Table 19. Output per Man-Hour: 

 for Various Unit Operations, Excluding 



Preliminary Estimates 

 Management, by Unit 



Size 



Distributing 



Output per man-hour in distributing (largely hauling time) tends to rise 

 with volume. Some smaller units concentrate on selling to small volume 

 purchasers, such as stores, institutions, or local distributors. In such cases, 

 with more stops and smaller quantities per stop, output per man-hour is 

 lower than for units of like size delivering to large volume purchasers, such 

 as wholesalers, chain warehouses, and packer branches. For firms selling 

 mostly to large volume purchasers, output per man-hour tends to increase 

 with volume, despite the probability of longer average distances. Since dis- 

 tributing is a one or two-man operation, size of equipment rather than 

 number of men being the greater variable, the data show a more conclusive 

 trend than on assembling. 



Larger equipment can be used in distributing, as well as in assembling, 

 as volume increases. When this occurs it may be profitable to use additional 

 labor to offset increases in costs associated with equipment which might 

 otherwise be incurred. With respect to distributing, the data suggest the 

 existence of econom.ies of scale, but they represent a composite of several 

 factors, i.e., volume, distance, types of buyers, etc. Volume seems to exert 

 the greatest influence, since the output per man-hour rises with size inter- 

 vals. With a delivery crew of one or two men, use of larger equipment 

 enables the handling of greater volume. This effect, plus a greater concen- 

 tration on large volume buyers, is apparently greater than the negative effect 

 of increased distance and travel time. 



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