74 MnU'iinls ami Their 



material moving through the department under his 

 jurisdiction and make an exact analysis of what 

 happens to it during the entire time it is in his 

 department. Keep a record of the time it is bcin^ 

 worked on, of the time it is being actually moved, 

 and of the time it is standing about waiting for 

 someone to act or something to happen. Such an 

 analysis is inevitably an eye-opener to one who 

 has never made it, and is likely to lead to sug 

 tions and action that will result in improvements. 



//'//<// /< the "Turnover"? The reason why 

 these delays are an evil is that they greatly in- 

 crease the length of time represented by the 

 "turnover." Shop men give the subject of turn- 

 over little or no consideration, and many good 

 men probably have never even heard of it. By 

 turnover is meant the length of time covered by 

 the period in which the firm puts money into 

 goods, receives them, fabricates them, sells them, 

 receives pay for them, and puts the money back 

 into a new cycle of operations; or, turnover is 

 sometimes used in the sense of the number of 

 times per year this cycle occurs. If a concern 

 goes through this cycle once during the year, all 

 the profits which it can earn for that year must be 

 made out of that single turnover. For instance : 

 If it is to declare eight per cent dividends, it must 

 earn eight per cent clear for the business on that 

 one turnover. If, however, it has eight turn- 

 overs during the year, it will earn this eight per 

 cent dividend with a one per cent profit on each 

 of the eight turnovers. A concern which has a 



