Alarch 25, 1921 



HARDWOOD RECORD 



17 



Motion Study as a Basis of Correct Cost 



By J. C. Bohmker 



Manager of David Bradley Mfg. Works, Bradley, 111. 



EDITOR'S FOREWORD: This is the Jirat of a series of articles on 

 the theory and practice of efficient factorii production methods which 

 Mr. Bohmker unll contribute to Hardwood Recoed. They sh-ould prove 



not only interesting becanse of the 

 fundamentals expressed, but also of 

 true practical vahie to the manu- 

 facturers of wood products, because 

 they are practical and describe 

 methods ichieh have stood and are 

 still standing the severe test of 

 actual use. The author of the 

 articles enjoys the double advantage 

 of a thorough training in the theory 

 of indu.ttrial engineering and years 

 of experience in the application of 

 this academic knowledge to factory 

 production. He studied mechanical 

 and electrical engineering at the 

 Y. M. C. A. Institute and the Lewis 

 Institute of Chicago. In 1907 he 

 joined the Western Electric Com- 

 pany at Chicago, serving in various 

 capacities, commencing in the switch- 

 board assembly department. Then he 

 went to the testing and engineering 

 department. From this into shop 

 production work, leading to the posi- 

 tion of shop foreman. In 190S he 

 became associated with the Peter Schuttler Wagon Company of Chicago 

 in production work, reorganizing the shop and introducing modern manu- 

 facturing methods in the capacity of superintendent. In 1913 he joined 

 the David Bradley Manufacturing Works at Bradley, III. At that time 

 this plant is said to have been more or less run down and in need of 

 rehabilitation. Mr. Bohmker made a special survey of the plant and 

 introduced efficient planning and time study systems. Succeeding in this 

 work he was made superintendent of the plant and is at present its gen- 

 eral manager. He has not only revoliUiotiized but steadily improved the 

 production m<-thods of the plant, refining the efficiency system, lessening 

 the work, simplifying operations and securing low and correct costs. The 

 valuable experience which he gained in this successful endeavor is embodied 

 in this and the subsequent articles. That they will be received with appre- 

 ciation by members of the wood using industry is evidenced by an expres- 

 sion which Hardwood Record received from one of the officials of perhaps 

 the largest chair manufacturing plant in the world. This man said tlmt 

 Mr. Bohmker had accomplished a wonderful work at the Da/vid Bradley 



Bohmker 



plant, and that lie would consider it a valuable privilege to be able to read 

 lohatever he might write about his methods. The David Bradley Manu- 

 facturing Works is owned and operated by Sears, Roebuck d- Company as 

 their agricultural implement manufacturing department, and enjoys an 

 important position in the industrial world. 



THE SUCCESS OF ANY BUSINESS rests in the correct knowl- 

 edge of the cost of the product or products manufactured. 

 There is not a business in existence — large or small — which cannot 

 boast of some sort of cost finding sj'stem which is used as a basis 

 for fixing the selling price. 



The manufacturer in possession of the correct cost of his product 

 is in a position to name the right price and need little depend upon 

 competition to guide him in his decision, and is not to be feared — 

 compared with the fellow who guesses at his cost, selling below the 

 market, making for a disturbed market condition in that industry. 

 It can be rightfully stated that correct selling price is the keynote 

 to any business. 



The manufacturer is confronted with several important basic 

 problems in naming a selling price: 



(1) He may not be certain of his information affecting his cost. 



(2) Will he name too low a price to prevent him making a 

 profit? 



(3) Will the price be too high to meet competition? 



Unless the information, or elements, making up the cost is 

 founded upon fundamental practical facts and analysis, the one 

 applying it is going to meet with one or all of the above named 

 conditions. It is necessarily of great importance that he be rea- 

 sonably certain of his cost, also that this be accomplished at a 

 low expense and upkeep. It must be so designed that the penny 

 will chase the dollar. The reverse would prove disastrous. The 

 cost, after all, remains relative; it is never absolute. The cost of 

 making the same article differs in different factories, due to varia- 

 tion in cost of labor, overhead and selling expense. For this reason 

 many attempt to analyze a competitor's line, and the common 

 practice is to study his selling methods. This, however, is a mere 

 detail compared with a study of his manufacturing layout, mechan- 



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