18 



HARDWOOD RECORD 



March 25, 1921 



ical detail and the items making up his overhead. If the manu- 

 facturer is his own draftsman and mechanical engineer, he would 

 in such event benefit considerably by being in a position to analyze 

 the factors intelligently, thereby eliminating from his organiza- 

 tion men who would greatly add to his overhead. So many dif- 

 ferent factors enter into cost that it would be folly for anyone to 

 base his selling price on his competitor's figure. The more impor- 

 tant thing to bear in mind is to determine the cost of material, 

 and keeping it within certain maximum limits is not a difficult 

 task. It is the keeping of the labor cost of the piece parts (the 

 parts assembled, or assembled whole) to a predetermined maximum, 

 that presents the greatest difficulty. A correct cost system is to 

 the sales department what a laboratory is to the factory; it offers 

 scientific explanation of every detail making up the whole; it 

 forces improved methods in production and selling, controls waste. 



tion and successful operation of common sense management is 

 largely governed by conditions peculiar to the individual business 

 or industry, as well as the management. Many failures^ are trace- 

 able to the application of the fundamental principles of manage- 

 ment in too strict a sense, losing sight of all else except the laws 

 or principles as they exist, due primarily by attempting to force 

 upon an organization too much of the new "Science"; in other 

 words, applying laboratory methods to practical conditions. Briefly, 

 the conditions met with are as follows: 



First — The human factor or element. 



Second — The principles of business and management. 



Third — Local conditions. 



The above factors, if properly handled and made to function 

 in proper relation to one another, will make for successful opera- 

 tion, satisfactory both to management and worker. 



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encourages improvements in methods and machinery, points the 

 way to lower cost and higher wages. It wUl improve the credit 

 position of the firm with its banker, by reason of the plant's opera- 

 tion on a known and predetermined maximum cost. 



Bemember Quality and Quantity 



In the search tor low cost we must bear in mind quality and 

 quantity. How can these be best met? The day work basis would 

 unquestionably favor quality, and piece work quantity. How then 

 can they be merged so as to obtain the desirable features of both? 



There is no subject that has received more attention by managers 

 of industrial establishments in the past decade than that of scien- 

 tific or industrial management. Many view it in the light of a 

 Tianacea for industrial ills, others with distrust, because of its 

 /ligh sounding and misleading title. The writer prefers to call it 

 "Common Sense Management." That is what it amounts to by 

 putting well known principles of business into operation on the 

 basis of common understanding and cooperation. The applica- 



There is in operation the country over distinctively different 

 type cost systems, many based upon very superficial information 

 as to the various factors entering into or making up the final cost. 

 Unfortunately very often methods or systems are laid out by 

 bookkeepers and accountants who have only the clerical and 

 accounting end of cost in mind. 



Foremen Should Be Trained 



Systems having their origin in the office, as a rule, depend upon 

 the foremen for their labor cost and material, as the practice in 

 many plants is for foremen to fix their own piece work prices, this 

 being considered part of the foreman's duty. Much good can be 

 accomplished by teaching foremen how to make time or motion 

 study; this can be arranged by calling them together once a week. 

 Talks on efficiency (personal and mechanical), routing of stock, 

 methods, machinery and the pointing out of difficulties the other 

 departments encounter will accomplish much in the way of giving 

 him a clearer understanding of these conditions; it will make him 



