SCIENTIFIC MANAGEMENT AND THE LUMBER INDUSTRY 729 



DECREASING MANUFACTURING COST 



The manufacture of lumber is under the direct supervision sf the manage- 

 ment and the details of organization have received more careful attention than 

 those in woods work. Certain forms of mill work also lend themselves more 

 readily to standardization. Among these may be mentioned unloading logs at 

 the pond, lumber jyiling and loading, dry kiln work, etc. Work of this char- 

 acter is frequently performed by contract, but even so it may not be done 

 economically. In numerous instances the costs of manufacture could be 

 reduced by a careful study of conditions at the plant. 



An example of this was observed in a large mill in the South where, for 

 that section, an unusually intelligent class of foremen were in charge. The 

 cost of operation was considered below the average of mills in the region 

 and the management was satisfied with the results. 



The plant consisted of two separate mills, yards, and planing mills, but 

 had only one system of sheds. The yards were each in charge of a foreman, 

 and the sheds were under the supervision of one man. A certain amount of 

 jealousy arose between the different foreman in an effort to keep down the 

 cost in their department, and each man was inclined to throw minor expenses 

 on some other foreman. 



To obviate this and to secure closer co-operation among the foremen 

 engaged in handling lumber, a re-organization was made. One yard foreman 

 was assigned to other work and the two remaining men were called to the 

 ofiSce and a proposition made to them. The management calculated that tlie 

 cost of operation in the two departments, through co-operation could be reduced 

 at least ten cents per M feet. They therefore proposed the following: they 

 would guarantee to each foreman the regular salary he had been receiving and 

 in addition one-half of all the saving effected below the sum fixed as the 

 standard cost. 



No provision was made by the management for compensating the indi- 

 vidual woi'kmen, since the foreman had the authority to hire such labor as 

 they required and pay such wages as were necessary. 



The proposed plan met with much favor, and after discussing the situation 

 the foremen decided that they could dispense with fifteen men in the two de- 

 partments, and accordingly had them transferred to other work. The tasks of 

 some men were increased with added pay, in other cases a more systematic 

 plan of operation took care of the extra work without imposing undue burdens 

 on any laborer. 



The results secured by this arrangement were favorable from the start, 

 and the foremen not only kept the price to the standard set, but soon 

 had reduced it five cents, and had in view new methods which would still 

 further cut do^Ti the cost. The consequence was that the company was getting 

 its work done cheajjtr than formerly and the foremen were making higher 

 wages than they could hope to secure under the old system. A stronger per- 

 sonal interest in the work on the part of the men concerned was manifest from 



