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Hardwood Record — Veneer & Panel Section 



January 10, 1917 



Walnut Buyers Know the 

 Meaning of PENROD 



Those who have had experience in 

 buying American Walnut stock 

 know what an advantage it is to deal 

 w^ith Penrod. This means, first, com- 

 plete stocks, w^ide variety, excep- 

 tional character of material; second, 

 long experience, expert know^ledge, 

 ability to insure satisfaction. 



We Have What You Want 



PLAIN AND FANCY STOCK 



Veneers and Lumber 



The illustration shows some of our 

 Burl Walnut Veneer Stock, matched 

 up to form a panel of exceptional at- 

 tractiveness. If you want your prod- 

 ucts to have character and distinctive- 

 ness, and to be w^orth expending all 

 the care and labor which must go on 

 them, regardless of the quality of the 

 foundation material, you w^ill make 

 no mist&ke in using Penrod Walnut. 



Penrod Walnut & Veneer Co. 



"Walnut Specialists for Thirty Years" 



Walnut Lumber Walnut Veneers 



KANSAS CITY, MO. 



AU Three of U* WUI Be Benefited 



same payroll, the same equipment, the same overhead, 

 he has boosted production 50 per cent I This is nothing 

 short of astounding, and yet it has been done! 



"The change which we have put into effect in our 

 plant," said this manufacturer, who is generally regarded 

 as one of the leading exponents of efficiency in the wood- 

 working business, "has certainly meant a lot to us. I 

 realized for a long time that we were working according 

 to a very bad system when we waited for our orders to 

 come in, and then made them up one at a time, each 

 order, no matter how small, going through separately 

 and individually. 



"Our cost records showed us the actual machine time 

 and labor expense put in on each job, but the time not 

 accounted for, which was used up in adjustments of 

 machines, was charged to overhead. This was distrib- 

 uted over our entire production, a fairly satisfactory way 

 of disposing of the item, though as a matter of fact it 

 encouraged the small order, by not putting a penalty 

 upon it. The small order, in this sense, was a special 

 order which had to go through separately. 



"We made some tests in our plant, and found out that 

 whenever we could increase the run, we cut down the cost 

 immensely, by saving this time. We also proved the 

 converse of this by showing that owing to the immense 

 number of individual -machine changes in our plant, we 

 were losing heavily both in labor and machine efficiency. 

 So we decided to make the change. 



"Quantity production is now our slogan, and in order 

 to do business with us the customer must have require- 

 ments that fit our system. If he doesn't, he has to pay 

 a considerably higher price, which is practically an auto- 

 matic system for the elimination of business v^hich we 

 cannot handle to advantage. We have found that there 

 is enough of the standardized business available to give 

 us all that we can do, and inasmuch as w^e are better 

 prepared to handle this than anybody else not working as 

 we do, we are in an excellent position to compete for 

 the special trade we have decided to go after." 



The beauty of the new arrangement is that it is not 

 necessary to wait for definite orders from customers. 

 Everything manufactured being of standard specifica- 

 tions as to dimensions and type of construction, it is pos- 

 sible to manufacture for stock, carrying the product to 

 await the requirements of the consumer. As a matter 

 of fact, business has been so good since the plan was 

 adopted in the plant referred to that there has been no 

 necessity for doing this, but that will be the method 

 used. 



Of course, carrying a stock costs money; and to 

 operate a business on the basis described means that more 

 capital will be tied up, because it may not always be 

 possible to keep shipments up to manufacturing capacity. 

 Storage space will have to be provided, and the interest 

 on the investment in the finished goods must be taken 

 into account, as well as insurance and other normal 

 carrying charges; but while these things cannot be dis- 

 regarded, the comparison of the advantages and disad- 

 if You Mention HARDWOOD RECORD 



