Materials and Their Handling 



material as it is to hold waste down to the mini- 

 mum. The best method is to have some form of 

 salvaging committee which shall represent the 

 purchasing department, the engineering depart- 

 ment, the shop, and the storekeeper. This com- 

 mittee should go over all waste and obsolete ma- 

 terials at regular intervals. This should be done, 

 first, to see if this material can be used, as it 

 stands, for some other order; second, to see if it 

 can be used by reworking, such as cutting down to 

 a smaller size, sending files away for recutting, 

 etc.; third, to find the best market for it; and, 

 fourth, to increase its salvage value by such means 

 as sorting, baling, and so forth. In this connec- 

 tion, the purchasing department can usually render 

 effective aid. Great savings may often be realized 

 by giving the problem of salvage the attention 

 which it deserves. 



Section II 

 Inventories 



Inventories Are Essential to Success. To meet 

 competition successfully a management must have 

 accurate knowledge at all times as to just where 

 it stands financially, whether it is making or losing 

 money, and how much. Otherwise it is working 

 in the dark, and the fellow who guesses has no 

 chance in the long run against the one who knows. 

 To have the financial status of a company, it is 

 necessary to know, not only the cash on hand and 

 the accounts receivable and payable, but also the 



