30 



HARDWOOD RECORD 



CARE OF DETAILS 



Improper supervision of felling and log-making crews often results 

 in waste. Through the faulty selection of log lengths and careless 

 marking off of the same, the daily loss often averages several hundred 

 feet log scale per crew. Breakage, due to careless felling and other 

 causes, may increase this amount. A daily waste of 500 feet log 

 scale per saw crew due to carlessness has been observed on yellow pine 

 operations in the South. 



The loss to the stmpage owner is greater than first appears, because 

 it is not only the stumpage value that is sacrificed, but the sale value 

 of the product on the car. It requires but little more effort to bring 

 in a log 16 feet long than it does one 14 feet long; the cost of skid- 

 ding, loading and transportation to the mill are increased to only a 

 very limited extent, and on reaching the plant the added cost of 

 manufacture is nearly nil. Tlierefore you lose the value of this 

 liroduct on the car, because it costs you practically no more to place 

 it on board ready for shipment than it does to leave it in the forest 

 to rot. Close supervision of the saw crews will remedy this matter 

 at a cost which will be a fraction of the loss you otherwise suffer. 



There is a wide variation in the rations given to logging animals, 

 and it is certain that they are not always fed economically. The 

 requirements of animals for food are dependent on weight and the 

 amount of work being performed. Each animal requires a certain 

 amount of concentrated food from which it derives the major part of 

 its nourishment and a certain quantity of coarse food which gives 

 bulk to the ration. 



There are several essential elements in the concentrated foods which 

 are required in fairly constant quantities for a given weight of animal, 

 when performing a specific kind of work. Different feed stuffs contain 

 these elements in widely varying proportions, and the test of a bal- 

 anced ration is the ability of an animal to maintain an even weight 

 under the conditions in which it is working. 



Every logger should adopt a standard ration for his animals based 

 on tests made under working conditions. The general requirements 

 of animals have been studied extensively both in this country and 

 abroad and data on the subject can be secured from th'e United States 

 Department of Agriculture. 



Many business men spend much time on the preparation of state- 

 ments showing the cost of production. These are of value as a guide 

 for comparison of actual costs, but do not show whether the average 

 is greater than it should be. 



A close study of the various parts of the operation and the prep- 

 aration of a statement from the data secured, offers a means of 

 comparison of actual and standard costs, and will point out the weak 

 points in the present system. It enables the management to pick out 

 the departments in which the expenditures are excessive, and to make 

 such changes as are necessary to remedy the faults. 



Estimated costs exert a beneficial influence over foremen and other 

 subordinates, because when the actual outlay exceeds the estimate 

 made by them at the beginning of the season their reputation is at 

 stake. The incentive is present for tliem to attempt to keep expenses 

 down. Where there is no check of this character, it is easy for the 

 foreman to say that .high costs are due to special difficulties encoun- 

 tered, such as inclement weather, bad bottom, or similar factors. 



One of the largest operators in the Xortheast has given the suljjcct 

 of "efficiency" in woods operations much thought. His schenp? re- 

 ijuires the collection of data regarding the property preliminaiy to 

 the beginning of operations; careful supervision and inspection or 

 all parts of the woods work; and a system of records in which detailed 

 account is kept of all work to be performed and all work actually 

 performed. 



The plan has been developed from tlic management side because tlic 

 I'oinpany has not yet satisfied itself that a piecework basis of re- 

 uumeration, ivith a bonus for su|)erior work, is adapted to their con- 

 ditions. 



The general scheme has been built up gradually and is the result ut 

 years of thought and study. While it has met the needs of the particu- 

 lar operation for which it was designed it may not be applicable in all 

 of its details to other operations. It is adapted only to large business 



concerns. Iiocausc of the added inspection and clerical force needed to 

 carry out the plan. 



KEEPING ACCURATE RECORDS 



The system of records is of interest because of its couipletciicss and 

 the success which has attended its use. These comprise three separate 

 sets of books known respectively as the budget, accounting and the 

 statistic. 



The budget contains a statement of the work to bo accomplished 

 during a given ]icriod, preferably for the coming season. 



It covers all jihases of woods work and is made up by foremen and 

 others in charge of field work. It contains a concise statement of the 

 exact character of the work to be performed under a given foreman 's 

 direction; the dates on which, or the period in which it is to be per- 

 formed; the number of men, animals, equipment and supplies required; 

 and the estimated cost in detail. From this budget the management 

 learns just what work each foreman considers essential ; can deter- 

 mine when, where, and what supplies and equipment are needed and 

 the approximate expense of logging for the season. The company 

 also has a staudanl with which the actual costs can be compared, 

 and if the estimated expense is exceeded, or additional equipment 

 or supplies called for, explanations arc in order. In fact, the budget 

 reduces loose guess work to a system. 



The second branch, called accounting, deals with tlic records that 

 pertain to the conduct of the scheme laid down in the budget. The 

 object is to collect reliable and prompt reports regarding the opera- 

 tion in order that the management may have a statement showing 

 the exact status of work to date. This file does not leave the office. 

 Extracts from it may be sent out to subordinates to wlioni it may 

 concern. 



The statistical feature of the records is concerned with the accu- 

 mulation of the experience and data secured in carrying out the 

 operation. Tliis is the basis of new schemes, or revision of old. It 

 is also an uBu-v record. 



DECREASING MANUFACTURING COST 



Tlie manufacture of lumber is under the direct sui>crvisiou of 

 the management 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 piling 

 and loading, dry-kiln work, etc. Work of this character 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 examjde of this was observed in a large mill in the 8outli 

 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 nmnagement 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 jealously arose between the different foremen 

 in an effort to keep down the cost in their departments, and each 

 man was inclined to throw minor expenses on some other foreman. 



To obviate this and to secure closer co-ojieration among the fore- 

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

 yard foreman was assigned to other work and the two ri'iiiniiniig men 

 were called to the office and a proposition luioie to ilicni. The man- 

 agement calculated that the cost of operation in the two departments, 

 tlirough cooperation could be reduced at least ten cents per JI feet. 

 They therefore propo.sed the following: they would guarantee 

 to each foreman the regular salary he had Vieen receiving and in 

 addition (Uie-half of all the saving effected Im'Iow the sum fixed as 

 the standard cost. 



Xo provision was made by the managi'UM'ul for I'onipcnsating the 

 individual workmen, since the foremen had (he antliority to hire 

 such labor as they required and pay such wages as wi're necessary. 



The proposed plan met with much favor, an.l after discussing 

 the situation the foremen decidiil tlinl tiny couM dispense with 



