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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: Armstrong, George Simpson Title: Planning and time studies Place: New Yorl< Date: [1921] '?l| -62^^-2 COLUMBIA UNIVERSITY LIBRARIES PRESERVATION BIBLIOGRAPHIC MICROFORM TARGET MASTER NEGATIVE # ORIGINAL MATERIAL AS FILMED - EXISTING BIBLIOGRAPHIC RECORD ' k&uslnetti ^ Ar6 ■ .. I I . .1 ^ II „ I , J W.. I i j i I \tmm f Armstrong, George S. Planning and time studies, by George S. Armstrong ... New York, Industrial extension institute incorporated xvi, 413 p. illus. (incl. forms) diagrs. 19J"". (Half-title: Factory management course and service. -fVr^ rV.^ N I. Efficiency, Industrial. 2. Factory management. i. Title. 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Rt5 Columbia JBnitittiitp LIBRARY School of Business r FACTORY MANAGEMENT COURSE AND SERVICE A Series of Interlocking Text Books Written for the Industrial Extension Institute by Factory Man- agers and Consulting Engineers as Part of the Factory Management Course and Service INDUSTRIAL EXTENSION INSTITUTE INCORPORATED NEW YORK ^ I ADVISORY COUNCIL Nicholas Thiel Picker, Pres., Charles E. Funk, Secy., Chas. a. Brockaway, Treas., Alwin von Auw, Oen. Mgr. Boorum-Pease Co, Charles C. Goodrich, Ooodrich-Lockhart Co. Willard F. Hine, Consulting Appraisal Engi- neer, Chief Gas Engr., Public Service Comm, N. y. Charles P. Steinmetz, Chief Consulting Engineer, General Electric Co. Jervis R. Harbeck, Vice-Pres. American Can Co. Benj. a. Franklin, Vice-Pres, Strathmore Paper Co., Lieut. Col. Ord- nance Dept. Charles B. Going, Formerly Editor, The Engi- neering Magazine, Con- sulting Industrial Engi- neer, STAFF. C. E. Knoeppel, Pre*. C. E. Knoeppel & Co., Consulting Engineers. Meyek Bloom field, Consultant on Personnel. George S. Armstrong, Consulting Inausirial Engii^eer. \l. B. TWYFORD, Purchasing Agent, Nichols Cop- per Co. Nicholas Thiel Fickeb. Consulting Industrial Engineer. DWIGHT T. Farnham, Consulting Industrial Engineer. Willard L. Case, Pres. Willard L. Case & Co., Consulting Engineers. David Moffat Myers, Origgs & Myers, Consulting Engineers. Joseph W. Roe, Prof. Machine Design, Sheffield Scientiflo School, Yale Univ. Albert A. Dowo, Consuming Engineer. WiixiAM F. Hunt, Consulting Inausirial Engineer. Charles W. MoKay, Appraisal Engineer, Cooley & Marvin. Organization and Administra- tion. Labor and Compensation. Planning and Time-Study. Purchasing and Storing. Industrial Cost Finding, Executive Statistical Control. The Factory Building. The Power Plant. The Mechanical Equipment. Tools and Patterns. - Handling Material in Factor- ies. Valuing Industrial Properties. p PLANNING AND TIME STUDIES BY GEORGE S. ARMSTRONG, C.E., M.E. Consulting Industrial Engineer VOLUME 3 FACTORY MANAGEMENT COURSE INDUSTRIAL EXTENSION INSTITUTE INCORPORATED NEW YORK ^H- H-? 1^4 • C()l)yrij;ht.l921. bv INDUSTRIAL EXTENSION INSTITUTE INCORPORATED (fi O AcO/C^WJtx^^ J) ^33 i-r 4 , 1 • ^:3 PREFACE Success is the motive of business, and success demands mastery. Pascal, the brilliant French savant, has said ''To foresee is to rule, ' ' and Church, an able exponent of modern management, has furnished an excellent supplement, "Plan- ning is the exercise of intelligent foresight." These two brief quotations contain the statement of the whole purpose of planning and a succinct definition of its operation. Planning is the product of science applied to manufacture. As such it is a new arrival whose coming has not been un- attended by misgivings and doubts as to its ultimate good and permanence. Many new movements, policies, or schools of thought acquire a momentum from the sheer novelty and freshness of the enterprise which they comprise. Frequently when this resource is expended the action ceases and the affair becomes defunct. Planning, and the entire thought which has crystal- lized in the terms ''efficiency engineering" or ''scientific man- agement, ' ' hovered for a time perilously near to such an end, for the reason that underlying business necessities were ignored, or, if not, that they suffered from the exaggeration of the new ideas. Happily, the whole tendency was funda- mentally sound, for it was a part of the great drift or economic pressure towards conservation. Hence, despite the lack of proportionate judgment of many engaged in the new school of management, it has survived and has become commercially legitimatized and successful. Business is now recognized as a science based on definite principles and methods, and not as a vehicle for instinctive V vt PREFACE PREFACE Vii effort and vaguely directed purpose. It has emerged from the caves of ignorance and now stands with the professions of medicine, law, and engineering as an occupation, dignified by its human service and the widening knowledge underlying its operations. So this treatise has been written in the attempt to reduce the purpose of planning as one phase of modern industrial management to a definite business basis. It describes the ele- ments of planning or the machinery by which it works, and then, by a selected series of concrete examples, illustrates its method. The treatise opens with a demonstration of the com- mercial justification as to the ''profit" basis of planning as applied to industrial operation. It continues with a searching analysis of the elements of planning. In this section frequent reference is made to active practice in support and explana- tion of the development. The latter pari of the book is devoted to a detailed descrip- tion of actual installations, illustrating the methods and com- pleting the theory advanced in the earlier chapters. The installations which have been selected for this purpose repre- sent both the metal and textile industries. Three of the com- panies represented operate with a speculative commodity as raw material. One of these is essentially an assembly manu- facture, that is, parts are produced for independent stores from which are assembled a variety of finished articles, frequently using identical parts. The third installation represents continuous manufacture, that is, the product starts in toto and is processed in this condition by a series of fin- ishing processes. The demands represented by the sales of these different manufactures range from straight stocking, to production by specification, and to direct shipment without finished stores. In fact, it is believed that these installations cover a wide gamut of manufacturing circumstances and demands, and hence are of value for illustrations and instruction. The treatise concludes with a consideration of time study. Herein the subject is defined, and the essential elements of time study are deduced. In addition, the technique of stop watch operation is presented, and instruction is given as to the method of determining time standards from time obser- vations. The chief effort of this volume has been to present in some- thing other than fragmentary form a history and an instruc- tive narrative of what has transpired and is in course of development in the industrial world in the matter of scientific industrial control. In conclusion the author wishes to make acknowledgment to his firm for the opportunity gained through it for the varied contacts and experience which have furnished the background of this treatise, and to thank the editor, Mr. Charles E. Funk, and others for their kindly co-operation, specific suggestions, and sincere and sympathetic interest. George S. Armstrong. TABLE OF CONTENTS. CHAPTER I THE BUSINESS BASIS OF PLANNING PAGE Value of Planning 1 Modern versus Old-School Management 1 The Plant Unit 3 Planning Defined 4 Planning and Service 5 Planning and Finance T Planning Economizes Fixed Capital 10 Planning Increases Fixed-Capital Earnings .... 13 Planning and Overhead • 14 Advantages of Planning Summarized 15 CHAPTER II THE ELEMENTS OF PLANNING Classifying the Lines of Action 18 Definition of Terms 21 Demand 24 Material 26 Equipment 27 Time Standards 29 Control Mechanism 29 Organization 30 ix I X TABLE OF CONTENTS CHAPTER III DEMAND AS AN ELEMENT OF PLANNING PAGE Fluctuation 33 The Types of Manufacture 34 Combination Types 35 Analyzing Past Sales — Graphs 37 The Problem of Seasonal Fluctuation 40 Seasonal Fluctuation and Labor 42 The Production Curve 43 Keeping Production Uniform 44 Variety of Demand 47 Danger in Too Great Variety 51 Delivery Requirement 52 Demand and Plant Capacity 53 Dealing with Orders Individually 55 Amount or Quantity 57 Time of Processing 59 Setting-up, or Changing, Time 61 Specifications 65 Specification Sheets 67 Recapitulation 69 CHAPTER IV MATERIAL AS AN ELEMENT OF PLANNING Determining Kind and Quantity 70 Material Estimate 71 Estimating by Analysis of Orders 72 The Two Basic Purchasing Methods 75 Relation Between Planning and Purchasing Depart- ments 81 Speculative Markets 85 Purchase Methods . • 86 Purchase Records , , , , 89 TABLE OF CONTENTS x% PAGE Recording the Movement of Material 91 Requisitions from Stores 94 Routing Material in Process 95 Defective Material 97 Economic Use of Material 99 Recapitulation 100 CHAPTER V EQUIPMENT AS AN ELEMENT OF PLANNING Machinery and Production 102 Inventory of Equipment . . . 103 Balance of Equipment 108 "Balance" in a Textile Plant 109 Changing Conditions Affect Balance 110 Arrangement of Equipment 112 Choosing the Right Method of Arrangement .... 113 Capacity of Equipment 117 Constant Experiment Necessary 121 Accessories and Small Tools 124 Recording Machine Activity 129 Functions of Maintenance Department 133 Recapitulation 137 CHAPTER VI CONTROL MECHANISM AS AN ELEMENT OF PLANNING Definition 133 Scheduling and Dispatching 139 Application of Demand against Equipment .... 140 Records of Work in Process 143 Advantages of Exact Schedules 147 Routine of Daily Planning 147 xii TABLE OF CONTENTS PAGE Planning Sheets 149 Planning Boards . . . . ' 153 Scheduling in Practice 159 Detail of Scheduling Methods 161 Operations in Head Planning Department .... 161 Operations in Departmental Planning Booths ... 164 Production on Orders 167 Work in Process 169 Mechanical Aids in the Planning Department . . . 171 Kecapitulation 175 CHAPTER VII TIME STANDARDS AS AN ELEMENT OF PLANNING The Keystone of Manufacturing 177 Determining the Time Standard 179 Time Standards Determined from Unit Costs . . . 181 Time Standards Determined from Piece Rates . . . 183 Time Standard Determined from Time Study . . . 185 Time Study by Approximation 186 Time Study by Analysis 187 The Two Essentials in Planning 189 Detailed Operation Cards 192 Recapitulation 193 CHAPTER VIII ORGANIZATION AS AN ELEMENT OF PLANNING Variability of Planning Organization 194 The Typical Organization Charts 195 TABLE OF CONTENTS xiii PAGE The Ideal Arrangement 1^7 Functional Duties l^^ Evolution of Planning Department 199 The Department Head .• • 1^9 Internal Organization 200 Duties of Departmental Office 203 Recapitulation 204 CHAPTER IX PLANNING APPLIED TO THE MANUFACTURE OF AUTOMOBILE SPRINGS Nature of Business 206 Demand for Product 207 Master Specification Sheets 207 The Order Record • 210 The Production Register 211 Record of Stock Requirements 211 Record of Operations . 211 Dispatch Cards 215 Making Out the Dispatch Cards 217 The Control Board 220 Record of Stock Withdrawals 223 Work Tags 223 Record of Production 226 Production Schedule 227 Importance of Control and Dispatching 231 Activity Reports 234 Miscellaneous 235 Summary 236 xiv TABLE OF CONTENTS CHAPTER X • ELEMENTS OF PLANNING APPLIED TO METAL-STAMPING MANUFACTURE The Line of Manufacture 237 Methods of the Company 238 PAGE The New System: Sales Orders 239 The Form of Order 243 Ordering Material 243 Material-Stock Record 245 Part-Stock Record 248 Production Orders 251 Scheduling and Dispatching 252 Inspection 262 Advantages of the System 262 CHAPTER XI PLANNING APPLIED TO THE MANUFACTURE ROPE AND CORDAGE The Company and Its Product 264 Determining Sales 264 Reserve and Desirable Order Quantity 267 Forms of Sales Orders 269 Itemization of Orders 270 Handling the Fanfolds 273 Stock Sheet 274 Handling Stock Orders 276 Planning Control File 277 Yarn Stock Sheet 280 Analyzing Demand against Equipment 281 Occupation of the Equipment 283 Delivery Requirements 286 Control of Deliveries 289 A Distinctive System 295 TABLE OF CONTENTS xv CHAPTER XII PLANNING APPLIED TO KNITWEAR MANUFACTURE PAGE The Knitwear Plant and Its Manufacture .... 297 Receipt of Orders 300 Specification Cards 301 Minimum for Cut-Dozens Storage 303 Issuance Procedure 305 Control of the Knitting Operation 309 Seaming and Finishing: Grouping 312 Finishing Department Control . 313 Forms Used 320 Installation Representative of Its Kind . . . . . 322 CHAPTER XIII THE METHOD OF TIME STUDY Time Study Classified 324 Technique of the Stop-Watch 329 Dial Calibration 332 Setting Standards from Time Study Data .... 333 Representative Time-Studies 335 Allowing for Fatigue 335 Time Standards and Scientific Management .... 344 F. W. Taylor on Fatigue 345 Rate-Setting and the Fatigue Factor 350 Pace, and Rest Periods 352 Rate-Setting as a Profession . 354 Motion-Study 354 Stop-Watch, Moving Picture, and Camera .... 355 Case Illustrating Motion Study ....... 356 Folding Shirts 356 The Old System 358 The New System 362 Final Disposition of Time Study Data 364 / I xvi TABLE OF CONTENTS CHAPTER XIV APPLICATION OF TIME STUDY TO OPERATING BETTERMENTS PAGE The Basis for Wage Incentives 366 Time Study for Securing Operating Betterments . . 367 Betterments in Yarn Spinning 369 Betterments in a Window-Screen Plant 372 Betterment in a Spinning Room 374 Betterment in a Leather Factory 374 Betterment in a Plating Department 375 Betterments in an Excelsior Plant 378 Betterments in Gang Organization 381 Betterment in a Tableware Plant 382 Betterments in a Knitwear Factory 383 Betterment in a Foundry 386 Time Study Not a Panacea 388 The Relation of Time Study to the Worker .... 390 A Sermon to Time-Study Men 391 Time Study's Aid in War Work 392 Conclusion . . . , 393 PLANNING AND TIME-STUDIES CHAPTER I THE BUSINESS BASIS OF PLANNING Value of Planning. — *^In planning that twenty-min- ute operation, in adjusting to a hair the time neces- sary, forty engineers spent nearly three days. Every second of those twenty minutes was as carefully cal- culated as the beats of the hair-spring of a watch." This quotation, taken from a report of the Inter- borough Company, describes one of the spectacular incidents in the construction of the great extension to the elevated-railroad facilities of New York City. The expenditure of effort and money which it indi- cates was made because the bit of construction in- volved was justified in so far as it could reduce to a minimum any delay in the operation of the existing transportation system. The incident epitomizes the value of planning in construction, and introduces with a keen point of popular interest the necessarily severe and serious discussion which follows, concern- ing the business basis of planning as applied to manu- facture. Modem versus Old-School Management. — Modem industrial management is distinguished from the executive efforts of the old school, chiefly by reason of a different view of production — the scientific — which it has acquired. This change in viewpoint has M 2 PLANNING AND TIME STUDY come with maturity. Industry is no longer infantile and novel— its initial rush has passed, and the thing Itself has been scrutinized, analyzed, and defined. Production has proved to be the essential function of industry and, as such, has come to be regarded in Its true aspect as primarily a physical problem cap- able of measurement and predetermined control. The whole scheme of manufacture, with all its production methods, has been reduced from a variable process, as carried on by small and differing proprietors, to a clean-cut, economic entity with sharply defined char- acteristics and with reasonably absolute bases for comparisons and deductions. Manufacture has been found to be nothing more or less than a wealth-producing device which operates by increasing the utility of the raw material it re- ceives. In the process part of the increased value be- comes the compensation for the success of the oper- ation, and at once its impetus as well. The plant and equipment have come to be recog- nized as, in effect, a physical instrument designed and developed to accomplish this end of wealth-produc- tion. Of course, it is evident that the instrument must vary according to the technical requirements of the manufacturing processes, but whether the plant be a paper mill or a pin factory, a foundry or a silk mill, a confectionery or a shipyard, it is now understood that the principle persists and that only the detail is changing. It is quite imperative to grasp the meaning of manufacture and production in this larger sense, be- THE BASIS OF PLANNING 3 fore turning to the absorbing study of the intricate mechanism of production-control, which is collectively called planning. It seems of almost equal importance to approach a study of the technique and methods of control with a broad understanding of the tendencies which, even if in a vast way, nevertheless surely shape the con- ditions with which the modern manager must match his efforts. The Plant Unit. — The outstanding feature of manu- facture today is in the increase in size of the plant unit. From 1850 to 1900 the number of industrial plants increased about five times, while the amount of invested capital increased in the same period about twenty times. This means larger plants — from four to five . times larger, on an average — with increased problems of corresponding proportion. Since 1900 the same tendency has been evidenced; for from that year to 1915, the number of plants increased about 25 per cent, and the capital invested more than doubled. This analysis brings to a focus the great change which has taken place in manufacture, and shows that production has long since passed beyond the safe control of any one individual — when by control is meant an intimate knowledge of all operations, the status of all work in process, and the direction of its completion. The classic definition of an institution as **the lengthened shadow of a man" is obsolete as regards manufacture, which, except in rare instances, is now undertaken on a scale which precludes indi- vidual domination. ; \ 4 PLANNING AND TIME STUDY This tremendous increase in size of unit, while rapid, has been, like most developments, very un- equal in rate and very uneven in its distribution. But the trend has been unescapable, and today the size of the unit is a factor that we must reckon with. It has consequently become sound practice to institute the semi-clerical and semi-mechanical device known as production-control. Planning Defined.— A little later I shall define pro- duction-control and explain its commercial basis, the theory upon which it is founded, and the method by which it is operated. In this connection I shall give concrete illustrations. But first it might be well to revert to the larger concept of manufacture, which regards control as a means of wealth-production, and to sum up the concept in its very elements. . In brief, the point of industrial effort is to seek demand and to supply demand with the best service at the least expense. This process falls into the fa- miliar category: Sales, or Distribution. Supply, or Production. The classification set forth here will possibly throw light upon the definition of planning now given: Pro- duction control, or planning, is a method which ap- plies known units of measurement to the physical de- mand on equipment — termed sales — and determines thereby the quickest completion of the process, with the twofold purpose of meeting delivery requirements (or service) and reducing delays (or expense). This technical definition of planning, or produc- THE BASIS OF PLANNING 5 tion control, may be better understood if expressed in more detailed terms of the productive processes. The following excerpts, the first from C. E. Knoeppel's "Installing Efficiency Methods,'' and the second from The Iron Age, explain very clearly and com- pletely the practical purposes and methods of plan- ning, and are presented in expansion of the definition previously given. Here is Mr. KnoeppePs definition: Our theorem is therefor true and means planning, the pur- pose of which is to provide a means whereby all details, in connection with production, can be intelligently planned in advance, and efficiently dispatched, each machine or gang enabled to work with reference to all other machines and gangs — the shop management enabled, through advance knowl- edge, to provide the necessary elements and materials — ^ma- chines, tools, drawings, etc. The following is from The Iron Age: To be able to purchase material so that it is ready at the logical time for machining or assembling or both, and still maintain the most economical investment of capital, to be able to issue such as is machined to the shop at the proper time and in the most economical lot sizes, to finish the parts in the shortest time, consistent with good workmanship, and finally to deliver all parts to the assembly floor and insure the com- pletion of the finished cores, etc. Planning and Service.— T shall consider production control, in so far as I seek to justify it as a com- mercial expedient, from the two large aspects of ** service" and ** economy." I have intentionally made the beginning of this treatise argumentative, and I have, at the same time, X. !' 6 PLANNING AND TIME STUDY sought to bring into clear relief the present status of manufacture. I shall proceed to show wherein pro- duction control is desirable, and I shall try to prove Its desirability by furnishing sound financial evidence of its commercial validity. The business world today breathes ** Service" as Its watchword. The importance to a manufacturer of making deliveries on specified dates, or on demand, and generally in compliance with customers' requests, cannot be overestimated. There is no doubt that gen- erally in trade today sales will depend entirely on service. The reason for this is not far to seek; let us consider the explanation. The processes of manufacture today, except in rare instances, are neither secret nor mysterious. The machinery of industry is generally known— at least, the facts can be easily ascertained by any who will take the trouble to inquire. The few concerns that operate on patent rights may almost be disregarded as exceptions in comparison with the majority that do not. Success comes to those corporations whose organizations are alert to serve and are aware of the most effective methods of direction and control of the processes of production. The commercial benefit from service is, of course, volume ; and since volume is the desideratum of busi- ness, it is difficult to exaggerate the merit of anything which will help produce it. Service is an important means to that end. Indeed, the rapid increase of foreign trade of the German Empire before the war, which in rate greatly exceeded that of either of her greatest rivals— England and the United States— was THE BASIS OF PLANNING 7 traceable in the last analysis to the painstaking char- acter and the high quality of the service rendered. Production control is devoted largely to the end of service and, in many instances in which it has been installed, has been justified almost exclusively by that consideration alone. It is hard to reduce the gain from production-control as it effects service, to net worth in dollars and cents — that is, if a formula is de- sired which applies sweepingly to all manufacture. The actual economy that results from service, since it must come through increased volume, is obtained through the wider distribution of over- head expense, which increased production means, and the consequent lessened expense incident to the unit of production. This is an amount difficult to estimate, and one which varies with the business and with the various influences that affect the business. The argu- ment for planning on the basis of service must in the end rest on the axiomatic fact that generally in- creased production means more profit. Planning* and Finance. — It is logical to consider next the direct relation of planning to finance. Capital is the prerequisite for manufacture, and the return on its investment is a direct measure of the success of any enterprise. The amount of this return depends upon two factors, the sales, and the rate of profit on sales. There is a wide range in various industries in the rate of gross profit on sales — from 3.5 per cent in the case of the meat packing industry, to as high as 31 per cent in the steel industry. But such re- turns must be further qualified by the amount of capital required per dollar of sales, or stated con- : ii ^ ^ ^ ^ a ^ s ?^ i^ i O gv CM 00 <6 o CO cq .-J Q 1 ^. "-1 i^. y^^ -H C73 lo lo in irt CO C^ (M Oi t>- •'^ CD op' O" -^'" €^ ^UO Brio's u CM 8 00 CM 00 00 "-I CO t^ 00 ^5$^^ (£) to — < t^ 00 O CO CM f-i »=H 00 CO in CO (O to 00 «-H CM CO t^ CO S 8 IS 8 8 8 8 CO rH Tt CO o ^^ CO ^^ a^ ^ ^ ^ °°' °°^ " ^ •• •^ "^ r:J O^ Oi lib CO lo Lb •s s in CO t^ o CM .^ C>- CJi CM C^ CO LO LO 1-H €^ -3 CO .2 « 3^3 s CM Ol CM lO to 00 Oi 00 O O O CO t1» rH CO to in o ^ 2^1 w ea a U c^ «« S €^ to S CO 8 N CM 00 CO L?S I i4 - > > o a o i i^ J J « • 6 a to bO o o a d ^ O o O !3 o 8 THE BASIS OF PLANNING 9 versely, by how many times the entire capital is turned over in the year. The data on page 8, taken from the latest reports of representative companies, will illustrate this point. These figures show the range of the gross margin on sales to be from 3.5 to 31.6 per cent; the ratio of capital turnover from 0.53 to 4.80, and the percentage of rate of profit on capital and surplus from 6.6 to 20.2 per cent, and also of the turnover of inventory from 1.6 to 9.2. The gross margin on sales is the per cent of gross earnings to total sales. The capital turnover is the relation of the sales to capital and is obtained by di- viding the capital into the sales. This shows the number of times the capital is turned, or is multi- plied, to make the volume of, sales and indicates the activity of the invested dollar. The rate of profit on capital and surplus is almost self-explanatory and means simply the per cent of profit to total capital and surplus. The turnover of inventory is the relation of the value of inventory to the sales and shows the frequency with which the investment in materials is turned by the sales. The data is intended to support and explain the de- ductions now to be made with respect to the financial purpose of planning, and the strictly commercial basis upon which it can be justified. This point has been well expressed by J. Ogden Armour in an article in System, wherein he states: It is not necessary to tell a business man that it costs more to do business than in former years; his books will tell him that and all too plainly. It is equally apparent that, except ^ 10 PLANNING AND TIME STUDY THE BASIS OF PLANNING 11 I u a few lines and industries, the present very high prices do not mean correspondingly greater profits. As a country we are extremely prosperous in that the mass of business is great, but we have not yet adjusted ourselves to the rising costs of doing business. Few business men have squarely met and defeated the prob- lem of making fair returns upon their capital with only a small percentage of profit per sale. They do not know how to test out their organizations to determine the why and how of making money — capital — work at its utmost. The basis of profitable business is active money; sloth in money is the prelude to failure. Money is active if the capital invested is constantly turning. Provided overhead charges are kept at a reasonable figure, the annual profit in any busi- ness will depend upon the number of turnovers of stock se- cured during the year. It is the rolling capital that gathers the moss. The test of a business is the number of times the stock is turned at a profit each year. It is obvious that if you get enough turnovers during the year, even a very small profit per turnover will make a satisfactory total profit for the year. What Armour and Company have done to meet this situ- ation is what every business, great or small, will eventually have to do. We have increased our rate of turnover. We have developed the science of the quick rate of turn- over to such a point that our profit per dollar is preserved only by the most watchful care — to a point where fractions of a cent loom large. Planning Economizes Fixed Capital.— As has been said, capital and the frequency of its turnover are the considerations that generally affect the relative success of any business. But the capital must be further reduced to its components, which are of two very distinct kinds, namely, fluid and fixed. The fixed capital is represented by building and equip- ment, and the fluid, usually known as the working capital, is absorbed in the inventories and the vari- ous current assets and liabilities. The economies of planning operate with both kinds of capital, only in a different manner according to the natures of the two forms of wealth which they represent. Production control operates to conserve the engagement of working capital, and to expedite its return to the initial point of that cycle represented by the processing and the sale of goods or merchan- dise. It is directed primarily to minimize the amount of capital represented by goods in process, and to accelerate the period of turnover. I have defined in almost summary fashion the finan- cial bases of production control. The actual possi- bilities of this saving can best be appreciated through reference to the tabulation shown previously. Here it will be seen that the inventory varies from 60.7 to 10.9 per cent of the total sales, or the turnover of inventory from 1.6 to 9.2. Now it is the object of production control — and, except for service, it is its chief commercial justification — to reduce the amount of inventory and thus increase the number of turns. The inventory itself consists of three distinct parts. Raw Material Process Goods Finished Stock. Manufacture of course, is actuated by demand, and to meet this demand it is necessarv to have a re- 12 PLANNING AND TIME STUDY THE BASIS OF PLANNING 13 serve of finished stock, usually of sufficient size to al- low for replacing withdrawals until the demand is re- peated. This, in turn, necessitates keeping a certain amount of material in process of manufacture. Then in order to have this process stock, it is necessary to have raw material to draw on, and since raw ma- terial is not a day-by-day supply, deliveries of that material have to be anticipated. In other words, a store of material must be kept on hand to supply cur- rent needs until the process stock shall be re- plenished. So the investment in inventory has three phases which must be considered, and if production control IS to succeed, it must tend to economize on this in- vestment in one part, in two, or in all. The propor- tion of the three divisions in the inventory varies with the business; in some, no finished stock is car- ried at all and consequently only the two divisions would offer opportunities for economy. But pro- duction control must attack all, and carry them in such balance and proportion as to effect a saving. Planning can do this successfully and can effect re- ductions in the engagement of working capital which represent considerable savings in interest. Again, it is difficult to state dogmatically the pos- sibilities of savings in this respect, but reductions as high as 40 per cent of the total inventory have been made. Of course, what such a saving would mean in money would depend on the volume of the business; but within the range of 40 per cent there is wide possibility, and it can be definitely asserted that with- in that range a successful planning system will pay its cost of installation and operation and still leave an annually recurring saving. As a case in point let us consider the figures of a certain manufacturing business which had been doub- ling yearly for almost a decade. The process in- ventory amounted to about $600,000. The rate of production was about $220,000 a month in terms of cost value of finished product. This status indicated an average turnover of $600,000 divided by $220,000, — 2.7 months, or 81 days. Careful study of the processes and time elements revealed that a very workable turnover would be about 30 days. The reason for the failure to oper- ate on this basis was contained in the usual rule-of- thumb control, which was in vogue. By analyzed production and the synchronized effort of planning, the same volume of production, $220,000, was carried on a process inventory of $450,000. This represented a turnover of $450,000 divided by $220,000—2.1 months, or 63 days — a reduction in the previously prevailing period of 18 days. The full significance of this illustration is that the concern saved the interest on $150,000 at 5 per cent (a fair loan rate), which means $7500 and freedom from the necessity of borrowing $150,000. Planmngr Increases Fixed-Capital Earnings. — ^The instance just given illustrates how planning econe- mizes the working capital, and I shall now show how it increases the earnings of fixed capital. In controlling production proper, and by that is meant process goods, it has been shown that plan- ning would reduce the amount of goods in process. 14 PLANNING AND TIME STUDY THE BASIS OF PLANNING 15 1 This is done in part by timing more closely accord- ing to requirements the entrance of goods into pro- cess, but particularly by directing production so that the process will be done without delay, or at least with the minimum delay. This result is accom- plished by careful scheduling of operations with the object of using the equipment to its fullest produc- tive capacity, which means the elimination of the loss of time due to various kinds of delays, an item grossly neglected by many manufacturers. Plants are frequently operated without machine- activity reports. Yet I have known cases in which, with months of accumulated orders ahead, ten to twenty per cent of the available machine time was regularly lost owing to faulty control of production — and the management was absolutely unaware of the condition. In planning, the day's operation is predetermined; and thus the problem of idle time is anticipated; or, if for any reason this is not possible, the difficulties are solved as they arise. It must not be inferred from this that a successful control will plan with the pre- cision of train-dispatching, to which planning is fre- quently likened, for in the average manufacture the units comparable to the trains are far too numerous, they are subjected to too great variation, and the value is too small, to permit of a control commen- surate with that in railroad operation. But planning does exercise intelligent foresight and, within reason, anticipates difficulties and prepares for them. Planning and Overhead.— It can be definitely as- serted that planning will reduce the idle time of equipment, and thereby contribute vastly to savings. Overhead is the bane of the manager. It has been well termed *^ burden," and represents an expense which is quite largely fixed by nature and which is best managed by increasing production. This ex- pense is generally expressed in terms of percentage of productive labor, and runs from as low as eighty per cent to as high as five hundred per cent of the labor. This manner of stating it is not quite as graphic as that of expressing overhead as a proportion of total cost, but here again there is difficulty, since manufacture varies widely in its cost elements accord- ing to the nature of the particular industry. Generally, however, the range in the prime cost of manufacture can be stated as follows (this with re- quest for full allowances for its approximation) : 20 to 65 per cent Material 40 to 15 per cent Labor 40 to 20 per cent Overhead These figures, as already intimated, are merely ap- proximate, and possibly it would be better to say that overhead expense is apt to range from as low as twenty per cent to as high as forty per cent of the total manufacturing cost. Clearly, it is a big item. Moreover, overhead is such a type of expense that even a small saving can by repetition accumulate to large amounts. Advantages of Planning Summarized.— Planning by reducing idle time, by increasing the activity and hence the productivity of equipment, decreases the I I \ • 16 PLANNING AND TIME STUDY unit levy of expense— assuming, of course, that there is sufficient increase in volume to correspond with the gains in capacity. It is hard to state just what sav- ings can be effected by planning, for conditions vary in manufacture; but that substantial economies are secured daily by means of the planning systems in current operation is sufficient argument in favor of such systems. In conclusion, it appears that planning is conducive to better and more economical manufacturing because it accomplishes the following three ends: Service (increased volume). Conservation of working capital (interest). Increased production. That is, planning is a system for the promotion of regular deliveries. It has commercial value in that it secures the good-will of customers, and hence should tend to increase the volume of sales. But planning, as has been seen, does even more than this for manufacture — in fact, it almost seems to be the basis of profitable production in so far as it acts to conserve working capital. All these considerations point to the basic purpose of planning, and indicate that the successful opera- tion of a system of planning is a highly important financial, as well as manufacturing, function, and absolutely indispensable if the highest profit is ulti- mately to be gained. This concludes the brief which has very deliberately been made the introductory chapter to the present treatise on planning. Business success is a matter of profit, and planning THE BASIS OF PLANNING 17 must not be permitted to appear in the glamour of a new idea and so to obscure the underlying necessity of rate of return; for the value of planning, as that of any other device, system, or service in connection with commercial enterprise, is in suspense until it is definitely expressed in terms of profit. Now that this argument for the business value of production control, or the profitable basis of planning, has been advanced, the remaining chapters will be devoted to a consideration of the elements of plan- ning and will conclude with a complete detailed description of successful installations now in opera- tion. \ THE ELEMENTS OF PLANNING 19 CHAPTER II THE ELEMENTS OF PLANNING Classifying the Lines af Action.— With the business basis of planning understood, and the commercial validity of its purpose accepted, the next point for consideration is the method by which it operates, and an analysis of the working parts or elements which govern its design. It has been stated in the preceding chapter that planning was an equation of demand versus produc- tion, of sales against equipment. Of course, it is far more detailed than such a simple explanation can express, for it involves a multitude of factors of variable character and activity, all of which have to be regarded in proper proportion and with due relation one to the other. It is desirable, therefore, to classify these factors wherever possible and to simplify the consideration by determining the prime elements whereby the mechanism as a whole operates. There is a close analogy to the study of cost ac- counting in the treatment proposed; for in most books on that subject, costs are reduced to three leading phases: Labor Material Expense 18 The detail in connection with each of these divi- sions is tremendous and constitutes the technical problem of the subject, but the bare analysis of the three parts supplies a fundamental conception of the entire subject and clarifies the mass of detail. So it is with this purpose that planning has been reduced to its essential parts or lines of action: Demand Material Equipment Time Standards Control Mechanism Organization Each of the divisions will be considered, first, in its general connection with all of the others, which will be the purpose of this chapter, and then separately, in the detailed method by which each proceeds, which will constitute the succeeding chapters. The classification just outlined is quite summary in form and will require explanation. To assist in that regard, the basic consideration of planning as viewed by two prominent authorities is presented, and the connection between their analyses and that of this treatise will be developed. C. E. Knoeppel* states the following as planning requirements: 1. A knowledge of what to make, the quantities and the time in which to make them. 2. Complete up-to-the-minute knowledge of receipts and disbursements of materials. ♦ «« InstalUng Efficiency Methods" : The Engineering Magazine Co. v^ • s ,1 20 PLANNING AND TIME STUDY 3. Prompt checking of requirements against stock records. 4. Maintenance of stock margins that will insure material being on hand when wanted. 5. Analysis of the parts entering into the manufacture of the product, their operations and the estimated time per operation. 6. Routing of orders analyzed to machines and gangs. 7. Study of planning to avoid congestion. 8. Rearrangement of schedule to meet unforseen con- tingencies. 9. Replacing spoiled or defective material. 10. Charting progress of orders. 11. Study of conditions interfering with prompt execution of plans. 12. Delivery of material to machine and gangs. These have been rearranged to show their con- cordance with the outline of this discussion. DEMAND MATERIAL EQUIPMENT 1. A knowledge of what to make, and the quantities and the time in which to make them. 2. Complete up-to-the-minute knowledge of receipts and disbursements of materials. 3. Prompt checking of requirements against stock records. 4. Maintenance of stock margins that will in- sure material being on hand when wanted. 12. Delivery of material to machines and gangs. 11. Study of conditions interfering with prompt execution of plans. 6. Routing of orders analyzed to machines and gangs. THE ELEMENTS OF PLANNING 21 TIME STANDARDS CONTROL MECHANISM 5. Analysis of parts entering into the manu- facture of the product, their operations and the estimated time per operation. '10. Charting progress of orders. 8. Rearrangement of schedule to meet unfor- seen contingencies. 9. Replacing spoiled or defective material. 7. Study of planning to prevent congestion. George D. Babcock, writing in the Iron Age, stated succinctly that the elements of production control are as follows: Characteristics of parts to be made, which include form, material, labor, place and time. Quantities to be produced and the date of each event in the producing. This brief but complete statement of the essential parts of planning may be interpreted by the classifi- cation proposed in the discussion as follows: DEMAND : Characteristics of parts to be made as to form, and as to quantities to be produced. MATERIAL: Characteristics of the parts to be made as to ma- terial. EQUIPMENT : Characteristics of parts to be made as to method. TIME STANDARDS: Characteristics of parts to be made as to time. CONTROL mechanism: Characteristics of parts to be made as to place and as to the date of each event in the producing. Definition of Terms.— The extent of the discussion proposed for this volume is indicated by the further analysis of the elements of planning presented in the following outline: 22 DEMAND MATERIAL TIME STANDARDS EQUIPMENT ^ PLANNING AND TIME STUDY 'Fluctuation Variety Delivery Requirement Amount or Quantity Definition of article or product or specification therefor. 'Analysis of demand and reduction to material requirements Material control on specification or minimum basis Material follow up Stock records Requisitions and move orders. Inventory of equipment. Inventory of accessories such as jigs, fixtures, dies, patterns, flasks, etc. Balance of equipment Arrangement of equipment The determination of most efficient methods of operation as regards proper combination of cuts, feed and speed, etc. Operation lists on cards of articles or parts produced Instruction sheets for producing articles or parts Maintenance of productive capacity by break- down service. Determination of standard time required for every operation on the articles or parts pro- duced, as shown on operation tests Basis of this time standard in time study, cost figures or piece rates [Timft study method. THE ELEMENTS OF PLANNING 23 CONTROL MECHANISM ORGANIZATION Control Mechanism is method or device for visualizing production problem Mechanical method of control Graphical method of control. Form of production department organization Functions in order, routing, scheduling and dispatching. The elements of planning thus outlined may also be expressed mathematically, by virtue of the fact that planning is in reality a method of reducing a variety of items representing ** demand," to a com- mon denominator of **time" applied against ** equip- ment," which may be represented as an equation as follows : Z>== E M where D E T M Demand Equipment or Capacity Unit Time for process, or Time Standard Raw Material Requirements. This simple equation concentrates the entire effort of planning to the few elements designated by the symbols shown, each of which must be determined quantitively as the preliminary to the design and operation of any system for production control. The balance of this chapter will be devoted to a summarv discussion of each of these elements and its subdivisions as shown in the outline, whereby it is hoped to establish a clear perspective of the treatment which will appear in the following chapters. 24 PLANNING AND TIME STUDY THE ELEMENTS OF PLANNING 25 Demand. — Demand is the pivotal point of manu- facture. Indeed the characteristics of demand govern the ease or complexity of the entire productive pro- cess and, hence, the relative simplicity or difficulty of the problem of planning. For this reason, the first attack on any production problem which is to be reduced to control must be preceded by an exhaustive study of demand. Viewed purely as a financial enterprise, manufac- ture labors with greater fluctuation in demand than that of railroad corporations, which are next in point of total capitalization. By fluctuation in demand is meant not only the differences in volume of one year over another, but also the seasonal fluctuations which occur over the whole line within the year itself, and the local fluctuations of the individual items or parts of the line. It is necessary to analyze the trend of demand, determine its character, and classify the manufacture according to the nature of the demand. The method of this analysis and the classification of manufacture based on the demand will be discussed completely in the following chapter. Variety of demand or the extent of the line required by the trade is another point which must be con- sidered carefully in the approach to planning. Sales of two different manufactures, while equal in amount,' might represent a repeating turnover of one item or the aggregate of varying sales on hundreds of items of a line. The number of items in the line, their inter-relation, and the degree of their identity, either in component parts or manufacturing processes. should be studied, for therein is found frequently a fruitful source of economy. It is possible to standardize in a line of many articles and select parts which will be uniform and yet supply many different articles with large result- ing economies and considerable relief to the problem of planning. The delivery requirement of the trade is the guid- ing motive to the actual operation of the production department. Response to the requirements of de- livery is the direct expression of the service rendered, and it is necessary to heed carefully inquiries or requests from customers or any other communication regarding the necessity of their circumstances. Promises of attention must be filed and arranged to tickle automatically when the obligation is to be met, and the whole scheme of planning is frequently measured by its capacity to meet this one require- ment. The amount of quantity to be manufactured is an important feature in its effect upon production con- trol, for it in turn governs the size of order unit upon which manufacture is maintained. Hardly any- thing is of greater importance than the determination of a desirable order unit, and the nature of demand, as regards the amount, furnishes the best basis for so doing. The definition of or specification for the product or articles to be made is also a matter of importance, and must be thoroughly developed and accurately presented so that it will define the processes, the material, and the methods by which production shall 26 PLANNING AND TIME STUDY THE ELEMENTS OF PLANNING 27 be undertaken. The article must be examined and reduced to its elements. The size and limits of size, material in kind and in size, the finish, form, etc., must be established and brought into some regular and workable form, usually termed the specification sheet and frequently known as the bill of material. Material. — With the amount and specification of the demand known, the next step in the installation of a planning system is the reduction of this informa- tion to terms of raw material. That is, the demand must be analyzed, and the quantities to be made and the kinds of material used must be expressed in terms of the material from which the manufacture proceeds. This information is very necessary from the point of providing material at the right time and in the right quantity for manufacture. It furnishes a basis for intelligent and effective purchasing and determines largely the policy of pur- chasing. By the latter is meant whether purchasing shall be done on a straight specification basis or be controlled by a method of minimums. The distinc- tion is quite fundamental. On the specification basis, the demand is expressed in terms of the aggregate quantities required, and the purchase is made accord- ingly, with deliveries stipulated at desired intervals in advance. The minimum starts with the same information, but operates differently in that it does not anticipate the future for so long a period. On the minimum basis a reserve and an order quantity are set, and whenever the supply is brought below minimum or reserve an order is placed in the standard quantity. The reserve is set at a point which it is estimated will supply the demand until delivery can be made of the replacing order. The follow-up of material is of almost as great importance .as the follow-up of production itself, and is often more difficult, for the control of deliveries is in the hands of the dealer, whose interests are not entirely in common with the production department, and who differs from the shop in not being in the absolute authority of the production department. Stock records are veritably cash books, although they are not often so regarded. Yet material is money and is possible of exchange and tender, and it should be handled and accounted for with the scrupulous exactitude that occurs in the transactions of monev. The stock records are needed as a control and a watch upon the investment in the material they record. They are also imperative to the production department, for just as the control mechanism reflects the condition of production, so do the stock records show the status of the material situation, and thus establish the limits within which production may be carried on. Equipment. — ^Equipment is the physical instrument of manufacture, and its character and extent define the outer limits of capacity. As a preliminary to the installation of a produc- tion system, it is necessary to secure a complete in- ventory which should show every item of productive equipment with full details as to size and capacity. It is further necessary to obtain a complete list of any accessories required for the operation of the V A 28 PLANNING AND TIME STUDY THE ELEMENTS OF PLANNING 29 equipment, such as jigs, fixtures, dies, flasks, or pat- terns. These accessories must be located, recorded and indexed for reference and use. The equipment should be arranged in either of two fundamental plans, known respectively as the *'unit" and *' production center'' arrangements. Both plans are valuable, but for any particular manufacture one may be better adapted than the other and hence more economical. The selection should be made carefully, as the ultimate decision will influence both the volume and ease of production. The next effort should be to establish the most effective operating methods for the equipment. In the case of machine tools, this involves the determina- tion of the proper cut — the feed and speed — and a general study of all these variable factors of opera- tion which can be fixed to some most effective com- bination and so recorded. The next point for attention is the preparation of detailed operation lists, which should show the com- plete course of manufacture in sequence by detailed processes or operations. These lists will also indicate whatever accessories are required for the operation, such as jigs, fixtures, etc., and will also show the proper combination of cut, feed, and speed or other controlling information regarding each operation. Instruction sheets should then be made from the in- formation contained on the operation lists, and should show, as well, a sketch or drawing of the product or part. These instruction sheets are given to the foreman or the individual operative and are used by him as a guide for the work to be done. For the purpose of the planning department, it is necessary to have these lists show some further information, namely, the **unit time" required for each operation. Time Standards. — This unit time is known as the time standard and indicates what the standard per- formance for each operation is. The standards are used to schedule in advance the work to be done against the equipment, and as a measure of the rela- tive efficiency with which the work so set or laid out is accomplished. Since the time standard is the measure of efficiency — and, as such, the limit of the productive capacity of the plant — it must be set most carefully. This is best accomplished by means of time studies. It is possible, however, to determine the time standards by using the piece rates or the unit labor cost. This information is reduced for the purpose of standards to its time equivalent on the basis of the average hourly wage rates, the method for which will be de- scribed in Chapter VII. Since the time study is a valuable aid in the plan- ning department, it has been thought fitting and appropriate to include a chapter on the method and purpose of time study. That chapter is intended to instruct as to the technique of time study, the analysis of operations, and so on, so as to acquaint the student with the method of determining the time standard for any operation, whether it is to be used to plan production or as the basis of rate setting. Control Mechanism. — Control mechanism is the name given to that part of the planning system which 30 PLANNING AND TIME STUDY is designed to visualize the physical problem which the production requirements represent. By that is meant that the control mechanism is a substitute for the memory or mental grasp which men or managers are compelled to possess of the production condition and status, unless provided with some competent mechanism. The form of control mechanism varies in practice from mechanical boards to graphic sheets or charts. Each method has value for certain conditions, and many ingenious adaptations and variations of each have been devolved. It is important to know the forms of these various methods of production control, for although individually they do not permit of universal application, yet the selection of the particular mech- anism governs directly the ease or difficulty with which the control is accomplished. Illustrations will be given in Chapter VI of the forms now in use, to- gether with such information and description as will enable discrimination and successful selection. Organization. — The matter of organization is as important in the production department as it is in any other department or in the whole of a commercial enterprise. The selection of the right man as produc- tion manager, the proper division and delegation of duties, the co-operation of all efforts to a point of uniform result, all pertain to the matter of organiza- tion and as such bear directly on the success of the production department, for a perfect system is no more successful than the operating head or heads make it. Production control divides into fairly distinct lines THE ELEMENTS OF PLANNING 31 of effort which have become known in the industrial world of today as Routing Scheduling Dispatching Routing is the inclusive term which refers to that division of the production department that has to do with the analysis of orders, the requisition of ma- terial, the provision of operation cards and instruc- tion sheets, and, in general, the arrangement of all details both informative and material that are re- quired for the actual accomplishment of the work. Scheduling defines that part of the production department activity that has to do with the assign- ment of the work to the machines in the sequence or distribution required. It also should present the status of the production or process goods by means of some suitable form of control mechanism which will reflect the condition and at the same time indi- cate dates of completion as the basis of promises and deliveries. Dispatching refers to that part of the work of the production department which authorizes or initiates the start of actual operation and the start of the successive completing processes. The foregoing three functions interlace to a certain extent, and it is necessary for the smooth running of the machinery of the production department to have accurate definition of duties and programs of routine for each. This will be considered in detail in Chapter VIII. I 32 PLANNING AND TIME STUDY The detail of planning to be presented in the fol- lowing chapters, will, it is hoped, describe completely the method of production control and its application; but it is timely, possibly, to state that to study the production requirements of a given manufacture and to select the design best adapted to these require- ments is a matter of extreme delicacy and difficulty. Success in such an undertaking is not only a matter of the knowledge of methods and procedure which it is the purpose of this volume to expound, but also of the nicety of decision in the fine points and well- balanced judgment applied to the large considerations by the engineer in charge. CHAPTER III DEMAND AS AN ELEMENT OF PLANNING riuctuation. — ^Production is governed by demand, and effective control of production is made possible only by an intimate and exact knowledge of demand. Therefore, before devising any system which shall have as its object the direction of the operating pro- cesses of manufacture, it is necessary to secure ade- quate information concerning demand. With rare ex- ceptions, most manufacture is done on an estimate of this demand, and this estimate represents an expec- tation of future events as indicated by past records. The estimate represents an attempt to meet the is- sue which confronts every manager at the outset of his manufacturing year, and this issue, in turn, is represented by the question, *'What will my plant be called upon to produce this year?" Occasionally, as in the case of the manufacture of knit underwear, the sale — or demand — ^may be known before production starts; but in general manufacture that is an extraor- dinary circumstance. Hence, it is usually the case that sales must be estimated; and the success with which this can be done varies widely with the charac- ter of the business. For a given business this estimate largely predetermines the general economy of oper- ation. 8S r I 34 PLANNING AND TIME STUDY The Types of Manufacture.— Sales, or demand, will be found to present various characteristics. Some- times the volume will be of almost uniform monthly distribution; at other times, as much as 50 per cent of its total will be concentrated in one month of the year. Because of this diversity in the range and char- acter of sales, it becomes convenient to classify them, if rather broadly, into the general divisions of manu- facture which the demand they represent determines. This classiiication of manufacture according to the nature of demand is proposed as a means of assist- ing the solution of the general problem of planning. Accordingly, manufacture has been divided as fol- lows: Seasonal Manufacture Constant Manufacture Stock Manufacture Contract Manufacture A ** seasonal manufacture" is one in which the de- mand fluctuates widely or concentrates unequally through the year. It is difficult to state the limits of the fluctuation that would consitute a particular manufacture as seasonal, without being arbitrary and subjecting oneself to conflict of opinion. I therefore attempt here only to establish the fact of such a con- dition as determining a type of manufacture which exists A *^ constant manufacture" is one in which the de- mand remains uniform or is equally distributed through the periods of the year. A ** stock manufacture" is one in which the prod- DEMAND 35 net may be made up and held in stock to meet an es- tablished demand. A ** contract manufacture" is one which produces to specification or special order. Admittedly the foregoing definitions describe some- what loosely the classification of manufacture, but it is impossible to state the exact limits that de- termine this classification. It is perhaps best, therefore, to regard the terms used as suggesting tendencies, rather than set barriers between which all manufacture may be placed. A manufacture may consist of any one of the classes mentioned, or of a combination of several; nevertheless, even in view of such possible variation, I believe that the classifica- tion will assist. Combination Types. — As representative oi the pos- sible combinations, the following instances are given: A ** seasonal-stock" manufacture is found in the binder-twine industry, in which sales call for the making of a year's deliveries in less than two months. It is the custom in this business — and the nature of the demand permits it — to resolve these sales to a definite and uniform program of manufacture, which builds up in advance a stock at best economy from the viewpoint of manufacture, and yet meets the sharply seasonal demand. A ** seasonal-contract" manufacture is represented by the fashionable establishments that do ladies' tailoring, in which the year's business is sold in a matter of weeks, at two periods of the year, and in which each garment or production unit is subject to individual selection of material and requires special 'I I 36 PLANNING AND TIME STUDY fitting and finishing. In such a business, manufac- ture is compelled to follow sales very closely, ^nd it is almost impossible not to have production parallel the fluctuations that constitute demand. Consequently, the volume of production in a busi- ness of this kind varies from almost nothing to one- half of the yearly total in one month. The complica- tion of detail and the disorganizing effect of such conditions very sharply limit the design of a produc- tion system, and of course require a machine entirely different to one adapted to a seasonal-stock business. A ** constant-stock'' manufacture is the simplest from every point of view, and theoretically should be the most profitable. Unfortunately, however, the characteristics of demand that define such a business are found mostly in staple articles on which the mar- gin is small, and hence, despite the ideal manufac- turing conditions that it represents, the profits are frequently not as great as in businesses of more erratic tendencies. Milling and sugar-refining are fairly illustrative of this type. A ** constant-contract" business is one found largely in various installation products, such as sprinkler systems, and sash and door manufacture. Another example of this type is freight-car manufacture, in which the units of product, although similar in manu- facturing requirements, vary enormously according to the individual specifications of the customers. These four examples of manufacture — that is, sea- sonal-stock, seasonal-contract, constant-stock, and con- stant-contract — are clean-cut divisions of industry, but owing to a variety of causes inherent and ac- DEMAND 37 quired, a business may represent combinations, even of these. In other words, a business may be partly seasonal- stock and partly seasonal-contract, or partly constant, or partly seasonal. Moreover, the possibilities of such combinations are not only mathematically many, but are actually found to the same extent in operation. It is important, therefore, to locate a particular manu- facture within this classification, for this prime defini- tion of manufacture largely determines the basis of planning. Analyzing Past Sales — Graphs. — The study of manufacture that is to be brought under systematic production control has then as its object, first to de- termine the characteristics of demand. The pre- liminary to any such procedure is obviously a careful and complete analysis of the sales of past periods. Every item in the line should be enumerated in totals by quarters at least, and if necessary, by months for not less than three years. The manner in which such a tabulation may be pre- pared is shown in Figure 1, where several items in the line of a certain manufacture are presented in full detail. The arrangement shows the sales by months and quarters, and makes possible a comparative study not only of the tendencies of demand within the separate year, but also of any perceptible trend of one year as compared with another. Since it sometimes happens that such tabulations are difficult to grasp, it has been found that graphic representation gives a more vivid comprehension of the facts. To illustrate the graphic portrayal of th-e i < c I— I m K I— 1 a: C < < LO c z < 2S CO Oi 00 00 CvJCVJt-HCM O^OLOOi > o Z CD t:^ CD 00 OOOiOCLO 1^ iL h6- "2 »^., h5- LOOQIOCO CVJCVJWfM a ClOOitO t-.oot>.oo C^JCMC^aC^3 ^ .-IWIO (NC^CM N Oil— ICO C^Ji-iC^lCM Loc^-oioo c^o-cooo >-H t— t Q t^ (MCVJ?5^ 05 CD Tt CO LocDCDirs OOiLOOO lOOQO 3 GiOGJCi CO—: O^C^r-tCD 00 t^ 00 CD ^ f-H O •"• ^ TfTt TtCO 1> c 3 C^JCO'^— I COCOTfCVJ a. < CD '^ CO CO 00t>OO TfCO"^CO (4 2 C>-lOCDCV3 US ">:*• C0"^0 c CO i-iO^OOO t^COC^i— I —iCSICQCVJ 1— t Cvj '— ' »-H COC^JCOC^ CvjCNICg'— I IOIOtJ z Q z c < Q CO d z u n < lO"— I lO r-l 00 CD Tf CO OCDLOLO s t^CDC^ lOOiCvJOl lO'^TtcO LO00QCJ5 31— I CD U^ CO'^OOCVJ CVJC^IC^O c^jco^io O^OOLOlO —lOiOiCD CDlD"^-^ C^ICVJCD t> 00 C^ CD CD LO -^ COC^l f-H I— I •— t i-H OlOiOiCi CVJOCOLO C0COCVJCN3 00 CO C^ 05 CVJC^JCM."-! C^Oi'-'CO CVJr-lCVlC^J lOTtCOCM COOi'^C^J CDLOLOLO CDCDL?5lO COLOOiC^l lOCOOO rf ":}"«* CO OOiLO^D •— ' O Oi CM C^J C^l — I — I Oi i> CO I o CD CD CD ^ CM o m 05 C^C^CDCO CD CM t^ CM f^OCDrf CDCDrt.CDljO CQ < Z o < z CQ o D Z o < d z CQ < CD CD 00 C^ •— I •— 1050 OOCDOCD t:J* "tt Tt CO CDOOCD CO '^ CO CO OJOOQ'<:f CO CO CM CO t^ooocp oooodi -^Tt'CO^] O-^C^CD I— Ir-HOOO CMrrOiCM CO CO CM CO LOTt COCM r-t t— t r— t f-H 00 00 05 CD 00 Oi 00 00 COOOCOC^l O—iOCD t^Tf COO 05 05C^'— I CV1CMCMCM CMlOLOCp CO CO Cvl oi CD t^ CM 00 Tt -^ Tt CM CM CO "-I CM TtlOCMCD Tt Tt rf CO 10 05 00"^ CD LO -^ •— • s 00 "^oo lOlOCO LOCO 00 CD LniD"^co OOOCDO lO'^COCM 1— I f-H 1— < r— < CO 05"^ CD CM «— ICM •—• O5 00Ot^ 00 CD 00 lO CD 1/5 CD "^ CMIOOCM CDCDt^lTi 00 CD CD CM ooc^t^io I CDIOCD'^ ■^ •^ COCO 00C^O5LO rj'LO'O'rf CDlTiCDlO X CDOOCD CDCMLOLjO CM CO CO CM TfCMLOt^ CMO«-tO OOOJOO LO^COCM — H .-H I— < t-H 38 DEMAND 39 i ' :^^ "^3 ^ ■^^ ■ ) a ? '^ *• P - = ^3^ ^ Xif' ^^ ■' "■"^ ::k-l- '^s? Si3 % § ^^ Bi^^ ^.^-- & ^- ~ F — — . No. S 'Diamond Slidinq Top Saw Table 1 , ^^^4 ^■^rTN ., ^ , ^'\.Y ■Nj ^^r'^ ^^=^ , ■•> ^ . ,/>■' _., -< x^ '^7; »«s »■», - -■ k -^ — - .^^ 1^ -- ,^ '^s Si ' s s I ^ s K r: ^ >» ~ ' ■ ~ ",■> ^-w ^ 4,^ M y 5C ^ ■~j r~-. '"^ N 1 ^ yT 5^ ^^ ^> V. ^z^^ ' 1 pv No. '3 D/am'ond Universal Saw Table ^ ^■k 1 >' r\\ -<; ■' ^^ \ ^ V ^ -^^ . ■y *s SiH V ^- ^/\ •- ^ ^^ ^ "*< ^ ^ "7 / y "^ V £ ^ .j^ — :> r^ y ** • <- -- ^■^ - ^r ^ — • H "* No. 2 D/amond Comb'inafion '5a>v Table J •'X / \ . ' / , -v \ ^'^ > t* ^ ' \ ^ 'y\^ \\ -^ ^ 1 : SLT J -i*-^ -" ■^ t^ N^i 1 1 . ;^ T' ■^ ^s "^^ > ^^' t"'' . ?' ■^ -. ^^^ -2 ^ 1 — ^^ t' '^ /f ^4 ,^^ Vn / D/^mnnrJ Cnr»*/ Tr»hf^ 1 1 1 I 1 1 1 — 1 1 1 I I 1 I I 2: oQ a cr > ^ >i < u < a < § 3 ^ U. 2 < 2 -> -> Not Table D = / Table o t H > <-> 3 £j O O UJ < !^ O Z Q FirsI- Year No. 4 NoS 7i7i>/e D - -J Table G - 3 Tables Tables Tobies m Fourfh Year Year . FIG. 2. GRAPHIC REPRESENTATION OF SALES ANALYSIS 40 PLANNING AND TIME STUDY DEMAND 41 f same information, Figure 2 has been prepared. The graphic method is often particularly helpful, in that it visualizes the business condition and presents an easier image to the mind than the rows of figures. It is not important which form is adopted (figures or graphs) — frequently both are used for the same business — but it is important that such a detailed analysis be undertaken as the foundation of plan- ning. Statistics of this kind often involve a tremendous amount of clerical labor, especially if the line is big, all of which effort may be greatly reduced by use of the tabulating machine. I recently found it necessary to analyze the demand of a large company making a line of about 1500 items, for the previous five years. The task of tabulating loomed ahead enormously, but with a Hollerith machine the whole job was cur- tailed at least two months, and was completed with much greater accuracy than would have been possible if hand-listing had been used. The result of such a tabulation must be closely studied, in order that the nature of demand may be accurately determined. The Problem of Seasonal Fluctuation. — When the sales are uniform it is not difficult to define a pro- gram of manufacture; for, in such a case, the mini- mum reserve can be set as a definite proportion of the sales. This minimum, expressed usually in terms of so many days' supply — as 30, 45 or 60 — serves as point for replacement orders as shipments are made, and sets the limits that govern the frequency of turn- over. Usually production can be reduced by this method to a constant and smoothly running process. If the business takes on a seasonal color, however, it becomes difficult to operate on a minimum basis in almost directly increasing proportion to the extent of the seasonal range or fluctuation. The effect of a seasonal business is far-reaching, devious, and seri- ously damaging to profit, for manufacture is similar to any other physical process that is a function of time, and is most productive, and correspondingly least expensive, when operated uniformly. The leading manufacturers of the country have recognized the detrimental effect of seasonal fluctu- ation and have sought in various ways to overcome it. Mr. Feiss, of the Joseph & Feiss Company, has expressed the situation and the remedy used in his company as follows, in the Annals of the American Academy of Social and Political Science: In this connection, one of the most important things is the sales policy. Many businesses, even though having a highly developed manufacturing organization, have not a sales policy or sales organization worthy of that name. It is only in ex- ceptional instances that the sales policy and the manufac- turing policy are properly co-related. Ordinarily the sales department is administered with entire disregard of its most important function, viz., to market a product that will per- manently be of most profit to the entire organization. The Joseph & Feiss Company, in order to meet the problem of furnishing steady employment, have for some time past con- ducted an advertising campaign concentrating on certain staple numbers. The volume of sales that has resulted has been sufficient under normal conditions to provide steady em- ployment when other establishments in the same industry have been shut down. As to this phase of the problem, how- 42 PLANNING AND TIME STUDY ever, the surface has as yet only been scratched. The men who hold the purse strings must sooner or later learn that the correct point of view, both morally and for the purpose of permanent return not only to themselves but to all the or- ganization, involves the realization that the factory does not exist for the purpose of turning out for a temporary profit whatever it is easiest to sell, but that the sales force is part of the manufacturing organization, to market whatever it can most steadily, and therefore most profitaUy, produce. Seasonal Fluctuation, and Labor.— This problem has a direct bearing on the question of labor and the expense of labor turnover. The following statements of Mr. Boyd Fisher, of the Detroit Executives' Club, emphasize not only the effect of the seasonal busi- ness, but also definite remedies tried successfully by representative companies. Men are laid off chiefly, however, because of the dull sea- sons that afflict every business. Even the Cleveland Foundry Company, which I have cited for its good employment methods^ is handicapped by from 20 to 40 per cent seasonal reductions annually, and the stove companies of Detroit fre- quently close down altogether for periods which let many men get away. Mr. Winslow has some good analyses of sea- sonal fluctuations in several industries and cities. We shall return to this topic presently. The Joseph & Feiss Company, garment manufacturers of Cleveland, and the H. H. Franklin Company, of Syracuse, under-produce their demand in the busiest season. It takes intelligence plus courage to do that, and yet the economies of plant and labor force are demon^itrahle. Furthermore, the Joseph & Feiss Company leaves off its advertising campaign in the busiest season, and the H. H. Franklin Company pays a higher sales bonus in the dull season. DEMAND 43 Some companies fill out production in the dull season by stocking up on staple lines or standard, low-cost parts. A button manufacturer in northern New York, after scientific study of his sales, so managed this stocking up process on best selling lines, that for thirteen years he never discharged an employee for lack of work. For thirteen years a button manufacturer, dependent upon the most seasonal of busi- nesses, the clothing trade, never discharged an employee for lack of work! It is worthy of additional mention that this company thinks it economical sometimes to sell slightly below cost, in order to keep its constant labor force. It is the Franklin Company, again, under the brilliant management of George D. Babcock, which manages to keep its seasonal fluctuations within 30 per cent, by manufactur- ing during dull seasons those parts of its motor car which are standard or cheap enough to provide continual employ- ment without tying up excessive amounts of capital. The Production Curve.— Another student of in- dustry, Magnus W. Alexander, also states that it is possible to rectify a fluctuating curve of production: Opinions differ widely as to how far production can be fairly evenly distributed over the whole year, but the con- viction is making itself felt among employers that in most businesses the prevalent erratic curve of productive require- ments can be turned into a more even wave line. Several interesting evidences are already available to show the effect of well-directed effort in this field. The effort of any one in charge of the design of a planning or a production-control system must be, first, to analyze demand quantitatively, and then to place It according to the classification determined by the nature of demand, as seasonal-stock, and so on. It is 44 PLANNING AND TIME STUDY so essential to overcome the effect of fluctuating de- mand on production that the next effort, if the de- mand shows it to be necessary, should be to devise some equalizing influence, such as that used by the Joseph & Feiss Company or the Franklin Motor Car Company. Keepings Production Uniform. — As an example of what may be done along this line, I present a case in which the seasonal effect of demand was very marked, and the conditions arising from such a de- mand were extremely complex. The particular manufacture was a staple article, but one of almost endless variety in size and grade — there were about 2000 items in the line. Of the total production, the preponderant tonnage showed an ex- ceedingly seasonal character, although individual items represented tendencies, as regards demand, which took almost every possible direction and which were decidedly contrary to the prevailing trend. In the aggregate, the demand for the year ran about as follows : First Quarter 20,000 pounds Second '* 8000 Third '* 10,000 Fourth '* 30,000 Had the production followed the trail of this de- mand, the plant would have run in cycles of hectic rush and desperate idleness. It is needless to enlarge upon the obvious futility of such a policy. In this case, the following course of action was followed to provide for the situation. Shipments DEMAND 45 were tabulated for five years, item by item and by months. Every article was studied individually as a manufacture of its own, and whenever the demand for an article was sufficiently uniform, production on a minimum-reserve basis was arranged for. But in the case of any article that was distinctly seasonal, a deliberate program, or predetermined schedule, of manufacture was established, with the object of equalizing production and, at the same time, assur- ing an adequate stock to meet shipping requirements. As a specific illustration, the following treatment of a single item is shown: Quarters Ist 2nd 3rd 4th Article lb. lb. lb. lb. Past Sales 250 300 175 675 Monthly Schedule of Manufacture. 375 375 375 300 Balance after expected shipments) . 125 75 200 25 accumulated ) Reserve ). 125 200 400 25 Every item was analyzed in this manner and a pro- gram was outlined, with the results shown as fol- lows: Sales 20,000 8,000 10,000 30,000 68,000 Production ....18,000 15,000 15,000 20,000 68,000 In detail this meant a reduction from a sales range of 8000 to 30,000 pounds to a production range of 15,000 to 20,000 pounds. The chart, Figure 3, shows the real significance of this action, and indicates plainly how the plan simplified and economized pro- PLANNING AND TIME STUDY DEMAND 47 - 30.000 25^000 ?QOO0 O z D O 0. 15000 10.000 5000 1 I Sales — J T / , / \ / ^ .^ ^ -^ '•*•• '^•«.. Production ^■^ ^i^ ^^M «^B> 1*^ ^^ * /' \ \ \ \ 1 \ j^^es^ JAN- APR APR-JULY JULY-OCT. z • PIG. 3. CHART SHOWING HOW PLANNING BALANCED A FLUCTUA- TION IN SALES DEMAND TO A MORE UNIFORM PRODUCTION duction, and yet successfully satisfied demand. Natur- ally, certain articles were under- or over-estimated and caused little embarrassments and minor upsets, but the resulting good, as a whole, was beyond meas- ure. To forestall the only possible objection, it must be admitted that the average amount of stock was in- creased, and hence the average turnover was de- creased. Nevertheless, the interest in this increased investment was offset overwhelmingly by the in- creased operating economy resulting from more uni- form production. So far as possible, the attempt should be made to stabilize manufacture, and to supply demand without literally following it in production. This is the es- sence of economy in production and of simplicity in planning, and too much attention cannot be given to such analysis and study if the best results are de- sired. Variety of Demand.— By variety of demand is meant the number of different articles, items, or prod- ucts that constitute a given manufacture. The ex- tent of variety may be appreciated in view of the fact that an individual manufacture may range from the production of a single article, to the production of several thousand different items or varieties. Naturally, this condition bears heavily on planning, and is another governing factor in the design of the machinery for controlling production. In order to determine the effect of variety on the problem of production it is necessary to learn every item made or represented as being made. This is not always an easy undertaking, for it is rarely that a manufacturer in a business of wide diversity realizes the number of items he produces. The catalogue of ^uch a company is an excellent source of information as to the extent and character of the product, and can well be studied not only for the purpose of determin- ing variety, but also for the sake of gaining the gen- eral knowledge of the manufacture which it reveals. If the processes on the various items are distinct for each, there is little chance to simplify the pro- duction. Often, however, the product is an assembly proposition, and identical parts contribute to differ- ent finished articles. Whenever this is the case, it is 48 PLANNING AND TIME STUDY DEMAND ■^iH^H STOCK YEAR ' i-ftTiuAim - ==— Number Amount Forv Artlel* - ard«d 1 1 ' Tn*al Maximrm _j___^. , FIG. 4. PART-ACCUMULATION CARD desirable to establish such uniformity by means of a part-accumulation card. To illustrate the use and purpose of such a card there is shown in Figure 4 a card developed in connection with a planning system in a plant making table-ware, such as chafing dishes, percolators, and so on. Identical parts were often used on several differ- ent articles and very frequently supplied a whole series in which the only difference in the items was in point of size. The card was used for every part and shows the finished items, using the part with the quantities estimated to be sold in the ensuing quar- ters. This card furnished a basis of stocking parts as a minimum reserve, and thus to supply the assembly of over five hundred items in this particular line. It proved successful in its purpose. Similar cards em- 49 r% A p^ •r* i& ■■- %*— V# ^^ M PABT Mn DATE NAME or PART MATKRIAL PART DRAWING No. USED ON PROORESSIve NO. SUPERSEDED BY CLASS TYM Size AStCM. ORWO. START STOP PART NO. ORAWINO ^"' • >.«**••*•••• . FIG. 5. PART INDEX CARD r^ iar\i 1 ea iKir- NCTV r^ A r-»r^ < nROliP Kir. 1 v^rvvyur" ti^LJcy\. \^^\r\UJ DATE- NAME OF GROUP MATERIAL USED ON PROGRESSIVE NO SUPCRSEDCD BY CLASS 1 TYPE size 1 ASSCM. ORWO START STOP enoup NO. lAstem. Oraw'o ~ — .- FIG. 6. GROUP INDEX CARD 50 PLANNING AND TIME STUDY DEMAND 51 SS '• ployed in another manufacture are shown in Figures 5 and 6. They may possibly be of interest, and may make possible better selection in certain cases. The variety of items in a manufacture may im- pose very difficult adjustments on production, if it is desired to keep the volume uniform and to prevent undue turnover of labor. It is not usually possible to concentrate on one item of a line and produce it in quantities, but it is usually necessary to preserve a balance of all items in production, with the object of utilizing all equipment and maintaining the balance of labor. In the table-ware manufacture, just referred to, spe- cial equipment was provided for each of the many series in the line, and to operate economically, it was necessary to use the entire equipment on small runs of all articles, rather than to produce large quanti- ties of a few articles. In knit-underwear manufacture, in which there is a large variety of styles, the seaming and finishing operations vary greatly. In order to produce uni- formly, and to keep a supply of competent finishers for each operation, it is imperative to send to the seaming and finishing departments an assortment of **cut dozens" ])alanced to the hands. The operatives in this industry become specialists in certain oper- ations and even in making certain garments, and re- fuse to interchange on other operations. The instances stated have been presented in order to show the strong influence of variety on the design of the machinery of planning. Because of this in- fluence no attempt at planning should be made with- out sufficient knowledge of the effect of variety on the system to be developed. Danger in too Great Variety.— There is another important point in connection with variety which is not strictly a matter of planning, but which has more to do with the manufacturing policy. Nevertheless, it would seem insufficient to conclude the discussion of the effect of variety without mentioning it, even though it is somewhat outside the function of plan- ning. This point is, that variety is often too great to be profitable. Manufacturers in striving for volume have frequently lost sight of the main point of great- est profit, and have enticed trade by means of novel- ties, side lines, or specialties, in order to increase their business. This procedure has brought severe trial on production, and frequently has resulted in less aggregate profit than a smaller volume of less extent would have brought. Often, too, manufac- turers are ignorant of the margins on individual items and consequently carry on business, unknow- ingly, at a loss. The remedy for this is an exact costing of the line.* This particular difficulty is beyond the effective reach of planning and is mentioned only because it is a fre- quent experience and because, where production means loss, planning or any other effort seems futile. In making this comment I except, of course, those occasional instances in which loss on an item must necessarily be accepted as a matter of trade policy, Xfn«* ^^® "Industrial Cost Finding," by N. T. Ficker. Vol. 5, Factory Aianagement Course. 52 PLANNING AND TIME STUDY in order to secure the profit on other parts of the line. Delivery Requirement. — Service is success. There is little doubt that in the evolution of business the time has come when satisfaction is virtually the com- modity sold, and when no manufacturer will long en- dure who refuses to take this point of view. Service is not only a matter of price and quality — it is often more a matter of delivery and of meeting the public's needs promptly. There are many com- panies today who receive excess prices for immediate delivery of articles which could be supplied by their competitors if the latter only had the ability to serve their customers. A garment manufacturer told me recently that be- cause of a newly devised planning system which con- trolled deliveries, he was able to charge two dollars more per dozen for his product than formerly. A cer- tain button manufacturer has secured first reputation in the trade because, as a result of successful plan- ning, 90 per cent of his orders are shipped the same day they are received. So, in connection with the question of delivery, the planning system encounters its real point of control and the reason therefor. It is necessary to analyze the delivery requirements of the trade, to balance them against the capacity, and so to develop if possible the means of satisfying the demand represented. It is not always possible to schedule demand broadly in this manner, but it is always necessary to produce goods in the order in which they are required— in other words, to recog- nize service as the guide to production. DEMAND 53 The demand of the trade for delivery cannot be taken too literally. Buyers are human, and therefore naturally seek to supply their own necessities. The requirements that they state on an order may actu- ally represent their needs, or they may represent a liberal allowance both for later changes in the order and for the possible failure of the dealer. It is highly important to discriminate in the trade and to recog- nize from experience those customers who state their needs honestly and conservatively, as well as to real- ize who are allowing liberal margins of safety. Demand and Plant Capacity. — ^In a textile plant in which I was once engaged, the standing instruction had been to produce according to customer's require- ments. No analysis had ever been made of what de- mand this instruction put upon the production de- partment, and the sales department was finding con- tinuous fault with the shortcomings of production. One of the first moves made was to reduce the de- mand by dates of delivery required and apply it against the equipment. To the surprise of the management, it was found that on every group of finishing machines there was about two months' w^ork ahead at straight running, and yet the delivery requirements analyzed to time showed that 70 to 100 per cent of the unfilled orders called for delivery within tw^o weeks. In a word, the production department had been trying to accomplish a physical impossibility, and inevitably had to dis- appoint the trade. To remedy this condition, the capacity was de- termined for each machine group and the orders were 54 PLANNING AND TIME STUDY DEMAND 55 I applied against this capacity. This application, or scheduling, was done, not by dates of delivery re- quirements, since it was seen that it was impossible to adhere to them, but by order number, or date of their receipt. The demand was thus spread over the weeks ahead, and wherever it developed that a cus- tomr could not be satisfied on delivery, he was noti- fied, informed concerning the reason, his place on the schedule, and the expected date of the delivery of his order. The same method was used in a certain garment manufacture, in which a schedule was developed, not according to machine capacity alone, but according to the general capacity, in dozens, of the mill in terms of the assortment of styles manufactured, shown as follows: MONTH— JANUARY Kind Ladies' Union Suits Men's Union Suits Boys' Union Suits Capacity in Dozens 3000 3000 2000 Order No. 120 48 120 48 36 240 120 24 120 4620 4621 4622 As orders were received, they were applied against this schedule. When the month's capacity was consumed, the orders were applied on the next month's capacity until the year's capacity was ac- counted for. The chief precaution in using such a schedule is to develop the capacity accurately not only in quantity, but in proportion over the line. Dealing with Orders Individually.— It is not al- ways necessary or possible, however, to analyze the demand in this manner. Frequently, the demand is of such character that a broad schedule would be useless, and then each order has to be treated separ- ately. This is the case in a manufacture of wide diversity, in which the product is not uniform in the processes or in the equipment requirements. More- over, in such a manufacture an order for one article, received today, may not be shipped for a month, whereas an order received a month later for some other article might be filled, and the article shipped, within two days. Often it is necessary to produce on specific promises to customers. I have known cases in which 25 to 50 per cent of the production was done on the basis of promised delivery or definite date of completion. This is a troublesome form of production; it is usually the result of faulty control or lack of plan- ning; but in any business, orders do occasionally oc- cur which require exact promise of delivery, and such promises must be kept. In a rope company, an order for tow ropes would be received for delivery to a steamer scheduled for a definite sailing. These ropes carry marked strands; they are not stock products, and have to be made up specially. Naturally, it is imperative to ship in time to make the steamer. Shipping a day late would be 56 PLANNING AND TIME STUDY DEMAND 57 -J < UJ u. -J m o z tr hi Q (r O z E D o < D' Z < z u y u. U o tr (£ UJ Q tr '^ 111 u o o Z »- y < tAh- (K D < OQ U O o UJ o Q. h _ Z UJ UJ Q. Z O H Q. 6 i Z (ft < > 55 bo u c o 1^ Z 3 Of 1 , -11 « a: H -D <: • t: *li o 11 ORDER NO. ORDERED WANTED On Pure Requisi No C Jo £o ««-< < H 2QO w c H § fc I _ ^ "O UJ Ji'o UJ I "ii (/) b z Z ti a ■* si TIO S SHE CU z < S , y s i < °5 >J y s li. w 1 - 1? aoH s u LJ 1 Q. 0) KIND OF MATERIAL u S < z H tf < a. 1 UJ UJ 2 oJ < Z « 1 • z II o iiiiif i X ?? ^-g?? ^- - S S lO f •! 1 1 ^ s s » ff <» _ , — '*' « •» r* II i ' ? ^ I 15 £ 1 c S 1 4 > II *s JIJ T C « «. «L «L It - 11 till Urf uirf wJ uj c: Z ■1 1 = ll o h' ' ■ ' -"-"-"- ^ ■ / -. 1 1 O 1^ o o m o OS m o 1^ o < < P W W m I O 02 I For some time, this matter has been considered, and yet no rule has been developed which will permit of universal application. The readiest working guide in such a selection is to have the time required to pro- duce the desirable order quantity not over half of the time in which it is expected the minimum reserve will supply the sales demand. For instance, if the mini- mum reserve is set at a figure which it is expected will supply the demand for 30 days, the replacing order should be no larger than can be produced in fifteen days of manufacturing time. As an actual example, the minimum on a certain article in a line was set at a 40 days' supply, or at 400. The time to manufacture, or the turnover of production, was about 20 days for 300, so the de- sirable order unit was set at 300, or a size requiring about half the days' supply. After the desirable order units in a given manu- facture have been established for every item, it is well to reduce these quantities to the time which they represent against the equipment necessary to produce them. If, when this has been done, the total time of all such orders applied against the equipment is, in the aggregate, less than the number of days repre- sented by the minimum reserve, it is safe to proceed. *'Setting:-up," or ''Changing," Time. — Another im- portant factor in the size of the production-order imit, is the matter of the ** setting-up" or ** changing" time involved. The preparation of a machine for a nm varies from only a few minutes to several hours, according to the nature of the machine. Now, ma- chines are expensive and especially so when idle and 62 PLANNING AND TIME STUDY DEMAND 63 non-producing, as in setting-up or changing. Machine rates run from 60 cents to $6 and $7 an hour, and more; and in a consideration of the length of run, both the time required to set up, or change, and the cost per machine hour must also be taken into ac- count. Frequently it is possible to average the orders of the past few years and establish a workable, desir- able order unit in that manner. This was done very successfully in a plant producing over 600 different items of many different component parts. In deter- mining what would make a desirable order unit for a given item, the manager insisted on 5000 or 6000, and so on, which were quantities representing almost a year's supply. True, from the viewpoint of best economy of any one item, that was the desirable order unit, but in connection with the 600 other items, it was prohibi- tive. Upon analysis of the records of the past, it was found that these order quantities had been ranging in a haphazard way from 200 up to 2000, but that a very fair and working average was 500. The whole line was thus analyzed, and desirable order units were determined for every item. This procedure meant uniform flow of work, equal turnover, and a standardization of conditions which permitted easier control. So in the designing of a planning system, it is necessary to consider carefully the matter of the number of sales orders handled, for this is a direct measure of the amount of detail required. It is also necessary to determine the size of the order, to accu- 64 PLANNING AND TIME STUDY DEMAND 65 i mulate sales orders whenever possible, and to apply against stock, in order that production may be carried on in fairly equal cycles of a size adjusted to the time required for processing and also the economy of operation. Specifications. — The specifications of an article or product define the entire manufacture. The specifi- cations not only show what is wanted in the way of size, finish, and kind of article, but they also show the raw material required to produce it, and indicate the various processes necessary to convert the raw material into the finished product. The specifications constitute a standard and yet, despite this fact, there are plants which manufacture without such a formal record of the product they are handling. I have known many companies in which the article produced was made from plans that existed mainly in the memory of some boss foreman or superintend- ent. The product might be shown in fragmentary form on rough shop prints, but no complete details of the parts, material, and so on, was on record. The following is a typical case of this kind. In one plant, specifications were shown on a large shop ticket, which served as a production order as well. This ticket accompanied the work and, if not ruined be- fore, usually reached the place of the last operation so smudged and defaced as to be illegible. When the work of reducing this line to formal specification was started, the old shop tickets were practically use- less, and it was necessary to measure and draft every article in the line again. The main objection to such methods, however, is that there is liability that costly 66 PLANNING AND TIME STUDY DEMAND 67 s 2 1 MACHINE SPECIFICATIONS 1.. \ 1 -- a i - i 1 TT {{ • • jj it \\ If M "J i\ il II n II II e c Z -I < S hi !; u. O J J 5 z 3 get 5g - ^ Ok zu If o z Id z % H U bl X «) z K 111 Q K z Q. K U (0 111 Q ZK KW W(D 0.3 Z z o 9 S I" m x/i O < rJH o o Q CO xn o errors may be made, on account of the illegible record which passes through the shop as instructions. Specification Sheets.— Since such a condition is of frequent occurrence, and since the information, even if collected, is often not in the form to be used to best advantage, I have shown in connection with this chapter some specification sheets which have been used successfully, and which are representative of standard practice. (See Figures 7 to 15, inclusive.) These sheets, it will be observed, give in the first place a complete physical description of the article to be produced. They show the various composing parts or accessories which are indicated by numbers. They show any sub- or semi-assemblies which are used in the product, and they show the kind and size of the raw material from which either the entire article or its parts is made. Specification sheets of ihis character are frequently termed Bills of Material, and serve, as will be seen m the following chapter, as the basis for the pur- chase follow-up and stocking of material. Specifica- tion sheets do not always remain on file as standard records. They are often duplicated, and copies are used as manufacturing orders, as may be seen in the case of several illustrating this chapter. There is no difficulty in preparing specifications of an article but, owing to the very general lack of information, the job of bringing an entire line of manufacture to complete specification sheets, or bills ot material, is laborious and exacting. Whoever is appointed to the work should be familiar with the iine; but even if such a man is in charge, it is neces- 68 PLANNING AND TIME STUDY DEMAND 69 SPECIFICATION SHEET KNITWEAR CO. STYLE DESCRIPTION SIZE PART NO. PART WAME MATERIAL QUAN. PER DOZ. Body Sleeves Gusset Cuffs Collarette Shoulder Straps Stay Buttons Braid Lace Ribbon FIG. 15. SPECIFICATION SHEET USED IN KNITWEAR COMPANY sary to make a physical inventory of the product in order to secure complete information. There is nothing confusing in the principle of the specification sheet— the chief difficulty is in the amount of detail and the necessity of accuracy and completeness. Specification sheets are prerequisites to planning, and must be provided as the basis of planning operation. Recapitulation.— In this chapter I have discussed demand from the point of view of: Fluctuation Variety Delivery Requirement Amount or Quantity Specifications T have endeavored to indicate the scope of the field for each, and to illustrate by specific cases the method of approach and the elements of decision, so as to furnish a guide for the solution— from the aspect of demand— of any problem of planning which may be encountered. In the next chapter, I shall treat of material and of the consideration which must be given it as one of the elements in the design of a planning system. CHAPTER IV MATEEIAL AS AN ELEMENT OF PLANNING Determimng Kind and Quantity. — Raw material is the fabric of manufacture, and the estimate of re- quirements with respect to it, and the provision of a timely and sufficient supply of it, are considerations which make material one of the important elements in the planning of production. Raw material as the substance of manufacture is usually the biggest factor in prime cost, running as high as 85 per cent in the rubber tire industry, as an instance. Although there are businesses where this is not the case, generally it is so; consequently, the judgment displayed in its purchase and the nicety and timeliness with which it is provided, have big effects on profit and also on the problem of planning. Since raw material is the **sine qua non" of manu- facture, the first consideration with regard to it is the determination of the kind and quantity required. Naturally this varies widely with the character of the business, but essentially the principles of handling it are the same. The amount of raw material required is determined by a study o^ the demand and the resolution of the demand or sales in terms of finished product to terms of raw material. The specification sheet or bill of ma- 70 MATERIAL 71 terial, as discussed in the preceding chapter, is the source of information for this work. This specification sheet shows the kind and quantity of all materials entering into each article or product, and it is only necessary to extend this information by the total quan- tities represented by the demand. Material Estimate.— As illustrative of this descrip- tion, the following detail is given concerning the esti- nrvRiPTinM MATERIAL RECORD M^ UNIT .. . MINIMUM SIZE. Quatity Uced 1914 1915 1916 1917 CUSTOMER MODEL SPEC. UnH Quantity Number Spring* - TOTAL REMARKS FIG. 16. MATERIAL ESTIMATE FORM mate of material requirements in the plant of a manu- facturer of an automobile accessory. A material estimate form was used, as shown in Figure 16, and one such form was prepared for every specification or kind of article showing the amount of each kind of material used in the manufacture of the article. To this information was added the esti- mate of the business expected in the coming year, and the unit quantities were multiplied by this quantity to determine the amount of material required for the year's business on that particular article. This same procedure was executed with every in- 72 PLANNING AND TIME STUDY MATERIAL 73 1 dividual speeification made, and then the require- ments were accumulated by the various kinds and sizes of material which happened to be standard or common to more than one. In this manner the total requirements for every kind and size of material and for parts were determined. This estimate was made on the basis of the year's business, but often it is necessary to confine such an estimate to the sales of a quarter-year, or even of a month, in which case the only change is in the quan- tity of expected sales and the greater frequency with which the work is done. Estimating by Analysis of Orders.— In another manufacture the estimate of material requirements was made by means of a sorting or mechanical method, rather than the arduous listing and relisting necessitated by the operation just described. In this plant the sales were known in advance for the year, so shortcuts and greater exactitude were made pos- sible in the work of estimating material. The orders were first transcribed on an order sheet and every item by size appeared on that order. The next step was the itemization of each order by means of the fanfold attachment to the Underwood type- writer. The form used. Figure 17, was made in dupli- cate by use of the attachment just mentioned, which enabled the making of copies without the necessity of changing carbons. One copy was filed by style and size of garment, and thus accumulated automatically the total pro- duction requirements of each garment. The second copy was used to determine the requirements of the r . r\0 n^R ANALYSIS ORDER ANALYSIS ORDER No. STYLE SIZE QUAN. KIND AMOUNT YARN CLOTH BUTTONS FACING EDGING FIG. 17. FORM USED ON FANFOLD ATTACHMENT TO UNDERWOOD TYPEWRITER various materials going into the manufacture, and was used as follows: The second copy was first sorted by the kind of yarn used, and totals were thus accumulated of the twenty odd kinds and sizes. This information was used as the basis of the yarn contract, both as to aggregate and proportion in the sizes. The same copy was then re-sorted by kind of cloth, and the total of each kind of cloth was ac- cumulated and applied against the knitting ma- chines. The copy was then again sorted in the same man- ner for each of the various parts, such as laces, 74 PLANNING AND TIME STUDY To Purch«^^)g Committee : REQ. No. PURCHASE REQUISITION date i». Please provide the following item> For- «nd, upon receipt, kindly notify. tlTATS ran WH4T UMO QUANTITY AUTMonnKO DCSCRIPTION (•e MOT swcirr Me«« tmam o«m rimo o# mmruuiU.t OATK j QVANTirv CHAROK <^. SIGNEO- PURCHAaC ORDCN No. TCMMS AMT. OM HAND AMT. OM OaOCM o-m TiAM-a mamtimMMtm, AVCKAa* micd AOOrrce AS STAMBAHa tWM« 0» rfW WITH WHOM OAOC* M*« VCSN H^CS*) > LAST oatoca PtAcao- WITH •UBSTITUTION . I * * * * • T • • 10 II 12 13 14 IS I* 17 IS n 20 21 22 21 24 25 2S 27 2S 2> no. 18. PURCHASE REQUISITION (See page 86) edgings, buttons, stays, and facings, and in this manner the total requirements of each were deter- mined. This mechanical sorting greatly simplified the work of determining the material requirements. Generally, however, the listing method as described in the first case is the one used, usually in the manner described in the particular manufacture cited. Frequently it is possible to summarize the bills of material and to deduce from them the requirements as to material. Eeference to Figure 11, page 62, will show such a bill. The Two Basic Purchasing Methods. — The raw ma- terial required for production is determined in the aggregate in the manner described in the foregoing. MATERIAL 76 PURCHASE REQUISITION New Tools & Machinery Facto/y Equipment 1 Packing Supplies Tools & Machinery Reps. & Renewals Manufacturing Material -^ 1 Experimental Building Reps. & Renewals Manufacturing Supplies 1 Misc. Supplies 1 Heat, Light Power 12 Stores ^b" 20 Kilns 1 27 Storage MIdg 2 Office, Scr 13 Trucking 21 Mill 28 Scr Packing 5 Office, G B 14 Auto 22 Screen Mill 29 G B Mill Office, General 15 Sheradizing 30 Smoothing 31 C T Set Up 6 Advertising 1 16 Plating 23 Door Mill 32 G B Set Up 7 Printing 17 Tinning 24 W S Paint 33 G B Paint 8 Machine Shop 18 Metal Screen 25 M S Paint 34 G B Packing 9. General factory 19 Lumber 26 Wiring 35 C Table Pkg INDICATE ACCOUNT *ND DEPARTMENT BY CHECKING. (SEPARATE SHEET FOR EACH ACCOUNTI Knr»^»n Approved FIG. 19. PURCHASE REQUISITION (See page 86) The next point for consideration is which of the two basic purchasing methods to adopt — the specification basis or the minimum basis. On the specification basis, the total requirements are determined and then an order or contract is placed, usually with a schedule of a stated specifica- tions of delivery. This schedule operates in parallel with the production and is intended to meet the re- quirements of the production. On the minimum basis, a quantity is established, either for a month, quarter or for the year, which represents the reserve of material which is to be 76 PLANNING AND TIME STUDY II I: Hi li a ,;) I Ji i| I s (^ 2 it !l m i) w t M 8 ii ii !■ iiii (•' 1 © li!! ''li I • c li • * 3 I ••01 oM iiiaao astxagm CO o o 04 gs Q 0) O 04 MATERIAL 77 RECEIVING RECORD Received From Dot* 19 Addreu Ordered From Addreu No EXPRESS FR£IGHT OeUVeRED BY Wti$ht QUANTITY UNIT TART NO. Tsr Colbct Wtlfhl Tsr firlirf WHglU DcscitirnoN -pzir rURCKAHE ORDOtNO. r KEJlCTtD ColUcI wpnrn — ox. nSTfD ON STOCK itECOM> CHCCKID WITH INVOKB §i! Si INSnCTCD t MCCCrVINC CLEWC riG. 21. RECEIVING RECORD (PAGE 89) Descriptinn i Date Ordcrad Qty. Dftte Rcc'd FROM Price Toms P.O. a FIG. 22. PRICE RECORD (PAGE 89) 78 PLANNING AND TIME STUDY MATERIAL 79 PURCHASE RECORD ARTICLE DESCRIPTION DM (MhN*. noM QimWIiO*— i »— MH >»•< PMn TtaM r.aa r.*t MVOKX DMa IMAat QUANTITY USED PER YEAR | MoaHi I^MUtaluLWlS tmrx. )W.I*I1I>|B.I*I4 otrr. Jaa. I*I4 to Iml 1*IS DEfT. J^ I*tSla|M.UI« D«fT. JM. I*I«I»|W.I*IT ocrr. bK I*ITt*lM.l*U JAN. FEB. MARCH APRIL MAY JUNE ULY ADC. SEPT. OCT. NOV. DEC. Total ' REMARKS FIG. 23. PURCHASE RECORD (FRONT AND REVERSE) (See page 89) drawn on for production. Whenever the withdrawals from stock brings the supply of stock below this quantity, a purchase order is placed of a size designed to make up the shortage and provide against its repetition. The minimum quantity is set at a figure which is estimated to meet the demand of production until the replacing order quantity can be filled. This quantity is a function of the time needed for actual transit or delivery, as well as the time required for the dealer to produce. It is a quantity which must vary with trade conditions, and unless adjusted to these variations it is apt to impair seriously the working of the method of which it is a part. As illustrative of this possibility, the condition in the material markets during 1916 and 1917 might be recalled. The demand for raw material was never greater. Every mill or producer of a basic com- modity was backordered for a big proportion of its capacity, with the result that deliveries were de- layed and promises of service were almost abandoned. This caused havoc with such manufacturers who did not foresee the condition and provide accordingly. In fact, it may well be said that the year 1917 saw the strategv and policy of the purchasinc: department of all manufacturers rise to a point of high importance, probably second only to the handling of a short labor market. And in the case of the minimum method, unless the quantities held in reserve were extended to cover the increased time of delivery — and usually this meant doubling at least— the available supply was cut to a point which reduced if not actually stopped production. The minimum and specification methods have their respective values, but the minimum basis is probably in wider use than that of the specification. There are various conditions which would influence the selec- 80 PLANNING AND TIME STUDY MATERIAL 81 I, ■a t I ^1 u o Ed i ^ CO U X U h ? o I J I ii Q (M 6 tion of either method for a given ease and it is hard to stipulate which is better without knowledge of the details of the particular case. Generally, however, the more staple in character a material is the more readily it is handled on a minimum basis; but as ma- terial becomes a specialty or is affected by other con- siderations, such as speculation market, the speci- fication basis becomes more convenient and satisfac- tory. Relation between Planning and Purchasing De- partments, — The purchase of material in some indus- . tries has the most vital influence on profits. Unwise purchasing may readily nullify the most efficient operation and result in loss in the face of most in- telligent management of production. This is es- pecially true of the knitting, rope and cordage, brass, copper, and rubber industries, where the raw material must be purchased in a speculative market. There are cases which are well known to me where judicious purchasing of raw material, such as copper or hemp, in a speculative markiet by certain manufacturers resulted in profits greatly in excess of competitors with plants of equal capacity and efficiency but whose purchasing was less sagacious.* The planning department, with its detailed knowl- edge of demand and its estimates of future manu- facturing requirements, can play an important con- sulting role in purchasing, and in many plants it actually authorizes purchases. The planning depart- ment in such cases specifies to the purchasing depart- * See "Purchasinjr and Storing," by H. B. Twyford. Vol. 4, Fac- tory Management Course. : 82 PLANNING AND TIME STUDY MATERIAL 83 o : w > u " — — — — — — — — — - « w K ■M^Mi KHM. _^— -w xKHV ^^— ^^^ ^^— ^^^ ^IH- — ^— -^— -1^ ^^— ^^i— — ^^ wm^^ m^^ •m—~ ^^— ^~^ •^— ^-^m mm— ^^— v o w c u I — — — o B o II — ^ — — — ■— — — — ^ — — — — — — — —— — — •— — ^— — — — ^^ ^^ —» — - ^^H ' H^^ V^ ^>^ Kll^ V^H ^-^ ^^^ ^^— ^^^ ^— ^M- ^-^ ■is— • 1^^ — ^ M^— • ^^V ^>Ma •■■^ ■■■« B*V B-^H ^^— -• o w > 'u — — ~~ — — .^-i- U w K O w I 3 ._ __. m ^~ c o o o «= = = = = = == = = == = ^^ ■=- = = =•== = ==== =5: = == = = 1 z « - o w > w u — .__. w c " ' ""■" — — ' — — — — — ■ ' ' "'■" ■"" "~" """" — — — " ""^ I— »— ' II' , — ^ ' ^~~ ~ § O OS o H 05 Qi (M CQ II Ui H-* Do < >- u < n 3 n < w > »- UJ < ** V UJ ^ D >• 9 < < t I H ? 6 Q ZL < z ZE. EIGHT Al -J Z U < UI < f?r >■ 55^ z < < z w CD < Q ^ >■ q: ^ R • Q bJ 1 - tr >■ D z 0) h *fl I (/I c 1 UJ 1 < 1- ^ 0) ^ >• II »- II , *- 11 ' H < II 3 H 1 c UJ 13 > £ 1 iJ U z II ■ iiJ > H 1: n * u n Id D < It J V 2 c < (L * ' §1 ' — t h ; ■ " 1 . oi lJ < iu . 11 ,' w r - u k) ; H w z ; D -I IE J 1 . ■ ull ^1:^0 m 4 w •> 3 >- UJZ Q< z < z \ z > z CD 00 J < ■ z t w «n 3 ■ 1 z u z • 7 < z i •1 >■ J K < z a 1 s M ' ■ K 4. . ■>• 1 1- I M > s < 1 UJ u n ^ Q N 5) 1- z s U *l ■■ ^oS <•-« Z • \ ■ 1 ^ ■ UJ »• i J K z < 1 < u *- i \~ \1 t H S < -1 1 8 I g o o 03 o o 02 (M 6 84 PLANNING AND TIME STUDY MATERIAL 85 I o H V) .1/1 (n- 35 e 2§ 5 ; *«. " I II u 5 23 2 Oc» Mw S V) < ii z h- i^S K !£►- < w y u c < u >■ 21 (/> ■ (0 1 atfx 2S Q K u. jr oc U z W>UJ . ' < < (/I E u h. 5? 1 >o *»S; Z < K . z Ui o . 111 2| I u U 7 O u < z c ii J^ e u o V) u o u in is o Q in o U) < i UI < X •J ■ o z i • (/> Iflf- 55 J lA 3 K a (/V . < I'** X U I kJ a. •=-.— — — . i H u^ X Ui a ce ii Ui c ►- o n 1 0> 0) 0) 0> 0) a - ji 3 5i o o \4 be • ai 00 a 02 CLASS- RA^ INDIVIDUAL /V MATERIAL STORE CARD TITLE cinnF SlZPT HIN . SECTION. BIN ■ tOUKITIOR Bceuitu uuaci DtuviKB 1 lilOUISIIION KteuilltO MUHCC DfLivcnco 1 ; . •^-^— — — FIG. 29. RAW MATERIAL STORE CARD (See page 91) ment what the requirements are, the purchasing de- partment merely attending to the mechanics of actual purchase. Speculative Markets. — It is interesting to consider the reason for speculative markets in raw material and to realize the terrific ranges and fluctuations in price which they may present. Price is largely a matter of supply and demand, and price fluctuates directly with one or the other or with both. In most raw materials demand is the variant and supply is practically constant; the price rises or falls accordiing to the extent of the demand. But the price of certain commodities, where the sup- ply also is subject to variation— such as caused by the risks of agriculture in cotton, or the manipula- 86 PLANNING AND TIME STUDY tion of production as with copper— fluctuates both with demand and supply, the two combining to give very wide extremes. Taking cotton as an instance, the following data will show the enormous range in price as well as the fluctuations in production: Year Production Income Price per Bale 1907 11,000,000 Bales $613,000,000 $56 1909 10,000,000 << $688,000,000 $69 1911 11,000,000 << $809,000,000 $73 1913 14,000,000 <( $885,000,000 $63 1914 16,000,000 $591,000,000 $30 With such fluctuations the necessity of good specu- lative judgment in purchasing and the effect of poor judgment upon profits may be apparent. Purchase Methods.— Having considered the method of determining raw material requirements and the basic methods of purchasing, as well as the influences of a speculative commodity, the discussion will now turn to the details of actual purchase, purchase fol- low-up and receiving, and stock records, and so on. Purchasing is done usually on the authority of a requisition called a ** Purchase Eequisition, " and, as representative of forms used for such purpose. Fig- ures 18 and 19 are presented. (Pages 74 and 75.) The actual form of purchase order takes infinite variations according to the nature of the business, but the general principles of purchasing and follow- up thereof may be considered definitely. They are illustrated in Figure 20, Page 76. Sheet A, Figure 20, is the purchase order form sent to the dealer. The stub attached to it is re- MATERIAL 87 turned by the dealer as acknowledgment of receipt, with promise of delivery. Sheet D is a tickler which is- filled out when the stub or coupon attached to Sheet A has been re- turned. The tickler is not filed by date until the re- turn of this coupon, hence tlie ticklers awaiting in- formation required to file will indicate what orders await acknowledgment. The tickler is finally filed by date of expected delivery or several days ahead, and this file enables proper follow up on whatever cor- respondence is required to insure delivery. Sheet C is sent to the receiving clerk as his copy of the order against which receipts are to be credited. Sometimes the quantities are shown on this copy of the purchase order and sometimes, as in the form shown, they are not. Practice varies considerably on this point. Of course the theory is that if the quan- tities are shown, the receiving clerk is apt to assume full delivery and neglect a count. This is a point upon which it is difficult to decide and really is a matter of viewpoint or personal inclination. I have seen both methods used to advantage in different places and hesitate to state a preference. As Sheet B is returned from the receiving depart- ment, the quantities are posted on Sheet C in the columns shown; and when the invoice is received covering completion of the order this copy is at- tached as evidence of receipt of goods and therefore as warrant for payment. Sheet E is usually kept in the purchasing agent's office and may be used in the form of a manila folder and file of correspondence bearing upon the order. 88 PLANNING AND TIME STUDY MATERIAL 89 n 3 3 w> & K Ul Q q: Q z < y < D Z < >- z K < >- 1 ° 1 "^ J a. I — i — ... ~" ■" MM "" : " I a. < il j^^^ ^aa . n a u « n 5 1 — !'U- pii |i»-_- --ii--- 1, 1 t 1 fi— 1 i J_ 3=K 'I I 1 r— !_.,_ • , 1 ; SI -= " ■ '1 i,„ log • 3 ' It "~" f [I, i ^ — o 8 ■»» "~" It i IE j; u I WW UK a 3 1 i— ■ ° s W I '.i 3 — ] 1 — . ** W z ■ — = — ■ M < H O CO d DATE OROCRCD OTY DATI RECO OTT DATE DItlURSCO QTT ■OTY ON HAND BIN NO. Dept. Article- Mflch. - Pat No. Metal _ Mim. Stock- Max. Stocks Value Date _, Date ,^. Date ,.^^ Qty. Ordered 0*» Rrc'd Q»» Dtabuncd Ot» On Hand FIG. 31. BIN STOCK TAG (FRONT AND REVERSE) (See page 93) Frequently it is desirable to use a separate receiv- ing record which is transmitted to the purchasing de- partment or the material clerk, the receiving de- partment keeping it's copy of the purchase order. A very acceptable form of receiving record is shown in Figure 21, Page 77. Purchase Records. — Other forms concerned with the purchase of material are a price or a purchase record of purchases made by articles. Figure 22, Page 77, is a price record and shows for any given article the prices paid on the past orders and so furnishes a basis for future purchases. The same information, only with some greater de- tail, is shown in Figure 23, Page 78. This record shows not only what orders have been placed but also is a 90 PLANNING AND TIME STUDY o BIN TAG ARTini F 1 RECEIVED ON HAND DELIVERED DATE QUANTITY QUANTITY DATE FIG. 32. BIN STOCK TAG (See page 93) record of receipts and on the back summarizes the consumption of the particular article by months and for past years. Such a record is an excellent basis for future contracts and indicates as well either ex- cesses or economies in the use of the particular ar- ticle shown. Another valuable purchasing record is illustrated in Figure 24, Page 80. This gives a record of each con- tract made and the status of applications and ship- ments against each contract. In a market where prices change rapidly, it is quite important to know at all times what uncompleted balances exist on out- standing contracts as well as to keep dealers defi- nitely informed as to the state of their obligations. The form shown lists the requisitions made, the orders placed, and the shipments made, and carries MATERIAL 91 a running balance showing what is still due on the contract. The records and methods discussed in the fore- going may not appear to have an immediate con- nection with material as an element of planning, but in reality they are very important to planning, since an adequate purchasing and follow-up compose the very basis of planning. Recording the Movement of Material.— The record of the movement and location of material after re- ceipt, however, is peculiarly a planning department concern and usually is in the charge of a so-called material clerk in the planning department. The status of material is determined in the same manner as a bank determines the status of moneys or de- posits—that is, by a series of individual ledger ac- counts. These ledger accounts show all material re- ceipts and withdrawals, and hence the balance on hand, which is the essential information from the viewpoint of planning. This information may be ex- tended to show the price or the value of material and the applications made before actual withdrawal. Such stock records may be kept on cards or sheets, according to the nature of the business and the tastes of the individual making the installation. Cards predominate in practice, and as representa- tive of satisfactory stock records the various forms in Figures 25 to 30 inclusive are shown. These cards indicate various adaptions and in scope cover a fairly wide range of individual requirements. In further support of the stock cards, it has be- come very frequent and satisfactory practice to have 92 PLANNING AND TIME STUDY MATERIAL 93 M MATERIAL REQUISITION ^o. CHARGE CLASSinCATlON DATE DELIVER TO DEPARTMENT QUANTITY WEIGHT V DESCRIPTION SCHEDULE COST ACTJAL COST VALUE OF SCRAP 1 UNIT PRICE TOTAL VALUE UNIT PRICE TOTAL VALUE 'Jb TOTAL • NOTE: DO NOT USE THIS REQUISITION FOR MORE TVJ«N '-«■'■ ''' ASSIFICATION MATERIAL ISSUED SIGNED FIG. 33. MATERIAL REQUISITION M Materials and Parts Requisition No.. Quantity. Unit Cost Totid Value Factonr Order ^fo. To be used for Issue to Date Signed Received by_ FIG. 34. MATERIALS AND PARTS REQUISITION a local record with the material, known as a bin tag (see Figures 31 and 32, page 89). These tags show all receipts and issue and should agree with the bal- ^ ance shown on the master record. As further check on the records, it should be the duty of the Material Clerk to make an actual count Assembly Requisition For Materials and Parts Date- -W- Factory Order No. Name of Machine- For Dept. Customer Symbol and Pattern No. Name of Fart Quantity Price Amount form 209. 2t-ei2 These requisitions are not to be used for Supplies. Si^ed^ FIG. 35. ASSEMBLY REQUISITION (See page 95) of the material on hand whenever a low point is reached. Such an inventory will verify his figures and in the course of a year amount to a physical inventory taken possibly several times. These stock records are used to cover parts, as well as raw ma- terial, and also semi-finished articles which may be temporarily carried in stores. 94 PLANNING AND TIME STUDY MATERIAL 95 Requisitions from Stores. — The routine of the plan- ning department in handling an order is first to con- sult the stock records in order to determine if the ma- terial or parts required for manufacture or assembly are available. If the material is on hand the work then may be definitely scheduled against the equip- ment or, to use the summary term, it may be ** planned." If the work to be done requires the pur- chase of material or parts, proper requisition must be made in the purchasing department and the material requisition issued by the planning department. This or parts purchased, and then followed up in the man- ner described in the first part of this chapter. The actuating device for removal from stores is a ROUTING c> CARD OntarNo Date. ... _ Sjrm.uKlPBtu.N0^_,. Qty.onOrOm^ ^•ce Nunc _ , „ _. « MatcriaL ^ Drawing No....™. "•»5- .'ti-....- 'T^JS* 1 1 X: OrUUTIONS ITE «»• Mck. 1 2 3 4 5 6 7 8 9 10 11 12 i »■»»■<»■.. - - — »~ '• .^ — ..«.«».» WUa complMcd return thto evtf t« naantat Dept. | Job 'Ljtr Division Vame' ._ Hece Vo. Boia | Style No. A. B Drawing Vo. taBiit Size w.rar. om*non OE ---• • FIGS. 36 AND 37. ROUTING TAOS MOVE ORDER ORDER No. LOT QUANTITY PART No. MOVE FROM DELIVER TO DEPT. MACH. DEPT. MACH. REMARKS DATE. _TIME REC'D. FIG. 38. MOVE ORDER requisition is the preliminary to all other steps, and is sent to the stock room or stores department as the first movement of production. Figures 33, 34, and 35 are examples of the form of requisitions used. By the variation in their design, suggestions may be found for the requirements of any particular circum- stances the reader may have before him. Routing Material in Process.— The material or parts in process is frequently accompanied by a work tag which shows the routing and the description of the article or material, and serves to identify the particu- lar lot which is called for by subsequent move orders. A satisfactory form of work or material tag is shown in Figures 36 and 37. The move order is the slip which advises that a cer- tain lot must be moved to the next operation or de- partment, and serves as instruction to the trucker to make such a move. An illustration of a very simple 96 PLANNING AND TIME STUDY MATERIAL 97 o z o 0. I- o: Q. Ul q: ^ G Ul H U liJ n. u a: ct: 2 o z a cr o o CD en z o Q. C/^ Ul CC a. UJ Q I o ^- < OQ X UJ t-UJ O-o: o Z Q. UJ O 050 < UJ 2 o z o o z m en z (X o 5 Ul a o z X < cc O Q. Ul q: < a. z g I- o UJ cc (/) < O m 3 U.O O UJ o < X o >- cc o o < o 00. Ui I/) zz "- < Ul S 3 ui Q I- Oi UJ ^ oo Ul 2 < o a. Ul o OC9 UJ < < o 3 O o < a UJ 3 _i < > a. Ul a < O o i CO o 6 SPOILED OR DEFECTIVE GOODS Dept. No- Date- -191 Order No. Part No. No. Pieces Class Name of Part Operttion M which Cause Man's No. Signed FOREMAN BOTH COPIES MUST BE SENT TO PLANNING DEPARTMENT AT ONCE PLANNING DE PA RTM BNT Schedule Adjusted COST DEPARTMENT Replace Order Entered Labor Expense Material Total ] BIG. 40. DEFECTIVE MATERIAL REPORT but effective move order is shown in Figure 38. It will be noted that this card indicates the moves to be made from department to department and machine to machine within the departments, and also indicates the order number, lot number, and quantity, as well as part number, which requires moving. The plan- ning department makes out the move order and at the proper time issues it to the material trucker who moves the work to the next department for which it is scheduled. This describes the mechanism of material control from the viewpoint of the planning department, but there are further interests in material which bear upon production that the department must consider. Defective Material. — The element of spoilage or de- fective material is an important one to watch. In 98 PLANNING AND TIME STUDY MATERIAL 99 order to be properly informed thereof and to provide needed replacements for every piece of work spoiled, a report should be made out in form similar to that shown in Figures 39 and 40. These reports not only show what shortages have been incurred through spoilage, but they also indi- cate whether the damage was caused by defective ma- terial or was incurred in the processing. They serve to actuate replacing orders or, if not handled in that manner, they are tabulated to determine the average loss due to spoilage. The percentage thus developed is used as a pro rata increase over the apparent pro- duction order, which anticipates such shortages as occur through spoilage, and so on. Economic Use of Material. — Another important phase of the planning department work with respect to material is the examination of the demand to de- termine what size material gives the greatest econ- omy. In sheet metal work this is an exceedingly im- portant matter, especially in copper and brass manu- facture where the amount of raw material is large. The planning department should decide the number of cuts for a given part and from that the proper size of sheet to use. This same point should apply to bar stock, so that the crop ends will be reduced to a mini- mum and the purchases made in multiples of the lengths required and at the greatest economy. In one plant the crop ends which did occur were rerolled in a small mill to smaller sizes but, of course, greater length, and then issued again. In certain industries the gauge on material con- sumption is of the greatest importance. In knitting INTENTIONAL SECOND EXPOSURE 98 PLAiNiNlNG AiND TIME STUDY MATERIAL 99 I i iw I I'jaiijii a H S o 2 Eh O w o s o K O OS o E- o o o E- H W W ;^ E-« a o (IS Oh 6 s > < order to be properly informed thereof and to provide needed replacements for every piece of work spoiled, a report should be made out in form similar to that shown in Figures 39 and 40. These reports not only show what shortages have l)een incurred through spoilage, l)ut they also indi- cate whether the damage was caused by defective ma- tei'ial or was incurred in the processing. They serve to actuate replacing orders or, if not handled in that manner, they are tabulated to determine the average loss due to spoilage. The percentage thus developed is used as a pro rata increase over the apparent pro- duction order, Avhich anticipates such shortages as occur through spoilage, and so on. Economic Use of Material. — Another important ])luise of the planning department work with respect to material is the examination of the demand to de- termine what size material gives the greatest econ- omy. Tn sheet metal work this is an exceedingly im- portant matter, especially in copper and brass manu- facture where the amount of raw material is large. The planning department should decide the number of cuts for a given part and from that the proper size of sheet to use. This same point should apply to bar stock, so that the crop ends will be reduced to a mini- mum and the purchases made in multiples of the lengths required and at the greatest economy. In one plant the crop ends which did occur were rerolled in a small mill to smaller sizes but, of course, greater leno:th, and then issued again. In certain industries the gauge on material con- sumption is of the greatest importance. In knitting 100 PLANNING AND TIME STUDY mills, for instance, especially extreme care must be exercised not to run too heavy or too light cloth — that is, not to consume too much yarn per unit of cloth length or not to consume enough. It has not been easy to secure such a control of material consumption because of the character of the knitting operation. The rolls of cloth run to odd lengths and the only check on yarn consumption has been to ** perch" or measure every yard and then weigh and determine the unit weight. In the Avalon Knitwear Company, manufacturers of knit underwear, the control of yarn entering the cloth is obtained by the ingenious device shown in Figure 41. This device consists essentially of a counter, but its attachment— a matter of considerable inventiveness — gave the chief difficulty and is the reason for the success of the device and its display in this volume. The device measures rolls of equal length. If the yarn is running right, naturally the rolls of the same cloth should be standard, so the weighing of the rolls as they come off th€ machines effects a check on the character of the cloth. As the company is particu- larly careful to maintain a garment of uniform weight, it has been possible by means of this pro- cedure to insure standard cloth and hence a standard weight product. Recapitulation. — This chapter has considered ma- terial as an element of planning in every important detail from the first estimates of requirements to the purchase and purchase follow-up and final disposition. It has discussed the matter of adequate stock records MATERIAL 101 and the operation of these records by means of requisi- tions, etc. It has explained the method of moving material or parts in process through the agency of the planning department. And it has concluded by indicating the wide possibilities for economies in the purchase and use of material, which are within the reach and authority of the planning department. CHAPTER V EQUIPMENT AS AN ELEMENT OF PLANNING Machinery and Production.— The physical work represented by the vast production of industry today would be thousands of times beyond the capacity of the world's population, if attempted without the tre- mendous mechanical aid of machinery. The advance from the rudimentary tool to the modern highly effi- cient automatic machine has multiplied production im- measurably, and has contributed in a wonderful de- gree to the comfort and wealth of the age. The result has been that manufacture has become essentially a machine process until now the machine is the real in- strument of production. The capacity for production, then, is a matter of machine equipment, and hence, since planning is es- sentially the manipulation of this capacity to meet demand, a detailed knowledge of equipment is the basic necessity for its operation. This capacity is often measured in approximate units of production, as represented by the *' barrel a day" output in the cement manufacture, the dozens of garments in the clothing industry, and various other arbitrary weight or volume standards, such as the ton, pound, bushel. Frequently the capacity is indicated by certain units of equipment— such as the spinning spindle in 102 EQUIPMENT 103 EQUIPMENT INVENTOKY DescriptioD Machine Ha Maker Locatioa Size Quality Purchase Price ^*« Motor Na Freight losullation Purchased from Appurtenance Date of Purchase Total Coet • I>E»rrHfI»TtON ■] Yaw Amount Y««. Ymt V.M- Atneunt Yaw Ymt PLANT INVENTORY AND DEPRECIATION S«TI 0«PT NAM« or UNIT " NUMBER CSTIMATCO Lire rrrt nr DESCRIPTION WITH PARTICULARS OF FITTINGS . — MAKCII'S MAMK FROM WHOM rURCMA^CO D*T( rUKHAUD BATE imtAiia oKiaiNAt, covr INSTALLATION COST » TOTAL COST FIG. 42. EQUIPMENT INVENTORY RECORD (fRONT AND REVERSE) the textile industry — but this is at best only approxi- mate, as illustrated by the textile industry, for the spindle production of yarn of one size over that of another in certain textiles may vary as much as 300 per cent. So such designations of capacity, while suf- ficient for a general rating of output, are almost vaUieless for the purpose of the close control of pro- duction within that capacity which is required for planning. Inventory of Equipment.— For effective planning, it is necessary to know in fine detail the composition of 104 PLANNING AND TIME STUDY 1 • INVCMTOnT ifMCMiNC nccone ff« _ PUROMAMD FKOM D«Tt L"*OAT»C'^ OOMWTION 0*TI t MtOHlPTIOn II PuiiOH*«EO fmom 1 = AMOUNT ij ^ li 1 1 — I. 1 I — }■ 1 i- i- 1 1 1 -4 1 1 — " 1 \^^- -^\ REPAIRS ANC > MAINTENANC ;6 CHA RGCS OCT MOV. oco. Tor*L ANNUAL OCPRCOIATlOn UM IHT i IMI >.•* IMt >M1 >Mi IMt >M< 1M UM >M| IMI IH* UM IHI IMt IMt — — - - - ; FIG. 43. INVENTORY MACHINE RECORD ( FRONT AND REVERSE) EQUIPMENT 105 this capacity, and to have the various machines item- ized and measured by a complete and exhaustive in- ventory and rating. The process for such an inven- tory is similar to that required for an appraisal — in fact, the records of an appraisal are usually in such a form that they may serve this purpose. The inventory should show by departments every piece of equipment, with a complete description of its ■ATI ftcracc; OtSCRIFtlON INVOICE FREIGHT EXTRAS PULLEYS MAKER BELTING BOUGHT Of SETTING UP INVOICE Noi INV. DATE DATE INST COST OWGS LOCATION COST PATTERNS MATERIALS SHOPPING ORDER No. SER. No. labor" DATE OVERHEAD TOTAL •. DATE Dumt> CIATION ..tSCK VMVt 1 FIG. 44. EQUIPMENT INVENTORY RECORD (3 X 5-inch card. Reverse is shown at right) type, condition, capacity, and location. This informa- tion should be placed on record in some such form as that shown on the cards in Figures 42, 43, and 44. On the card each piece of equipment is entered, and described in full detail; the history of its subsequent repairs or movements is also kept. The card may also be used to show the pro rata depreciation for the in- dividual machine, as shown in Figure 44. The total of the depreciation thus shown should balance with the ** Reserve for Depreciation" account in the ledger. In much the same manner, the total value of the equipment itemized on the cards should check with the various equipment or machinery accounts in the 106 PLANNING AND TIME STUDY F>attern Record Card RACK Tieit SHCLF ^ATTCRN NUML . • OeSCRiPTION WeiOMT OF CASTINO. MOUUOINO TIME NUMBER OF FUASKS. NO. C'SrO'S IN FLASK. RATTERN DATE MADB„ CONDITION^.. NUMBER OF RIECES- NUMBCR OF CORE BOXES. KG. 45. PATTERN RECORD CARD PATTERN RECORD CARD PATTERN NO. NAME '• r» RAWING 1 >ATe MO MADE BY c TTPt WOOD OM MCTAL MO. OP LOOMI mtCKS * NO. or com aoxca RKcaivco rmot* ■ Ul INO rLOOM • • CCTIOM RACK • HII^ DIVISION OUT TO OATI IN OUT TO OATB IN OUT TO OATC IN 1 • FIG. 46. PATTERN RECORD CARD EQUIPMENT 107 JIG RECORD CARD JIG NO. .. TYPE OPER'N NO. NAM^OP PART PART NO MATERIAL STORAOE LOCATION DCPT. arona • HACit aMCLP oiviaioN OUT TO OATB IN OUT TO DATE IN OUT TO 1 OATS IN >•>••>• ••• • • • . —r -■- : ■ .. ...••>**r- ._. ■■^ ^~ ^ ^^^ FIG. 47. JIG RECORD CARD ledger. The next step in carrying out the inventory of equipment, is to complete a list of all accessories used in conjunction with the equipment or required for hand operatives. By accessories is meant such items as jigs, fixtures, dies, patterns, flasks, bobbins, and small tools such as reamers, drills and cutters. This list of accessories should be recorded in a suit- able file, arranged conveniently for reference. As ex- amples of forms used for this purpose, I have shown, in Figures 45, 46, and 47, cards used for pattern records and for jig and fixture records. The pattern card shows the location of the pattern in the storage racks, and gives a history of the move- ment of. the pattern to and from the foundry. It also indicates the core boxes used, and the date of the making of the pattern, its condition, and so on. The jig record fills the same purpose with regard to jigs, 108 PLANNING AND TIME STUDY EQUIPMENT 109 and is an extremely helpful file of information for reference. All the records describing the machine cards, as well as the pattern records and the jig and fixture files, are simply part of Jhe general program which must precede the actual planning, and which brings to card-index form all information regarding the quantity of equipment and its accessories. Balance of Equipment.— In addition to the mat- ter of inventory, there are other considerations with regard to equipment which must be taken up as steps preliminary to planning, such as the balance of equip- ment, its arrangement, and its capacity or rating, each of which will be discussed successively in this chapter. By *' balance of equipment" is meant the maint^ nance of an equal capacity in all operations, in order that production may not be congested but flow uni- formly. The **neck of the bottle" is the restricted part, and determines the rate of flow; and in produc- tion parlance, the *'neck of the bottle" means any point in the processing where equipment is inade- quate—or where the rate of production is less than that of the operations which either precede or follow. Since this neck governs the production, it is necessary to examine the equipment ahd measure it against the required production to determine the possible exis- tence of a congested condition in the particular plant for which the planning design is intended. This con- dition is more prevalent than is supposed, and it is so frequently encountered— even if in a minor degree that it may be said to be general. The method of ascertaining the condition of equip- ment as regards its ''balance of capacity" is not diffi- cult. It may be described as follows: The line of manufacture must first be analyzed to each of the operations required to convert the raw material into the finished product, as will be described in greater detail later in the chapter. After the operations are so listed, the estimate of demand, as described in Chapter III, is taken, and the quantities to be produced are represented against the operations. It is necessary to determine the standard or unit time for each operation in the manner discussed in a later chapter on **Time Standards." The quantities to be produced appearing against each operation are then extended by the unit time, which gives as a result an aggregate of time required on each operation of the entire production. These times should then be summed up, and if uni- form production is to be maintained the total time shown for each operation or combined against each type of equipment must be in equal balance. If the times so developed are not in balance, additional equipment or improved methods of operation to in- crease production, will be required for those places which are shown to be out of balance. ''Balance" in a Textile Plant.— The matter of bal- ance is more vital in connection with profits than flight appear at first examination. As a case in point illustrating the really crippling character of the con- dition and its effect on costs, I give the following de- tails in connection with a textile plant. The processes in this plant were the customary ones 110 PLANNING AND TIME STUDY EQUIPMENT 111 of yarn preparation and of spinning, and the ultimate combination of yarns in the finished product. Stand- ard times were developed for each operation, and it was observed that the finishing departments had ca- pacity considerably in excess of the spinning depart- ment which was also exceeded by the preparing de- partment. Part of the excess capacity in finishing could be at- tributed to the variety of demand which required certain equipment for its production when it came but which was not sustained in volume sufficiently to keep the equipment busy. Most of the excess, how- ever, was due to the fact that the spinning produc- tion was below the normal finishing capacity. It might seem that such a condition would be im- mediately apparent to any management and would be remedied in some manner, but such was not the case. To outward appearances, the finishing department was everlastingly busy, and the true condition was only developed by careful study and the analysis of the entire spinning production to time demand against the finishing equipment, when the rating of the equipment showed this to be considerably under finishing capacity. As a remedy, in this case, a premium system of wage payment was introduced in the spinning room with the purpose of increasing production and so making more yarn available for the greater capacity of the finishing departments. Changing Conditions Affect Balance. — This balance of equipment is a condition that may be upset after its first establishment by subsequent changes in de- mand or in the material market. It should be the constant concern of the planning department to ex- amine the effect of such changes and to adjust the capacity according to the extent of the changes when necessary. As an example of this change in conditions I cite here the case of a knitwear plant which recently came to my attention, in which the balance of equipment had been well maintained for years. Certain of the cloth used was of a tan color known as Balbriggan, and was knitted from a dyed yarn. It happened that the dislocation of the dye industry by the war had made it inexpedient to purchase this yarn, and cloth made from white yarn was dyed for the same purpose. Just what extra load this put on the bleaching and dyeing department unfortunately was not considered, with the result that this department fell behind in production 10 to 15 per cent and was, to that extent, out of balance with the knitting department and the finishing departments. An examination of the conditions in the bleaching and dyeing department revealed many causes. Not all of them were connected with equipment — some were matters of organization. The human factor in the case was arranged for, and the actual lack in capacity was then confined to the extractors used for *' dry- ing.'* Arrangement for greater capacity was made at that point, and the production of the department was carefully scheduled until the volume gradually in- creased and finally proceeded at a rate equal to that of the other departments. I mention these specific cases because I believe that 112 PLANNING AND TIME STUDY EQUIPMENT 113 ill' they will bring home vividly the importance of the balance of equipment — or capacity — in its bearing on production. As has been seen, lack of balance is not always due to actual deficiency in machinery, but may be attributable as well to incompetent foremen, the inertia of operatives, or faulty operation of existing equipment. But whatever the cause, the effect is serious, and planning would become a blind and futile effort if proper balance were not secured for the flow of pro- duction coming under its control. It is therefore a necessary part of the preliminary work of planning to ascertain the condition of equipment as regards its balance, and to arrange, whenever necessary, for mak- ing equal the capacity of the various parts of that equipment. Arrangement of Equipment. — The next important matter in regard to equipment, is its arrangement — probably no other factor has so much to do with the fullest use of the investment in equipment. There are essentially two mai*n plans according to which equip- ment may be arranged in order to meet productive requirements, altlifough in many plants the plans will be found at times to have been merged. The two es- sential arrangements might be called: Production- reenter Arrangement Unit Arrangement The production-center arrangement calls for the cen- tering of machines of the same type and capacity in separate departments or locations. It means the massing of similar equipment at definite stations, with the object of concentrating the productive capacity in order to meet the operating requirements of de- mand with the minimum of machine inactivity and the greatest output per machine unit. By this method, the demand on production is combined and routed to meet the fixed basis of the machine layout. The principle of the unit arrangement is diametric- ally opposite to that of the production center plan. It provides definite channels for complete processing whereby the machines are located in succession for the sequence of operations, and these channels, or units, govern distinct currents of production. That is, the demand is not merged or interchanged over the equipment, but is divided into currents that flow separately through the several units, in each of which production proceeds uninterruptedly. Choosing: the Right Method of Arrangement.— The two methods are markedly distinct, and the selection of either one or the other must be made for a given set of manufacturing conditions if the best success is de- sired. It is of course equally essential, with respect to the .form that the planning system shall take, to examine a particular manufacture and determine its method of operation along these lines, for the ar- rangement of equipment has an important influence on the design of the system. It frequently is the experience of consultants on planning methods to find that a company will have made disposition of its equipment according to that one of these two possible arrangements which is the niore poorly adapted to its needs. At such times, it l>ecomes the function of the consultant to determine 114 PLANNING AND TIME STUDY whether or not the general conditions of age, obso- lence, and interruption to production, justify chang- ing to the other and more profitable method As ex- amples of such experiences, I give the following two cases, which possibly may bring home the importance and value of the point under discussion. A textile machinery plant producing a line of looms, draw frames, and spinning frames had ar- ranged its equipment on the unit principle. There were departments which were utilized for certain definite items in the line, such as the looms, the draw frames, and so on, and which were used for no others. The equipment provided was ample for the maximum demand imposed by both the volume and the variety of the work. But the actual processing, or operation, of these dif- ferent items in the line which was accomplished by these units, was similar to the point of identity. For instance, there were drilling and tapping of cast if on parts, turning of cold rolled steel, and shaping and milling of soft steel, and so on, in each of the units. The result of the arrangement was a heavy . invest- ment in equipment with a low ratio of activity. Eec- ommendation for a drastic change — i.e., to the produc- tion-center arrangement — was made, but the manage- ment in this case, while admitting the economies of the argument, were not disposed to make the change. This cautious decision was in a sense justified by them on the ground, not of the expense of rearrange- ment, but of the disruption to their organization and the consequent need for an entire readjustment. Un- doubtedly, if the same managers had Just been start- EQUIPMENT 115 BEFORE FURNACES nji n n n n i finnn DODDODDO CAMBERIN& CAMBERING STORAGE SPACE ANNEAL ING OVENS ASSEMBLY TABLES an an an ]i ]= EXPERIMENTAL UNIT Sketch Showing Original Layout of Equipment (Not to Scale) Al-TEK 1— 1 %-to JUL i^v JL 4i M- /*^ /^ n 'M- MaSL n 2L /> ^1 X4' i^ ii- /> M7 at a£.(lL /»*■ 7J ^ /£L SL± iZZ :AS. ^ diS Hi. A^fi > ■/#g •ffi •Zll ^ aU p*L *^ *^ W^'i^C tf^a •n »%i ■Mi& ••*f ir^iA -ii^. •»•> 0i« f ■•*$ ^g-i •a^ «^ ■*fF, 4'^ I FIG. 49. MACHINE DATA SHEET equipment as regards profits and planning. No two plants have the same manufacturing requirements, but for every plant there is an arrangement of equip- ment best adapted to its conditions. This must be considered and, if possible, must be provided as part of the groundwork of planning. Capacity of Equipment. — So far, I have discussed in this chapter the inventory, the balance, and the ar- rangement of equipment. It is now necessary to con- sider in further detail the matter of the capacity of the equipment. Every machine should be detailed on a record known as the Machine Data Sheet, as illustrated in Figures 49 and 50. This sheet gives every detail con- cerning the machine — it leaves unexplained nothing concerning its physical make-up. The data sheets 118 PLANNING AND TIME STUDY MackteaN^..^.^ j9^..: JMachtaah l.m*^'!.' Jl*ilL.P9fSI^ . .Lacatiaa Hrpt . ^3- 71 I^pa . llakar'>Nan« Vf FAt^AiCC JW^A. SarialNo? _ >>« 1 tmm t / f J * 3 1 ^ "^ - b. (— »- «f^ I Si"'' ^v^ ')-^, ^>ff ^ f^p^:: 8»M«* In PMt ft MlmiM PMtft la inclM* 1 a _i_ A. ?^ VU-i fA lii^ ' Hi Irlt ^, pttfltA. ^piAi 1^ H _ H ♦ P t — t 1 ,} /A 4 »• J ufl07 tf aiaa?. "^ « ~2 / • ,9 Jt^ •/ JLm« 4 A/? i» « .a« .A I'fi » ,t 1 m A ■ ( 1 — ,. _ _ _ ■M m r FIG. 50. MACHINE DATA SHEET show, in the case of machine tools, the spindle speeds according to the various combinations of cone and back-gear arrangement, and they also show the range in feeds according to the different positions of the gear shifts. The data sheets are used to instruct the operatives as to what cone and gear shifts to use when the proper speed and feed have been selected. The actual rate of production or capacity is matter of time and will be discussed in Chapter VII on **Time Stand- ards,'' but the complement of this information is the description of the machine as shown on the data sheet. The next requirement with respect to planning and equipment, is to secure complete lists of the opera- tions required from the equipment in order to pro- EQUIPMENT 119 duce the articles in the given manufacture. These lists are termed Operation Records; they are represented in typical form in Figures 51 to 56 inclusive. The operation record is developed individually by parts, by semi- or sub-a;ssemblies, and by final assem- blies. For convenience in filing, it shows the items by number and gives a full description by name. It then shows, in the case of parts, to what articles in the line the part contributes, and gives a complete list, in sequence, of operations which are required to finish the part or the assembly. The card shows the department in which each op- eration is performed, and the number or symbol of the machine or machine group on which the operation is carried out. It further shows the number of any ac- cessory that may be required in conjunction with the OPERATION RECORD wnutNi. O^aNATION •«.i« wmmmmnmm^ MMMDM*. «nw »im ~AS~ i 1 * ,/ - _ 1 no. 51. OPERATION RECORD 120 PLANNING AND TIME STUDY EQUIPMENT 121 CLOTH OPERATION AND STYLE CARD KNITWEAR CO. YARN CLOTH NO. OPER. NO. OPERATION NAME EQUIPMENT TIME PER 100 LBS. L ^,^— r-Nw-— .^^ -1 ( -^ '"-"^ — -* — ■ — ■ * 1 ] 1 — -n 1 I STYLE W6T. PER DOZ. STYLE WGT PER DOZ. STYLE WGT. PER DOZ. i FIG. 52. CLOTH OPERATION RECORD machine to do the operation. The card np to that point is descriptive, but from then on it becomes quantitiv^ and shows in two headings the time to pre- pare for an operation, or the setting-up or taking- down time, and the time or actual rate of production in terms of hours and decimal hours. This description explains the scope of the card and the detailed information required for its completion. The work of preparing these cards is very great, and should not be minimized. In the average plant, there are very few records available for the purpose; con- sequently the preparation of the operation record is usually a pioneer undertaking and a job of consider- able extent. The big task is not the compilation of the list of operations and of the equipment on which they are done; the decision on the working conditions, or the standardization of them, involves the greater ef- fort and is indispensable to the scheme as a whole. Constant Experiment Necessary. — Experiments must be conducted to determine the combination of cut, feed, and speed for each operation, and the selec- STANDARD OPERATIONS Material ..... ..Sjmbol No. UMdoa.. .J»c». foe One Mch ..Draw No... Date Compaed OPERATIONS Bvc. la* T IME LIM ITS REMARKS -"l '"—I p 1 , "■ r— ^"■~ ■* Q 19 20 J> "" '"^~ ' ' ^ ' — ' 1 '' — ^ FIG. 53. STANDARD OPERATION RECORD tion and standardization of the small tool required therefor. In metal-cutting, the questions of cut, feed, and speed have been studied thoroughly. The first treatise on the subject, by Mr. F. W. Taylor, was fol- lowed by other investigations of value. As a result of these studies, the principles of metal-cutting have been well established — it is merelv a matter of detail to develop the information for given conditions. Nevertheless, changes are constantly to be reckoned with, for the cutting power of high-speed steel is al- ^vays being increased and must be taken advantage of hy increasing the standards. In other machine pro- 122 PLANNING AND TIME STUDY EQUIPMENT 123 o o l1 I o d OPERATION RECORD DATF PART NO ORAWG NO NAME OF PART MATL. UNIT OCPT NO Ot* HO OPERATION No. Of M*CM MEN No. MINS SO A MINS SPtCUL TOOLS OPERATION RECORD ASSEMBLING p^TF CLASS TYPE SUE DRAWING No. UNIT Otrr OPt« No MACH 0»>t RATION CROUP A mm No. Na.orr GROUP No. TITLC TOOLS •Sc^ s s.». Mean Mln. SO* 1 Mo»n Mbt. 1 * APfltOVCO BY DATE 1 APPROVED BY DATE PIGS, 55 AND 56. PART AND ASSEMBLY OPERATION RECORDS cesses the limits have not been so sharply set, and there is a wide field for study in almost any plant to determine the capacity of the equipment and the rate at which it is economically most productive. As an instance of this possibility of study, I wish to mention briefly the case of a woolen mill in which the output from th« carding machines had for years been accepted as their physical limit. The en- 124 PLANNING AND TIME STUDY gineer newly in charge of production saw no reason why the speed could not be increased, and experi- mented at length along this line. The production from the carding machines was a function of the speed of the doffing roll, and after considerable study it was found this production could be increased with- out impairing the quality of the -sliver or roving, it was done, and the standard was set accordingly. This is typical of the work which is done in con- nection with planning and the study of capacity which is a prerequisite to planning. It shows that the initial gain from planning is not alone in the mechani- cal control of processes of production, but also in the improvement of conditions whereby output is stand- ardized and made really commensurate with plajit capacity. Accessories and Small Tools. — In the matter of ac- cessories, or jigs, fixtures, and so on, and small tools, there is also a big field for improvement and stand- ardization, and planning cannot be said to be com- plete until this work has been satisfactorily done. The standardization of small tools has been carried to a fine degree in many cases. As an example of such Avork, the sketches shown in Figures 57 and 58 are pre- sented. The design of jigs and fixtures is vital to manufac- ture — it is the very pith of interchangeable-parts man- ufacture, and yet frequently managers will slave and drive to get production through when poor accessories in the way of jigs and fixtures will destroy their ef- forts. The handling of small tools and fixtures, and their dispatching at the right time to the machine EQUIPMENT 125 BOBBING TOOL -^»fi^ T :^m -71 T STRAIGHT FULLEP //• t • t u T a: CROOKED FULLER 3 |Vi E' /6- . II' 33— (|h ^ FRENCHMAN // E • r GOUGE Sl -e <5 DiAMOMD POINT /6:i % "T if* ^ FLAT CHISEL AM T 8f "T 1 CAPE CHISEL ^ T If „. ROUMD NOSE CHISEL 1 f STANDARD A\R HAMMER TOOLS FOR BOILERMAKERS FIG. 57. EXAMPLE OP THE STANDARDIZATION OF SMALL TOOLS A page from the book of standards issued by the Atchison, Topeka and Santa Fe Railway Co. to its shops 126 PLANNING AND TIME STUDY EQUIPMENT 127 II STANDARD LATHE TOOL ^ <•' Ato/e : These foo/s al/ Furnished sf'raight Grincf right or left OS necessary 11 STANDARD STRAIGHT THREADING TOOL SYMBOL Size . A ' /02 ^"x /'xd" A- /03 •^•XZ-^A^^' A ' 104 ^'x /^'xSH" A - /OS %'x /i^z'xd" A '106 ^'x /iysi" A - 107 V8-X />i"x ,0- A - /OS /' X Z-x 12" A - /OS /^ X 2' X 14" A - //O 2*x J-x IB" 600^ SVMBOL SfZE I' 102 h-xJ-xS" 1-/03 Wxl^xSHi'' I '/OS ^'x/J^'xS' €5 STANDARD R/GHT THREADfNG TOOL SYMBOL SIZE J- /02 ^' X /-x S^i" J ' /OS ^/S'x t^'xS^" J ' /05 jj>"x./4'x9" machine: tools High Speed Steel T8 97 Hofe: Toots to hi orderect according to symbol number PIG. 58. STANDARD MACHINE TOOLS Courtesy, The Atchison, Topeka and Santa Fe Railway Co. TOOLC :ard -, JBtmiU No ,.^ TOOL DCLIVCKY CARD "i—W— ., „ „ , ^. nmi«t ., _ . Oprrtffum t9o /)^. H^ Mek No \ _ 1 -rn^F* •• — — — 1 ! 1 1 A 1 h ' • 1 1 • 1 . FIG. 59. TOOL RECORD CARD FIG. 60. TOOL DELIVERY CARD requiring them, is an important part of the planning department's work. The issue of tools should be gov- erned by the time-ticket or work-order, which goes to the department board or to the operative himself. The tools should be listed on a form similar to that shown on Figure 59. This card indicates the part using the tools and the operation for which the tools are required. It also shows which tools are left at the machines, and which are delivered from the tool room. A copy of this card is on file in both the planning de- partment and the tool room, and when the planning department makes* out the time-ticket or work-out, it also makes out the Tool-Delivery Card, Figure 60. 128 PLANNING AND TIME STUDY TOOL RECORD U*CO OM CATAUOa NUMBIR* USKO OM ^ART NUMBRfia OPERATION ' • - . — FIG. 61. TOOL RECORD The tool-delivery card authorizes the move man to deliver the tools to the proper machine, and to collect them when the job is over. The tools are given to the operative when he delivers his check, he is then re- sponsible for them until he returns them, at which time the check is returned to him. The tool-room foremen, before placing the tools on the shelves again, must inspect them and make repairs when necessary. Another very helpful record in connection with the use of accessories such as punches and dies, is shown in Figure 61. This card, while developed for a stamp- ing company, in principle is applicable to any other manufacture in which the setting-up and taking-down time of a tool is a big factor in the time of produc- tion. This card is a cross-index. In this particular installation it shows for every punch and die the various items or parts in the manufacture on which the particular tools there shown were used. EQUIPMENT 129 This record was of help in reducing the time of the presses required for the setting up and taking down of the tools, for when a given punch and die were in the machine, the endeavor was made to extend the run as long as possible by reference to this card, which told just what articles might be processed. Orders for these different articles were combined, and produced with a minimum of changing. Recording Machine Activity. — In this discussion, so far, I have considered the various phases of the work which precedes planning, from the general matter of equipment balance and arrangement up to and includ- ing its inventory and the rating of capacity, includ- ing the listing of accessories — such as small tools — and the handling of them, as part of the planning-de- partment routing. The next important matter re- garding equipment is the necessity of keeping it fully active and of having a summary history of its activ- ity. This ** history'' should be based on reports cov- ering the daily record of the machines, with respect to their idleness and their activity. This report should show in detail the causes for idle- ness — or better, the non-productive periods. As an il- lustration of such reports, I have shown in Figure 62 a daily report of a cambering machine in a spring company, which shows the history of each machine as regards its productive or active time, as well as the distribution of the non-productive time for setting- up, repairs, **no stock," and miscellaneous causes. These daily reports by machines are combined and posted in total to a summary sheet, shown in Figure 63, which gives a very interesting and valuable record 130 PLANNING AND TIME STUDY EQUIPMENT 131 h i M ! 11 1 !: I rE _ 191 1 1 1 ...- .„.,.. .. 1 il { g i " il: U 1 5 SHIFT < 1 " i " i ! o w H > U o Q (M d l-H Em 1 1 1 1 1 ( 1 f M i»f ^ N s ■ a a ■ a a , a z c . K i « a a a a X « in ■ a a 9 ' a a g " - " s a >■ ■ • * • > s a e s 9 < 9 3 s Ul = s = = s s s 'J .t < M « — '8 ' i\ II " _ H ¥. . _ H z S s '- _ a !ii '- : s I 5 ' a » a fe ° a s s = = = < » s I I Z 3 -. . - . « - - »■ ) ► • - "• - - . - - m - « a - M > . - C " i \A1 i JJ 1 - y i 1 J r • § H O -si s O 1^ CO 132 PLANNING AND TIME STUDY EQUIPMENT 133 'I f • PRODUCTION DEPARTMENT DAILY REPORT MACHINE ACTIVITY REPORT DEPT DATE 11 s H I ■ • Z Q K z < > 6 z MISCKLLANCOUS ' _ • ■ FOREMAr^S SIGNATURE , no. 64. DAILY REPORT OF MACfflNE ACTIVITY of the operation of the machines. It will be ob- served that this summary report shows the inactivity due to **no stock/' which means the hold-up due to lack of material. This was a matter which the planning department had to consider carefully; the department had to explain any delay or inactivity resulting from lack of material. Consequently, the report served to measure and control the planning department's efforts. Another form of machine-activity report is shown in Figure 64; it may suggest applications in individ- ual cases which the preceding forms do not. Such operation reports are the bases of costing by the machine-hour method, as they furnish the informa- tion concerning productive hours which develop the *^cost per productive hour." As representative of a combination of a machine- activity and cost record, the form shown in Figure 65 is presented. A very interesting device, known as the accumulator, has been developed, which is illus- trated in the photograph in Figure 66. This device records the actual producing time in hours and min- utes, and mechanically gives a record of activity which saves clerical labor and at the same time sup- plies the needed control. Of course, any unforseen cessation of machine ac- tivity is an interruption to production which must be reported to the production department, either by the production clerk local to the department, or by the foreman of the department. This report may be transmitted by telephone, telautograph, tube system, or messenger. It is preferable, of course, to make it a matter of record, and for this purpose the form shown in Figure 67 may be used to advantage. Functions of Maintenance Department. — ^It is the function of the planning department to maintain standards of equipment and its activity, and hence the matter of maintenance comes under its jurisdic- tion. Maintenance of equipment is best provided by a separate department working under the planning department, and the functions of such a department 134 PLANNING AND TIME STUDY HI i: ili 1 1 1 tf) r — MACHINE OPERATION RECORD MONTH OF 191" oc E i z ^ d z tu 2 S^ ^ !«' 1 = 1 X U < s o d d z z z c z d 2 d z L 1 d z liJ v> ^ r 1 ^ E Si -1 ... z \u 5 - nr 1^ h X z -J o odd z z z d z d z : d ( i /j^L " ^ ^ ^ ■■ M z j; ( 1 i\ bj ( z ■ X i ^^ ■* Z o o: > d < 2 z 2 i 6 6 : z z d z d c Z 2 i « c 3 "'^ — c 1 : e z ; ff a: O ffl 3 il o o (A Ui o < z o o u X o Ul J ai. X bi O bi ^^ K Z K UJ 0. o -1 r, if UX bjki az zo OO ^^ • < 0. d z d z d z d z d z d z d z 1 d z Ui z I o < 2 a: UJ 0. -1 UI 1 q: O o: UJ 0. o 1 < vi i 1 < J o (0 3 -1 < o t- UJ o 0. (/> UJ O a < z o o UJ X U. CC I UJ 6 UJ a! X UJ UI cc it K UJ z UJ a. >- w o o -1 < i UJUJ KZ t- OS o w H m o o c < i-H H O i -4iU iU iH !i»« m 411 * t ii iU^illi )miujiij»v <)i^li )>tnJU;>)^{ ^jl aiu ^^a<3 n^^* " FIG. 70. SCHEDULE FOR CONSTRUCTION CONTEOL MECHANISM 147 Figure 69. This chart, developed by C. E. Knoep- pel,* shows graphically the status of each order, not only the amount yet remaining to be done but the discrepancy, if any, between the accomplishment and the schedule. With graphs such as that shown in the figure for every order, the complete file of graphs reflects immediately the status of all unfilled work and furnishes a control of the schedule there- by, by indicating any departure from it. Advantages of Exact Schedules.— Schedules are made in advance, as has been stated, frequently for months ahead and often to the date of the estimated completion of the work to be done, as shown in the case of a building construction in Figure 70. Frequently, sales hinge upon the matter of deliv- ery and proposals must be accompanied by fairly definite statements as to delivery. This is particu- larly true in manufacture where the units or prod- ucts are large and the actual orders comparatively few. In such cases, a very successful manner in which to make proposals as to delivery is shown in Figure 71. The sheet shows the estimated time re- quired in each department, and the method of graph- ing as indicated determines the approximate deliv- ery date and furnishes to the planning department the outside limits as to time within which it must produce. Routine of Daily Planning.— The discussion so far has considered the matter of general scheduling, but the actual routine of the daily planning of produc- * Installing Efficiency Principles, by C. E. Knoeppel. The En- gineering Magazine Co., New York. 148 PLANNING AND TIME STUDY DRAWING. PATTERN AND SHOP DELIVERY ESTIMATE DATE. SfeCIFICATION No.. PROPOSAL No.. ORAWINQ No.. GENERAL DESCRIPTION. FLAT COST OF DRAWINGS BURDEN TOTAL COST OF DRAWINGS FLAT COST OF PATTERNS BURDEN TOTAL COST OF PATTERNS REMARKS. Engineer of Construction NEW DRAWINGS NEW PATTERNS DELIVERY TABLE-ONE MACHINE REQD. .ManAOCR or WOMKS. FIG. 71. DELIVERY ESTIMATE CONTROL MECHANISM 149 tion involves far more detailed and exacting methods for success. The work represented by the orders ahead must be reduced to time by means of the operation cards described in the preceding chapter. These cards showed the detailed sequence of operations and the rate at which the equipment produces on each opera- tion. So when an order is to be scheduled for pro- duction the operation cards are consulted, the quan- tities on the order are extended by the unit times shown on the cards, and the total time requirement of that order is computed against the equipment. The equipment has been symbolized to groups of similar machines and the demand in time is applied against these groups or individual machines. The manner of representing this demand, or the mechan- ism of scheduling, may be done in one of two gen- eral methods, that is: Graphically (by charts) Mechanically (by boards) Both methods will be discussed and illustrated and several examples of actual installation will be repre- sented. Planning" Sheets. — The graphical method involves the use of planning sheets such as shown in Figures 72, 73, and 74. These sheets are the vehicle by which the scheduling is carried on. The time required for producing the orders posted on the sheets is extended at right angles to the vertical lines which represent time, as shown in the figures given. The method of using these sheets will appear later in the chapter. 150 PLANNING AND TIME STUDY CONTROL MECHANISM 151 I: 111 O J c z Q Z hJ ^ UJ Hi UJ I 0) o z z z Q. ^ ■* J 3 : — -• — — — 1 2 1 I z Q Z kJ UJ UJ 1 Kea (ft " - M - 1 _ - 2 ■ • a >• • < • ss: a ^^ ^^ ■■*■ ■MM "~ 1 M I - I ■ ft — - S i 1 - ,1 _ — 1 - e i h f i ■ a ■ a >- " l: m - - !l » - |5 ■ Si- , ll UJ : m - )'• r ID z z z Mi |— I \ '[ m m m > • < • Zaa o <• III 5 - _. ^ ["" MM 1 . _ ■ " * , 1 r — 1 it 4 Q. a a ^^ ^~ ■■"■ M^ ^>M ■ 1] si' , 1 V: -~— 11 1 W o« IJ a« 3 « t a ■ ■ t ^H ^^ ^^ ■M* ■M ■ ^1 • !^ d Tun ■"^ -* -" [— ^ — 1 r-^ p M ■<^ ■V. /">>, rt 1 * \ «i j ( i J SINING SHEET MONDAY ) 1 -< 7 1 i » : MM., 1 » 1 , ( S 1 • c i\ J i 1 \ i ' ' 11 1 !• I i J < \ i i -J ; D - i J u "~" "" A i iT >i ■ p i t 1 = <=, w ■"■^ "~ ■^ i ( :• ^^ r"~ T iS ) & ^^ j 1 1 1 < 8 9 1 \ 3 1 S h s s ■"""it T -r Im L • e - " — 5 • - .. r V "^ r 1 ! / ' I \ t \ i ) i \ , 1 \ 1 — • s c ' z z z < CO Hi 152 PLANNING AND TIME STUDY CONTROL MECHANISM 153 _ - f^ ^ ^ g : . X c/5 JE > •[— : ^B Z -t= (t« "H"" — 1 — — ' ■ CU li 1 i 1 1 1 1 1 1 1 M Hi — ^ ^ m — =~~p5 :::"::::::::) 1 T ) ■\-lll J ki' i X V , ._ N hf y !-;l^ T _) h I 1 ^ -+- \ z\ 11? ' 5= ■ .iHL.., -_M ( 1 •- M * 1 II X J c 1 1 j (a 3! u 4 « ,....--., — s _A • • u H _J CO Planning Boards. — The mechanical method, or board representation, of planning or scheduling has had big success. Various actual examples will serve to illustrate it best. The board is the point of cen- tral control and is the key or master control to all departments. Many different designs have been used. The board shown in Figure 75 is that devised by Mr. Geo. D. Babcock, used in the Franklin Auto- mobile Co., and described by him in the **Iron Age'' as follows: The boards themselves are large frames containing a great number of horizontal strips. " Across the top of each frame is an adjustable scale. Sliding up and down the frame parallel with the strips is a cross piece, or runner, also having ad- justable scales in it. Each horizontal strip has fastened to it several blocks. A small number of the strips are white in color, while the ma- jority are black. Each black strip represents one part re- quired in a finished car, while each white strip represents an assembly of the parts on the black strips immediately above it. Each of these assemblies forms one of the sub-divisions, sections, or divisions, previously mentioned. Taking any one black strip, it is noted that there are sev- eral blocks attached to it at different intervals along its length. These blocks represent each operation of a finished piece from the time of purchase to the time of its completion ready for use in assembling the car. The longer blocks at the left-hand side represent the requisition for the purchase of the material for the part, the smaller blocks along the strip represent each stop in the process of the part, and the long strips at the J'if.'ht-hand end represent the finished part. The spacing of those blocks and the length of the blocks themselves is to a pre- determined scale, and bears a fixed relation to the top scale 154 PLANNING AND TIME STUDY CONTROL MECHANISM 155 o o 6 < on si Co w ^ o n and sliding scales previously mentioned. By means of num- bers on the blocks themselves and the values of these num- bers as compared to the numbers immediately above them on the top scale, the information is given as to whether a part is behind or ahead of schedule. Another interesting design of a planning board which shows the jobs ahead of the equipment and also, proportionately, the time engagement which they represent, has been devised at the plant of the Norton Grinding Co., and is illustrated in Figures 76 and 77. The boards consist of a series of racks or shelves, each shelf being arranged to accomodate the work ahead of a single machine, the number of which is indicated on a block at the end of the rack it- self. The actual method of representing the time demand against the equipment is highly ingenious and consists essentially of using wooden blocks of graduated size which are inserted on the shelf. These blocks are made so that one-tenth inch in length is the equivalent of an hour of time, and the job ticket is attached to the blocks in the form of a sticker, showing the part number, order number, machine number, and operation number. The blocks serve to show the demand against every machine; as operations are completed the blocks are removed, and thus a constant balance is maintained of work ahead. The board also precludes overload, for it represents physically, only on a di- minutive scale, the actual loads put upon the ma- chines, and so insures an equal distribution of work- ing requirements. INTENTIONAL SECOND EXPOSURE 154 PLANNING AND TIME STUDY I o 6 Em 5rs K "^ H Pm O Q <3 o p ^ O 6 U 55 d CONTROL MECHANISM 155 and sliding scales previouslj- mentioned. By means of num- bers on the blocks themselves and the values of these num- bers as compared to the numbers immediately above them on the top scale, the information is given as to whether a part is behind or ahead of schedule. Another interesting design of a planning board which shows the jobs ahead of the equipment and also, proportionately, the time engagement which they represent, has been devised at the plant of the Norton Grinding Co., and is illustrated in Figures 76 and 77. The boards consist of a series of racks or shelves, each shelf being arranged to accomodate the work ahead of a single machine, the number of which is indicated on a block at the end of the rack it- self. The actual method of representing the time demand against the equipment is highly ingenious and consists essentially of using wooden blocks of graduated size which are inserted on the shelf. These blocks are made so that one-tenth inch in length is the equivalent of an hour of time, and the job ticket is attached to the blocks in the form of a sticker, showing the part number, order number, machine number, and operation number. The blocks serve to show the demand against every machine; as operations are completed the blocks are removed, and thus a constant balance is maintained of work ahead. The board also precludes overload, for it represents physically, only on a di- minutive scale, the actual loads put upon the ma- (*hines, and so insures an equal distribution of work- • iiJg requirements. -I •'••'ii , ii> ^^^ I 156 PLANNING AND TIME STUDY o u o ;?; I-H Q o ;?; o H 63 O :z; w H - Q3 d 3 «^ ^^ i^ ►-4 ^^ ;^ ^ o fa U o W I fa CONTROL MECHANISM 157 o o o Q (—1 O 55 si < o s-E^ O »i4 S6 5? § 'ill I cr iHI' it ';!•!, mm\ *>¥>#{ 158 PLANNING AND TIME STUDY CONTROL MECHANISM 159 6 n CO p O § H O P § 00 6 5 The Waterbury Tool Co. have devised a simple but effective board, as illustrated in Figure 78. This board is made by representing the various machines with a series of hooks; and as the work is ready or available, time cards are made out covering the operations to be done and are hung on these hooks. The time tickets have a tickler stub attached, and when the ticket is issued the tickler is filed. If the job goes over a day, a ** continuation " ticket is made out without the stub and the completing operation is done on a blue card with blue stub, the return of the latter indicating completion of the work. Still another device, the Band Visible Index, is successfully used by such companies as the Pierce- x\rrow Motor Car Co. and the American Type Founders Co. in connection with the control of pro- duction, as shown in Figures 79 and 80. The application against the equipment of the work to be done may be done either with the sheets or boards. It is difficult to state a preference. In many cases the boards are more flexible and possibly eas- ier to grasp and read than the sheets, but the sheets supply all that the boards do and are further valua- ble because it is possible to trace on them the actual accomplishment and compare this with the schedule. Scheduling, in Practice.— The actual detail of scheduling, whether with boards or sheets, operates on the principle of providing work ahead of all ma- chines in the sequence required to produce the quan- tities and kinds within the specified time. This prin- ciple reduces in practice to a system of racks or boards subordinate to the control board or sheet. INTENTIONAL SECOND EXPOSURE 158 PLANNING AND TIME STUDY 6 o o H >* CQ OS Eh OS p PES < o n o O a o &4 00 6 CONTROL MECHANISM 159 The Waterbury Tool Co. have devised a simple but effective board, as illustrated in Figure 78. This board is made by representing the various machines with a series of hooks; and as the work is ready or available, time cards are made out covering the operations to be done and are hung on these hooks. The time tickets have a tickler stub attached, and when the ticket is issued the tickler is filed. If the job goes over a day, a ** continuation" ticket is made out without the stub and the completing operation is done on a blue card with blue stub, the return of the latter indicating completion of the work. Still another device, the Eand Visible Index, is successfully used by such companies as the Pierce- Arrow Motor Car Co. and the American Type Founders Co. in connection with the control of pro- duction, as shown in Figures 79 and 80. The application against the equipment of the work to be done may be done either with the sheets or boards. It is difficult to state a preference. In many cases the boards are more flexible and possibly eas- ier to grasp and read than the sheets, but the sheets supply all that the boards do and are further valua- ble because it is possible to trace on them the actual accomplishment and compare this with the schedule. Scheduling, in Practice. — The actual detail of scheduling, whether with boards or sheets, operates on the principle of providing work ahead of all ma- (*hines in the sequence required to produce the quan- tities and kinds wnthin the specified time. This prin- ciple reduces in practice to a system of racks or boards subordinate to the control board or sheet. 160 PLANNING AND TIME STUDY CONTROL MECHANISM 161 FIGS. 79 AND 80. THE RAND VISIBLE INDEX FOR PRODUCTION CONTROL Above : Pierce-Arrow Co. Below : American Type Founders which are placed in the various depsffrtments — or possibly, in further retirement, located by machine groups. The entire scheme of control mechanism varies in extent, and very materially according to the volume of the business which it controls and the nature of the process. The purpose is to secure central au- thority in a head planning department which carries the major records and does the work of planning and operating through stations in the various de- partments. ' Detail of Scheduling Method. — ^Iri explanation of the process of scheduling and dispatching the follow- ing detailed description is given, representing stand- ard and most successful practice. The system described presupposes a manufacture of such size as to require departmental planning sta- tions or booths, and the production which it con- trolled was one of a mechanical device involving the machining of various metal parts for subsequent as- sembly. The metal parts were carried in stock on a mini- mum basis and assembly proceeded on the basis of this stock of finished parts which was replenished by part orders. These part orders for convenience were further divided into lots and so processed. The description begins with a point where there are or- ders on hand for various parts. Operations in Head Planning Department. — The operation of the scheduling and dispatching mechan- ism was based on the series of forms shown in Fig- ure 81. For a given part which was to be processed, INTENTIONAL SECOND EXPOSURE II 4r 1 i flKlii I I i III 160 PLANNING AND TIME STUDY PIGS. 79 AND 80. THE RAND VISIBLE INDEX FOR PRODUCTION CONTROL Above : Pierce-Arrow Co. Below : American Type Founders CONTROL MECHANISM 161 which are placed in the various depspi-tments — or possibly, in further retirement, located by machine «;roups. The entire scheme of control mechanism varies in extent, and very materially according to the volume of tlie business which it controls and the nature of tlic process. The purpose is to secure central au- thority in a head planning department which carries the major records and does the work of planning and operating through stations in the various de- partments. ' Detail of Scheduling Method. — In explanation of tlie process of scheduling and dispatching the follow- ing detailed description is given, representing stand- ard and most successful practice. The system described presupposes a manufacture of such size as to require departmental planning sta- tions or booths, and the production which it con- trolled was one of a mechanical device involving the iiiaohining of various metal parts for subsequent as- sembly. The metal parts were carried in stock on a mini- mum basis and assembly proceeded on the basis of tins stock of finished parts which was replenished by part orders. These part orders for convenience were further divided into lots and so processed. The description begins with a point where there are or- ders on hand for various parts. Operations in Head Planning Department. — The operation of the scheduling and dispatching mechan- ism was based on the series of forms shown in Fig- uio 81. For a given part which was to be processed, H, ; < I M 162 PLANNING AND TIME STUDY CONTROL MECHANISM 163 NUMBER OF PIECES WANTED COMPLETED GOOD REJECTED CREDIT WORKMAN P. PRICE CHANGE MACH. TOTAL CREDIT ORDER No. PART NAME DESCRIPTION FROM STORE No. ORDER No. WORK CARD FORM INSPECTION 0. K. MAN Na OPERATION TOOL No. MOVE TO DEPT. TO MACH. DATE ELAPSED HOURS OPER. No. ORDER No. LOT PART No. MACH. No. ACT. HOURLY RATE DEPT. TOTAL STOCK REQUISITION PRODUCTtVK MATIRIAL LOT QUANTITY PATTERN No. PART No. PRICE AMOUNT RS SEMI. FS. REPAIR ASSEM. 6 o' o o.o I DELIVER TO DEPT.. MACH. DATE. SIGNED. MOVE ORDER LOT QUAMTITY MOVE FROM DEPT. MACH: DEPT MACH. PART No'. DELIVER TO DEPT, MACH. DEPT. MACH. REMARKS « i f DATE REC'D PIG. 81-A. WORK CARD PIG. 81-C. MOVE ORDER FIG. 81-B. REQUISITION FIG. 81-D (not shoWIl) RECEIVING SUP one set of these forms was made for each lot on the order as follows: One set of Work Cards, A, made out for each operation. These were prepared in triplicate (white, canary, and manila). One set of Requisitions, B, for each lot to serve as authority to draw the required material from stores. These were pre- pared in triplicate (orange, green, and manila). One Move Order, C, for each time that part has to be trans- ferred from one department to another. One set of Receiving Slips, D (identical with B, except for title), which showed the completion of the lot and the quan- tity passed by the inspector. These were prepared in tripli- cate (buff, blue, and manila). Three files were maintained in connection with these forms — File A — ^Arranged by 1. Part or article number 2. Order number 3. Lot number. File B — Arranged by date. File C — Arranged by department, then by part order number, and by lot number. When the various forms described and shown were made out they were disposed of as follows: The three copies of the work cards, the orange and green copies of the requisition, the move order, and the receiving slips were placed in file A in the order provided, namely, first by part number, then by order number, and finally by lot number. 164 PLANNING AND TIME STUDY CONTROL MECHANISM 165 « 1 1. \ ; ■' f. U The manila copy of the requisition was placed in File B and arranged there by date. When the date required to start any given lot ap- proached, the manila copy of the requisition was withdrawn and the work was scheduled on the ma- chine schedule sheet (Figures 72, 73, and 74). When scheduling was completed, the forms cor- responding to the particular lot located in File A, were withdrawn and placed in File C, which showed that the job had been scheduled and was in process. The orange and green copies of the requisition were sent to the stock room, and the service cards for the operations scheduled were sent, with the necessary move orders, to the planning booth within the department. The stock keeper sent the orange copy of the requisition with the goods to the de- partment shown on the requisition and left the ma- terial at the machine called for, the requisition it- self being left at the production booth by the trucker. This orange requisition indicated to the clerk in the production booth that the material was at hand and that the service cards might be put on the planning board as work ahead of the machine shown. The orange requisition was then returned from the departmental planning booth to the cen- tral planning department, and the green requisition was sent by the stock keeper directly to the cost de- partment. Operations in Departmental Planning Booths.— Referring now to the departmental planning booth, the following copies covering scheduled work were on file; Work cards (three copies); move orders, if any; and receiving slips at last operation, all of which were filed there by part number, order number, and lot number, being kept in sequence by operations. When the orange requisition arrived, as has been described, the service cards (three copies) were taken from the file and placed in the dispatch hoard. This dispatch board consisted of a series of 3 X 5-inch pockets, and a set of three was provided for each machine, arranged as follows: First pocket — Job ahead. Middle pocket — Job waiting. Bottom pocket — Job in work. If there was no job waiting, the service cards were placed in the middle pocket, otherwise in the top or *^iob ahead" pocket. The white copy of the new job assigned to be done was filed in the bottom pocket, the canary copy went to the work man, and the manila copy to the timekeeper who registered the time at the beginning and end of the job. The elapsed time was shown on all copies by the time- keeper at the end of the job, and if a job ran over flip dav the timekeeper made out an additional ma- nila service card. The manila copy of the work card served as the record for the cost department after being checked a,2:ainst the *'In and Out" time clock at the gate. The white copy of the work card was used as check hy the planning department against its schedule, and the canary copv was sriven to the workman. The work was moved from department to depart- 166 PLANNING AND TIME STUDY CONTROL MECHANISM 167 ' ^^^^^^1 M ^^^H i I 1 iiifH? i I i Ij-i i _i:: :::::::::::::::::: = : = . 1 T J LH LLLlAA.iAA.lAA \-" 1 I 1 1 I iAAAAAA.iAAA-i.i-i 1 I } } } 'i ) I I I l.l.iA.lAAJ.-l ■ 1 : j . I I I ]} I I I I I I i I i^LLI.i- . ^.AA-i-lA.lA.iAAAAAAA.lA. ^ I o J I I L L I lA.lAAAAAA.l.iA. 2 f Y (u 1 I I i i i i i lA i I lAA-l.iA. % 9 i u 1 ! ::::: :::::::: ::::: : .-.-t- S? M 1 1 L L L L_L_I-l.l-l.I.l.i-i.l.i-l. g j __ ______ - - o 2 1 \ \ \ \ LL-L_l-Li_l-i-i-i-i.i-i- ^ 1 ____-»-0 T ~ "" *" " ' .[.[-[. I. LLi-I.Li-i-LLiJ.i-i- « • T g & L.- 1 - 02 & ^ J "TTTTTJ 1 J J 1 J JJ.i.i.i.L 5 C 1 ii- -f- r-r"r"r"rT"r"r"r"rrri:ri:LL ^ 1 • 5 1 1 " Cm 1 i \~~VVVVVV\ \ \ \ \ \ J_l_i.i-L °° r -- d 1 1 - " :::: : : : :::: ::: g £ r - 1 ? ? 1 L L M I_Li_i_Li.i-i-i-l. "^ 1 \ "I I'J J 1 J 3 i J ' I J I I ] I L 1 " " ::: 1 *^"[~["["[" "["Lirj 1 1 i I Li-i- 1 1 \~~vvvvrvvv\ \ \ \ \ \ Li-i- , 1 1 I'- i ^AAAAXAAAAAAAAAXXA._ L 1 • ment by means of the move order, which author- ized the move man to make the transfer and also informed the next department of the arrival of the lot moved. The receiving slips passed with the last operation to the inspector, where they were checked for count and signed by the inspector, the blue and buff copies going to the cost department and the manila copy to the central planning department, showing the completion of the lot. This describes in somewhat extensive detail the method of scheduling and dispatching work, and while the system so described is not universally ap- plicable, it does represent standard practice of dem- onstrated success and should inform in general as to the principles of procedure. Production on Orders. — The production on orders which are carried on a lot division basis, requires some further record as to the status of the lots at each operation. The form shown in Figure 82 was designed by one manufacturing house for this pur- pose. One of these records was maintained for each specification made and, as may be seen in the form, the lots are noted when first released and again for each subsequent operation, with the date showing when each operation on each lot was completed. Such a record reflects at any time the status of the pods in process, and from the point of manipulat- ing production according to sudden requirements of customers, it is almost invaluable. In another company where many orders were 168 PLANNING AND TIME STUDY CONTROL MECHANISM 169 II ""TT '1 "7""" ■^" -""::_ ■■" ""I 5 ' r i ' - § '— 8 ' 1 '..._ t_' I |J— ) , S • • 2 : : i . i / ? - 2 - I - I - -{ u 6 r"" * r" -1"" ^ . ' t • : ,S : 6 , . 1 i ;: I- = r i' '• «' __ '-_ \ 5i: J>: ;: !«s -i: ;:! p: S's! 1 / S«: 5»: 51: S'!: §"___ 5^ - V''--- U- '\ S:. gt. oi. o:. 1 *L ''" _. 'l._- S;: ?!] ?[: ^E'il 1 ) »| :~ -S ; 2 = S = ' z z z fj... jj— ij— fj-X L... tp.__ J..- iJ.-J> ! ! ' ' I : « • t i ' ' 1 ^ 3 i i:::: t:::: i:.- l t It's S C ' < s ! a « S = = - = s «ji = s = j 1 r 1 , ' : 1— ..' . . ]) i : ' ' : :_M_ / !, ^ i^ ~'~" «' '' ■ .IljJ h— ?^-5"-"Sr- l_ i_ - i, 5: i: ;: \ 1 _ » - i- - ' H ) « « . * 5 V „ « • _ I '- I '-— i- r- 1 ' ( ir-r-r-i-- r -f I 1 -- -- -.- -.-_-_-_ * T / i ■ ■ • 1 * !!■ !l- !'" f ■ gi- f5' i«- ?' 1? Ss" !»• V' \' . •c ■ c ■ £ 8!- S»* i«* |i' £ . 0^4- 8.^— Jp— 8p 7 > 1 ' 8 8r Sr; - 5 ;_ J* I.I I t ( 5 ~" r - - * 1 \ « -"" "" r - " 1 J i " i i i i i i - i i { i i ! 8 ■ s - __ ska- __ \ \ \ -J 2 1 1 i i . oloS olol °*t1 °° III 1,1 .11 lill\ § o p4 m Q O o o o O 04 o CO 00 processed in their entirety, the record of produc- tion and the location of each order, according to the 39 operations required for its completion, were kept on the form shown in Figure 83. This form was used also as the basis of piece- work payment and operated with a piece-work tag from which coupons were detached as the opera- ORDER No. -OT No. OPERATION. FIG. 84. OPERATION PROGRESS RECORD tions were completed and sent to the office to be posted on this sheet. The pay roll, of course, was compiled from the coupons which were then posted on the sheet. Naturally there was an absolute check on payment, for no coupon could be posted twice in the same operation and hence no duplicate payments could be made. Work in Process.— Another very elastic and ex- ceedingly simple scheme for keeping track of the 170 PLANNING AND TIME STUDY FIG. 85. SKETCH OF DOUBLE FILE progress of work in a large specialty plant, may be described as follows: Cards, as shown in Figure 84, were made out for every operation required to complete each lot, and were then filed in sequence of the operations in one side of a double file (shown in P^igure 85). One side of this file showed what operations still had to be completed, the other side showed what operations had been done. The movement in this file was actu- ated by the return to the planning department of the time or service card, indicating the completion of the operation. As an example, assume that a service card cov- ering the planning of Lot No. 36, Order No. 414 CONTROL MECHANISM 171 was returned. The clerk in the planning depart- ment refers to the file, locates the card for Order No. 414, Lot No. 36 and, taking the planning card from the ''To do'' side, transfers it to the ''Done" side. In this manner the status of every lot was known every minute in the day and the file was an indispensable adjunct to the scheduling in the plan- ning department in which it was used. Mechanical Aids in the Planning Department. — The control of production is being constantly fa- cilitated by various mechanical devices which short- cut effort and make communication between depart- ments easier, speedier, and more reliable. One of the most valuable aids has been developed in the instrument known as the Productograph, installa- tions of which are shown in Figures 86 and 87. The instrument, while of course directly connected to a machine in the shop, records automatically and in permanent form on a dial, which may be placed anywhere, the time and duration of every stop in the operation of the machine to which it is at- tached. The significance of such a barometer of machine activity cannot be underestimated in its value to the planning department. Although the work of the planning department is primarily the prede- termination of the course of production, it will un- doubtedly fail unless constant and instant touch is maintained with the actual accomplishment of the schedule it establishes. With a battery of Pro- ductograph dials in the planning department, as seen in Figure 87, the course of events all over the 172 PLANNING AND TIME STUDY CONTROL MECHANISM 173 02 < o P Q O 00 Q CO 00 CQ CD FIG. 88. LAMSON TUBE SYSTEM FOR DISPATCHING Courtesy, A. B. Cotrell & Sons shop is reflected very accurately and a sweeping vision of shop activity is maintained which is of great value to a live and watchful planning de- partment. Various other devices have been developed, also along the lines of furnishing direct and quick lines of communication from the outlying departmental planning booths to the central planning office. The Lamson tube system has been successfully used for this purpose and has great value in that it actually conveys the various records which control the exe- cution of the work planned. Figure 88 shows an INTENTIONAL SECOND EXPOSURE 172 PLANNING AND TIME STUDY < c o O Q O W K CX) o < CO 00 TO o CONTROL MECHANISM 173 FIG. 88. LAMSON TUBE SYSTEM FOR DISPATCHING Courtesy, A. B. Cotrell & Sons shop is reflected very accurately and a sweeping vision of shop activity is maintained which is of great value to a live and watchful planning de- partment. Various other devices have been developed, also along the lines of furnishing direct and quick lines of communication from the outlying departmental planning booths to the central planning office. The Lamson tube system has been successfully used for this purpose and has great value in that it actually conveys the various records which control the exe- <'ution of the work planned. Figure 88 shows an 174 PLANNING AND TIME STUDY THE TELAUTOGRAPH IN OPERATION CJourtesy, The Telautograph Co. CONTROL MECHANISM 175 installation in current operation in a manufactur- ing plant where the tube system has been highly satisfactory and is an indispensable accessory to the operation of the planning system. The Telautograph is another very effective means of communication of the shop with the planning de- partment. It has the very supreme advantage of making a permanent record and in the matter of instructions this is a quality which has great value. This electrical writing device has been installed in many manufacturing plants and has proven to be of great assistance to the quick direction which the planning department is required to give. The pho- tographs opposite show the operation of the Telauto- graph system in manufacturing plants where the in- stallations have been most satisfactory. The interdepartmental telephone is, of course, al- most standard practice for the purpose of communi- cation, and its use and value for the purpose hardly need comment. Recapitulatian. — ^The matter of control mechanism as an element of planning has been discussed at length in this chapter and, it is believed, in comprehensive detail. The subject has merited such a treatment, for control mechanism is the essence of planning and the success of its design and operation govern the final results of planning effort. It has been my effort to show that the purpose of control mechan- ism is to supplant the expenditure of needless hu- man effort by a mechanical grasp of detail, and at the same time to bring to the attention of the pro- duction managers such junctures or necessities as INTENTIONAL SECOND EXPOSURE ""'''i 'n ll I ;;B: Bin ' 174 PLANNING AND TIME STUDY SI i THE TELAUTOr.RAPH IN OPERATION Ck>urtesy, The Telautograph Co. CONTROL MECHANISM 175 installation in current operation in a manufactur- ing plant where the tube system has been highly satisfactory and is an indispensable accessory to the operation of the planning system. The Telautograph is another very effective means of communication of the shop with the planning de- partment. It has the very supreme advantage of making a permanent record and in the matter of instructions this is a quality which has great value. This electrical writing device has been installed in many manufacturing plants and has proven to be of great assistance to the quick direction which the planning department is required to give. The pho- tographs opposite show the operation of the Telauto- graph system in manufacturing plants where the in- stallations have been most satisfactory. The interdepartmental telephone is, of course, al- most standard practice for the purpose of communi- cation, and its use and value for the purpose hardly need comment. Recapitulation. — The matter of control mechanism as an element of planning has been discussed at length in this chapter and, it is believed, in comprehensive detail. The subject has merited such a treatment, for control mechanism is the essence of planning and the success of its design and operation govern the final results of planning effort. It has been my effort to show that the purpose of control mechan- ism is to supplant the expenditure of needless hu- nian effort by a mechanical grasp of detail, and at the same time to bring to the attention of the pro- duction managers such junctures or necessities as > 4 176 PLANNING AND TIME STUDY the particular situation which it reflects, are seen to require. Various methods of reflecting the general status of unproduced demand have been discussed, and then the steps have been detailed by which the pro- duction requirements are translated into machine programs and become definite instructions for the current operation of the individual machine. I have further shown how in this manner control mechanism effects production with least delays and with greatest timeliness. For in the increased ce- lerity of turnover that results and the improved service in deliveries lie its chief commercial gain and justification. Hence, the study of control mechanism is one of the most important phases of the theory of planning and might be said to be the very crux of planning operation and design. CHAPTER VII TIME STANDARDS AS AN ELEMENT OF PLANNING The Keystone of Manufacturing. — The basis of production is, in the last analysis, time. That is, the productive process is measured in time; it is the cost of time which makes the expense of manufac- ture, and it is time which is the standard of effi- ciency and, generally, the index of profit and success. The time standard, then, is a most important ele- ment; the preceding chapters on the other elements of planning would be rendered ineffectual without adequate information as to the time of performance. In every manufacture and for each operation on every part, the important question is, **What is the time required to produce?" The operation cards discussed at length in Chapter V on Equipment furnish a full list of the operations necessary for production, and the time standards must be shown on these cards in order to complete their usefulness. The information current in the shop in the minds of the foremen or men is not always sufficient on this point. The ideas of time or rates of production held by them are apt to be too general or insecure to be accepted, and it is nec- essary, therefore, to set the standard on a more care- 177 '■I ! I . 178 PLANNING AND TIME STUDY — J - J I 1 1 i J 1 . i«^i 11,. ^11 i " 1 V ^ 1 /_ 1 a / \ 1 A V *& ! I f r f { r ly V 3 L §j 1 1 I - 1 i" T 1 ^ i j'l _ J [ _ ' " l) t L J; : - \ 3 i; J V h i^ J I 5t 1 " 4 C ...1 1 - J t VIE Fini tioa — ^ ^ -{ t iSj 1 / 1 } ~\ ) ^ 1 , / \ til 4 C ^11 i) i 1 _4_ -4 1 Ml t \\l I ■ ill t 1 e i i 1 J Ui^i .--...--^^---- § w en CO be p. O) 05 00 TIME STANDARDS 179 DETAILED OPERATION CARD Dr. No .Patt, No* Symbol No Piece Name ^_ _ Used on „ , Operation ^ ^ Operation No Scheduled to Start Dept. No,..„..., Mch. No Order No Sequence of Operations SPEED F. P. M. Belt Gears FEED Cut in Indies LIMIT Hours! lOtha Quantity on this order. Total Time Limit FIG. 90. DETAILED OPERATION CARDS ful and exact basis than judgment, memory, or rule of thumb. Determining the Time Standard. — The determina- tion of the time standard may be done in one of three ways or is based on three possible sources of information, namely: Unit costs, Piece rates, Time study. 180 PLANNING AND TIME STUDY D2 1-2 roKM tot INSTRUCTION CARD SHOP LABORATORIES FOUNDRY DEPARTMENT PART Bas£: 6c Cj^ank Case ARTICLE (*45/M?/fPATT. NO. 1-2 FLOOR BENCH MACHINE 2 STATION STANDARD FLASK NO. SPECIAL FLASK NO. /04 CORE BOX NO. CORE PLATE NO. Sand mixture no. WIRE. SIZE rods size NO. loose PCS. / NO. cores 2 TOOL KIT NO. / RAMMER Floor FACING MXT. HOI'M TACKLE Jf/OOLC /f/ f3 4 5 P Pins P, /4 6 3 SPennff^AiLi F/6./ C-. »,l-.-..'.'. ' ..M^ fV.-.i.- ■■li • J. • ••..• ^r-i •8 -C .F F/G.3 ^■■\M. r ■ ■ » -;. » in. 1.1 . . -..I Fjg.2 ITEM OPERATION ROUTINE 1. 2. 3. 4. e. 6. 7. Bolt cope board A with attached pattern to oachine # 2. Place cope B of etandard flaek 104 on board. Flaalc plna PI. 6.1 In pin holea... Uae Rl 13.4 to apread riddled aand 1/2" deep around pattern D. Clayvaah gaggera S, and aet In position as shown, fig. 1 and 2. Daggers should not project abOTe top of flaak. ... Bet sprues pins Pi. 19. 00 at ?, 7tg. 1 and 2. Tuck under bars with fingers and coTer pattern D with riddled sand. Place nails In position as shown. Tig. 1 and 2. ... Use shovel 8b 13.1 to fill cope B 2/3 full of heap aand. UUse fia A.l to peln ram around pattern. 7111 level with top of flask and peln around pattern and very lightly over top. ... Heap sand 4" above cope and butt ran. TTae 6t 15.1 to strike off and Wi 22.1 to vent. Remove sprue pins ? and ream out sprue holea. Place bottom board on. Clamp with machine and roll over. Start vibrator and lower cope gently away from pattern. Lift cope and set on floor. ... Use Sw 1 to wet edges of mold. Uend torn parts. Cut gates as indicated in ?ig. 3. 1" wide. 3/6" deep.- Press handle of trowel Tr. IS.l in mold 1/2" deep as shown at H. fig. 3. Get chaplet 1/4" dia. . 4 1/2" long and ahove thru cop« •t B In .oentsr of dsnt mads by travel. Brush on graphlta. 0.0391 0.1106 0.0303 0.0381 0.0833 0.0221 0.1003 ^^mmmatm^im^mm»mimi*m TOTAL STANDARD TIME 0.4306 KG. 91, DETAILED INSTRUCTION CARD TIME STANDARDS 181 Of these, time study is the only way in which to determine a true standard, for the derivatives from piece rates and unit costs are only approximate and nominal standards. However, it is frequently neces- sary to forego the precision of the more adequate and accurate method — the time study — and com- promise on the easier and readier expedients, piece rates or unit cost determinations. Time Standard Determined from Unit Costs. — The standard developed from unit costs is fairly depend- able, although not exact. The unit cost of an opera- tion, or the productive labor cost, is accumulated from the time cards and is representative of actual performance, although it does not indicate the latent possibility of improvement in performance. The procedure in using the unit cost data to estab- lish a time of performance or rate of production is to consult the operation cost record and secure the selective average cost expressed in dollars and cents for each operation on each part. The conversion of the productive labor cost to time requires further knowledge — namely, the average hourly earnings either on the operation in question or for the machine group or department in which the operation is done. Then it becomes simply a matter of dividing the cost by the hourly rate of earnings to compute the equivalent of the cost in time. For example, if the hourly rate of earnings is 25 cents and the unit cost of an operation on a given part is 75 cents per hundred, it is obvious that the division of 75 by 25 gives the equivalent of 3 hours per hundred. II 182 PLANNING AND TIME STUDY b2 1-12 roNM lot INSTRUCTION CARQ SHOP LABORATORIES FOUNDRY DEPARTMENT FLOOR/-* BENCH MACHINE STATION PART Cylinder RRL. ARTICLE f VT 4^..;._.<.i.;.'» .■.■}:.:.X\ •:^^:''/.i //e. / /■/c? />.\, Tan( sand next to lining very fim.ly. Shovel m 1/2 bushel of sand and tanp. ... Add enough sand (spread sand by reaching thru hole B) to lear* bed at X about 2" higher than at Y. Tamp and smooth. Remove ex- ceee sand from .cupola. ... Rer.ove sand at A, 71g. 2, and replace with clay mixture Ko.3. ... Clay waeh surface of sand bottom. ... FroiM coke bin No. 7 remove ar.ount of coke specified for bci cliarge to c.arelnii floor. (Use coke fork to handle coke). One bneket of" t>.e lnr>,est pieces of co' C3 ^ -S ^

,««x M c/) X !> O .S 1 (O a o e cd a o CO •^^ X! H c o >. cd O) c o CO to a ^ -^ S C "- c E Cd tUO Q. "^ "^^ cd C 2 '^ 52 0> CO C ^ TIME STANDARDS 189 188 elements is meant the individual motions which have definite points of starting and ending. As illustrative of this division into elements, the study on the opposite page is presented. This study covers the insertion of clip bolts in automobile springs, and has been analyzed to eight separate elements or divisions. The analytical method then observes carefully the time required to perform each element and deduces a standard for each element and then the standard from all elements for the entire operation which they compose. The actual detailed method of time study will be considered in Chapter XIII; this chapter is suggestive only and is principally concerned with the use of the time standard after it is obtained rather than the manner in which it was determined. When the time standards have been established, they are entered on the operation cards as described in Chapter V, on Equipment, and illustrated by Figure 89, page 178. This completes the information on these operation cards, and they are now ready for use for the process of scheduling as outlined in Chapter VI, on Control Mechanism. The Two Essentials in Planning. — From this it will be seen that planning consists of two essential steps — the reduction of the manufacture to a standard, and the scheduling and control of manufacture according to that standard. The work properly done is truly scientific, for it first develops a unit of measurement and then applies the unit to whatever conditions may come upon the manufacture. Planning in its 190 PLANNING AND TIME STUDY C6 1-12 rOMM I02 INSTRUCTION CARD SHOP LABORATORIES FOUNDRY DEPARTMENT PART CYLINDER ARrici.E CASf/^C/'^'pA-rr no. /•/2 FLOOR BENCH ^^/T'^MACHINE STATION STANDARD FLASK NO SPECIAL FLASK NO CORE BOX NO."^ CORE PLATE NO. SAND MIXTURE NO / WIRE. SIZE Mi/?noOS SIZE NO. LOOSE PCS. NO CORES TOOL KIT NO. 4 RAMMER FACING MXT. NO. TACKLE IPrfa I LPfio. S Fig. 2 C2LPf^o.2.Z.&.4 Wire No. 3 Wire Nal , WireJfoJ WireNa^ 1 FfG.5 W.tiaS FiG.i .-vSflggyA ^""i WNo5:^Q WNo4^ ^iJkPNo.l If- T^ X tflo Fos/fion of Wires /n Cores ^ftn % - Wfio. W^l. [I ^ I k ) W.No.l ITEM 1. 2. 7. a. 9. 10. 11. 12, 13. 14. OPERATION ROUTINE note: -Have tools, core sand, core box, and wires on bench ready for work. Clean box with oil waste. Dust. Brush out dust and redust. ... CoTer bottom of box from A to B, ?lg. 1, with a 3/4* layer of sand. Osing trowel and slick, cut away sand to form shown at A ft B. Tig. 2. Hold loose pieces Ko. 2, 3, h 4. against No. 1. Place in box as shown at B, Fig. 3. ... CoTer box with a 1/4" layer of sand in space P(l,()P k (^X, Fig. 4. ... Lay a Bo. 3 wire on sand from X to 0. and P to 4* l^Y * '^^- 1 wire on sand from \ to A, Fig. 4. ... CoTsr vires with a 1/4" layer of sand and lay a second set of wires in box. CoTer wires with a 1" layer of sand and press sand lightly into box. ... Clean sand from box at If ft V. Fig. 4. Set loose piece Mo. 6. ... fill inisand at ft 0, Fig. 6, and between. loose pieces No. 1 and main box. . . . Set wires No. 4 ft 6 as shown in. Fig. S ft 6. ... fXll sand 1" above top of box and press into box with palm of hand... Strike off with trowel, removing sand from space X, Fig. 3. ... Remove loose pieces 1 and S. Then 2, 3. and 4. ... Fill inside of core with well sifted molding sand, tucking sand In carefully so as not to crush cores out of shape. ... Strike off. Place plate on box. Roll box over onto plate. Bap box and lift. Take to .oven Mo. 2. ... TOTAL STANDARD TIME 0.142 FIG. 94. DETAILED INSTRUCTION CARD 0.01 0.02 0.01& 0.015 0.002 0.005 0.010 O.OOS 0.005 0.006 0.01 0.01 0.01 TIME STANDARDS 191 Dl 1-12 FORM IDS INSTRUCTION CARD SHOP LABORATORIES FOUNDRY DEPARTMENT PART CYLINDCR R.ScL. M^VCULCAzEnG. /JVaTT, NO., /-/P FLOOR />v5bENCH machine STATION STANDARD FLASK NO. SPECIAL FLASK NO. /OO CORE BOX NO. CORE PLATE NO SAND MIXTURE NO. WIRE. SIZE RODS SIZE NO. LOOSE PCS. J NO. CORES 4 TOOL KIT NO / RAMMER Floor FACING MXT. NO. TACKLE Jt:^ > B#^ FiO. 1 F/s. 2 FtG. S ITEM 1. 2. 3. 4. 6. 6. 7. OPERATION ROUTINE Bed molding board A on 2" bed of sand in front of sand heap. Place drag c on board. Pattern B in center of drag. Cover pattern with riddled sand. Tuck sand around pattern with fingers. Draw nails from loose piece!* Fill drag with heap sand. Peln ram around pattern and Inside edge of drag . _. _ ^ Heap sand to 4" above drag and butt ram. Strike off leaving 1/4" layer of sand over surface. Vent. Bed bottom board on solid - and roll drag over away from sand heap. ... Remove molding board slick Joint. Place pattern F in position. Dust parting over Joint. Set cheek H in position on drag. Place sprus pin I in position. Mote position of flange J. ..; Riddle sand over pattern and tuck well with fingers. Fill 2/3 full of riddled sand. Pein ram. Refill cheek. Peln ram. Hold flange J in position with hand and tuck sand under it with fingers. ... Refill to 3 inches above level and butt ram. Strike off lev^l with* top of flange and slick Joint. Cut sand away over top of sprue pin^. Dust on parting. ... Place cope K and sprus pin L, H, and H in petition. Riddle 1" of sand in cope. Fill cop* with heap sand. Pein ran. Refill and butt ram. Strike off. Vent. Remove sprue pins- TOTAL STANDARD TIME .02 .03 .01 .02 .03 .10 .15 .36 KG. 95. DETAILED INSTRUCTION CARD 192 PLANNING AND TIME STUDY broadest scope raises the level of productive capacity and then compels the complete utilization of that capacity. Detailed Operation Cards. — The time study will now be seen to be a method of measurement and its results are translated into terms of standards known as ** instruction sheets" or '* detailed operation cards." This card is a summarv of the individual study; a form used for the purpose is shown in Fig- ure 90. In further extension of this same idea, in- struction sheets are sometimes prepared with sketches showing the operation or article worked on, and, by the courtesy of Prof. Kennedy, of the University of Illinois, I am reproducing on preceding pages in this chapter. Figures 91, 92, 93, 94, and 95, instruction cards which represent most complete and satisfactory practice. These cards furnish information on every point on which there could possibly be question. They show sketches, tool equipment, and then a detailed operation routine with a statement of the time stand- ard for each operation. It is not always possible to persuade a manage- ment to permit the accumulation of data in this form, as it is frequently regarded as fruitless detail. But progressive manufacturers can not be provided with too much information, and the facts of their business are recorded by card file or otherwise, com- pletly covering every physical condition or necessity. For managers of that mind, the operation cards shown here, as used at the laboratories of the University of Illinois, may be taken as an excellent guide of the TIME STANDARDS 193 best practice. Several cards have been shown in order to illustrate to what variety of operations the stand- ard card can be put. Recapitulation. — This chapter has described the function of time standards as an element of planning, and it has shown the extreme importance of the in- formation, both from the point of control as well as of improvement. The following chapter will consider the matter of organization as regards its influence upon the planning effort. CHAPTER VIII ORGANIZATION AS AN ELEMENT OF PLANNING Variability of Planning Organization. — ^^The matter of organization of the planning department, both within itself and in its relation to the other executive departments of a manufacture, is a consideration of highest importance and should be definitely estab- lished before the department operates, certainly be- fore it assumes responsibility for production. The status of the planning department with respect to the rest of an organization is a thing which varies widely. It has been my experience that the authority of the planning department ranges from almost noth- ing to a practical control of all productive functions. The reason for this variety in arrangement is found, as with most irregularities in organization, in the widely varying capacity of the men in charge of the planning department as well as in the breadth of the chief executive of the corporation shown by the latitude given the planning department. Most organizations seem to be an adjustment be- tween the temperament and ambitions of the men composing them, or the balance of their characters and capacities rather than the mechanical structure designed by division of duties and lines of authority. m ORGANIZATION 195 General Manager Office Manager Planning Dept Manager General Acc'ts. I Cost Dept. General Sales Manager Superintendent 1 Purchasing Agent Foremen etc. FIG. 96. ORGANIZATION CHART SHOWING THE PLANNING DEPART- MENT MANAGER AS THE CENTRALIZED AUTHORITY The planning department suffers also in this respect as do all executive offices. But another reason for the great difference in the prominence of the plan- ning department in industrial organizations is the fact that it is a newcomer, and tradition operates against too great extension of its direct influence. The Typical Organization Charts.— Possibly the clearest manner in which to portray the many ways in which the planning relates to the entire organiza- tion will be by a series of charts, and with this in mind the diagrams shown herewith have been pre- pared. An organization where the planning department manager is the central authority in all matters per- taining to production is shown in Figure 96. Here the department is responsible only to the General Manager, having authority over the superintendent, 196 PLANNING AND TIME STUDY n General Manager Office Manager Planning Dept. Manager General Superintendent Purchasing Agent General Sales Manager 1 I 1" 1 General Accounts Cost Department Foremen 1 1 FIG. 97. ORGANIZATION CHART SHOWING FUNCTIONAL RELATION OF PLANNING DEPARTMENT TO, BUT WITHOUT AUTHORITY OVER, THE GENERAL SUPERINTENDENT as well as over the purchasing agent and the cost de- partment. An organization where a distinction is made be- tween the functions of the planning department man- ager and the general superintendent is represented in Figure 97. In an arrangement of this kind the planning department is responsible for the analysis of orders and the direction of their completion in so far as they bear on time and place. But the gen- eral superintendent has charge of the physical means of production, the provision of labor, etc., and the maintaining of quality, and so on. Figure 98 shows an organization where the plan- ning department has only rudimentory function. It is reduced practically to the status of special clerical labor such as is done in the timekeeping or stores department. The charts shown cover the typical division of authority which governs the activity of the plan- ning department. Of course there are endless pos- ORGANIZATION 197 1 • General Manager » Of ice Manager General Superintendent Purchasing Agent ■ General Sales Manager 1 1 r 1 1 General Accounts Cost Department Planning Department Foremen etc. 1 FIG. 98. ORGANIZATION CHART SHOWING THE PLANNING DEPART- MENT AS SUBORDINATE TO THE GENERAL SUPERINTENDENT sibilities in such charts if every possible arrange- ment of subordinate departments were shown, but the three forms presented show the extremes of plan- ning functions and as such furnish the basis of this discussion. The Ideal Arrang^ement. — It is not easy to state the preferable form of the three presented — I have seen individual cases where one or another of the three proved most helpful and successful. However, it is not necessary here to recommend dogmatically any one of the three, but it is desirable to consider the tendencies which have made the three possible and to speculate as to the arrangement which will ultimately dominate. Manufacture is a traditional affair, and there are many anomalies in its method which cling in the face of change and tendencies. The general super- intendent as the factotum is typified in most plant organizations of the past, and probably still domi- nates in many plants today. And it must be ad- 198 PLANNING AND TIME STUDY ORGANIZATION 199 \ mitted that some of the highest commercial successes have been developed under such form of organiza- tion. In fact, there are many plants today, operating with high returns on capital, which do so without the semblance of a planning department; the manage- ments of which view with contempt and as academic any attempt to control production by such a depart- ment. There is no purpose here to dispute this viewpoint. The opening chapter of this volume presented the commercial arguments in favor of the function of planning, and it is needless to repeat them here. The point is only made because, in view of the wide divergence of opinion and the extent of prejudice, it is unwise to make sweeping assertions in support of any policy or method on the organization of planning departments. It is best to rest on the unquestioned statement that no field presents such great extremes of success and failure with both good and bad pol- icies and systems as the field of manufacture. The exception is always paramount, it seems. Functional Duties. — But despite this range in con- temporary conditions which results from the evolu- tion of manufacture, there are tendencies in modern manufacture which are unmistakable and which move with certainty and power. Possibly the chief ten- dency is that toward the functional division of duty. This may be seen in the use of the employment man- ager, who usurps the traditional right of foremen to hire and fire, but who has been evolved because of the recently learned appalling waste which the older method entailed. It is seen again in the en- trance of the industrial chemist or scienast, who reduces production from rule-of-thumb and secret formulae to an open page where are found the tech- nological process in which the production is based. It is seen also in the safety engineer, the welfare de- partment, and last — but by far not least — it is seen in the office and function of the production engineer or planning manager. This trend in industrial management is very marked. And as the organization of successful cor- porations are studied, it will be observed that the functional form of organization is meeting with great commercial success. Evolution of Planning Department. — The planning department itself will be found in every stage of its evolution, from a small clerical relationship to the superintendent, to the control of the entire production organization. Which organization to adopt of the three shown for a new installation of a planning de- partment is largely a matter, at the beginning at least, of expediency, although even the expedient should be definitely established for the term of its operation. Frequently it starts as a small adjunct until its service is established, and then it mounts through the stages of subordination to authority and complete control. The Department Head.— It is difficult to present any kind of test or examination whereby it would be possible to determine the fitness of an individual for the work of planning, but it is possible to state the requirements of the position and then, either by actual trial or dependable reference, determine how 200 PLANNING AND TIME STUDY ORGANIZATION 201 a candidate squares with the job that he will be ex- pected to fill. The most succinct statement which I have seen of the requirements of the planning manager, was made by R. J. Burke in the Annals of the American Acad- emy of Social and Political Science, who describes the qualifications as follows: Hence, good power of analysis and synthesis, ability to form a safe average judgment, tactful persistence and a retentive memory are essential qualifications of the planner. The ideal planner would have a thorough appreciation of the full possibilities of men (i.e., labor), equipment (ma- chines), supervisory forces and responsibility, and be able to strike the best practical adjustment between the desired volume of production, various elements of time, promises given and accepted, departmental and factory co-ordination, and obtain maximum production and quality in minimum time and cost, with least effort and waste to the various fac- tors of production. The planning manager can become without a doubt an extremely important executive. There are striking cases, as in the Franklin Motor Co., where individual brilliance and remarkable capacity have brought dis- tinction to the position. The selection of the right man for the position is of inestimable importance. In the course of many installations, I have seen this statement prove out, for occasionally success has hung in the balance because the right man had not been picked to carry on the work, with consequent demoral- ization of the department. Internal Organization. — ^When once the proper type of man is secured for the position of planning de- partment manager, the next point for consideration is the internal organization of the planning depart- ment itself. As has been stated several times in the preceding chapters, the work of the planning department divides among the three functions of routing, schedul- ing, and dispatching, and in carrying out the three phases of the work, the size of the organization, of course, depends upon the volume of the business handled, and the character of the demand and the nature of the processes. Generally, the planning department operates with a central office. There the major details are deter- mined and provided, and then the plans developed are executed by means of departmental offices of the planning department. The central department is the point of control and the place of issue and receipt of all instructions pertaining to production. The work of routing and scheduling is carried on there, and dispatching originates and is transmitted there- from to the department stations where a board car- ries the work scheduled and assigned by the central planning department in the manner described in the preceding chapter. It is very desirable to have a definite and well arranged station for the departmental representatives of the planning department — booths furnish a very desirable equipment for the work. In Figure 99, therefore, I am presenting a sketch of a production booth which was designed from standard size metal, angles, and wire, and which makes an economical and satisfactory construction. 202 PLANNING AND TIME STUDY ORGANIZATION 203 Duties of Depaxtmental Office.— The division of work in the central planning department office varies according to the number of individuals in the depart- ment. This in turn varies with the volume and kind of business, but the division of authority is such as shown in Figure 100. The material clerk has charge of all stock records. He is responsible for the accuracy of the records and Planning Dept. Manager Material Clerk Routing Clerk ±\ Scheduling Clerk Despatching Clerk Departmental Despatch Clerk FIG. 100. ORGANIZATION CHART SHOWING DIVISIONS OF AUTHORITY WITHIN THE PLANNING DEPARTMENT either the direct follow-up of purchases or the follow- up of the purchasing department. This clerk enters all receipt of material on the stock records, and checks production orders against his records to de- termine the availability of stock. He posts all requi- sitions and frequently must extend them, and keeps a running balance of stock on hand which must be in a state of constant checking by actual count of the material. The routing clerk is responsible for all records in connection with the requirements for processing work. He is responsible for the completeness and 204 PLANNING AND TIME STUDY accuracy of the operation cards, and must arrange to provide operation cards for all new work. The scheduling clerk has in charge the most vital work of the entire planning department, and it is he who must keep in constant touch with the chang- ing requirements of delivery, make all promises, arrange automatic ticklers on promises, and so sched- ule or plan the work as to meet the delivery require- ments on time with success and least expense. His work is the high point of the department effort, and usually requires the very same qualifications as those demanded of the manager of the department himself. The dispatching clerk directs the execution of the work as scheduled, either directly or through assist- ants in the departments. He is required to keep in close touch with the scheduling clerk and to report all difficulties with or departures from the schedule made. The departmental dispatchers simply operate as described in the preceding chapter and execute the orders as received from the central department. Recapitulation.— It should not be inferred from this discussion of duties and men that every planning de- partment requires such extreme organization. The main point is the division and the character of the work required. Frequently, if the plant is small, all of the work will be done by one or two individuals— sometimes by the planning department manager him- self. In general, however, it is 'better to keep this man- ager, as every other responsible executive, free from detail, and simply have him watchful of the entire ORGANIZATION 205 panorama of production as carried on by his assist- ants, seeing it in perspective and being careful of the general policies on which the production or planning is conducted. This completes the discussion of the planning de- partment organization, and the remaining portion of this treatise will be devoted to a detailed description of the principles established in the foregoing chap- ters, as represented by the installation of a planning system in the plants of several different types of manufacture. AN AUTOMOBILE SPRINGS FACTORY 207 CHAPTER IX PLANNING APPLIED TO THE MANUFACTUEE OF AUTOMOBILE SPRINGS Nature of Business. — The automobile industry is unique in many respects, but its outstanding feature is the extreme rapidity of its development and the final appearance of standard part production, such as springs, axles, motors, and so on, which are made by individual companies and sold to automobile manufacturers for the assembly of their cars. The planning system about to be described was installed in one of the leading accessory, or standard part, companies which has enjoyed remarkable growth and well-deserved success. The part made is the flat leaf spring. The keynote of the prosperity of the company was contained in the insistence on service which the directorate maintained and which ran through the entire organization. The actual manufacturing processes were simple — mechanically — and few in number — about seven to fifteen; but they necessitated tlie closest technical control in the heat treatment to which the springs were subjected. This care was exercised by a very complete metallurgical laboratory and by an elaborate equipment of recording pyrometers, and other de- vices. The processes themselves involved no great 206 amount of time, and the manufacture might be stated to have what is termed a quick turnover — only a matter of four or five days from raw material to completed product. Demand for Product. — The demand was represented by a great variety of individual specifications, so that the product was very unstandardized. It is sur- prising that automobile springs are not more similar in design and specification, but, practically, not one plate in a spring of one specification is identical to the plate in the spring of another specification. This has resulted in a great range of work and a complex delivery or service problem. The automobile trade is notable for the shifts and extremes in its demand for service — a factory may telegraph for express de- livery and al'jer it on the same day with a request for delay or even for cancellation. It was the exacting requirements of this demand as well as the desire for economy that led this com- pany to introduce the planning system here described. The company supplied the best of the trade, from the smallest to the biggest consumers, and its engi- neers were constantly in touch with the needs of its customers, reporting regularly to the plant office. To summarize this description, the manufacture consisted of many different types or specifications of springs produced on orders of great extremes in size, and it was subject to and ready to meet the many sudden and exacting requirements of delivery. Master Specification Sheets.~The system installed started with the receipt of orders calling for springs of definite specifications. These orders were referred 208 PLANNING AND TIME STUDY ■ if*< . . OltkmOr4m ! A ■ P VklaVta V A ■ . . PrW ■ ,^ Bum .. ... *-- -t-- ■■^.LW t«k MOOCL TTW V10TS MXiSAni ' ■■anctTioH MBcr ML cvnomtt DCUVUT SFtCmCATIOlW AKH CKEDfT lamnim madic and baumci dui •M VM . ■ -^^ ^ . , ^— -^ -""- L^ I 1 y '^"^ ^^ 1 — -J *— -^ l^SJ 1 1 SkiFpiHOriw fWA> Ifa . . 1 - - 1 MOOO. TTK viim HO LUVn 1 ncincATWimKr Ml CUROillM ■uii run (Ml r abt na DCUVnV MTCmCATIONS 4lI«D cbiimt .. SBITMENTS MAOI AND BALAMCI DUB •M •«■ •Mir* ;:7=^ L*^^ Lj \^ 1 J FIG. 101. COPY A. OFFICE ORDER RECORD COPY D. — SHIPPING ORIXER RECORD AN AUTOMOBILE SPRINGS FACTORY 209 wt^^mm* iKsi^mm . ProdnctiM Order fWt* w. - ' 9tmJt Addna SUpVi P.6.B. Order! Invoke MtooeOi ■ - 1 m _ , Ma. tf« n.te Vir*.^ 1 Std.1 1m P.^ uwo«w lofon ■alion -^ _ 1 QUANTITY MODEL Tvre WIUTH NO. LEAVES SPEOFICATION SHEET NO CUSTOMERS BLUE PRINT NO, PART NO. DELIVERY SPECinCATIONS | ' ••*« wa«t*t* . — 1 FIG. 101. COPY B. PRODUCTION ORDER RECORD Matci^lal Order AAlnM. Ship Via . r.0.11. nnl»rN». n... iBToice Date- Jlo.. fiicd Bosh No. MiaceHaocoiu In>onnation . Extras - Ctd. Lba. Each. QUANTITY MODEL TYPE WIDTH NO. LEAVES SPECIFICATION SHEET NO. CUSTOMERS BLUE PRINT NO. PART NO. DELIVERY SPECIFICATIONS FIG. 101. COPY C. — MATERIAL ORDER RECORD L\ 210 PLANNING AND TIME STUDY to the engineering department which examined the specifications and prepared a master specification sheet from which blue prints were made as required. (See Figure 10, page 60.) This specification sheet gave complete manufactur- ing instructions as to size and kind of steel bolts, eyes, shackles, bushings, etc., and the limits of the tests which the spring must pass before acceptance. Hardly any point in manufacture was more scrupu- lously observed than the test, and no spring passed inspection which did not definitely meet the testing limits. The specification sheet also indicated the unit quan- tities, kind, size, etc., of material required for the particular spring it represented, in the manner de- scribed later in this chapter. The Order Record. — The order for a particular spe- cification was then entered on an order register which consisted of four copies. Figure 101, A, B, C, and D. Copy A was kept in the office as a master record. On it was posted all shipments on the basis of which a running balance of unshipped springs was maintained. Copy B was sent to the planning department to inform them of all orders received. Copy C also was sent to the planning department and was used by the material clerk to estimate material requirements. Copy D was sent to the shipping department which kept a record of all shipments made and so had before it at all times the status as re- gards unshipped springs. AN AUTOMOBILE SPRINGS FACTORY 211 This completed the routine of order entry and the description now passes to the procedure in the plan- ning department on receipt of its two copies of the production order. The Production Register. — The data on Copy B of the order were posted on a sheet (Figure 102) known as the Production Register, which showed all the orders received for a given specification as well as the progress in the filling of these orders. This pro- duction register also had a resume of the spring speci- fication in order to prevent error in entry. The actual operation of this production register will be discussed later. Record of Stock Requirements. — ^^The next step in the handling of the sales or production orders was to estimate the material requirements. This was .done on the basis of Copy C of the order register which was posted on the Record of Stock Require- ments shown in Figure 103. Reference to this form will show at the left the method of entering an order and computing the requirements as to steel and the further use of the form to show the quantity sched- uled, etc. The form operated somewhat as follows: The material clerk referred to the specification sheet covering the particular spring ordered. The specifi- cation sheet showed what steel was required, both kind and size and the amount of each. The order was then entered on the stock sheet of that kind and size of steel, and the amount to be ordered was entered in the ** total required" column. Record of Operations. — This describes the routine of the production or planning department up to the 212 PLANNING AND TIME STUDY AN AUTOMOBILE SPRINGS FACTORY 213 1- i 1 llAm wn -;:::::::-::r:::: _... — . ____. j , J I. \ 2 .1_1.1A.LLLL i.i.I.LLl.ii.i.l 1 !: C «_J_J_J_J_I_i_i_i- S.i_2.i-Lj_i_Li_i 1 !, g ::::::::::::::::: '«^^ S .jJJ.i.i.i.iJ. iiJ.l.l_Ll.i.l_lJ I_ 1 i ■ J 1 ? 1 ? ? 1 ? 1 ^1 ] IT] 1 1 I I I "" " ^ ^ -' I -■ i i i 1 A.LLLLl.LlA. " - } Ll-.i_i.i.i.i.i_i_i ZiA IaAa.'lll --- i il^iilll ^LIAAAAA, LL a !___ Ill > ^ I -i--i-£i_i.i.i_i_i .1-1-1. l.i. I-ILLI- 2 - i ^ K - ' _.i-I.i.i_i_i.i.I ul-l_l-l-I-l.I.Ll- - S 1 -i-I-i.I.I-lLLL.1 ^LLLIAAAAA. & [:::: _ s ^ '-.Li.i-i.i.LI.l AAAAAAAAA. !;; i 5 1 ~~ T ~ 1 J I T r I I r I T i~i~rrrrvvv -- { " Q } 1 y ! 1 'Tl'lTWri ^] TFT ! T T 7 T T . — _ _.- I i 1 ______ 1 £ r 1 1 1 1 J 1 ! T" I .i_l.I.i.i-I.l.l_i. """" j - -- 1 J ri-T-r-r-rr"! ^^' I I I I I I I L ^ -^^ "- ! 1 1 ! i 1 } 1 1 I —i--L._L.l-t.-L_E.-L.-C. 1 j_:i:i:i:l:[:i:[:i T T 1 T f r 1 T r i i J ___ i _ l_I_L.l_L_LJ-J LLLlLllLl 1 1 1 1 1 o o 09 O 03 o M 03 CD § O P 8 04 O o u u o: § 1 bi (A 1 o IE 8 ! u a i k i ,1 :::::::: r . If ^i ± t i i t ii 1 |i f' 1 «! o 1^ w o s hi i w z w y 1 w IC 3 i 2 -j- : li 1 P i i ■ " . - - - - - -|- t _ _ _ 1 - 8 ■ ------- - - -| t __ - ___ « ^ _ __. 1 i ■ - - __ - - - - . ?_]_ -__ -__.__ 1 ► ! . 71 .-- _--- -, f ij _ _ _- 1 - r "~" "" --- -- - 71 I": :::: ::: ::: : :::: -.: -: Jj T fj iii 1 fi fir |i 1 h I 00 o o H OQ i (J CO o o 214 PLANNING AND TIME STUDY AN AUTOMOBILE SPRINGS FACTORY 215 point of actually starting production. As the basis of planning it was of course necessary to have on record the sequence of operations for each spring specification, the equipment on which it was made, and the unit of time required on that equipment to produce that particular specification. Operation cards, Figure 104, were made for this purpose and were filed by specification number. The NAMP OPERATION RECORD MODEL VCAR «pr<7iri<-ATi/M^ - KiOI»M on PIXTURt NO. •CTTiNO ur AND TAKINa C30WM TIME ptn lOO MATIO 1 FIG. 104. OPERATION CARD card itself gives further description of the spring and then shows the list of operations, as to the sequence, departments, the equipment or production unit, and the time, the last or ** ratio'' column show- ing the relation or proportion between the unit times of one operation to the preceding one. The operations on a spring varied in number from eight to sixteen, according to the specification. The principle of control used was as follows: Orders were divided into lots for convenience of handling, but these lots could not be based on a uni- form number of springs because of the great differ- ence in weight between a pleasure car and a truck FIG. 105. TRUCK LOAD OF AUTOMOBILE SPRINGS, SHOWING METHOD OF PILING FINISHED PRODUCT spring. Hence, a truck load of a weight of 3600 pounds was used to measure a lot unit, and the num- ber of springs in a lot was determined by this weight divided by the individual specification weight of each spring. Dispatch Cards. — Accordingly the work was routed through in lots of 3600 pounds. The movement was controlled by a series of dispatch cards made out for every operation, as illustrated in Figures 106 and 107. These cards were 3 by 5 inches in size. A set was made out for every operation of every lot to be produced and the cards were filed in the control I INTENTIONAL SECOND EXPOSURE 214 PLANNING AND TliME STUDY point of actually starting production. As the basis of planning it was of course necessary to have on record the sequence of operations for each spring specification, the equipment on which it w^as made, and the unit of time required on that equipment to produce that particular specification. Operation cards, Figure 104, were made for this purpose and were filed by specification number. The NIAMF OPERATION RECORD MODFL YPAP cPFr-iPir-ATiriM kin - . STEEL HFAT , FINISH NO PI ATFS PLATE NO 1 OFCAATION OIPT ^WOOUCTIVt UNIT FORM OK FIXTURE NO SITTtNO UF ANO TAKING DOWN TIME wtm too MATIO 1 FIG. 104. OPERATION CARD card itself gives furtlier description of the spring and then shows the list of operations, as to the sequence, departments, the equipment or production unit, and the time, the last or ** ratio'' column show- ing the relation or proportion between the unit times of one operation to the preceding one. The operations on a spring varied in number from eight to sixteen, according to the specification. The principle of control used was as follows: Orders were divided into lots for convenience of handling, but these lots could not be based on a uni- form number of springs because of the great differ- ence in weight between a pleasure car and a truck AN AUTOMOBILP] SPRINGS FACTORY 215 FIG. 105. TRUCK LOAD OF AUTOMOBILE SPRINGS, SHOWING METHOD OF PILING FINISHED PRODUCT spring. Hence, a truck load of a weight of 3600 pounds was used to measure a lot unit, and the num- ber of springs in a lot was determined by this weight divided by the individual specification weight of each sjjring. Dispatch Cards. — Accordingly the work was routed through in lots of 3600 pounds. The movement was controlled by a series of dispatch cards made out for every operation, as illustrated in Figures 106 and 107. These cards were 3 by 5 inches in size. A set was made out for every operation of every lot to be produced and the cards were filed in the control 216 PLANNING AND TIME STUDY board shown in Figures 108 and 109, according to specification, lot numbers, and operations, respec- tively. As illustrative of a set of these dispatch cards the operations on a certain spring are listed herewith — a card being prepared for each operation. Shear Eye form (main plate only) Eye ream (main plate only) Punch center hole (main plate only) Trim Punch center hole Grind Camber Anneal Open test Assemble Finish test The main plate operations involved a different rout- ing, and the main plates were kept on a separate truck, the two trucks meeting and combining at the cambering operation. The color of the dispatch cards was yellow for regular production; but whenever a rush lot became necessary, a set of red dispatch cards were made out. Eed meant precedence in the shop, and whenever a red dispatch card appeared it was handled imme- diately. The work tag in such a case was also red. This made the lot in question appear very distinctly on the floor and assisted the move man or trucker to locate it. AN AUTOMOBILE SPRINGS FACTORY 217 SPEC. 135 DATE LOT 37 NUMSrR OF SPftlNCS 100 SHEAR NUMBER or PtATCS 500 PUTE NOS. 3-7 STtfL TO BE USED REG. GRADE SUBSTITUTE El WIDTH 2 SHEAR FROM CROPPINCS LOC IN| WEIGHT SECT SCRAP PRODUCED FROM CROPPINCS FULL BARS SECT SCRAP PRODUCED FROM FULL BARS TOTAL WEIGHT GAUGE WEIGHED BY ENTERED ON STEEL RECORD ENTERED ON PROD RECORD CHECKED BY DATE DATE MAN'S NO DATE PLATE NOS. TOTAL SHEAR FOREMAN CUT FROM STOCK AS ABOVE DESICNATED STEEL STOCK-KEEPER SPEC. 135 LOT 37 NO SPRINCS PCR LOT 100 OPERATION CAMBER NO SPRINGS BttWSCO 2100 TO FOLLOW 718 SPEC. NO. '" ocn.MO. 12 DUE TO COMPLETE MACHNO. 86 CHANGE TO CHANGE TO PLATE 1 B NOS. l-O TOTAL OAA PLATES *"' DATE EMP. NO. NO. OF PLATE ' PLATE NOS. UNIT N«. 1 HNISHEO STARTED ♦ ACTUAL TIME EFFICIENCY ALLOWED HME FIGS. 106 AND 107. DISPATCH CARDS Making Out the Dispatch Cards.— The work of making out these cards proved to be enormous, as hundreds of lots had to be prepared for entry daily. At first an attempt was made to do this work with the aid of rubber stamps, but this proved too labor- ious and required a battery of clerks. The job was considerably shortened by using the commercial duplicator. This device is an advanced type of mime- ograph; thousands of cards were duplicated on it in only a fractional part of the time required before its use. This experience is mentioned because the great clerical labor of preparing so many cards in this plant 2LS IM.AWiXC AM) TIMK ST^1)^ I I' JtlG. 108. CABINET OF MAyTEH CONTROL BOAKDJ5 AN AUTOMOBILE SPRINGS FACTORY 219 tMU. lOi). LEAi' OF CONTROL BOARD, SHOWING ARRANGEMENT OF POCKETS 220 PLANNING AND TIME STUDY AN AUTOMOBILE SPRINGS FACTORY 221 threatened to become a definitely limiting factor to the whole scheme of control. The solution of the problem through the use of the duplicator was so relieving that this description would be incomplete if its value under the circumstances were not recog- nized and stated. The Control Board.— The control board itself also was a development from several trials, which are detailed here because they will show tHat the design of a system or the mechanical provisions for its oper- ation are frequently a series of rapid developments, rather than immediate and complete creations. This statement is made to inform the student reader, and also to bring to the interested executive the fact that system, like any improvement, is a continual evolu- tion, only at a more rapid rate than normal pro- cedure. The first means used for filing these cards was a box file divided into compartments and longitudinally divided into two distinct sides. Each compartment represented a lot, and as the lot was processed the cards covering completed operations were placed in the right side, the cards of the unfinished operations in the left side, to indicate the condition of the lot and of all the lots. These box files were entirely satisfactory except for the fact that they occupied much space; on that account, however, it was recognized that some form of vertical pocket file was desirable. Designs were made of a revolving cabinet with butterfly panels, consisting of sheet steel pockets, constructed on the principle of time-card racks. But the best solution — PIG. 110. SHEARING OPERATION a plan for a control board — came from the gifted manager of the planning department, and it was car- ried into effect as shown in the photographs, Figures 108 and 109. This control board consists essentially of a metal cabinet into which fit twenty sliding panels; each panel is about 30 inches wide and 50 inches high. The panels themselves are supported on a metal frame, but the pockets are formed by the seaming together of leather cloth, layer on layer. Thus there are in each panel about 480 pockets to a side, about 19,200 in the entire cabinet. The control board is notable for a combination of capacity with excep- tional compactness; the floor space required is only three feet by six feet. INTENTIONAL SECOND EXPOSURE 220 PLANNING AND TIME STUDY ti I threatened to become a definitely limiting factor to the whole scheme of control. The solution of the problem through the use of the duplicator was so relieving that this description would be incomplete if its value under the circumstances were not recog- nized and stated. The Control Board.— The control board itself also was a development from several trials, which are detailed here because they will show that the design of a system or the mechanical provisions for its oper- ation are frequently a series of rapid developments, rather than immediate and complete creations. This statement is made to inform the student reader, and also to bring to the interested executive the fact that system, like any improvement, is a continual evolu- tion, only at a more rapid rate than normal pro- cedure. The first means used for filing these cards was a box file divided into compartments and longitudinally divided into two distinct sides. Each compartment represented a lot, and as the lot was processed the cards covering completed operations were placed in the right side, the cards of the unfinished operations in the left side, to indicate the condition of the lot and of all the lots. These box files were entirely satisfactory except for the fact that they occupied much space; on that account, however, it was recognized that some form of vertical pocket file was desirable. Designs were made of a revolving cabinet with butterfly panels, consisting of sheet steel pockets, constructed on the principle of time-card racks. But the best solution— \ AN AUTOMOBILE SPRINGS FACTORY 221 1 FIG. 110. SHEARING OPERATION a plan for a control board — came from the gifted manager of the planning department, and it was car- ried into effect as shown in the photographs. Figures 108 and 109. This control board consists essentially of a metal cabinet into which fit twenty sliding panels; each panel is about 30 inches wide and 50 inches high. The panels themselves are supported on a metal frame, but the pockets are formed by the seaming together of leather cloth, layer on layer. Thus there are in each panel about 480 pockets to a side, about 19,200 in the entire cabinet. The control board is notable for a combination of capacity with excep- tional compactness; the floor space required is only three feet by six feet. 222 PLANNING AND TIME STUDY • t 1^ 1 { - .1 5 (t 'I' "■ ii& _l m ■1 >- § 1 : n 1 X 5 : : j « , i l:t u 3 A g g i g a * ^^^^_^_p^-^^. 4 O of _..___. X Z 1 Ul < j o a ^ 1::: :::: : :" :: : fel ^ a I CO y 1 v^ i 1 4 1-1 H tH J _. , "C o r R ' ;:::::: ::::::: ! J ::::::::: 3 i , 1 \ 1 ? , * f J : - - . _ : _ ' z — 1 T 1 T r J 1 !• 2S J 5 i __^^_,..,_^ _ AN AUTOMOBILE SPRINGS FACTORY 223 The cards are filed in this control board vertically by lot number, and horizontally by operations, and the first step in production is to send the first card, or shear card, to the stock room. This shear card shows whether the steel used is to be croppings or steel from full bars, and also indicates from where it is to be taken. The stock keeper gives the card into the hands of the foreman of the first depart- ment — the shear department. Record af Stock Withdrawals. — It will be well to consider at this point the stock record used for the steel, shown in Figure 111. This record shows for each kind and size of steel the withdrawals as indicated by the shear card, the amount of steel in transit, and the receipts; given this information, the actual quan- tity on hand may be readily ascertained. The record further shows that the amount of material has been kept at a minimum, as described at length in the Chapter IV, dealing with material. The calculation of the minimum is based upon an estimate of demand, made in order to ascertain the probable requirements; then a definite proportion of this total is established as a reserve, calculated according to the time re- quired to deliver. For instance, assume that the total requirements for six months' sales of a given size of steel is 600,000 pounds, and that the time of mill transit is 60 days. Then the minimum would be set as 2/6, or 1/3, of the total amount required, or at 200,000 pounds. Work Tags.— As the material is sheared, it is placed on two trucks, one for main plates which take a special routing, and one for the other plates. These If'"« 'm\ 224 PLANNING AND TIME STUDY LOT Number of SPRINGS PLATES SHORTAGES Re- bound Half Plate Main 8 10 11 12 13 14 15 16 17 18 REMARKS:- PIG. 112. WORK TAG trucks have a large ticket-holder that projects above the truck itself, and in this holder is placed a work tag some seven inches square (Figure 112), the ap- pearance of which may be better appreciated if the reader will refer to the photograph, Figure 113. This work tag shows in large type the order, lot, and order numbers, and in smaller type the details as to the number and kind of springs. The object of this striking '* signal' ' is to assist the search of the trucker when he is directed to secure a given lot called for on the 3" x 5" dispatch cards. It is possible AN AUTOMOBILE SPRINGS FACTORY 225 PIG. 113. SHOWING WORK TAG IN PLACE ON TRUCK to read these work tags from a considerable distance; naturally they greatly facilitate the movement of the goods and help to prevent confusion of trucks and other mistakes. The shear card is next returned to the planning department and replaced in the pocket from which it was^ originally taken. Its return indicates the com- pletion of this operation, and releases the cards cov- ering the next operation, which are then sent to the forge foreman who places them in a box in one of the various departments in which the production takes place. These cards are taken by the foreman and presented to the timekeeper, who considers their receipt as a formal notice to do the work. The time of starting and finishing the work is stamped on INTENTIONAL SECOND EXPOSURE 'U 224 PLANNING AND TIME STUDY SPEC. LOT Number of SPRINGS PLATES SHORTAGES Re- bound Half Plate Main Plate 10 11 12 13 14 15 16 17 18 I REMARKS:- PIG. 112. WORK TAG trucks have a large ticket-holder that projects ahovo the truck itself, and in this holder is placed a work tag some seven inches square (Figure 112), the ap- pearance of which may he better appreciated if the reader will refer to the photograph, Figure 113. This work tag shows in large type the order, lot, and order numbers, and in smaller type the details as to the number and kind of springs. The object of this striking '* signal'' is to assist the search of the trucker when he is directed to secure a given lot called for on the 3" x 5" dispatch cards. It is possible AN AUTOMOBILE SPRINGS FACTORY 225 FIG. 113. SHOWING WORK TAG IN PLACE ON TRUCK to read these work tags from a considerable distance; naturally they greatly facilitate the movement of the goods and help to prevent confusion of trucks and other mistakes. The shear card is next returned to the planning department and replaced in the pocket from which it was^ originally taken. Its return indicates the com- pletion of this operation, and releases the cards cov- ering the next operation, which are then sent to the forge foreman who places them in a box in one of the various departments in which the production takes place. These cards are taken by the foreman and presented to the timekeeper, who considers their I'eceipt as a formal notice to do the work. The time of starting and finishing the work is stamped on 226 PLANNING AND TIME STUDY AN AUTOMOBILE SPRINGS FACTORY 227 them. As operations are completed the cards are filed in a ''finished-work'' box and collected by a messenger, who makes a tour of the shop every half- hour, removes the cards covering the finished work, and delivers cards covering new work. When these cards are returned to the planning de- partment they are filed in their respective pockets, and their presence indicates the completion of the operation to which they refer. The board thus shows, by means of the returned cards, on which lots opera- tions have been completed. The empty pockets indi- cate what operations are in process, and the cards under these empty pockets showed what operations have yet to be processed. In this manner the con- trol board reflects the status of every lot in process of production, and when demands come for emer- gency service, or foremen wish instructions in regard to delayed work, consultation of this board shows how many lots of the particular specification affected are in process, where each lot is, and how far toward completion the work has been carried. Upon com- pletion of the last operation, as shown by the return of the inspection card, the entire set of cards for that particular lot is removed from the board. The plant in question operated continuously for twenty-four hours. It was necessary to have a repre- sentative of the planning department on duty at all times, and at least one reported for each of the night shifts and handled the filing and delivery of these cards. Record af Production. — The foregoing description covers the method of stimulating and controlling pro- duction. At this point, before passing to a considera- tion of other records, I wish to call attention to the fact that every card which gave directions for work in connection with any operation on a particular lot and spring, showed the time allowed for that opera- tion. Also, the card was stamped to show the time of starting and finishing; and thus the elapsed or actual time consumed by the operation was obtained. The relation between the actual and the allowed time gave the efficiency in per cent of the operation. For instance, assume that a time of 1.4 hours had been allowed on some operation, and that the actual time spent on that operation was 1.6 hours. Then the efficiency would be represented by E = S -t- A, or efficiency would equal standard time divided by actual time: that is, E = 14/16 = 87.5 per cent effi- ciency. This record not only indicated how closely the schedule time was approximated, but it also showed the individual efficiency of the operative and hence gave a valuable record whereby to judge the efficiency not only of the individual men but also of each unit as compared with all the others. In explanation of the word unit, it should be stated that equipment had been arranged according to the unit system as dis- cussed in Chapter V, Equipment, and lots were defi- nitely processed in one of several units. Production Schedule. — ^As the cards were returned from the shop, indicating the completion of the oper- ation for which they called, they were posted on an operating report, shown in Figure 114. This report was a kind of daily docket showing everything which i 228 PLANNING AND TIME STUDY I'l Operating Report 1 ~ - - - - ■~--t -. - - 1-- ■■ -■ — — ' 1 I ij f Ji 1 ji n Ji K 8-' ^ ^ ■ u '^« ] i t * ^ j] n I z t 1 S 1 J J - - - ! 1 1 a — 1 1 4 J J • 1 > , 1 § s Tt< § AN AUTOMOBILE SPRINGS FACTORY 229 had been done on the lots processed during the day, and it was used as an accumulative record for subse- quent posting on, the production register, mentioned earlier in this chapter. If the reader will now refer to this production reg- ister (Figure 102) he will note that there is space in which to post the passage of every lot through every operation, and that there is also space in which to show what lots have been completed. The record thus provided was an accurate inventory of all process goods and showed the complete history of all orders 'by specifications. It was used as the basis of the production schedule according to which the manufacture was conducted. At the top of the pro- duction register there is a place for the entering of all orders received and for a tabulation of them by months. The orders received were executed by months and according to requirements of deliveries as requested by customers; the form used was that shown in Fig- ure 115. The total of all the monthly specifications gave the total production requirement. The produc- tion schedule having been fixed, the capacity of the units and of the equipment was carefully determined to ascertain whether it would be possible to meet the demand. If this investigation proved that the sched- ule time fixed was either greater or less than the units and the equipment warranted, the schedule had to be changed accordingly. If it was necessary to reduce the schedule, care was taken to consider the relative importance of indi- vidual customers, and an attempt made to cause the ,1 230 PLANNING AND TIME STUDY AN AUTOMOBILE SPRINGS FACTORY 231 least possible inconvenience and disappointment — that is, to satisfy the trade so far as possible. The chang- ing of the schedule or program of production accord- ing to the capacity of the units and the equipment was accomplished by means of the operation cards as discussed in Chapter VI, Control Mechanism. When a schedule had been developed which would comply with customers' requirements and also occupy the equipment to best advantage, it was further ad- justed so as to apply to each individual unit; then the week's production schedule for every unit was posted on the respective bulletin boards. This sched- ule indicated the specifications, lots, and so on, which each of the three shifts in each unit were to work upon, and it showed also the standard time w^hich had been set and to which each shift was supposed to conform. Importance of Control and Dispatching.— The ex- planation just given shows in detail the principles in accordance with which the protluction of this com- pany is planned and controlled. I wish to remind the reader at this point that the plan has as its founda- tion the merging of all orders that are for material of the same specifications, and the carrying on of production on a strictly specification basis. Now, by way of summary and review, this plan represents the first active step taken in the new con- trol, and it supplanted the former method according to which each sales order was entered as a separate manufacturing order. Before the new plan was adopted it frequently happened that six articles for the same spring would be in process at the same 232 PLANNING AND TIME STUDY time, and when an attempt was made to determine the quantity of any one specification it was found almost impossible to do so. The method of manufacturing only to specification simplifies control — especially when, at the same time, the quantities to be produced are divided into lots. These lots can be readily controlled, and their limits can be easily changed according to changes in the rate of progress in their production. The next factor of major importance in the system is the dispatch- card control. The exact stage of every operation on every lot is shown, and the arrangement in the con- trol file makes the dispatching sure, and yet it is ad- justable to changing demand. The board itself is a highly ingenious arrangement and is extremely effec- tive. The collection of the record of production on the production register gives a correct record of the status of all orders as well as the location of the goods in process. The analysis of demand to deter- mine a production schedule which will meet require- ments shows no method of special interest or novelty. Of course the schedule thus prepared is the basis of the preparation of the dispatch cards, and conse- quently the impetus to actual production. The first operation in the production of a spring is the shearing; then come various preparatory oper- ations, after which the spring is assembled at the cambering machine. The cambering operation is the one in which the curve, or camber, is given to the spring by a process of heat treatment; it is the crux of spring manufacture, for upon the results depend both the rate of production and the quality of the AN AUTOMOBILE SPRINGS FACTORY 233 FIG. 116. CAMBERING AUTOMOBILE SPRINGS IN A CAMBERING MACHINE product. Conveyor furnaces are used for heating and the cambering operation is performed on a spe- cial machine (Figure 116), whereas under the old- school method this operation was one of hand-fitting. After annealing, the springs undergo a series of fitting operations; then, in the order named, come a test, assembly, final test, and shipment. Spoilage, which is an inevitable part of production, is recorded on the form shown in Figure 117; there is space for indicating both the cause of spoilage and the quantity of material to be replaced. The form is designed to show also the cost of the spoilage. When these costs are extended, the reports can be sorted and tabulated by causes and the amount last repre- sented by these causes; further, if necessary they can INTENTIONAL SECOND EXPOSURE \i k ill "I 232 PLANNING AND TIME STUDY time, and when an attempt was made to determine the quantity of any one specification it was found almost impossible to do so. The method of manufacturing only to specification simplifies control — especially when, at the same time, the quantities to be produced are divided into lots. These lots can be readily controlled, and their limits can be easily changed according to changes in the rate of progress in their production. The next factor of major importance in the system is the dispatch- card control. The exact stage of every operation on every lot is sliown, and the arrangement in the con- trol file makes the dispatching sure, and yet it is ad- justable to changing demand. The board itself is a highly ingenious arrangement and is extremely effec- tive. The collection of the record of production on the production register gives a correct record of the status of all orders as well as the location of the goods in process. The analysis of demand to deter- mine a production schedule which will meet require- ments shows no method of special interest or novelty. Of course the schedule thus prepared is the basis of the preparation of the dispatch cards, and conse- quently the impetus to actual production. The first operation in the production of a spring is the shearing; then come various preparatory oper- ations, after which the spring is assembled at the cambering machine. The cambering operation is the one in which the curve, or camber, is given to the spring by a process of heat treatment; it is the crux of spring manufacture, for upon the results depend both the rate of production and the quality of the AN AUTOMOBILE SPRINGS FA( TORY Zoo PIG. 116. CAMBERING AUTOMOBILE SPRINGS IN A CAMBERING MACHINE product. Conveyor furnaces are used for heating and the cambering operation is performed on a spe- cial machine (Figure 116), whereas under the old- school method this operation was one of hand-fitting. After annealing, the springs undergo a series of fitting operations; then, in the order named, come a test, assembly, final test, and shipment. Spoilage, which is an inevitable part of production, is recorded on the form shown in Figure 117; there is space for indicating both the cause of spoilage and the quantity of material to be replaced. The form is designed to show also the cost of the spoilage. When these costs are extended, the reports can be sorted and tabulated by causes and the amount last repre- sented by these causes; further, if necessary they can 234 PLANNING AND TIME STUDY AN AUTOMOBILE SPRINGS FACTORY 235 n DEPT. SPOILED OR DEFECTIVE WORK REPORT WORK TAG NO DATE .191 SPEC. NO. OPERATION LOT NO. PLATE NO. NO. OF PL. 8 10 11 12 13 14 CAUSE SIGNED MAN'S NO. FOREMAN Both Copies must be sent to Production Department at once PRODUCTION DEPARTMENT REPLACE ORDER ENTERED SCHEDULE ADJUSTED COST DEPARTMENT LABOR EXPENSE MATERIAL TOTAL PIG. 117. SPOILAGE REPORT be sorted and tabulated according to the units in which the losses took place, and thus a comparative control of the several units can be obtained. Activity Reports. — The foregoing review describes the method of control and dispatching and the keep- ing of material records. In conclusion I shall pre- sent the plan for certain other reports which were part of the general scheme. The cambering machines represented the point at which the rate of production was governed, and it was therefore necessary to keep a close watch on their activity, for an avoidable idleness represented a needless loss. Accordingly very complete activity reports were kept, covering the operation of these machines. The form used is shown in Figure 62, page 130. These reports were kept by the three shifts and STOCK RECORD OESCR'"'""" cvMRrti wpi GHT AND C UIIKIIMI IM iAIIGF,. lAiCI/^UT V 1 LOCATION ORDER QUANTITY — 5-p-E C IF OATS O'DIANO I C D OUANTITI DAT! Ft £.C OIOIKNO E 1 V E OUANTITT DATE SS U O.K.II. E D OUANTITT BALANCE DATt OUAHTITT APPLItO OIN OKUtKS DATt Out. NO I OUANTITT DATC QUANTrTY 1 FIG. 118. STOCK RECORD were sent daily to the production department, where they were summarized on the report shown in Figure 63, page 131, which was designed to show the total amount of idleness of the machines and the shifts, the causes, and the idle time of each shift as compared with that of the other two. Miscellajieous. — The records used in connection with the handling of steel — which was of course the big factor in expenditure — ^have already been illus- trated and described. The bushings and bolts, and so on, as well as the supplies were recorded in some- what more simple form, as shown in Figure 118. This card was kept by the material clerk in the plan- ning department, and to it were posted all receipts and issues. The receipts were based on the receiving report (Figure 21, page 77), and the issues were authorized by requisitions. These requisitions were bound in books of convenient (pocket) size, and every foreman was provided with a set. The purchasing of supplies and the like was ac- complished by means of a requisition, and the sup- plies were maintained on a minimum basis. The 236 PLANNING AND TIME STUDY IP I steel required was contracted for according to an estimate based on the judgment of the president and the general manager. Current specifications were made out in advance from the monthly requirements shown in the production register, and after that the record of the movement of the steel was carried on the steel stock record, shown and described in the beginning of this chapter. Shipments were made as the springs were finished, and except in the case of customers whose orders were very large, no great stock of finished springs was kept on hand. Summaiy. — ^^The most prominent characteristic of the system that has been described is its simplicity in view of the large volume and great diversity of the production it controlled. The principles of the production schedule are clean-cut, the method whereby that schedule is carried out is practical and thorough, and the results are what would naturally be expected. The order register in which the orders are originally entered, the production register, and the control board give a complete and current record of the unfilled orders and show precisely the stages of the operations being performed with a view to filling those orders. The stock records cover com- pletely the material requirements; they include the amount of detail essential to clearness without in- volving so much as to make the records complex. This entire system of planning makes production a comparatively simple and easily managed process, and renders it possible to give the customer the great- est possible satisfaction with respect to deliveries. CHAPTER X ELEMENTS OF PLANNING APPLIED TO METAL-STAMPING MANUFACTUKE The Line of Manufacture. — The planning system detailed in this chapter was designed for a company which makes a very high-grade line of metal table- ware; the product comprises chafing dishes, perco- lators, casseroles, and so on, the finish and quality of which are of such character that the company stands first in reputation with the trade. There are over five hundred different articles in the line, rang- ing from a simple holder for a condiment set, to a coffee machine of several complicated parts. The manufacturing process consists essentially of assembling various stamped parts, soldering or press- ing them together, and then buffing and plating the article thus assembled. The departments of manufacture are as follows: Press Department Spinning Department Soldering Department Automatic-Buffing Department Plating Department White-Metal Department Hand-Buffing Department Inspection and Finishing Departments 237 238 PLANNING AND TIME STUDY A METAL-STAMPING FACTORY 239 The line is composed of various staple articles, such as tea kettles and coffee pots, and other articles of a somewhat luxurious nature, such as coffee ma- chines and chafing dishes, (Figure 132).) Demand is stabilized by the production of utilities and shows a seasonal trend only in the Fall when there is consider- able call for the specialties. Copper, brass and alumi- num are the metals used in the manufacture, and they are purchased in the form of circles of very many dif- erent diameters and gauges. The nature of the raw material makes its supply a very difficult purchasing problem, and the control of the supply became one of the first objects of attack in the installation of the production system. Methods of the Company. — The stock of finished parts, for the manufacture of the various articles, was kept on a minimum basis, which was estab- lished only after a very careful estimate of demand had been made. The forecasting of the demand for a line partly staple and partly special, when the fluctuations throughout the year were necessarily great, imposed a very difficult task upon the manage- ment. Fortunately an able president personally as- sumed this responsibility. Complete statistics of the sales of previous years were at hand, and these statis- tics were compiled and tabulated very much accord- ing to the method that was discussed in Chapter III, Demand. With these data before him, and exercising judg- ment of the highest order, the product of many years in the business, the president prepared the estimate according to which manufa-cture was conducted and the minimum reserve of finished stock was deter- mined. The method of maintaining a minimum re- serve of finished stock was employed to merge the many different sales orders so that the actual pro- gram of production would represent uniform orders and hence not create a complex and varying operating demand. Distribution was made directly to retailers— a sys- tem that entailed a multitude of orders involving almost endless combination of the articles manufac- tured and considerable variation in the size of the shipments. The New System: Sales Orders.— In presenting the details of the system installed in this particular com- pany, I believe it best to begin with the receipt of the sales orders. When sales orders are received they are posted first for credit, and then are sent to the order depart- ment which is a part of the planning department; upon arrival there they are posted on the card shown in Figure 119. One of these cards is kept for every individual article in the line, and as the orders are received they are applied against the balance which is shown by the card to be on hand. Whenever the balance is brought below the minimum that is indi- cated on the card, the order department issues a pro- duction order for the quantity that has been contracted for, which the card also shows as the desirable order quantity to be produced. The method by which the minimum of finished parts and the order quantity is determined, is this: Assuming that the estimate of demand is that given 240 PLANNING AND TIME STUD^ A METAL-STAMPING FACTORY 241 6 z u D J < < V Q X U bJ K !;; O bJ X (A Z d u J u 1 u Q. Q. I lA • 2 1 • 2 i • 1 • =- — ■ 1 ! t 1 i 1 > o u i 1 m s M i -= = =^ * IT Q I) 1/1 a z o u i 1 m - — -= — — - 1 i It z 7 2 • Ik O e u a K o w -i 01 < o w a Q a O 1 m S (J 3 l| Q 03 O O O (-1 CJ o 5 below, the minimum is calculated as so many days' supply of the sales for the particular period. Casserole No. 189 ESTIMATE OF SALES 1st 2nd 3rd 4th quarter quarter quarter quarter . . . 40 doz. 60 doz. 50 doz. 80 doz. The minimum is a 45-day supply, or 20 dozens, for the first quarter; it changes each quarter. The pur- pose in establishing a minimum is to provide a quan- tity large enough to meet the demand for a length of time sufficient to allow of the production of the desirable order quantity. This time of course is a direct function of the size of the desirable order quantity, which in turn is a complex function of the variety of the line, the nature of the process, the amount of '* changing time'' (or time consumed in setting up and taking down tools, and so on) and the requirements of delivery of material. The determination of the right size of the desirable order quantity is one of those problems of balance, or selective economy, which are frequently met with in husiness, and which are not matters of direct measure and high mathematical solution so much as of instinctive good judgment based on the lessons of extensive practice in the particular line. I have seen various formulae that have been devised with the object of calculating the economical size of order from the many variables represented by a wide line and intricate processes, but I have found none that is completely satisfactory. In the particular case under discussion, the desirable order quantity was 242 PLANNING AND TIME STUDY A METAL-STAMPING FACTORY 243 ! ■til iff.) < M M IS ti 111 I 0) i z lis ^ 'fi Q. ^g w IJ i o s O o w o deduced from the data concerning the past orders issued. While these data showed great range in sizes of orders, close study and the use of a process of selective averages made it possible to establish an order quantity for each article in the line. The Farm of Order. — Now let us consider the form of order. This installation was of the same type as one of the cases described in the Chapter III, Demand: that is, a copy of the specification sheet was used as the production order. The specification sheet used is shown in Figure 120; it wais prepared according to the design there shown, and is printed in hectograph ink. This sheet gives complete details of every item that goes into the production of the article it describes. Every part number is shown, every sub- or semi-assembly, and every detail in con- nection with the material used. Not only are the kind and size of material specified, but also the cuts, and so on, that would be indicated on the standard sheet for the part in question. All this detail is typed in hectograph ink, the com- plete specifications are then duplicated, and a specifi- cation sheet for every article in the line is kept on file. When the shipments bring the stock below the allowable minimum, the order department simply takes the proper specification sheet from the file, fills in the order quantity, a serial order number, date ordered, and date wanted, and passes the specification sheet to the planning department. Ordering Material. — ^Before considering the routine of the planning department I wish first to take up the matter of ordering material which, in the case of 244 PLANNING AND TIME STUDY t< j« !•: il! 1.' J'J I'- i In 21 rj h U u u B iJ i i i\ \i § o o 6 A METAL-STAMPING FACTORY 245 this firm, is one of great difficulty and complexity. It had been the former custom of the management to purchase material on a specification basis, established on an estimate of the yearly sales, but this plan had not operated very successfully, chiefly for the reason that deliveries did not synchronize with the actual production requirements. The first step in the determination of material requirements is to make an analysis of the finished product, to check up the component parts, and this is accomplished by means of the part card (Figure 4, page 48). On this card are posted all the finished articles in which a particular part is used, and since the keynote of economy is in extensive interchange- ability and duplication of parts, usually many finished articles are posted as using the same part. Then an estimate is made of the probable sale of each of these finished articles, and that estimate is extended to include the total quantity of the finished parts which the program of expected sales would call for. This information is used first to determine what reserve of parts should be carried in part stock, for the manufacture is conducted on the principle of assembly from a finished-part stock. This record of finished parts is kept in a form which will be de- scribed later; the immediate point to be discussed is the method of keeping up the supply of raw material and the records involved. Material-Stock Record.— The best way to present this matter is, I believe, to discuss the material-stock record itself, Figure 121. If the reader will refer to this figure he will see that the information con- 246 PLANNING AND TIME STUDY cerning the use of the material is transcribed in the column on the extreme left. Here are shown the part-name, the catalog number, the piece part-num- ber, and the '*cuts" which can be made from the particular size of circle or sheet of metal. That is, the stock sheet covers, say, a large metal sheet, and under **Cuts" is shown how many of the particular part can be obtained from that sheet. That informa- tion is required in order that '* parts," in terms of which the quantities are estimated, may be translated into terms of the unit of raw material, for it is these terms which are employed in the purchasing of the parts. The minimum is a sixty days' supply; the minimum is calculated from the quantities of estimated sales, and is estimated anew each quarter. This minimum and the desirable order quantity (or unit) are posted at the bottom of the record opposite the caption at the left, ** Notes,'' and at the base of the column headed '* Minimum Quantities & Desirable Order Units." The needed material is then purchased whenever the available balance falls below the minimum that has been set, and at that time the size of the order will be the desirable order quantity. The record of all purchase orders is kept in the ** Material Ordered" column, in which the sub-heads are, the requisition number, date of order, date of shipment, ** ordered from," order number, and amount. Re- ceipts also are posted in the raw-material record, as shown, under the heading ** Material Received." The form of purchase order used is shown in Figure 122. A METAL-STAMPING FACTORY 247 PURCHASE ORDER TO ORDER NOil663 DATE IMPORTANT! Ackn«wleda* ThI* Order and Advise if You Will PolTitively Ship On 1 ■ -^ ' •■'■ ~~ ^ -^ — ^ ~ SHIP VIA MARK SHIPMENT APPLY AGAINST TERMS F.O.B. REQ. NO. PLEASE NOTE Mail Invoiee in Dnplieate and alao Bill o» Ladinc with .Each Shipment. Order Number and Packiiw Case Numben MiMt Appear CO Invoice. QUANTITY ITEMS PRICE FIG. 122. PURCHASE ORDER DUPLICATE PURCHASE ORDER Ta DATE FIL€ SHIP VIA MARK SHIPMENT APPLY AGAINST TERMS F.O.B. REQ. NO. QUANTITY ORDER N0.l6$3 DAIE I I I I I r I I I I I I SHIP ON - ' RUSH ITEMS "ll QUANTITY ENTERED ACKNOWLEDGED PROMISED O.K. FOR RLE OATC F.O. ITEMS SHIPPED RECEIVED FIG. 123. DUPUCATE PURCHASE ORDER 248 PLANNING AND TIME STUDY A METAL-STAMPING FACTORY 249 It is made out in duplicate; the original goes to the dealer, and the duplicate is used for the purpose of follow-up and also in maintaining a record of re- ceipts, and so on. Material applied is handled by the production de- partment on the basis of production orders and ac- cording to a system which will be described when these orders are considered in detail. The actual deliveries are posted from the requisitions indicating withdrawal from stock; the delivery system will be described later in this chapter, together with the handling of requisitions. The raw-material sheet, then, indicates the use of the material and furnishes an estimate by means of which the minimum reserve may be fixed and, once fixed, may be regulated on a strictly stock-sheet principle. In other words, orders, receipts and actual withdrawals are posted, as well as applications, so that an actual balance and an available balance are reflected at all times. So much for the method of supplying material; the work from this point on becomes essentially a matter of plan- ning effort. Part-Stock Record. — ^If the reader will refer to the part card (Figure 4, page 48) and the estimate of sales shown thereon, he will notice that this card indicates the total quantity of each part which the estimate of sales has forecast; the information on this card constitutes the basis for the decision concerning the minimum number of parts to be carried in stock. From this card a list of every part made is drawn up, and the minimum quantity of parts is posted on that list, which is then posted on the part stock rec- ord (Figure 124). For every part that is made there is such a record, which is filed according to the number of the part. It records, in addition to other data, the production, by quarters, of previous years, so that an excellent basis of comparison with past conditions is always at hand. The record itself is simple in prin- ciple; it merely indicates all production orders issued for the part, all receipts in stock, all deliveries, and the actual balance on hand. This part stock record is used in conjunction with the manufacturing order which, as may be recalled, is made out in the form of a specification sheet (Fig- ure 120). Upon the receipt of such a manufacturing order, the part stock clerk consults the part record to determine the number of parts in stock, and indi- cates in the columns shown thereon whether the parts are **in stock,'' **on production order number," or **on purchase requisition number." That is, if a part is not in stock, it means that the stock is below minimum limit, and that a production order either must be isued at once or will have to be issued in the near future. If a production order is needed to secure certain necessary parts, it is made out and the parts are indicated according to their respective order numbers. But if material is lacking when the pro- duction order (Figure 125) is applied on the material record (described later in detail), the purchase requisi- tion for the material is shown on the manufacturing order number. In this manner it is shown whether all the parts referred to on the specification, are in stock or not. The work in connection with manufacturing orders 250 PLANNING AND TIME STUDY A METAL-STAMPING FACTORY 251 u u z < _ J < 1 — 1 Ll = = 1 s j I i i 1 — = pr ^ F— ^ ' — -^ ^ u; :z =-4J h h flC < Q. 4 ""■ a ! J i ( _ ■ 1 — — — — • i I i i 1 — — = : ' LI \i i 1 1 1 t»- : (t 1 i J u o: u Q It - E 3 E c i 1 i i 1 - _» = = 1 ^ « e^- 1 S Si 1 1 1 ! I -^ ^ § PES o o Eh 02 g 2 DATE PRODUCTION ORDER NO QUANTITY PAST 0« ASSEMBLY NO. ARTICLE DATE WANTED' PHOOUCTION 0«01W AWAITING COMI'LCTIOM DCPT. NUMBCR Pieces RCCCIVCO IN in.ANNiNa otrr. DATE REMARKS rill«T« (CCONO* , ' FIG. 125. PRODUCTION ORDER is closely checked, and when the parts are ready the orders are entered for detailed planning of as- sembly; but until the parts are ready the orders are held on file pending their completion or the receipt of material. Production Orders.— Production itself, then, con- sists of two distinct phases: the production of parts and sub-assemblies to stock; and the production, on final assembly, of finished articles from this stock. ^ The form of order used for authorizing production is shown in Figure 125; yellow cards are used for assembly orders and green cards for part orders. The production order, which is entered serially by number, describes the production desired and gives the date on which the goods are wanted. Further, as a cross reference to the specification-sheet manu- 252 PLANNING AND TIME STUDY A METAL-STAMPING FACTORY 253 M MATERIAL REQUISITION r*! A«iCiPir-ATiOM No. Date DELIVER TO DEPT. QUANTITY DESCRIPTION UNIT PRICE TOTAL VALUE QUANTITY OF SCRAP VALUE OF SCRAP - MOTE-DO NOT 08I THl« IICOOISITION fOH SIGNED -. .».^.^„ ^.^ MOn> THAN ONC CLASSIPICAf ION . FI.AKHIHC OCFT. FIG. 126. MATERIAL REQUISITION facturing orders, the production orders indicate to which of these manufacturing orders it is committed, as shown in the column on the manufacturing order headed **0n Production Order Number." The dis- cussion has now brought us to the point of actual demand against production (as represented by the production orders) either for parts or for assembly. The next consideration is the manner in which this demand is filled; in other words, the processes of scheduling and dispatching call for our attention here. Scheduling: and Dispatching. — The basis of plan- ning is, again, the operation card, which is made out for every part sub-assembly and final assembly. This card is complete, showing the sequence of oper- ations, the equipment on which the operation is per- formed, and the time required for each operation. The size of the production orders is established in order that splits may become a rare necessity, and it is the purpose to process the full quantity of the production without any division into lots. The first step in the planning is to have the part production orders checked against the material rec- ord and then have them applied. At this time a ma- / c WORK TAG ORDER NO QUANTITY PART NO ARTICLE j FIG. 127. WORK TAG terial requisition (Figure 126) is made out and is clipped to the production order. Then a full set of small 3"x5" cards is made out for each operation which has to be performed on the part or assembly, and this set of cards is filed in the '*To Do" side of a box file, much in the manner as that described in connection with the previous installation. At the same time a work tag (Figure 127) is made out (green for parts, and yellow for assembly orders), and this tag accompanies the work through the plant as a badge of identity. 254 PLANNING AND TIME STUDY A METAL-STAMPING FACTORY 255 I = E U) ^- ■ 5- = ---: Z o^EE--: < • E J E Q. - = = E i^' ~ 7 V 5iy _ _ . ] r pii^ -\t i_, :. t_ i ■ t_ » s fl Y 11 . il M !li. _ . if r . L l!^- -H 1 u [ m J V i \ . il'.... J U 1 « 1 o z Q z UJ UJ. Ul o z h- Ul UJ z (0 d z < • Q (0 c 3 — • — m — •> ft • • = • a N -• ■ ?^ « n g J Vi •I 2 ^ In the work of actual scheduling, the first thing to do is to consult the file of 3"x5" cards, to which are attached metal signals indicating various degrees of urgency — thus, red for *'Eush,'' white for ''Nor- mal,'* and blue for ''Stock.'* The various orders, marked with red, white, and blue tags respectively, receive attention in the sequence in which the colors are here named. The object of scheduling is to make it possible to group the production orders which the cards have signalled as requiring planning. When this grouping has been accomplished the operation cards are consulted; from them the time required and the place of the first operation are determined, and these are then transcribed to the planning sheet shown in Figure 128. One of these sheets is made out for each group of equipment consisting of similar machines, for each individual machine, and for every gang of hand operatives. The orders are entered on these plan- ning sheets for the first operation, and are extended on the sheets to show graphically the occupation of the equipment and hence to project the demand and vizualize it vividly in a manner which would be im- possible if only memory were depended upon. Sheets are used instead of a mechanical board because they are flexible and can be handled somewhat more rap- idly in this case than any type of board which could be devised. The sheets are received weekly and any unscheduled orders that remain on any week's sheets are copied on the new set of sheets for the following week. When the first operation on a batch of production 256 PLANNING AND TIME STUDY A METAL-STAMPING FACTORY 257 li OATK ■— n 1 t^nnup 1 ELAPSED TIME MACH. NO MAN'S NC » FINISH HOUR TENTH HOURS TCHTMS ORDER NO. OPERATION START P^INISH PART NAME START * CHARGE {si:;\o FINISH PART NO. START PIECES MARK X HEMC FINISH START (MfN iCt ti OOOt STRAISNT TIME RATE AMOUNT mCCS ttAT« OAV WOMK OOLLAOS CCNTS OVEMTIME TOTAL TIME FIG. 129. TIME CARD orders has been scheduled as described above, a dispatch stock card is made out, which is also a time card (Figure 129). Before this dispatch time card is sent to the department, the requisition and the work tag are sent to the stock department by way of instruction to move the material. The stock- keeper issues the required material and sends the work tag along with it. The requisition is returned at once to the planning department to indicate this movement and to be posted on, and priced from, the material record. This card is filled out to show the number of the group and of the machine that figure in the operation, and then the various other descrip- tive details concerning the order, operation, quantity, and so on, are added. The card indicates the hour and tenth of hour at which the work is to be started. I L tnner Circ/e -Hours Outer Circle - Tenfhs of Hours nearest Six Minutes Can be mode, fo read as chse as necessary up fo Hundreths PIG. 130. IMPROVISED DECIMAL CLOCK DIAL In connection with this time record a clock with a decimal dial is used. When this installation was made in the plant in question, no time clocks with decimal dials w^ere available; this clock was impro- vised by fastening a special dial to the face of an alarm clock (see Figure 130). In each department there is a dispatch board (Fig- ure 131), on which are fastened sets of clips, one set for each machine group. The upper set repre- sents the job ahead; the middle one, the job waiting; and the lower one, the job in process. As the first operation is scheduled and the dispatch time card is prepared, the card is sent by messenger to the board and is placed in the **job ahead" clip, unless there 258 PLANNING AND TIME STUDY A METAL-STAMPING FACTORY 259 I o m 00 0) U o o o cd *" a> ^ %■* "^ ;=: -fi o o C3 O ci<^ d 53 © O) o s -a- be "S as >>? u ^ o ^ 3 O xti 0) 02 .*H 2- a H bo are no jabs ahead, in which case it is placed in the **job waiting'' clip. The department timekeeper — who in the case under consideration was also the representative of the plan- ning department — assigns work from this board. When a machine finishes an order the operative re- ports to the timekeeper, who takes the dispatch time card from the *^job waiting" clip and compares the scheduled time of starting with the actual time. In this manner a direct follow-up of the accuracy of the schedule is obtained, and any serious falling off is at once reported to the planning department. When the job is finished, the timekeeper indicates the finishing time, and the card is collected by a mes- senger who makes frequent trips through the plant. When this card covering completed operation arrives at the planning department, the first step is to record the movement on the file of 3'' x 5'' cards, and the card covering the operation finished is transferred from the **To Do" side of the file to the ** Com- pleted" side; thus the card showing the next opera- tion to be done is brought to view. The dispatch cards are given to the schedule clerk, who has pre- pared the cards for the next operation which are sent (exactly as in the case of the first operation) to the department board and placed in the **job ahead" clip that represents the machine to be used in the performance of the **next operation." In this manner the entire manufacture, as represented by the production orders, is scheduled and dispatched with a minimum of delay and the fullest possible employ- ment of the equipment. INTENTIONAL SECOND EXPOSURE I ill 258 PLANNING AND TIME STUDY t:r C a; (L Si o x: .:; (jj o Ok CO Si-5 ■i-> !S T *- 2;: o 5 3 A METAL-STAMPING FACTORY 259 are no jobs ahead, in which case it is placed in the **job waiting '^ clip. The department timekeeper — who in the case under consideration was also the representative of the plan- ning department — assigns work from this board. When a machine finishes an order the operative re- ports to the timekeeper, who takes the dispatch time card from the ^^job waiting'' clip and compares the scheduled time of starting with the actual time. In this manner a direct follow-up of the accuracy of the schedule is obtained, and any serious falling off is at once reported to the planning department. When the job is finished, the timekeeper indicates the finishing time, and the card is collected by a mes- senger who makes frequent trips through the plant. When this card covering completed operation arrives at the planning department, the first step is to record the movement on the file of 3" x 5" cards, and the card covering the operation finished is transferred from the **To Do'' side of the file to the ^'Com- pleted" side; thus the card showing the next opera- tion to be done is brought to view. The dispatch cards are given to the schedule clerk, who has pre- pared the cards for the next operation which are sent (exactly as in the case of the first operation) to the department board and placed in the *'job ahead" clip that represents the machine to be used in the performance of the **next operation." In this manner the entire manufacture, as represented by the production orders, is scheduled and dispatched with a minimum of delay and the fullest possible employ- ment of the equipment. ■ V r' if ll ^ 260 PLANNING AND TIME STUDY ,-i.f» ;^ c« .J W n Q M o p o 02 CO w A METAL-STAMPING FACTORY 261 FIG. 133. PRESS OPERATIONS ON KETTLE BODIES 262 PLANNING AND TIME STUDY PIG. 134. AUTOMATIC BUFFING Inspection. — The final step is inspection. The fore- man of the inspection department submits a daily report in which he states what articles have been fin- ished and passed into finished stock, and this report is posted on the stock record (Figure 119); it shows what has been received, ready for shipment. Corre- spondingly, upon the return of the production order for parts, those parts that have. been placed in the stores are posted. This completes the cycle of production and the method by which it is planned. The system that has been described in detail is in many ways fairly repre- sentative of the conditions found in the majority of assembly manufacture. Advantages of the System.— In conclusion, I wish to emphasize some of the strong points in the system A METAL-STAMPING FACTORY 263 instituted by the firm whose methods have been re- viewed in this chapter. First, then, the use of the specification sheet as the manufacturing order proved highly successful; hardly any other method would have sufficed to show the status of the parts re- quired in making up such orders. The fundamental principle of the system— namely, shipment from finished stock carried in minimum quantities— was sound, and was effective when applied in the handling of both the finished parts and the raw material. In fact, the application of the prin- ciple of stock control as established reduced the total investment in raw material, parts, and finished stock, and resulted in an increase of 20 per cent in the num- ber of turnovers of total inventory. The use of the time card as a dispatch card also proved very successful and benefited both the plan- ning department and the timekeeper. The planning-department organization consisted of a manager, a material-supervisor with three clerks, a schedule clerk, a dispatcher or messenger, and de- partmental timekeepers who were also representatives of the planning department. The relation of the planning department to the rest of the organization developed no embarrassments in this company; on the contrary, the department re- lieved a busy and able general superintendent of much detail, so that he found time to consider the institution of broader policies and methods. INTENTIONAL SECOND EXPOSURE ?|i|'l'«| ,( i! ;»J 'E ; . Is 1 if i! (: 1 m i 262 PLANNING AND TIME STUDY FIG. 134. AUTOMATIC BUFFING Inspection. — The final step is inspection. The fore- man of the inspection department submits a daily report in which he states what articles have been fin- ished and passed into finished stock, and this report is posted on the stock record (Figure 119); it shows what has been received, ready for shipment. Corre- spondingly, upon the return of the production order for parts, those parts that have been placed in the stores are posted. This completes the cycle of production and the method by which it is planned. The system that has been described in detail is in many ways fairly repre- sentative of the conditions found in the majority of assembly manufacture. Advajitages of the System. — In conclusion, I wish to emphasize some of the strong points in the system A METAL-STAMPING FACTORY 263 .Si. instituted by the firm whose methods have been re- viewed in this chapter. First, then, the use of the specification sheet as the manufacturing order proved hio-hly successful; hardly any other method would have sufficed to show the status of the parts re- quired in making up such orders. The fundamental principle of the system— namely, shipment from finished stock carried in minimum quantities— was sound, and was effective when applied in the handling of both the finished parts and tlie raw material. In fact, the application of the prin- ciple of stock control as established reduced the total investment in raw material, parts, and finished stock, and resulted in an increase of 20 per cent in the num- ber of turnovers of total inventory. The use of the time card as a dispatch card also proved very successful and benefited both the plan- ning department and the timekeeper. The planning-department organization consisted of a manager, a material-supervisor with three clerks, a schedule clerk, a dispatcher or messenger, and de- partmental timekeepers who were also representatives of the planning department. The relation of the planning department to the rest of the organization developed no embarrassments in this company; on the contrary, the department re- lieved a busy and able general superintendent of much detail, so that he found time to consider the institution of broader policies and methods. A ROPE AND CORDAGE FACTORY 265 CHAPTER XI. PLANNING APPLIED TO THE MANUFACTURE OF ROPE AND CORDAGE The Company and Its Product.— The planning sys- tem which I shall describe in this chapter is used in the operation of a large rope and cordage com- pany. In many ways it is unique, and in the case of this particular industry it represents a pioneer effort. The manufacture covers a wide range, includ- ing over 1500 different ropes of various kinds and sizes — every possible rope product, from the small thread rope to the large towing cable and oil-well cables. The company occupies quite a prominent position in the trade and the quality of its product is not excelled by that of any of its competitors. The manufacture involves the preparation of various fibres, such as those of hemp and sisal, which are spun into yarn, and then the yarn is **laid'' by ma- chine into rope. The demand is of such character that much of the production has to be carried on as special manufacture; part of the production is stand- ard, however, and can be managed on a finished- stock basis. Determining Sales. — The first step in the introduc- tion of the planning system was to determine the 204 variety of sales made in the five years preceding, and when this had been done the shipping slips of that period were tabulated on a Hollerith tabulating ma- chine and the total sales of each kind and size of rope, as made by months for the five years, were listed up. It was found, upon careful examination of these data that about 60 per cent of the total tonnage was sufficiently stable and uniform to be carried on a stock basis. Next, a detailed list of the ropes, by kind and size, composing this stock was drawn up. The sales of these ropes for the preceding five years were carefully studied by the general sales manager who, from the information that he gathered, made an estimate of the expected sales of each' kind and size of rope. This estimate is shown in part in the accompanying table: KIND SIZE (inches) COIL ESTIMATE SALES 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Am. Manila. . « u u a " u « " « u u u " Am. Sisal « u « u ' ' ' ' « m " ' ' « u " ' ' « li ' ' ' ' 2 2 2H 2H 2M 2H 2 2 2H 2H 2^ 2H full half full half fuU half full half full half full half 40 20 40 35 35 40 80 100 110 105 80 70 60 30 55 45 60 60 90 120 130 120 90 60 50 40 70 50 50 30 80 80 95 105 80 50 30 20 40 40 30 20 60 50 75 80 70 40 266 PLANNING AND TIME STUDY «1 --2s T i J J X • > •• < - J ii " w W 4 __ ^■" ■^■H "■ " > ? u - ► S • - ==■ MM jii ( f H .:? \ 1 ( •5 C c=a= 1 ( 1* C 1 ~ J iV i > J i — — ■-- — — l# f :: II 9 t ( \ Si :, ( M I 3 Ii ! "•■ O ?: U i • K 7-" ' / .^ 5 . ! t 5 — I"* — -\ I 1 » _^ 1 4 :!! i 1 \ m « * ] •i-» I.Z-« ; > o • f 3 ^ Mi t I II > r k ( 1 n 1 ^ J J J I ) < 1 3 :: C 1 !l'' ; I • 00 ■ . L, .^ « _» ««■ ^-. ^_ ■•■« ^_ ^M ^B mmi mm^ mimjL^m ^ \ w » MM >■» ^ ^m, am ^ ■_■ ■■« mmmm _ fl ■*■ V ^^ ■—" — "— — — "" """l"^ — ' ^ ^ — — — ii — i 1 - ^ — — ^— ^ mmm — « m. ^ » ^ >^ ^^ «_ ^ o o 03 82 la CO A ROPE AND CORDAGE FACTORY 267 Reserve and Desirable Order Quantity.— When this list was finished the next points to determine were the reserve and the desirable order quantity with which to operate on the stock basis. After consider- ation of the amount of stock required and the time factors in manufacture, it was decided to make the minimum the equivalent of a forty-five day supply, and the desirable order quantity a thirty-day supply. For example, in the case of the first item in the esti- mate of sales, the sales number and desired order quantity would be represented as they appear in the table below: Am. Manila 2-inch Full Coils 1st 2n(i 3rd 4th quarter quarter quarter quarter Sales 40 60 50 30 Minimum 20 30 25 15 Desirable order quan- tity 13 20 16 10 The minimum was to cover a supply of 45 days' sales on this rope, and since a 45-day period is half of the 90 days in a quarter, the minimum is half of the sales; in the same manner, the desirable order quantity was deterimned as a 30-day supply or 1/3 of the sales. This is typical of the method by which the minimum and the desirable order quantity were set for each kind and size of rope. The information was then transcribed to the finished-stock sheet (Fig- ure 135), which consisted of a head sheet and a figure sheet, as shown. On this sheet was a complete de- scription of each rope, and also space for the posting 268 PLANNING AND TIME STUDY A ROPE AND CORDAGE FACTORY 269 CHECKED BY PLANNING CHARGE TO ADDRESS- DEPT. COPY N9 ^402 ORDER RECEIVED SHIP TO DESTINATIOfI FACTORY NUMBER ENTERED BY PURCHASER'S NUMBER BILLED BY REQUISITION NUMBER DATE BILLED WHEN \#IJK OATC 1 T 3 SPEC SHIPPED BY VIA KAIc 1 1 CAR NO. DATE SHIPPED DATE OF ORDER NO. COM.S size PRODUCTION SHIPMENTS REMARKS DATE QVt. DATE OTV. DATE OTV. DATE OTV 1 • « _ —i... 1 ^mm „„.^ 1 J no. 136. PLANNING DEPARTMENT COPY OF SALES ORDER of the sales data. While a full discussion of the finished-stock sheet would give the reader a fairly clear idea of the basis on which stock was ordered and produced, I wish to postpone detailed considera- tion of that subject and to consider at this point the receipt of sales orders, including the routine of their entry and analysis. Forms af Sales Orders.— Sales orders were received in three different forms: first, the requisitions from the branch warehouses, which usually were of con- siderable size; second, orders from the various con- signment accounts, which were also large; and third, direct orders from individual corporations, which varied greatly with respect to both size and specifica- tions. When the orders were received, they were first passed for credit, and then entered in the order reg- ister where they were given a serial manufacturing order number. Next they were sent to the traffic department and routed and, after that, were entered on an alphabetical order register which served as a cross index to the one by order number. The weights on the order were extended and the order was then sent to the planning department, where, for every item shown, the yarn used and the rope machine group on which it was made, was entered. The order was then made out in formal style on the form shown in Figure 136, known as the manufacturing order. This was made in three copies; Copy A was filed by customer's name; Copy B was sent to the shipping department; Copy C, the one illustrated, wont to the planning department and was filed by order number. 270 PLANNING AND TIME STUDY A ROPE AND CORDAGE FACTORY 271 Itemization of Orders.— The next step in the process of entry (itemization of orders) constituted the keystone to the whole system. It happened that the orders consisting of all the way from one to one hundred items called for a great variety of product— from the smallest to the largest rope— some stock, and some special— and the engineers in charge of the installation became convinced that these orders would have to be further reduced to their constituents if manufacture were to be controlled effectually. The step proposed, by which this was to be accomplished, was a sweeping innovation but was the very pith of the success of the entire system. I emphasize this point because the entire structure of the control rested upon the method of analysis, and the inventive- ness displayed in this regard was the basis of the final success. This circumstance illustrates the real problem which planning presents and the sort of solutions which the successful designer must evolve. To be specific, then, the method proposed was a detailed itemization of the whole order, the reduction of the items to individual orders, which were desig- nated, first, by the master number of the order of which they were part, and then by a letter of the alphabet. This itemization was easily accomplished by means of the fanfold attachment to the Underwood typewriter, mentioned previously in this volume. The form used for the purpose (Figure 137) provided for tickler dates at the top, and the individual item was described on the heading. After these **fanfolds,'* as they are termed, had been made out they were checked against the manufacturing order and handed FIG. 137. ORDER ITEMIZATION BLANK ^FANFOLD FORM with the C (or pink) copy of the manufacturing order to the schedule division of the planning de- partment. The routine then was as follows: The manufactur- ing order was filed in a binder, numerically by order number, and served as a ''master" of the entire order. To this copy of the manufacturing order the 272 PLANNING AND TIME STUDY A ROPE AND CORDAGE FACTORY 273 POUNDS AHEAD OF MACHINE GROUP ^ > <> i ^ i ^ ^ n o S ^ ^ I •^ ^ Vi fv ^ « ■4* X ^ V6 A ^ A > 5 ^ •^ 1 > ^ ^ "Si s Ml N X e ^ ^ ^ ^ > N J X << i -9 A •) % V VJ 1 S ^ n is ■ T ^ 1 ^ Q V I. >• >• • Z 8 UJ CO O i o b UJ a a O o Ul o o o a. Ui Z s ul CO o )~ -j < 00 b UJ cc cc UJ a cc o o UJ o O o UJ Z 2 UJ 00 o t- _l b UJ cr tn a Ui O QC O o UJ O o s. UJ UJ ffi O < 00 b UJ a oc UJ O (C o o UJ o O 1 ul Z s uJ 00 o 1— —J o b uJ (£ i/> CE UJ Q CE o a UJ O O O UJ Z g UJ 00 o »- < 00 o K » ^ ' • o CIS o o -< ;^ O o o o < ij n — d Q O O w g 00 CO shipments and the production on special items indi- cated by stars were posted. The shipments also were posted on the stock items, so that this copy of the order gave complete information of the status of every order, showing what had been shipped and what still remained to be shipped and what of the special items had been produced. Handling the Fajifalds.— The fanfolds made in triplicate were then handled in the following man- ner: First the stock items were separated from the special and then the following procedure with each of these divisions was carried out. Procedure with Special Item Fanfolds. The orig- inal copies of the special fanfold item were the only ones showing the customer's name (the carbon being cut to eliminate it from the others); these copies were clipped with a metal signal to indicate the delivery date required, and were then tiled in the planning- control tile, described later. The duplicate copies were sorted according to yarns, in order to determine the total amount of yarn required to fill the daily orders received. This total was posted on the yarn-stock sheet in the column headed '* Amount Required.'' The duplicate copies, after being used to obtain the information concern- ing yarn, were re-sorted according to rope-machine grotips, in order to determine the total amount of tonnage attributable to the rope-machine group for the daily orders received, and this was posted on a tonnage or ** hours ahead" sheet, in Figure 138. The triplicate copies were sent to the office of the finishing departments as a production order, which 274 PLANNING AND TIME STUDY A ROPE AND CORDAGE FACTORY 275 would later be treated by an instruction or running test from the planning department. Stock Item Fanfolds. The procedure with the stock item fanfolds was as follows: The original copies, the only ones showing the cus- tomer's name, were filed according to kind and size of rope, after a metal signal showing the delivery date had been attached to them. Shipments were posted daily on this file, and when an order had been shipped the item was removed from the file, and placed in a transfer or completed file. The duplicate copies of the stock item were sorted according to kind and size of rope, and the total of each kind and size was posted to the ''order received'' column in the stock sheet (Figure 135). The triplicate copies of the item served no purpose and were destroyed; they existed only because the fanfold form came in strips and three copies were needed for the special items. Stock Sheet.— Let us now refer back to the stock sheet. Figure 135, and consider what part it plays with respect to stock orders. This stock sheet shows- Mill orders issued * Manufactured Shipped Orders received and the following balance columns: Balance uncompleted mill orders Actual balance on hand Balance sales orders unfilled Available balance (after applying orders received) The sheet may appear involved, but its operation, once understood, is simple and the record most val- uable. It has already been said that the No. 2 copies of the stock item fanfolds were sorted according to kind and size of rope, accumulated, and posted to the ** orders received" column. This entrv was the first made on the stock sheet and after the application of the order received, if the available balance thus shown was less than the number shown on the top and at the left of the sheet, a stock order (Figure 139) was issued in terms of the desired order quan- tity All stock productions were then entered in the **mill order issued'' column of the stock sheet, Figure 135. The daily production reports in regard to finished stock were summarized and posted to the ** manu- factured" column. The daily shipments were sum- marized and posted to the ** shipped" column. Every time an entry was made in any of the columns men- tioned, the balance effected was also changed in the proper balance column. These balances were all brought down with every entry, so that the sheet gave a current balance of goods manufactured and goods shipped. The sheet was not difficult to operate, and the bal- ances all cross-checked, thus measuring the accuracy of the entries. This stock sheet served two prime purposes: that is, it^ furnished the basis of actuating stock orders; and it constituted the basis of applying daily ship- ments. 276 PLANNING AND TIME STUDY A ROPE AND CORDAGE FACTORY 277 . • 1 t 9 « • a^ 7 • • le •• •■ 11 M 1* ■• IT !• (• ao ti >a la X4 aa aa B<»K 1 artne-M oMnr* mo aT aa a* ao si WCIOH1 m.iAac r^uAMi^f km A MACH. GROUP VAUN OROCR NO. . . MAM TMC rOLLOWINO VARN OUAN nr.r...T.na, ^ 1 1 OATI WCK a 4 ■ « T • • M II .H-| r C-.HAMSr MO M« -MACH. C VARK IROUP .... )*tr o VARN ORDCR NO < mast MAKI TMC rOLlOWINO ..;^- , 1 « a a 4 '9 • T • a lo II, u la i« «• la IT la la zo ai aa aaz4 as aa araa aa ao si — - OAT WEK •■ , . . _ ^^ ttTfMT^K OMOClt MA 1 SHT ctiKttar MO . . \ "^ MACH aaoiiP VARN OROCR NO VA ■ M MTI • PLCAVC MAK< TMC rOLLOWiNO- OUANTITV Size DESCRIPTION WEIGHT — " 1 - , PRODUCTION ll APPLieO ON SALCS ORDERS 1 »»TC eUAMTlTV o*t« owAMTirv o**« a«««»M* OuAamrv ■"'• OWOMTIVi OATC 0»»««NO ev«MTlT^ ~ ~ ~ "" . FIG. 139. STOCK PRODUCTION ORDER Handlings Stock Orders. — The stock orders (Figure 139) thus actuated were then handled by the plan- ning department as follows: No. 1 copies of the stock order were filed in the planning control file according to machine group, yarn, and size. No. 2 copies were sorted according to yarns, in order to determine the amount of yarn required to fill the daily stock orders received, and this total was posted on the yarn stock sheet in the ** amount required '' column. No. 2 copies were then re-sorted according to rope-machine groups, to determine the tonnage against each machine group for the daily stock orders received. No. 4 copies were sent to the office of the finishing department, and were actuated for production by in- structions from the planning department. So much, then, for the general routine, which, until thoroughly comprehended, must appear complicated. I shall now treat more in detail the system and the procedure which have been broadly indicated. Plajining-Control File. — The planning-control file mentioned, which was the form of ** control mechan- ism" adopted for this installation, was the guide to the planning; it was so arranged as to distribute automatically the demand represented by the unfilled orders, as applying against the rope-machine groups, yarns, and sizes. In this file, it has been stated, the No. 1 copy of the special item fanfold and the No. 1 copy of the stock order were placed. The reader will more clearly understand the operation principle of the file if he will refer to the photograph. Figure 140. The diagram illustrated in Figure 140-A, shows that the file in one direction was arranged by rope-ma- chine groups, and at right angles to this direction was arranged according to yarns. The pocket thus formed by the intersection of the machine group items and the 278 PLANNING AND TIME STUDY A ROPE AND CORDAGE FACTORY 279 o a o o o z < o o INTENTIONAL SECOND EXPOSURE 278 PLANNING AND TIME STUDY A ROPE AND CORDAGE FACTORY 279 a o C u o < o o l^^c*^ fe • ■ W H IBm] J 1 rv^ - ^m TmJ i IB "'^jjims r ■ Hi S^j^Wh" nW H Y i^^ 1 It I — %, Ir SJ WJ 1 ' 11 B= v5 ?4^\^ 1 lic^ Shil r ij Y^!$jnL| 1 1 rnsi 11 '^^^JllWir 1 n^J ndu fsi 1 1 wSc 1 ivjdl r^di \ \o\ 1 \ rRM N . r^ 1 Ir^Sr N| 1 1^ p^i*u iir^m II niii i j m^ m^ J IS V fmyi Ire ill ^ 1 "v - I^P i 1 \ ^ >-< Iz; >>4 HH c3 p J?; ^ -2 . O ^^, S , h m F s ^ M S t-H •ss h3 o = •2 M +j ^ H i> >> {2? a.x> o t- D o 0/ N •^- ~H o C !fe &-.3 0^ -r* ^ F ^ o i-d H c:^ ^ ^•>a S a; d ^ ^ rf o a 5z; as, i2 % % C 0) SI -sj -d "T" d o so 9 53 ^ < * ^ M f^ Q •- '3 • a> 1 « O Ttl tH C3 • EC t-l a> it -3 u o 280 PLANNING AND TIME STUDY A ROPE AND CORDAGE FACTORY 281 FIG. 141. RUNNING LIST yarn items contained all the unfilled stock orders and special-item fanfolds having do with those particular yarns and machine group. Further within this pocket the orders were filed by sizes of rope and then by order number; the reason for filing by sizes was that, while the machines could be adjusted to operate with different sizes of rope, the adjustment would necessi- tate extensive changes, so that it was necessary to operate on a size schedule, very much as in the case of a steel-rolling mill. This file was the basis of production control, so it is quite desirable that the full detail of its plan and operation be understood. Yarn Stock Sheet.— In the course of the explana- tion of the routine of order analysis, reference was made to a yarn stock sheet, which may be described to advantage now (see Figure 30, page 88). The manu- facture was practically a continuous process— from the opening of the bale of fibre to the laying of the rope— with very little delay between the operations, and it was necessary to keep a very close record of the movement of yarn and of the amount available for production. The sheet known as the **yarn usage and order sheet'' was designed for that purpose. The daily orders received (that is, special fanfolds and stock orders) were analyzed to determine yarn re- quirements as described, and posted in the yarn rec- ord in the '*yarn required" column. As orders for yarn were issued they were posted in this column shown, and as the yarn was used for making rope the amount was posted in the **used" column. The balances were brought down with each entry, so that a current record of all balances could be obtained. Analyzing Demands Against Equipment. — This de- scription makes clear the function of the '*yarn usage" sheet. The next point for consideration is the method of analyzing aggregate demand against the equipment. For this purpose the record shown in Figure 138 was developed. As the orders were received, they were reduced to tonnage against the equipment and posted later in this manner. The actual tonnage figures were not used, because the rate of production per pound of rope varied as much as one to five according to the size, and so the de- mand was reduced to hours ahead of the equipment. The daily orders were then posted and the daily pro- duction, reduced to an equivalent of time, was also posted; the two sets of figures furnished the current balance of hours ahead of the equipment. This rec- ord was kept for special orders and stock orders separately, as well as in total for both. Now, in regard to the matter of actual production control. In the planning-control file all unfilled orders, both stock and special, Ayere arranged by machine 282 PLANNING AND TIME STUDY A ROPE AND CORDAGE FACTORY 283 10 9 8 7 6 5 4 3 •2 • 1 ^^^^^^^^ C*MCtTY - • MACHINE NUMBER Z3t MACHINE CROUP >IV0 9-^^^^^ S^^-»^-d^ • • t • %• »%5 %^ FIG. 142. SKETCH SHOWING ARRANGEMENT OP INDIVIDUAL MACHINES Tbe dots denote location of pins, as discussed in tbe accompanying text group, yam, and size. Let us now consider how, from this information, the instructions for production were developed. Schedules for runs on the rope machines in dif- ferent sizes were established, and also the total yarn requirements. With this information running lists (Figure 141) were prepared for each of the ma- chines of the finishing departments. These running lists, which were made in the planning department, showed the sequence of the orders with respect to the various machines; the time required to complete each order was entered from the operation cards (described later) — thus a schedule was developed for each machine. Occupation of the Equipment. — The occupation or engagement of the equipment as scheduled was repre- sented in a rather unusual way devised by the pro- duction manager; it is described herewith largely in his own words. The operation can best be explained by referring to the sketch (Figure 142), which repre- sents one machine. This was developed similarly for every machine, so that the activity and commitment of the entire productive capacity was reflected fully and compactly. The machines were sketched out on a large board, rectangularly and in correct relative positions. Each rectangle included the following: 1. Symbol of the machine group. 2. Machine number. 3. Machine capacities, with reference to the size of rope run. 4. Size of rope machine is capable of running, as one ordinate. 5. Figures 1 to 10 for dating purposes, as other ordinate. 284 PLANNING AND TIME STUDY A ROPE AND CORDAGE FACTORY 285 These machine charts were rendered clearly intel- ligible by means of pins and tags designating the following: 1. Kind of rope (quality), by color. 2. White pins for dating purposes. (a) Small pin for date of first operation. (b) Large pin for date of succeeding operations. 3. Colored tag to denote : (a) Machine down (no yarn). (b) Machine down (operative out). (c) Machine down (for repairs). (d) Machine down (no work). In further explanation and referring to the sketch, the actual running time for the first kind of rope (%-inch) was computed from the machine capacities shown on the upper left-hand corner. The time so found, added to the date on which plans were made, gave the final manufacturing date for that particular class of rope. The date (the 14th of the month, in this case) was designated by the combination of the small white pin to the left of the figure 1, and the larger colored pin, showing kind, in the lower right- hand corner of the %-inch box— Box 4, in this case. The second pin, the position of which was similarly computed, was placed above and to the left in tlio 13,/16-inch box, No. 9 in this case, thus showing kind and size of rope and length of run. Each suceeding pin was moved upward and to the left, relatively to its own box, so that the last run planned occupied the upper left-hand comer of its own box. The date pins following the first date pin were larger than the first. The sketch shown, if interpreted according to the foregoing description, shows: %-inch rope (quality designated) to be run until the 14th. 13/16-inch rope, until the 19th. yg-inch rope, uijtil the 27th. The information as to capacity or running time was taken from the operation cards, and individual orders of the same size of rope were grouped and run in the schedule as indicated by the planning board. The copies of the running lists that were given to the foremen guided them regarding what orders to produce; on receipt of these lists the foremen drew from their files the orders called for and produced work according to schedule. The sales thus analyzed were closely studied to de- termine to what degree the demand was repetitive and to what extent the manufacture might be con- ducted on a strictly stock basis. The running lists constituted the schedules on which the production was maintained, and as the production was reported it was posted as follows: Production on special orders was posted on the pink copy of the manufacturing order (Figure 137) and on the special order filed in the planning-control file. When the total on the order was produced, the copy was transferred from the active to a *^ com- pleted'' file arranged by machine groups. Production on stock orders was posted on the stock order itself, and also in the manufactured column of the rope-stock sheet. 286 PLANNING AND TIME STUDY A ROPE AND CORDAGE FACTORY 287 Eeference has been made to an operation card which was design to supply the information as to time required to produce. This card (Figure 142- A) shows the time to produce, first, in each one of the preparing operations and then in the laying opera- KIND „_,.. OPERATION CARD GRADE _„„ DIAM. STRAND CtR 1 CHANGK Nd. YARN , . THREAD OR PLY 1 LEMGTH PER coil. WEIGHT Vt PER COIL f /EIGHT >ER IQOI ?t' REMARKS OPERATION PROD UNIT STAND. TIME PER lOO LBS. OPENING INTERVAL BREAKER TO FINISHER 1 RRKRARING SETS ONE SET SETS ONE SPINDLE SPIIMNING INTERVAt. FORM TO LAY 1 PIG. 142-A. OPERATION CARD tion. One of these cards was prepared for each rope made and was the master record defining the produc- tion for that rope; it was a combination of an opera- tion card and a specification sheet. Delivery Requirements.— A very important factor in the production schedule was the delivery require- ments regarding each order. In general the time of delivery was indicated as follows: **Rush,'' *'Two Weeks,'' *'Six Weeks," and the tickler clips on the orders were placed accordingly. The following ** rota- tion'' of colors was used to denote the months; four months' time was allowed for the completion of an order: Green Blue Black Pink Jan. . Feb. . March April May . June . July . Aug. . Sept. Oct. . Nov. . Dec. . In general it was the hope that by keeping up to the schedule thus laid out all difficulties would be avoided, but it developed that much of the demand had to be met by definite promise of delivery. For- merly a big proportion of the manufacture had been done on a promise basis, and while this proportion was reduced by the better anticipation which the new control made possible, much of the production had still to be handled in the old way. Accordingly, whenever a request for a promise on delivery was received it was entered by the order department on the form shown in Figure 143. The requests, with the information supplied on the form, 288 PLANNING AND TIME STUDY A ROPE AND CORDAGE FACTORY 289 z b »- < I u Z P < n S 1 1 m PRODUCTION DEPARTMENT REQUESTS FOR PROMISES received d RETURNED 1 " ^ (/ /( ?•> \ NAME or CUSTOMCI* ■ ft 1 i *• z w n ' 1 / 1 / I 1 - -■■ ■ "t J 1 ( \ i \ 1 J ^1 1 ' T rt J I < > 3 u I y N W 3 5 u 18 < 1 K U o z 3 Z c t * w — . ■ o w w CO PRODUCTION DEPARTMENT YARN FOR PROMISE >^CEK ENDING i 0«OtD 1 ••TlCll MO CO.t# •••CM MO 1 ■ 1 1 1 1 _ ■"^r^ 1 — T t 1 ^ ■».*'->^ ■J-l^-J nw U— '-'- ^XJ -- 1 J ■" -=- 1 1 . FIG. 144. SHEET SHOWING REQUIREMENTS OP YARN FOR ORDERS ON WHICH PROMISES OF DEUVERY HAVE BEEN MADE were then sent to the schedule clerk, who entered them in the **yarn for promise'' sheet (Figure 144). This record, kept by weeks, showed the obligations for **yarn on promises," and hence the amount re- quired to meet the promise was reserved. The plac- ing of the order in a particular week was dependent on the size of the rope called for, as the rope had to be made according to a size schedule. Whenever a promise was made, a special clip was also placed on the order in the planning-control file, to indicate that the item was promised. Control of Deliveries. — This discussion as to prom- ises may suggest to the reader that the control of deliveries was an important point of the duties of the planning department, and it was indeed. The control of deliveries was obtained in a manner which is ex- ceedingly diflScult to describe, but in general it was this: A card was made out for manufacturing order (Figure 145) and ''clipped" to show the delivery re- quired; it was also clipped if a promise was made on i 290 PLANNING AND TIME STUDY A ROPE AND CORDAGE FACTORY 291 12 3 4 5 6 Cuatomer T 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 ortation Co. o«ierNo. 3728 Date Promised Date Destrcd Aug. 8 Aug. 8 lUmark* Required foi: sailing Aug. 10 FIG. 145. ORDER INDEX CARD it. The file is shown in Figure 146. This file was moved by the manufacturing order file, for whenever an order was shown as completely produced the manu- facturing order was transferred and at the same time this order card was taken out of its position and placed at the back of the file, indicating completion of the order. This was sufficient for handling the shipments on manufacturing orders of special items only, but for manufacturing orders partly stock and partly special, or entirely stock, further detail was required. This was obtained by means of the application rec- ord shown in Figure 147. Every day, after the shipments, production and orders received had been posted on the stock sheet, the balances were drawn off on this record, which showed for each day m § § Pc< CO INTENTIONAL SECOND EXPOSURE I , V .4 290 PLANNING AND TIME STUDY 1 2 3 4 5 6 V 8 ■ 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Customer Tl%idbortat lOH CO. Order No. 5728 Date Promised Aug • 8 Date Desired A\Ig • 8 Remarks P.equlred tox sailing Aug. 10 FIG. 145. ORDER INDEX CARD it. The file is sliown in Figure 146. This file was moved by the manufacturing order file, for whenever an order was shown as completely produced the manu- facturing order was transferred and at the same time this order card was taken out of its position and placed at the back of the file, indicating completion of the order. This was sufficient for handling the shipments on manufacturing orders of special items only, but for manufacturing orders partly stock and partly special, or entirely stock, further detail was required. This was obtained by means of the application rec- ord shown in Figure 147. Every day, after the shipments, production and orders received had been posted on the stock sheet, the balances were drawn off on this record, which showed for each day A ROPE AND CORDAGE FACTORY 291 § Q •^ OS w g o o fo CO 292 PLANNING AND TIME STUDY A ROPE AND CORDAGE FACTORY 293 PRODUCTION DEPARTMENT DATE kCTUAL ■AL. •AL. APt. >AU AVAIL' ABLB _ - W^ _ - UJ UJ L- u.« •J L-J LJ _, _ J ■ Mil ■ I ■> III ■ I -I. M _._ m^^^m- K^^HK _^_^,^ .^B^.^ _^^i_ __^>^ 1 , FIG. 147. APPUCATION RECORD the actual balance, balance applying, and balance available for each stock item. The pink copy of the manufacturing order was then checked with this sheet, and whenever it was shown that the stock items on the order were in stock, they were marked ** applied for shipment'' and the quantity and the order number were entered on a form for that pur- pose. A list of the applications thus made was sent to the shipping department, together with a list of such special items as were ready, and the orders to be shipped were thus accumulated and placed in the cars. The total applications thus made were then posted in the stock sheet, in the column headed ** ap- plied for shipment," which served to show up the shipment of any ropes not applied, and also to check the accuracy of the applications. FIG. 148. VERTICAL ROPE MACHINE INTENTIONAL SECOND EXPOSURE HI HI 'i ll ' 111 292 PLANNING AND TIME STUDY PRODUCTION DEPARTMENT DATE lCTUAL ■AL. ■AL. APt. ■ AL. AVAIL- ABLC APPLICATIONS ^^ L^^j . r^ 1 — n 1 ' 1 1 ^ ^ ^ ' ^ FIG. 147. APPLICATION RECORD the actual balance, balance applying, and balance available for each stock item. The pink copy of the manufacturing order was then checked with this sheet, and whenever it was shown that the stock items on the order were in stock, they were marked ** applied for shipment" and the quantity and the order number were entered on a form for that pur- pose. A list of the applications thus made was sent to the shipping department, together with a list of such special items as were ready, and the orders to be shipped were thus accumulated and placed in tlie cars. The total applications thus made were then posted in the stock sheet, in the column headed ** ap- plied for shipment,'' which served to show up tlie shipment of any ropes not applied, and also to check the accuracy of the applications. A ROPE AND CORDAGE FACTORY 293 FIG. 148. VERTICAL ROPE MACHINE 294 PLANNING AND TIME STUDY A ROPE AND CORDAGE FACTORY 295 o < o 15 O N o s O) ■* A Distinctive System.— The foregoing description <;hows the full detail of the operation of the planning department, with respect to the method of order analysis, the scheduling of production, and the con- trol of deliveries. The installation, which is very hard to describe so that it will convey. a definite picture of the operation, successfully filled the re- quirements of this production problem and improved the method of deliveries. The system is distinctive because it controlled a continuous process of manu- facture, which nevertheless produced a great variety of product. J u 4- • The various productive units operated about in this proportion from the viewpoint of the number of machines: Preparing Spinning ; Rope or finishing machine . . . 1 10 30 The problem was essentially one of keeping busy a number of elastic, independent finishing machines, capable of great variety of work, and supplying them with yarn from the spinning and preparing depart- ments, where the machines as units were few in num- ber and limited to definite runs. The principle upon which the system operated was to manufacture to stock as much as possible. A current analysis of sales was maintained, in order that whenever the special orders justified it material might be carried m stock. The success of the system was due to the itemization of the manufacturing orders as provided by the fan- fold form, and the scheduling of the production was INTENTIONAL SECOND EXPOSURE 294 PLANNING AND TIME STUDY ii. i'fe ^ < O a o N3 Qi o 03 C3 A ROPE AND CORDAGE FACTORY 295 A Distinctive System.-The foregoing description .hows the full detail of the operation of the planning department, with respect to the method of order analysis, the scheduling of production, and the con- i^^l of deliveries. The installation, which is very hard to describe so that it will convey a definite picture of the operation, successfully filled the re- quirements of this production problem and improved the method of deliveries. The system is distinctive because it controlled a continuous process of manu- facture, which nevertheless produced a great variety of product. u ,+ ;« The various productive units operated about in this proportion from the viewpoint of the number of machines: „ • 1 Preparing Spinning •; Rope or finishing machine ^u The problem was essentially one of keeping busy a number of elastic, independent finishing machines, capable of great variety of work, and supplying them with yarn from the spinning and preparing depart- ments, where the machines as units were few in num- ber and limited to definite runs. The principle upon which the svstem operated was to manufacture to stock as much as possible. A current analysis of sales was maintained, in order that whenever the special orders iustified it material might be carried in stock. The success of the system was due to the itemization of the manufacturing orders as provided by the fan- fold form, and the scheduling of the production was 296 PLANNING AND TIME STUDY made both flexible and certain by virtue of the con- trol file designed for this installation. The organization of the planning department con- sisted of a manager under whom worked the order division with several clerks, and the schedule and dispatch division, also with several clerks. The order division entered the sales orders, made out the manu- facturing orders and the fanfolds, and also applied the stock for shipments. The members of the sched- ule and dispatch division had charge of the stock book, the issue of stock orders, and the planning- control file. They did all the posting incidental to this work, and also prepared the running lists and made the piomises, keeping the records required there- for. In this particular installation the material records and material ordering were managed by a separate department, distinct from the planning department, owing to the nature of the raw material. The hemp and sisal fabrics were purchased in a very difficult speculative market, and purchases were made largely on the judgment of the president, to whom the mate- rial department was directly subordinate. The system has now been described in full detail, and, it is hoped, clearly, although the nature of the problem was such that the description may appear somewhat complicated. The principles upon which it operated are representative, and only the details are unique, because of the nature of lie business. CHAPTER XII PLANNING APPLIED TO KNITWEAR MANUFACTURE The Knitwear Plant and Its Manufacture. — The in- stallation considered in this chapter covers a system of planning or production control as it was applied to the requirements of a knit-underwear plant. In several respects this industry is unique, although it includes in general, of course, the fundamentals of all manufacture and the usual elements of control. The particular plant referred to in this discussion produces a wide variety of styles covering the full range in sizes in all styles. The line consists of gar- ments for men, women, and children, of ribbed meshed cloth and of many different finishes as to cut and length. The general characteristic of the industry, as re- gards its trading phase, lies in the fact that the sales are made in units of case lots, each case containing in most instances twenty-four dozen garments, usually of one style but assorted as to sizes. The case is the unit of shipment, and has a very strong influence on tlie production progress, as will be seen in this dis- cussion. The line of this particular plant is divided into heavy-weight and light-weight garments, and, accord- 297 298 PLANNING AND TIME STUDY A KNITWEAR FACTORY 299 CONFIRMATION OF DETAILS ^^^■" KNITWEAR COMPANY Name rtOt or« prr t«nl ptr anhmm to Oct. 111. Address Mill Number SlMCUl Number CaM NuiBDcr 3 20 34 4 22 3« « 24 38 a 40 lO 28 42 13 30 «4 14 32 46 34 4S 50 Doc. Pric* Delivery Dele Cat >rder Box Order Dmc Charged Del, ._ __ _ ^^ PIG. 150. CONFraMATION OP ORDER ing to the custom of the trade, its sales are made in advance during a period of a very few weeks to cover the entire output for the year. This condition is rarely encountered in other lines of manufacture, for it means that the demand is known in advance; hence, in an otherwise complicated manufacture, the removal of one of the elements— demand— consider- ably simplifies the production problem. The process is based on the production of a tubular cloth, which, after the necessary bleaching and dye- ing, is cut according to patterns and is then seamed and finished. The two processes are continuous, but they present conflicting requirements, so that it was necessary to determine which of the two could most economically determine the control of production in the plant. The essential departments are the knitting and the seaming and finishing departments, and it rarely hap- pens that a line is so composed that the greatest economy of operation of the knitting department re- sults in a cloth production which gives the diversity of styles required for the fullest efficiency of the fin- ishing departments. This consideration is affected in part by the bases on which production is to be maintained with respect to degree and location of stock. In most manufacture it has been found desirable to have reservoirs at intervals in the stream of production, which stabilize the flow, and which equate or adjust, in some degree, the different requirement of the several processes. Thus, in automobile manufacture a store of finished parts is maintained from which assembly proceeds. In woolen and cotton mills a reserve store of yarn is carried, and weaving is directed in accordance with the status of this store. In regard to the manufacture of knit underwear, with its peculiar range of styles and sizes, the first question which arises is: At what point or points in the process should stock be carried? Stock might be carried in several ways. It might be stored in cloth form or in groups of a dozen pieces cut to size. Furthermore, the garments might be finished in case lots or in groups from which the cases could be built up. After due study of the situation in this plant had been made, it was concluded to carry stock in cut dozens and to finish in groups of cases of garments instead of in individual cases, making up separate cases for shipment. 300 PLANNING AND TIME STUDY A KNITWEAR FACTORY 301 12 3 4 S 6 7 • • lO 11 12 13 14 IS 16 17 IS 19 20 21 22 23 24 25 26 27 28 29 30 31 *^*^''**^-- - - Style Car No. # Deli< Stamp_ Cuatomer Order No. ...... Labels ^tupped. ,_ Prod. Sch. ._ . Special Finisb ivery. Boxes Hanger Stored packer FIG. 151. CASE CARD Receipt of Orders.— Now that this point has been made clear, I shall continue from the point of the receipt of orders, which represented sales. These orders were entered on an order register (Figure 150) ; one copy was sent to the customer as confirma- tion of his order, and the duplicate copy was filed in the production department as a basis of further analysis. The orders shown on the order register were transcribed on case cards (Figure I'A), One copy of the case card was sent to the shipping de- partment, and one was filed in the production depart- ment. In further explanation of the manner of filing the production-department copy of the case card, it is necessary to explain that all orders received were first applied against a production schedule to de- termine the method in which they might be shipped. This schedule was an approximate estimate of the capacity of the plant in terms of the larger divisions of the product, sucli as union suits, boys' mesh suits, and so on. In this way the date of delivery was determined, and the copy of the case card in the pro- duction department was filed by style of garment, and then by method of delivery. When the case cards were all made out and filed, they were sum- marized to show the aggregate demands by styles and sizes. This summary was posted on a master card, which was then placed at the front in the files for each style. The aggregate demand thus deter- mined was then further reduced to terms of clotk requirements and, finally, to those of yarn. The ap- pearance of this summary of the demand is illus- trated herewith. MONTH STYLE SIZE 34 100 100 111 311 36 200 200 235 635 38 50 203 346 1049 40 250 445 346 1041 43 40 563 789 1392 44 243 23 939 1205 46 261 341 396 998 48 111 135 236 482 50 102 613 146 861 52 105 234 378 717 Nov 1311 1311 1311 Dec Jan Totals. . . Specification Cards.— This conversion of styles into equivalents of cloth and yarn was done by means of the information contained on the specifications cards shown in Figure 152. A complete history of the indi- vidual style and size of each garment appears on this specification card, as well as the amount of each kind of cloth and yarn needed to make it, and the amount and kind of the various finishing material such as S51 302 PLANNING AND TIME STUDY SPECIFICATION SHEET KNITWEAR CO. STVrF DESCRIPTION SIZE PART NO. PART NAME MATERIAL QUAN. PER DOZ. Body • Sleeves 1 Gusset 2 3 4 Shirt Cuffs Dr, Cuffs Collarette Should&r Straps F€icing Stay Buttons Braid Lace Ribbon A KNITWEAR FACTORY 303 PIG. 152. SPECIFICATION SHEET facings, edgings, buttons, and so on. The yarn re- quirements thus developed were used as the basis of follow-up on deliveries, and also as the basis of pur- chase for future needs. This is an important consid- eration in the knitwear industry, as yarn is a highly speculative material and the method of purchase often contributes more to the success or failure of a year's operation than skilful management or the close observance of technical details. Minimum for Cut-Dozens Storage.— The next step in the production control was to determine from the aggregate demand in styles and sizes the proper minimum for cut-dozens storage, and the desirable quantity to order. This was accomplished on the basis of a certain number of days' supply, and it was decided to carry a minimum reserve of three weeks' supply and to establish an order quantity of one week's supply. By way of explanation of this system, I give the following example: Assuming that sales were made on the basis of Style 468, Size 38, 300 dozens: The season of eight months in which delivery was to be made gave about thirty-two weeks, and a three weeks' supply was 3/32nds, or approximately one-tenth. Therefore the minimum was set at one-tenth of 300 dozen— or 30 dozen— and the desirable order quan- tity at l/30th, or ten dozen. The whole line was thus reduced to terms of minimum and desirable quantities. A stock book was then arranged, in which the status of the stock could be recorded by means of the form designed for the purpose; this form is shown in Figure 153. One sheet of this stock t / 304 PLANNING AND TIME STUDY A KNITWEAR FACTORY 305 i \ 1 r 1 1 1 ' \ ! J i 1 1 ( i ^ 1 L 1 1 r 1 [ 1 1 1 J ! . i i 1 ) FT" ■ 1 — ^__ ' ' ' 1 V i i 1 i F ■ =- — 1 ! 1 1 t (l 1 1 1 i V 1 1 j 1 i 1 =:a 1 1 j ill' \\ 1 t 1 \ I 1 } \ 1 ^ L 1 = V r^ 1 ! ] ^ I ' ! V ' 1 L 1 1 (i i - T' "'i 1 J 1 1 1 1 i I [ 1 t 1 i L 1 1 1 1 J ^ ra-r 1 t. 1 ■- _ 1 J ' ^ • 1 L • 1 M^^ -mX _2 — i M^ ■■1^ •Z3 ■aJ CO o o z Es] o o I Eh o CO o record was used for each style and size, and the pro- (hiction, as well as the issues of cut dozens, was ])osted to it daily. Four running balances were main- tained on this form, namely, balance unordered, bal- ance unproduced, balance on hand, balance available. The total requirements were posted in the require- ments column, and as orders were issued they re- duced the balance unordered until, on final comple- tion, this balance was zero. The same procedure was followed with the balance unproduced, which was the difference between the amount ordered and the amount produced. The bal- ance on hand was of course the difference between that produced and that issued. The available balance was slightly more complicated and calls for further explanation. Issuance Procedure.— I have already said that the finishing room required a definite assortment of gar- ments, doubtless because of the fact that the opera- tives would not interchange and would not work on different operations. Accordingly, in order to keep them busy, it was necessary to issue the cut-dozens by schedule in proper assortments. A schedule of finishing once established, the procedure of issuance was as follows: A book (Figure 154) was kept in which was posted daily the actual balance on hand. Cut dozens were then applied to be sent to the finishing room. The record of such applications was made in the columns, as shown, and the total applications of the day were posted to the stock book in the ''Amount Applied" column. This reduced the available balance, and 306 PLANNING AND TIME STUDY A KNITWEAR FACTORY 307 Styl« S1Z08 Staap 3S1S S6 S«t8DUg 88 40 DtM Applications ^■mUU Cm, Ou>->nty Cm. Cm. Cm. TmJ 4f 44 46 t- 48 60 35ir 84 86 88 40 48 44 46 48 60 Sat snug ■ ■ FIG. 154. APPUCATION BOOK Additional leaves, as shown at the rijiht, may be attached to the right margin of the typewritten sheet in z Ui N 3 • WEIGHT 1 -i RD OF F FCFIVFD nOTFNS II 1 t L — lECOl 3LLS R ■ J •0 • z K k. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 IS 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 o^TP ORDER NO.- CUT DOZEN Production Order ' PLEASE CUT THE FOLLOWING : No. OP Ooz. SrVLK SIZK Stamp Cloth Size Amount • CUTTER INSPECTOR REMARKS! — «H ^.^ mii I '. PIG. 155. CUT-DOZEN PRODUCTION ORDER AND REVERSE OP DUPLICATE ^08 PLANNING AND TIME STUDY A KNITWEAR FACTORY 309 Style . , ,, . Dm !!—»■< at M 4 M M « >• « n u It M I« n M 1* M 4* M t — IZIZ, r~---^^ b^ ! r 8 CWT / i * a ! S ^ •" ^ H t '^ B Z u ^ s s i s V6 X t- ^ m s I J K i -^ 5 ^vl • ^ ° NQ i i 1 s>> d 1 t • s 1 X o ; K S 1 1* ! WEA ORDI < i s 1 H o KNI KNITTING TO KNIT 1 ,,^ 1^^ ^ i ^ -^ Is A 2! Ai >^ A *a \ s 1 ««. ■i. "V "V 1 V >. V "k >» 1 V Q ^ ^ s $ ^ ^ ^ $ $ ^ V X «M «v» •> •^ ^ <^ *«b V» va K 1 1 i — 5 ^ ^ i? l< ^ .^ 5! t o 2 1 » * "? 5 CO ■ 1 e » •^ «^ <\ )> ^ ^ \ <;\ • X ik C^ H i c 1 § N6 ^ ^ § ^ 1^ ?^l ^ ^ • S; ^ 3 la 1 :S •^ "^ i 9 m j i ^ 5 J^ fc^ ^ ^ ^ 4 ^ ^ ^' ^ ^ .^ <» 1 . - 1. 1 > I o o amount shown by them was posted on the knitting order. The production thus posted was checked against a standard as shown on the order. Thus, if the ** Pounds per Machine" columns showed 30 pounds per day as the capacity of two machines, the CLOTH OPERATION AND STYLE CARD KNITWEAR CO. YARN CLOTH NO. OH' »0- OPERATION NAME EQUIPMENT 1 rimt n» 1 •00 l.SS. J \ \ ■ STYLE wcr. PC* DOZ. STYLE .or 1 rt* DOZ. 1 STYLE PC* ooz 1 __ FIG. 158. CLOTH OPERATION CARD production should be in the neighborhood of 60 pounds. Such a check proved to be a very helpful gauge of operations. The knitting orders were further reduced to a knit- ting schedule as shown in Figure 159. The schedule was developed by machine types— as, for example, 16- cut latch or 12-cut Cooper— and th^ different m^- 312 PLANNING AND TIME STUDY A KNITWEAR FACTORY 313 TTp,rfM„kiu. ¥ EMITTING Cm Si>rflUte ' I SUrW Ik. •i* Ta. tm «M* Ta. »m ww» Ta. •m 1 7 J 1 J J i J , \ j^^^ ^^^ __ ( J SCHEDULE L. '- *i. V^i* Tat *m ••^ Tm. 9la «•* Ta. / 1 ) [ 1 1 \ 1 1 1 1 FIG. 159. KNITTING SCHEDULE chines in each group were listed across the top of the order form, a column being reserved for each. In the style column of the schedule were listed the style of cloth, garment size, and weight wanted. The time was entered in a separate column, and the in- formation in regard to the time was obtained from the knitting order. Seaming and Finishing: Grouping.— The foregoing description explains the method of controlling the knitting operation. The remainder of the chapter will be devoted to a detailed description of the method of handling the seaming and finishing opera- tions. It was on the department in charge of these operations that the success of the planning system depended. As stated earlier in the chapter, seaming and finishing had previously been done according to individual cases as called for by the trade, but this HEAVY WEIGHT FINISHING SCHEDULE From To MEN'S 11 CUT UNIONS MEN'S 10 CUT UNIONS LADIES' HIGH . NECK UNIONS LADIES- VESTS UDIES' DUTCH^ NECK VESTS 'CHILDRENS UNIONS LADIES' PANTS Amt p*' 0»y Am't. per Oty Ami. per Day /oo Am't. per Dey' Am't. per Day • Am't. per Day so Am't. per D?y Ami. p«r W»«fc Amt. p«r Wctk Amt. per Week Amt. per Week too Am't. per Week soo Am-t. per Week Am't. per V'VeM . STYLES STYLES STYLES STYLES STYLES STYLES STYLES J //S/^ /f/A /J// A i-^/A /J// D f// A S^/ c -^ ttt A /r/A/CM JS/A ^2/ O /J//S i-// D /Si/ f2l A //>A /3(,/A S2/ r /3// r r//A 125 A /fSA yji/ YL /S-6//I /3// rc> IttA /r/A /S(,/ F /JM ly /4/A /9S-A »// / /4'SA /9rA JS/O /^ffA //6/A JJ-/SL J/(,SA 3s/ J //ifA ^//c /f7SA /Si./C> /1 7/ A /S6/F //S/A /3(,7FP . //t/B /36/V^ ■' — * 1 1 KG. 160. FINISHING SCHEDULE method had resulted in much dissatisfaction, chiefly because of unforeseen '* seconds." Whenever in an individual case a piece of second grade appeared, a shortage of the entire case was indicated and the. shipment was held until the replacement could be made. In order to distribute this possibility of short- age and to secure greater economy in production, the decision was reached that this method of finishing should be abandoned and individual orders should be grouped and finished in combination rather than by individual cases. Finishing Department Control. — The first step in operating the finishing department was to establish a schedule, as shown by Figure 160, as the control for production. In the finishing operations, it is nec- II; 5* ' 314 PLANNING AND TIME STUDY A KNITWEAR FACTORY 315 PACKING ORDER 3 ► • I 4 m . J - F r 1 s i . - « 1 •n i 1 wo* 1 r pi i 0»H in ■ «>ee \n M s a M 2 1 tin in • ' m • a k "SJ ( / ■n ■ d m § Q < — > t — 1.^ !s i _ ' i < 1 H Z < z z E ( 1,,.. _. _. . 1 ■ tf H CD essary to preserve a definite proportion as to variety of work, for the operatives as previously stated refuse to interchange. In order, therefore, to keep them occupied, a balance of work must be maintained. With such a schedule as that shown in Figure 160 established, the routine of control of the finishing department was maintained as follows: Case cards were drawn from the *' Demand File by Cases," the selection being made according to the delivery requirements. The number drawn was suffi- cient to fill the finishing-room schedule for a week. These cases were then classified according to the sec- tions of the schedule— for instance, ** Men's 11-Cut Unions,'' ^* Men's 10-Cut Unions," ^^ Ladies' High- Neck Unions." They were next sorted according to style, stamp, hanger, and so on, and were finally listed on the packing order, Figure 161, which showed the firm name, case number, and quantity of each size. Totals were listed on the packing order as indi- cated. This order was made out in duplicate; one copy was kept in the production department, and the other was sent to the packing-room foreman who packed the garments, as they came to him, in quan- tities and styles to meet the demand indicated on the packing order. From the packing order, a sending order. Figure 162, was made out in duplicate; one copy was filed in the production department, and the other was sent to the cut-dozen store-room, and then through the mill with the car containing the cut dozens. As the original sending order was returned to the pro- duction department, it was posted in the ** Boxed" ? lit M 316 PLANNING AND TIME STUDY A KNITWEAR FACTORY 317 'Wi' ii n 8 • ' r e n SS9 s ;; I,. A 1 i J^ 23? ^ S ID h 28? ^ i i ■ N « z. n Si 5 1 i O 235 •8? OS o I ul Q « •<• in ] Jl o 5 -ss 2 at p 1 w^ K **» iq 'as H ;; ^ oc 02 (0 Q ^ ^ ® U) z M i3 1 i > CI 1 "SS CO • ^> «*i e • 0) N 1 i .1 J < 1 )» *^ "^ w M 5 n il f i J 1 J I m f w 1 1 i 1 1 1 1 1 1 1 I 1 li il - 1 1 1 t s J i^j J 3 >• z i < p • I t 5 2 U « b 3 3 Q hi z iJI 1 1 J ( ::: 1 1 { ^ ■= i — ii 1 — *■ ( :it ( ( == !IJ J p— _i •II Y = , •SI "11 1 J / ■ ■ - 5 ^ „ =- „ 1 . \ ~ 1 |„ r / _ \ 1 1 — 1 J 1 \ 1 7 _ — - ) 1 1 j (' ' ' J ( / 1 1 ! i "\ ) j ) j \ ' ' \ ( ! 1 1 1 i 1 /• i i / i ! i! I i \ i ( i I i 1 ^ / / 1 I 1 i' ; i ! \ 1 ' '■ i ! [ l- |l Q HI u m o c w X/1 4' I 318 PLANNING AND TIME STUDY A KNITWEAR FACTORY 319 3 >• 8 3 i • 1 2S? 3 I 1 z < X 1 3 1 1 S 8 t s FINISHED STOCK INVENTORY CARD 28? , • 1 s [ ■ 1 285 : < I 1 1 i • * 1 1 1 1 m 1 K O m •SS ] 1 1 i * \ H m 1 *as ] • 1 . < a 1 •♦as ] 1 ili -. o 55 U4 O H 03 CO J/z* J^ INSTRUCTION CARD Order No ../.. Style No. /.?X!^, ;. Car No. #-1^/. OPERATIONS Stamp Hanger Box ^yxt^ /^^ixyrv Amt. Required >o yo yo Amt. Done J^ ^O !-^ %r ^'^f Foreman ^/^ PIG. 165. INSTRUCTION CARD column of the packing order — thus the balance to be packed was maintained. When all the cases of the packing order were shipped, the order was filed in the * Tacking Order Completed'' binder. The control of this sending was obtained by means of the sending schedule, Figure 163. Posted on this schedule was the total of the packing orders in the columns shown. Totals of the sending orders, Figure 162, were entered in the schedule column, as shown by the report from the cut-dozen stock record. The rush balance carried the difference between the total for each size schedule and the total sent. An inventory record of finished stock was main- tained (Figure 164). The *^ Boxed" column on this form was filled in from the instruction card, Figure " m -■ 320 PLANNING AND TIME STUDY A KNITWEAR FACTORY 321 165, which was returned to the production depart- ment from the folding department. The '* Shipped" column of the finished-stock inventory card was filled from the case card, Figure 151, which was returned to the production department indicating that the cases had been shipped. Forms Used. — The mechanism of planning in this particular plant has now been described. In order to focus the detail, the forms shown and discussed in the previous pages are listed herewith, and the manner and location of arranging and filing them is described: Confirmation of Order, Figure 150. This was made in duplicate, one copy going to the customer, the other being filed by order number in the production department as a master record of the order. ^ Card Case, Figure 151. This was made out in the produc- tion department in duplicate. One copy was filed in the pro- duction department, first by styles, and then by month of delivery. As this case card was applied on sending orders, it was transferred to a ** Sending" file, showing this move- ment, and was then transferred to a shipping file when the case had been shipped. Thus the files showed the status of each case, and hence the status of all customers* orders. The second copy of this card was filed by order number in the shipping department. Specifications Card, Figure 152. This was simply filed by styles; it served as a master definition of manufacture. Cut-Dozens Stock Sheet, Figure 153. This sheet, forming a loose leaf ledger, was arranged by styles and sizes and was maintained as described earlier in this chapter. Application Book, Figure 154. This was made out daily and was arranged first by styles and then by sizes. Cut-Dozens Order, Figure 155. This was made out in dupli- cate. The original copy (white) was filed in the production department by style of garment, and was then transferred to the ** Completed" file upon completion of orders. The duplicate (yellow) was filed in the cut-dozens stock-room by kind of cloth, and the production was posted on it. Knitting To Be Done, Figure 156. This sheet was filed by kind or style of cloth. Orders issued and production were posted on it; thus the balance ahead or to be done was main- tained. Knitting Order, Figure 157. This was made out in dupli- cate. One copy was filed by kind of cloth in the production department under the file guide ''Knitting To Be Given Out"; the second copy was filed, with knitting tickets at- tached, by machines under the heading "Knitting To Be Done". Both copies, after being placed in the knitting sched- ule, were filed, the first by cloth in the ''Knitting in Process" file, and the second by machines in the "Knitting To Be Done" file. As knitters' tags were returned, they were posted on both copies, and when knitting was completed, both copies were filed in the "Knitting Completed" file. Cloth-Operation Card, Figure 158. This was a file of kinds of cloth and was used simply as a reference for sequence and character of operations, and also the time required for each. Knitting Schedule, Figure 159. This schedule was filed by weeks, and the work was planned one week ahead. Machines were listed across the top of the sheet. Finishing Schedule, Figure 160. This was made out as a basis for finishing, and was used as a guide for sending cut- dozens to the seaming and finishing departments. Packing Order, Figure 161. This was made out in dupli- cate. One copy was filed in the production department by kind and style of garment; the other copy was sent to the 322 PLANNING AND TIME STUDY A KNITWEAR FACTORY 323 packing department, and was also filed by kind and style of garment. Sending Order, Figure 162. This order was made in dupli- cate. The original (white paper) accompanied the car through the mill as an identification of the contents of the car; the second copy (manila cardboard) indicated the prog- ress or status of the car, by means of a series of files, as fol- lows : (A) Sending orders applied. (B) Sending orders in seaming room. (C) Sending orders in finishing room. (D) Sending orders in folding room. (E) Sending orders in stock. These sending orders were moved through the files by daily reports to the production department of car movements. The filing arrangement of the sending orders in each of these files was the following : (A) Group, cut, style. (B) Style, car number. (C) Style, car number. (D) Style, order number. (E) Style, order number. Sending Schedule, Figure 163. The purpose of this sched- ule was to maintain the balance to be sent. The sending orders and the packing orders were posted on it in total. Finished-Stock Inventory Card, Figure 164. This was filed in the production department by styles, and was maintained as described in the text. Instruction Card, Figure 165. This was made out in the folding department, and was returned to the production de- partment. Installation Representative of Its Kind.— -The method of planning the production in a knit-under- wear plant has now been described in detail. As an installation it is of interest because it furnishes an adequate control of deliveries and full economy of operations without the exhaustive detail and great effort which the multiplicity of small operations would entail if they were minutely and separately controlled. The installation is valuable because it in- cludes the essential basis of economic operation and brings about the accurate direction of production. This discussion concludes the treatment of the active appli- cation of planning as described in the preceding chap- ters, and the installation with which it has dealt is representative of a successful system adapted to the requirements of the industry for which it was de- signed. THE METHOD OF TIME STUDY 325 CHAPTER XIII THE METHOD OF TIME STUDY Time-Study Classified.— The consideration of time- study included in Chapter VII, on Time Standards, I shall expand in detail along the following lines: 1. The Elements of Time-Study. 2. The Technique of the Stop-Wateh. 3. The Setting of Standards from Time-Study Data. The elements of a time-study reduce to two general types, which might be termed respectively. Fixed and Variable. A fixed element is one which permits of no variation without a change in the working condi- tions — for instance, by the cutting of metal after the machine has been thrown into automatic feed. A fixed element is not necessarily standard, and may be changed by a selection of a different feed, as in the instance cited above, but it is nevertheless an ele- ment which for the particular study is fixed and not subject to variation. A variable element is, as its name suggests, one which varies or is subject to fluctuations. It is essen- tially the human factor in the operation, and as such, is more important as well as more difficult to study. General Procedure: Elements of Time-Study.— The general procedure in making an analytical time-study 324 is to resolve the operation into its constituent ele- ments or motions, and then to observe, with the aid of a stop-watch, the time required for each element. In such a study full report should be made of all external conditions which bear upon the operation or upon its rate of production — as, for example, the kind of material, its hardness, and so on; the cut, feed, and speed; the kind of tools, the quality and supply of lubricant, the condition and tightness of the belt, the manner in which the work is brought to and taken from the machine, and so on. Possibly the best way in which to appreciate the form in which an analytical time-study is undertaken, will be to examine the sheets upon which the obser- vations are recorded. Naturally the form of this sheet will vary with the distinct processes of various industries, but the forms will show the principles, and the detail may be arranged to meet specific require- ments when necessary. These forms are shown in Figures' 166, 167, and 168, and it will be observed that they provide for a serial number for the study, the date and time when it is made, and full details as to the part and the operation that constitute the object of the study. They further show the machine number and the con- ditions with respect to cut feed, speed, and so on. The elements of the operation are then listed on the form, and the limits of the element are determined by the various stopping points. Thus the observer is prepared for the actual taking of the time-study. The form in which the pad and watch may be conveniently arranged is shown in the photograph 326 PLANNING AND TIME STUDY 1 1 i • ! i 1 ^^ "1 n J ►Y No..„.. No It. No I ■<< ( I 1 u Sheet id and Pa I n 1 R C i 1 1 K i ! { i t 1 M " « — — Ms 1 * J 1 i ] ! J 1 1 1 • '1 li' - O i - \ 11 1 d ) I 1 i 1 i SB "^ 6 1 z 1 •9 1 as 1 s 1 h i in ^ i / !^ ii ! - n t^ ♦ to - i- tt-f^ Kt'^ »w 'VV> i^^V ^^nrf CO «|f«^^^«nAnf * THE METHOD OF TIME STUDY 327 S UJ Z i o < u. o ui a. > o < o z < 0) 3 o I a i I Is o \ w I ** I Ik 1 < ^ I W Ik I a e I o I a " I SJ It O 0) z o < UJ Ou o ay 0) UJ oc H D 3 O Z X Z o UJ Z ? < (7 h- -> -1 < < H »- O o H H > CO UJ -I O UJ I o CO M Q H CO 1^ CD T— I d o Z UJ Z z o < 2 UJ > E o oc o oc O I- o CD O z o z UJ o (0 oc UJ a. -J UJ Z u. O d z UI o UJ a. u. O oc UJ 00 s z OD < I- o D »- (O UI Z O z > o 3 I- CO u Z jUl o 328 PLANNING AND TIME STUDY THE METHOD OF TIME STUDY 329 j___ 1 PANT kTIOH.., X u m ic / ■E / i 1 K n 8 i 1 ; 1 i t - ■, ! 1 w , ! 5 V STUDY NO.... 1 i § (i : 2 K 1 ; ' ? i ■ : • 1 i i i • ^ M A k i ! . A 1 TIME ItP.M O w S L a. S u >• m Z a i r i. : I • \ i 1 1 i i •• w y hi MM ; i 1 i i u »■ ; "ATE DC^ STOPPING POINT DATE MACHINE NO. - 4 1 4 a i 1 1 i • . ; 1 : : i i : • : i i : i • : : i 1 i : : 1 i j i ( tf o' of U : B B c z [ < < < < f Z z z Z g ( 1 %- fir /) ■«■ 1 ":is:i:;:::: n Q 00 d (Figure 169). There is merely a clip board or file, and the time-study blanks are placed in the file. The watch is attached by means of a string, and the board is held on the left forearm, while the watch is manipu- lated with the left hand, the readings being recorded with the right. Technique of the Stap- Watch. — The technique of the stop-watch is not difficult to master, but to form the habit of accuracy and * * stick-to-it-iveness " which its successful operation demands is not so easy. In general the stop-watches in use are of the accumula- tive type, although they are frequently supplemented by the split-second variety for special conditions. The dials read in either of two calibrations: seconds and fifths, or minutes and hundredths of minutes as in the case of the decimal watch. Both dials are illus- trated in Figure 170. I wish to describe the mechanism of the watches shown in this illustration. No matter which dial may be used, the accumulating watch has two distinct mov- ing devices: namely, the winding stem at the top, and the accumulating slide or stop at the left side. By means of this control the watch may be operated in various ways, according to the requirements of the study. The hand may be started only by the accu- mulating stop at the left, but it may be returned by the exertion of pressure on the winding stem, in which case, upon release of the stem, the hand imme- diately starts again. This suggests one way of using the watch for study, and it is a very quick and satisfactory w^ay if the observation involves no omissions of time. 330 PLANNING AND TIME STUDY THP] METHOD OF TIME STUDY 331 MG. 169. ARRANGEMENT OF STOP WATCH AND TIME-STUDY BLANK PREPARATORY TO ACTUAL. OBSERVATION FIG. 170. SECOND AND DECIMAL STOP-WATCH DIALS Whenever it becomes necessary to eliminate some small time in the observation of a motion, the accu- mulating stop serves the purpose, for it starts, stops without return of the hand, and starts again, begin- ning exactly at the point of stopping. It may be seen, then, that the following features are character- istic of this watch: (1) Starting with accumulator and pressing the winding stem so that the hand returns to zero, starting immediately on release of pressure on the stem. (2) Starting with accumulator, stopping with accumu- lator without the return of the hand, starting again with the accumulator, and so on until the observation is complete. (3) Starting with the accumulator and stopping with the accumulator, returning the hand to zero by INTENTIONAL SECOND EXPOSURE 330 PLANNING AND TIME STUDY R^ ; 1^ FIG. 169. ARRANGEMENT OF STOP WATCH AND TIME-STUDY BLANK PREPARATORY TO ACTUAL OBSERVATION rHK METHOD OF TIME STUDY rv 831 FIG. 170. SECOND AND DECIMAL STOP-WATCH DIALS Whenever it becomes necessary to eliminate some small time in the observation of a motion, the accu- mulating stop serves the purpose, for it starts, stops without return of the hand, and starts again, begin- ning exactly at the point of stopping. It may be seen, then, that the following features are character- istic of this watch: (1) Starting with accumulator and pressing the winding stem so that the hand returns to zero, starting immediately on release of pressure on the stem. (2) Starting with accumulator, stopping with accumu- lator without the return of the hand, starting again with the accumulator, and so on until the observation is complete. (3) Starting with the accumulator and stopping with the accumulator, returning the hand to zero by T 332 PLANNING AND TIME STUDY means of pressure on the winding stem, in which case the hand remains at zero and may be released or started again only with the accumulator. By operating two watches at once it is frequently possible to obtain complementory readings, which will expedite the making of a study. So much, then, for the manipulation of the stop watch. Dial Calibration. — The matter of the form of dial calibration — that is, decimal versus seconds — is largely one of personal taste rather than of technical advantage; one man will prefer a decimal dial, and another a second dial. A marked advantage of the decimal dial is the ease of computation which its readings permit. Since the seconds appear as deci- mals of minutes, any calculation, whether it be multi- plication or addition, is materially simplified. It has become quite general practice in time-study to limit to ten the number of observation made of a motion. The standards are set on studies of ** mul- tiples of ten" observations, rather than having a host of observations in one study. This is done largely because ten observations can be better handled than a greater number in the selection of a standard time for a motion, and because ten is about the small- est number that will insure a fair average. Various other forms of watches have been devel- oped; one that has been advertised considerably has a dial which shows the equivalent of time in rate of production, making possible somewhat of a short cut if the study is an approximate one. It may also be used like a straight dial in analytical studies. THE METHOD OF TIME STUDY 333 Setting standards from Time-Study Data. — ^It has been seen that an analytical time-study is a work of considerable refinement and one which exacts patience and care. The principle on which it operates — namely, the subdivision of an operation into its ele- ments and the study of the times on each of the elements — has been presented. The manner of using the stop-watch for this purpose has been described. The next point for consideration is the basis upon which the standard may be deduced from the obser- vations made. Up to this point the making of a time-study is a work which requires definite qualities of a fairly high order on the part of the observer, but the setting of a standard involves capacity beyond that needed for observation — it demands well-balanced judgment, good technical understanding, and a knowledge of the effect of fatigue on performance. In a campaign of time-studies, a good method of procedure is to send several men into the shop for purposes of observa- tion and have the studies made by them and super- vised by the head time-study man, who should be the one to set the standards. The selection of the standard time for a particular motion in an operation is a process which it is diffi- cult to outline. The standard is not an average, it is not the average of the means after the elimination of the extremes (the high and the low) ; it is a com- bination of all, with the exercise of judgment, and it is a task of considerable difficulty. Of course, the observations should develop most leading information as to weaknesses in the shop 334 PLANNING AND TIME STUDY THE METHOD OF TIME STUDY 335 operation, either technically or in the system of con- trol. Although I have made extensive time-studies, I know of no other method of observation besides time-study which will bring out in striking relief the possibilities for improvement and the basis of standards, and an alert observer, through inventive suggestions, may make time-study an invaluable con- • tribution to the management. Indeed, the chief pur- pose and result of time-study is to improve conditions first, and then to arouse in the operative a realiza- tion of the full possibilities of the improved condi- tions. So, when the study is carried on, full notes should be made of all irregularities and difficulties that actually impede production, and suggestions should be made concerning betterment in conditions which will increase production. Naturally, if the study re- veals opportunity for changing conditions, for in- stance, attaching an automatic knockout, speeding up a spindle, or supplying lubricant, the setting of a standard must await the completion of the improve- ment; the chief value of the study then is with re- spect to the improvement, and it will have to be re- peated under the new conditions when the standard is to be established. There are many cases which present dangerous pitfalls into which the unwary or unskilled observer may fall. I have heard of a case in which a time- study man took very careful observations on a drill- ing operation and, from the information, established a standard which subsequently became the basis of a piece rate. The introduction of the rate was watched with interest, but the record of the week's production based on this rate showed impossible results, so that an immediate investigation was called for. It was found that the time-study man had stupidly failed to notice that the drill used was a carbon steel drill and that the rate had been set accordingly, but the operative had substituted a high-speed drill when he started on the rate and had simply ''cleaned up" at the other fellow's expense. This example typifies the traps which beset rate- setting and which prove that it is best to go slowly and thoroughly and be right, than to hurry and thus risk the possibility both of great loss and of gross injustice. So the establishment of a standard must await the institution of such mechanical or operative improvements or such standardization of conditions as the study shows to be possible, and then the stand- ard must be set on the basis of further study under the new conditions. Representative Time-Studies. — ^At this point I wish to introduce a number of representative time-studies (Studies Numbers 1 to 7, inclusive), which illustrate the principle of subdivision with elementary motions, and the methods of basing standards on the time ob- servations made. Allowing for Fatigue. — These studies show the manner in which standards on the individual elements are developed from the time observations, but it is necessary, in establishing the standards for the whole operation, to consider the allowance required for fatigue. 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CO J> CQ «» CO C (5 s* t: I M u I I S c .1 •o C/3 CO 8 CO a> 00 (O v2 in CO CM g c/3 in CO »H 00 to t^ CO CM <0 00 CO CO t^ t£> t>. CO CO 00 00 to CO 00 to to CO CM 00 Tf 00 CO O to lO CM Tf t^ in Lo CO Oi lO Tj* CM O to CO CO cv) oj lo in CO •I 5 -5 c o »-4 »— I K i_j t: t-?? Q E (J c c o bO c c c o a CO p c ^ tJ o bo C 3 u .2.S 52 eg .C 4^ S >» TO a; C s ^ u| si E § CO O) (d C tS - g coi2 CO cd "5 bO ^T3 C O J5 D. •!-■ ^ ^ rt 2 **^ > . ^ 0) C x: o -s c: _ ^ CO S "o JS THE METHOD OF TIME STUDY 343 342 which the report of the British Health Munition Workmen Committee describes as follows: *' Fatigue is the sum of results of activity which show themselves in a diminished capacity for doing work/' Fatigue, and necessity of making proper allowance for its influence, are the chief difficulties in connec- tion with setting standards. The British Committee just mentioned goes further than merely to state the fact of fatigue, and makes the following sweeping statement: The problem of scientific industrial management, dealing, as it must, with the human machine, is fundamentally a problem in industrial fatigue. The rhythms of industrial conditions given by the hours of labor, the pace of machinery or that of fellow-workers — or that which is set by other factors— is imposed upon the acting bodily mechanisms from outside. If the paces set are faster than the natural rhythms, they must give accumulated fatigue and cause an increasing debit, shown in diminished capacity for work. It is therefore the problem of scientific management to discover in the inter- ests of output and of the maintained health of the workers, what are the maximum efficiency rhythms for the various faculties of the human machine. These must be determined by the organized collection of experiences or by direct ex- periment. They must be separately determined, moreover, not only for the performance of relatively simple muscular movements, all of which depend on the action of the lower nervous centers, but also for the higher co-ordinating centers, and for both of these types of centers the natural rhythms must be studied for the best arrangement of short spells, and pgain for that of the hours of shifts, of the periods of sleep, and, at the last point, of the scale of holidays. 344 PLANNING AND TIME STUDY THE METHOD OF TIME STUDY 345 Time Standards and Scientific Maaiagement.— The setting of standard is essentially a matter of allow- ance for fatigue, and Professor Hoxie, of the Uni- versity of Chicago, in his report on Scientific Man- agement and Labor, which he rendered to the U. S. Committee on Industrial Relations, has arraigned the principle of scientific management because of its claim to scientific precision in the matter of time standards in spite of the fact that fatigue is still largely an uncertain factor. After describing the method of taking time-studies, Professor Hoxie com- ments as follows upon the setting of standards from the studies: Far from being the invariable and purely objective matters that they are pictured, the method and results of time-study and task-setting are in practice, the special sport of indi- vidual judgment and opinion, subject to all the possibilities of diversity, inaccuracy, and injustice that arise from human ignorance and prejudice. Professor Hoxie does not charge all time-study and task-setting with inadequacy, for he states further: **The writer has seen examples and results of this work which commanded his unqualified admiration, and he has no hesitation in affirming that time-study may thus be used toward revolutionary improvements in current methods generally." He then dilates upon the great range in time-study methods, from those of the grossest inadequacy to those in ** shops where no tasks based on immediate time-study were set without months or perhaps years of preliminary preparation, and hundreds of time- studies made solely for purposes of improvement and standardization." Unquestionably many standards are set which war- rant the sharp criticisms of Professor Hoxie, but generally the basis of setting is one of careful con- sideration of all factors involved. The purpose is to show fairness to all concerned and the result is im- provement, if not always perfection. F. W. Taylor an Fatigue. — The matter of fatigue is admittedly the chief element causing difficulty in the setting of a standard, but even this, while it has not been reduced to terms of indisputable scientific pre- cision, has been brought within specified and accu- rate limits and considers the exhaustion of workers, a subject which Professor Hoxie emphasizes, and which has been carefully considered by the British Committee. It has not been left to Professor Hoxie or to the British Committee to discover the element of fatigue, for the pioneers of time-study soon recog- nized it and included its investigation as an important factor, as the following extract from Mr. F. W. Taylor's book, ** Scientific Management," indicates: **In preparation for this system, the writer realized that the greatest obstacle to harmonious co-operation between the workmen and the management lay in the ignorance of the management as to what really con- stitutes a proper day's work for a workman. ** Among several investigations which were under- taken at this time, one was an attempt to find some rule, or law, which w^ould enable a foreman to know in advance how much of any kind of heavy laboring work a man who was well suited to his job ought to 346 PLANNING AND TIME STUDY THE METHOD OF TIME STUDY 347 do in a day; that is, to study the tiring effect of heavy labor upon a first-class man. Our first step was to employ a young college graduate to look up all that had been written on the subject in English, German, and French. Two classes of experiments had been made: one by physiologists who were studying the endurance of the human animal, and the other by engineers who wished to determine what fraction of a horsepower a man-power was. These experiments had been made largely upon men who were lifting heavy loads by means of turning the crank of a winch from which weights were suspended, and upon others who were engaged in walking, running, and lifting weights in various ways. However, the rec- ords of these investigations were so meager that no law of anv value could be deduced from them. We therefore started a series of experiments of our own. **Two first-class laborers were selected, men who had proved themselves to be physically powerful, and who were also good steady workers. These men were paid double wages during the experiments, and were told that they must work to the best of their ability at all times, and that we should make certain tests with them from time to time to find whether they were * soldiering' or not, and that the moment either one of them started to try to deceive us he would be discharged. They worked to the best of their ability throughout the time that they were being observed. **Now it must be clearly understood that in these experiments wc were not trying to find the maximum work that a man could do on a short spurt or for a few days, but that our endeavor was to learn what really constituted a full day's work for a first-class man — the best day's work that a man could properly do, year in and year out, and still thrive under. These men were given all kinds of tasks, which were carried out each day under the close observa- tion of the young college man who was conducting the experiments, and who, at the same time, noted with a stop-watch the proper time for all of the motions that were made by the men. Every element, in any way connected with the work, which we be- lieved could have a bearing on the result was care- fully studied and recorded. What we hoped ulti- mately to determine was what fraction of a horse- power a man is able to exert: that is, how many foot-pounds of work a man can do in a day. ** After completing this series of experiments, therefore, each man's work for each day was trans- lated into foot-pounds of energy, and to our sur- prise we found that there was no constant or uniform relation between the foot-pounds of energy which the man exerted during a day and the tiring effect of his work. In some kinds of work the man would be tired out when doing perhaps not more than one- eighth of a horsepower, while in others he would tire to no greater extent by doing half a horsepower of work. We failed, therefore, to find any law which was an accurate guide to the maximum day's work for a first-class workman. **A large amount of very valuable data had been obtained, which enabled us to know, for many kinds of labor, what was a proper day^s work. It did not 348 PLANNING AND TIME STUDY THE METHOD OF TIME STUDY 349 seem wise, however, at this time to spend any more money in trying to find the exact law which we were after. Some years later, when more money was avail- able for this purpose, a second series of experiments was made, similar to the first, but somewhat more thorough. This, however, resulted, like the first ex- periments, in obtaining valuable information, but not in the development of a law. Again, some years later, a third series of experiments was made, and this time no trouble was spared in our endeavor to make the work thorough. Every minute element which could in any way affect the problem was care- fully noted and studied, and two college men devoted about three months to the experiments. After these data were again translated into foot-pounds of energy exerted for each man each day, it became perfectly clear that th^re is no direct relation between the horsepower which a man exerts (that is, his foot- pounds of energy per day) and the tiring effect of the work on the man. The writer, however, was quite as firmly convinced as ever that some definite, clear-cut law exists as to what constitutes a full day's work for a first-class laborer, and our data had been so carefully collected and recorded that he felt sure that the necessary information was included some- where in the records. The problem of developing this law from the accumulated facts was therefore handed over to Mr. Carl 6. Barth, who is a better mathe- matician than any of the rest of us, and we decided to investigate the problem in a new way, by graph- ically representing each element of the work by plot- ting curves, which should give us, as it were, a bird's- eye view of every element. In a comparatively short time Mr. Barth had discovered the law^ governing the tiring effect of heavy labor on a first-class man. And it is so simple in its nature that it is truly re- markable that it should not have been discovered and clearly understood years before. The law which was developed is as follows: **The law is confined to that class of work in which the limit of a man's capacity is reached because he is tired out. It is the law of heavy laboring, corre- sponding to the work of the cart horse, rather than that of the trotter. Practically all such work con- sists of a heavy pull or a push on the man's arms, that is, the man's strength is exerted by either lift- ing or pushing something which he grasps in his hands. And the law is that for each given pull or push on the man's arms it is possible for the work- man to be under load for only a definite percentage of the day. For example, when pig iron is being handled (each pig weighing 92 pounds), a first-class workman can be under load only 43 per cent of the day. He must be entirely free from load during 57 per cent of the day. And as the load becomes lighter, the percentage of the day under which the man can remain under the load increases." Mr. Taylor's experiments were conducted on the most arduous form of manual labor and indicated that a man would have to be free from load in work of that kind for as much as 57 per cent of the day. The study shows serious endeavor to develop the weight of the factor of fatigue in human productive capacity, but there yet remains much to be deter- 350 PLANNING AND TIME STUDY THE METHOD OF TIME STUDY 351 mined as to fatigue in the whole gamut of industrial activity, and it must be admitted that except for the kind of labor in Taylor's study, the method of allow- ance for fatigue is still largely empirical. Rate-Setting and the Fatigue Factor.— However, as the years have pased many rates have been set and the men engaged in this work have been doing what the British Committee suggested— that is, *' organiz- ing their experience," and it has been found that the fatigue allowance with which to modify the straight time of operation varies from 10 to 40 per cent according to the degrees of the manual exertion involved, the size of the unit handled, and so on. The allowance for fatigue is thus seen to be a difficult matter, and the success of rate-setting for the establishment of time standards is directly de- pendent upon the selection of an adequate and just fatigue factor. It is difficult to formulate a rule for selecting the proper fatigue allowance, but the process might be explained by the description of a certain piece-rate installation which involved an in- teresting application of the principle. The rates covered the spinning of a hemp yarn as preliminary to the laying up of rope. The opera- tion was almost fully automatic, and was manual only in the changing of bobbins, the splicing of broken ends, and so on. It was found that about 80 per cent of the operative's time was consumed in automatic machine production; 20 per cent of the operative's time was used in the changing of bob- bins, and in similar work. However, the frequency of bobbin changing varied with the size of the yam, 15 ■■^" •^ ^ *v ■ y ^ ■^ o z ^ ^ ^^ a. ^ ^ ^^^ u 10 r ^^ "V ^ o ^ ■^v — 8 •S >.^ ^ V. z ■^ % s — in ^ ^ •^ fc*- O V ■^ O I 1 II 12 13 FATIGUE ALLOWANCE, PER CENl 14 IS PIG. 171. GRAPH SHOWING METHOD OF MAKING FATIGUE ALLOWANCE IN ROPE YARN SPINNING the coarse yarn requiring three times as many changes as the fine yarns, which filled the bobbins more slowly. In applying the fatigue allowance in this case, the per cent was graded according to the activity of the operative, which in turn depended upon the size of the yarn that was running. The method may be better understood if the graph shown in Figure 171 is consulted. This graph was drawn allowing a range of 10 to 15 per cent for fatigue according to the size of the yam or its rate of production. In order to understand the use of the graph, assume that there are two yarns. The studies show that the number of hours to spin 100 pounds per spindle, are: A— 2.6 hrs. per 100 lb. B— 10.5 '' "■ 1001b. 352 PLANNING AND TIME STUDY THE METHOD OF TIME STUDY 353 Kefer now to the straight-line curve: the following fatigue allowance would be taken: For 2.6 hours per 100 pounds, the fatigue allowance is 15 per cent. For 10.5 hours per 100 pounds, the fatigue allowance is 11.7 per cent. Then the standard would be as follows: 2.6 -h 15 per cent = 2.99 hrs. per 100 lb. 10.5 + 11.7 per cent = 11.72 ** ** ** " Since this is only one case of the application of the fatigue factor, I would recommend that it be taken only as an example and not as representing a rule. As part of the consideration of fatigue, it is quite necessary to state that the manner in which the allowance is made use of has been recognized as of almost equal significance as the amount of the allowance itself. That is, it has been seen that rests of regular intervals tend to be more refreshing than the haphazard relaxation dictated by the varying moods or feelings of the operatives. Pace, and Rest Periods. — The case of the laborer is closely analogous to that of the foot-racer in this respect: for example, a runner may **tear up the track" in the first lap of the mile race and so com- pletely use himself up as to have no reserve left for the rest of the race. Pace is a matter of careful ad- justment and means much in ultimate results, and it is with the object of controlling pace with a view to the balance of maximum results consistent with good health and longevity, that rest periods have been devised and have been employed very success- fully. My first experience with this phase of time-study occurred while I was studying an operation involving the rough grinding of a thin drop-forging. The work was exceedingly severe, and no man seemed able to stick to it. Study revealed much greater possibilities than any of the operatives had appeared capable of, and yet even when a rate was set, the men failed to make out satisfactorily. The plan of using definite rest periods on the jobs came up and was tried. Every thirty minutes the man rested five minutes; then he was allowed to rest 3.5 minutes every twenty minutes, and it was found that under these circumstances he made his rate and stuck to the job. This rest-period plan since that time has been cour sidered more thoroughly, and several manufacturers have employed it with success. For example, a but- ton company has arranged a schedule whereby every hour each girl stops work for six minutes and is at liberty to walk about a large rest room, or dance to victrola music in the same room, according to her tastes. As yet, the matter of determining the synchronous effect of effort and its cycle of fatigue (as the British Munitions Committee desired) has not been consid- ered thoroughly, and to many manufacturers the idea will appear ludicrous and unbusinesslike. But since the matter is one of industrial moment, and since it has been demonstrated that proper consideration of it has brought improvement, I have mentioned it in connection with fatigue and the matter of time stand- ards. 354 PLANNING AND TIME STUDY THE METHOD OF TIME STUDY 355 Rate-Setting as a Profession.— The setting of rates as time standards is a work which requires special ability, and should be done by men who make it their profession. To quote Professor Hoxie again: This being true, the time-study man is, from the viewpoint of labor, the central figure in scientific management— its vital organ and force. To perform his functions properly, to make scientific management tolerable to labor, he must be a man exceptional in technical and industrial training, a man with a broad and sympathetic understanding of the workers, as well as of the economies and social forces which condition their welfare, a man of unimpeachable judgment governed by scien- tific rather than pecuniary considerations, and withal he must occupy a high and authoritative position in the management. Motion-Study.— The method of time-study has been presented completely in this chapter. The principle of subdivision into elments, the technique of the actual time observation, and the establishment of the standard for the elements, have been given m detail together with examples of studies actually made. But it would be incomplete to conclude a considera- tion of time-study without discussion of a further refinement which is defined by the term ^'motion- study." This operates on the same principle that governs the improvement of a standardi'^ation of working conditions— such as speeding up a spmdle, double belting, or providing properly ground tools- which may be made as the result of time-study. Motion-study is a critical examination of the ele mentary motions of an operation, to determine the partial or complete superfluity of any one or several of those motions. It is a very constructive under taking and involves a campaign of study and educa- tion which can frequently be justified only by a manufacture in which the product and the operations are highly repetitive or standard. Changes in machine conditions may be made easily as a rule, and permanently, but the object of motion- study is to change the habits of movement of the operative, and while this has been done with notable success, it is a work of infinite effort and extraordi- nary detail. However, it has been done very success- fully and with decided benefit to many manufactures, and the method is an indispensable part of any treat- ment of time-study. Possibly the best way in which to appreciate the field of motion-study is to make time-studies of the jobs of several efficient operatives engaged on the same work and, preferably, on a manual operation requiring considerable dexterity. It is the invariable experience to find from such studies that one operative will employ either more or fewer motions for the work than another, and fre- quently the range of variation will be astonishing. I have observed cases in which the number of motions of one operative on a piece of work were just double those used by another operative for the same opera- tion. Naturally such conditions account in part for the differences in productive capaisity between one worker over another, and when motion-study equates such differences to the high point of production that it has done, it makes a valuable economic contribu- tion. Stop-Watch, Moving Picture, and Camera. — The process of motion-study is an extremely detailed one :J5G PLANNING AND TLME STUDY THE METHOD OF TIME STUDY 357 and involves a far more intensive study than that for straight setting of time standards. The stop- watch may be used in motion-study work, which has also been facilitated by the adoption of the mov ing-picture machine, as in the case of the experiments conducted by Mr. F. B. Gilbreth, who, it appears, has made a most extensive exploitation of motion- study. Mr. Gilbreth has also devised a method of determining by means of photographs the arc or orbit of a motion by the ingenious use of a bulb light, which, as it traces the motion, defines it upon the plate. But whether the watch or the camera be used to determine the motions and their relative needlessness or possibility of curtailment, the method of motion-study is an extremely fine and detailed analysis of an operation as it is actually done, and then a careful construction, or synthesis, of the opera- tion as it should be done with least expenditure of time and energy. Case Illustrating Mation-Study.— This statement of the principle of motion-study I shall now amplify and elucidate, and I shall use as an illustration a recent case that came under my own observation. The study in question dealt with the folding of undergarments, preparatory to boxing and shipment. The old motions of folding, and the new motions adopted as a result of the motion-study that was con- ducted, are here described : Folding Shirts. — The original knit cloth comes in a tubular form varying in diameter in accordance with the cutting requirements. Therefore, instead of there being an edge on the sides when they lie flat, the LC .>FF i VEST BEFORE BEING REFOLDED A ] E F B VEST AFTER HAVING BEEH REFOLDED PIG. 172. MOTION STUDY ON FOLDING OPERATION cloth merely turns. For the purpose of economical cutting, the incision is made in the center of the garment for the waist-line curve and arm pit, and the garment is then refolded so that the incision in the center becomes the outline that follows the form of the body. In the first of the illustrations provided herewith (Figure 172) to aid in the description of the opera- tion, there is shown the tube of cloth as it lies when received from the cutter. The second sketch on the same sheet shows the shape of the tube after it has been refolded. It will be noted that the arm-pit and waist-line curve is the natural result of bringing together the different points denoted by the letters 358 PLANNING AND TIME STUDY f^^p^' ^^^^^iT-^r.. "3^ PILE REFOLDED f I PILE TO BE f I B REFOLDED '■^///////^"l/7/yy %M^xV^/^^^^-^-' ' ' OLD MOTION NO. 1 ^ ^ 'y^m im^m^^^ Si ^ OLD MOTION N0.2 'mmr/< ^:^ ^ OLD MOTION NO. 3 :^^^^^ ''■■^y/y.^ -y-^^j^j^-^ |B OLD fN MOTION ^^N0.4&S OLD MOTIOtTNoTe"'-^^ OLD MOTION N0.7&.8 DO OLD MOTION N0.9&.I0 wm^'- 1 ^/y/y/y^^'; ' ^^ V N OLD MOTIof^^^^NOJ FIG. 173. OLD MOTIONS ON FOLDING OPERATION THE METHOD OF TIME STUDY 359 of the alphabet in the manner shown thereon. It would appear to be an extremely easy matter to re- fold the cloth— in fact, it is a very simple operation— but the opportunity of economy in movement is at times greater in the simple operations than in the more complex. By making a careful time-study of each motion entering into the entire operation, it was possible to reduce the number of operations from eleven to four. These time-studies were made with stop-watches. Before I describe the new motions that were adopted, I shall explain what the old motions (Figure 173) were. The Old System.— Old Motion No. 1.— The two piles were placed on the bench alongside each other, and the operator stood at the foot of the riglit-hand pile. Hereafter, when the foot of the garment is referred to it should be understood that the bottom of the vest is meant. It will be noted that the position of the operator is indicated upon the various illustra- tions by the outline of the feet. The movement of the feet, however, is not counted as a movement if it is accompanied by a hand or arm movement, since, both being made simultaneously, the feet movement need not be considered as requiring any additional time. Old Motion No. 1, therefore was the reaching forward from position to pick up the garment to be refolded. Old Motion No. 2.— This was wholly a finger move- ment, the bottom of the vest being grasped with both hands. The thumbs of both hands were inserted between the two sides of the cloth, and the first two fingers of each hand were placed on the outside, oppo- 360 PLANNING AND TIME STUDY THE METHOD OF TIME STUDY 361 site the thumb, so that, in reaching, the thumb pressed the cloth at the points grasped between the two fingers, forming the beginning of a new fold. Old Motion No. 3. — Grasping the garment at the new folds, shown at A and B, the operator lifts it off the counter to a position in front of him. At the time of lifting, points A and B were drawn apart so that by the time the garment was brought to the front of the operator, the old crease, or fold, had been straightened out and the new one had been formed at the sides. Old Motions Nos. 4 and 5. — ^Various time-studies show that the operator would shake the garment from one to six times, to extend the crease from the point of holding (at A and B) down the side of the garment to its head. On one or two occasions it was noted that a shake was not given, but these occa- sions were rare exceptions, and although it was found that under the old method of operation the number of shakes averaged three, this study showed that only two of these movements were of advantage, conse- quently under Old Motions Nos. 4 and 5, only the two shakes required to **perpetuate" the fold will be con- sidered. Old Motion No. 6. — This was wholly a foot motion, and is considered because the hands remained idle. It was the step taken from the pile to be folded, to the pile upon which the garment was laid after it had been refolded. Old Motions Nos. 7 and 8. — Having taken a new position, the operator reached forward, still holding the garment at points A and B, until the head of the garment appeared to rest at the head of the pile of refolded garments. It should be said that during the many repetitions of the operations that were watched, it was not found in a single instance that the man was able to lay the garment so that adjust- ment was not necessary. In short, when the garment was held at points A and B, the distance from the point of contact with the pile (i. e., the length of the garment) was such that the operator was unable to bring the two heads into alignment with each other. Old Motion No. 8.— This was the motion that was used when the garment was laid down — after the point of contact (even if not an exact one) had been found. Old Motions Nos. 9 and 10.— Points A and B had by this time been released. The garment lay on the new pile in its new form, but unevenly because it could not lie in exact conformity with the outline of the pile. The operator, therefore, reached forward and grasped it at points CC and DD. Old Motion No. 10.— This motion was the drawing forward of the garment at points CC and DD until the outline of the pile was matched. At times the operation was an adjustment in the other directions, but as only one of the two movements was necessary in an operation, only one is shown in the illustra- tions. At times an additional movement of adjustment was necessary, since by the pulling at points CC and DD the garment underneath was disturbed and had to be smoothed out. This was due to the fact that in the drawing along the surface with all of the 362 PLANNING AND TIME STUDY points of the garment in contact with that below, the nap adhered and dragged the other garment out of its alignment with the rest of the pile. Since this did not always happen, however, the extra motion which would be used to adjust the garment thus dis- turbed, was not included in the new plan of opera- tion. Old Motion No. 11. — The operator stepped back to a point at the head of the pile of garments to be re- folded in order that he might begin again the opera- tion as shown under Old Motion No. 1. The New System. — Now I shall describe the method by which it should be possible to refold the garments without the many movements employed under the old system (Figure 174). To begin with, the bench is sufficiently low to permit the man to reach over the pile in front of him without inconvenience or un- due effort, as the operator does in folding union suits. The pile does not at any time reach a height that would render this impossible. Therefore, the pile to be folded is placed behind the pile that has been refolded. This method eliminates all foot movement, as a man can assume a set position and need not move except when it becomes desirable to change position on account of fatigue. New Motion No. 1. — This is identical with Old Motion No. 1, i. e., reaching forward to grasp the garment. New Motion No. 2. — The garment is grasped at points A and CC. The first finger is inserted at point A between the folds of cloth. The thumb and the second finger are pressed down upon it so that the THE METHOD OF TIME STUDY 363 m PILE TO % REFOLDED -f yA PILE REFOLDED SZ2ZS! l-""j ">'•• • mtn"'n>r . i I ^ NEW MOTION NO.l ■<>?;?%>g^^^^^^-- . NEW MOTION NO. 2 :^^/>f h^ -^ 5» t ■ 1 — (vjio^4oa)r*»ooo> 1 I" I ^ -J K I "SI I r I ■r I bJ S a o o I uu i U ! I u I u I ^ UlJ I o — vO»*-<00>0—