liNGINIiliKINC I'l.lXMXa /OA' M.IMI.K I IKL 5.v 



In rasi' llu- oiKT.itors .irc iin.ihlf lo piiMliuc ^iilliciitil p. iris to 

 make satislaclorN' piivi- work t'arninns alter a roas()iial)U' Irial, the 

 Planning Kn>;iiH'i'r is called upon It) either demonstrate that satisfac- 

 tory earnings can lie made, or to increase the rate. 



The I'lanniiij; ICngineer is also calle<l upon to assist in nvercnininv; 

 manufacturing ditliculties for which he is not directly responsible, 

 and a spx'cial unit has been set up to assist the shop in cases of this 

 kinil when difficulties are encountered. 



From this, it can be seen that the Planning; iMiuiiuer has imi only 

 the responsibility of planning the work, but lie is also charKiil wiili 

 seeing to it that the plan works out. 



t'osr Ri,i)i( HON W'liHK 



There is still one more highi\' iniport.uii tumlion ptrlDinud li> 

 our Planning Organization, viz., Cost Retiuclion Work. 



It might appear that after the careful thought already gisen to 

 the methcKls to be employed in producing a piece of apparatus, the 

 necessity for further study has been eliminated. This, howe\er, is 

 not the case, since in the original planning we must adhere closely to 

 methods and proce.sses that have been proved in, in order that the 

 prtxlucts may be prinluced on a specified date and at a prcdetenniiud 

 cost. 



In other words, we cannot take any short cuts at this stage of the 

 work that we are not sure will work out successfully. However, 

 after the piece of apparatus is in production, we are in a position to 

 review the case and try out new ideas, improved methods, tools and 

 machinery, without jeopardizing pnxluction. Naturally, any im- 

 provements worked out successfulU- b\- the Cost Reduction Engineers 

 are later used by the regul.ir Planning Organization when applicable 

 on future work. 



This cost reduction work is ha in lied on a strictly business basis, 

 i.e., the cost of the case is charged up against the savings effected 

 and our records show that the returns on this work are very high. 



There is a typical illustration of a cost reduction case shown in 

 F"ig. 6. This is the base for the sub set housing on which the apparatus 

 is mounted. The old design is shown at the left. There were three 

 separate pieces which had to be assembled together. Part B was 

 riveted to the base A- at c, c to form the ears which stand at right 

 angles to the base. Part D was assembled to the base A with two 

 machine screws, E, E. The design was changed at the suggestion of 



