2.47 Slashing 4158 1.48 1.92 , Drawing-in 2680 .95 1.23 Weaving — plain 51860 18.44 23.90 Weaving — fancy 37224 13.24 17.16 Cloth room 3600 1.28 1.66 Storage 24000 8.50 11.02 Power 9460 3.36 4.35 Total 281311 100.00 129.61 63 'f t Machineby Taxes 269.58 Interest 949.76 Insurance 10.75 Depreciation 626.22 Total amount to be distributed 1856.31 Unit. Value. Per cent. Distribution. Shop 5000.00 .62 11.51 Picking 12371.75 1.24 23.02 Carding 56580.27 6.96 129.20 Combing 49060.00 6.04 112.12 Drawing 7288.50 .90 16.71 Stubbing 5111.52 .63 11.69 1st Int. 9509.72 1.17 21.72 2nd Int. 31211.52 3.84 71.28 Jacks 86088.74 10.59 196.58 Spinning — warp 108845.96 13.51 250.79 Spinning — filling 98847.00 12.16 225.73 Spooling 4923.00 .61 11.32 Twisting 17820.00 2.19 40.65 Warping 6090.20 .75 13.92 Slashing 4870.00 .60 11.14 Drawing-in 396.87 .05 .93 Weaving — plain 120245.68 14.79 274.55 Weaving — fancy 91406.80 11.24 208.65 Cloth room 4190.00 .52 9.65 Power 94228.00 11.59 215.15 Total 814085.53 100.00 1856.31 64 power, repair shop and supplies. The different units, into which the mill has been subdivided, contain both productive and non-productive units, the latter embracing such units as the office, storage, shop and power. It should be one of the main objects, in distributing the costs under the non-productive units, to so arrange them that they will be attached to the productive units in a correct man- ner. The costs under power and shop lend themselves readily to such an arrangement, and will be treated in this manner. Office and storage, however, will be dealt with separately. The distribution under power is shown on page 66. The first item of expense, 38.24, is the overhead expense on the buildings devoted to the power plant, and is obtained from the sheet previously made up for overhead on buildings and shown on page 61. Shnilarly the charges of 4.35 for land, and 215.15 for machinery, are obtained from the pages showing the over- head under these headings, the object being to include them with the other expenses of power and then distribute them to the productive units. The fourth item of expense under power, 86.00, covers the cost of insurance and depreciation, over and above what has been already charged for these two items under overhead, it being considered that the equipment of the power plant de- preciates more rapidly than that of the manufacturing units, also there is the additional insurance for the boilers that should be taken into accoxmt. The next item, coal and labor, covers the expense of the fuel and the help in the power plant. Repairs and supplies, 40.00, are taken from the repair sheet explained in later pages. The total amount to be distributed is 957.64 and the distribution is made on the horse power basis. The different units are again set down and opposite each unit is placed the H. P. required to drive the machinery it con- tains. The third colunm contains the percentage that the H. P. of each unit bears to the total H. P. Under the heading ^'Distribution'' is placed the portion of overhead to be charged up to each unit, and these amounts are obtained by NOTB : The expenses under power, repairs, and supplies, are commonly termed " works expense ". In future pa^s, however, the single t«nn overhead will be used when referring to overhead, works expense, or to both. 65 I Power Overhead from "Building" 38.24 " "Land" 4.35 "Machinery" 215.15 Additional insurance and depreciation. . . 86.00 Coal and labor 573.90 Repairs and supplies 40.00 Total amount to be distributed 957.64 Unit. H. P. Per cent. Distribution. Shop 10 .43 4.12 Picking 80 3.41 32.66 Carding »8 4.17 39.93 Combing 82 1.36 13.02 Drawing 16 .64 6.13 Slubbing 10 .43 4.12 1st Int. U .64 6.13 2nd Int. 60 2.13 20.40 Jacks 180 7.66 73. 3& Spinning — warp 740 31.50 301.65 Spinning — filling 520 22.12 211.83 Spooling 8 .34 3.26 Twisting 00 3.83 36.68 Warping 6 .21 2.01 Slashing 6 .25 2.39 Weaving — plain 250 10.65 101.99 Weaving — fancy 230 9.80 93.85 Cloth room 10 .43 4.12 Total 2349 100.00 957.64 66 taking the proper percentage of the total amount for dis- tribution. This method is the same as the one adopted when distributing the overhead on buildings, land and machinery. The distribution of the costs in the repair shop is shown on page 68. The overhead of this department consists of 5.12, taken from the overhead on buildings, shown on page 61 ; 1.19 taken from the overhead on land, shown on page 63; 11.51, taken from the overhead on machinery, shown on page 64; and 4.12 from the power sheet on page 66, making a total of 21.94. In addition to this amount, there are also the expenses due to labor in the repair shop and material used. It is assumed that a record is kept of each repair job and the time and material charged up to the proper units. The second colunm, under ** Repair Shop,'' contains the separate amounts expended on each unit for labor in making the repairs, the third column contains the amounts expended for material for repairs, while the fourth column shows the distribution of the overhead on the repair shop. The distribu- tions in this column are made on a percentage basis obtained from the amounts expended for labor, that is, the items in the overhead column bear the same ratio to the total for overhead, that the items in the labor column bear to the total for labor. Note that there is no charge for overhead against power, on this sheet. Since there is a charge for power against re- pair shop, and also a charge for power used in the repair shop, against the power plant, one of these charges must either be omitted or estimated, before making up the charge for the other. In this case the charge against the power plant has been omitted. The amounts expended for supplies are also included on this sheet. It is assumed that an accurate record is kept of all supplies given out, and the proper charge made, for the same, to each unit. The charges against power on this sheet, namely, 9.00 for labor ; 15.00 for materials and 16.00 for sup- plies, or a total of 40.00, have been carried to the power sheet shown on page 66 and there distributed. The several items, on the different distribution sheets, may now be totaled for each productive unit, eliminating the 67 Repair Shop Overhead from "Building" 5.12 " "Land' 1.19 "Machinery" 11.51 P^^^^ 4.12 Total of overhead charges 21.94 Unit. Labor. Material. Overhead Charges. Supplies. Office • 20.00 Picking 1.20 4.52 .17 4.14 Carding 2.70 9.40 .39 8.62 Combing 4.80 16.66 .70 15.21 Drawing 1.50 5.24 .22 4.80 Slabbing 1.20 4.86 .17 4.51 1st Int. 1.80 6.60 .27 6.13 2nd Int. 4.20 14.27 .60 13.25 Jacks 9.90 33.85 1.44 31.43 Spinning — warp 7.20 24.20 1.05 22.18 Spinning — filling 8.40 28.22 1.22 25.87 Spooling 4.20 14.08 .60 12.97 Twisting 3.80 12.60 .66 14.00 Warping 2.10 7.85 .31 7.19 Slashing 1.50 5.30 .22 164.00 Weaving — plain 28.10 97.20 4.08 89.10 Weaving — fancy 61.50 205.92 8.94 188.76 Cloth room 6.90 23.05 1.01 69.63 Power 9.00 15.00 16.00 Total 160.00 528.82 21.94 717.79 68 power and repair shop, since these have been absorbed in the productive units. The charges against office and storage will be dealt with together, and in later pages. The summary of these overhead charges is shown on page 70. On this sheet the productive units only are shown, and against each unit are placed the amounts distributed to it in the previous pages. Taking the picking for an example, and following across the page; under the first heading, which is '* Buildings, ' ' there is a charge against this unit of 10.43, this amount being the same as the charge against picking, shown on the sheet giving the distribution of the overhead on buildings, page 61. Under land there is a charge of 2.40, which is the amount charged against picking on page 63; under machinery the charge is 23.02, which is obtained from the machinery sheet on page 64 ; under power the amount 32.66 is taken from the power sheet, page 66, and the amounts under repairs and supplies, 5.89 and 4.14 respectively, are taken from the repair and supply sheet, page 68. The total of these separate items amounts to 78.54 and this amount is placed in the final column. It should be understood that, in practice, the distributions shown on previous pages would not be made in such detail. All of the distributions, so far shown, can be combined in one distribu- tion sheet and the totals carried out on the same sheet. The method, employed here, is for explanation purposes solely. All the overhead expense, also such expenses as power, re- pairs and supplies, have been distributed to the different units and it now remains to distribute the total amount on each unit, between the different stocks, or different styles, passing through that particular unit. In the case of each separate unit some equitable method must be obtained, on which to base this distribution, and it is readily apparent that the same basis will not serve in all cases. There is, however, one element that is an important factor in this distribution, namely time; it being apparent that if it takes twice as long for a pound of one kind of stock to pass through a certain unit as it does that of another class to pass through the same unit, then the overhead charges on the first must be just twice as heavy as those on the second. I r I SUMMABY OF OVERHEAD ChaBGES Unit Build- ings Land Machin ery Power Repairs Supplies Total Picking 10.43 2.40 23.02 32.66 5.89 4.14 78.54 Carding 21.47 4.99 129.20 39.93 12.49 8.62 216.70 Combing 14.88 3.49 112.12 13.02 22.16 15.21 180.88 Drawing 4.58 1.07 16.71 6.13 6.96 4.80 40.25 Slubbing 3.16 .74 11.69 4.12 6.23 4.51 30.45 Ist Int. 4.17 .97 21.72 6.13 8.67 6.13 47.79 2nd Int. 8.48 1.97 71.28 20.40 19.07 13.25 134.45 Jacks 34.00 7.91 196.58 73.35 45.19 31.43 388.46 Spinning — warp 75.67 17.60 250.79 301.65 32.45 22.18 700.34 Spinning — filling 68.66 15.94 225.73 211.83 37.84 25.87 585.87 Spooling 10.30 2.40 11.32 3.26 18.88 12.97 59.13 Twisting 12.52 2.92 40.65 36.68 16.95 14.00 123.72 Warping 10.64 2.47 13.92 2.01 10.26 7.19 46.49 Slashing 8.21 1.92 11.14 2.39 7.02 164.00 194.68 Dra wing-in 5.32 1 23 .93 7.48 Weaving — plain 170.31 23.90 274.55 101.99 129.38 89.10 789.23 Weaving — fancy 122.25 17.16 208.65 93.85 276.36 188.76 907.03 Cloth room 7.14 1.66 9.65 4.12 30.96 69.63 123.16 70 It is, of course, possible in but a few cases to know accurately the amount of time devoted to each class of work, and this is not necessary, since there is, most always, some data available that is itself so closely related to the element of time that it will serve all purposes equally well. Take, for an example, piece work on a unit such as roving frames. The price of this work is very accurately based on the amount of work that can be turned out in a given time. If, then, the amounts that have been paid on these machines for piece work are known, and they should be, then these amounts can be used, when distributing the overhead, with practically as accurate results as would be obtained if the exact amount of time spent on each hank roving was known. Again, in the case of weaving, if the number of looms on each style, and the pounds of goods turned out, are known then by usmg these items in the distribution of the overhead we are practically using the element of time, since the time it takes to weave a pound of cloth of a certain style, regulates the number of looms required to give the necessary produc- tion. Consequently, although the actual hours consumed, in tummg out a certain production, may not be used when making the distribution of the overhead at the different units yet the element of time is the chief factor, and in selecting a method of distribution, for any particular unit, it should be the aim to select a method that will fit this requirement. Card Room Cost, per pound, on pickers, cards, combers, and draw- frames :— The total amount to be distributed on the picking unit IS 78.54. If the stock should all be run through the pickers at the same rate, and treated in exactly the same man- ner m the card, then it would be correct to say that the total cost of overhead on pickers divided by the final pounds of roving turned out in the card room, gives the cost per pound of picker overhead on all stocks. If, however, the different stocks do not pass through the pickers at the same rate, which 71 Pickers, Cards, Combers, and Draw Frames Unit. Costs. Pounds Produced. Cost per Pound. Picking 78.54 27489 .002857 Carding 216.70 27489 .007883 Combing 180.88 20290 .008914 Drawing 40.25 27489 .001464 30.45 Slubbers (overhead cost)-T-23.21 (piece work cost)=1.3119y or 131.19% Hank. Piece Work Cost, Per Pound. Per Cent. To Be Taken. Overhead Cost, Per Pound. .60 .70 .000832 .000978 131.19% 131.19% .001091 .001283 I I 47.79 (overhead 1st Intermediates cost)-f-30.22 (piece work cost)= or 158.14% 1.5814, Hank. Piece Work Cost, Per Pound. Per Cent. To Be Taken. Overhead Cost, Per Pound. 1.04 .000589 158.14% .000931 1.35 .001028 158.14% .001625 1.65 .001316 158.14% .002081 2.00 .001588 158.14% .002511 72 is the case with the mill under consideration, then it is not perfectly accurate to employ the above method. Moreover, some of the stock is carded and some combed ; the combed work loses much more in waste than the carded, and to say that the final pounds produced in the card room show the relative amount of each stock to pass through the picker is not correct. This latter point is taken up more fully under raw stock cost in later pages. The question then is, does the difference that would be shown in the cost per pound warrant the additional labor of taking these points into consideration, and the answer to this question must, in all cases, be governed by the circumstances. In the case of the pickers, cards, combers and draw frames, the cost of the overhead, in each case, has been divided by the total pounds produced, without taking into consideration the differences due to the variations in the pro- duction and waste of the different stocks. The cost per pound in each case is shown in the table on page 72 ; the items under ^ Costs'' are obtained from the total column on page 70, while the items under ''Pounds Produced" are from the production report shown on page 13. Cost, per pound, on roving frames :— The overhead on the roving frames is distributed to the different hanks being made, on the piece work cost basis. The slubbers, 1st inter- mediates, 2nd intermediates and jacks are dealt with sep- arately. On the slubbers the total cost of piece work is 23.21, and the total cost of overhead is 30.45 ; then 30.45^23.21 gives the percentage that the cost per pound of overhead on any hank, run on the slubbers, bears to the cost per pound of piece work on that hank. 30.45-^23.21=1.3119, or 131.19% The cost per pound of piece work for the 60 hank is .000832, then 131.19% of .000832, or .001091, is the cost per pound of the overhead on this hank. The above method is the one adopted in the tables on pages 72 and 74, which show the cost per pound of overhead for each of the different hanks being made. Summary of overhead in card room :— It is well, at this point, to total the overhead cost per pound in the card room, 73 2nd Intermediate^ 134.45 (overhead cost)-f-80.84 (piece work cost)=1.66316 or 166.316% Hank. Piece Work Cost, Per Pound. Per Cent. To Be Taken. Overhead Cost, Per Pound. 2.6 .001706 166.316% .002837 3.5 .002318 166.316% .003855 4.95 .003930 166.316% .006536 5.25 .004164 166.316% .006925 6.6 .005362 166.316% .008918 Jacks 388.46 (overhead cost)-^257.43 (piece work cost) =1.50899, or 150.899% Hank. Piece Work Cost, Per Pound, Per Cent. To Be Taken. Overhead Cost, Per Pound. 8 .004641 150.899% .007003 10 .006148 150.899% .009277 12 .007679 150.899% .011587 14 .009729 150.899% .014681 16 .011841 150.899% .017868 18 .014042 150.899% .021189 20 .017917 150.899% .027036 25 .023387 150.899% .035291 74 for each separate hank, and use these totals in any later figures, rather than treat each unit in the card room sep- arately. These totals are shown in the table on page 76. When making the totals for the overhead of the card room, due regard must be given to the organization of the room; that is, in attaching to any particular hank, made on the jack, the cost of overhead for the first intermediates, for instance, it is necessary to know which hank, made on the first intermediates, is going into the final hank roving being dealt with. This information is readily derived from the sheet giving the organization of the card room. Take the 8 hank roving, for an illustration, and following it through the different units listed in the table, shown on page 76, the first item is the charge against picking. This amount is the same for each of the different hanks being made, consequently there is only one figure that can be used, namely, .002857. The same is true of the carding and drawing. The 8 hank is not combed work, consequently no charge is made opposite combing, this space being left blank. On the slubbers, two different hank rovings were run, .60 and .70, and the one that is used in later processes for the 8 hank, must be known when making the charge of overhead for slubbers against the 8 hank. Knowing the organization of the room, it is understood that the charge of overhead against the .60 hank, on the slubbers, is the one that goes under 8 hank in the summary sheet. Similarly, on the first inter- mediates, it is the 1.04 hank that eventually passes into the 8 hank, consequently the charge of overhead against the 1.04 hank, on the first intermediates, or .000931 must be placed under 8 hank on the summary sheet. On the second intermediates, it is the 2.6 hank that passes to the 8 hank, and the overhead charge for this hank on the second intermediates is .002837, which is the amount under 8 hank, and against second intermediate, on the summary sheet. 75 B I r t^ CO Tt< Tfl (Ti 1-1 OO 1-^ tH 1 la 00 T-l «D 00 iH 1— • OS CM 00 00 o» Tf C• 00 iH tH N oo ia OS iiS o o o o © © © CO CD - 00 iH iH CSJ CD t' 00 < CD O o o © © © © iH T)< O o iH o • o • o • © • © • © • © • © • © • Sz; t- CO Tf* "^ iH iH CD iH !>• M • Xi la 00 iH CD OS 00 CO 00 © O oo 00 Oi "^ © © iO CD la o? t- 00 iH r-l cq CD -* la '^ o o o © © © © iH ■* iH o o • o • © • © • © © • © • © • t- CO "* ■^J* rH iO la t«- CD la 00 iH CD OS e• CO Tt* iH LO iO t- C4 .t^ \o 00 CD OS N ua t- kjQ .a 00 00 "^ © CD 00 C !( j;il! t ; Using the same numbers for the pounds of the different stocks, another percentage table may be worked out for the combed stock alone. The results are as shown in the fol- lowing : Value of Comber Waste to be Distributed, 536.90 stock. Pounds. Per Cent. Value of Waste. 1^ combed 10178 41.00 220.13 1%B 3417 13.75 73.83 1% 6946 28.00 150.33 1% s. 1. 1333 5.37 28.83 r/i6 E 957 3.85 20.67 1 % s. i. 1994 8.03 43.11 Total 24825 100.00 536.90 Adding the value of the comber waste to that of all other waste, on the combed stock, gives the following: stock. 1% combed IV4E 1% 1% s. 1. 1%6E 1 % s. i. Comber waste Other waste 220.13 82.24 73.83 27.61 150.33 56.13 28.83 10.77 20.67 7.74 43.11 16.12 Total 302.37 101.44 206.46 39.60 28.41 59.23 There remains to be determined what proportion of the 1^/4 stock that is put into the pickers, belongs to the carded work, and what proportion belongs to the combed work. This may be obtained by using the weight of finished carded work turned out (4092 lbs.) and the weight of finished combed work on the carded basis (10178 lbs.). The sum of these two num- bers is 14270, then 14270 :4092 : :17791 (total pounds IV4 opened): the pounds going to carded work, or 5101. 17791 — 5101= 12690 lbs. 1^/4 used for combed work. 100 Assembling the foregoing figures, gives the following data to work with when obtaining the actual cost per pound of the cotton in the finished yam. stock. Pounds, Opened. Average Price. Waste Value. Pounds Yarn. 1% 3875 .15 25.10 3045 1% carded 5101 .17% 33.07 4010 1% combed 12690 .17% 302.37 8179 1%E 4070 .20 101.44 2746 1% 8658 .21 206.46 5581 l%s.l. 1659 .22 39.60 1045 ITieE 1132 .24 28.41 770 1^ s. i. 2*488 .26 59.23 1565 To find the cost per pound of the cotton in the finished yam, having the above data, multiply the pounds opened by the average price per pound. From this result subtract the value of the waste sold and divide the remainder by the pounds of yam spun. The following figures give the cost per pound, in the finished yam, for each stock being run : (3875X.15)— 25.10 3045 =.182623 cost per lb. of 1V% (5101X.175)— 33.07 4010 =.214365 cost per lb. of 1% carded (12690X.175)— 302.37 8179 (4070X.20)— 101.44 2746 =.234549 cost per lb. of VA combed =.259490 cost per lb. of l^^E 101 i (8658X.21)— 206.46 5581 (1659X.22)— 39.60 1045 (1132X.24)— 28.41 770 (2488X.26)— 59.23 1565 =.288786 cost per lb. of 1% =.311368 cost per lb. of 1% s. i. =.315935 cost per lb. of VAq E =.375495 cost per lb. of li/^ s. i. After the cost per pound of the cotton in the finished yam has been obtained, it is necessary to attach to each style the cost of the cotton in both the warp and the filling. Since, in practically all of the styles being run, the warp and filling are made from different stocks, the percentage of warp, also Ox filling, in a pound of cloth must be taken into considera- tion. Take style A, for an illustration, the count of the warp yam is 35s which is made from 1% stock, and in the yam this stock costs .182623 per lb. The percentage of the cloth made from the warp is 59, then 59% of .182623, or .107747, is the cost of the cotton entering into the warp in one pound of cloth. Similarly, the count of the filling, in this style, is 50s, which is made from 1% carded stock, and in the yarn this stock costs .214365 per pound. In one pound of cloth there is 41% of filling, then 41% of .214365, or .087889, is the cost of the cotton entering into the filling in one pound of cloth. .107747 + .087889, or .295636, gives the cost of cotton, in one pound of cloth. This method is followed in the table on pages 104 and 105, which shows the cost of the cotton in one pound of cloth, for each of the styles being run. Note that style B is the only one in which both the warp and filling are spun from the same stock; the stock, in both cases, being 1% combed. In such a case it is, of course, not necessary to deal with the percentage, the cost of the cotton 102 m a pound of cloth being the same as the cost per pound of the cotton in the yam. In style E and F. M., both of which call for silk filling, the cost of this portion of the cloth is dealt with for the first time. It is assumed that the 22/26 denier silk, in style R, cost the mill 2.90 per pound, and that the 14/16 denier silk in style F. M. cost 3.35 per pound. Since the filling, in style R, represents 26% of the weight of the cloth, then 26% of 2.90, or .7540, is the cost of the filling in one pound of the cloth. In stlye F. M. the filling constitutes 15% of the weight of the cloth, then 15% of 3.35, or .5025 is the cost of the fill- ing in one pound of this cloth. 103 1^1 n 1 . 1 ■' ■1 \ Cotton Costs on Style A. B. c. D. E. F. G. Counts warp and cotton Counts filling and cotton 1% 35 1% 50 1% 55 1^ 60 1% 60 1% s. i. 85 1% 90 1 % s. i. 130 1% 50 1% 75 1% 60 1% 75 1% 60 1% s. i. 85 % warp 59 51 59 59 60.2 % 57.2 60 % filling 41 49 41 41 39.8 42.8 40 Warp cost .107747 Warp& filling. .138384 .170383 .141198 .134162 .140729 Filling cost .087889 same stock. .127661 .153953 .114937 .123600 .124547 Total .195636 .234549 .266045 .324336 .256135 .257762 .265276 Cotton Costs on Style F.A. F.B. F.C. F.D. Counts warp and cotton Counts filling and cotton 1% 45 1% 70 1% 80 1% 100 1% 40/2 Mer. 1% 40/2 Mer. 1% 60 1% 75 1% 40/2 1% 50 1 % s. i. 130 1% 90 % warp 61 43 15.8 59 5 32 42 % filling 39 27.3 13.9 41 21 Warp cost .130762 .124178 .028854 .138384 .009131 .075055 .121290 Filling cost .112626 .078838 .025384 .118402 .078854 Total .243388 .203016 .054238 .256786 .009131 .153909 .121290 .257254 .284330 104 Plain Styles H. J. K. L. M N. P. R. 1% 60 1% s. i. 90 1% 80 1 % s. i. 120 1% 60 1% s. i. 90 1 % s. i. 100 1^ 50 1 % s. i. 120 1^ 55 1% 75 1% 70 1%E 45 1% 70 1%E 45 1% 60 22/26 Denier 62.5 63 69.5 25.3 44.6 59 29 32 74 37.5 37 30.5 30.1 41 71 68 26 .146593 .181935 .163011 .095000 .104609 .138384 .083748 .092411 .173566 .116763 .138933 .094967 .113024 .118402 .184238 .176453 .7540 .263356 .320868 .257978 .095000 .217633 .256786 .267986 .268864 .927566 Y .312633 Fancy Styles F.E. F.F. F.G. F. H. F.K. F.M. 1%E 65/2 H.T. 1%E 45 H.T. VAeE 120/4 l^E 65/2 1 % s. i. 120/2 1% 50 1% 80/2 1% 40/2 1V4 50 1% 50 1% 50 50 60 1% s. i. 90 1% 60 14/16 Denier 13.5 38.25 3.5 56.4 43.6 7.2 23.2 54 67 85 48.25 40.1 26 46 33 15 .035031 .099255 .009082 .211779 .125910 .013149 .054415 .126656 .157148 .199366 .152438 .085960 • .055735 .098608 .102751 .5025 .035031 .251693 .009082 .297739 .125910 .068884 .054415 .225264 .259899 .701866 y\^ y^ .286724 .306821 Y .249209 105 Part IV SUMMARY OF ALL COSTS AND CONCLUSION Having obtained the cost per pound of labor, fixed charges, and cotton, for each of the different styles being run, it is next necessary to assemble these different costs for each style, in order to obtain the total cost per pound of manufacturing. Knowing the total manufacturing cost per pound, the cost per yard is readily obtained by dividing the total cost per pound, of any style, by the yards per pound of that style. Take style A, for an illustration, the labor cost per pound on this style is .083375; the cost per pound of overhead is .097892 and the cotton cost per pound is .195636, making a total manufacturing cost of .376903 per lb. This style weighs five yards to the pound, then .376903-^5, or .075381, is the total manufacturing cost per yard on this style. This is the method followed in the table shown on pages 108 and 109, and which gives the total manufacturing cost per pound, also per yard, for each of the different styles dealt with in this work. There are several points of more or less importance which have not been dealt with previously, in this work, as it was considered better to postpone them for later pages where they could be considered under one heading. Many of these questions, to be taken up at this time, must be decided in- dividually, according to the conditions which exist in each particular case and, consequently, not much more can be done here than to point them out. 106 As has previously been stated, no one work can deal with the many different conditions which are met with in cot- ton mills, and it is the main object of a work of this kind to deal with the fundamental principles and let the reader apply them as may best fit his requirements. The questions that are to be considered in the next few pages, will be taken up under the headings of labor, overhead and cotton, thus deal- ing with them in the order that was used in previous pages. Labob Effect of waste, at comher, on cost per pound at previous processes : When obtaining the labor cost per pound on the pickers, also on the cards, the final pounds turned off on the jacks were taken as the pounds run, although the ratio be- tween the carded and the combed work produced by the jacks does not give the correct ratio at the cards, since the combed work loses much more in waste between these two processes. To illustrate, suppose the jacks are turning off 12000 lbs. of 1% stock, in a given time, and that of this amount 4000 lbs. are carded and 8000 lbs. combed. It will also be assumed, for the purpose of illustration, that the carded and combed work have the same rate of production on the cards, and that the combers are taking out 20%. If, now, the method adopted in previous pages to find the labor cost per pound on the cards is followed, then the cost of labor, which will be taken as 21.00, is divided by the pounds turned off on the jacks, 12000, which gives a labor cost per pound of .00175 for the carded work, and also for the combed work. This, manifestly, is not correct since the cost is being attached to the pounds turned off at the jacks, and any waste, taken out at the combers, must increase the cost per pound of picking for the combed work. The correct method to follow is to first place the combed work on the same basis as the carded, as regards pounds run through the cards, by dividing the number of pounds combed by 100% less the per cent taken out at the combers. Using this result for the pounds of combed work, the pay on the cards can be split between the carded and combed work 107 Total Cost, Peb Pound, Also "J I I Style A. B. c. D. E. F. Cost, per pound, of labor Cost, per pound, of overhead Cost, per pound, of cotton Total cost, per pound Yards, per pound .083375 .097892 .195636 .125365 .154320 .234549 .153710 .197845 .266045 .239371 .311873 .324336 .135521 .174466 .256135 .149909 .193792 .257762 .376903 5.00 .514234 8.50 .617600 11.75 .875580 16.46 .566122 12.30 .601463 14.10 Total cost, per yard .075381 .060498 .052562 .053194 .046026 .042657 Per Yard, on Plain Styles Total Cost, Per Pound, Also Style F.A. F.B. F.C. F.D. F.E. ' F.F. Cost, per pound, of labor Cost, per pound, of overhead Cost, per pound, of cotton .169063 .196093 .243388 .336287 .295573 .257254 .192528 .227098 .256786 .387610 .299371 .284330 .214630 .257703 .286724 .300111 .304393 .306821 Total cost, per pound Yards per pound .608544 10.96 .889114 10.31 .676412 11.82 .971311 9.25 .759057 8.53 .911325 16.59 Total cost, per yard .055524 .086238 .057226 .105007 .088987 .054932 G. H. J. K. L. M. N. P. E. .153894 .196230 .265276 .153907 .195508 .263356 .204240 .269639 .320868 .794747 15.36 .148429 .187627 .257978 .186990 .249701 .312633 .147824 .179984 .256786 .113448 .150203 .267986 .111259 .147923 .268864 .185833 .221737 .927566 .615400 11.00 .612771 10.66 .594034 13.06 .749324 14.52 584594 10.31 .531637 6.75 .528046 6.75 1.335136 14.63 .055945 .057483 .051741 .045485 .051606 .056702 .078761 .078229 .091260 Per Yard, on Fancy Styles F.G. F.H. F.K. F.M. .199500 .191019 .249209 .162910 .154138 .225264 .239330 .227330 .259899 .403622 .311686 .701866 .639728 11.15 .542312 5.16 .726559 10.75 1.417174 14.48 .057375 .105099 .067587 .097871 I 108 109 3*' Total Cost, Per Pound, Also Style Cost, per pound, of labor Cost, per pound, of overhead Cost, per pound, of cotton Total cost, per pound Yards, per pound A. B. C. D. Total cost, per yard .083375 .097892 .195636 .376903 5.00 .075381 .125365 .154320 .234549 .514234 8.50 .153710 .197845 .266045 E. .060498 .617600 11.75 ,052562 .239371 .311873 .324336 F. .135521 .149909 .174466 .256135 ,875580 16.46 ,053194 .566122 12.30 .193792 .257762 601463 14.10 .046026 042657 Total Cost, Per Pound, Also Style F. A. F.B. F.C. F.D. F.E. ' F.F. Cost, per pound, of labor Cost, per pound, of overhead Cost, per pound, of cotton Total cost, per pound Yards per pound .169063 .196093 .243388 .336287 .295573 .257254 .192528 .227098 .256786 .387610 .299371 .284330 .214630 .257703 .286724 .300111 .304393 .306821 .608544 10.96 .889114 10.31 .676412 11.82 .971311 9.25 .759057 8.53 .911325 16.59 Total cost, per yard .055524 .086238 .057226 .105007 .088987 .054932 Per Yard, on Plain Styles G. H. J. K L. M. N. P. B. .153894 .196230 .265276 .153907 .195508 .263356 .204240 .269639 .320868 . .794747 15.36 .148429 .187627 .257978 .186990 .249701 .312633 .147824 .179984 .256786 .113448 .150203 .267986 .111259 .147923 .268864 .185833 .221737 .927566 .615400 11.00 .612771 10.66 .594034 13.06 .749324 14.52 584594 10.31 .531637 6.75 .528046 6.75 1.335136 14.63 .055945 .057483 .051741 .045485 .051606 .056702 .078761 .078229 .091260 Per Yard, on Fancy Styles F.G. F.H. F.K. F.M. .199500 .191019 .249209 .162910 .154138 .225264 .239330 .227330 .259899 .403622 .311686 .701866 .639728 11.15 .542312 5.16 .726559 10.75 1.417174 14.48 .057375 .105099 .067587 .097871 108 109 f by proportion, or on a percentage basis, after which the cost per pound is obtained by dividing the labor cost of either the carded or combed work by the number of pounds turned out at the jacks, on that work. This procedure is as follows, taking the production and pay just given : 8000 (lbs. combed)--.80 (100%— 20%) =10000 lbs. 10000 (lbs. combed) +4000 (lbs. carded)=14000 lbs. 10000-f-14000-=.7143, or, 71.43% 4000-f-14000=.2857, or, 28.57% 71.43% of 21.00 (total labor cost)=15.00, labor cost to be charged to the combed work. 28.57%of 21.00=6.00, labor cost to be charged to the carded work. 15^8000 (lbs. combed work produced on jacks) =.001875, cost per pound on combed work. 6.00^-4000 (lbs. carded work produced on jacks)=.0015, cost per pound on carded work. Comparing these figures with .00175, which is the cost per pound obtained by dividing the total of the labor pay by the pounds run, it is found that this figure favors the combed work to the extent of .000125 per pound, while it overcharges the carded work .00025 per pound. There arises the question, does the difference in the fig- ures justify taking this point into consideration, and the answer to this question will always depend upon the condi- tions under which the work is being done. The influence of the comber waste on the labor cost per pound at the pickers and cards, was not taken into consideration when finding the labor costs in this work, as it was desired to bring out, on those machines, only the influence that the differences in the rate of production has upon the labor cost per pound of the different stocks. Under cotton costs, the distinction between the carded and combed work was taken into consideration when split- ting the value of the waste sold, other than comber waste. Effect of waste, in spinning room, on cost per pound in card room : When obtaining the labor cost per pound, in the 110 card room, the pounds turned out at the jacks were taken as the number of pounds run. This number of pounds, how- ever, does not represent the number of pounds of yam made, since there is a certain loss in the spinning room, due to the waste. It is not, consequently, accurate to use the pounds produced at the jacks, the accurate method being to use the pounds produced on the spinning frames. To adopt this method, however, would mean combining the two distinct de- partments of carding and spinning, when finding the labor cost per pound. There are many disadvantages to this method and it is much better to deal with each department separately, as was done when finding the labor cost. There should be, however, some allowance made for the difference between the pounds of roving and the pounds of yam made from it. A good method to follow is to divide the total labor cost per pound, in the card room, by 100% less the per cent of waste taken out in the spinning room. An illustration wilf serve to make this point clearer. Suppose that, after the proper distributions of the labor cost in the card room, it is found that a certain hank roving is costing 3c per pound for labor in this department. This cost is based on the pounds run on the jacks, and is correct for the cost so far as the finished roving is concemed, but if this cost per pound in the card room is added to the cost per pound in the spinning room, in order to obtain the cost per pound of the finished yam, then the figures are not correct, since the number of pounds of roving does not agree with the number of pounds of yarn made from that roving, the stock having lost a certain amount of waste in the spinning room. If this waste amounts to 2%, then .03, the labor cost per pound on the roving, is 100%— 2%, or 98%, of the carding cost in the finished yarn. Then, .03-f-.98, or, .030612 is the cost per pound of carding that should be added to the cost per pound of spinning, when finding the total labor cost per pound on the yarn. Ill m Overhead Supplies required when starting a mill: — ^In taking the cost of the machinery, for the different units, when making the distribution for the overhead charges, the cost of all sup- plies required to put the machinery into running condition, was added to the cost of the machines themselves. Conse- quently, the charge for depreciation includes a charge against these supplies. There was, however, a separate charge made for all supplies purchased during the period the mill was run, and the cost of these supplies was distributed to each unit under the heading of supplies. Thus, there is a double charge against this item, which, if possible, should be avoided. In some cases, only those supplies that have a life equal to that of the machinery are included with the cost of the machinery, while the purchase of other supplies that depre- ciate more rapidly, such as spools, bobbins, shuttles and so on, and which must be obtained when the mill is started, is considered as a part of the works expense. This method naturally throws an undue burden on the manufacturing cost, as the item of supplies, necessary when starting a mill, is a large one. It has, however, the advantage of allowing the cost of any future supplies, purchased to take the place of those worn out, to be made a direct charge against the unit for which the supplies may be purchased. Possibly a better method than either of the above is to include with the cost of the machinery, the cost of all sup- plies which have a life equal to that of the machines, but to set up a separate depreciation account for those supplies that depreciate more rapidly, this account to take care of the pur- chase of any supplies made to replace supplies worn out. The term supplies, as above used, does not, of course, in- clude those supplies that are being constantly replenished, such as oil, for instance, and which should always be made a direct charge against the unit for which they are purchased. Depreciation charge included in overhead: The ques- tion of including depreciation, as a part of the overhead, will always be one concerning which there is certain to be con- siderable difference of opinion. The temptation to disregard 113 the depreciation account in lean years, and trust to some future time to take care of it, is a strong one. Mill buildings and their contents, however, do depreciate and many cases could be cited where a disregard of this im- portant point has brought about the need for new capital and re-organization. A policy of charging off, each year, a cer- tain amount for depreciation, strictly adhered to, is the only safe one in the end. Including the depreciation with the overhead, in the man- ner adopted in this work, is not, of course, the only method of taking care of this item, but it would seem to be as accurate and convenient as any. Moreover, if depreciation is made a part of the manufacturing cost, it is definitely known at what price each style must be sold in order to cover this item. The amount that should be charged off for depreciation on the buildings and machinery must be left for each one to decide as one's judgment may determine, the main point being that something is so charged. In this work depreciation has been taken at 2^^% for buildings and 4% for machinery, which may be considered a fair allowance under ordinary conditions. Including interest on investment in overhead: When figuring the overhead, the item of interest on the investment was included ; this interest was figured at the rate of six per cent. The object of including this interest with the manu- facturing cost is to obtain a final cost figure, on the product, which will return a fair profit on the investment. There may be a question as to the propriety of including a dividend with the manufacturing costs, and yet, it would seem that the money, invested in a manufacturing plant, should be entitled to some respect. It is placed there with the expectation of some fair return, although it is true that this expectation is not always realized. Again, the end aimed for, in all cost finding, should be considered. If it is to learn what the product can be sold for, in order to return a new dollar for an old one, then interest on investment has no place in the overhead. On the other hand, if the object is to learn the price at which the product 113 < ': I can be sold, and return a fair profit on the investment, tken interest on investment rightly belongs in overhead. The argument may be made that, by including interest in overhead, no means is given by which one may know what portion of the final figure, for cost, is manufacturing, and what portion is profit. This is true, and yet, it is possible to have the advantages of such ignorance outweigh the disad- vantages. Many times it is better not to know how much a price can be shaded without injury to anyone except the stockholder. Raw Stock Apportioning value of waste : When obtaining the cost per pound of the cotton in the finished product, each stock was credited with its portion of the value of the waste sold, the value of the waste being apportioned, to the different stocks, on a percentage basis, worked out from the number of pounds run on the different stocks. The waste item in a cotton mill, especially in one making combed work, is a large one, and many mills are finding it to their advantage to keep a strict account of the waste made from each one of the differ- ent stocks being run. This method is, of course, more accurate than the one adopted in this work, and is preferable when circumstances justify the additional labor in the mill, which such a system entails. When such a system is in force, the amount to be credited to each stock, for waste sold, is a matter of record and does not require being worked out on a percentage basis. Effect of different methods of selling cotton, on cost per pound : When obtaining the cost per pound of the cotton, in the finished yam, no allowance was made for the different methods of selling American and Egyptian cotton, although in some instances it may be deemed advisable to take this point into consideration, when finding the cost of the raw stock. American cotton is sold by the gross weight, while Egyp- tian cotton is sold by the net weight, consequently to credit both the American and Egyptian cotton for bagging and hoops sold, in proportion to the number of pounds of each lU kind of cotton run, is, manifestly, not accurate. This is an- other instance where the conditions must be known, before making any decision as to taking the question into con- sideration. The reader should not gather the impression, from this work, that the manufacturer is able, at all times, to secure for his product the price he may place upon it. More often the product has to be sold in a buyer's market, not in a seller's market, and the manufacturer is compelled to accept the price offered, or let his machinery stand idle. The chief ad- vantage of an accurate cost system, under such circumstances, is that it enables the mill to determine the fabrics which it can afford to manufacture, and, if there is a choice, to select the one which offers the best return. The fact that' one mill is making a cloth at a certain price does not prove that a second mill can afford to make the same fabric at the same price. It is far better for the second mill to learn definitely what it will cost to make the cloth and then base its quotations on that figure. 115 *l ■"^v " A' , v>- ■ . <■ Nichols A method of determining costa in a cotton mill. ' \ I r: NEH 3tP 01^^ -'; '' ^^ ■ » '- •" V - .^ ' . . ■ ii;.-'x ^ .■?• ■ -.i; ^-a-^^ta ^ '^ - \ «;?^ r1 ■\- END OF TITLE