Assembling 



Data derived on output per man-hour in the assembling operation were 

 somewhat less conclusive. These results contained and obscured certain vari- 

 ables. For example, it would be expected that output per man-hour would 

 decline, other things being equal, as the volume of birds assembled in- 

 creased. Since other information presented earlier shows that larger plants 

 tend to reach farther for supplies, such a relationship would tend to be 

 inverse with volume. However, smaller plants are likely to be oriented to- 

 ward procurement in small quantities and a greater number of lots per 

 given load. Hence, the smallest plants might be handling relatively more 

 small and partial loads and, other things being equal, be less efficient be- 

 cause of small volume. Indeed, the data indicate some increase in output 

 per man-hour through the first few intervals covering small plants where 

 supply areas were similar. Data obtained on other commodities suggest that 

 output per man-hour may often decline with large crews. This is due in 

 part to the loss of working time in travel and preparation as well as to 

 the presence of more help than can be used to best advantage at all stages.* 

 This may also be involved in assembling poultry, though time disadvantages 

 in assembling could be offset by cost considerations involving equipment 

 and subsequent plant operations. 



As previously pointed out, contract growing, and in particular a large share 

 of the time of field men, is a substitute for buyers and public relations 

 measures. When the time of the field men was allocated to the assembly 

 operation, such units appeared substantially less efficient in this operation 

 than plants of similar size which did not engage in direct contract growing. 

 In lieu of direct contracting many large plants have attempted to stabilize 

 plant volume at a high level by entering into arrangements with secondary- 

 contractors (feed companies, hatcheries, or independent investors). 



New York Dressing and Eviscerating 



On the basis of these data it appears that output per man-hour of labor 

 increases rapidly with unit size (volume). This suggests there are substantial 

 economies of scale insofar as labor usage is concerned. It cannot be ascer- 

 tained from preliminary data exactly how this conclusion might be modified 

 by the effects of investment and depreciation of buildings and equipment or 

 other cost components attributable to the dressing and/or eviscerating oper- 

 ations. 



If substantial economies of scale exist relative to output per man-hour in 

 dressing and eviscerating, then larger plants might well afford lower output 

 rates on assembling to obtain supplies needed for continued plant operation 

 at a high rate of potential capacity. Not only can they reach out over greater 

 distances, but they may be able to employ larger crews, even though out- 

 put per man-hour in assembling might be lower than with smaller crews, 

 to keep the assembly operation feeding volume to the plant. 



*See: Rogers, G. B. and H. C. Woodworth. Distributing and Handling Grain-Feeds 

 in New Hampshire. H. Problems in Retail Distribution, New Hampshire Agricultural 

 Experiment Station Bulletin 427, July 1956, pp. 28, 32-33. 



44 



