54 STEEL SHIP CONSTRUCTION 



O'f about 40 ; so' that by increasing the number of ways in a yard it by no means follows 

 you will decrease the cost per ton of production. 



The figures given on page 50 show where the possible variation comes in — the variation 

 in cost of about $117 and $158 per deadweight ton, depending on whether the yard can use 

 man efficiency of 65 deadweight tons or 25 deadweight tons per man per year. 



The reason why I think these figures ought to be studied carefully is that we have in 

 the past two years developed the shipbuilding industry in this country to a position which 

 was undreamed of a few years ago. We are going to come in competition, and probably 

 severe competition, with the world in the next few years, and if the shipbuilding industry is 

 to remain a profitable one in this country it is essential that we should leave no stone un- 

 turned to reduce out costs to the absolute minimum ; and a paper such as this, I think, gives 

 us food for very careful thought. There are possibilities of reduction of costs indicated in 

 the paper that perhaps were not realized in the past. I think Mr. Churchill is to be con- 

 gratulated on the very careful analysis he has made of some of these subjects. The matter 

 is put in a form that any shipbuilder can use. Even if his actual figures are not the same 

 as Mr. Churchill's he can apply his own figures and draw his own conclusions, and I think, 

 in that way, probably we can help to meet competition in the future. 



I would like to add that the work of Mr. Churchill represents perhaps one part of the 

 work of the Emergency Fleet Corporation which was not realized by the public at large — 

 the study of increasing the production of ships. Mr. Churchill conducted the investiga- 

 tions during the time that the intensive production was on, which led in a good many cases 

 to a very remarkable increase in tonnage turned out in certain shipyards. 



The President: — Is there any further discussion, gentlemen? This paper is one which 

 merits very careful consideration. Like all presentations of this character, a great deal de- 

 pends upon the correctness of the premises, and two of the very important premises that the 

 Chair notes in glancing over the paper are those relating to man efficiency and overhead 

 cost. 



I crave indulgence for even mentioning such things, but we all have to deal with them 

 rather seriously. 



Perhaps in his concluding remarks Mr. Churchill will throw more light upon the method 

 by which he arrived at the relative efficiency of man power and organization; also some 

 further light upon this "certain fixed overhead expense." These remarks are in no sense 

 to be taken as adverse criticism, but purely as a desire to obtain further light upon a subject 

 which is of the very greatest importance in ordinary times and becomes of extraordinary 

 importance under war conditions. 



In the absence of further comment, the Chair requests Mr. Churchill to respond to the 

 remarks that have been made. 



Mr. Churchill : — I think the comment by our president is very timely ; in other words, 

 the question of how we arrived at the basis of our premise. It is really a very simple matter, 

 after it is told. In the records of the Emergency Fleet Corporation we had weekly and 

 monthly reports of the number of men employed in the different yards, separated as to 

 office force, men engaged on plant construction, men engaged on ship construction for the 

 Emergency Fleet Corporation and men engaged on repair work and other work, such 

 as naval work. In that way we got the records for practically the whole period of the 



