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Digitized by the Internet Archive 
 in 2011 with funding from 
 The Library of Congress 
 
 http://www.archive.org/details/scienceofmanagemOOpark 
 
THE 
 
 SCIENCE OF MANAGEMENT 
 
 BY 
 
 FREDERIC A. PARKHURST, M. E. 
 
 // 
 
 Organizing Engineer 
 
 A Course of Lectures Given at 
 
 Case School of Applied Science 
 cleveland, ohio 
 
 1917-1918 
 

 Copyright, 1918 
 
 BY 
 
 FREDERIC A. PARKHURST 
 
 JAN -5 1918 
 
 ©CI.A479917 
 
PREFACE 
 
 The author feels that best results can be obtained from a 
 course of lectures when the student has the advantage of a 
 printed text to which he can refer as occasion requires 
 This book has been prepared to give such an advantage to 
 the students of Case School of Applied Science, 191 7-18, 
 who are attending the course upon "The Science of Man- 
 agement." It contains the necessary chapters from the 
 various books on the allied integral parts of the subject 
 and with "Applied Methods of Scientific Management," re- 
 quired for the course, completes the text for the entire 
 thirty lectures. 
 
 The Author. 
 
TABLE OF CONTENTS 
 
 LECTURE I 
 
 History 1 
 
 1-A. History of the Science of Management 2 
 
 1-B. Bibliography 10 
 
 LECTURE II 
 Fundamentals; Practice vs. Theory in the Science of Management 21 
 
 LECTURE III 
 
 Fundamentals ; Practice vs. Theory in the Science of Management 
 
 (Continued) 32 
 
 LECTURE IV 
 
 "Put Your House in Order" 42 
 
 A Discussion of the Responsibilities of both the Owner and 
 the Engineer 42 
 
 LECTURE V 
 
 First Essentials (Chapter I of text) 53 
 
 1-A. Preliminary Investigation 53 
 
 1- B . The Form of Organization 53 
 
 1- C . The Organization Record 53 
 
 LECTURE VI 
 
 Departmental Functions (Chapter II of text) 54 
 
 2-A. Functions of the Sales Department and Counting Room 54 
 
 2- B . Functions of the Engineering Room 54 
 
 2- C . Functions of the Drafting Room 54 
 
 LECTURE VII 
 
 Drafting Room Methods (Appendix of text) 55 
 
 VII. Drafting Room Instructions (Page 215) 55 
 
 VIII. Instructions for Drawing and Sketch Indexes (Page 
 
 223) 55 
 
 XXXI. Shop and Drawing Boys' Instruction (Page 296) 55 
 
 v 
 
LECTURE VIII 
 
 PAGE 
 
 Planning Room (Part of Chapter III of text) 56 
 
 3- A. Planning Department 56 
 
 3-B. Duties of the Superintendent 56 
 
 3-C. Functions of the Planning Department 56 
 
 3-D. The Production Clerk 56 
 
 LECTURE IX 
 
 Planning Room Instructions (Appendix of text) 57 
 
 X. Production Clerk's Instructions (Page 231) 57 
 
 XL Planning Department Monthly Report (Page 233) 57 
 
 LECTURE X 
 
 Planning Room, Continued (Part of Chapter III of text) 58 
 
 3- E . The Shop Engineer 58 
 
 3- F. The Stores Clerk 58 
 
 3-G. The Cost Clerk 58 
 
 3-H. The Route Clerk 58 
 
 3- I . The Order-of-Work Clerk 58 
 
 3- J . The Shipping Clerk 58 
 
 3-K. The Receiving Clerk 58 
 
 3-L. The Time Clerk 58 
 
 3-M. The Schedule Clerk 58 
 
 LECTURE XI 
 
 Planning Room, Continued (Part of Chapter III of text) 59 
 
 3-N. The Factory Mail System 59 
 
 3-0. The Time Boy 59 
 
 3- P . The Inspector 59 
 
 3-Q. The Stores Keeper 59 
 
 3-R. The Move Material Boss 59 
 
 XXXI. Inspector's Instructions (Appendix, page 281). 59 
 
 LECTURE XII 
 
 Routing and Control of Work (Part of Chapter IV of text).... 60 
 
 4-A. The Routing of Work Through the Shops 60 
 
 4-B. Symbols (For further reference see "Symbols" pub- 
 lished by the author in early 1917) 60 
 
 LECTURE XIII 
 
 Routing and Control of Work, Continued (Part of Chapter IV 
 
 of text) 61 
 
 4-C. The Functions of the Material Boss 61 
 
 4-D. The Functions of the Order-of-Work Clerk 61 
 
 4-E. Gang Bosses 61 
 
 4-F. The Speed Boss 61 
 
LECTURE XIV 
 
 PAGE 
 
 Routing and Control of Work, Continued (Part of Appendix 
 
 of text) 62 
 
 XIV. Anticipating Requirements both as to Rough Material, 
 
 Machining Operations and Assembly (Page 243).... 62 
 
 XV. Order-of-VVork Clerk's Instructions (Page 246) 62 
 
 XVI. Movement of Batches in Installments (Page 249) 62 
 
 XVII. Route Rack Signals (Page 249) 62 
 
 LECTURE XV 
 
 Stores, Labor and Cost (Part of Chapter V of text) 63 
 
 Note : The student is referred to the author's "Predetermina- 
 tion of Prices" for a further insight into the controlling 
 elements necessary in connection with costing. 
 5- A. The Creation of a Stores Department, the Methods of 
 Classifying and Housing all Material (Rough or 
 Finished) not in Process of Manufacture, and the 
 Ordering of Stores either to be Purchased Elsewhere 
 
 or to be made in the Shops 63 
 
 S-B. The Perpetual Inventory or Stores Ledger, Showing 
 how it is Kept up to Date and Checked to Always 
 Agree with the Actual Stock 63 
 
 LECTURE XVI 
 
 Stores, Labor and Cost, Continued (Part of Chapter V of text) . 64 
 
 5-C. The Means used to get Correct Returns for all Times 
 Expended on Work, whether as Expense or as Pro- 
 ductive Labor, including Operation Times 64 
 
 S-D. The Combined Cost and Route Sheet, and the Methods 
 Employed to Distribute and Collate all Material and 
 Labor Charges as well as Overhead Expense 64 
 
 LECTURE XVII 
 
 Indirect Costs (Reprinted from Chapter IV of the author's 
 
 "Predetermination of Prices") 65 
 
 4- A. Expense Symbols 65 
 
 4- B . Expense Distribution 68 
 
 4- C . Distribution of Burden 68 
 
 4-D. Erroneous Methods of Distribution 77 
 
 4-E. Differential Process Rate Method 84 
 
 4- F. Undistributed Burden 92 
 
 LECTURE XVIII 
 
 Estimating (Reprinted from Chapter VI of the author's "Pre- 
 determination of Prices") 93 
 
 6- A . Machine Shop 94 
 
 6-B. Foundry 97 
 
 vii 
 
LECTURE XIX 
 
 PAGE 
 
 Profit and Relatively True Selling Prices (Reprinted from 
 Chapters VII and VIII of the author's "Predetermination 
 
 of Prices") 108 
 
 7-A. Per Productive Hours 109 
 
 7- B. Per Pound 110 
 
 7- C. Per Piece Ill 
 
 7-D. Per Cent of Cost Ill 
 
 7-E. Mutual Satisfaction 112 
 
 VIII. Conclusion 115 
 
 LECTURE XX 
 
 The Tool Room (Part of Chapter VI and Appendix of text) .... 117 
 
 6- A. The Standardization of Methods and Tools 117 
 
 XXVIII. Instruction for Tool Foremen (Page 287) 117 
 
 XXIX. Instruction as to Tool Requirements (Page 298) 117 
 
 XXX. Instruction for Care and Storage of Tools (Page 295) 117 
 
 LECTURE XXI . 
 
 Manufacturing and Erecting (Part of Chapter VI of text) 118 
 
 6-B. The Development of a Manufacturing System 118 
 
 6-C. The Handling of Erection Work 118 
 
 LECTURE XXII 
 
 Time Study and Bonus (Part of Chapter VII of text) 119 
 
 7-A. Introduction of Time Studies 119 
 
 7-B. Analysis of Time Studies and the Development of 
 
 Instruction Cards 119 
 
 LECTURE XXIII 
 
 Time Study and Bonus, Continued (Part of Chapter VII of text) 120 
 7-C. Discussion of Piece Work, Premium, Bonus, Differen- 
 tial Rate and Differential Bonus Systems of Wage 
 
 Payment 120 
 
 7-D. Method used by the Author to Compute Differential 
 
 Bonus 120 
 
 LECTURE XXIV 
 
 Time Study and Bonus, Continued (Reprinted from the author's 
 
 "Scientific Management in the Foundry," Sections 9 and 10) 121 
 9. The Control of Methods and Labor through Time Studies 
 
 and Sub-Operation Times 121 
 
 10. Time Study Foreman 122 
 
LECTURE XXV 
 
 PAGE 
 
 Time Study and Bonus, Continued (Reprinted from the author's 
 "Scientific Management in the Foundry," Sections 11 to 
 15 inclusive) 133 
 
 11. Time Study Instructions in Detail 133 
 
 12. Standard Elemental Sub-Operation Times for Floor Work 139 
 
 13. Standard Sub-Elemental Operation Times for Bench and 
 
 Squeezer Work 144 
 
 14. Standard Miscellaneous Data 149 
 
 15. General Instructions to Time Study Men 151 
 
 LECTURE XXVI 
 
 Time Study and Bonus, Continued (Reprinted from the author's 
 
 "Scientific Management in the Foundry," Section 16) 152 
 
 16. Parkhurst's Differential Bonus 152 
 
 LECTURE XXVII 
 
 Departmental and Plant Efficiency Bonus (from the manuscript 
 of the author's "Scientific Time Study and Differential 
 
 Bonus") 165 
 
 27- A. Departmental Efficiency Bonus 165 
 
 27-B . Plant Efficiency Bonus 180 
 
 LECTURE XXVIII 
 Departmental and Plant Efficiency Records 182 
 
 LECTURE XXIX 
 
 Inspection (Reprinted from the author's "Scientific Management 
 
 in the Foundry," Section 17) 188 
 
 17. Details of Inspection 188 
 
 LECTURE XXX 
 
 Results Obtained Through the Correct Application of the Science 
 of Management (from the manuscript of the author's 
 
 "Scientific Time Study and Differential Bonus") 198 
 
 30-A. Effect on Production and Quality 198 
 
 30-B. Effect on Costs 200 
 
 30- C . Individual and Corporate Effect 201 
 
 NOTE Some of the lectures will be illustrated thru means 
 
 of lantern slides, particularly those lectures reprinted from the 
 author's hooks noted above. The illustrations referred to have 
 been omitted owing to the fact that the plates were not available. 
 
THE SCIENCE OF MANAGEMENT 
 
 LECTURE I 
 
 l-A. The History of the Science of Management. 
 1-B. Bibliography. 
 
 Before taking up the specific subject-matter of Lecture i, 
 I want to say a few words in general covering a word on 
 preparedness and the important place which the Science of 
 Management may take in the solution of some of our Na- 
 tional problems. Some of our best men believe that after 
 the conclusion of the present European War, we are going 
 to experience in the next ten or twenty years a terrific 
 struggle between Nations for supremacy in the world's 
 market. Indications are that Great Britain is right now 
 looking far ahead in this respect. 
 
 From information which has been obtained from men 
 who have been abroad within the last few months, we are 
 impressed with the difference between the attitude of the 
 English manufacturers and that of the French and Italians. 
 The English shops are closed tight. The general attitude 
 in regard to information tends to make us believe that Eng- 
 land is going' to be a big factor in the domination of the 
 world's market. The only way the United States can hold 
 or improve her position in this respect is by maximum con- 
 centration, a broad policy, and the development of efficiency 
 to its highest possible state. This means organization. 
 
 The English and French, particularly, have undergone a 
 tremendous awakening in regard to possibilities of increased 
 production and hence decreased cost through more efficient 
 operation. The demands of the war have of course forced 
 this as a self-preservative necessity. Both these Nations 
 have put forth efforts which they never before dreamed of. 
 The vast quantity of munitions required has helped to im- 
 press on them the advantages to be gained by manufactur- 
 ing on a big scale and properly rigging up to do their work. 
 
2 HISTORY 
 
 American manufacturers have led the world from a pro- 
 duction standpoint. More or less efficient methods have 
 tended to fit us for wonderful development along this line. 
 We must not think for a moment, however, that we can lay 
 on our oars. Our best efforts are going to be required after 
 the war to successfully compete in the world markets, par- 
 ticularly as our merchant marine has heretofore been almost 
 a negligible factor. With Britain controlling the seas from 
 9 commerce standpoint, our problem becomes all the greater. 
 
 In the last five years, the manufacturers in America have 
 in general begun to appreciate the possibilities of Scientific 
 Management. It is not many years ago that Taylor's 
 methods were laughed at and it has only been recently that 
 results obtained in a good many different plants involving 
 a total of eighty odd industries, have awakened the Ameri- 
 can business man to the possibilities that lie before him if 
 he will only become efficient. 
 
 I have denned Scientific Management as follows : 
 
 The Science of Management is the conservation 
 of material, labor and resources, founded on 
 research and exact data. 
 
 America's place in the world market will depend on her 
 organization and efficiency. 
 
 1-A. The History of the Science of Management. 
 
 Dr. Frederick Winslow Taylor was the founder of what 
 is today known as Scientific Management. Dr. Taylor was 
 born in Germantown, Pa., in 1856 and died March 21, 
 
 I9I5- 
 
 Dr. Taylor's primary education was obtained in the 
 United States, France and Germany. He prepared at Exe- 
 ter Academy for Harvard, class of 1874, at the age of 
 eighteen years. At this time his eyesight gave him a great 
 deal of trouble and prevented his taking up his course at 
 •Harvard, and he had to entirely change his educational 
 plans. 
 
FREDERIC A. PARKHURST 3 
 
 Dr. Taylor came home and secured an apprenticeship at 
 a small pump works in Philadelphia. He completed this 
 apprenticeship in 1878 and took a job as laborer in the Mid- 
 vale Steel Works, where he remained until 1890. While 
 at the Midvale Steel Works, after working a time as la- 
 borer, he obtained a position as shop clerk and then was 
 promoted to take charge of the tool room. 
 
 It was in connection with his work in the tool room that 
 Mr. Taylor first saw and began to study the inefficiency of 
 the methods then in use whereby workmen were allowed to 
 do their own tool grinding - . He noticed that every man 
 had his own idea as to how a tool should be ground and 
 no two men ground their tools exactly alike. In fact it 
 was doubtful if any one man repeatedly ground the same 
 size and type of tool exactly alike. 
 
 Based on his study of what he thought was needed in the 
 way of tool grinding, Mr. Taylor invented the Taylor 
 grinder, which grinder was put on the market and used 
 somewhat extensively foi all standard shape lathe, planer 
 and similar tools. Similar grinders have been put on the 
 market for the same purpose. 
 
 Six years after Mr. Taylor entered the employ of the 
 Midvale Steel Company as a laborer, he became Chief En- 
 gineer of that Company, having in the meantime filled 
 various positions including foreman, Superintendent, etc. 
 
 In 1880 Mr. Taylor took up a course of night study then 
 required by the Stevens Institute and in 1883 obtained from 
 Stevens Institute the degree of M. E. Mr. Taylor remained 
 with the Midvale Steel Company until 1890. During this 
 time he made a very exhaustive study of shop methods and 
 with the co-operation of Mr. Wm. Sellers, was able to put 
 these methods into effect in the Midvale Steel Company and 
 greatly improve shop production. This production was in- 
 creased 200 to 300%. 
 
 In connection with the study of shop operations, Mr. 
 Taylor immediately saw that it was necessary to get the 
 co-operation of the workmen and pay them additional com- 
 
4 HISTORY 
 
 pensation for the extra work turned out. This compensa- 
 tion varied from 25% to 100%, depending- on the class of 
 work involved. It was at the Midvale Steel Co. that Mr. 
 Taylor formed the foundation for his life's work in the 
 management field. 
 
 In the years 1890 to 1893, Mr. Taylor was associated 
 with a Company operating paper mills in the State of 
 Maine. From 1894 to 1898 he devoted his time to con- 
 sulting work. 
 
 In 1898 Mr. Taylor was employed by the Bethlehem 
 Steel Company to help them in an analysis of their machine 
 shop problems and to help work out some solution to their 
 difficulties whereby their production could be increased. 
 The Bethlehem Steel Company had at that time just com- 
 pleted a large addition to their forge shop and it was the 
 consensus of opinion that an expenditure of about one mil- 
 lion dollars for additional machine shop capacity would be 
 needed for the additional increased forge shop capacity. 
 
 In connection with Mr. Taylor's investigation of the 
 Bethlehem Steel Company's problem, he immediately saw 
 the necessity for doing something to increase the productive 
 capacity of the machines. He saw that a very superior tool 
 steel was needed to enable the machines to get out the work 
 which they were capable of. 
 
 In association with a Metallurgist, Mr. Maunsel White. 
 a series of experiments and investigations were conducted 
 which resulted in the discovery of the Taylor- White process 
 for making high speed tool steel. This process resulted in 
 increasing the efficiency of tool steel from 100 to 200%. 
 
 The essential qualities of all high speed steels are those 
 which were first made by Messrs. Taylor and White. The 
 new steels revolutionized machine shop practice and also 
 revolutionized the machine tool industry. As a result of 
 these studies and the production of a high capacity steel, the 
 production at the Bethlehem Steel Company's machine shop 
 was increased 500%. Instead of building a large addition 
 
FREDERIC A. PARKHURST 5 
 
 to their machine shop, a large addition to the forge shop 
 was needed instead. 
 
 In 1903, Mr. Taylor published his "Shop Management." 
 "The Art of Cutting Metals" was published in 1906 and 
 constituted Mr. Taylor's presidential address to the Ameri- 
 can Society of Mechanical Engineers. This work has been 
 considered a classic and will be found complete in the A. 
 S. M. E. Transactions of 1907. Volume 28. "The Art of 
 Cutting Metals" covers twenty-six years of experiments in 
 connection with the scientific solution of this phase of the 
 management problem. 
 
 The students are earnestly requested to read Taylor's 
 "Art of Cutting Metals," as a careful perusal of this work 
 will very materially help them to understand what is in- 
 volved in real Scientific Management. It will indicate to 
 them the untiring energy, the deep attention to the problem 
 and the necessity for the highest type of scientific minds 
 which must be brought to bear on problems of this kind. 
 
 The University of Pennsylvania in 1906 conferred on 
 Mr. Taylor the degree of Sc. D. 
 
 It will be interesting to review briefly some of Dr. Tay- 
 lor's work in connection with the machine shop problem. 
 The first questions involved were : 
 
 (a) What tool shall I use? 
 
 (b) What cutting speed shall I use? 
 
 (c) What feed shall I use? 
 
 In trying to determine the answers to the above questipns, 
 many elements were involved with the result that before 
 these questions could be answered, the effect of at least 
 twelve variables must be definitely controlled. These twelve 
 variables are : 
 
 (a) The quality of the metal which is to be cut. 
 
 (b) The diameter of the work. 
 
 (c) The depth of cut. 
 
 (d) The thickness of the shaving". 
 
O HISTORY 
 
 (e) The elasticity of the work and of the tool. 
 
 (f) The shape or contour of the cutting edge of 
 the tool, together with its clearance and slip 
 angles. 
 
 (g) The chemical composition of the steel from 
 which the tool is made and the heat treatment 
 of the tool. 
 
 (h) Whether a copious stream of water or other 
 medium is used on the tool. 
 
 (i) The duration of the cut; take notice i. e. the 
 time which a tool must last under pressure of 
 the shaving without being re-ground. 
 
 (j) The pressure of the job shaving upon the tool. 
 
 (k) The changes of speed and feed possible in the 
 lathe. 
 
 (I) The pulling and feeding power of the lathe. 
 
 In discussing this work and further quoting from "The 
 Art of Gutting Metals," Dr. Taylor divides the problem 
 into four chief sections; namely — 
 
 A. Laws connected with the art of cutting metals. 
 
 B. The mathematical expression of these laws. 
 
 C. Limitations and possibilities of metal cutting 
 machines. 
 
 D. Practical application of knowledge obtained by 
 means of slide rules. 
 
 In connection with the work above referred to, Mr. Tay- 
 lor had associated with him, Mr. H. L. Gantt, one of the 
 best scientific managers, and Mr. Carl G. Barth, also a 
 noted scientific manager and one of our greatest mathema- 
 ticians. Mr. Barth was able to design a slide rule which 
 could be readily modified to suit each different machine and 
 on which he was able to bring under control the twelve 
 variables above mentioned. The result of adapting all these 
 mathematical laws to the slide rule made it possible for any 
 man after a few minutes of instruction and endowed with 
 
FREDERIC A. PARKHURST J 
 
 only a very ordinary education, to quickly solve the three 
 questions listed above; namely, what tool, speed and feed 
 should be used for a given piece of work. 
 
 Too much emphasis cannot be laid on the importance of 
 not considering any one of the elements of Scientific Man- 
 agement as of paramount importance, or of paramount 
 necessity. To quote Mr. Taylor's final closing remarks 
 after the discussion of his paper, "The Art of Cutting Met- 
 als," at the A. S. M. E. Convention in 1906, "In conclusion, 
 I can but express a certain surprise and regret that our 
 paper 'On the Art of Cutting Metals,' has attracted so 
 much more attention than has been given to our various 
 papers on shop management, which, after all, is the real 
 vital subject in which we are most interested, and of which 
 the art of cutting metals constitutes, on the whole, merely 
 one of the important elements." The fact remains that all 
 of the elements of Scientific Management are of importance 
 and must be co-ordinated before the final completion of this 
 scheme of management and before the full effects of same 
 can be realized both by the Company and the Company's 
 employees. 
 
 In the course of lectures to be given this year, all of the 
 various elements will be discussed and treated as completely 
 as the time will permit, so as to make clear to you all, the 
 importance of the organization scheme in its entirety as 
 opposed to the random installation of certain elements. 
 
 The chief elements of Scientific Management as stated by 
 Dr. Taylor himself are : 
 
 A. Science, not rule of thumb. 
 
 B. Harmony, not discord. 
 
 C. Co-operation, not individualism. 
 
 D. Maximum output in place of restricted output. 
 
 E. Development of each man to his greatest effi- 
 ciency and prosperity. 
 
 Each of these elements will be discussed more completely 
 at a later lecture. 
 
8 HISTORY 
 
 In connection with the development of his work. Dr. Tay- 
 lor had associated with him among others, H. L. Gantt, Carl 
 G. Barth and Sanford E. Thompson. As time went on, he 
 was more closely associated with other men as the scope of 
 his work broadened and more engineers began to study and 
 follow closely, Taylor's methods. 
 
 Among the other early pioneers of this work may be 
 named Gilbreth, Dodge & Day, Emerson and myself. I was 
 fortunate in being closely associated with the above men to 
 the extent of being able to clearly study particularly the 
 work of. Taylor, Gantt and Barth. I was in position to 
 profit by their mistakes and I profited by criticisms of their 
 methods of handling this kind of work. Although never 
 directly associated with any of them except Harrington 
 Emerson, with whom I was connected when he started his 
 first management work, I have, as above stated, been closely 
 allied with their methods. I have been able to develop my 
 own methods to get in my judgment, the best results by the 
 application of the Taylor principles. 
 
 In section i-B of this lecture I give a rather complete 
 bibliography of the literature on the subject. This litera- 
 ture is not very extensive and the majority of the books 
 listed treat of generalities rather than all phases of the 
 Science of Management. 
 
 The leading books listed in the bibliography above men- 
 tioned can be read to advantage. It is desirable that every 
 student cover the field sufficiently to be able to understand 
 the entire subject from a broad viewpoint. 
 
 There are statistics from about one hundred thirteen 
 (113) plants in the country that have adopted wholly or 
 in part the principles of Scientific Management. These 
 plants represent over eighty (80) industries. Of the num- 
 ber above mentioned, fifty-nine (59) are reported as being 
 complete successes, twenty (20) as partial successes, and 
 thirty-four (34) failures. There are twenty-eight (28) 
 cases now in process, of which it is expected that twenty- 
 two (22) will be wholly successful. 
 
FREDERIC A. PARKHURST 9 
 
 Failures are due chiefly to two causes : ( I ) The inability 
 of the so-called expert to successfully handle the proposi- 
 tion; (2) Faulty management. The responsibility for the 
 failures is practically equally divided between the expert 
 and the management. Incompetency on the part of the 
 management, dissension, and in one or two cases, unfavor- 
 able conditions of business are responsible for the manage- 
 ment failures. 
 
 With one possible exception, there have been no failures 
 due to difficulty with workmen. The only exception that 
 might be mentioned is the case of the Watertown Arsenal, 
 but this was due more to the fault of the local management 
 than on account of the methods being installed. In this 
 case the labor difficulty was only of short duration, and 
 Gen. Crozier shows conclusively the great saving and ad- 
 vantages that accrued as the result of the installation of 
 the Taylor system of management. 
 
 Any installation that is self-sustaining and continues to 
 run efficiently long after the engineer has left the work, 
 may be considered as being a wholly successful proposition. 
 A great many of the companies prefer to have the engineer 
 retained on a part time basis so as to supervise at intervals 
 the current w r ork of the organization. This is a most de- 
 sirable way of handling an installation of this kind. 
 
 Unfortunately, a good many accountants or so-called sys- 
 tematizes have attempted to put in forms and give the 
 name "Scientific Management" to ordinary routine installa- 
 tion pertaining chiefly to records. Scientific Management, 
 as I will show during the ensuing lectures, is a rather com- 
 plex and scientifically worked out scheme of operation and 
 control which varies to some extent in detail with each dif- 
 ferent installation. Scientific analysis and research must be 
 the basis of every installation, some of the research being 
 of a most extensive and thorough order. 
 
 There are elements involved in every-day operation of the 
 manufacturing industries which the layman rarely stops to 
 
IO HISTORY 
 
 consider. In a very large percentage of cases these elements 
 are not by any means under control nor has there been any 
 great attempt made to bring them under control. It is the 
 object of Scientific Management, as I have briefly indicated 
 above, to analyze the various problems into their elements 
 and bring these elements under control, all based on scien- 
 tific investigation and fact. 
 
 The remaining lectures of this course will treat on the 
 subject as completely as the time allotted will permit. The 
 lectures cover the entire field, however, to such an extent 
 that the student will be able to have a rather complete idea 
 by the end of the year as to just what is involved. He will 
 be well fitted to take up further study of this subject, or 
 to co-operate with any organization of the type under con- 
 sideration. 
 
 The psychological element is of great importance, as in 
 connection with the management problem we have to handle 
 the great human variable. Psychology is one of the big con- 
 trolling - factors. 
 
 *s 
 
 1-B. Bibliography. 
 
 This bibliography is quoted almost entirely from "The Taylor System of 
 Scientific Management" by C. Bertrand Thompson, 1917. 
 
 The Taylor and Other Systems of Shop Management. 
 
 Hearings before Special Committee of the House of 
 Representatives to investigate. Washington, Govern- 
 ment Printing Office, 1912. 1-801, 803-1264, 1265- 
 1935. Free. 
 
 Testimony of "Taylor System" and other man- 
 agement engineers, labor leaders, workmen and 
 War Department officials, regarding the meaning 
 and actual operation of the Taylor system. One 
 of the best sources. 
 
frederic a. parkhurst ii 
 
 Brandeis, Louis Dembitz 
 
 Scientific Management and Railroads, New York, En- 
 gineering Magazine Co., 191 1, vii, 1-92, $1.00. 
 
 A severely concise and logical presentation of 
 principles, backed by the testimony of witnesses in 
 the famous Eastern Rate Case hearings before the 
 Interstate Commerce Commission of 1910. This 
 testimony and Mr. Brandeis' argument made 
 scientific management famous. 
 
 Child, Georgie Boynton 
 
 The Efficient Kitchen, New York, McBride, Nast Co., 
 1914, xiii, 1-242, $1.25. 
 
 Based on work of the Housekeeping Experiment 
 Station. Stamford, Conn. Excellent discussion 
 of methods and equipment. Hard reading but 
 practical. 
 
 Church, Alexander Hamilton 
 
 Science and Practice of Management, New York, En- 
 gineering Magazine Co., 1914, xviii, 1-535. $2.00. 
 
 A keen analysis and synthesis of the factors in- 
 volved in industrial management. Somewhat 
 critical of the Taylor system, but obviously in- 
 fluenced by it. A substantial contribution to the 
 literature of scientific management. 
 
 Cooke, Morris Llewellyn 
 
 Academic and Industrial Efficiency, New York. Car- 
 negie Foundation for the Advancement of Teaching, 
 19 10. Bulletin Number Five vii, 2-134. Free. 
 
 A highly interesting study of the efficiency of 
 management of a number of well-known univer- 
 sities and colleges, as judged from the point of 
 view of an industrial engineer. Stimulated a wide 
 discussion. 
 
12 HISTORY 
 
 Day, Charles 
 
 Industrial Plants, New York, Engineering Magazine 
 Co., 191 1, 1-294. Amplified from articles appearing 
 originally in the Engineering Magazine. $3.00. 
 
 An illustration of the application of some of the 
 principles of scientific management to the design 
 and construction of industrial plants. Illustrated 
 with diagrams and photographs. 
 
 Drury, Horace Brookwalter 
 
 Scientific Management, a History and Criticism. New 
 York, Columbia University, 1915, 7-222. $1.75. 
 
 A doctoral thesis, especially good for its discussion 
 of the origins of the movement and its relation to 
 the problems of labor and wages. Betrays a lack 
 of practical acquaintance with current methods 
 and status. 
 
 Emerson, Harrington 
 
 Efficiency, New York, Engineering Magazine Co., 1st 
 ed. 1909, 4th ed. 1914, xii, 1-254. $2.00. 
 
 A strikingly written exhortation to "efficiency," 
 stimulating, and most useful when it leads the 
 reader to< serious study of the authorities on the 
 subject, such as Taylor and Gantt. 
 
 Emerson, Harrington 
 
 The Twelve Principles of Efficiency, New York, En- 
 gineering Magazine Co., 1912, xviii, 1-423. $2.00. 
 
 An interesting and popular analysis of some of 
 the more obvious principles underlying scientific 
 management. Well written and suggestive in a 
 general way. For practical application of prin- 
 ciples see Knoeppel, "Installing Efficiency Meth- 
 ods." 
 
FREDERIC A. PARKHURST 1 3 
 
 Evans, Holder A. 
 
 Cost Keeping and Scientific Management, New York. 
 McGraw-Hill Book Co., 191 1, ix, 1-252. $3.00. 
 
 A practical machine shop treatise, showing the 
 author's methods as applied at the Mare Island 
 Navy Yard, and illustrating what may be done 
 by way of approach to the Taylor system by a 
 competent manager without the aid of experts. 
 Fairly well illustrated. 
 
 Gantt, Henry Lawrence 
 
 Work, Wages and Profits, New York, Engineering 
 
 Magazine Co., 1910, 2nd ed. 1913, 1-2 12. $2.00. 
 
 The meat of the author's numerous papers and 
 discussions on the more "human" side of scien- 
 tific management. Illustrated with charts and 
 forms. A classic, and indispensable. 
 Gilbreth, Frank Bunker 
 
 Motion Study, New York, D. Van Nostrand Co., 191 1, 
 
 xxiii, 1-116. $2.00. 
 
 A meaty study of the variables involved in the 
 performance of manual labor. Illustrated with 
 photographs and tables showing the author's meth- 
 ods and results in the bricklaying trade. 
 Gilbreth, Frank Bunker 
 
 Primer of Scientific Management, New York, D. Van 
 
 Nostrand Co., 1912, 2nd ed. 1914, viii, 1-108. $1.00. 
 An elementary, popularly written catechetical 
 presentation of the fundamentals of scientific man- 
 agement. Explains some of the characteristic de- 
 tails of the Taylor system and discusses certain 
 current criticisms. 
 Kent, William 
 
 Investigating an Industry, New York, John Wiley & 
 
 Sons, Inc., 1914, xi, 1-26. $1.00. 
 
 A highly suggestive diagnosis of a hypothetical 
 plant, with special attention to the departments of 
 sales and financing usually neglected in works on 
 scientific management. Foreword by H. L. Gantt. 
 
14 HISTORY 
 
 Knoeppel, Charles Edward 
 
 Installing Efficiency Methods, New York, Engineering 
 Magazine Co., 191 5, viii, 1-258. $3.00. 
 
 The best presentation of the Emerson system in 
 its best form. Interesting and stimulating. Fully 
 illustrated with forms, charts, photographs and 
 detailed instructions. 
 
 Park hurst, Frederic Augustus 
 
 Applied Methods of Scientific Management, New 
 York, John Wiley & Sons, 1912, xii, 1-325, 2nd ed. 
 i9 J 7> 1-337- $ 2 -°o- 
 
 A detailed description of the methods of the Fer- 
 racute Machine Company, including the "standing 
 orders" for the performance of various functions, 
 and many forms and photographs. Is a close ap- 
 proximation to the Taylor system as now prac- 
 ticed by its leading exponents. 
 
 Parkhurst, Frederic Augustus 
 
 Scientific Management in the Foundry, 1-133. Read 
 before the American Institute of Metals, Chicago Meet- 
 ing, Sept., 19 14, and Published complete in Transac- 
 tions of American Foundrymen's Association, Vol. 
 XXIII. 
 
 A detailed description in condensed form of the 
 application of the author's methods of scientific 
 management throughout the eight plants of The 
 Aluminum Castings Co., which plants involve not 
 only the sand molding trades for aluminum and 
 brass, but highly technically developed melting 
 practices and technical control of metals, large 
 brass finishing shop doing the highest class of fin- 
 ished work in both brass and aluminum, and the 
 operation of two secret process plants. 
 
frederic a. parkhurst 1 5 
 
 Parkhurst, Frederic Augustus 
 
 Predetermination of Prices, New York, John Wiley & 
 
 Sons, 1916, viii, 1-96. $1.25. 
 
 A discussion of a rather advanced practice in con- 
 nection with the co-relation of costs and the pre- 
 sentation of vital facts in condensed form includ- 
 ing a description of a scientific method of deter- 
 mining burden rates and the distribution of gen- 
 eral expense as applied in connection with the 
 author's methods. 
 
 Parkhurst, Frederic Augustus 
 
 Symbols, New York, John Wiley & Sons, 191 7, vi, 
 1-165. $2.00. 
 
 A discussion of the symbol system. This book 
 includes a rather complete detailed list of the dif- 
 ferent group symbols that have been standardized 
 to date, which standardization can in general be 
 quite universally adopted. Probably the only book 
 devoted entirely to symbols. 
 
 Parkhurst, Frederic Augustus 
 
 Scientific Time Study and Differential Bonus. About 
 
 450 pages, in course of preparation. 
 
 This book will contain about 25 chapters and will 
 discuss the various standardizations that have 
 been developed by the author in connection with 
 standard elemental operation times as well as a 
 general time study work. The charts and dia- 
 grams show performance in a wide range of in- 
 dustries employing representative trades through- 
 out, with detailed instructions as to time study 
 data, etc. Various systems of wage payments will 
 be discussed and will include all of the author's 
 job classifications, bonus classes, and a wide range 
 of application of his differential bonus to direct 
 and indirect labor, departmental and plant effi- 
 ciencies, the application of bonus to clerical opera- 
 tions, technical work, etc. The last chapter will 
 
1 6 HISTORY 
 
 include a statement as to the individual and cor- 
 porate results obtained through the author's meth- 
 ods of scientific management. 
 
 Pattison, Mary 
 
 Principles of Domestic Engineering, New York, 19 15, 
 1-3 10. $2.00. 
 
 Experiments at Colonia, for N. J. Women's Clubs. 
 Deals not so much with details of methods and 
 equipment as with fundamental principles of home 
 building and management. 
 
 Shaw, A. W., Company 
 
 In magazines (System and Factory) and works 
 (including The Library of Factory Management) 
 published by this house there has appeared from 
 time to time material having to do with the Tavlor 
 system of scientific management. This is also true 
 of other periodicals and sets not mentioned here, 
 but in most cases taken into consideration in pre- 
 paring Scientific Management (see below). 
 
 Taylor, Frederick Winslow 
 
 On the Art of Cutting Metals, New York American 
 Society of Mechanical Engineers, 1907, 3-248, and 
 folders 1-24. $3.50. 
 
 One of the most notable contributions to practical 
 science. Illustrates by example the fundamental 
 methods and aims of scientific management. 
 Preface reproduced in C. B. Thompson's Scientific 
 Management. 
 
 Taylor, Frederick Winslow 
 
 The Principles of Scientific Management, New York, 
 Harper & Bros., 191 1, 5-144. Also published by Amer- 
 ican Society of Mechanical Engineers. $1.50. 
 
 A popular restatement of the principles as matured 
 by the author after retirement from active prac- 
 tice. More readable than "Shop Management" 
 and equally authoritative, though in a more gen- 
 eral way. 
 
frederic a. parkhurst ij 
 
 Taylor, Frederick Winslow 
 
 Shop Management, New York, Harper & Bros., 191 1, 
 5-203. Foreword by Henry R. Towne. Also in Trans- 
 actions American Society of Mechanical Engineers, 
 No. 1003, New York, 1903, $1.50. 
 
 The fundamental classic of Scientific Manage- 
 ment. Incorporates the best of the author's for- 
 mer writings and experience, and is the basis of 
 the later developments. Indispensable. 
 
 Taylor, Frederick Winslow, and Thompson, Sanford 
 Eleazar 
 
 Concrete Costs, New York, John Wiley & Sons, 19 12, 
 xii, 1-709. $5.00. 
 
 Illustrates in detail the application of the time- 
 study and standardization methods of scientific 
 management to concrete structural work. Illus- 
 trated fully with charts, sketches, tables of ele- 
 mentary times, etc. 
 
 Thompson, Clarence Bertrand 
 
 Scientific Management, a collection of the more sig- 
 nificant articles describing the Taylor System of Man- 
 agement, Cambridge, Mass., Harvard University 
 Press, 1 9 14, xii, 3-88, $4.00. 
 
 Includes the cream of the literature on the sub- 
 ject (outside of the standard works of Taylor and 
 Gantt) selected and edited from periodicals and 
 books, many of which are now out of print or 
 otherwise difficult of access. See below for con- 
 tents. 
 
 contents of scientific management 
 (The book listed just above) 
 
 Earth, Carl G. 
 
 Slide Rules in the Machine Shop as a Part of the 
 Taylor System of Management. 
 
1 8 HISTORY 
 
 Cardullo, Forest E. 
 
 Industrial Administration and Scientific Manage- 
 ment. 
 
 Carlton, F. Tracy 
 
 Scientific Management and the Wage-Earner. 
 
 Clark, Sue Ainslee and Wyatt, Edith Franklin 
 
 Scientific Management as Applied to Women's 
 Work, from "Making Both Ends Meet." 
 
 Crozier, Gen. Wm. 
 
 The Taylor System of Shop Management at the 
 Watertown Arsenal. 
 
 Cunningham, Wm. J. 
 
 Scientific Management in the Operation of Rail- 
 roads. 
 
 Day, Charles 
 
 Management Principles and the Consulting En- 
 gineer. 
 
 Dodge, James Mapes 
 
 A History of the Introduction of a System of 
 Shop Management. 
 
 The Spirit in which Scientific Management should 
 be approached. 
 
 Gantt, Henry L. 
 
 A Graphical Daily Balance in Manufacture. 
 
 Hathaway, H. K. 
 
 Elementary Time Study as a Part of the Taylor 
 
 System of Scientific Management. 
 
 The Planning Department, Its Organization and 
 
 Function. 
 
 Prerequisites to the Introduction of Scientific 
 
 Management. 
 
FREDERIC A. PARKHURST IO, 
 
 Kendall, Henry P. 
 
 Unsystematized, Systematized, and Scientific 
 Management. 
 
 Kent, Robt. Thurston 
 
 The Foreman's Place in Scientific Management. 
 The Tool Room under Scientific Management. 
 Scientific Management as viewed from the Work- 
 man's Standpoint. 
 
 Kimball, Dexter S. 
 
 Another Side of Efficiency Engineering. 
 
 Le Chatelier, Henri 
 
 Preface to the French Edition of "The Principles 
 of Scientific Management." 
 
 Lewis, Wilfred 
 
 An object Lesson in Efficiency. 
 
 Myers, Lieut. C. J., U. S. N. 
 
 The Science of Management. 
 
 Shaw, Arch Wilkinson 
 
 Scientific Management in Business. 
 Smith, Oberlin 
 
 Nomenclature of Machine Details 
 
 Sterling, Lieut. Frank W., U. S. N. 
 
 The Successful Operation of a System of Scien- 
 tific Management. 
 
 Stimpson, H. F. 
 
 The Application of Scientific Management to a 
 Railway Shop. 
 
 Sub-Committee on Administration of the American 
 Society of Mechanical Engineers, 1912 
 The present State of the Art of Industrial Man- 
 agement. 
 The Railways and Scientific Management. 
 
20 HISTORY 
 
 Anon — 
 
 The Mistakes of the Efficiency Men. 
 
 Taylor, Frederick W. 
 
 On the Art of Cutting Metals (Preface and Se- 
 lections from the ensuing discussion). 
 A Piece-Rate System : Being a Step Toward a 
 Partial Solution of the Labor Problem. 
 
 Thompson, C. B. 
 
 Bibliography of Scientific Management. 
 
 Classification and Symbolization. 
 
 The Literature of Scientific Management. 
 
 The Relation of Scientific Management to the 
 
 Wage Problem. 
 
 Scientific Management in Retailing. 
 
 Tuck School Conference 
 
 Addresses and Discussions at the Conference on 
 Scientific Management. Hanover, N. H., Amos 
 Tuck School, 1 9 1 2, xi, 1-388. $2.50. Papers by 
 F. W. Taylor, H. L. Gantt, C. H. Jones. H. P. 
 Kendall, J. M. Dodge, H. Emerson and others, 
 and discussions led by H. K. Hathaway, E„ 
 Szepesi, C. H. Jones, M. L. Cooke, E. F. Gay, F. 
 A. Cleveland, and others. The best of these are 
 reprinted in C. B. Thompson's "Scientific Man- 
 ae-ement." 
 
LECTURE II 
 
 FUNDAMENTALS ; PRACTICE VERSUS THEORY IN THE 
 SCIENCE OF MANAGEMENT 
 
 It is not the author's intention to imply by the title of this 
 article that practice and theory do not each bear a most im- 
 portant part in the science of management. These two words 
 are symbolic of two chief factions, one for and one against 
 our new science of management. To the layman, scientific 
 management is a theory, pure and simple. To the manufac- 
 turer, who has put his plant under this form of manage- 
 ment, it stands for prosperity to the firm and all its em- 
 ployees, a new era of industrial peace and contentment, low 
 costs and high wages. 
 
 It is not at all remarkable that there should be such a wide 
 difference of opinion on this subject. It would indeed be 
 remarkable if it were not so. History repeats itself. What 
 is now true of scientific management has been in the past 
 true of all great ^teps or changes, tending to the advance 
 ment of the human race. The march of progress in all 
 things would cease were there no obstacles to surmount. 
 Columbus, Watt, Ericson, Morse, Marconi, Langley, Edi- 
 son, Brush, Chanute and the Wright Brothers, as well as 
 many others, were each and every one at first considered 
 theorists or cranks. Their dreams of the possibilities of 
 their chosen lines of work at first seemed ridiculous to their 
 contemporaries but the practical application of their ideas 
 has far outstripped their broadest conception of these sub- 
 jects. 
 
 There is no doubt that the new science of management 
 will come into its own through exactly the same process of 
 transition. The few chief exponents of scientific manage- 
 ment are in exactly the same position as were the inventors 
 and investigators mentioned above. No one can deny that 
 the field of the organizing engineer opens into vast fields of 
 
 21 
 
22 PRACTICE VS. THEORY 
 
 progress. The benefits which will accrue from the universal 
 application of the new science of management will affect in 
 a greater or less degree all of the working class in this 
 country, eventually the world. The author predicted in a 
 lecture before the New England Railroad Club at Boston, 
 December, 1904, that the science of management was 
 "slowly but surely becoming universal in this country." 
 That was nearly thirteen years ago and he now reiterates 
 the same prophecy. In fact, the striving for efficiency in 
 life as well as business is becoming universal much faster 
 than any one, except the best informed, realizes. This is 
 primarily due to the fact that in the last six years, scien- 
 tific management has been prominently brought to the at- 
 tention of the entire country on several great occasions. 
 Chief of these are : 
 
 1. The Interstate Commerce Commission investigation in 
 191 1 into the proposed increase in railroad freight rates. 
 
 2. The formation in New York, December, 191 1, of the 
 Society to Promote the Science of Management. 
 
 3. The conference on scientific management at the Amos 
 Tuck School of Administration and Finance at Dartmouth 
 College, in October, 191 1. 
 
 4. Formation of the Efficiency Society in New York, in 
 the spring of 19 12. 
 
 5. Congressional Committee's investigation and report on 
 the Taylor and similar methods of scientific management in 
 1912. 
 
 In addition to the above mentioned events there has been 
 a general exploitation and discussion of the subject in 
 nearly, if not all, of the trade journals, monthly magazines 
 and society transactions, to say nothing of the newspaper 
 reports, etc. All of this publicity has of course had its 
 effect. Fortunately and justly, the majority of the articles 
 and discussions have been favorable in their attitude. The 
 few which have not been so were obviously written by per- 
 
FREDERIC A. PARKHURST 23 
 
 sons scanning the subject superficially or with distorted 
 vision. 
 
 I am sure that all the chief supporters and exponents of 
 scientific management will join me in heartily inviting a 
 thorough and impartial investigation of its principles and 
 the results which follow a practical application of those prin- 
 ciples. Such an investigation is the easiest, most logical 
 and surest way of enlightening oneself on the subject. It 
 is unfortunate that a number of would-be critics have appar- 
 ently not made a thorough and impartial study of this sub- 
 ject "on the ground." They have evidently passed the door 
 and guessed as to what was within. They have a perfect 
 right to guess, form their own opinions, etc., for their own 
 personal satisfaction. When they attempt, however, to ex- 
 ploit their supposed knowledge of the subject to the detri- 
 ment, intentionally or otherwise, of those directly to be bene- 
 fited by the adoption of scientific management, it is time 
 they and their followers become enlightened. 
 
 There are undoubtedly many "theorists" who believe that 
 scientific management can be studied, rehearsed and memo- 
 rized in the school room or library and "presto !" an effi- 
 ciency engineer is born. It must be acknowledged that 
 many efficiency engineers have sprung into the field in just 
 this way. They are full of theory but not the theory, and 
 without the practical knowledge of their subject or of men. 
 
 Many theories may of course be formed by as many dif- 
 ferent men. These theories but reflect the scope of each 
 man's imagination or grasp of the fundamentals. There 
 may be many theories as to scientific management, what it 
 is, its scope, value, etc. That these theories vary so widely 
 is but natural. They are due entirely to a lack of under- 
 standing, or full comprehension of the fundamental prin- 
 ciples. Mr. Fred W. Taylor defines scientific management 
 as a combination of the following elements : 
 
 A. "Science, not rule of thumb." 
 
 B. "Harmony, not discord." 
 
24 PRACTICE VS. THEORY 
 
 C. "Co-operation, not individualism." 
 
 D. "Maximum output in place of restricted output." 
 
 E. "Development of each man to his greatest efficiency 
 and prosperity." 
 
 Many people consider the above combination of elements 
 a theoretical proposition which works out easily on paper 
 but will not resolve itself into a practical solution. Let us 
 analyze Mr. Taylor's principles separately: 
 
 A. "Science, not rule of thumb." There has been much 
 criticism of the word "science" or "scientific" as applied to 
 the problem of management. Many critics claim that there 
 can be nothing scientific in works-management and that the 
 word so used is incorrect. Webster's definition of science is : 
 "Systematized knowledge of the conditions and relations of 
 mind and matter; accepted facts and principles as demon- 
 strated by induction, observation or experiment." If sys- 
 tematized investigation and compilation of data pertaining 
 to knowledge of the conditions and relations of mind and 
 matter do not represent the most important feature of 
 proper management, then what does? A common-sense 
 method of proceeding with each piece of work is to find 
 
 (a) What must be done. 
 (&) What material used. 
 
 (c) How must it be done. 
 
 (d) With what tools. 
 
 (<?) How long will it take. 
 (/) When will it be done. 
 (g) What will it cost. 
 
 To answer these preliminary questions satisfactorily one 
 must have a complete knowledge of the equipment and ma- 
 terial involved, of the qualifications of the individual work- 
 ers and of the various other elements entering into the com- 
 pletion of each piece of work. This comprehensive knowl- 
 edge comes through specially trained men, detailed to carry 
 on and record all investigations necessary. It is most cer- 
 tainly in line with scientific methods of procedure. 
 
FREDERIC A. PARKHURST 25 
 
 B. "Harmony, not discord." It is needless to say much in 
 the way of advocating the desirability of harmony over dis- 
 cord. This of course is axiomatic and there can possibly be 
 no sustained criticism of such a feature in any form of man- 
 agement, whether scientific or otherwise. 
 
 C. "Co-operation, not individualism." Another com- 
 mon-sense element which allows of little controversy. 
 
 D. "Maximum output in place of restricted output." A 
 concern to be successful, and to run its business profitably, 
 must realize from its equipment and working force a maxi- 
 mum output and each must maintain that condition if it 
 hopes to stay in business in the face of modern competition. 
 The country is suffering to-day from over equipment in the 
 way of plants and accessories. The result shows a great 
 waste both in first investment and indirect charges including 
 depreciation while the plant is running, to say nothing of 
 the great overhead charge and depreciation in slack times 
 when the plant is lying idle. Why deny that maximum 
 production is too often striven for in a most unintelligent 
 way ? As far as the personnel is concerned, maximum pro- 
 duction can only be obtained by surrounding them with the 
 elements mentioned above — science, harmony and co-opera- 
 tion. 
 
 E. "Development of each man to his greatest efficiency 
 and prosperity." Here again we have an element which 
 should need but little argument in support of it. In point 
 of fact, however, we often find opinions to be diametrically 
 opposed to what we would naturally expect to find. The 
 trouble, however, is not with the principle involved or with 
 the theory that it is a desirable and necessary thing to strive 
 for — this maximum efficiency and prosperity. The cause is 
 often a lack of knowledge of what is involved and a deplor- 
 able misunderstanding of the objects and intentions of those 
 striving to bring about maximum efficiency. 
 
 I have discussed these principles at some length and many 
 may think I am going over ground which has already been 
 covered. My object, however, in doing this is to again bring 
 
2(5 PRACTICE VS. THEORY 
 
 before those who have not clearly analyzed the principles of 
 scientific management what is involved and just what the 
 ideal is. There has been too much taken for granted on the 
 part of some critics. The result has been a certain factor of 
 opposition, which is wholly uncalled for. May this resume 
 help to clear the subject. 
 
 One of the common criticisms heard is to the effect that 
 "scientific management may do for some kinds of work, but 
 it will not do in ours." The exponent of the science of man- 
 agement must ever bear in mind that he faces an educational 
 proposition continually. It is easy to condemn something 
 which one does not understand. This being an admitted fact 
 and bearing in mind that many of the persons directly af- 
 fected by the introduction of scientific management are not 
 in a position to understand these things, it behooves every 
 organizing engineer to pay special attention to this one fea- 
 ture — namely, education. 
 
 In considering the educational feature one must not over- 
 look the psychological element involved. To the author's 
 mind this is the most important factor in the successful in- 
 stallation of the science of management, and is the one thing 
 which has made failures from what would otherwise have 
 been successes. That such failures have existed cannot be 
 denied. It is equally true that the trouble has never been 
 with the principles involved but usually with the general 
 unfitness of those attempting to carry out the work. Other 
 failures can be traced to the attempt to copy and install some 
 particular feature of scientific management without the rest 
 of the elements necessary. Men attempting to do this 
 usually have a superficial book-knowledge of the subject and 
 are wholly lacking in the true conception of the ideals and 
 principles involved. Practical shop experience and the abil- 
 ity to handle men are absolute requisites for the successful 
 introduction of the principles by any engineer. 
 
 Before taking up in detail some examples to illustrate the 
 difference between the theoretical feature, or the bare out- 
 line of principle, and the practical method of installing those 
 
FREDERIC A. PARKHURST 2J 
 
 principles, I want to emphasize the fact that it is not so 
 much zvhat you do in the way of radical changes as in how 
 you make them. Again I repeat that the true conception 
 and realization of the psychological element and its bearing 
 on every branch of management work must be recognized as 
 the most important of all the elements. To be successful 
 xhe organizing engineer must master the psychological fea- 
 ture of each and every problem first, last and always. 
 
 Now as to the methods used in the practical application of 
 the above mentioned principles, the organizer must thor- 
 oughly acquaint his client with what is involved in order to 
 realize from these principles maximum results. Stockhold- 
 ers, directors and officers of the company must be informed 
 /is to what may be expected in the way of results. They 
 should thoroughly study all phases of the problem and try 
 to realize the difficulties likely to be met. Not the least of 
 these will be the idiosyncrasies and biased ideas of some of 
 the personnel. The fact must not be lost sight of that at 
 least some of the older and most valuable employees must 
 be patiently and carefully weaned from some or most of 
 their old traditions and habits. Those of the old school must 
 not be blamed if at first they show ignorance or disapproval 
 of radical changes. Their environment and training is re- 
 sponsible for this frame of mind. These same men will be 
 the most enthusiastic and the strongest supporters of the 
 new regime when they begin to see its advantages. They 
 will be the first to show a new and lasting sense of satis- 
 faction and contentment with the elimination of friction, the 
 maintenance of schedules and the increased results easily 
 accomplished with a minimum of mental and physical 
 outlay. 
 
 The period of transition is often a long and annoying one 
 for all concerned. This is due to the many variables to be 
 overcome. Patience and tact will win out in the end if each 
 and every one realizes that every one is human after all. 
 Time is the essential factor, and the time required depends 
 upon the mental attitude of each. The author to-day enjoys 
 
28 PRACTICE VS. THEORY 
 
 the friendship and co-operation of many men now working 
 under scientific management, who at first opposed him at 
 every turn and condemned new methods before sufficient 
 time had elapsed to prove their worth. Men must be shown, 
 educated, led, not driven. It is only the extreme case where 
 in the end a man has to be removed for failure to abide by 
 the new order of things. Study each man's character, find 
 the avenue of approach and he can be educated and made 
 efficient in spite of himself. Many men, particularly those 
 in the more responsible positions, have a natural and deeply 
 rooted antipathy for being shown by others. They wish 
 to be known and recognized as the originator of all that is 
 new or an improvement over the existing order of things. 
 It has been my experience that one of the best and surest 
 ways of handling persons of this make-up is to accomplish 
 the desired end through suggestion. In the majority of 
 cases a few words followed judiciously with concrete ex- 
 amples to illustrate your point will sow the seed of desire. 
 This seed will immediately take root and sprout forth as an 
 original and newly discovered method sure to meet the 
 exigencies of the occasion. This method will not do with all 
 men of this mental attitude. Some will not be influenced or 
 convinced until shown by actual accomplishment. Others 
 can be recruited by the proper presentation of the results of 
 an analytical study of conditions followed by cold, impartial 
 figures. Figures talk, especially if they are always recap- 
 itulated into a bare statement of value in dollars and cents. 
 Other men will be found in every organization who have 
 an inherent faith in any new departure ordered by their 
 superiors. Such cases do not offer the same kind of handi- 
 cap, as do those above cited. They do offer another possible 
 source of trouble however : that of a too earnest wish to 
 reach the desired goal, without due appreciation of the diffi- 
 culties and conditions to be overcome and changed. Mate- 
 rial difficulties can be removed with comparative ease. 
 Changes directly affecting the personnel are often far from 
 easy and continual restraint must be exercised for this rea- 
 son. If this restraint is riot present the too enthusiastic 
 
FREDERIC A. PARKHURST 20, 
 
 department head or some subordinate will find himself op- 
 posed by a stone wall of personal opposition. Many men 
 can be led but only the few can be pushed. 
 
 Education of the rank and file is fully as important as the 
 education of the principals and heads of departments. The 
 education of the former is much easier, however, when the 
 latter have graduated, so to speak. Let those at the top set 
 the example. Shop men as a rule have the erroneous idea 
 that their superiors and office force are inclined to consider 
 themselves on a much higher plane and seemingly force 
 themselves to the necessary intercourse with those beneath 
 them. There is no doubt but that in many cases this con- 
 dition exists. That it is often so is most unfortunate as 
 well as unnecessary — and most undesirable. One of the 
 greatest advantages of real scientific management lies in the 
 fact that such a demoralizing and disastrous condition of 
 affairs is eliminated. I do not mean to imply by this state- 
 ment that scientific management is the sole remedy for such 
 a condition, but it is nevertheless a sure remedy. In point 
 of fact, under scientific management the rank and file are 
 placed in position to demand and get from their superiors 
 proper working conditions, and as to maintenance of equip- 
 ment and supply of material, to get co-operation, and the 
 "square deal." Responsibility is placed where it belongs. 
 No one high or low can "put it over" on another, because 
 the responsibilities and duties of each are clearly defined in 
 writing. The pressure of responsibility is not one sided and 
 concentrated in one place, or directed towards the weak. It 
 is equalized. Instead of turmoil and contention like the 
 troubled and restless sea, which makes smooth running im- 
 possible, we have the calm and reliable medium of a harbor 
 sheltered by the bulwarks of harmony. The least opposing 
 influence immediately becomes apparent. It can be localized 
 and remedied at once. 
 
 The best influence is an honest confidence in the entire 
 personnel. An efficient organization with reliable heads and 
 a spirit of co-operation in touch, through these mediums, 
 
30 PRACTICE VS. THEORY 
 
 with all of the personnel, lays the foundation for a lasting 
 and trouble-free industrial or business condition. To bring 
 about these conditions eternal vigilance is necessary. No one 
 must be allowed to harbor any misunderstanding as to the 
 intent of the reorganization. Investigate and trace to its 
 source every disturbing influence. Let no one misunder- 
 stand the ultimate object in view. Openly advertise and 
 propound the chief elements or principles of our new science 
 of management. 
 
 A. Science, Not Rule of Thumb 
 
 Having observed the above essentials, the next step is to 
 bring under control equipment, methods and output. This 
 has formerly been left to the foreman and bosses. Details 
 and responsibilities have been thrust upon them which 
 should be borne by others. Specialization is the order of 
 the day under scientific management. 
 
 The modern planning room is the first really radical inno- 
 vation. The production clerk, order-of-work clerk, route 
 clerk, material boss, shop engineer, time-study man and 
 speed bosses, are new functional men. These are created 
 to take off of the shoulders of foremen and others, duties 
 for which they are specially trained. Through this depart- 
 ment we begin to control shop equipment, methods and 
 material. 
 
 The different planning-room men begin through analyti- 
 cal study of conditions to determine the shop conditions. 
 Work for the shops is planned and distributed in the most 
 efficient way. Delays due to faulty equipment are investi- 
 gated and a recurrence made impossible. Equipment is 
 tuned up, cared for and kept in repair. The result is that 
 each machine and man is made more productive. There 
 are no waits or delays on account of absence of material 
 with which to work. Some men or machines are not piled 
 up with work while others work from hand to mouth. The 
 work ready for processing is evenly and judiciously distrib- 
 uted. I have known of cases where one-third (1-3) of a 
 
FREDERIC A. PARKHURST 3 I 
 
 day of man and machine, often of gangs of men, has been 
 wasted, due to such causes. This condition is common ; the 
 effect is demoralizing and tends to gradually decrease the 
 daily output per man. Over equipment due to lack of plan- 
 ning and to pure guesswork is also largely responsible for 
 a decreased output per capita. Production clerk, order-of- 
 work clerk, route clerk, and material boss remedy this. 
 
 Having provided for the maintenance of standardized 
 equipment, conditions and flow of material, the methods 
 must be investigated. The shop engineer determines the 
 tools and methods; the time-study boss determines the 
 standard time, and the data is available for the issuance of 
 instruction cards. The speed bosses then see that the in- 
 struction cards are followed and the standard time realized. 
 
LECTURE III 
 
 fundamentals; practice versus theory in the 
 science of management (continued) 
 
 It will be seen by the above brief explanation (see Lec- 
 ture 2) that what is ordinarily done by one or two men is 
 done under scientific management by six or seven or more, 
 depending upon the kind of business. What is the result? 
 Each of the chief planning room men becomes highly profi- 
 cient in his particular branch. Through them it is possible 
 to itemize and analyze into small elements all details of a 
 business. They have complete and up-to-date records of all 
 work which has been done. Comparison can be made, both 
 of methods, quality, time and cost. Relative capacity of ma- 
 chines, men, productive units and departments can be made, 
 and work planned and distributed accordingly. Elemental 
 operations can be standardized, and men can be trained to 
 do them in standard time with a minimum of effort. Each 
 man's efficiency can be kept track of and his work and pay 
 regulated, independent of his fellow workmen. The ac- 
 cumulation of data makes possible the correct determination 
 of how much men as well as machines can do daily without 
 undue fatigue and eventual break-down. We can safeguard 
 our machines by not overloading them, because stresses due 
 to tool pressure, torque and vibration, can be controlled 
 through instruction cards. Fewer accidents will occur on 
 this account because detailed study of operations determines 
 the best and safest way to do a given piece of work. Not 
 many people realize how comparatively few different ele- 
 mental operations are actually necessary for the performing 
 of all kinds of work in any one trade, until they have 
 analyzed and studied them personally. 
 
 Consider the above carefully and then answer the follow- 
 ing questions for yourself. Can any foreman who is in 
 
 32 
 
FREDERIC A. PARKHURST 33 
 
 charge of the average sized department with all its variety 
 of equipment and its twenty-five to fifty or more men, keep 
 track of all the above elements and so obtain maximum effi- 
 ciency? Were he mentally and physically capable of all the 
 work necessary, could he be an expert and highly proficient 
 in so many different lines ? Could he even find time to both 
 plan and execute on the scale required ? Would he be in pos- 
 session of the data necessary to absolutely control methods, 
 conserve the time of each man, eliminate delays, etc. ? Could 
 he be always fair and just and impartial in handling his 
 men? The answer is most emphatically no. A jack of all 
 trades is master of none. Yet ordinary management often 
 demands of its foreman all of the above and more. 
 
 What will the planning room accomplish for a concern? 
 Combined with bonus system of extra remuneration, it will 
 result in doubling, tripling, and sometimes quadrupling the 
 output of a plant. It will reduce labor costs, including the 
 extra overhead from 30 per cent, to 50 per cent, and in- 
 crease wages from 35 per cent, to 50 per cent. — in some 
 cases even more. 
 
 A word will not be out of place regarding obvious advan- 
 tages of these methods in setting correct rates. It is not un- 
 usual to find piece or premium rates set by the usual guess- 
 work methods that allow a man to earn $7.00 to $8.00 per 
 day for much less return than represents a fair day's work. 
 I have known of several cases where a piece rate was cut 
 nearly in halves because the man was earning about $8.00 
 per day. After the cut he still earned $8.00. Obviously the 
 original rate was four times what it should have been. The 
 work did not require skilled help and $4.00 per day would 
 be a generous wage. Aside from this, the man was limiting 
 output during the time he was making on the original rate. 
 He doubled his output when the rate was cut. Had stop 
 watch observations been made by a properly trained time 
 study man, preferably one who was skilled in the trade 
 under observation, this could not have happened. The re- 
 sult of improperly set rates need not be discussed here at 
 
34 PRACTICE VS. THEORY 
 
 length. They include dissatisfaction on the part of the firm ; 
 the inevitable cut and continual dissatisfaction on the part 
 of the men; limitation of output; increase of discontent and 
 deceit and eventually labor troubles. The elimination of 
 these troubles will save many times more each year than it 
 costs to run a planning room. 
 
 When a foreman sets, a rate, he estimates it by using day- 
 work output as a basis. He adds something to it for luck 
 and sets his rate. Actually the rate of day-work under or- 
 dinary shop conditions as compared to bonus work under 
 scientific conditions is i to 3 or 4 on the average ; some cases 
 1 to 10 or even more. 
 
 There are certain difficulties to overcome when establish- 
 ing bonus in a plant accustomed to piece or premium im- 
 properly set. These difficulties consist chiefly of a marked 
 difference in the maximum earning power of a man based 
 on a bonus rate set after an itemized time study, as com- 
 pared to the arbitrary piece or premium rate. The preceding 
 paragraph has explained in part what these differences are. 
 Jn addition, however, to the difference in the ultimate day's 
 earnings, more trouble is met with in trying to educate the 
 workman to an entirely new viewpoint. This can best be 
 explained by calling attention to the fact that what we pur- 
 chase is a man's time and not his output. It is up to the 
 organization to see that a fair output per day is realized. 
 When this output reaches a fair average maximum, the 
 extra remuneration is in the form of a bonus, the result 
 being an increased daily earning. Comparing a differential 
 bonus scale of prices, however, the tendency on the part of 
 the man is to consider it only as a piece rate. To further 
 illustrate this point, if we have a job that has been paying 
 i;even cents (7c) a piece and the production has been about 
 fifty pieces per day, the piece rate earning of the man is 
 $3.50. If this method of payment is replaced with differ- 
 ential bonus, the tendency is to compare the difference in 
 earnings of the day for the last few pieces. The result is 
 that the man feels he is being paid at only the rate of say. 
 
FREDERIC A. PARKHURST 35 
 
 two cents (2c) a piece, losing sight altogether of the fact 
 that he has been assured of his nominal day rate irrespec- 
 tive of his production. 
 
 The above mentioned troubles are not found where im- 
 properly set piece or premium rates do not exist. Neither 
 is there similar trouble in establishing bonus rate in a shop 
 which has worked only under regular hourly or daily wage. 
 ■ One often has to contend with the natural antagonism of 
 some men who feel that the installation of bonus is some 
 means in disguise of further reducing their earning power. 
 This objection, however, can readily be overcome after the 
 men realize that the rates will be established correctly in 
 the first place, and remain unchanged so long as the piece 
 or job remains unchanged, in design, method or equipment. 
 Of course guaranty not to change rates would as readily 
 apply to piece or premium work under like conditions. The 
 trouble, however, is that piece or premium work is usually 
 priced arbitrarily and so results in unfair rates, both to the 
 man and to the firm. Therefore, it is practically impossible 
 to guarantee any permanency. 
 
 B. Harmony, Not Discord 
 
 This is the second element of the combination defined by 
 Mr. Taylor. How often we hear the criticism that harmony 
 is realized in almost all lines of business and that it has 
 nothing whatever to do with, neither should it be particu- 
 larly identified with, scientific management. If this is so, 
 and if harmony is such a well-understood and common ele- 
 ment, why don't we see more of it in the average manufac- 
 turing or industrial establishment? The fact remains that 
 in a great many instances, harmony is conspicuous by its 
 absence. Many of the chief reasons for this condition can 
 be traced directly to the case illustrated in the last few pre- 
 ceding paragraphs. Its absence is often due to that great 
 variable the personal factor. This is particularly so in large 
 plants which have grown rapidly and abnormally. Their 
 sudden growth has demanded the mushroom type of or- 
 
36 PRACTICE VS. THEORY 
 
 ganization which must of necessity lack the refinement of 
 one more deliberately planned. 
 
 There are a great many factors tending to create discord, 
 some of which require an immense amount of time to re- 
 move. As far as the personnel is concerned, this can be 
 handled and developed in the way previously referred to in 
 this article. When that is accomplished the next move is. to 
 inspire everyone with the policy that only the square deal 
 will prevail. To' bring about this condition, extremely strict 
 order of discipline must be maintained and the policy of the 
 company clearly defined so that everyone can work in har- 
 mony with it. Each member of the organization must be 
 forced to realize the fact that everyone is employed to work 
 for the company's interests, and co-operate and work in 
 harmony with his associates. Discrimination of individuals 
 must be absolutely prohibited. This latter dictum is one 
 likely to be far-reaching in its nature. Men have to be 
 trained to lay aside their personal likes and dislikes and to 
 regard their work from an entirely different viewpoint. 
 This is hard at first, but after they become accustomed to 
 the new order of things and begin to realize the certain ad- 
 vantage, it is as natural to work harmoniously as otherwise, 
 and much more comfortable. 
 
 One of the greatest disturbing elements in connection 
 with building an efficient and harmonious organization is 
 the one of poor pay. It is a mistaken idea on the part of 
 many managers and heads of departments that they are 
 earning money for the company and running their depart- 
 ment cheaply by the employment of cheap help. This is as 
 true of office employees as it is of the rank and file. The 
 layman little realizes the actual difference between output 
 per man as compared to large differences in pay per man. 
 For example, many cases can be cited where a man earning 
 $2.50 has an output which can be expressed by unity; by 
 an expenditure of more money for sufficient supervision, 
 proper maintenance of equipment, etc., plus extra incentive 
 to the man for following instructions and putting up a fair 
 
FREDERIC A. PARKHURST T>7 
 
 day's work, a production can be realized which may be ex- 
 pressed by 3 or 4 and sometimes much more. 
 
 The difficulties in the way of remedying this condition 
 while promoting harmony are very many. This statement 
 may seem strange, but it is nevertheless true. In many cases 
 the greatest objection comes from those who are eventually 
 to be directly benefited by this change of condition. The 
 average shop man presents another stumbling block by con- 
 sidering- his own particular work more or less his private 
 asset, of which the firm should know little or nothing. In 
 other words, he feels that the more dependent the firm is 
 upon him for information, the more secure his position with 
 them will be. The fact is lost sight of that promotion is 
 often denied a man because through lack of organization 
 and knowledge on the part of the firm, he is forced to re- 
 main in a minor position. When data of each man's ability 
 is in the hands of the firm, advancement can be made com- 
 mensurate with his ability without in any way tending to 
 disrupt or retard his work or that of his department. In 
 order to bring about this condition and establish a self-sus- 
 taining organization, each incumbent of important posi- 
 tions, including heads of departments, should train and have 
 immediately under him a successor competent to take over 
 his duties and responsibilities at a moment's notice. This 
 condition can pertain to a small organization as well as to 
 a large one. A man may often fulfill the duties of several 
 positions where the duties of one do not require all of his 
 daily time. 
 
 C. Co-operation, Not Individualism 
 
 This element in a general way can be considered in the 
 same manner as harmony. Individualism in the ordinary 
 form of management can be likened to co-operation under 
 scientific management in much the same way as individual 
 effort among a body of men can be compared to well-trained 
 and highly-organized team work. Our modern professional 
 baseball team is probably one of the greatest examples of 
 scientific management before the world today. The fact is 
 
38 PRACTICE VS. THEORY 
 
 little realized by the thousands of enthusiastic fans who 
 watch one of our league games. Great enthusiasm is often 
 manifested over some startling or spectacular play on the 
 part of an individual which may appear to be absolutely 
 spontaneous. The truth of the matter is that the majority 
 of such plays have been carefully worked out by long and 
 tedious practice and intricate time studies. The result is 
 that with the player on base and the ball in a certain part 
 of the field, or in the hands of a pitcher about to be played, 
 the success of the proposed play can almost invariably be 
 predetermined. This has been brought down to an exact 
 science. 
 
 It may seem ridiculous to say that the modern battleship is 
 handled and controlled by a planning department ; neverthe- 
 less this is exactly true. The handling of a battery of large 
 guns in record time and the percentage of hits which ten 
 years ago seemed absolutely impossible, involves the co- 
 operation of a great many different men. The use of highly 
 perfected instruments, combined with the predetermined 
 condition of the atmosphere, variations and speed of the 
 wind, weight and condition of powder, etc., all enter into 
 the problem. In the report of the battle of Santiago, our 
 patriotic and enthusiastic populace marveled at the feats of 
 gunnery and markmanship displayed by the United States 
 battleships. The truth is that today it would be considered 
 a most disgraceful exhibition. Only five per cent of the 
 shots fired at Santiago reached the mark and at compara- 
 tively short ranges. Today, under like conditions, from 
 sixty-five to seventy-five per cent of the shots would reach 
 their marks and at ranges mounting as high as eight or 
 nine thousand yards, and at speeds double those involved 
 in 1898. 
 
 In industrial establishments like comparisons can be made. 
 Investigation will show an immense amount of duplication 
 between departments. Similar operations in like trades will 
 be found to vary widely in method and more widely yet in 
 time consumption. Each journeyman has his own particu- 
 
FREDERIC A. PARKHURST 39 
 
 lar idea of how his work should be prepared, how his tools 
 should be forged or ground, and the condition of the ma- 
 terial with which he works. Thus these elements become 
 great variables because the whim and biased notions of the 
 individual make them so. Standardization of these elements 
 greatly simplifies them. Lack of unity of purpose and ideals 
 results in the individual limiting himself and his chances of 
 advancement as well as limiting that most vital of all in- 
 terests, his earning power. 
 
 Complete co-operation and unity of men, methods and 
 equipment will revolutionize the entire tone and capacity of 
 a plant. Where departmental functions, both as a whole 
 and in detail, do not thoroughly dovetail into a harmonized 
 whole, friction and disruption will exist. It is a well-known 
 fact that we are not today, as a rule, turning out the high- 
 class, all-around mechanics that we did years ago. The 
 reason for this is obvious, although the remedy for it is not 
 so obvious to the layman. There can be no dispute over 
 the fact that scientific management favors the apprentice, 
 handyman and journeyman rather than the firm itself. 
 When organized labor realizes what scientific management 
 actually is, they will find they have much more to gain by 
 co-operation and acceptance of its principles than they can 
 hope to gain by any other method. This statement can be 
 easily proved by investigating the plants working today 
 under its form of management. 
 
 It may be well here to cite a remark made by the superin- 
 tendent of a large and well-established industrial plant in the 
 East. In speaking to one of our noted efficiency engineers 
 of the work which was being accomplished, he said that his 
 firm would be thoroughly satisfied if the only benefit they 
 realized from scientific management was the increased wage 
 and higher moral standing - of their men and the attendant 
 prosperity which would accrue from the change. This state- 
 ment expresses a sentiment which many of the laboring 
 class cannot acknowledge exists on the part of the manu- 
 
40 PRACTICE VS. THEORY 
 
 facturer. Such sentiment is growing, however, and that 
 the fact is not more fully realized by the working man is to 
 be regretted. 
 
 D. Maximum Output in Place of Restricted Output 
 
 Reference has previously been made in this article to the 
 ratio of production under ordinary management to that 
 under scientific management. A great part of this is due, 
 of course, to the change in organization, plant methods, etc. 
 The balance is due to the increased effort and interest ex- 
 hibited by the men, encouraged by a higher average of 
 wage. The natural incentive on the part of the men is lack- 
 ing unless all elements referred to are present. As soon as 
 a betterment of condition has been realized, men are men- 
 tally in a different attitude, and will naturally exert them- 
 selves to earn the additional compensation. 
 
 The demoralizing effect of incorrect rate setting cannot 
 be over emphasized. It tends to promote a disposition to 
 deceive and restrict output. Such a condition naturally 
 breeds discontent and lack of confidence in the management. 
 One must rely largely on the individual's tendency to better 
 his own condition when the opportunity presents itself. 
 When the man learns how to produce his maximum with 
 the prospect of a definite and immediate reward, he finds 
 more pleasure in his work. He is mentally in condition to 
 aspire to do the best that is in him and he develops the 
 natural pride which is more or less latent in everyone. 
 
 E. Development of Each Man to His Greatest 
 Efficiency and Prosperity 
 
 This development comes as a natural result of the pre- 
 ceding elements working in accord. The highly-trained 
 and efficient men receiving a large weekly pay make better 
 citizens than the inefficient and underpaid. They are en- 
 abled to do better for their families, as to housing, clothing, 
 and feeding them, and they are enabled to give their chil- 
 
FREDERIC A. PARKHURST 4 1 
 
 dren better education. There are many children of today 
 denied the education that belongs to them with the result 
 that their entire after-life is handicapped. They are denied 
 the advancement and opportunities which are more and 
 more becoming subject to the individual's mental develop- 
 ment. If the little red schoolhouse is to represent one of 
 our chief constitutional pillars in which we take so much 
 pride, it must be supported by a high standard of American 
 citizenship. What this really means can only be fully ap- 
 preciated by the study of home conditions in a largely for- 
 eign community employing low-g'rade and comparatively 
 ignorant help. The development of a healthy mind and 
 body while young is the only possible mainstay to a cosmo- 
 politan nation such as this United States is growing into. 
 As efficiency will bring about the increase in wages, so it 
 will ultimately result in the decreased cost of the necessities 
 of life. In other words, when we become universally ineffi- 
 cient, both individually and collectively, in all walks of life 
 ranging from the farm to the banking house, our net return 
 per capita is going to be greatly increased. 
 
 We must make radical changes in most of our traditional 
 ways of doing things and we must realize a new standard 
 of ideals. This can only be brought about by a long and 
 painstaking course of hard knocks and experience. Stu- 
 dents of this subject should study it from the practical 
 standpoint and by close detailed investigation of its actual 
 workings. It is not in any sense a subject to be learned 
 trom books, but one which must be learned from close 
 contact with and thorough understanding of the personal 
 element involved. Only in this way can the psychological 
 conditions be fully appreciated and understood. 
 
LECTURE IV 
 "put your house in order" 
 
 Up to the present time only a small minority of foundry- 
 men have taken up scientific management to any great ex- 
 tent. This may, perhaps, be due to the fact that the litera- 
 ture on the subject has been devoted almost exclusively to 
 ether branches of manufacture. The foundry offers fully 
 as large a field for conservation of materials and human 
 energy as does the steel mill, machine shop, printing house 
 or textile mill. 
 
 The foundryman is probably more or less familiar with 
 what is being accomplished through the application of the 
 science of management to trades other than the foundry. 
 He may not realize what the adoption of such principles 
 would mean to his own particular business. In treating this 
 subject the writer confines himself strictly to the practical 
 side of the question based upon his own actual experience, 
 as he believes that the science of management can be most 
 clearly interpreted when so specifically treated. The limits 
 of this paper will not permit much detail, but it is hoped 
 that an interest, commensurate with possible results, may 
 be aroused from the foundryman's point of view. 
 
 The preliminaries necessary to getting "your house in 
 order" measure the results you can obtain. There is much 
 to be considered before the detail of reorganization actually 
 commences. This fact is too often overlooked, and partial 
 or entire failure follows, because the foundation did not 
 contain the essential factors. These prerequisites involve 
 both the owner or stockholders upon the one hand, and the 
 organizing engineer upon the other. They may be consid- 
 ered under the following heads : Owners' responsibilities 
 require : 
 
 A. An intelligent general knowledge of the science of 
 management in theory and in practice. 
 
 42 
 
FREDERIC A. PARKHURST 43 
 
 B. An acquaintance with plants now running under such 
 principles. 
 
 C. A clear perception of their own plant conditions and 
 organization in comparison with the more complex methods 
 based upon the science of management. 
 
 D. An understanding of the radical changes which must 
 be made from the established conventions. 
 
 E. A thorough investigation into the experience and 
 qualifications of the organizing engineer. 
 
 F. An absolute support and recognition of the authority 
 of the organizing engineer, once he assumes his duties. 
 
 G. A complete realization of the importance of the con- 
 trolling factor, "time." 
 
 The organizing engineer's responsibilities require : 
 
 H. A preliminary inquiry into the business, plant, and 
 
 owner's relations to same, as well as their conception of the 
 science of management and their ability to see the installa- 
 tion of such carried to completion. 
 
 /. A report upon necessary changes which shall incor- 
 porate recommendations and the probable improvements to 
 accrue. 
 
 /. A study of the personnel and plotting of the organiza- 
 tion. 
 
 K. A determination upon a method of procedure which 
 shall expedite the reorganization along lines consistent with 
 best permanent results, a minimum cost, and relief of great- 
 est elements of inefficiency as soon as possible. 
 
 L. The establishing of a self-sustaining organization, 
 supported by clearly defined ideals, written instructions, au- 
 tomatic reward for efficient work with the personal factor 
 a paramount one. 
 
 The above items cover the chief factors which demand 
 serious consideration. Let us discuss them individually. 
 
44 PUT YOUR HOUSE IN ORDER 
 
 A. An owner decides in an enthusiastic moment to put 
 his plant under the new science of management. It is not 
 sufficient. Such a decision should only be reached after a 
 knowledge of indisputable facts and much calm reflection. 
 He is making an investment, which, from first to last, will 
 use a goodly amount of money and time. Suppose that he 
 has an established prestige and a profitable business which 
 has been in successful operation for years. He must not 
 jeopardize it for an experiment. Of course, there are many 
 cases where the financial statements of a company's condi- 
 tion show a profit where quite the reverse is true; but for 
 argument's sake, let us assume that a concern is prosperous 
 and has been "making money" for a majority of the years 
 it has been in existence. That fact does not prove that it 
 is going to continue to do so. Present-day business condi- 
 tions are rapidly changing. Our old margins of profits are 
 disappearing. New factors are constantly springing up 
 within the field of competition. Today it is a new tariff 
 schedule, tomorrow a wave of unrest in the Labor world. 
 Furthermore, we are getting more and more wasteful. We 
 have enjoyed too much prosperity. Labor gives us less 
 work per hour, paid for at an ever increasing price. Why ? 
 We have grown too big to watch the small details. We 
 have grown too fast to take the time to train skilled help. 
 We have lost the personal touch which was the small own- 
 er's greatest asset. The destructive result is inefficiency; 
 and it is a germ which continues to grow and multiply until 
 its prevalence ruins a company. Only drastic measures will 
 eliminate it. 
 
 The owner must consider his problem dispassionately. He 
 is facing the inevitable if his competitors grasp at the solu- 
 tion first. What is the answer? It can be found by those 
 methods which develop the personal touch, grasp of detail, 
 control of materials, accurate knowledge of all the variables 
 affecting any business and maximum prosperity through 
 high wages for the rank and file. 
 
FREDERIC A. PARKHURST 45 
 
 B. That this answer has been proved can be established 
 by a visit to many plants running under the science of man- 
 agement. There are enough of them to afford ample op- 
 portunity for the study of its workings under prevailing 
 manufacturing conditions. They are old, established plants, 
 prosperous before the installation of such methods, bur 
 doubly so now. That does not necessarily mean a doubling 
 of the net profits, though such is true in some cases. An 
 increased prosperity is realized through several factors : 
 
 (a) Greater profits. 
 
 (b) Satisfied customers, hence more staple and steady 
 source of orders. 
 
 (c) Less nomadic and better satisfied labor due to higher 
 wages and better' shop conditions which results in an absence 
 of labor troubles. 
 
 (d) Ability to safely and intelligently meet fair competi- 
 tion through efficient manufacturing methods and accurate 
 cost records. 
 
 It is hoped that each person interested will verify for him- 
 self the conditions existing in plants running under scien- 
 tific management. A day spent in each, of several so or- 
 ganized, would be of advantage to any owner. Such firms 
 rather invite a study of their conditions. The owner con- 
 templating the adoption of methods founded upon the prin- 
 ciples of scientific management, owes to himself and his 
 associates all the advantages that can come from an intelli- 
 gent study of these methods in actual operation. 
 
 C. That you may compare the ordinary foundry with its 
 possibilities under correct methods, let me draw you a pic- 
 ture of a foundry as it actually appears under such methods. 
 The first impression one receives is that no one, from the 
 office boy to the laborer, seems in a hurry, yet each is busy. 
 This is quite contrary to imagined conditions. Though 
 there is no apparent hurry, each one has plenty to do and 
 everything is moving along at a high speed. The individual 
 has specific duties, and his written instructions cover every 
 
46 PUT YOUR HOUSE IN ORDER 
 
 detail of his work. He makes few false moves. He is paid 
 more than he could get in any shop run under old lines. 
 
 There are operations being performed at an unheard of 
 speed. For example, here is a man making 66o*cor5es per 
 day when formerly 1 50 was a day's production. There are 
 90 crank cases a day from one pattern that the best foundry 
 and pattern shop talent said could not exceed 40. Castings 
 are poured under pyrometer control, material taken to and 
 from the men. One sees specially trained men, not molders, 
 pouring difficult molds successfully. 
 
 The time study men are making analyses of operations 
 on a job and timing each with a stop watch. Do the men 
 object? They did at first, but they receive a bonus of 25 
 per cent of their wages while they are being timed and they 
 realize that when the correct time has been established they 
 make more money on that job because of the bonus attached. 
 
 Now let us look at the indirect elements which are re- 
 sponsible for this production and the smooth running of 
 the shop. Chief of these is the planning room, or "brains 
 of the shop." The several important functional men em- 
 ployed through and about the shop are : 
 
 1. Production clerk. 
 
 2. Route clerk. 
 
 3. Order-of-work clerk. 
 
 4. Schedule clerk. 
 
 5. Time study foreman. 
 
 6. Material foreman. 
 
 The planning room organization, combined with their 
 shop representatives, remove much of the detail that is or- 
 dinarily delegated to shop foremen and gang bosses. The 
 first mentioned few men are specially trained to several 
 branches of the work necessary to the official operation of 
 a plant. They are all specialists. Their duties are carefully 
 defined and responsibility for every detail is definitely 
 placed. 
 
FREDERIC A. PARKHURST 47 
 
 Briefly, the work of the planning room staff is as follows : 
 
 1. The production clerk is the head of the planning 
 room. He is held responsible for those under him and their 
 work. He sees to the proper distribution of charges of all 
 labor routed to the shops. He supervises the ordering of 
 material; also cost and stores records and other general 
 details. 
 
 2. The route clerk routes all work to the shops by means 
 of work orders and distributes this work to the proper 
 benches, machines or men by means of the planning board, 
 a duplicate of part of which is in each department. He does 
 not, however, have anything to do with the "order of work" 
 or of the records of its condition in process. 
 
 3. The order-of-work clerk is responsible for the cor- 
 rect processing of all work in the shops and the maintenance 
 of shipping date schedules. He plans the order in which 
 operations at each bench or machine are performed so as to 
 finally bring the component parts of the work for each order 
 through on a given date. 
 
 4. The schedule clerk keeps the process schedule, issues 
 the daily schedule and job tally sheets to the shop, and in 
 conjunction with the order-of-work clerk checks and follows 
 up details of work in process. These two men also control 
 the orders for overtime work that may from time to time 
 be necessary to maintain shipping promises. 
 
 5. The shop methods are controlled by the time study 
 foreman. He is responsible for the time study work. This 
 includes the analysis of all operations, the fixing of 
 times, computation of bonus and the instruction of the 
 employees until they can meet the bonus production 
 called for. He is also responsible for the instruction cards. 
 These cards are the final detail record of the standardized 
 practice as finally determined after the study of conditions 
 and completion of time studies. 
 
 Part of the times are covered on the standard time sched- 
 ule of sub-elemental operation times. These times apply 
 to all jobs. Only a few of the operations in a new job have 
 
48 PUT YOUR HOUSE IN ORDER 
 
 to be timed. The bonus for a given production is obtained 
 directly from the author's standard differential bonus sheets. 
 These sheets show the bonus figures for any one of fifteen 
 classes of labor for any production. 
 
 6. The material foreman, under orders from the planning 
 room, or through the routing specified on the work orders, 
 controls the movement of all material in process. This ap- 
 plies to everything. The workmen or their helpers are not 
 allowed to go after the material they are to use. Neither 
 are they allowed to deliver it to the next destination after 
 they are through with their part of the work. In a foundry 
 this applies to delivery of sand, chills, wire, nails, core 
 plates, flasks, cores, metal (pouring gang), movement of 
 castings, etc. In fact, all material to be moved is in charge 
 of the material foreman. This applies from the time it is 
 ready to move the first time until it has reached its final 
 destination. 
 
 D. It can be readily seen that the division of responsibi- 
 lities as above outlined must tend to much greater plant 
 efficiency of operation than can be realized by holding each 
 foreman responsible for his part of all these things. The 
 development of an organization as above outlined must of 
 course impress the older regime as more or less radical. 
 This is obvious. At the same time, the method of procedure 
 affects the smoothness of operations during the period of 
 transition. The responsibility for this is up to the organiz- 
 ing engineer. 
 
 E. We come now to the selection of a competent en- 
 gineer, expert in the use of methods based upon the prin- 
 ciples of the science of management. He should be a man 
 of varied shop experience and have a thorough knowledge 
 of business. He must know men and be able to appreciate 
 the psychological influence in dealing with them. The en- 
 tire problem is one of education ; and success can only be 
 obtained through a capacity which will control the ever- 
 varying human factor while the new order is being estab- 
 lished. 
 
FREDERIC A. PARKHURST 49 
 
 F. The successful issue lies with the engineer, but the 
 management must support his authority to the limit. The 
 owner cannot be too careful in the choice of an expert, but 
 once a choice has been made, stand firmly by him. The 
 moral effect of this attitude will remove half the obstacles 
 ordinarily met. 
 
 G. The element of time is the essential agent which pro- 
 duces results. The length of time required to put any given 
 plant on a sound basis of efficiency can be but roughly esti- 
 mated. Each plant offers its own problems and each prob- 
 lem must be met and disposed of according to varying cir- 
 cumstances. Many indirect influences have a heavy bearing 
 upon the situation. 
 
 As a general proposition, the small plant will require at 
 least between two and three years. The larger and more 
 complex the plant, a correspondingly longer time is neces- 
 sary. What three years would do for one concern would 
 take six to do in another. The tendency is too often to rush 
 the work. Many failures have resulted from just this cause. 
 Owners contemplating the installation of the new methods 
 should bear this in mind and profit by the experience of 
 those who have been successful in their results. Build the 
 foundations slowly if need be, but absolutely surely. 
 
 H. We have contemplated the chief points to be consid- 
 ered by the owner. The organizing engineer assumes the 
 larger responsibility when he undertakes the successful re- 
 organization of any plant. He should make a careful in- 
 vestigation of the existing executive management, the offi- 
 cial and shop personnel, the physical plant and methods. It 
 is not safe to assume that because a plant is not run upon 
 recognized scientific principles that it is inefficient. If this 
 fact is overlooked, the organizer may find a condition where 
 his services are not needed to make material improvements. 
 
 There are some lines of business which, on account of 
 their simplicity or peculiarities, can be little improved. In 
 any case, conservative, sane and explicit information as to 
 the possibilities should be given. The organizer must be 
 
50 PUT YOUR HOUSE IN ORDER 
 
 sure that the principals thoroughly understand all that is 
 involved and are in a position to see the changes carried out. 
 
 /. When a complete understanding has been reached with 
 the owners, a preliminary report should be submitted, deal- 
 ing with the unusual conditions or glaring inefficiencies. 
 Immediate attention should be directed to such and a remedy 
 for same found at once. By prompt recognition of such 
 details, not only may large savings begin, but they may 
 make the installation of the new methods pay for their 
 own expense. 
 
 This item of cost is in many cases an important one. A 
 realization of the fact by the engineer often enables him to 
 carry on the work on a scale which will not prove a burden 
 to his client. In cases where the ultimate savings are doubt- 
 ful, in consideration of the cost of the change, the facts 
 should be so clearly stated that a misunderstanding on the 
 part of the client would be impossible. Such cases will be 
 rare. In most cases the final, direct and indirect savings 
 will be many times the cost of installing the modern 
 methods. Furthermore, the gain is a permanent one and 
 the return will be felt for years. 
 
 An efficient and permanent organization is as much if 
 not decidedly more of an asset than so much plant. An- 
 drew Carnegie once said that could he retain his organiza- 
 tion, the loss of his plants would not be fatal; he could in 
 a short time replace the latter and outstrip his competitors. 
 
 /. The next step for the engineer is to thoroughly study 
 the available human material and plan his organization to 
 use it. In a plant of any size there is enough material to 
 fill all requirements. The men will have to be trained, 
 tried out, shifted and tried again. It will be the exception 
 who is not finally placed satisfactorily. A great asset of 
 the old employee is that he does not need to be taught the 
 details of the particular business. Other requisites being at 
 all equal, he is the better choice. 
 
 The organizer must exercise extreme care, patience and 
 tact in establishing the new line-up. He has to contend with 
 
FREDERIC A. PARKHURST 5 I 
 
 petty jealousies, age, term of services and similar obvious 
 conditions. One of the most difficult situations is the neces- 
 sity for changing the incumbents of more important posi- 
 tions. This is especially so in cases where he may have to 
 put a man into a place of less importance, but which he is 
 pre-eminently fitted to fill. 
 
 There is an old saying, "A new broom sweeps clean," but 
 the writer has never found it necessary to prove the adage. 
 There are cases where one is obliged to remove an old em- 
 ployee, but it is the exception rather than the rule — if the 
 reorganization is carefully planned and built up. 
 
 Just here a word about the organization record might 
 not be amiss. The record contains a complete set of all 
 instructions covering in detail the duties of each member 
 of the organization. A new incumbent in any position needs 
 but to study them to become thoroughly familiar with his 
 duties. Too much stress cannot be laid upon the importance 
 of these records. They assure the maintenance of details 
 and routine long after the organizer has completed his 
 work. They are an asset to the firm because they show how 
 and why each detail is handled in a certain way. No man 
 needs miss promotion because no one else can step into his 
 job. Neither can an employee "corner" his services because 
 he alone knows his particular part of the work and so thinks 
 he is indispensable. Such a man cannot be dispensed with 
 too soon. This record is for reference of all department 
 heads and they are invited to use it freely to familiarize 
 themselves with the new order as the work progresses. 
 
 K. The order of procedure in working out detail in 
 methods depends wholly on the local plant conditions. 
 There can be no hard and fast rule. Each problem must be 
 met in a different way. No two plants are suffering from 
 exactly the same measure of the same elements of ineffi- 
 ciency. One plant, though very inefficient, may have a 
 highly developed stores system. Another may have no 
 stores system at all. One plant may know its costs and 
 another not. A congestion of orders may be a great handi- 
 
52 PUT YOUR HOUSE IN ORDER 
 
 cap and again the difficulty lies in an inability to get ma- 
 terial when wanted. All these combinations have to be 
 treated as they occur. Each kind of business offers its own 
 likely chances for inefficiency. One of the greatest elements 
 in any business is the labor proposition. 
 
 No matter how good your plant, how economical your 
 furnaces, how much material you may have, the man is 
 what counts. Plant, furnaces, materials! Absolutely use- 
 less without the human agency. As stated before, labor is 
 giving us less work per hour for a steadily increasing wage. 
 This condition is going to grow worse for some time to 
 come. The reasons are too well known to need discussion. 
 We must consider the remedy. 
 
 L. "Put your house in order." Build up an adequate and 
 self-sustaining organization. No iron-clad system and 
 fixed detail of method can be generally applied. The true 
 science of management lies not in a definite set of forms or 
 ?. standard line of procedure. 
 
 The fundamental principles remain constant. The sys- 
 tem, forms, etc., are but a means to an end. The entire 
 combination, to be effective, must realize certain results. 
 .In addition to a self-sustaining organization supported by 
 written instructions, subject to revision to suit ever-chang- 
 ing conditions, we must automatically reward each employee 
 for work well and efficiently performed. He must not be 
 left to his own devices. All the elements of his work must 
 be under absolute control. To do this the personal factor 
 must be recognized as paramount. This condition can be 
 realized by fair and competent management, and the co- 
 operation of the rank and file will be obtained permanently. 
 Give a generous bonus in addition to the day wage, for a 
 good day's work well done. You will have a better satisfied 
 and higher standard of employee. Your house will be in 
 order. 
 
LECTURE V 
 
 FIRST ESSENTIALS 
 
 1-A. Preliminary Investigation. 
 1-B. The Form of Organization. 
 1-C. The Organization Record. 
 
 This lecture will discuss the above subjects, following closely 
 Chapter I of the text. Examples of experiences with other plants will 
 also be brought in to emphasize important points. 
 
 53 
 
LECTURE VI 
 
 DEPARTMENTAL FUNCTIONS 
 
 2-A. Functions of the Sales Department and Counting Room. 
 2-B. Functions of the Engineering Room. 
 2-C. Functions of the Drafting Room. 
 
 This lecture will treat of the above subjects, closely following 
 Chapter II of the text. 
 
 54 
 
LECTURE VII 
 
 DRAFTING ROOM METHODS 
 
 VII. Drafting Room Instructions. 
 
 VIII. Instructions for Drawing and Sketch Indexes. 
 XXXI. Shop and Drawing Boys' Instructions. 
 
 This lecture will discuss the several instructions referred to above, 
 which instructions form part of the Appendix of the text. The object 
 of reviewing instructions is to enable the student to understand the 
 way in which instructions are drawn up in detail to cover the functions 
 of certain departments. 
 
 55 
 
LECTURE VIII 
 
 PLANNING ROOM 
 
 3-A. Planning Department. 
 
 3-B. Duties of the Superintendent. 
 
 3-C. Functions of the Planning Department. 
 
 3-D. The Production Clerk. 
 
 The above subjects will be discussed, following closely part of 
 Chapter III of the text. 
 
 56 
 
LECTURE IX 
 
 PLANNING ROOM INSTRUCTIONS 
 
 X. Production Clerk's Instructions. 
 XL Planning Department Monthly Report. 
 
 The above instructions will be covered in detail, following the 
 Appendix of the text for the instructions mentioned. 
 
 57 
 
LECTURE X 
 
 planning room (continued) 
 
 3-E. The Shop Engineer. 
 
 3-F. The Stores Clerk. 
 
 3-G. The Cost Clerk. 
 
 3-H. The Route Clerk. 
 
 3- 1 . The Order-of-Work Clerk. 
 
 3- J. The Shipping Clerk. 
 
 3-K. The Receiving Clerk. 
 
 3-L. The Time Clerk. 
 
 3-M. The Schedule Clerk. 
 
 The above subjects will be discussed in continuance of the de- 
 scription of the detail work handled by different functionaries located 
 in the planning room, or working in conjunction with it. This lecture 
 will follow that part of Chapter III of text indicated above. 
 
 58 
 
LECTURE XI 
 
 planning room ( continued) 
 
 3-N. The Factory Mail System. 
 
 3-0. The Time Boy. 
 
 3-P. The Inspector. 
 
 3-Q. The Stores Keeper. 
 
 3-R. The Move Material Boss. 
 
 XXXI. Inspector's Instructions. 
 
 This lecture will discuss the above subjects, completing Chapter 
 III of the text not already covered. This lecture will also include a 
 discussion of Inspector's Instructions XXXI, forming part of Appen- 
 dix of the text, page 281. 
 
 59 
 
LECTURE XII 
 
 ROUTING AND CONTROL OF WORK 
 
 4-A. The Routing of Work Through the Shops. 
 4-B. Symbols (For further reference see "Symbols" published by 
 the author in early 1917). 
 
 The above subjects will be discussed, following closely part of 
 Chapter IV of the text. 
 
 60 
 
LECTURE XIII 
 
 ROUTING AND CONTROL OF WORK (continued) 
 
 4-C. The Functions of the Material Boss. 
 
 4-D. The Functions of the Order-of-Work Clerk. 
 
 4-E. Gang Bosses. 
 
 4-F. The Speed Boss, 
 
 This lecture will complete the discussion of the remaining part of 
 Chapter IV of the text. 
 
 61 
 
LECTURE XIV 
 
 ROUTING AND CONTROL OF WORK (continued) 
 
 XIV. Anticipating Requirements both as to Rough Material, 
 
 Machining Operations and Assembly. 
 XV. Order-of-Work Clerk's Instructions. 
 XVI. Movement of Batches in Installments. 
 XVII. Route Rack Signals. 
 
 This lecture will be confined to discussing the details of the in- 
 structions mentioned above, forming part of the Appendix of the text. 
 
 62 
 
LECTURE XV 
 
 STORES, LABOR AND COST 
 
 5-A. The Creation of a Stores. Department, the Methods of 
 Classifying and Housing all Material (Rough or Fin- 
 ished) not in Process of Manufacture, and the Order- 
 ing of Stores either to be Purchased Elsewhere or to 
 be Made in the Shops. 
 
 5-B. The Perpetual Inventory or Stores Ledger, showing 
 how it is kept up to date and checked to always agree 
 with the Actual Stock. 
 
 The above subjects will be discussed following the outline as given 
 in part of Chapter V of the text. The student is referred to the 
 author's "Predetermination of Prices" for a further insight into the 
 controlling elements necessary in connection with costing. 
 
 63 
 
LECTURE XVI 
 
 stores, labor and cost (continued) 
 
 S-C. The Means used to get Correct Returns for all Times 
 expended on work, whether as expense or as productive 
 Labor, including Operation Times. 
 
 5-D. The Combined Cost and Route Sheet, and the Methods 
 Employed to Distribute and Collate all Material and 
 Labor Charges as well as Overhead Expense. 
 
 This lecture will complete the discussion of this subject as out- 
 lined in Chapter V of the text. 
 
 64 
 
LECTURE XVII 
 
 INDIRECT COSTS 
 
 4- A. Expense Symbols. 
 
 4-B. Expense Distribution. 
 
 4-C. Distribution of Burden. 
 
 4-D. Erroneous Methods of Distribution. 
 
 4-E. Differential Process Rate Method. 
 
 4-F. Undistributed Burden. 
 
 The above subjects are treated in detail and reprinted complete from 
 Chapter IV of the author's "Predetermination of Prices." Figures re- 
 ferred to have been omitted and the student is referred to the above 
 mentioned book for further information. 
 
 INDIRECT EXPENSE 
 
 The third element of true cost presents a more intricate 
 problem to solve, because the items of indirect costs are 
 less easy to determine and control than the direct items 
 of labor and material. The direct items are incurred by 
 a specific job and charged to that job, but the indirect 
 items are incidental to' all jobs as a whole, since they cover 
 administrative, financial, sales and operating outlay. The 
 majority of the indirect expense must remain nearly con- 
 stant irrespective of the volume of business. A small part 
 of the expense is a variable and can be controlled as neces- 
 sity arises. To separate the variable or partly controllable 
 factors from the more constant factors, it is essential to 
 make a comprehensive analysis of all indirect expense. 
 When such an analysis has been made the need of adopt- 
 ing a differential process rate or differential burden method 
 of distribution will be obvious. 
 
 4-A. Expense Symbols 
 
 A typical expense distribution chart is shown in Fig. 
 1 6. The figure shows a chart somewhat amplified and 
 more complete than the ordinary business would require. 
 The amplification is purposely carried out to make the 
 application more general and to better illustrate the method. 
 
 65 
 
66 EXPENSE SYMBOLS 
 
 For convenience, a typical list of X accounts, showing the 
 subjects they cover, is given. The following X symbols 
 should only be used in combination with the plant symbol 
 A, B, C, etc., or a department symbol 1A to 1Z. (See 
 Fig- i 5-) 
 
 XI. Salary of managers, superintendents, department 
 heads. 
 
 X2. Clerical wages. 
 
 X3. Other labor. 
 
 X4. Supplies. 
 
 X5. Maintenance of buildings and structures. 
 
 X6. Maintenance of equipment, furniture and fixtures. 
 
 Subdivided by machines, etc. (See Table I.) 
 XT. Care of plant (AX7) or department indicated. 
 X8. Miscellaneous expense, not supplies. 
 X9. Miscellaneous small tool expense. 
 X10. Experimental and test expense. 
 
 Xll. Fuel. 
 
 X12. Maintenance of electrical equipment. 
 X13. Maintenance of air compressors and piping. 
 X14. Maintenance of boiler, stacks and accessories. 
 X15. Maintenance of steam and water piping outside of 
 boiler and engine room. 
 
 X16. Maintenance of oil pumps. 
 
 X17. Maintenance of heating system. 
 
 X18. Advertising. 
 
 X19. Traveling expense. 
 
 X20. Maintenance of motor cars and trucks. 
 
 X21. Pattern and flask expense. 
 X22. Sand. 
 
 X23. Injuries to employees. 
 X24. Acetylene expense. 
 X25. Inventory expense. 
 
FREDERIC A. PARKHURST 67 
 
 X26. Crucibles and pots. 
 
 X27. Replacement of stock chills. 
 
 X28. Electricity purchased outside. 
 
 X29. Gas. 
 
 X30. Freight and express. 
 
 X31. Defective material and workmanship, and main- 
 
 tenace of contracts. 
 X32. All bad work expense not belonging- to X31. 
 X33. To X49 inclusive may be used to cover any specific 
 
 needs of a business. 
 X51. Legal expense. 
 X52. Insurance. 
 X53. Taxes. 
 X54. Depreciation. 
 X55. Interest. 
 X56. Oxidation. 
 
 Each of 
 these groups 
 have numbered 
 items similar 
 to XI to X56 
 inclusive. 
 
 General Expense 
 
 GAX. General administrative expense. " 
 GBX. General sales expense. 
 GCX. General comptrollers and fi- 
 nance expense. 
 GLX. General laboratory expense. 
 GOX. General operating expense. 
 GPX. General purchasing expense. 
 
 It should be noted that X32, bad work expense, may 
 include bad accounts under GCX32 and unearned burden 
 under GBX32. This list is only typical and suggestive. 
 The division of the burden should be sufficiently complete 
 to cover all of the divisions of expenses desired. Always 
 use one sequence of symbols. To properly summarize ex- 
 pense, we must be able to show the different symbols at 
 the left of the sheet and in each department column to the 
 right interpolate figures that apply to each department and 
 for each expense symbol. Each X symbol means the same 
 thing all the way across the sheet. Many departments will 
 use only a few of these numbers, while others will use per- 
 haps half or more. 
 
68 DISTRIBUTION OF BURDEN 
 
 4-B Expense Distribution 
 
 Cost sheets are opened for each department. Each col- 
 umn of each department's set of sheets is devoted to the 
 X symbol used by that department. The end of the month 
 the sum of these sheets drawn off by X numbers is posted 
 to the indirect expense symbol summary sheet illustrated 
 in Fig. 15. 
 
 The vertical footings of the indirect expense symbol sum- 
 mary sheet represent the total indirect expenditures for each 
 department for the month. The cross additions of each 
 X account represents the total expense for each X sym- 
 bol for each month. The vertical footing of the extreme 
 right-hand total column must agree with the cross-footing 
 of the totals at the bottom of the sheet. 
 
 From the analysis sheet above described (Fig. 15) the 
 total departmental expense for each period, weekly, monthly, 
 quarterly or yearly, is determined. It is not sufficient, how- 
 ever, to prorate these departmental total expenses by means 
 of a burden without separating or further distributing item 
 X6 (Maintenance of Equipment). It is possible that in cer- 
 tain kinds of business or in a plant having but little machin- 
 ery, or perhaps apparatus of but one size or type and costing 
 approximately the same, the sum total of the departmental 
 expenses would give a distribution close enough. This con- 
 dition does not ordinarily obtain, however, so it becomes 
 necessary to separate the equipment burden, and recognize 
 the wide range in the cost of operation and expense incident 
 to the various tools and apparatus. 
 
 Each piece of machinery, equipment or work point should 
 have its individual burden or differential process rate deter- 
 mined as in 4-D. 
 
 4-C. Distribution of Burden 
 
 Table I illustrates equipment expense summarized by 
 months and covering one year. The amounts opposite each 
 machine symbol represent the total monthly equipment 
 charge made up of the items listed in the preceding para- 
 graph, plus X6 expense charges. These totals, divided by 
 
FREDERIC A. PARKHURST 69 
 
 the nominal number of hours for each machine, represent 
 the machine rate or burden. This nominal rate is determined 
 by assuming that each machine should operate on a fair aver- 
 age basis of so many hours per month or year. The class of 
 business, of course, governs how this is determined. Let us 
 take for example a plant running one shift of 10 hours, 
 based on 300 working days per year. The normal full 
 working capacity would then be equivalent to 3000 machine 
 hours per year per machine. It cannot, of course, be fig- 
 ured that on an average each machine will work the full 
 3000 hours. The records of the business will indicate what 
 per cent is a fair figure to use, in determining how many 
 hours to divide for each month into the total machine ex- 
 pense, to determine the machine burden per hour. The 
 same basis is used where a plant runs 24 hours divided into 
 several shifts. 
 
 On a basis of 3000 hours maximum per year, or 250 
 hours per month, we can assume for illustration that each 
 machine should average an operating time of 80% or 200 
 hours per month. This 200 hours divided into the total 
 machine expense (see 4-B) represents the machine hourly 
 burden. 
 
 It may be well to mention at this point that in the event 
 any or all of the machines are working their full allotted 
 time, the actual direct hours can be divided into the expense 
 for that period. Some firms make no allowance for less 
 than 100% capacity, but use the full number of yearly hours 
 as a basis. On the other hand, if the machines operate 
 less than the fair average amount of time, we cannot use a 
 higher burden by dividing each month's cost by a greatly 
 reduced number of hours. If this is clone, the result will 
 be an excessive burden per hour. It is not necessary, of 
 course, to always figure the 8o>% or full running time used 
 in the example above. Some classes of equipment or some 
 kinds of business might make it desirable to use a some- 
 what smaller percentage, and vice versa. In the event, 
 however, that only half of the accepted percentage was run 
 on a machine, or a lot of machines for a period, it would 
 
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FREDERIC A. PARKHURST 
 
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FREDERIC A. PARK HURST 
 
 73 
 
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 x6 ANALYSIS 
 
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FREDERIC A. PARKHURST 75 
 
 not be fair to charge against cost, double the amount of 
 burden. The disposition of undistributed (or unearned) 
 burden is discussed in 4-F. 
 
 The limiting of the machine hour burden or other burden 
 rates to a maximum amount, which must not be exceeded, 
 applies equally to departmental or other burden distribution. 
 In the event that a plant is running very slack and pro- 
 ducing large amounts of stock, the use of the actual burden, 
 for low capacity, would result in an excessive cost and a 
 false inventory value. It is not fair or equitable to use fig- 
 ures so obtained as part of the inventory. If the undis- 
 tributed burden is of such proportion that it offsets the 
 profit on the amount of work done for the period, it is en- 
 tirely a general business loss and one which the writer con- 
 tends should ordinarily be shown as a sales expense. In 
 making such a statement, it is realized that general condi- 
 tions would have to be taken into consideration and allow- 
 ances made for "seasonable" variation in sales, spirit of the 
 times, etc. 
 
 When the burden chargeable to machines has been de- 
 ducted, the balance of the departmental expense must be 
 distributed on a basis of so much per direct hour. This 
 is determined by dividing the direct hours departmentally, 
 as shown by the operating statement, into the indirect ex- 
 pense, after substracting that part prorated as a process rate 
 or pound burden (as some foundry departments should be 
 prorated). These burdens, except the pound burden, should 
 all be distributed on a productive hour basis. 
 
 Occasionally one will find departments which will require 
 a still different basis of prorating. For example, in a foun- 
 dry where certain of the department expenses and costs of 
 operation are directly in proportion to the weight handled, 
 such departmental expenses must be prorated on the pound 
 burden basis. Other foundry indirect expense, however, 
 should be prorated at so much per direct hour. A complete 
 operation anlysis makes such facts evident at a glance, and 
 the indirect expense can be separated both by items and 
 departments, so as to isolate those which must be distributed 
 
y6 DISTRIBUTION OF BURDEN 
 
 by one method from those which must be distributed b; 
 another method. It is axiomatic that no one method can 
 give correct results in a business of any size, where one has 
 a great variety of product or has several departments and 
 a variety of equipment. 
 
 After the indirect expense distribution has been worked 
 out to show the actual amount of money for each depart- 
 ment prorated against each order group, these amounts 
 should be posted to the operating statement (Fig. 16). 
 Each order group should also show departmentally the bur- 
 den rate figured for the period. All of these figures appear 
 in the third section of the operating statement entitled "In- 
 direct Expenses." Fig. 16 does not show the various rates 
 of burdens for want of space. It should be understood, 
 however, that the differential process rate is the correct 
 method to use. Under each order group there may, and 
 probably will be, several burden rates. These should be 
 expressed as departmental hourly burden, or process rate 
 burden, or pound burden rate, or possibly a general expense 
 burden rate and a sales expense burden rate. Ordinarily 
 the writer believes in including the general and sales ex- 
 pense in the total departmental burden, so as to have as few 
 rates as possible. All of the several hourly burden rates 
 may be added to the machine burden rate, or process rate, 
 to get one total hourly burden rate for each machine or 
 process point. Any pound or piece burden rate would, of 
 course, remain separate. 
 
 In distributing burden, the orders (F) covering better- 
 ments and additions to factory, land, etc., and the orders 
 (P) covering additions and betterment to plant equipment 
 each carry their proportion of burden. It should be borne 
 in mind that work on these order groups should be con- 
 sidered productive, or direct labor, as far as the depart- 
 ments are concerned that do the work. They should carry 
 their burden just as though they were made on an order 
 chargeable to a customer. It is sometimes desirable, how- 
 ever, to use a burden rate which does not include the mini- 
 mum profit factor for the F and P orders, so as to hold 
 
FREDERIC A. PARKHURST JJ 
 
 down the increase in the property account and not show an 
 excessive asset. After deducting any burden so prorated to 
 the F and P orders, the remainder of the departmental 
 burden is apportioned to the main order groups. 
 
 When the amounts covering the indirect expense pro- 
 rated to the various order groups, departmentally, have been 
 distributed, these total amounts are carried out to the A, 
 B, etc. order totals column (see Fig. 16) to the right; and 
 into the grand total column at the extreme right of the 
 operating statement. The grand total indirect expense 
 transposed into the bracket at the right completes the second 
 and last main item to compose true costs. The sum of the 
 direct cost plus the sum of indirect costs equals true costs, 
 and balance with the control accounts indentified by depart- 
 ment symbols. To summarize : The department expense 
 sheet, with a column devoted to each expense symbol affect- 
 ing that department, gives the summary per month. This 
 summary is prepared so as to get departmental, machine, 
 process and pound burden amounts of expense so that the 
 differential process rates can be determined for that period. 
 To repeat, for emphasis, these rates must be determined 
 by using as a basis a fair number of productive hours for 
 the period based on the plant conditions. Rates beyond this 
 fair average must not be used if excessive, thus giving a 
 false cost. An undistributed burden should be considered 
 a sales department expense. The sum of the different de- 
 partmental burdens represent one total amount (in dollars 
 and cents) for the period. This amount is itemized by 
 order groups and appears as a summarized distribution on 
 the operating statement (Fig. 16). 
 
 4-D. Erroneous Methods of Distributing Indirect 
 Expense 
 
 The most common methods of distributing burden are 
 by percentage, by flat hourly rate or by straight pound 
 rate as used in the average foundry. The percentage basis 
 of distribution is perhaps one of the most common, and 
 also one of the most unreliable methods possible to con- 
 ceive. For argument's sake, assume that a burden fixed on 
 
78 DISTRIBUTING INDIRECT EXPENSE 
 
 the percentage basis is 100% of the direct wages, then a 
 distribution of 6 cents per hour burden to a 6-cent appren- 
 tice is made, a burden of 20 cents an hour to a 20-cent man 
 or 40 cents an hour to a 40-cent man. The true facts of 
 the case show that it costs fully as much for floor space, 
 heat, light and superintending for the apprentice as for the 
 20-cent, 30-cent or 40-cent man. The cost of supervision, 
 wear and tear on tools and other equipment is probably 
 more in fact for the low-priced help than it is for the 
 higher paid journeyman or skilled workman. On a per- 
 centage basis, the apprentice boy's work bears only a small 
 part of the burden which he actually incurs, while the 40 
 cents an hour skilled workman's job is being charged with 
 more of the burden than he incurs. The percentage basis 
 of distribution takes no cognizance of the machine hour 
 rate, which distributes a few cents an hour on an inexpen- 
 sive tool and possibly a dollar or two on large tools. With 
 this variable undivided, the percentage distribution is fur- 
 ther thrown out of balance, so that any figures obtained by 
 the use of percentages are most unreliable. 
 
 To further illustrate the argument, assume that a burden 
 of 100% is what the percentage figures show, which means 
 that for the various rates mentioned, the following cost, 
 exclusive of material, exists. 
 
 $.06 per Hour $.30 per Hour $.40 per Hour 
 
 10 hours $.60 $3.00 $4.00 
 
 100% burden 60 3.00 4.00 
 
 Total $1.20 $6.00 $8.00 
 
 Another erroneous method of distribution is the blanket 
 rate based on productive hours. Here is an error not so 
 glaring as the percentage basis, but one which also fails to 
 take into consideration the variance of the burden due to 
 the different equipment involved. Neither does it take into 
 consideration the fact that part of the burden should be 
 distributed on one basis and part on another basis. Using 
 
FREDERIC A. PARKHURST 79 
 
 the same examples as given above, but prorating at say 30 
 cents per hour burden, the result shows below. 
 
 $.06 per Hour $.30 per Hour $.40 per Hour 
 
 10 hours $.60 $3.00 $4.00 
 
 Burden at $.30 3.00 3.00 3.00 
 
 Total $3.60 $6.00 $7.00 
 
 The wide difference in the costs, exclusive of material, 
 shown by the two preceding sets of examples illustrates 
 that there is something radically wrong with one method, 
 at least. Now let us assume the three conditions under the 
 method of distribution, being described herein. A correct 
 departmental burden and a machine hourly burden have 
 been determined by analysis. Assume further that the de- 
 partmental burden is 12 cents per hour and that the work 
 is being done on a machine with a burden of 40 cents per 
 hour, a cost comparison would stand as follows : 
 
 
 $.06 per Man 
 
 $.30 per Man 
 
 $.40 per Man 
 
 10 hours labor 
 
 $ .60 
 
 $3.00 
 4.00 
 1.20 
 
 $4.00 
 
 10 hours machine rate. 
 10 hours dept. rate 
 
 4.00 
 
 1.20 
 
 4.00 
 1.20 
 
 Total 
 
 $5.80 
 
 $8.20 
 
 $9.20 
 
 In considering the last problem, it should be borne in 
 mind that the department is operating while the job is 
 being processed ; likewise, the machine time shows that the 
 departmental and machine rate for the same number of 
 hours spent on that job must of necessity be the same 
 whether the job is done by a 6-cent, 30-cent or 40-cent an 
 hour man. Of course, under the best type of manage- 
 ment, a 40-cent man is not put on a 6-cents-an-hour job, or 
 vice versa, under usual conditions. Any concern, however, 
 employing a large number of men is likely to find during 
 periods of business depression that it is necessary to use 
 a higher priced man on work requiring less skilled labor, in 
 
80 DISTRIBUTING INDIRECT EXPENSE 
 
 order to keep the man employed. In many such cases the 
 labor charged to the job is charged at the rate which the 
 grade of work demands. The balance of the man's rate is 
 charged to the department. 
 
 In contrast to the necessity quoted, the opposite one 
 sometimes arises, where lack of labor of a sufficiently skilled 
 type makes it imperative to use, say, a 30-cent man on a 
 grade of work ordinarily requiring a 40-cent man. In such 
 cases the job is charged with labor at the rate of 30 cents 
 and the man, while working on that job, receives a bonus 
 charted from the class in which the 40-cent man would 
 stand, thus receiving added remuneration because of the 
 higher class work. When the man goes back to his usual 
 grade, his bonus returns to its usual class. Neither diver- 
 gence from the ideal point of standardization is desired, but 
 may prove valuable in keeping intact an organization under 
 trying conditions. 
 
 To further illustrate the discrepancy which will be seen 
 between costs figured with a differential burden divided to 
 obtain true results, let us assume a job taking 10 hours' 
 labor and done on different machines with their individual 
 process rate burdens. 
 
 Labor $.30 per hour; $.12 per hour Dept. burden 
 
 1st example : ] 
 $.10 per hr. }-+$.12 per hr. Dept. burden+$.30 labon=$ .52 per hr. 
 mach. burden J 
 
 2nd example : 1 
 $.25 per hr. f +$.12 per hr. Dept. burden+$.30 labor=$ .67 per hr. 
 mach. burden J 
 
 3rd example : ] 
 
 $1.50 per hr. [-+$.12 per hr. Dept. burden+$.30 labor=$1.92 per hr. 
 mach. burden J 
 
 SUMMARY 
 
 1st Example 2nd Example 3rd Example 
 
 10 hours $3.00 $3.00 $3.00 
 
 $.12 Dept. burden 1.20 1.20 1.20 
 
 Machine burden 1.00 2.50 15.00 
 
 Total $5.20 $6.70 $19.20 
 
FREDERIC A. PARKHURST 51 
 
 A comparison of these figures with the preceding ex- 
 amples will show without any argument that an error must 
 exist somewhere. Not only does the blanket or percentage 
 method give us a cost which is not a true cost, but it seri- 
 ously affects quotations and selling prices, so that there 
 can be no intelligent control of these. Furthermore, the 
 small job is carrying a large amount of burden which be- 
 longs to the larger job run in large or powerful machines, 
 while the jobs processed in these large machines do not 
 begin to carry the burden that properly belongs to them. 
 (See Fig. 17.) 
 
 To illustrate how an hourly and pound burden is used 
 in figuring costs, let us assume a job requiring a total of 
 30 direct hours (molding, core making, trimming, etc.) 
 and weighing 80 lbs., another weighing 200 lbs., and another 
 that nets 1000 lbs. of good castings all for 30 hours direct 
 labor. 
 
 12 3 
 
 80 Lbs. 200 Lbs. 1000 Lbs. 
 
 Labor $9.00 $9.00 $9.00 
 
 Average hour burden $.60... 18.00 18.00 18.00 
 
 Pound burden at $.03 2.40 6.00 30.00 
 
 Total $29.40 $33.00 $57.00 
 
 or cost per lb. 
 exclusive of metal $.3675 $ .165 $ .057 
 
 Study of the above example will readily convince the 
 reader that such a basis of figuring readily shows up the 
 good job from the poor. Prices can be intelligently and 
 confidently fixed. Oxidation and shrinkage, fuel, defective 
 loss, etc., melting, handling, pouring, shipping - , trucking, 
 etc., are "pound" items. All other items come under 
 hourly burden expense. A job without cores takes no core 
 or "knocking out" burden. Why charge them with any? 
 The use of this differential hourly and pound burden for 
 foundry work is the key to correct costs for that class of 
 work, as it is for other trades. If the class of work in a 
 shop changes overnight, as it often does in the jobbing busi- 
 
82 DISTRIBUTING INDIRECT EXPENSE 
 
 ness, the cost distributed to jobs automatically takes care 
 of itself. Under the flat-rate or percentage method this 
 condition does not stand. 
 
 So far general overhead as burden has not been specifi- 
 cally considered, but it has been assumed as added to the 
 departmental burden so as not to confuse the average 
 reader. Refer to Fig. 17. This diagram is based on ap- 
 proximate figures. The same basis of figuring is main- 
 tained throughout. The curves are based on the assump- 
 tion that the problem is confined to one department carry- 
 ing a definite departmental burden per hour. The burden, 
 of course, includes miscellaneous department expense, fore- 
 manship, general sales, administrative expense, etc. To the 
 department burden has been added a machine hour burden 
 figured on equipment ranging in value from $100.00 up to 
 $8000.00. Each machine burden includes interest, depre- 
 ciation, power, maintenance expense and its proportion of 
 the departmental expense that can be prorated to it, based 
 on the proportion of heat, light, floor space, etc., allotted 
 to each machine plus the wages of the operator. The wage 
 used starts at $1.80 per day for productive labor working 
 without machine equipment or with equipment up to the 
 value of $100.00. This direct labor wage also includes 
 an allowance for bonus. Bonus is charged as a direct item 
 (including the foreman's bonus, which is paid on a per- 
 centage basis depending on what the men earn on each 
 job). The direct labor rate, which starts at $1.80 per day, 
 including bonus, increases as higher priced equipment is 
 brought into use up to $4.40 per day, including bonus, for 
 the $8000.00 unit. 
 
 The problem illustrated in Fig. 17 is figured on the as- 
 sumption that there is but one machine, or process point, 
 for each of the unit valuations shown on the diagram for 
 that department. The figures above mentioned are repre- 
 sented by the curve marked "true cost line based on differ- 
 ential burden method." 
 
 Assuming that the true cost line (Fig. 17) represents 
 one day's work for each unit, the sum total of these vari- 
 
FREDERIC A. PARKHURST 83 
 
 ous amounts will equal the total expenditure for running 
 the department for one day of ten hours. This amount di- 
 vided into the productive hours represented (work units 
 times 10) will give the average rate per productive hour. 
 This is the flat-rate-per-hour figure often used and is repre- 
 sented on the diagram (Fig. 17) by the straight horizontal 
 line. The shaded area to the left of the point where the 
 horizontal line crosses the true-cost line represents an ex- 
 cessive false cost. In other words, labor performed in a 
 department using low-priced men and operating low-priced 
 equipment carries two or three times the burden that it 
 should. As the valuation of the equipment used by each in- 
 dividual increases, the difference between the false cost ob- 
 tained by the flat-rate-per-hour method and the differential 
 burden method becomes gradually less. At a certain point 
 the flat-rate burden line crosses the true-cost line. At the 
 point of coincidence we get the same cost for each of the 
 two methods illustrated, providing, of course, that the ratio 
 of productive hours is the same for each work unit. 
 
 The moment we pass by the point of intersection of the 
 flat-rate-per-hour burden line with the differential burden 
 line, the shaded area represents the minus and false cost 
 obtained by the flat-rate-per-hour method. In other words, 
 at this point the flat-rate method does not distribute enough 
 burden to work being done on the higher priced machines 
 or equipment. Such class of work shows a cost which is too 
 low, figured on the flat-rate-per-hour-method, just as the 
 other class of work to the left of the diagram shows a 
 figure too high. 
 
 Under the differential process rate method, the burden 
 per hour changes with the valuations of the equipment, 
 increased wage, interest, depreciation, power, maintenance 
 charges, etc. The expense of operation is distributed in 
 proportion to the operating cost of equipment necessary to 
 turn out a given job. The basis of figuring cost should be 
 one which will allow one manufacturer making certain parts 
 to intelligently compare with another, equipped to do the 
 same, his costs or estimates. A method of figuring cost, 
 
84 DISTRIBUTING INDIRECT EXPENSE 
 
 which will take into consideration all of the elements in- 
 volved in turning out a given product, will mean something 
 as a cost comparison. 
 
 Another direct effect of incomplete cost methods or incor- 
 rect methods of distributing burden results in a great many 
 firms being unable to determine whether they should man- 
 ufacture their own product or whether they should purchase 
 it outside. There is no gainsaying the fact that a firm 
 equipped for and experienced in the manufacture of certain 
 products should be able to turn out that product at a cost 
 cheaper than one could do who is not familiar with special- 
 ization in that given line. Compare the cost of the specialist 
 making certain kinds of product, figured on the flat-rate-per- 
 hour burden, with costs consuming the same amount of time 
 as shown by the shop making the same product, but not 
 equipped or specializing in that line, and still using a flat- 
 rate-per-hour method. It will be found there is a great dif- 
 ference in cost. The reason for this difference is that the 
 manufacturer specializing in a certain class of work is 
 equipped for it and his department does not carry the wide 
 range of equipment that the other plant which does not 
 specialize has to carry. Though their methods of figuring 
 the flat-rate burden may be the same, still the specialist 
 equipped for that class of work will not have the wide vari- 
 ation between his costs and the true costs that would be 
 found in the other department. Though his flat-rate-per- 
 hour burden method is incorrect, still for his class of work 
 it will average closer than will the same method used by the 
 manufacturer who turns out a large range of product rather 
 than a special or limited line. 
 
 4-E. Differential Process Rate Method 
 
 The wide difference in cost, obtained even by the same 
 method in different plants, will well emphasize the impor- 
 tance of having a differential process rate determined along 
 the lines to be expounded. It is as absolutely necessary in 
 the determination of true costs to have a true distribution 
 of burden as it is to know how much direct labor and 
 
FREDERIC A. PARKHURST 85 
 
 direct material was employed or used in connection with 
 any specific operation or job. No argument can be sus- 
 tained that supports a method averaging- a wide range of 
 equipment which ignores the relative wear and tear and the 
 relative power and consumption of investment, or which 
 does not recognize the various classes of labor employed 
 to use that equipment. 
 
 To obtain an accurate distribution, first, determine the 
 several burdens which the problem presents and keep them 
 separate as far as the monthly expression of their valuation, 
 and the analysis of the amounts from which they are deter- 
 mined are concerned. An analysis of the statement for the 
 period is desirable. Compare the different burden amounts 
 both by amount and by burden rate, as the expenses going 
 to make up these amounts can be more readily separated 
 and understood in this way. 
 
 Second, after the differential burden rates have been 
 determined and are ready for use, either in connection with 
 estimates or the recapitulation of costs, the several hourly 
 rates may be added together, to make one fixed sum for 
 each piece of equipment or work point. Of course, if the 
 several burdens include a piece or pound burden, this fig- 
 ure will have to be used as still another item and added 
 to the cost or estimate as a separate amount. The point 
 is that several burden rates for one unit or work point may 
 be combined so as to have less factors to use in connection 
 with figuring. The latter method is preferable and the 
 detail below is based on such a combination. 
 
 In this connection it is sometimes possible and desirable 
 to include the operator's rate in the total figure used, but 
 it is not recommended. It requires a great deal of detail 
 and supervision on account of the fluctuations in rates as 
 applied on different work, particularly when the shop is 
 not working to its normal capacity. Charge all bonus as 
 a direct item against each job, as it is a variable factor. 
 Combine the hourly rates and list them by work units de- 
 partmentally. Include in this total rate all the various items 
 above considered. 
 
86 
 
 DIFFERENTIAL PROCESS RATE METHOD 
 
 Total true cost is compounded of the hourly differential 
 process rate plus pound, piece or other burden not possible 
 to include in the process rate, plus direct labor, to which 
 bonus has been added, plus direct material. 
 
 The following items are to be figured for each individual 
 machine, bench or other piece of apparatus that constitutes 
 a work point. In cases of a duplex machine that is operated 
 by more than one man each item must be figured separately 
 for each work point. For example, a double buffing wheel 
 stand has two work points. Symbolize each end and figure 
 each as a separate machine, splitting cost installed, etc., to 
 the correct proportion for each work point, all in accord- 
 ance with the following" schedule of factors. 
 
 Schedule of Differential Process Rate Factors. 
 (9-hour day.) 
 
 ITEM NUMBER 
 
 1. Symbol of machine or work point. 
 
 2. Maker's name. 
 
 3. Style. 
 
 4. Size or number. 
 
 5. Floor space allotted to same. 
 
 6. Horse-power actually consumed. 
 
 7. Value installed complete. 
 
 Description of equipment 
 used at each work point ' 
 by each individual em- 
 ployed as direct labor 
 
 B 
 
 Items forming- 
 charges at each work 
 point described above 
 in A. 
 
 f 8. Interest, insurance and taxes, 
 yearly | 9. Depreciation. 
 
 10. Indirect machine cost (X4 and X6). 
 
 11. Heat, light and rent. 
 
 12. Power and transmission expense. 
 
 13. Total "B" yearly charges (8 to 12 in- 
 clusive). 
 
 f 14. Machine rate per direct hour (Item 13 
 
 divided by 2000). 
 | 15. Department base rate per direct hour 
 
 (XI to X32 exclusive X4 and X6). 
 | 16. Local plant base rate per direct hour and 
 
 for departments not provided for in 
 
 IS. (AX1 to AX56). 
 I 17. General administration, financial, sales 
 
 and operating expense ( GAX to GXX 
 inclusive) per direct hour. 
 [ 18. Minimum profit factor per direct hour. 
 
 f 19. Process rate to use per direct hour for 
 -j each specific work point, viz. sum of 
 
 Differential process rate. I J4 ; J5^ i5 ; \y an( j ig. 
 
 C 
 
 Hourly rates. 
 
 D 
 
FREDERIC A. PARKHURST 
 
 87 
 
 Basis on which Differential Process Rates are Figured 
 as per Schedule Above. 
 
 (Computed on a 9-hour day.) 
 
 DESCRIPTION ITEMS 
 (1-7 inclusive) 
 
 Item No. 
 1. Symbol. 
 
 2. Maker. 
 
 3. Style. 
 
 4. Size. 
 
 5. Floor space. 
 
 6. Horse-power. 
 
 7. Value installed. 
 
 This symbol indicates the particular machine, 
 bench or other apparatus constituting a work 
 point and is for identification purposes. 
 
 Maker's name. 
 
 Whether hand, power, turret, universal, etc., de- 
 pending on kind of equipment. Detail sufficiently 
 to assist in determining general style of the 
 machine, bench or apparatus. 
 
 Give sufficient data to indicate main capacity 
 measurements of the apparatus and maker's num- 
 ber or symbol if one is obtainable. 
 
 This is to be expressed in square feet. Make an 
 allowance for working space around machine or 
 bench adequately to handle its material. This 
 forms the basis for prorating heat, light and rent, 
 Item 11. 
 
 This item is to be based on the actual horse-power 
 used for each machine compared to the total 
 horse-power on any one transmission line. 
 (See 7-f.) 
 
 This figure should be the total cost in running 
 order set up and includes cost of : 
 
 a. Machine and appurtenances. 
 
 b. Freight. 
 
 c. Cartage and placing on site. 
 
 d. Millwright work and material, cost of 
 foundations, assembling, etc. 
 
 e. Belts, etc. 
 
 /. Proportion of cost of motor drive and wiring; 
 or of transmission shafting, wiring, motor 
 and belt which drives same. Base on H.P. 
 consumed as compared to total on any one 
 line. (See 6 and 12 and list herewith.) 
 
88 
 
 DIFFERENTIAL PROCESS RATE METHOD 
 
 TABLE II 
 Example for 7f 
 
 LINE SHAFT NUMBER 
 
 5 and 6 
 
 Horse-power 13.5 18.5 35 24 35 
 
 Motor cost $180.00 $275.00 $320.00 $275.00 $320.00 
 
 Wiring cost ... . 98.50 197.00 345.00 197.00 345.00 
 
 Belt cost 17.60 26.40 35.20 26.40 35.20 
 
 Transmission cost 217.00 280.00 280.00 280.00 224.00 
 
 Total cost ..$513.10 $778.40 $980.20 $778.40 $924.20 
 
 Per H.P $38.00 $42.09 $28.00 $32.43 $26.40 
 
 YEARLY CHARGES 
 
 (8-12 inclusive) 
 
 Based on the above we must now determine the cost per year ex- 
 pressed in dollars for the following factors. The total of 8 to 12 
 inclusive (13) will then be divided by 2000 hours to determine the 
 hourly rate for 14. (See 14 and 15 below.) 
 
 Item No. 
 8. Interest, etc. 
 
 Based on sum of : 
 
 a. Interest 
 
 b. Insurance 
 
 c. Taxes 
 
 use prevailing rates. 
 
 9. Depreciation 20% This figure is used on the assumption that the 
 (To be varied to equipment running at maximum capacity for 5 
 suit conditions) years becomes more or less obsolete, or has such 
 a reduced value as compared with the latest im- 
 proved machines that it will have to be replaced, 
 or almost entirely rebuilt. 
 
 10. Indirect machine This item includes any repairs or maintenance 
 
 cost. cost, and material or sundries incidental to the 
 
 daily operation, etc. Expenses X4 and X6 for 
 each machine or bench by symbol. 
 
 11. Heat, light and This item is prorated to each machine or bench 
 
 rent. based on "5" after deducting the amount charged 
 
 to the department rate as explained for "15." 
 
FREDERIC A. PARKHURST 
 
 89 
 
 EXAMPLE 
 
 Light 
 Equipment 
 
 Heating Land and 
 
 Plant Building 
 
 $4352.00 $27,500.00 Totals 
 
 $261.12 $1650.00 $1965.13 
 
 435.20 1375.00 1900.20 
 
 252.00 
 
 2000.00 2000.00 
 
 17.40 105.00 126.00 
 
 13.06 82.50 98.26 
 
 $6341.58 
 
 Cost Installed $900.00 
 
 Interest $ 54.00 
 
 Depreciation 90.00 
 
 Electricity 252.00 
 
 Fuel and labor 
 
 Insurance 3.60 
 
 Taxes 2.70 
 
 Total rent per year 
 
 In the example shown the total rent chargeable to the 
 department, based on that department's valuation in light- 
 ing and heating equipment and in its land and building, 
 amounts to $6341.58 per year. If we assume a total floor 
 space of 20,000 square feet we have $.3178 per year rental 
 per square foot. The number of square feet allotted to each 
 work point (Item 5) multiplied by $.3178 gives the yearly 
 charge for that work point (Item 11). The total cross 
 added amount (Item 11) subtracted from $6341.58 leaves a 
 balance of undistributed rent which forms one of the depart- 
 mental charges included in Item 15. 
 
 Item No. 
 12. Power and 
 transmission Ex. 
 
 13. Total yearly 
 charges. 
 
 14. Rate per hour 
 for 13. 
 
 This should be based on the horse-power hours 
 for each motor drive for 2000 hours per year ; or 
 total horse-power hours X cost for elctricity per 
 horse-power hour. Add maintenance of shaft, 
 belt, etc., not provided for above in "10." Pro- 
 rate as per "6." The sam principle applies to 
 any kind of power. 
 
 This is the sum of 8 to 12 inclusive expressed in 
 dollars, and covers one year's cost for each work 
 point sparately. 
 
 HOURLY RATES 
 (14-18 inclusive) 
 
 The yearly total for each work point (see 13) is 
 to be divided by 2000 to determine the cost per 
 hour. The normal year of 2000 direct hours is 
 determined as follows : 
 
90 
 
 DIFFERENTIAL PROCESS RATE METHOD 
 
 a. 300 working days per year. 
 
 b. 300x9 hours per day=2700 direct hours per 
 year. 
 
 c. Consider 75% capacity as a fair average 
 normal working year or 2025 hours : say 
 2000 hours per year for each work point. 
 
 Item No-. 
 
 15. Dept. base rate. 
 
 This rate is determined by taking all of the ex- 
 penses of a department that are not included in 
 8 to 12 inclusive and dividing same by the product 
 of direct man daysX2000, or : 
 
 Dept. Yearly Expense (8 to 12 inclusive) 
 Total dept. direct man hours per year 
 
 =Dept. Bate. 
 
 16. Local plant base 
 rate per di- 
 rect hour. 
 
 The Departmental yearly expense includes all 
 XI to X32 (less X4 and X6) items in operating 
 statement. From the figures so determined for a 
 year we must subtract the amount of money rep- 
 resented above in Items 8 to 12 inclusive, and 
 which have already been prorated into the ma- 
 chine rate, else we have it in twice. This can be 
 readily done by subtracting the sum of Item 13, 
 cross added for all symbols, from the total in- 
 direct cost of running the department for one 
 year. The department base rate is the same per 
 hour for each work point in that department. 
 
 This amount is determined as follows. From the 
 operating statement there must be determined 
 the yearly charges against the plant as a whole 
 which have not been distributed into the depart- 
 mental base rate, Item 15. This Item 16 is to in- 
 clude all AXI to AX56 expense plus department 
 expenses XI to X32 for the departments, such as 
 office, shipping, receiving, timekeeping, planning, 
 etc., etc., which are not included in department 
 rates, Item 15. 
 
 All yearly land and building charges and other 
 items are to be included for that part of the plant 
 not distributed into the machine and departmental 
 
FREDERIC A. PARKHURST 91 
 
 rates, Items 14 and 15. This includes undis- 
 tributed : 
 
 a. Interest. 
 
 b. Taxes. 
 
 c. Insurance. 
 
 d. Depreciation. 
 
 e. Also unapportioned AX and departmental 
 items above mentioned. 
 
 The sum for one year determined as above 
 explained is to be brought down to a rate per 
 direct hour by the same formula as given for 
 Item 13, viz. : 
 
 Undistributed Local Plant Yearly Charges 
 
 Total direct hours for entire plant =Local Plant Rate. 
 
 The local plant base rate so determined is the 
 same for every work point. 
 Item No. 
 
 17. General base This item is the sum of the general expenses of 
 
 rate. the business not included above. If there is more 
 
 than one plant, these charges are prorated 
 monthly to each plant. These expenses are cov- 
 ered by the GAX to GXX, Items 1 to 56 inclu- 
 sive, and do not include any charges provided for 
 in any of the foregoing items, 13 to 14 inclusive. 
 The sum of these general expenses for one year 
 prorated to each plant should be divided by the 
 normal total direct hours worked by that plant 
 as explained above for Item 16. This rate per 
 hour is the same for all work points. 
 
 18. Minimum profit Use for this a rate per hour (for example, 15c to 
 
 factor per di- 25c), which will net a minimum profit per year 
 rect hour. on the invested amount of at least 6%. The pro- 
 
 duct of the total normal work points for any 
 plant multiplied by 2000 hours (for a 9-hour 
 day), divided into 6% of the total investment 
 for that plant will give the correct amount per 
 hour to use as a minimum profit factor. This is a 
 safety factor to- be considered part of cost of 
 production. 
 
 DIFFERENTIAL PROCESS RATE 
 
 (19) 
 
 19. Differential pro- This amount for each work point is the sum of 
 
 cess rate to Items 14, 15, 16, 17 and 18. A list of each work 
 be added to point identified by symbol should be made with 
 every hour of the process rate shown opposite each work point, 
 direct labor. Reference to this list gives instantly the correct 
 
 rate to use for any operation when figuring either 
 
 estimates or costs. 
 
92 UNDISTRIBUTED BURDEN 
 
 4-F. Undistributed Burden 
 
 A number of different ways of disposing of undistributed 
 or unearned burden has been suggested and in fact used to 
 some extent. Too often the matter is overlooked entirely. 
 Modern business now demands that this very important 
 point be definitely settled and disposition made of it. The 
 fact must not be overlooked that past practice is not ap- 
 plicable in these times. Why? Because business condi- 
 tions no longer permit of long prices, cheap materials and 
 labor, orders coming in unsolicited, ignorance of costs and 
 "guessed at" selling prices. 
 
 Elsewhere emphasis has been laid on the importance of 
 limiting the chargeable burden when it is too high due to 
 low production. The reason as explained above is so as 
 not to get excessive costs or high (and false) inventory 
 valuations. On the other hand, it seems fair to get advan- 
 tage of a burden slightly below the high limit established 
 whenever the volume of business makes this possible. The 
 establishment of this high or "limit" mark should be based 
 on fair averages and the consensus of opinion of the prin- 
 cipals. 
 
 By the establishment of a maximum burden limit (either 
 hour, pound or other unit of distribution) we are able to 
 use that limit figure to estimate costs when establishing 
 selling prices. Such estimates must always be based on this 
 maximum allowable burden limit — no more or no less. 
 
 In the author's estimation, the unearned burden should 
 be debited to the Loss and Gain account. Each monthly 
 operating statement should show the amount of this charge 
 in a separate item. This same amount should also be ex- 
 pressed in memo as an item properly chargeable against 
 sales expense for that period. This can appear as an extra 
 item of sales bad work expense, X32. 
 
LECTURE XVIII 
 
 ESTIMATING 
 
 6-A. Machine Shop. 
 6-B. Foundry. 
 
 The following discussion of the ibove subjects has been reprinted 
 from Chapter VI of the author's "Predetermination of Prices." Fig- 
 ures referred to have been omitted and the student is referred to the 
 above mentioned book for further detail. 
 
 The foregoing chapters have shown the method of 
 analyzing and obtaining detailed figures for the compilation 
 of true costs. Without a cost analysis and detailed informa- 
 tion, it is impossible to make an accurate estimate. An 
 estimate should contain no minutest per cent of "guess 
 work." It should be based on a complete detail knowledge 
 of everything pertaining to the operation of the plant which 
 is going to manufacture the product on which the estimate 
 is to be made. The more highly organized the plant and the 
 more complete the plant's records are, the more correct will 
 be the estimate. 
 
 It is necessary to predetermine costs preparatory to 
 reaching the true selling prices. The predetermination of 
 a cost, of course, depends on the records above referred to, 
 though past records represent the basis on which predeter- 
 mination of cost depends. In plants where the science of 
 management has established elemental operation and pro- 
 duction standards and where the efficiency ratio is a figure 
 which is always known, the predetermination of costs can 
 be worked down to such a point that the actual cost and 
 the estimated costs will agree within a very few per cent. 
 On the face of it, the statement that cost can be predeter- 
 mined sounds a little "fishy" to the layman. Practice 
 has proved that the predetermination of cost is not only 
 possible, but an established fact and a most essential one 
 for the producer and purchaser alike. 
 
 A complete discussion of the subject of estimating would 
 take up too much space, as the details vary much in different 
 
 93 
 
94 MACHINE SHOP 
 
 kinds of work and in different lines of business; but it may 
 be well to mention several of the important points to be 
 considered when making estimates on the average jobbing 
 or machining jobs in any of the allied metal trades, including 
 foundry work. 
 
 6-A. Machine Shop 
 
 The following is an abstract from one of the author's in- 
 structions on estimating- issued to a plant manufacturing 
 machine tools and dies and doing some jobbing and develop- 
 ing work. 
 
 An estimate should be written (using form FAP36a) for 
 every proposal quoting a price for product not standard. 
 The form above referred to must be filled out complete as 
 per the printed matter thereon. (See Fig. 23.) 
 
 Estimates shall be made only by those authorized by the 
 Company (chiefly the Engineers) and by those to whom 
 estimate books have been issued. These books contain a 
 white original form and one yellow duplicate with some- 
 times a blue triplicate. The white original, when com- 
 plete, must be forwarded to the Sales Manager, who will 
 see that it is filed with the prospect's correspondence and 
 attached to the file copy of the proposal. The carbon or 
 yellow copy remains in the book for the reference of the 
 estimator. 
 
 The following rules should be observed in making all 
 estimates : 
 
 a. Divide the job into as many groups as possible. 
 Treat each group or item separately and completely. 
 Make this grouping conform to that which will be 
 used in making out the order. The estimates can 
 then be closely checked while work is in process and 
 after it is completed. The estimate should be used 
 as a guide by the Order Clerk when itemizing the 
 general order. 
 b. Include every item of the expense incident to pro- 
 ducing the article or articles being estimated on, 
 including special sales expense (if any), designing, 
 drawing, engineering supervision, patterns, all ma- 
 
FREDERIC A. PARKHURST 95 
 
 terial in detail by classes and weight, labor by indi- 
 vidual operations and prices as much as possible, 
 including assembling, fitting up, testing, photograph- 
 ing, crating, boxing, loading, etc. 
 
 c. A list will be provided giving the differential process 
 rates, or if this is not available, the item of expense 
 must' be provided for by the estimator and the 
 "amount" left to be filled in by the Production Man- 
 ager. Treat other questionable items in the same 
 way. Leave nothing out ; the costs will be provided 
 in all cases where they are not available to the estima- 
 tor. 
 
 d. The estimator knows from the original inquiry com- 
 bined with the specifications of the Engineering de- 
 partment what is to be estimated on. The Engineers 
 often are the only ones who have all the details. All 
 material, labor, etc., must be included or else the sales 
 department cannot intelligently quote. Failure to do 
 this, or a resort to pure "guess work," means a loss 
 to the Company. 
 
 e. All estimates should total as costs to the manufacturer, 
 and not selling prices. Fixing the selling price is not 
 up to the estimator. 
 
 /. An intelligent analysis (including the itemizing) of 
 an inquiry is absolutely necessary before proceeding 
 with the detailed estimate along the lines outlined 
 above. The fact must not be lost sight of that if 
 the estimate is not accurately made, the cost is likely 
 to overrun, resulting in a loss. All weights must be 
 very accurately calculated based on the rough sizes 
 of the material before finishing. 
 When issuing the general order for any job on which 
 an estimate has been prepared, it is the Chief Order Clerk's 
 duty to see that the estimate number appears in the word- 
 ing of the order for each item on which there was an esti- 
 mate. This reference is for the attention of the Engineers 
 and Draftsmen so that the designing may be carried through 
 in accordance with the estimate, and for the planning de- 
 
96 MACHINE SHOP 
 
 partment so that they may intelligently route and bring the 
 job through within the cost limits estimated. 
 
 The sales department should never quote a price until 
 an accurate and careful detailed estimate as above described 
 has been made. On new die work a definite price should 
 never be quoted, but use the estimates as a guide to deter- 
 mine about how much the dies should cost. The experi- 
 mental cost on this class of work is always an unknown 
 quantity. 
 
 Let us refer, at this point, to Chapter II, 2-A to 2-1 
 inclusive, wherein a number of functional developments 
 of management are explained as having an important bear- 
 ing on true costs. The preliminaries, or shop control of 
 work in process, and all indirect expense items, have a very 
 direct influence on the accuracy of an estimate. One real- 
 izes the particular truth of such a statement when appre- 
 ciating that in the last analysis an estimate is practically 
 the predetermination of costs. 
 
 The Planning Room is directly responsible for the con- 
 trol of materials and labor and all other resources, so as to 
 not only maintain standards, but to preclude any possibility 
 of costs overrunning estimates through lack of knowledge 
 of just what was included at the time the estimate was 
 made. Verbal orders from customers must be approved in 
 writing. See forms shown in Figs. 24 and 25. 
 
 In developing a correct estimate on any new work there 
 are many items to be considered and in practically every 
 business there are some items which are subject to such 
 variations that it is very difficult to predetermine their 
 cost. Specific experimental features always add a distinctly 
 unstaple factor especially where new designs of drawn or 
 stamped work are involved. In such cases, estimates rep- 
 resent an approximate rather than a definite figure on which 
 to base a fixed selling price, and such estimates should be 
 considered as only an approximate indication of what the 
 work will cost the customer. Prices should be based on 
 cost plus a profit figured in any of several ways, which will 
 be discussed in detail under Chapter VII. 
 
FREDERIC A. PARKHURST 97 
 
 Regardless of the kind of business and the class of work 
 to be estimated on, it is imperative that the estimator be 
 supplied with complete data based on analytical costs of 
 both direct labor, direct material and the various indirect 
 expenses. These expenses should be expressed in terms of 
 differential process rates and burden rates with all their 
 variations. Classes of work permitting" of a definite estimate 
 should always be figured on a full consideration of all the 
 figures available. These should be applied in accordance 
 with the methods outlined above. 
 
 When the time study methods are sufficiently advanced 
 so that a check can be kept on the plant efficiency, direct 
 labor cost should be figured on the maximum efficiency 
 basis. After the figures have been compiled, those which 
 vary according to the relative efficiency of the man per- 
 forming the direct labor should be increased by using - the 
 plant efficiency factor as it stands from period to period. 
 Assuming the plant efficiency to be running 70% of the 
 time study standard, or maximum, the estimates for this 
 part of the work would be increased by 1.43. If the men 
 are running around 80% of the maximum efficiency, such 
 an estimate would be represented by the factor 1.25. This 
 factor alters with the conditions. In cases where the effi- 
 ciency factor is not used, the estimate must be figured on a 
 basis of existing records. 
 
 6-B. Foundry 
 
 The following is an abstract from a standard instruc- 
 tion covering the method of estimating on foundry work, 
 including machine operations in cases where the price cov- 
 ers a piece machined complete. 
 
 The estimate form FAP134 is made up in book form 
 (see Fig. 26), so that a white original copy may be used 
 in connection with the carbon paper and detached from 
 the book when the estimate is complete. The white orig- 
 inal is filed in Sales department. The yellow copy remains 
 in the book as the estimator's record of each estimate. A 
 detachable carbon "rider" is also provided to give an extra 
 
98 FOUNDRY 
 
 record of the general specification of the estimate, equip- 
 ment, method, average weight, etc. The rider is sent to the 
 Planning Room as their guide in handling the order. ( See 
 Fig. 27.) 
 
 All of the information asked for in the printed heading 
 forming the top part of the sheet should be filled in com- 
 plete. The heading indicates the basis on which the esti- 
 mate was made and the method under which the plant 
 expects to run the order in the event the business is secured. 
 In making estimates, do not assume a lot of conditions but 
 be sure all of the points referred to on the form are ac- 
 counted for. If one does not have full information of what 
 is required for a job, it will be a hopeless task to intelli- 
 gently estimate what it will cost. Neither can one hope to 
 intelligently fix a selling price which will be profitable and 
 yet not excessive. 
 
 In cases involving more than one different price, a sepa- 
 rate detailed estimate is to be made of the cost of castings 
 from each pattern or each different size or design, whether 
 rough or finished, or both. 
 
 Estimates must be made only by a duly authorized 
 person and approved by the local manager, production man- 
 ager and superintendent. All estimates shall be made in 
 accordance with this instruction and on estimate form 
 FAP134. The original copy of all estimates shall be filed 
 in the estimate file. All orders received subsequent to or 
 based on an estimate must show the estimate number on 
 the general order form. 
 
 When cost sheets are closed up, the summary cost card, 
 Form FAP145, sna U a ^ so show the estimate number. 
 
 In making estimates, be sure that full information is had 
 regarding the pattern equipment from which such castings 
 are to be made. Whenever possible, it is desirable that 
 full pattern equipment be made in the pattern shop con- 
 nected with the foundry which is to supply the castings. 
 There will be cases, of course, where the customer desires 
 to furnish his own equipment. In such case the foundry 
 officials can often consult with him in reference to furnish- 
 
FREDERIC A. PARKHURST 99 
 
 ing the proper kind of patterns, rigged up to suit the best 
 foundry practice. 
 
 Whether the patterns are made new, and furnished by 
 the customer or made new by the foundry the most careful 
 observation must be given to the kind and style of each 
 pattern and the method of rigging- up. All patterns for 
 small work should be plated wherever possible. Pattern 
 equipment and estimates should include core dryers, and 
 any special rigging or jigs that may be necessary in con- 
 nection with making or setting cores. It shall be the policy 
 as far as possible to include such rigging in the cost of 
 the pattern equipment, all of which should be paid for by 
 the customer. Include in this charge to the customer every- 
 thing not part of the regular standard equipment and in- 
 clude labor of getting it rigged up, also cost of jigs, gauges, 
 etc., used in setting or sizing cores. 
 
 In case of patterns and equipment already in existence, 
 and for which new patterns cannot be obtained, the foundry 
 should keep in close touch with the customer to see that 
 such patterns are kept up in first-class condition. Many 
 gated patterns require matches, which after some use be- 
 come more or less broken down around the edges. If the 
 matches are not kept in good repair, the foundry cannot 
 realize maximum production on such jobs. It should be 
 the foundry policy to refuse to run patterns which are 
 not in proper condition or which are so arranged that the 
 foundry will be put to additional expense in turning out 
 castings. In such cases, the foundry must get the co-opera- 
 tion of the customer toward putting the patterns in first- 
 class shape, with his authority, of course, and with the 
 understanding' that such altering or repairing of patterns 
 is to be charged up to him. 
 
 There is no economy in running pattern equipment after 
 it begins to get out of repair, or pattern equipment which 
 is not adequate, or properly arranged, for the class of work 
 in question. It must be the policy to give patterns careful 
 inspection, and if necessary make sample molds enough to 
 be sure that the pattern and other accessories are in first- 
 
IOO FOUNDRY 
 
 class shape and ready for regular production. This work 
 must be done by the Equipment Foreman, who is a specially 
 trained man. When the equipment is satisfactory, it may 
 then be passed to the job rack, preparatory to being for- 
 warded to the proper floor bench or machine and accom- 
 panied by the proper flask (or flasks), bottom boards, etc., 
 for regular production. If a heavy floor job, it should be 
 tried out on the floor where it is to be run. 
 
 A foundry cannot immediately develop its pattern equip- 
 ment fully along the lines above described, but such should 
 be the policy. By continually working in this direction a 
 great improvement can be effected, not only in the cost of 
 producing castings but in the quality and deliveries. The 
 above facts should be borne in mind whenever making esti- 
 mates, and I repeat for emphasis the fact that the foundry 
 should not "allow" in "castings estimates," anything for 
 pattern expense or equipment which should be charged up 
 to the customer. On the other hand, do not hesitate to add 
 into your estimate anything which is necessary for the 
 proper production of the job. 
 
 Pound Prices 
 
 Pound prices are to be figured on a basis of the net mini- 
 mum weight of each casting. 
 
 Piece Prices 
 
 Piece prices are to be figured on a basis of the average 
 weight of each casting, plus 5% to 10% as an allowable 
 foundry weight variation under commercial production 
 conditions. This percentage varies with the class of work. 
 
 The Planning Room, or Office (as the case may be) daily 
 checks piece weights of all castings shipped the day before. 
 The check consists of a comparison between the average 
 weight list on file in the Planning Room or Office, and the 
 charge slips turned in by the Shipping Clerk for the previ- 
 ous clay's shipments. This method is in vogue at the pres- 
 ent time, and is a first check in locating errors in shipping 
 weights and billing. The method also catches any errors 
 
FREDERIC A. PARKHURST IOI 
 
 which might affect the average weight list, due to an altera- 
 tion in the pattern unknown to the Planning Room or 
 Office. Although it is unlikely that changes will be made 
 in the shops without orders, commercial productions may 
 increase the weight of the castings by several per cent, due 
 to strains, inequality in cores, etc. It is, of course, neces- 
 sary for production records that such changes be known. 
 When selling by the piece price, the method provides a 
 check to keep the weight within the estimated limits. Al- 
 though there is an allowance of 5% or 10% variation in 
 weight in estimates for castings sold by the piece, still it is 
 to every one's advantage to hold the weight as near normal 
 as possible. On some classes of work an excessive weight 
 variation might mean much more in failing to machine 
 properly than in wasting of metal. 
 
 The following method is to be employed in making- esti- 
 mates for castings from each different pattern : 
 
 a. Consult existing cost data to determine direct labor 
 similar cost on the particular job in question, or for a 
 similar job, if such a record exists. (See price card 
 Fig. 28.) 
 
 b. Study the^average direct labor cost record of work 
 of the same general class, if such record exists. 
 
 When consulting records referred to in items "a" and 
 "b" above, consider only the direct labor cost, and not 
 the total cost including burden. The item of burden 
 is likely to vary. The prevailing rate of burden at 
 the time the estimate is made should be used. For 
 data on "Burden" see Instruction 108. 
 
 c. Consult with the Superintendent, Time Study Fore- 
 man, Pattern Shop Foreman, and Cost Clerk, for 
 data and estimates on direct labor costs. 
 
 For details of each estimate see Form FAP134, Fig. 26. 
 
 The estimated total labor cost, determined as per items 
 "a" , "b" and "c" above should be based on the average 
 prevailing rate, plus the bonus, paid the class of help to be 
 employed on that particular work. These figures are to be 
 
102 FOUNDRY 
 
 based on specific equipment to be run by a definite prede- 
 termined method, and in the size flasks best adapted to the 
 job. For standard production data, flask sizes, etc., con- 
 sult the time study foreman. Work as much as possible 
 from data on standard time sheets, Form FAPI150. 
 
 Burden 
 
 Differential burden rates and differential process rates 
 will hereafter be referred to as "burden." (See Instruction 
 108.) This burden is to be added to the estimate on the 
 basis of so much money per man hour (and not as a per- 
 centage factor), plus a pound burden. 
 
 It may be well to explain here the reason for distributing 
 the burden on a man day (or hour) basis rather than by 
 percentage or tonnage basis. Experience has shown it is 
 more accurate to distribute on the basis of time, rather than 
 on the percentage of wage paid. In other words, time is the 
 chief controlling factor in business. Men are hired on a 
 time basis at so much per hour, and the extra bonus they 
 earn also applies to a definite length of time. Indirect ex- 
 pense, salaries, etc., cover a definite time. Heat and light 
 and power are maintained for a definite time each day. 
 Finally a day's work is concluded by having expended so 
 many direct hours to turn out a certain volume of work, 
 per each man employed, as direct labor on all production. 
 For each man so employed as direct labor on all productive 
 work, so much money has been paid out for a man day, a 
 unit of time. In addition that man day has cost us one 
 man day's proportion of a burden. Why do many foundry- 
 men ignore this time element? 
 
 In addition to the hourly burden there is a pound burden, 
 which covers the distribution of expense for departments 
 iD, 2F, iF, iG, iS and 10X. The total burden is pro- 
 rated for these six departments on a pound basis in addi- 
 tion to the departmental hourly burden. This distribution 
 is obtained by taking the burden for the current month and 
 applying it to the number of pounds of good castings enter- 
 ing into the estimate in question. Pound burden is dis- 
 tributed to castings in addition to the departmental or 
 
FREDERIC A. PARKHURST IO3 
 
 process rate burden. Other burdens exist for pattern work 
 iP and for brass finishing work 2U. This is prorated on 
 the hourly burden basis, also under the differential process 
 rate. 
 
 To properly summarize the preceding - , it should be noted 
 that we have several rates of burden distribution, which in 
 the aggregate are called our differential burdens. The list 
 follows : Any estimate or cost summary must include one 
 or the other, and perhaps several of the following groups 
 of burden. These are to be used departmentally for each 
 of the following groups. (See Instruction 108.) 
 
 Castings j Hourly burden and pound burden. 
 
 Pattern and flask / 
 
 work ( 1 P, 1 K < Hourly burden. 
 
 and iU). ( 
 
 Machining i Differential process rate. 
 
 Plant Efficiency Factor 
 
 In considering items "a" , "b" and "c" a conservative 
 estimate of day work may be used without any addition due 
 to the plant efficiency, as such a conservative estimate would 
 in itself cover such allowances. Eventually, however, when 
 all direct labor is under control, and standard production 
 figures govern nearly every case the plant efficiency factor 
 comes into use. It is to these standard maximum produc- 
 tion figures, as per the bonus schedules and standard ele- 
 mental time sheets, that the following factors apply. (See 
 Form FAP150, Fig. 29.) 
 
 Local plant conditions at the time of the installation of 
 scientific methods are often such as to make it necessary to 
 start bonus as low as 60% of the maximum calculated pro- 
 duction. Later on, as the men begin to earn bonus, and 
 come nearer the maximum, this factor is changed to 70%. 
 Later this factor is raised to 80%. 
 
 Plant efficiency factors are as follows : 
 
 For 60% plant efficiency multiply cost by 1.66. 
 
 For 70% plant efficiency multiply cost by 1.42. 
 
 For 80% plant efficiency multiply cost by 1.25. 
 
104 FOUNDRY 
 
 Referring to the plant efficiency factors shown on page 
 98 it is obvious that when estimating a job in a 70% effi- 
 ciency plant the factor 1.43 should be used for work on 
 which the bonus starts at 70%. For work on which the 
 bonus starts at 60%, the factor 1.66 should be used. On the 
 other hand, when all the bonus work starts at 80%, the esti- 
 mate should be raised by the factor 1.25. This factor is, of 
 course, only used in estimates where the basis of estimating 
 is equivalent to 100% bonus production. 
 
 In cases where the estimate is based on conservative day 
 work estimates or actual cost figures, the factor does not 
 apply and the actual figures are used. If the estimate is 
 based on standard time sheets form FAP150, the time to 
 be used will be found in the maximum bonus time column. 
 
 The detail of filling in an estimate form is as follows: 
 Form FAP134 is made up in book form, so that the white 
 original will be used in connection with the carbon paper 
 and detached from the book when the estimate is complete. 
 The yellow copy remains in the book as the estimator's 
 record of each estimate. A detachable carbon "rider" is 
 also provided to give an extra record of the general speci- 
 fication of the estimate, equipment method, average weight, 
 etc. The rider is sent to the Planning Room as their guide 
 in handling' the order. 
 
 All of the information asked for in the printed heading 
 at the top of the sheet should always be filled in complete. 
 The heading indicates the basis on which the estimate was 
 made and the method under which the plant expects to run 
 the order in the event the order is booked. Overtime is an 
 important consideration, and should be controlled through 
 the medium of the overtime order. (See Fig. 30.) In 
 making estimates, do not assume a lot of conditions and be 
 sure all of the points referred to on the form are accounted 
 for. In other words, if full information of what is required 
 for a job is not at hand it will be a hopeless task to intelli- 
 gently estimate what the job will cost. Neither can one 
 hope to intelligently fix a selling price which should be 
 
FREDERIC A. PARKHURST I05 
 
 profitable and yet which though profitable will not be ex- 
 cessively so. 
 
 It will be noted that the estimate form is divided into 
 six sections numbered from i to 6 inclusive. The follow- 
 ing references (sections i, 2, 3, etc.) refer to the sections 
 indicated on the form. 
 
 Section i (Special Items). This section covers any 
 special items of costs, if there are any, which may enter into 
 the estimate in question. The item should be expressed in 
 hours, the rate per hour shown and the amount of money ex- 
 tended to the "Amount" column. The burden for this item 
 should represent the hourly burden based on the prevailing 
 rates. The burden rates should go into the "Rate" column 
 and the amount of the burden (the hours on the line above 
 multiplied by the burden rate) go into the "Amount" 
 column. If there is any material applying to this section of 
 the estimate, it should be shown in the "Amount" column. 
 The "Amount" and "Hour" column should then be totalled; 
 this total represents "Section 1 total." 
 
 Section 2 (Pattern and Flask Estimate). This section 
 is intended to include all items entering into the estimate 
 as far as pattern and flask expense is concerned. On the 
 first line should appear the total hours, rate and amount ex- 
 pended on this item, including departments iP, iK and iU. 
 In the second line the pattern burden should represent the 
 iP burden multiplied by the total hours on the line above, 
 and the amount carried into the "Amount" column. The 
 third line shows any direct materials or sundries that may 
 enter into the costs of this part of the work. The total of 
 these items for Section 2 gives us "Section 2 total." 
 
 Section 3 (Castings Estimate). Under this section we 
 have various items, such as core making, molding, knock- 
 ing out, trimming, and any other direct labor as well as a 
 bonus item for each of the foregoing. Opposite each of 
 the items above mentioned should appear the total hours, 
 rate and amount covering all direct labor that can apply to 
 any of those groups and affecting the possible costs of the 
 job being estimated upon. The above items should be 
 
106 FOUNDRY 
 
 added, so as to get a sub-total representing the total direct 
 hours and direct amount. 
 
 The sub-total should then be increased to a new amount 
 by multiplying it by the plant efficiency factor, either 1.25, 
 1.43 or 1.66 referred to above. To this new amount should 
 be added the hourly burden based on the new total of hours 
 determined by the use of the plant efficiency factor just 
 referred to. On the next line should be added an additional 
 burden representing the pound burden. The next and last 
 item making up the castings estimate is the freight from the 
 foundry to the F.O.B. of the customer, providing freight 
 is paid by the foundry. The footing of these four last- 
 mentioned items (bearing in mind, of course, that sub- 
 total of Section 3 is ignored because it has been replaced by 
 a larger amount on the next line) represents the "Section 3 
 total." 
 
 Section 4 (Metal Estimate). This section includes on 
 the first line the prices (F.O.B. our plant) of the number 
 of pounds of metal required for the quantity on which the 
 estimate is based. In the "rate" column should appear the 
 rate per pound used in determining the amount in question. 
 On the next line should be shown the number of pounds of 
 chips that can be recovered as salvage priced at a conserva- 
 tive rate per pound, and the amount deducted from the 
 metal cost on the first line. The balance gives us our "Sec- 
 tion 4 total." 
 
 Section 5 (Tools for Machining Estimate). This sec- 
 tion is totalled up to show the hours, wages, and material 
 estimate for the tools for each of the twenty operations. A 
 summary total is arranged to carry the total tool labor in 
 hours and amount into the right-hand columns. On the 
 next line appears the total tool material in one amount. The 
 third line takes the tool burden, which burden shall be the 
 total process rate for work points applying on tools for the 
 job in question. These three items foot to an amount which 
 gives us the "Section 5 total." 
 
 Section 6 (Machining Estimate). This section is 
 totalled to give the estimate of hours, wages (including 
 
FREDERIC A. PARKHURST IC"7 
 
 bonus) and material for each of twenty machining opera- 
 tions. The material column is to include only miscellaneous 
 material, such as screws and other parts purchased in con- 
 nection with the part being machined; and is not to include 
 the material in the casting itself. This item was taken care 
 of in "Section 4." The total machining labor for "Section 
 6" should appear in hours and amount in the right-hand 
 column followed by the total material. The next item 
 of burden represents the process rates for the number of 
 hours estimated as applying to each work point used in ma- 
 chining. These items sum up to the "Section 6 total." 
 
 The detail of the estimate is now complete. Sections 1, 
 2, 3, 4, 5 and 6 totals shall now be brought down to the 
 bottom of the estimate form in the summary section. To 
 the right of these totals appears the profit for each item as 
 well as the percentage which the profit represents of the 
 estimated cost. Methods of figuring profit are considered 
 in Chapter VII. The cross-addition of the total and profit 
 items represents the amount for the selling price columns. 
 This selling price is divided by the quantity of pieces in- 
 volved and the per piece selling price carried out into the 
 right-hand column. The footing of these 6 items gives the 
 total estimated cost and total profit, from which is obtained 
 total selling price and total selling price per piece for the 
 work covered by the estimate. A line is also provided on 
 which to show the sum of the price per pound in cases 
 where it is desirable to express the price in such manner. 
 It should be noted that the profit is not determined on a per- 
 centage basis. The percentage column in the summary part 
 of the estimate sheet referred to shows how much the per- 
 centage of profit actually is. It is simply a statement of 
 fact and not an indication of the method of determining 
 the said profit. 
 
LECTURE XIX 
 
 PROFIT AND RELATIVELY TRUE SELLING PRICES 
 
 7-A. Per Productive Hours. 
 
 7-B. Per Pound. 
 
 7-C. Per Piece. 
 
 7-D. Per Cent of Cost. 
 
 7-E. Mutual Satisfaction. 
 
 VIII. Conclusion. 
 
 The following discussion of the above subjects is reprinted com- 
 plete from Chapters VII and VIII of the author's "Predetermination 
 of Prices." 
 
 In the preceding- chapters the various factors involved 
 as influencing the determination of true costs and the com- 
 putation of estimates have been considered. Reference to 
 Fig. 1 6 will show a record of five methods used in determin- 
 ing profits. 
 
 The profit of a business is a variable circumscribed by 
 very broad limits, because the factors which should, seldom 
 control it. Scientifically, profit can be intelligentlv figured 
 if it is based upon correct, absolute costs. It is the writer's 
 object to show a systematic method, based upon working 
 practices, of computing profits to suit each of several actual 
 conditions confronting a business man. 
 
 It goes without saying, of course, that it should be the 
 object of every manufacturer to get as large a margin of 
 profit as possible consistent with the foundation of a per- 
 manent business and commensurate with the quality of 
 product to which that profit applies. 
 
 Prices should not necessarily be fixed by a definite mar- 
 gin based on the cost of a job, but sometimes by the value 
 of that job to the consumer. There are cases, of course, 
 where the actual cost of production is out of all proportion 
 to the intrinsic value of the piece as determined by ordinary 
 standards. In such cases the oddity of the job and the com- 
 plication of it give a cost apparently out of proportion. 
 
 1 08 
 
FREDERIC A. PARKHURST IO9 
 
 This, of course, is the customer's loss in one sense of the 
 word and he must expect to reimburse the manufacturer to 
 the full amount of the cost plus a reasonable profit. 
 
 In general, a reasonable profit should be interpreted as 
 meaning a profit based on what is a fair allowance over 
 and above the elements (direct and indirect) entering into 
 the cost of the product. The author does not believe that 
 there is a first-class up-to-date concern that will not be will- 
 ing to buy — all things being equal — at a price which will 
 net the vendor a profit of, at least, 10%. This being the 
 case, the matter simmers down (on a close competitive basis 
 of price fixing) to a certain amount added to the total cost 
 of the work including all items of cost (direct and indirect) 
 based on an honest distribution of overhead or burden. 
 This 10% may be added to the total cost of the job, as 
 shown by the cost summary, which, of course, must include 
 all differential burden, both hourly and pound. 
 
 The fact should not be lost sight of in adding profit to 
 determine a selling- price, that under the science of manage- 
 ment a firm has more to sell than its visible product. It has 
 engineering and technical ability to put at the customer's 
 disposal. It has service in the broadest sense of the word. 
 It assures quality and maximum production. All these 
 factors guarantee positive and definite shipping schedules. 
 They make it possible to not only . sustain the prevailing 
 prices, but to work toward an automatic adjustment of 
 prices based on the "value received" 03^ the buyer. 
 
 7-A. Per Preductive Hour 
 
 In the majority of business the writer prefers the method 
 of basing profit upon the productive hour except in cases 
 where necessity makes some other basis apparent. It is 
 just to assume that with a given plant and investment 
 running under fairly normal conditions, a certain net profit 
 should be realized. Of course the figure depends on the shop 
 conditions and the kind of work handled, but any invest- 
 ment should realize for the owners a fair percentage of 
 profit after all items of depreciation, expense of operation, 
 
HO PER POUND 
 
 reserve charges, etc., have been taken care of. It should be 
 borne in mind that the net earning in dollars and cents 
 which capital desires to realize also represents a certain 
 working capacity. This capacity can be brought down to 
 a figure representing productive hours. These productive 
 hours divided into the amount representing the desired earn- 
 ing capacity gives the rate per productive hour to figure as 
 a profit. Such an hourly profit figure is then used in connec- 
 tion with costs and estimates. 
 
 If one realizes that the entire basis of production and 
 payment is time, one expects to earn in a given time a net 
 amount of profit amounting to a certain figure. The profit 
 must be earned by the expenditure of so much direct time 
 to turn out that product. 
 
 In figuring the profit on a basis of so much per productive 
 hour, it is assumed, of course, that the indirect expense 
 covers everything in connection with miscellaneous ma- 
 terials, bad accounts, etc. The productive hour basis of 
 figuring profit represents a net profit for every direct hour 
 of work applying on the job. 
 
 7-B. Per Pound 
 
 The pound basis of figuring profit is applicable to cer- 
 tain lines of business where the percentage of labor is small 
 and where the logical unit to use is pounds or tons. This 
 method is the most commonly used in computing estimates 
 and profits in the average foundry business. Personal ex- 
 perience forces me to consider it an entirely erroneous 
 method to use in connection with foundry work. If profit 
 is figured on such a basis, the same error occurs that is 
 developed by the distribution of indirect expense, exclu- 
 sively, on a pound basis. Many foundry jobs require a 
 great many hours' labor to get out a comparatively small 
 tonnage, while others require very little labor to get out a 
 very large tonnage. It is not safe to rely entirely on profit 
 at so much per pound. 
 
 The profit on foundry work in the majority of cases, 
 assuming the average variety of work with its many fluctua- 
 
FREDERIC A. PARKHURST HI 
 
 tions and variations, should be figured on a basis of so 
 much profit for each direct hour expended on each indi- 
 vidual job. It is true that some figure might be included 
 as a small factor on the pound basis. This should only be 
 used, however, to compensate for some variation which 
 could be corrected only by the use of a pound factor. 
 
 7-C. Per Piece 
 
 The determination of profit on a basis of so much per 
 piece is the logical method to use in cases where the pro- 
 duction is one in which the logical unit of measurement is 
 piece. The ratio would need to be a fairly constant one, 
 however. Assume a condition where a concern is making 
 but one or a very few different articles, where the produc- 
 tion is large and the labor fluctuation is small, then a piece 
 profit may be a logical method to use. In other words, if 
 the desired profit on a certain volume could be as well 
 figured at so much per piece, and the piece unit is the con- 
 ventional term to apply to that product, then it is logical 
 to figure profit at so much per piece. 
 
 In considering the use of the piece profit understand 
 that the method is recommended only where, no complica- 
 tion occurs, from the possible changes in product, which is 
 involved by a number of kinds or sizes of pieces. In a 
 business where the production is controlled in a large meas- 
 ure by automatic or semi-automatic machines, where the 
 labor ratio is low, the piece basis of figuring profit is a 
 logical one. 
 
 7-D. Per Cent of Cost 
 
 This basis has certain advantages, particularly when ap- 
 plied to miscellaneous or experimental work which does not, 
 perhaps, represent any part of a certain line of product. 
 Even then the fact must not be lost sight of that a large 
 fluctuation in direct hours on various jobs is after all the 
 chief factor in work of such kind. It is probable that the 
 per cent of cost should more often be used in conjunction 
 with the hour method, so as to cover a percentage of profit 
 on quantities of material purchased for these special and 
 
112 PER CENT OF COST 
 
 experimental jobs. On this class of work there is a certain 
 expense directly incurred in connection with purchases, stor- 
 ing, handling of material and the carrying of accounts for 
 such material not part of a regular stock on which it is 
 fair to add a small percentage of the cost. This percentage 
 may be figured exclusively on the material. Then the direct 
 productive hour profit could be added as the regular profit 
 rate, thus taking care of the large volume of direct labor 
 involved. 
 
 There will be cases where there is some advantage in 
 using a combination of several methods of determining 
 profit. As suggested in the preceding paragraph, the com- 
 bination of a per cent and a productive hour basis is often 
 desirable. On the other hand, the indirect expense items 
 going to make up burden and which are charged into the 
 cost in any event, ordinarily take care of all items of cost 
 affecting the handling of material, carrying of doubtful and 
 bad accounts, etc. 
 
 7-E. Mutual Satisfaction 
 
 It is a well-known fact that a great many commodities 
 are sold on the established market prices. Supply and de- 
 mand ordinarily determine the market price on a great 
 many commodities and materials. The difference between 
 the available market price and the cost of the article to the 
 producer ready to ship represents a margin of profit which 
 in one sense can be described as a mutual satisfaction profit. 
 
 The term "Mutual Satisfaction" more particularly, how- 
 ever, applies to cases where a patented article is sold at a 
 price a great many per cent higher than the true cost of 
 it to the manufacturer. On the other hand, the article in 
 question has a value to the customer regardless of what it 
 cost the manufacturer. If an article is manufactured for 
 $i and can be sold for $2.00 or $2.50, and the customer 
 is perfectly willing and glad to pay $2.50 for it, the margin 
 of $1.50 represents a mutually satisfactory profit. 
 
 There are many special machines which have cost a great 
 deal to develop, selling at a price which apparently repre- 
 
FREDERIC A. PARKHURST II3 
 
 sents a very large margin of profit over the total cost to 
 the manufacturer. On the other hand, the purchase of such 
 a machine enables the purchaser to turn out his product very 
 much cheaper than he could otherwise do ; and he is only 
 too g'lad to buy at a price which allows the manufacturer 
 of the machine a very large margin. Mutual satisfaction 
 is undoubtedly the best term to use in describing this 
 method of determining profit. After all, a satisfactory and 
 fair price is one which both vendor and purchaser mutually 
 agree upon in a transaction between two. If both are con- 
 tent there can be no logical argument against such a method. 
 
 It is not the intention to suggest or advise the asking of 
 an exorbitant profit, just because the product is one which 
 the other fellow cannot buy elsewhere. If a vendor charges 
 an exorbitant margin of profit, he is inviting' a competition 
 which, though it may involve expensive designing and the 
 invention of new methods, will eventually lead to getting 
 on the market an article to compete with his. Competition 
 is, of course, a good thing. At the same time there is a 
 limit, and the average manufacturer will find that he ordi- 
 narily has more to gain by not getting the habit of charg- 
 ing exorbitant prices than he has by trying to boost values 
 beyond a fair limit. A good safe margin of profit which 
 shall amply protect against times of bad business, so mak- 
 ing the average a fair one, is a much better policy and will 
 result in a more permanent and staple business. 
 
 A purchaser is better satisfied to buy a product netting 
 the manufacturer a good margin of profit, when that manu- 
 facturer bases his profit on accurate costs. A complete 
 method of detailed distribution of costs permits the manu- 
 facturer to charge to his orders a fair margin of profit, 
 equally, on practically all of his product. One firm is not 
 paying an exorbitant profit on his order to offset the loss 
 on another firm's order. There is a great deal of business 
 being handled in these days at a loss, because the manu- 
 facturer does not know how much one article costs as com- 
 pared to others. If he doesn't know the individual cost of 
 an article how can he lower the cost on the unprofitable 
 article? 
 
114 MUTUAL SATISFACTION 
 
 As first stated in these pages, it is not sufficient to know 
 weeks after a job has been completed how much it will cost 
 and how much you can sell it for. This information should 
 always be at hand within a very close limit of variation 
 before the order is placed on the books. If the methods 
 described here are followed, the result will be a very marked 
 change in the figures representing the cost of various arti- 
 cles produced. Some of the supposedly profitable product 
 will be found to be exceedingly unprofitable, and that part 
 which was supposed to be unprofitable may be found to be 
 most desirable. In any event, the net result of the rear- 
 rangement will be a set of figures which will represent true 
 cost. These true costs plus a fair margin of profit will 
 result in a relatively true selling price. 
 
 A firm no longer needs to bid at so much a piece, or so 
 much a pound, or name such and such a price for an article 
 because it thinks competitors are going to quote approxi- 
 mately so much. Too often prices are quoted, based on the 
 assumption that a competitor will hold to a certain figure 
 and, "if we want the business we had better quote about 
 so much less." A firm knowing its true costs and selling 
 prices need never be afraid of quoting any selling price 
 regardless of what he thinks the other fellow may quote in 
 competition. No good business concern wants to buy an 
 article because it can buy it the cheapest as far as the face 
 price of it is concerned. What the customer wants is good 
 service. He is willing to pay a price that will allow the firm 
 giving that guarantee of service a living profit. The firm 
 deciding to quote by guess-work methods may have some 
 luck for a while, but must somehow, sometimes, shirk 
 something to "break even" on guess-work prices. 
 
 "All is not gold that glitters." Analyze your product. 
 Know your costs. The firm having true costs data at their 
 command need never fear competition, providing they real- 
 ize soon enough that they must also have a competent, pro- 
 gressive, and up-to-date sales organization with confidence 
 in its prices. Without the latter, their true costs and rela- 
 tively true selling prices will avail them little. 
 
FREDERIC A. PARKHURST II5 
 
 8 — Conclusion 
 
 This book covers what is probably the most vital branch 
 of any business. Without true costs on which to base sell- 
 ing prices, the stability of any business is, to say the least, 
 uncertain. The reader must not for a moment imagine that 
 the definition of the word cost as the author uses it is that 
 limited by, the dictionary. In other words, we should not 
 continually strive toward lower relative costs at the expense 
 of, nor to the knowing detriment of our fellow-worker or 
 employee. 
 
 Today we no longer associate the lowest cost Math the 
 least output in wages. In establishments employing the 
 most modern methods involved in the science of manage- 
 ment the lowest costs are realized when the remuneration 
 to the employee reaches the peak. Nor is the cold-blooded 
 comparision of facts and figures the only measure of value. 
 
 Modern striving for low costs, which under proper and 
 scientific management pays the highest wage, has resulted 
 in the improvement in a marked degree of working condi- 
 tions, as well as in the personnel itself. It is true that 
 many of the physical improvements in factory, equipment, 
 tools, safeguarding life and limb brought out in recent 
 years have often been prompted by selfish motives. On the 
 other hand, this work is becoming more and more general 
 from a strictly humanitarian standpoint. 
 
 We cannot overlook the personal factor. We realize as 
 time goes on that the satisfied and well-paid worker has an 
 economic influence which far exceeds his direct monetary 
 value to his employer. The highly paid workman has a 
 highly stimulated interest in his work. He becomes a 
 thinker. Being a thinker, he becomes better able to dis- 
 criminate between what is good for him and that which 
 is likely to prove detrimental. To continue his high pay, 
 he continues to care for himself. His opportunities are 
 greater. He lives better and does more for his family. 
 
 Other effects of this higher pay to the workman come 
 from his desire to better educate his children and become a 
 better citizen. He spends more and he saves more. As 
 
Il6 CONCLUSION 
 
 he begins to realize these things and what these changes 
 mean, he becomes a potent economic factor in public life. 
 His work is more productive, as he does more of a better 
 quality. He co-operates with his employer and his em- 
 ployer's organization. In other words, he is more or less a 
 partner in the business in that he gets a special extra remun- 
 eration for his cost reducing value, and he gets it in cash 
 every week with no questions asked. His bonus increases 
 as his efficiency increases. 
 
 All of the foregoing has its direct effect on costs. Not 
 because of the fewer hours spent to do a piece of work. 
 Far more important is the moral, harmonious and coopera- 
 tive influence of an efficient individual in an organization. 
 Only by such a condition can control be obtained of all the 
 elements entering into costs. 
 
 Economical operation and low cost means the maximum 
 efficiency in output of energy, high wages, and a conser- 
 vation of material and labor. A dollar saved is ioo per 
 cent, profit. A one dollar order from a customer may mean 
 10 cents or 15 cents (10% to 15%) profit. In the future 
 the successful business will begin its economy by eliminat- 
 ing wastes rather than by cutting wages and the sum total 
 of expenditures for a given output will become the objective 
 point of attack from which to eliminate. 
 
 Goethe said, "If the world is not governed by figures, 
 they at least show how the world is governed." If the 
 American business man, with his command of unlimited 
 and unexcelled resources of practical thought, capital, 
 equipment and energy, will govern his industrial world by 
 "true" figures and not guess work, his supremacy and that 
 of the American workman will be impregnable. 
 
LECTURE XX 
 
 THE TOOL ROOM 
 
 6-A. The Standardization of Methods and Tools. 
 
 XXVIII. Instruction for Tool Foreman. 
 
 XXIX. Instruction as to Tool Requirements. 
 
 XXX. Instruction for Care and Storage of Tools. 
 
 This lecture will discuss the details incident to the standardization 
 of methods and tools under section 6-A. forming part of Chapter VI of 
 the text. 
 
 The three instructions above noted will also be discussed in detail 
 and will be found in the Appendix of the text. 
 
 117 
 
LECTURE XXI 
 
 MANUFACTURING AND ERECTING 
 
 6-B. The Development of a Manufacturing System. 
 6-C. The Handling of Erection Work. 
 
 The above subjects will be discussed in detail following Chapter 
 VI of the text, with additional discussion of the work in other 
 factories. 
 
 118 
 
LECTURE XXII 
 
 TIME STUDY AND BONUS 
 
 7-A. Introduction of Time Studies. 
 
 7-B. Analysis of Time Studies and the Development of In- 
 struction Cards. 
 
 The above subjects will be discussed as outlined in Chapter VII of 
 the text, so as to follow the organization lineup at the Ferracute Ma- 
 chine Company. 
 
 II 9 
 
LECTURE XXIII 
 
 time study and bonus (continued) 
 
 7-C. Discussion of Piece Work, Premium, Bonus, Differential 
 Rate and Differential Bonus Systems of Wage Payment. 
 
 7-D. Method used by the Author to Compute Differential 
 Bonus. 
 
 This lecture will discuss the two remaining parts of Chapter VII 
 of the text, completing the study of this part of the subject as applied 
 to the Ferracute Machine Co. 
 
 I20 
 
LECTURE XXIV 
 
 time study and bonus (continued) 
 
 9. The Control of Methods and Labor through Time Studies 
 
 and Sub-Operation Times. 
 10. Time Study Foreman. 
 
 This lecture will discuss in further detail the work necessary inci- 
 dent to time study and bonus as indicated by the two above mentioned 
 divisions which are reprinted complete from the author's "Scientific 
 Management in the Foundry," sections 9 and 10. 
 
 The discussion of the subject in this lecture will cover considerably 
 more detail than did the preceding lectures on the same subject and 
 will also give the student an idea of the elements involved in the study 
 of foundry methods. 
 
 9 — The Control of Methods and Labor Through Time 
 Studies and Standard Sub-Operation Times 
 
 All of the above mentioned pre-requisites have their value 
 as a part of the whole. The actual savings they effect are 
 very great, but we come now to the most radical part of real 
 scientific management, that part which helps us immensely 
 in the development of all the branches of management that 
 have been mentioned earlier in this article and that part 
 which makes possible a larger production than is otherwise 
 obtainable. 
 
 Fundamentally we must obtain a thorough knowledge of 
 all factors in a condition to scientifically control it. To do 
 this we must first carefully analyze each thing we have to 
 do into all its elements. Having done this the next step is 
 to take up each branch or element individually and one at a 
 time. The chief element aside from material in foundry 
 work is labor. 
 
 The control of methods and the necessary labor element 
 are closely related. In one sense the method is distinct 
 from the labor necessary to make that method effective. On 
 the other hand we cannot dispense with the labor. Our 
 method may contemplate the most complex and efficient 
 
 121 
 
122 CONTROL OF METHODS AND LABOR 
 
 mechanical appliance, leaving but little for the human ele- 
 ment to do to realize great productiveness from it. Yet, 
 to repeat, we are helpless without the human factor. 
 
 In the perfection of methods we bring to bear specially 
 trained minds. The material and tools to be used are care- 
 fully determined. The proper combinations of help ( if it. is 
 gang job) are agreed upon. So too are the sequence of 
 operations and the time each shall take. All of these factors 
 are determined by careful study combined with the use of 
 the stop watch. 
 
 To best describe the author's method of making time 
 studies he gives below a modified copy of a set of instruc- 
 tions covering the duties of a time study foreman. This 
 instruction applies to a man in charge of time study work 
 in one of the large foundries in which the author is install- 
 ing his methods of scientific management. A large amount 
 of detail applying to that particular business has been 
 omitted for obvious reasons. The author hopes that the 
 following will impress the reader with the great importance 
 of this part of the work. Time study work well done is 
 the key to the success of the entire scheme. If improperly 
 or incorrectly carried out it is bound to plung'e the entire 
 scheme of organization into chaos. The final outcome can 
 be readily foreseen. 
 
 10 — The Time Study Foreman 
 
 The Time Study Foreman is a member of the planning 
 room force. He is a functional foreman and is directly 
 under the Production Clerk. Until the new methods are 
 thoroughly operative, however, the Time Study Foreman 
 will be directly under the Organizing Engineer and will be 
 responsible to him only. 
 
 These instructions cover the duties of the Time Study 
 Foreman and his one assistant. They are of course equally 
 applicable in the event that there are more than two men 
 employed on this work. The time study men are imme- 
 diately responsible to the Time Study Foreman, who will 
 be held strictly responsible for all branches of their work. 
 
FREDERIC A. PARKHURST 1 23 
 
 This also applies to men detailed temporarily from other 
 plants for instruction in time study work. 
 
 Too much stress cannot be laid on the importance of 
 the work covered by these instructions. This applies both 
 to the relative importance of this branch of the work to the 
 entire organization as well as to the fact that it is the most 
 important single element of the whole. The success of the 
 entire bonus system is dependent on the reliability of the 
 work of the Time Study Foreman and his assistants, and in 
 the accuracy of their investigations and records. 
 
 The observer or time study man should be a skilled man 
 of the trade under investigation. It is not absolutely neces- 
 sary that he be the fastest worker in the shop, but he must 
 be one of the best. Pride and enthusiasm in his work are 
 two of the chief essentials. To these may be added sound 
 judgment and an unbiased mind, and above all things, he 
 must be patient, exacting and extremely diplomatic. Many 
 opportunities will arise for carrying tales. Care must be 
 taken in conversation with the men that nothing is said 
 which can be misconstrued. These things make trouble and 
 must be absolutely avoided. A man who cannot observe 
 these regulations will not be allowed to have anything to do 
 with time study or bonus work. 
 
 The time study men must study the man as well as the 
 job. They must win and retain the confidence of those 
 with whom they come in contact. The time study men are 
 functional foremen in every sense of the word. As such 
 they come in contact sooner or later and more or less often, 
 with every workman in the shop. 
 
 The observer when making a time study, should be sure 
 to fill in all the information required at the top of the time 
 study form, as indicated by the printed matter. The Sub- 
 stance of the "note" at the top of this form should always 
 be borne in mind. Each job must be carefully and thor- 
 oughly analyzed into its various elements. The best se- 
 quence of operations, as well as the proper tools, feeds, 
 speeds and cuts (if a machine job) must be determined be- 
 fore the study is completed. This is a most important 
 
124 TIME STUDY FOREMAN 
 
 record and must always be complete in itself for later ref- 
 erence. 
 
 First of all there are a great many standard elemental 
 times to be determined and tabulated for us in connection 
 with time studies and instruction cards. These elements 
 occur repeatedly on all work of whatever nature which may 
 be done in the different types of machine or by hand. Once 
 determined, they represent a standard to be used in the 
 future for that particular machine or group of like machines 
 or other equipment. - In addition to the above, full data 
 must be tabulated covering all details of capacity, power, 
 adaptability, etc., of each machine, maximum feeds, cuts, 
 speeds, etc. Other elemental times are also necessary to 
 the expediting and standardizing of this work. For ex- 
 ample, standard time allowances for setting different kinds 
 of work in different types of machines, different sizes and 
 styles of clamps and bolts, time needed to raise different 
 weights from floor to machine, both by hand for small parts, 
 and by crane or hoist for larger ones. Different trades, of 
 course, all have different elemental operations. 
 
 All of these elemental times represent a much larger pro- 
 portion of a man's daily work than any one would at first 
 imagine. Although the class of work being done in a shop 
 may vary greatly, both in sizes and shapes, a great deal of 
 a man's time is consumed daily in doing the same thing 
 over and over again. This statement applies to getting 
 tools, starting and stopping his machine, setting and unset- 
 ting tools, making adjustments, performing hand opera- 
 tions, etc. Until an actual record has been made of the time 
 so consumed, and this record compared with the time the 
 same operations should take as proved by stop-watch obser- 
 vations, no one will be convinced of the true state of affairs. 
 The analysis of new work into its elements then becomes a 
 mere matter of applying standard elementary times to most 
 of the elements and calculating or observing the times for 
 the remaining few. 
 
 Before starting to make a time study, the right work- 
 man must be chosen for the job. He must be a fast and 
 
FREDERIC A. PARKHURST 125 
 
 conscientious worker and skilled at the kind of work, or 
 branch of the trade, under investigation. If such a man is 
 not available, and a "green" man is to be broken in, the ob- 
 server must demonstrate the various elements as the study 
 progresses. First of all (other conditions being propitious), 
 the man chosen to do the job must be one who is strictly 
 loyal and thoroughly in sympathy with the new methods. 
 Having chosen such a man, it is generally good practice to 
 pay him 25 per cent of his hourly rate as a bonus for follow- 
 ing instructions anad while working under the watch. This 
 payment should only apply as long as he continues to con- 
 scientiously do the best he can to assist toward an accurate 
 and fair time study of the job in question. After a number 
 of different men have become accustomed to working under 
 the watch, this 25 per cent bonus should be regularly paid 
 to each man when working under these conditions. 
 
 It will be somewhat difficult at first to win the operator's 
 good will and hearty co-operation. When it is made clear 
 to him that there are many elements in the job which can 
 be improved, such as a different way of rigging up the job 
 in the first place, or certain combinations of speeds, feeds 
 and cuts, and that he has a chance of earning from 20 per 
 cent to 40 per cent more wages under the new scheme, you 
 have then brought home to him wherein he is to benefit. His 
 work will at once become more interesting; hence, he can 
 do much more work with less fatigue. A man's mental con- 
 dition and environment are two factors which exert a most 
 far-reaching influence on his output. His own and the 
 employer's interest both require that these two factors be 
 given careful consideration. Under these conditions each 
 man is enabled to stand on his own feet. He is assured of 
 the remuneration that is commensurate with his ability. He 
 will not be wholly subject then to a prevailing rate of wages, 
 which in so many cases is most unjust to both employe and 
 employer. 
 
 Having chosen the man, the job must be studied and an- 
 alyzed. This may require much experimenting by trying 
 out one method after another. The tools and fixtures to be 
 
126 TIME STUDY FOREMAN 
 
 used must also be determined and listed so that for future 
 repeat orders the proper tools may be made ready in the tool 
 room and moved to the machine. This should be done in 
 advance of the time the job is scheduled to start. The ma- 
 terial must also be on the floor or at the machine or job. 
 
 In making a time study, every distinct sub-operation must 
 be timed separately. All time is expressed in minutes and 
 decimals on the time study form (see Fig. 6) after which 
 the time is transposed into hours and decimals and figured 
 to the nominal production per nine-hour day. Operation 
 times that are too short to be accurately timed individually 
 may be calculated. This may be done by taking the time for 
 say four sub-operations, then by deducting the time taken 
 for three to get the time for one. As the study progresses, 
 all unnecessary time should be noted and deducted. This 
 includes time lost due to a man's too slow movements, wait- 
 ing for or preparing tools, as well as delays from any other 
 source not necessary to the proper performance of the work. 
 
 After the work is under way, several time studies from 
 different pieces of the same lot (if there are more than 
 one) should be made on the one form. Three columns are 
 provided for this purpose. In addition the column to the 
 right is to be filled in showing the time that is finally decided 
 on for each sub-operation. Eventually all elemental times 
 will be standard and the times shown for them on the time 
 study form will be ignored except to account for much waste 
 time. Ten or twelve sheets are often required for one piece, 
 or job, if it be a large or intricate one. The time study 
 when completed will show all the detail times, equal in 
 amount to the total elapsed time. It must be borne in mind 
 that each study is based on a certain design of piece, made 
 of a certain material, using specified equipment and tools, 
 and is not to apply if one or more conditions are changed. 
 The man, however, is the variable factor. 
 
 The kind and quality of material has also to be laken into 
 consideration. Lack of material or faulty equipment will 
 often prevent a man from earning bonus. The difference 
 in quality of the material is beyond the control of the man, 
 
FREDERIC A. PARKHURST 12J 
 
 and if it prevents his earning a bonus, the management must 
 expect to make an adjustment. No allowance, however, is 
 to be made for delays in manipulation of the machine, work 
 or tools. A shut-down of the machine for adjustment, 
 cleaning, or minor repairs, will not be allowed unless it is 
 shown beyond question that these delays were in no way 
 due to the operator. In some cases, however, the job may 
 be stopped, due to any of the above mentioned delays, and 
 the operator put on other work. When the job is finally 
 resumed, the total time elapsed while it was being worked 
 on is used in determining the time per piece. It is up to 
 the functional foreman to see that the machine and equip- 
 ment are in proper shape before work is started on any job. 
 
 It must not be assumed that it is always an easy matter 
 to get a sufficiently accurate time study, and hence a good 
 set of instructions. In point of fact, time studies some- 
 times have to be made at different times from several suc- 
 cessive lots or jobs before a satisfactory instruction card 
 can be issued or a bonus rate set. The time study man must 
 often spend several consecutive days on one job, before he 
 can get a satisfactory study. When this has been obtained, 
 however, it is a comparatively easy matter to write up the 
 instruction cards. These instructions, when written, form 
 the permanent standard for that operation, until a change 
 in one or more of its conditions necessitates a new one. The 
 record in itself looks simple, but the preliminary work in- 
 volved can be only appreciated by one who has been actively 
 engaged in this kind of work. 
 
 The reader must not be misled in thinking that after 
 a satisfactory time study has been taken and the instruction 
 card made out, there is nothing more to be done. As often 
 as not, this point marks the beginning of a more or less 
 lengthy period of patient and systematic coaching*. In the 
 first place, several different men will probably work on as 
 many successive lots. Until these men have been thor- 
 oughly accustomed to bonus work, they will not perform 
 the operation as fast as they can eventually. This is true 
 also of machine operators who perhaps run the same ma- 
 
128 TIME STUDY FOREMAN 
 
 chine from one end of the year to the other, but on many- 
 kinds of work. Most men are more adept at one class of 
 work than they are at another, even though it is performed 
 on the same machine. Again, their mental attitude must 
 be considered. They think that although they can earn 
 ten or twelve cents an hour bonus on one job, they can make 
 nothing on some new job. All these conditions and differ- 
 ences of opinion must be met and the employe instructed un- 
 til he becomes proficient on each job put to him under bonus. 
 This method also results in placing men at the work they 
 are best fitted for. They cannot continue to work indiffer- 
 ently for perhaps years when they should have been on 
 other jobs or working at some other trade. The writer 
 has in mind a number of jobs which took from six to four- 
 teen months of unremitting, patient labor on his part before 
 a cent of bonus was earned on them. 
 
 If one or more men do not begin to immediately earn 
 bonus after a bonus price has been set, the circumstances 
 must be taken into consideration. They must be given an 
 opportunity to appreciate the fact that the job contains ele- 
 ments which they were before unfamiliar with. Make them 
 realize that they have been shown how they can do the 
 work quickly if they are so inclined. I quote an example 
 which came up in our core room the other day, which is a 
 particularly good illustration of this point. I refer to a half 
 housing core, core box 3, for a transmission, bonus chart 
 No. 53. This job had been run under day work from 75 
 to 85 cores a day and in the judgment of the foreman 90 
 cores could be made in nine hours. A time study on this 
 job was made personally by the writer and afterwards a 
 more systematic study was made by the Time Study Fore- 
 man. The result was that the job figured .83 minutes per 
 core. Making an allowance of about 10 per cent, the maxi- 
 mum bonus production was figured on a basis of 0.9 min- 
 utes per core. This means a production of 600 cores per 
 day for one man at the bench. Bonus was started at 70 per 
 cent of this production (420) and the chart above referred 
 to was issued on this basis. 
 
FREDERIC A. PARKHURST 1 29 
 
 It is a pretty radical proposition to take a "75 to 90 a 
 day" job based on the best judgment of the man in charge 
 of that department and attempt to jump it to 420 before 
 the man can earn any extra remuneration. The man who 
 had been working on this job refused to work under bonus 
 and walked out. A strange man was put on the job and 
 for the first day's work made 460 cores. On the second day 
 he made 537. The foreman in this department then ad- 
 mitted that he believed a man could make 600 of these cores 
 in nine hours. The job after a few days ran from 550 to 
 600 per day. This example is recorded here as a good illus- 
 tration of the apparent radicalism of some of the results de- 
 sired under new methods. 
 
 Be perfectly sure of your facts, then instruct and assist 
 the men in every way in realizing the results you aim for. 
 Keep an accurate record of the time you consume while 
 making each time study and if the men are cooperating with 
 you and trying in every way to assist you in making this 
 study, see that a bonus pay slip is turned in for an amount 
 equal to 25 per cent of their wages for the time they were 
 working under the stop watch. Be perfectly open and frank 
 with them while taking time studies and do not get the habit 
 of letting them think you are taking time studies secretly. I 
 am not referring now to making the general superficial 
 study of the job and taking the elapsed time, keeping the 
 watch in the pocket. This method is allowable under cer- 
 tain circumstances as long as it is done discreetly and just 
 as a rough check on conditions. There are only a few cases 
 where such a method is necessary and the writer knows of 
 none where it is desirable. 
 
 When taking time studies or arranging the order of work 
 and teaching the men how to perform such work, be sure 
 to make them realize the advantage of working at a 
 steady gait. Do not let the men continue the habit which 
 a great majority of them have; i. e. trying to put up a 
 large proportion of the day's work during the morning 
 period. We have been able to get our men away from 
 this habit and it will be noticed that on practically every 
 
I3O TIME STUDY FOREMAN 
 
 bonus job now running an average gait is maintained 
 throughout the day. If the jobs were checked over at noon, 
 you would find that almost invariably there is 5-9 of a day's 
 work completed at 1 1 :3c Such a condition is a most de- 
 sirable one; the men can do more work with less fatigue 
 than in any other way. For general information, it may 
 be mentioned here that there is a certain limit to which a 
 man can go before becoming unduly fatigued. If a very 
 short rest period is taken at this time, a matter of only a 
 few moments even, it will recuperate a man so that he can 
 resume at his maximum speed. Let him work a little 
 longer, however, at his maximum speed and it will not re- 
 quire a proportionately increased period of rest to recu- 
 perate, but the period will have to be many times longer. A 
 slower average gait steadily maintained as above stated re- 
 quires a great deal less effort for a greater production. 
 
 As each job is taken up and investigated preparatory to 
 making a time study, be sure to get an accurate record of 
 how the job is run, the number of men, and their rates. 
 Also get an accurate record of the production per clay both 
 in gross work and net amount of good castings, cores, or 
 whatever unit applies to the job. This information is very 
 essential for comparative purposes as well as to check out 
 your cost after you determine the new way of arranging 
 the job combined with the anticipated production. Very 
 often it is necessary to change a method and at other times 
 it is a very undesirable thing to do. 
 
 After you plan the arrangement of a job on the floor or 
 bench, be sure to see that you provide a sufficient quantity 
 of material. No matter how willing the men they cannot 
 work to advantage (nor can you get a satisfactory study) 
 if the flow of material is not sufficient to keep the gang 
 well supplied and far enough ahead so that they do not see 
 the possibility of a tie-up. You must not forget that the 
 average workman is very clever at gaging his speed to suit 
 conditions. Do not under any circumstances think that 
 the men you are dealing with are fools, especially if they are 
 of a different nationality and do not understand English. 
 
FREDERIC A. PARKHURST I3I 
 
 You will find that the minds of such men are peculiarly 
 active. They are very quick to see an opportunity and 
 take advantage of it. They are also exceedingly sensitive, 
 far more so than the average better educated person. 
 
 Restrict each job, whether it is a one man job or a gang 
 job, to a certain but sufficient amount of floor, rack and 
 bench space. Be careful to make your arrangement of 
 work such that the different material and equipment is 
 handy and can be reached and manipulated without an un- 
 due amount of travel or useless motions; on the other hand, 
 allow sufficient room to work to advantage. 
 
 It is a mistake (except perhaps in isolated cases) to work 
 more than two to six men and boys in a gang on bonus. 
 The individuality of each man is lost and no one in the 
 gang can work to the best advantage for several reasons : 
 chiefly because men vary in capacity. When in too large 
 a gang all are not congenial, are apt to be more or less 
 jealous and antagonistic, or feel that each one is not doing 
 his share and hence holding - the others back. Work which 
 can be done by a large gang must be so divided into sections 
 that each section can be handled as a unit by one or two 
 men. The result is the equivalent of a number of small 
 individual units or jobs which at a certain stage of comple- 
 tion, are themselves assembled in a short time, and perhaps 
 by a number of men, into the completed work. In a case 
 of this kind each unit or section is inspected separately as its 
 assembling progresses. The final inspection takes place 
 after the work is complete. 
 
 In the capacity of a time study man be careful to avoid 
 any suggestion of usurping the authority of the foremen 
 or gang bosses. They fully understand the relation of your 
 work to their own ; at the same time when you are ordered 
 to take a time study of a job, arrange with the foreman 
 and let him formally turn the men over to you. Very often 
 the foreman will have good reasons for wanting to post- 
 pone the starting" of such an investigation. These reasons 
 may be due to promises that he has made in regard to his 
 work, or to the fact that there is some change in equip- 
 
132 TIME STUDY FOREMAN 
 
 ment being made, etc. Such factors should be considered, 
 but in every case report back to your superior. He may 
 have more important reasons for wanting the study to 
 start at once than those which have been given you for de- 
 laying it. Where you have occasion to criticize or suggest 
 improvements in methods generally on jobs which you are 
 not personally handling, take such matters up with the 
 foreman or other proper authority. Do not give men in- 
 structions unless it is on a job which has been standard- 
 ized. In such cases it is up to the Time Study Foreman 
 and his assistants to maintain these jobs in their standard 
 condition. 
 
LECTURE XXV 
 
 time study and bonus ( continued) 
 
 11. Time Study Instructions in Detail. 
 
 12. Standard Elemental Sub-Operation Times for Floor Work. 
 
 13. Standard Sub-Elemental Operation Times for Bench and 
 
 Squeezer Work. 
 
 14. Standard Miscellaneous Data. 
 
 15. General Instructions to Time Study Men. 
 
 This lecture will cover in detail the above subjects reprinted com- 
 plete from the author's "Scientific Management in the Foundry" sec- 
 tions 11 to 15 inclusive, giving further information as to the applica- 
 tion of these methods to the foundry business. 
 
 11 — Time Study Instructions in Detail 
 
 All observations in the form of time studies, either rough 
 superficial investigations or detailed stop watch observa- 
 tions are to be recorded on the time study form (see Fig. 6). 
 These forms are to be numbered in consecutive numerical 
 order, commencing at i. Particular care must be exercised 
 when starting a study on any piece of work to be sure that 
 all of the information called for by the printed matter at 
 the top of this form is filled in. When more than one sheet 
 is used in recording the time study, these sheets must be 
 numbered and the total number of sheets and "sheet num- 
 ber" ( — Sheet, sheet — ) filled in on each sheet belonging 
 to a set of time studies. 
 
 As a general word regarding time studies, the note 
 
 printed near the top of the time study form should have 
 
 particular attention, namely — 
 
 "The observer must exercise extreme care in making time 
 studies to see that the proper sequence of operations is main- 
 tained, that all unnecessary operations or moves are eliminated, 
 that proper appliances are provided and if machine work, see 
 that the proper and most economical combinations of Speed, 
 Feed and Cut are used. When time is slow, due to man's natural 
 slow moves, note (in margin at extreme right below) what the 
 time should be for a fast man moving at his best normal speed. 
 Have certain operations repeated if necessary to satisfy yourself 
 that the time is correct and continue to do so until the study 
 is satisfactory." 
 
 !33 
 
134 TIME STUDY INSTRUCTIONS 
 
 The note is printed on the form so that it may always be 
 a continual brief reminder of the several very important ele- 
 ments to be considered in connection with time study work. 
 These are elaborated on in considerable detail below but too 
 much emphasis cannot be laid on their importance. Each 
 time study or observation, whether one of a series of studies 
 of standard elemental sub-operations, or a time study of 
 some specific operation or job, should always be conducted 
 in a systematic and routine manner and in strict accordance 
 with the following: — ■ 
 
 a — Take nothing for granted, get all the facts and do not 
 jump at conclusions; let these facts lead you to a conclusion 
 and you will seldom go wrong. 
 
 b — -Prepare the heading on the time study form above re- 
 ferred to, filling in all the data called for. 
 
 c— Use a decimal stop watch and express all time in minutes 
 or hundreths of a minute (see Fig. 7). For each sub-operation 
 (note explanation in (d) make at least 3 observations. The 
 first of these observations should not be made until the job is 
 rigged up and arranged in the manner in which it is to finally 
 run, until the men have become thoroughly familiar with what 
 is to be done, and until they have obtained a maximum amount 
 of dexterity in the manipulation of the work or, tools. The sec- 
 ond and third observations should not necessarily follow con- 
 secutively after the first. Sometimes it will be of advantage to 
 do this and at other times, it will be better to make the second 
 and third observations at intervals of perhaps several days. The 
 conditions of the job and its nature, as well as other influencing 
 factors will settle this point. 
 
 The "average time" (for which a column is provided) is a 
 matter of calculation and can be done after the study is com- 
 plete. Very often, however, it will be necessary to fill in the 
 time the job should take (for which the extreme right hand 
 column is provided) at the time the three observations are being 
 made. Conditions govern this, but there will be occasions when 
 there is a definite loss of time on a sub-operation due to certain 
 hindrances which can be corrected at the time the observations 
 are being made. If the correct time is not noted immediately, 
 it may be overlooked. 
 
 d — Reference has been made above to "sub-operation ;" it will 
 be noted that on the second line of the heading of the time study 
 form, the third item is "operation." (See Fig. 6). Operation 
 as here used means the general operation or job under observa- 
 tion. This general operation may consist of a great many sub- 
 operations, some of them being purely elemental and continu- 
 ously repeated, no matter what the particular job is that is being 
 worked on. Other sub-operations are special to a particular 
 operation or job. This explanation is put in here so that the 
 words "operations" and "sub-operations" will not be confused. 
 
FREDERIC A. PARKHURST 1 35 
 
 To further explain — suppose we are taking a time study on a 
 molding operation, say for a simple floor job conducted by one 
 man. The entire work of making this mold is an operation. 
 Placing the bottom board, setting the pattern, dusting on parting 
 sand, setting sprues and risers, setting flasks, shifting the first 
 layer of sand, setting nails and gaggers, shoveling sand, ram- 
 ming, striking off, etc., are all "sub-operations" of a "molding 
 operation." A similar explanation is applicable to coremaking. 
 knockout, trimming, soldering, etc., all of which are ''opera- 
 tions." Note — See paragraph (g). 
 
 e — The next step is to see that the equipment which has been 
 provided for the operation is operative and arranged to the best 
 advantage on the floor, bench or other place provided. It is 
 essential that no more floor space be devoted to a job than is 
 necessary for the maximum amount of work; on the other hand, 
 it is equally inefficient, often more so, to provide too little space. 
 In work calling for the co-operation of two or more men, their 
 respective "sub" or "part" (see g) based on the time they take, 
 operations should be so arranged that the men can work in 
 unison and with the minimum of delay. Be sure that the tools 
 are in first class condition and in sufficient quantities, and that 
 the man knows how to handle them. (See m). 
 
 If the best arrangements cannot be determined beforehand, 
 make experiments enough to determine this point beyond ques- 
 tion before proceeding further. In such cases, see that your 
 time study form shows an explanation of what this arrange- 
 ment should be. This may be written in the body of the form 
 in the column headed "detail description of operations, speed, 
 cuts, etc." 
 
 f — Having arranged the above-mentioned preliminaries, the 
 next thing is to carefully study the personnel of the employes. 
 A careful study of this phase of the problem will show that a 
 great many men are misplaced and are doing either the wrong 
 kind of work, or are not fitted for the particular part of the kind of 
 work they are doing. This is particularly noticeable where gang- 
 work is involved. Very often the men doing the hard physical 
 labor requiring little or no skill are the men physically less fitted 
 for the kind of work. We likewise too often find as a result of 
 precedent, a skilled molder employed as a gang boss on a mold- 
 ing floor setting cores on a class or work for which only a 
 bright, though inexperienced man is necessary. "Misfits" such as 
 these are innumerable, except in the most highly developed or- 
 ganizations. 
 
 The personal factor is the one great element to be watched, 
 studied, "placed" and controlled before permanent improvement 
 in methods is possible. All these conditions should be taken into 
 consideration as first stated, and the gangs rearranged to suit 
 the job on which they are to be employed. Such changes should 
 be taken up through the planning room and the department fore- 
 man. It is fully appreciated that we cannot always make up 
 gangs to suit every individual job. We can, however, regulate 
 our work more or less by classes and divide our gangs into 
 similar classes. Keep each class of workmen as much as pos- 
 sible on the class of work for which thev are best fitted. 
 
I36 TIME STUDY INSTRUCTIONS 
 
 g — The next step is to study the details of the job and in a 
 general way separate it into several parts. For example — if it is 
 a "gang" molding job, the work on the cope would be consid- 
 ered one general part of the operation and the work on the 
 drag would be considered another general part of the operation. 
 Other "part operations" would be finishing, core setting, green 
 sand coremaking, closing and clamping molds, setting pouring 
 cups and cups and dumping out. Study each part of the work 
 as though it were a complete "operation" then sub-divide it into 
 its sub-operations. In doing this be sure that all unnecessary 
 moves or sub-operations are eliminated. Where more than one 
 man is working on a sub-operation or part operation, see that 
 their respective sub-operations are so timed that they are being 
 done together. In other words, if three men are working on a 
 cope each of them should have something to do all the time 
 that the cope is in their hands ; one or two should not be obliged 
 to stand and wait while the one finishes his delayed sub-opera- 
 tion. I have timed many jobs where only two men were in- 
 volved, and found that they have taken more than twice as long 
 as they should for the reason that the above-mentioned points 
 were utterly ignored. 
 
 Before taking up the next step, be sure that the division of 
 the job into its several parts just mentioned, is complete and 
 logical and that you are thoroughly familiar with each sub- 
 operation or each part of an operation. Take nothing for granted 
 and see and understand for yourself exactly why, when and how 
 every sub-operation is performed. Then, and only then, can 
 you know how to proceed or feel you are on the right track. 
 
 h — Take each part of the operation and list on the time 
 study form in the logical and practicable sequence its various 
 sub-operations. Also clearly state under each part the number 
 of men involved and where a sub-operation is done by two ot 
 more men be sure to note beside it the number of men. In 
 timing sub-operations be sure to see that an entire combination 
 going to make up the particular operation are working smoothly 
 and that the rough elapsed time is fairly even. Having done 
 this, each sub-operation can be timed independent of all other 
 considerations. Do not lost sight of the fact that the decimal 
 stop watch is arranged to stop and start, accumulating time of 
 each successive operation and need not be thrown back to zero 
 until the sub-operation is completed. If you have started the 
 time on a sub-operation and something interferes with the con- 
 tinuation of it, or causes a delay, sto.p the watch until the job is 
 resumed at this point and at a normal speed. To illustrate — 
 you may hold the watch on a sub-operation for twenty minutes 
 total elapsed time, but if you follow the above instructions, the 
 watch will sometimes show only perhaps five or six minutes 
 (or less) as the actual required time for that sub-operation. 
 
 The manipulation of the watch on the above basis (and 
 judgment of what time to eliminate) is one of the chief essen- 
 tials when taking time studies. If a time study man cannot 
 master this part of the work and always be sure of the correct- 
 ness of his time studies, he cannot hold his position. You will 
 find that the average workman often unintentionally combines a 
 great many useless operations. This condition will be found 
 
FREDERIC A. PARKHURST 
 
 37 
 
 most often where you have laid out a method of operation dif- 
 ferent from that to which he has heen accustomed. Under such 
 circumstances you must expect him to make mistakes and do 
 things in their improper order or do unnecessary things. These 
 should be eliminated. In other words, if the above instructions 
 have been followed out, you have determined a definite method 
 and sequence of operations and you are only expected to take 
 the time of these necessary operations. These are the times 
 which are to appear in the columns marked "1," "2" and "3" on 
 the time study form, figures 6 and 7. 
 
 Do not lose sight of the fact that under the new methods 
 each employe has fewer things to do than formerly. Do not al- 
 low time taken in getting material to him or his work away 
 from him. Preparation and care of tools (dressing, grinding, 
 repairing, etc.) are not up to him; neither is inspection, looking 
 up and preparing his next job, keeping time and similar work 
 formerly saddled on the workman. In the foundries, dumping 
 out, pouring off, laboring, etc., are all specialized where formerly 
 these things were done more or less by everyone. 
 
 i — In making time studies or observations on other than stan- 
 dard elemental operations, it is not necessary to take the time 
 of any standard elemental sub-operation involved on that par- 
 ticular job. As explained below, all the standard elemental 
 operations will be charted and standard times determined for 
 them. These standard elemental operations will be numbered 
 numerically. Where they form sub-operations as explained 
 above, they may simply be referred to on the time study form by 
 number. When you come to figure up the right hand column to 
 show the time the job should take, the standard elemental time 
 should be taken from the standard elemental time sheets. You 
 will find that eventually the actual time study work involved will 
 be very small, and then only for exceptional work. The time for 
 the majority of operations can be taken from the standard 
 elemental time sheets. 
 
 j — Under no circumstances base a time study on the speed of an 
 unusually fast man ; the same thing applies to the unusually slow 
 man, as in either case the result of your time study would be of 
 no value. It must be clearly borne in mind that what we want is 
 the correct time that the job should take when done by the 
 average fast, industrious workman of the type and qualifica- 
 tions necessary for that particular kind of work. Do not be 
 afraid to take averages and the more time you take as a check 
 the better. Furthermore, bear in mind that what time you are 
 taking is to be used as a basis for issuing bonus charts, the 
 prices on which are under no circumstances to be lowered as 
 long as the job remains the same or is done by the same tools, 
 equipment, methods, etc., as were in use when the bonus chart 
 was figured. It is one of the fundamental principles of my 
 methods of Scientific Management that the facts be correctly 
 determined in the first place and that a schedule in prices or 
 bowus chart is to remain unaltered. The success of the entire 
 scheme ninges upon this one thing. You must solicit the co- 
 operation of the men, and win and hold their confidence. Super- 
 judgment is necessary; be sure you are right and take time 
 enough to do your work well. 
 
I38 TIME STUDY INSTRUCTIONS 
 
 k — Having completed the time study with at least three sets 
 of final observations, the average time should be figured out for 
 each sub-operation and filled in on the sheet. Sub-operation 
 times should be totalled for each part of the general operation 
 and these "part operations" compared. Then fill in the time 
 that the work should take, doing this by part operations so that 
 the various part operation times may be compared. This really 
 is the time that you have got to work on. Where it is shown 
 that one part of an operation takes longer than another part and 
 that these parts must be completed in substantially the same 
 time, it is obvious that something must be done to balance up the 
 time on the slow part. You know that theoretically the fast 
 operation represents the best normal production for the job. 
 An extra man must be put on the slow operation or some other 
 change made to balance it up with the fast one. When making 
 such a change, it is well to make an additional time study as a 
 check on your figures before issuing instruction cards or bonus 
 charts to the workmen. 
 
 1 — On some jobs, operations, or particular classes of work 
 there will be a number of sub-operations which are incident only 
 to the entire job as a whole. For example — when a new job is 
 started there may be instructions to explain, there may be draw- 
 ings to become familiar with, there may be certain arrangement 
 of the work on the floor, or in the machine which, having once 
 been done, apply to the entire quantity or until the job is com- 
 pleted. Such elements in some cases may be standard elemental 
 operations or they may be special to that job. In any event they 
 are what we call lot operations and the times for them are known 
 as lot times. In cases where these lot operations are repeated 
 daily, a proportion of their total should be allotted to the opera- 
 tion under investigation based on, we will say, one day's work. 
 A day's work constitutes a certain given production. The lot 
 time distributable to a day's work should be divided by this 
 number of pieces based on the time study and an item included 
 on the time study to represent the lot time. 
 
 Where lot times are such that they are not repeated, or can- 
 not be proportioned to any definite amount of product as may be 
 the case where a new job is started, and is being rigged up, this 
 time may be or may not be included in the individual piece 
 operation time. In such cases it will be assumed that this lot 
 time has been spent once and for all, no matter how long the 
 job runs. In such a case, consider it a "part operation" and 
 get your study of it for further reference. Likewise, where 
 there may be certain lot operation times at the completion of a 
 job which has run a great many days or weeks, this may be con- 
 sidered as a factor not particularly affecting the operation times. 
 This is so considered as far as time study work is concerned 
 (except as explained above) but of course such distributable lot 
 time is all charged up to the cost of the job. 
 
 m— In studying operations as above described, be sure that 
 the necessary work at the beginning of the day or at the close 
 of the day's work is included in your time study. Such work is 
 essentially a lot operation, the time for which is "Lot Time" 
 referred to above in paragraph (1). The care which tools 
 should be given at night and the order in which the floor, bench. 
 
FREDERIC A. PARKHURST 1 39 
 
 machine or job must be left should be clearly settled and the 
 allowance of time for putting it in such condition provided. 
 Such times are primarily daily lot times and are easily distribu- 
 table pro rata to each operation performed for the day's work. 
 In specifying the condition of equipment be sure that tools which 
 are liable to rust are kept clean and well oiled and also see that 
 the mechanical equipment provided is kept well oiled and ad- 
 justed, either by the operators themselves or by the mainte- 
 nance department. Report all cases of abuse of tools. Do not 
 let men use a shovel for an axe or as a crowbar. 
 
 12 — Standard Elemental Sub-Operation Times 
 For Floor Work 
 
 Reference has been made above to standard elemental 
 operations; these are more correctly described as standard 
 elemental sub-operation as they are really sub-operations, 
 combinations of which form "operations." The method of 
 procedure in taking standard elemental times is the same 
 as described above in considerable detail and as there stated, 
 this description applies to all types of time study work. It 
 is essential that before much general time study work is 
 undertaken, we determine these standard elemental times. 
 
 The following (see Table I) is given as representative 
 of the more important standard elemental operations for 
 foundry work. It will be noticed that the following table 
 is divided into two classes. One class includes those times 
 which are influenced almost solely by the size or weight of 
 the flask used. The other class representing those opera- 
 tions which are more or less dependent on the kind of 
 equipment or method in use. In the first class a different 
 time will be realized for each sub-elemental operation for 
 each flask in use. In the second class, the same is true for 
 each sub-elemental operation for each flask in use, except 
 that there is the additional factor that the same combination 
 may be used in any one of the five or six methods, namely : 
 
 Bench Molding (Hand & Machine) 
 
 Floor Molding 
 
 Hand rollover machines 
 
 Power rollover machines 
 
 Stripping plate machines 
 
 Jar ramming machines 
 
 Other methods may come into future use. 
 
 The above items are illustrative rather than specific. 
 
140 
 
 STANDARD ELEMENTAL SUB-OPERATIONS 
 
 TABLE I 
 
 STANDARD ELEMENTAL SUB-OPERATIONS FOR FLOOR MOLDING 
 
 Ref. 
 
 No. 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5- 
 
 6 
 
 7 
 
 8 
 
 9 
 10 
 11 
 12 
 13 
 14 
 15 
 16 
 17 
 18 
 19 
 20 
 21 
 22 
 23 
 24 
 25 
 26 
 27 
 28 
 29 
 30 
 31 
 32 
 33 
 34 
 35 
 36 
 37 
 38 
 39 
 40 
 41 
 42 
 43 
 44 
 45 
 46 
 47 
 48 
 49 
 50 
 
 Flask 
 
 Sup-operation 
 
 Brush off pattern 
 Blow off pattern 
 Dust on parting 
 Set 10 lb. flask 
 Set 20 lb. flask 
 Set 30 lb. 
 Set 40 lb. 
 Set 80 lb. 
 Set 60 lb. 
 Set 70 lb. flask 
 Set 80 lb. flask 
 Set 90 lb. flask 
 Set 100 lb. flask 
 Set 120 lb. flask 
 Set 140 lb. flask 
 Set 160 lb. flask 
 Set 180 lb. flask 
 Set 200 lb. flask 
 Set 220 lb. flask 
 
 flask 
 flask 
 flask 
 flask 
 
 Set 
 Set 
 Set 
 Set 
 
 sprue 
 sprue 
 sprue 
 sprue 
 
 Set 1 riser 
 Set 2 
 Set 3 
 
 Tl T2 T3 T4 Etc. 
 
 riser 
 
 riser 
 Set 4 riser 
 Set 5 riser 
 Set 6 riser 
 Set 7 riser 
 Set 8 riser 
 Set 9 riser 
 Set 10 riser 
 Set 11 riser 
 Set 12 riser 
 Sift sand ^-inch deep 
 Sift sand y 2 -mch deep 
 Sift sand on pattern 1 
 Sift sand on pattern 2 
 Sift sand on pattern 3 
 Sift sand on pattern 4 
 Sift sand on pattern 5 
 Sift sand on pattern 6 
 Sift sand on pattern 7 
 Sift sand on pattern 8 
 Sift sand on pattern 9 
 Sift sand on pattern 10 inches high 
 Sift sand on pattern 11 inches high 
 Sift sand on pattern 12 inches high 
 Press sand around pattern 
 
 nch high 
 nches high 
 nches high 
 nches high 
 nches high 
 nches high 
 nches high 
 nches high 
 nches high 
 
FREDERIC A. PARKHURST 
 
 141 
 
 51 
 52 
 53 
 54 
 55 
 56 
 57 
 58 
 59 
 60 
 61 
 62 
 63 
 64 
 65 
 66 
 67 
 68 
 69 
 70 
 71 
 72 
 73 
 74 
 75 
 76 
 77 
 78 
 79 
 80 
 81 
 82 
 83 
 84 
 85 
 86 
 87 
 88 
 89 
 90 
 91 
 92 
 93 
 94 
 95 
 96 
 97 
 98 
 99 
 100 
 101 
 102 
 103 
 104 
 105 
 106 
 
 Tuck straight bans 
 Tuck slant out bans 
 Tuck vertical bans 
 Tuck irregular bans 
 Shovel in 4 inches sand 
 Shovel in 5 inches sand 
 Shovel in 6 inches sand 
 Shovel in 7 inches sand 
 Shovel in 8 inches sand 
 Shovel in 9 inches sand 
 Shovel in 10 inches sand 
 Shovel in 11 inches sand 
 Shovel in 12 inches sand 
 Shovel in 13 inches sand 
 Shovel in 14 inches sand 
 Shovel in 15 inches sand 
 Ram 4 inches sand "light" 
 Ram 4 inches sand "medium" 
 Ram 4 inches sand "hard" 
 Ram 6 inches sand "light" 
 Ram 6 inches sand "medium" 
 Ram 6 inches sand "hard" 
 Ram 8 inches sand "light" 
 Ram 8 inches sand "medium" 
 Ram 8 inches sand "hard" 
 Fill flask 3 inches above top 
 Fill flask 4 inches above top 
 Fill flask 5 inches above top 
 Fill flask 6 inches above top 
 Step off 
 Butt ram 
 
 Level off "shovel" 
 Level off "hard" 
 Strike off 
 Pull 1 sprue 
 
 sprue 
 
 sprue 
 
 sprue 
 
 riser 
 
 Pull 
 
 Pull 3 
 
 Pull 4 
 
 Pull 1 
 
 Pidl 2 riser 
 
 Pull 3 riser 
 
 Pull 4 riser 
 
 Pull 5 riser 
 
 Pull 6 riser 
 
 Pull 7 riser 
 
 Pull 8 riser 
 
 Pull 9 riser 
 
 Pull 10 riser 
 
 Pull 11 riser 
 
 Pull 12 riser 
 
 Level off before board goes on 
 
 Put on board 
 
 Rub board to good bearing 
 
 Clamp board with 2 clamps 
 
 Clamp board with 4 clamps 
 
 Clamp board with 6 clamps 
 
142 STANDARD ELEMENTAL SUB-OPERATIONS 
 
 107 Clamp board with 2 clamps and wedges — 
 
 108 Clamp board with 4 clamps and wedges — 
 
 109 Clamp board with 6 clamps and wedges — 
 
 110 Clamp board with automatic clamp 
 
 111 Roll over by hand, 1 man ■ — 
 
 112 Roll over by hand, 2 men — 
 
 113 Roll over by hand, 3 men 
 
 114 Roll over by hand, 4 men — 
 
 115 Roll over by hand, 5 men — 
 
 116 Roll over by hand, 6 men — 
 
 117 Roll over by hand, 7 men ■ — 
 
 118 Roll over by hand, 8 men — 
 
 119 Roll over by hand, 9 men — 
 
 120 Roll over by hand, 10 men — 
 
 121 Roll Tabor hand rollover machine, 1 man — 
 
 122 Roll Tabor hand rollover machine, 2 men — 
 
 123 Roll Tabor hand rollover machine, 3 men — 
 
 124 Roll Tabor hand rollover machine, 4 men — 
 
 125 Roll Pridmore rollover machine, 1 man — 
 
 126 Roll Pridmore rollover machine, 2 men — 
 
 127 Roll Pridmore rollover machine, 3 men — 
 
 128 Roll Pridmore rollover machine, 4 men — 
 
 8-inch 12-inch 
 
 129 Rollover Tabor power rollover machine — 
 
 130 Rollover Pridmore power rollover mach. — 
 
 131 Wedge up under board — 
 
 132 Unclamp (See above item No. 107) — 
 
 133 Unclamp (See above item No. 108) — 
 
 134 Unclamp (See above item No. 109) — 
 
 135 Rap by hand . — 
 
 136 Rap by vibrator — 
 
 Hand Hand 
 
 Tabor Pridmore 
 
 137 Rap by hand and draw pat. on mach., 1 in. — 
 
 138 Rap by hand and draw pat. on mach., 2 in. — 
 
 139 Rap by hand and draw pat. on mach., 3 in.- — 
 
 140 Rap by hand and draw pat. on mach., 4 in. — 
 
 141 Rap by hand and draw pat. on mach., 5 in. — 
 
 142 Rap by hand and draw pat. on mach., 6 in. — 
 
 143 Rap by hand and draw pat. on mach,, 7 in. — 
 
 144 Ray by hand and draw pat. on mach., 8 in. — 
 
 145 Rap by hand and draw pat. on mach., 9 in. — 
 
 146 Rap by hand and draw pat. on mach., 10 in. — 
 
 147 Rap by hand and draw pat. on mach., 11 in. — 
 
 148 Rap by hand and draw pat. on mach., 12 in. — 
 
 By 5 lb. to 25 lb. 
 By 10 lb. to 200 lb. 
 
 5 lb. 10 lb. 15 lb 
 
 149 Draw pattern by hand, 1 in. 
 
 150 Draw pattern by hand, 2 in. 
 
 151 Draw pattern by hand, 3 in. 
 
 152 Draw pattern by hand, 4 in. 
 
 153 Draw pattern by hand, 5 in. 
 
FREDERIC A. PARKHURST I43 
 
 154 Draw pattern by hand, 6 in. 
 
 155 Draw pattern by hand, 7 in. 
 
 156 Draw pattern by hand, 8 in. 
 
 157 Draw pattern by hand, 9 in. 
 
 158 Draw pattern by hand, 10 in. 
 
 159 Draw pattern by hand, 11 in. 
 
 160 Draw pattern by hand, 12 in. 
 
 Time 
 
 for 
 
 each. 
 
 u 
 
 
 U 
 
 u 
 
 
 u 
 
 
 
 
 
 
 ° 1 
 
 u 8 
 
 "J 2 
 
 "•2 . a 
 
 c tf2 c « u 
 
 0^ 
 
 > 1- a— 
 
 n x 
 
 a. 
 
 Pu OT 
 
 161 Draw pattern on machine, 1 in. — 
 
 162 Draw pattern on machine, 2 in. — 
 
 163 Draw pattern on machine, 3 in. — 
 
 164 Draw pattern on machine, 4 in. — 
 
 165 Draw pattern on machine, 5 in. — 
 
 166 Draw pattern on machine, 6 in. — 
 
 167 Draw pattern on machine, 7 in. — 
 
 168 Draw pattern on machine, 8 in. — 
 
 169 Draw pattern on machine, 9 in. — 
 
 170 Draw pattern on machine, 10 in. — 
 
 171 Draw pattern on machine, 11 in. — 
 
 172 Draw pattern on machine, 12 in. — 
 
 173 Return machine to ramming position — 
 
 Everything depends on the accuracy of the sub-elemental 
 operation times. Obviously unusual care must be made in 
 the selection and arrangement of equipment, as well as in 
 recording- conditions. Likewise, the operative that is being 
 timed must be of the right capacity, and qualifications, both 
 physical and mental. In this connection, take the average 
 times of at least five different men or groups of men of the 
 qualifications above described in the earlier part of these in- 
 structions. 
 
 All of the standard elemental sub-operations listed below 
 should be timed at least twenty different times for each 
 different condition and with each of the five average may 
 be made. In some cases it will be desirable and practicable 
 to take a great many more than twenty observations 
 (under each varying condition), especially on short sub- 
 operations. Where reference is made to taking twenty ob- 
 servations, it does not mean a total of twenty where you 
 are using five different men, but twenty observations for 
 each of the five or more men. On this kind of work ac- 
 
144 STANDARD SUB-ELEMENTAL TIMES 
 
 curacy is everything, for times once determined for a given 
 condition, cannot be changed. As previously stated, they 
 constitute a large percentage of future time determinations. 
 
 13 — Standard Sub-Elemental Times for Bench and 
 Squeezer Work 
 
 In section 12 above will be found a long list of variables 
 for floor work, on which standard times apply. A similar 
 list of standard sub-elemental operations has also been 
 worked up applicable to bench and squeezer work. There 
 are about 31 of these elemental sub-operations for all of 
 which standard times have been determined for various 
 classes of work. 
 
 The variables to be provided for in establishing these 
 standard times have been brought down to a definite 
 standard. They consist of the following: — 
 
 Job Classes 
 
 1 — Non-cored work 
 2 — Cored work 
 
 Pattern Equipment 
 Single 
 Gated 
 Plated 
 
 Methods 
 
 Bench (All hand methods) 
 
 Machine (Power and hand Squeezer) 
 
 Flasks 
 
 Snap and solid flasks — 15 different sizes by plane 
 dimensions and 5 depths for each : — 75 combina- 
 tions in all. 
 
 The following will help to describe more fully the sub- 
 divisions of the above job classes. It may be mentioned 
 here that plated patterns come in the same "job class" as 
 
FREDERIC A. PARKHURST 1 45 
 
 gated work. See Fig. 8, which illustrates a few of the 
 many varieties of work which have been standardized. 
 
 Job Class i Non-Cored Work 
 
 i a. Plain — single pattern 
 
 lb. Plain — gated pattern 
 
 ic. Irregular — single pattern 
 
 id. Irregular — gated pattern 
 
 ie. Complicated — single pattern 
 
 if. Complicated — gated pattern 
 
 Job Class 2 Cored Work 
 
 2a. Plain — single pattern 
 
 2b. Plain — gated pattern 
 
 2c. Irregular — single pattern 
 
 2d. Irregular — gated pattern 
 
 2e. Complicated — single pattern 
 
 2f. Complicated — gated pattern 
 
 In addition to the standard times which apply to both 
 cored and non-cored work must be added core setting times 
 for job class 2 work. Times have been established for core 
 setting covering from i to 8 cores for a single pattern and 
 from 2 to 42 cores per mold for gated or plated patterns. 
 
 Based on the factors referred to in the last 3 preceding 
 paragraphs, we have the following combinations for any 
 of which it is possible to instantly determine the standard 
 production data directly from the tables, viz. — 
 
 Standard production all tabulated and indexed (as per 
 
 table 2) 36325. 
 
 Elemental operation times (bench) 900. 
 
 Elemental operation times (bench plated) 900. 
 
 Elemental operation times (machine) 900. 
 
 Elemental operation times (machine plated) 900. 
 
 Elemental operation times (core setting) 69. 
 
 Standard times applying on the above and admitting of 
 
 an almost unlimited combination 1440. 
 
 Operations variable by both job class and mold sizes. . . . 900. 
 Total tabulated combinations 42334. 
 
146 
 
 STANDARD SUB-ELEMENTAL TIMES 
 
 TABLE II 
 
 A TYPICAL STANDARD PRODUCTION DATA TABLE 
 
 » , JOB CLASS 2E BONUS CLASS 8 , r 
 
 Number of Cores to Set Single Pattern 
 1 2 3 4 S 6 7 
 
 10x24 6 
 
 1440 M 
 P 
 C 
 
 168 
 
 168 
 2585S 
 
 154 
 
 154 
 1723S 
 
 142 
 
 142 
 
 2032S 
 
 132 
 
 132 
 3020S 
 
 122 
 
 122 
 
 3252S 
 
 114 
 
 114 
 3229S 
 
 107 
 
 107 
 3243 S 
 
 101 
 
 101 
 
 3245S 
 
 147 
 
 294 
 
 2330S 
 
 145 
 
 580 
 
 2163S 
 
 7 
 
 1680 M 
 P 
 C 
 
 159 
 
 159 
 2586S 
 
 146 
 
 146 
 2731S 
 
 135 
 
 135 
 
 2288S 
 
 126 
 
 126 
 
 3234S 
 
 117 
 
 117 
 2691S 
 
 110 
 
 110 
 
 3241 S 
 
 104 
 
 104 
 
 3246S 
 
 98 
 
 98 
 3246S 
 
 140 
 
 280 
 233 IS 
 
 138 
 
 552 
 2526S 
 
 8 
 
 1920 M 
 P 
 C 
 
 150 
 
 150 
 
 203 IS 
 
 139 
 
 139 
 
 2730S 
 
 129 
 
 129 
 2530S 
 
 120 
 
 120 
 
 3224S 
 
 113 
 
 113 
 
 3228S 
 
 106 
 
 106 
 
 3239S 
 
 100 
 
 100 
 
 3253S 
 
 95 
 
 95 
 3259S 
 
 133 
 
 266 
 
 2332S 
 
 132 
 
 528 
 
 2541S 
 
 9 
 
 2160 M 
 P 
 C 
 
 143 
 
 143 
 
 2534S 
 
 133 
 
 133 
 
 2033 S 
 
 123 
 
 123 
 
 253 IS 
 
 116 
 
 116 
 
 3236S 
 
 109 
 
 109 
 
 3238S 
 
 102 
 
 102 
 3255S 
 
 97 
 
 97 
 3261 S 
 
 92 
 
 92 
 
 3257S 
 
 127 
 
 254 
 3004S 
 
 126 
 
 504 
 
 2540S 
 
 10 
 
 2400 M 
 P 
 C 
 
 136 
 
 136 
 2529S 
 
 127 
 
 127 
 2034S 
 
 118 
 
 118 
 
 3230S 
 
 111 
 
 111 
 
 3232S 
 
 105 
 
 105 
 
 3242S 
 
 99 
 
 99 
 3256S 
 
 94 
 
 94 
 
 3258S 
 
 89 
 
 89 
 
 3287S 
 
 122 
 
 244 
 1701S 
 
 121 
 
 484 
 
 3159S 
 
 11x26 6 
 
 1716 M 
 P 
 C 
 
 158 
 
 158 
 
 2287S 
 
 146 
 
 146 
 
 273 IS 
 
 135 
 
 135 
 
 2288S 
 
 125 
 
 125 
 
 3226S 
 
 117 
 
 117 
 2691S 
 
 110 
 
 110 
 
 3241S 
 
 103 
 
 103 
 
 3240S 
 
 98 
 
 98 
 3246S 
 
 138 
 
 276 
 
 2528S 
 
 136 
 
 544 
 
 2350S 
 
 7 
 
 2002 M 
 P 
 C 
 
 148 
 
 148 
 
 2042S 
 
 138 
 
 138 
 3225S 
 
 128 
 
 128 
 
 3223 S 
 
 119 
 
 119 
 3235S 
 
 112 
 
 112 
 
 3237S 
 
 105 
 
 105 
 
 3242S 
 
 99 
 
 99 
 3256S 
 
 94 
 
 94 
 
 3258S 
 
 131 
 
 262 
 
 2377S 
 
 129 
 
 516 
 
 2165S 
 
 8 
 
 2288 M 
 P 
 C 
 
 140 
 
 140 
 2029S 
 
 130 
 
 130 
 2590S 
 
 121 
 
 121 
 
 3227S 
 
 114 
 
 114 
 3229S 
 
 107 
 
 107 
 3243S 
 
 101 
 
 101 
 3245S 
 
 95 
 
 95 
 3259S 
 
 91 
 
 91 
 3264S 
 
 124 
 
 248 
 
 2595S 
 
 123 
 
 492 
 
 2166S 
 
 9 
 
 2574 M 
 P 
 C 
 
 132 
 
 132 
 
 3020S 
 
 124 
 
 124 
 
 2733S 
 
 115 
 
 115 
 3231S 
 
 108 
 
 108 
 
 3233S 
 
 102 
 
 102 
 
 3255S 
 
 97 
 
 97 
 3261S 
 
 92 
 
 92 
 3257S 
 
 87 
 
 87 
 3304S 
 
 118 
 
 238 
 2693 S 
 
 117 
 
 468 
 
 1724S 
 
 10 
 
 2860 M 
 P 
 C 
 
 125 
 
 125 
 3226S 
 
 118 
 
 118 
 
 3230S 
 
 110 
 
 110 
 
 3241S 
 
 104 
 
 104 
 
 3244S 
 
 98 
 
 98 
 3246S 
 
 93 
 
 93 
 3262S 
 
 88 
 
 88 
 3260S 
 
 84 
 
 84 
 
 3318S 
 
 112 
 
 224 
 
 1704S 
 
 111 
 
 444 
 
 1726S 
 
 12x16 6 
 
 1152 M 
 P 
 C 
 
 180 
 
 180 
 2036S 
 
 164 
 
 164 
 
 2038S 
 
 150 
 
 150 
 2031 S 
 
 139 
 
 139 
 
 2730S 
 
 128 
 
 128 
 3223S 
 
 120 
 
 120 
 
 3224S 
 
 112 
 
 112 
 
 3237S 
 
 105 
 
 105 
 
 3242S 
 
 157 
 
 314 
 
 2096S 
 
 155 
 
 620 
 
 2928S 
 
 7 
 
 1344 M 
 P 
 C 
 
 171 
 
 171 
 2037S 
 
 157 
 
 157 
 2039S 
 
 144 
 
 144 
 2283S 
 
 133 
 
 133 
 2033S 
 
 124 
 
 124 
 2733S 
 
 116 
 
 116 
 3236S 
 
 109 
 
 109 
 3238S 
 
 102 
 
 102 
 3255S 
 
 151 
 
 302 
 2593 S 
 
 149 
 
 596 
 
 1767S 
 
 8 
 
 1536 M 
 P 
 C 
 
 163 
 
 163 
 
 2027S 
 
 150 
 
 150 
 
 203 IS 
 
 138 
 
 138 
 
 3225S 
 
 129 
 
 129 
 
 2530S 
 
 120 
 
 120 
 
 3224S 
 
 H2 
 
 112 
 
 3237S 
 
 105 
 
 105 
 3242S 
 
 100 
 
 100 
 
 3253 S 
 
 145 
 
 290 
 
 2167 S 
 
 143 
 
 572 
 2226S 
 
 9 
 
 1728 M 
 P 
 C 
 
 156 
 
 156 
 
 2692S 
 
 144 
 
 144 
 2283 S 
 
 133 
 
 133 
 
 2033S 
 
 124 
 
 124 
 
 2733 S 
 
 116 
 
 116 
 3236S 
 
 109 
 
 109 
 3238S 
 
 103 
 
 103 
 3240S 
 
 97 
 
 97 
 3261 S 
 
 139 
 
 278 
 
 2537S 
 
 137 
 
 548 
 2164S 
 
 10 
 
 1920 M 
 P 
 C 
 
 150 
 
 150 
 203 IS 
 
 139 
 
 139 
 2730S 
 
 128 
 
 128 
 
 3223 S 
 
 120 
 
 120 
 
 3224S 
 
 112 
 
 112 
 
 3237S 
 
 106 
 
 106 
 
 3239S 
 
 100 
 
 100 
 
 3253 S 
 
 95 
 
 95 
 3259S 
 
 134 
 
 268 
 
 2596S 
 
 132 
 
 528 
 
 2541 S 
 
 Though the above represents over 42,000 tabulated com- 
 binations, it is possible to make up other combinations to 
 meet almost any desired case. It often happens that some 
 variable on a new job throws it out of the standardized tab- 
 ular group. In such cases, all that it is necessary to do is 
 to add or subtract certain sub-operation times from the 
 
FREDERIC A. PARKHURST 
 
 147 
 
 TABLE II— Continued 
 
 A TYPICAL STANDARD PRODUCTION DATA TABLE 
 
 JOB CLASS 2F BONUS CLASS 8 
 
 Number of Patterns on Plate 
 
 10 12 14 16 18 20 22 24 30 
 
 36 
 
 42 
 
 143 
 
 858 
 
 2224S 
 
 141 
 
 1128 
 1779S 
 
 139 
 
 1390 
 25S2S 
 
 135 
 
 1620 
 2084S 
 
 133 
 
 1862 
 2316S 
 
 130 
 
 2080 
 1814S 
 
 127 
 
 2286 
 3012S 
 
 125 
 
 2500 
 2716S 
 
 123 
 
 2706 
 2130S 
 
 120 
 
 2880 
 1884S 
 
 116 
 
 3480 
 2123S 
 
 113 
 
 4068 
 2726S 
 
 110 
 
 4620 
 1933S 
 
 136 
 
 816 
 
 1752S 
 
 135 
 
 1080 
 1783S 
 
 132 
 
 1320 
 2S04S 
 
 129 
 
 1548 
 2149S 
 
 127 
 
 1778 
 3010S 
 
 124 
 
 1984 
 2632S 
 
 122 
 
 2196 
 
 2445S 
 
 120 
 
 2400 
 2214S 
 
 118 
 
 2596 
 3274S 
 
 116 
 
 2784 
 2186S 
 
 111 
 
 3330 
 3126S 
 
 108 
 
 3888 
 1893S 
 
 106 
 
 4452 
 3284S 
 
 130 
 
 780 
 1760S 
 
 128 
 
 1024 
 2614S 
 
 126 
 
 1260 
 1772S 
 
 124 
 
 1488 
 2416S 
 
 121 
 
 1694 
 3271S 
 
 119 
 
 1904 
 2348S 
 
 117 
 
 2106 
 2737 S 
 
 115 
 
 2300 
 2569S 
 
 113 
 
 2486 
 2720S 
 
 111 
 
 2664 
 1832S 
 
 107 
 
 3210 
 3297S 
 
 104 
 
 3744 
 1869S 
 
 103 
 
 4326 
 3300S 
 
 124 
 
 744 
 2470S 
 
 123 
 
 984 
 
 2158S 
 
 121 
 
 1210 
 3267S 
 
 118 
 
 1416 
 
 2241S 
 
 116 
 
 1624 
 2946S 
 
 114 
 
 1824 
 1791S 
 
 112 
 
 2016 
 2263 S 
 
 111 
 
 2220 
 1811S 
 
 109 
 
 2398 
 3275S 
 
 107 
 
 2568 
 2398S 
 
 103 
 
 3090 
 3298S 
 
 101 
 
 3636 
 1898S 
 
 99 
 
 4158 
 3164S 
 
 119 
 
 714 
 
 2699S 
 
 118 
 
 944 
 2757S 
 
 116 
 
 1160 
 
 2155S 
 
 114 
 
 1369 
 1769S 
 
 112 
 
 1568 
 
 2773 S 
 
 110 
 
 1760 
 
 1822S 
 
 108 
 
 1944 
 2621 S 
 
 106 
 
 2120 
 2780S 
 
 105 
 
 2310 
 2499S 
 
 103 
 
 2472 
 2785S 
 
 100 
 
 3000 
 2212S 
 
 97 
 
 3492 
 1899S 
 
 96 
 
 4032 
 2252S 
 
 135 
 
 810 
 
 2092S 
 
 133 
 
 1064 
 2324S 
 
 131 
 
 1310 
 2370S 
 
 128 
 
 1536 
 1798S 
 
 125 
 
 1750 
 2711S 
 
 123 
 
 1968 
 
 2142S 
 
 120 
 
 2160 
 1812S 
 
 118 
 
 2360 
 2779S 
 
 116 
 
 2552 
 3276S 
 
 114 
 
 2736 
 1831S 
 
 110 
 
 3300 
 2210S 
 
 107 
 
 3852 
 2395S 
 
 105 
 
 4410 
 2306S 
 
 128 
 
 768 
 
 1754S 
 
 126 
 
 1008 
 2270S 
 
 124 
 
 1240 
 2618S 
 
 122 
 
 1464 
 2449S 
 
 119 
 
 1666 
 2701 S 
 
 117 
 
 1872 
 1790S 
 
 115 
 
 2070 
 2566S 
 
 113 
 
 2260 
 2717S 
 
 111 
 
 2442 
 3295S 
 
 109 
 
 2616 
 1835S 
 
 106 
 
 3180 
 2495S 
 
 103 
 
 3708 
 2810S 
 
 101 
 
 4242 
 3282S 
 
 121 
 
 726 
 
 3288S 
 
 120 
 
 960 
 
 2271S 
 
 118 
 
 1180 
 3290S 
 
 116 
 
 1392 
 2196S 
 
 114 
 
 1596 
 
 2318S 
 
 112 
 
 1792 
 2628S 
 
 110 
 
 1980 
 1816S 
 
 108 
 
 2160 
 1812S 
 
 106 
 
 2332 
 3303 S 
 
 104 
 
 2496 
 1888S 
 
 101 
 
 3030 
 3280S 
 
 99 
 
 3564 
 1897S 
 
 97 
 
 4074 
 3283S 
 
 115 
 
 690 
 
 2549S 
 
 114 
 
 912 
 
 1747S 
 
 113 
 
 1130 
 
 2707S 
 
 110 
 
 1320 
 
 2504S 
 
 108 
 
 1512 
 
 2556S 
 
 107 
 
 1712 
 2400S 
 
 105 
 
 1890 
 2081 S 
 
 103 
 
 2060 
 2781S 
 
 102 
 
 2244 
 2900S 
 
 100 
 
 2400 
 2214S 
 
 97 
 
 2910 
 323 IS 
 
 95 
 
 3420 
 1926S 
 
 93 
 
 3906 
 3080S 
 
 110 
 
 660 
 2508S 
 
 109 
 
 872 
 17S1S 
 
 108 
 
 1080 
 1783S 
 
 106 
 
 1272 
 2505S 
 
 104 
 
 1456 
 1802S 
 
 102 
 
 1632 
 1796S 
 
 101 
 
 1818 
 3311S 
 
 99 
 
 1980 
 1816S 
 
 98 
 
 2156 
 2104S 
 
 96 
 
 2304 
 1838S 
 
 93 
 
 2790 
 2932S 
 
 91 
 
 3276 
 1849S 
 
 90 
 
 3780 
 1894S 
 
 153 
 
 ■918 
 
 2372S 
 
 150 
 
 1200 
 2221 S 
 
 148 
 
 1480 
 1803S 
 
 144 
 
 1728 
 1793S 
 
 141 
 
 1974 
 2559S 
 
 138 
 
 2208 
 2519S 
 
 135 
 
 2430 
 2229S 
 
 133 
 
 2660 
 2312S 
 
 130 
 
 2860 
 2213S 
 
 127 
 
 3048 
 3015S 
 
 122 
 
 3660 
 2437S 
 
 119 
 
 4284 
 2725S 
 
 116 
 
 4872 
 2958S 
 
 146 
 
 876 
 
 2272S 
 
 145 
 
 1160 
 2155S 
 
 142 
 
 1420 
 2086S 
 
 139 
 
 1668 
 2558S 
 
 136 
 
 1904 
 2348S 
 
 133 
 
 2128 
 2191S 
 
 130 
 
 2340 
 1809S 
 
 128 
 
 2560 
 2258S 
 
 125 
 
 2750 
 2719S 
 
 123 
 
 2952 
 2126S 
 
 118 
 
 3540 
 2235S 
 
 115 
 
 4140 
 2514S 
 
 113 
 
 4746 
 2729S 
 
 141 
 
 846 
 
 2548S 
 
 139 
 
 1112 
 
 2550S 
 
 137 
 
 1370 
 
 21S2S 
 
 133 
 
 1596 
 2318S 
 
 131 
 
 1834 
 2366S 
 
 128 
 
 2048 
 2634S 
 
 125 
 
 2250 
 2714S 
 
 123 
 
 2460 
 2134S 
 
 121 
 
 2662 
 3249S 
 
 119 
 
 2856 
 1855S 
 
 114 
 
 3420 
 1926S 
 
 111 
 
 3996 
 1892S 
 
 109 
 
 4578 
 3281S 
 
 135 
 
 810 
 
 2092S 
 
 134 
 
 1072 
 2613S 
 
 132 
 
 1320 
 2504S 
 
 129 
 
 1548 
 2149S 
 
 126 
 
 1764 
 2317S 
 
 124 
 
 1984 
 2632S 
 
 121 
 
 2178 
 3248S 
 
 119 
 
 2380 
 2295S 
 
 117 
 
 2574 
 2215S 
 
 115 
 
 2760 
 2517S 
 
 111 
 
 3330 
 3126S 
 
 108 
 
 3888 
 1893S 
 
 106 
 
 4452 
 32S4S 
 
 131 
 
 786 
 
 2373 S 
 
 129 
 
 1032 
 
 21S7S 
 
 127 
 
 1270 
 3008S 
 
 124 
 
 1488 
 2468S 
 
 122 
 
 1708 
 2629S 
 
 120 
 
 1920 
 1817S 
 
 117 
 
 2106 
 2737S 
 
 115 
 
 2300 
 2569S 
 
 113 
 
 2486 
 2720S 
 
 111 
 
 2664 
 1832S 
 
 108 
 
 3240 
 1902S 
 
 105 
 
 3780 
 1894S 
 
 103 
 
 4326 
 330OS 
 
 standard time sheets. Table II is a typical table and is an 
 exact copy of one of the set of 90. 
 
 An immense amount of detail work was necessary before 
 the standardization of all the above variables and their pos- 
 sible combinations was complete. It was necessary to take 
 thousands of time studies. These studies had to apply to a 
 
I48 STANDARD SUB-ELEMENTAL TIMES 
 
 great variety of patterns of all classes and for each of the 
 above mentioned forms of equipment, method and flask 
 sizes. The result of all this work has been gratifying - , how- 
 ever. 
 
 All of the standard data has now been tabulated with the 
 result that 95 per cent of all bench and squeezer work done 
 by any of the six foundries of the Aluminum Castings Co. 
 can be put on bonus direct from these tables. This means 
 definite and absolute standardization. Short run work can 
 be put on bonus at once without the necessity for taking 
 time studies on each pattern. 
 
 By this method it is possible to apply scientific manage- 
 ment methods to a short job which would ordinarily run 
 out long before a satisfactory time study could be made. 
 The importance of this one feature alone must not be under- 
 estimated. As several of the Aluminum Castings Co. foun- 
 dries do practically a jobbing business, the value of these 
 tables can be readily appreciated. 
 
 This standard data has even, more value in several other 
 ways than the feature above mentioned. In the first place 
 there is no guess work as to the most economical combina- 
 tion of pattern equipment, number per mold, size of flask, 
 method to be employed, etc. A glance at the tables tells 
 instantly what is the best combinations to employ for each 
 job to assure a maximum production and minimum cost. 
 
 Yet another great value is that of having definite data on 
 which to base estimates. This applies both to the routine 
 work of estimating, as well as the solving of problems of 
 this nature by the sales representatives. This is true of 
 both the floor, bench and squeezer data. Combining these 
 advantages and the ability (through accurate analytical 
 costs) to check up past performances puts a firm employing 
 these methods in position to practically predetermine costs. 
 
 New equipment can be made to absolutely agree with the 
 best standards and practice. There is no longer need to 
 guess and try "rule of thumb" methods or "cut and dry" 
 until we hit the right way, or the best combinations. It is 
 impossible here to list all of the many advantages to be de- 
 
FREDERIC A. PARKHURST 1 49 
 
 rived from this data. The results speak for themselves. 
 We are rinding new uses and new value in this standardized 
 data every day it is in use. 
 
 All bench and squeezer jobs at both the Detroit and 
 Cleveland plants have been put on bonus direct from these 
 standard production data sheets for the last six months. We 
 have yet to find a case where the men have been unable to 
 reach the production asked for. Neither have the maxi- 
 mum production figures been exceeded. The author claims 
 that the standardization of foundry operations and practice 
 here described marks an epoch in the history of foundry 
 work and is in itself the vindication of scientific manage- 
 ment in this virgin field. 
 
 14 — Standard Miscellaneous Data 
 
 The Time Study Foreman is responsible for the follow- 
 ing standard data. This data must be kept up to date. The 
 list given below is subject to revision and amplification to 
 suit varying conditions and plants. 
 
 Flask Data — Flasks are tools, hence come into the "T" 
 class of symbols. Our flasks must be listed in a systematic 
 manner in order of dimension ; commencing with the small- 
 est "Ti, T2, T3, etc., new flasks take the next number. 
 The following shows how this list should appear : 
 
 Flask Record 
 
 Inside Contents Weight 
 
 Flask Pattern Quan- Dimensions Bars Weight cubic with sand 
 
 lymbol 
 
 STet wt. 
 sand 
 
 symbol tity L W D lbs. inches 
 
 Flask Record — Continued 
 
 Weight rammed Net wt. C-Cope 
 full of sand of sand D-Drag 
 
 this 
 pattern 
 
 Weight 
 of board 
 
 Handling Times of Sand and Equipment — The data we 
 are accumulating on the weight of sand rammed "soft," 
 "medium" and "hard" will allow us to determine an average 
 weight per cubic inch or foot. The chief controlling factor 
 in most of our work (exclusive of the standard elemental 
 sub-operations) is the weight of sand to be shoveled and 
 rammed, area and contour of flasks and the weight of the 
 
I50 STANDARD MISCELLANEOUS DATA 
 
 cope and drag complete. To these shall be added the un- 
 usual but necessary operations peculiar to certain jobs not 
 covered by our standard production data. 
 
 After we have standard times on the sub-operations we 
 will then base all our calculations on our standard of "allow- 
 able work in foot pounds per man." 
 
 Core Work — Standard data for this work will be similar 
 (but much simpler) to that above mentioned in the list of 
 standard sub-elemental operations. The chief factors to de- 
 termine (for each core box of each pattern) are listed in a 
 manner similar to that shown above for molding- operations. 
 This detail need not be repeated here. 
 
 Tool and Equipment Data — Keep a complete record on 
 each time study of each job of the tools and equipment in 
 use. Do not lose sight of the fact that the time study must 
 include all information (or references) pertaining to each 
 job or operation. All material and the quantities used per 
 unit of work must be fully specified as well as the tools and 
 equipment. This information is absolutely essential before 
 the instruction card or bonus chart can be issued. 
 
 Files — File all time studies, in a vertical loose-leaf file, 
 arranged numerically by the "time study number." Keep 
 a 3x5-inch card index to the time study file, arranged by 
 classes of work and in alphabetical and numerical order of 
 piece symbol or other identifying mark. This card shows 
 the complete routing for each piece as well as the bonus 
 maximum and bonus chart number for each operation. 
 
 References — A general treatment of the subject of time 
 study work will be found in "Applied Methods of Scientific 
 Management," copy of which is on file in the planning 
 room, and same is understood to be a part of these instruc- 
 tions, particularly matter on pages 147 to 166 inclusive. 
 
 Responsibility for Jobs on Bonus — After a satisfactory 
 time study has been made and the time for a job determined 
 (and the bonus list issued) the real work begins. It is up 
 to the Time Study Foreman and his assistants to follow 
 each new bonus job until it is going satisfactorily, both as 
 to method, quantity and quality. They must not relax their 
 
FREDERIC A. PARKHURST 151 
 
 vigilance until such time as the job reaches the maximum 
 production called for by the Differential Bonus Chart. 
 When this production has been reached and held for a time 
 (and then only) the men. themselves will see that it does not 
 fall off through any fault of theirs. 
 
 15 — General Instructions to Time Study Men 
 
 The time study men must not forget that they are in the 
 position of functional bosses and must deport themselves 
 accordingly. In developing a position of this kind, care 
 must be taken in setting an example to the men and by in- 
 dustry and ability try to raise the general standard of the 
 shop. 
 
 In keeping your records, be systematic and study the 
 symbol system as it is developed so that you will fully ap- 
 preciate what is involved in the different series of symbols 
 which will be put in use from time to time. The use of 
 symbols means a large saving of time by greatly reducing 
 the work, besides simplifying records. 
 
 In connection with your regular time study work you 
 will be expected to report to the proper parties all matters 
 pertaining to the violation of the shop rules. These should 
 be carefully studied so that the time study men will be thor- 
 oughly familiar with them. Time study men can also be 
 of material assistance to the shop employes by instructing 
 them regarding the details specified in the rules with which 
 they may be unfamiliar, or do not understand. 
 
LECTURE XXVI 
 
 time study and bonus (continued) 
 16. Parkhurst's Differential Bonus. 
 
 The above subject will discuss the author's differential bonus in 
 somewhat more detail than is covered in the text, and previously dis- 
 cussed in Lecture 23. 
 
 The following is reprinted complete from the author's "Scientific 
 Management in the Foundry," section 16. 
 
 It is not the intention here to enter into a discussion, 
 academic or otherwise, of the advantages of the various 
 forms of remunerating labor. Based on the writer's experi- 
 ence with day work, piece work, premium and bonus, he 
 has during the last ten years developed a differential bonus 
 system. The differential system, as described below, has 
 been flexible enough to be readily adaptable to any require- 
 ments put upon it. Using the same fundamental principle 
 throughout, the application of the standard differential 
 bonus charts is universal. 
 
 The author's experience has been that with properly 
 standardized hourly rates for various grades of labor in 
 each trade involved, the addition of a generous bonus for 
 high production will give greater results than any other 
 method. As he has had occasion to remark before, we pay 
 for the employe's time, we arrange his equipment and sup- 
 ply a more or less complex organization to control that 
 equipment and the materials in process. By positive means 
 we determine the maximum production that the average 
 good man can turn out per day and we certainly have the 
 privilege of utilizing the time we pay for to the best advan- 
 tage and toward this end. Obviously, however, it is not fair 
 to the worker to prevent his participating in the saving that 
 is realized. We do this by means of increased wages (in the 
 form of bonus) in proportion to the additional work he 
 turns out. 
 
 152 
 
FREDERIC A. PARKHURST 1 53 
 
 If the employe is assured of a day's pay his mental atti- 
 tude from the very start is going to be more favorable than 
 if his pay depends entirely on what he turns out for a day's 
 work, as under the piece work system. In a piece work 
 shop the men are often put on strange jobs and though they 
 work hard all day they are not able to earn more than one- 
 third or one-half of a regular day's pay. This may go on 
 for several days before they can make their average piece 
 work day's pay. This obviously is unfair. 
 
 The premium system, though it carries a specific day rat- 
 ing, is not efficient in that the average methods used leave 
 too much to the judgment and will of the individual em- 
 ploye. In other words, you can't get maximum production 
 if you say to a man that his rate will be $2.50 a day and 
 that he gets the equivalent to half (or some other propor- 
 tion) of what he saves, over and above, say ten pieces per 
 day. The tendency of this method is for everyone from 
 the management down to tend to approximately what the 
 man ought to do, and if this approximation is wrong it 
 limits production, because he will not make all that he pos- 
 sibly can. The same thing applies to piece work where 
 rates are incorrectly set. 
 
 By the adoption of standard hourly rates and differential 
 bonus for different classes of work, combined with a proper 
 organization, including an especially strict inspection serv- 
 ice, you can much better control your labor and product 
 than you can under the average piece work system. 
 
 Combine with the above methods accurate information 
 as to exactly what is involved in each job, how long each 
 job should take based on stop watch observations; add to 
 these an openly advertised policy that under no circum- 
 stances will you reduce a rate once set. Table 4 in section 
 18 indicates what the result will be. 
 
 To develop and standardize the differential bonus, as used 
 by the author, he decided to provide in standard charts for 
 fifteen different bonus classes. This classification applies to 
 the job and not to the man. In other words, jobs are classi- 
 fied as belonging in bonus class 1, 3 or 8, as the case may 
 
154 PARKHURST DIFFERENTIAL BONUS 
 
 be. Each bonus class number is equivalent to 25c per day 
 maximum bonus for 100 per cent efficiency. Therefore, a 
 job rated as belonging under bonus class 5 would pay $1.25 
 maximum bonus for 100 per cent efficiency. 
 
 The differential is figured on a basis of 10 per cent of the 
 maximum bonus for 50 per cent production and 100 per 
 cent bonus for 100 per cent production. It might be 
 further explained here that the bonus jobs are seldom 
 started as low as 50 per cent of the calculated maximum 
 of production. More generally in a new shop the bonus is 
 started at 60 or 70 per cent, depending on the local shop 
 conditions. 
 
 Fig. 9 shows a standard differential bonus chart covering 
 two charts, namely 100 and 101 units per day. The letters 
 A, B, C and D, representing 50, 60, 70 and 80 per cent pro- 
 duction respectively. The letter ^ represents standard pro- 
 duction or 100 per cent efficiency. In Fig. 9 referred to, 
 chart 100 was illustrated, so as to more readily explain the 
 percentage basis used at the different stages of a plant's 
 efficiency. 
 
 To further explain, it should be noted that local plant 
 conditions, the class of help and other variables govern to a 
 great extent the progress that can be made particularly. 
 This is particularly true of the early stages of reorganiza- 
 tion work. During these early stages, it is necessary to con> 
 mence the bonus sometimes as low as 60 and sometimes as 
 low as 50 per cent of the maximum bonus production. This 
 statement can be more readily appreciated when one stops to 
 consider that it is not unusual to ask for five or six times 
 the production per day under bonus that has been the ordi- 
 nary practice of the shop under day work. If we start 
 bonus (even though it is a small amount) at 50 per cent or 
 60 per cent of this maximum, we put the bonus nearer the 
 reach of the employe. This tends to encourage him to make 
 a little effort to demonstrate for himself whether bonus can 
 be made or not. Of course, at this stage of his work he has 
 the help of the Time Study Foreman to see that he does not 
 waste time in false moves. As time goes on the average 
 
FREDERIC A. PARKHURST 155 
 
 efficiency of the shop becomes higher and the starting point 
 for new jobs can be raised to 70 per cent and later to 80 
 per cent of the calculated maximum. In all cases the bonus 
 at given percentages is the same on any chart, whether it 
 starts at 60 per cent or higher. 
 
 At the Detroit plant of the Aluminum Castings Co. all 
 bonus jobs have been figured to commence at 80 per cent 
 of the maximum bonus production. This 80 per cent factor 
 was established Sept. 1, 19 13. We have yet to find a case 
 where the man did not earn bonus, nor have we found any 
 case where the maximum bonus was appreciably exceeded. 
 
 It should be understood thatthe figure of 80 per cent above 
 mentioned, means the point at which the bonus commences. 
 On all jobs it is expected that the average workman will 
 reach 90 per cent to 100 per cent of the maximum produc- 
 tion. The exceptional man will go to 100 per cent and be- 
 yond. 
 
 This exceptional man with the ability to exceed what the 
 average good worker can do is perfectly welcome to the 
 extra remunerations that he gets by exceeding the 100 per 
 cent mark. It should be noted that though the bonus charts 
 are figured to 100 per cent production, if a man should ex- 
 ceed this amount by 5 or 10 per cent the differential is ex- 
 tended down to the figure which he actually realizes. In 
 other words, there is no limit. Fig. 10 illustrates a typical 
 bonus chart form FAP 117. At the time this chart was 
 issued, all bonus commenced at 70 per cent of the maximum. 
 
 The success of any form of management lies in the con- 
 fidence which the management is enabled to instill into the 
 personnel. Subterfuge and excuses for changing rates must 
 be absolutely avoided. The writer has always made it a point 
 never to lower a bonus rate once established. This policy is 
 openly published in the shop rules with concerns he has been 
 identified with. He owes the success of his methods in a 
 great measure to the fact that the personal factor has been 
 of paramount consideration with him and all of those who 
 come in contact with him and his methods know that prices 
 will not be lowered, providing of course the equipment and 
 
156 
 
 PARKHURST DIFFERENTIAL BONUS 
 
 Standard Differential 
 Bonus Chart. 
 
 Form FAP201 
 
 Frederick A. Parkhurst, M. E. 
 Organizing Engineer. 
 
 STANDARD DIFFERENTIAL BONUS CHARTS 100 AND 101 
 1 Sheets, Sheet 1 
 
 55 
 
 -Bonus P 
 
 roduction in— 
 
 — , (Tr 
 
 le decimal 
 
 over the 
 
 bonus cl 
 
 ass figures ; 
 
 i 
 are 
 
 Units 
 
 per day for 
 
 1 
 
 ;he differential or increment 
 
 of change.) 
 
 
 Chart. 
 
 Chart. 
 
 .0045 
 
 .009 
 
 .0135 
 
 .018 
 
 .0225 
 
 .027 
 
 100 
 
 101 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 SO 
 
 51 
 
 .025 
 
 .050 
 
 .075 
 
 .100 
 
 .125 
 
 .150 
 
 51 
 
 52 
 
 .030 
 
 .059 
 
 .089 
 
 .118 
 
 .148 
 
 .177 
 
 52 
 
 53 
 
 .034 
 
 .068 
 
 .102 
 
 .136 
 
 .170 
 
 .204 
 
 53 
 
 54 
 
 .039 
 
 .077 
 
 .116 
 
 .154 
 
 .193 
 
 .231 
 
 54 
 
 55 
 
 .043 
 
 .086 
 
 .129 
 
 .172 
 
 .215 
 
 .258 
 
 55 
 
 56 
 
 .048 
 
 .095 
 
 .143 
 
 .190 
 
 .238 
 
 .285 
 
 56 
 
 57 
 
 .052 
 
 .104 
 
 .156 
 
 .208 
 
 .260 
 
 .312 
 
 57 
 
 58 
 
 .057 
 
 .113 
 
 .170 
 
 .226 
 
 .283 
 
 .339 
 
 58 
 
 59 
 
 .061 
 
 .122 
 
 .183 
 
 .244 
 
 .305 
 
 .366 
 
 59 
 
 60 
 
 .066 
 
 .131 
 
 .197 
 
 .262 
 
 .328 
 
 .393 
 
 60 
 
 61 
 
 .070 
 
 .140 
 
 .210 
 
 .280 
 
 .350 
 
 .420 
 
 61 
 
 62 
 
 .075 
 
 .149 
 
 .224 
 
 .298 
 
 .373 
 
 .447 
 
 62 
 
 63 
 
 .079 
 
 .158 
 
 .237 
 
 .316 
 
 .395 
 
 .474 
 
 63 
 
 64 
 
 .084 
 
 .167 
 
 .251 
 
 .334 
 
 .418 
 
 .501 
 
 64 
 
 65 
 
 .088 
 
 .176 
 
 .264 
 
 .352 
 
 .440 
 
 .528 
 
 65 
 
 66 
 
 .093 
 
 .185 
 
 .278 
 
 .370 
 
 .463 
 
 .555 
 
 66 
 
 67 
 
 .097 
 
 .194 
 
 .291 
 
 .388 
 
 .485 
 
 .582 
 
 67 
 
 68 
 
 .102 
 
 .203 
 
 .305 
 
 .406 
 
 .508 
 
 .609 
 
 68 
 
 69 
 
 .106 
 
 .212 
 
 .318 
 
 .424 
 
 .530 
 
 .636 
 
 69 
 
 70 
 
 .111 
 
 .221 
 
 .332 
 
 .442 
 
 .553 
 
 .663 
 
 70 
 
 71 
 
 .115 
 
 .230 
 
 .345 
 
 .460 
 
 .575 
 
 .690 
 
 71 
 
 72 
 
 .120 
 
 .239 
 
 .359 
 
 .478 
 
 .598 
 
 .717 
 
 72 
 
 73 
 
 .124 
 
 .248 
 
 .372 
 
 .496 
 
 .620 
 
 .744 
 
 73 
 
 74 
 
 .129 
 
 .257 
 
 .386 
 
 .514 
 
 .643 
 
 .771 
 
 74 
 
 75 
 
 .133 
 
 .266 
 
 .399 
 
 .532 
 
 .665 
 
 .798 
 
 75 
 
 76 
 
 .138 
 
 .275 
 
 .413 
 
 .550 
 
 .688 
 
 .825 
 
 76 
 
 77 
 
 .142 
 
 .284 
 
 .426 
 
 .568 
 
 .710 
 
 .852 
 
 77 
 
 78 
 
 .147 
 
 .293 
 
 .440 
 
 .586 
 
 .733 
 
 .879 
 
 78 
 
 79 
 
 .151 
 
 .302 
 
 .453 
 
 .604 
 
 .755 
 
 .906 
 
 79 
 
 80 
 
 .156 
 
 .311 
 
 .467 
 
 .622 
 
 .778 
 
 .933 
 
 80 
 
 81 
 
 .160 
 
 .320 
 
 .4S0 
 
 .640 
 
 .800 
 
 .960 
 
 81 
 
 82 
 
 .165 
 
 .329 
 
 .494 
 
 .658 
 
 .823 
 
 .987 
 
 82 
 
 83 
 
 .169 
 
 .338 
 
 .507 
 
 .676 
 
 .845 
 
 1.014 
 
 83 
 
 84 
 
 .174 
 
 .347 
 
 .521 
 
 .694 
 
 .868 
 
 1.041 
 
 84 
 
 85 
 
 .178 
 
 .356 
 
 .534 
 
 .712 
 
 .890 
 
 1.068 
 
 85 
 
 86 
 
 .183 
 
 .365 
 
 .548 
 
 .730 
 
 .913 
 
 1.095 
 
 86 
 
 87 
 
 .187 
 
 .374 
 
 .561 
 
 .748 
 
 .935 
 
 1.122 
 
 87 
 
 88 
 
 .192 
 
 .383 
 
 .575 
 
 .766 
 
 .958 
 
 1.149 
 
 88 
 
 89 
 
 .196 
 
 .392 
 
 .588 
 
 .784 
 
 .980 
 
 1.176 
 
 89 
 
 90 
 
 .201 
 
 .401 
 
 .602 
 
 .802 
 
 1.003 
 
 1.203 
 
 90 
 
 91 
 
 .205 
 
 .410 
 
 .615 
 
 .820 
 
 1.025 
 
 1.230 
 
 91 
 
 92 
 
 .210 
 
 .419 
 
 .629 
 
 .838 
 
 1.048 
 
 1.257 
 
 92 
 
 93 
 
 .214 
 
 .428 
 
 .642 
 
 .856 
 
 1.070 
 
 1.284 
 
 93 
 
 94 
 
 .219 
 
 .437 
 
 .656 
 
 .874 
 
 1.093 
 
 1.311 
 
 94 
 
 95 
 
 .223 
 
 .446 
 
 .669 
 
 .892 
 
 1.115 
 
 1.338 
 
 95 
 
 96 
 
 .228 
 
 .455 
 
 .683 
 
 .910 
 
 1.138 
 
 1.365 
 
 96 
 
 97 
 
 .232 
 
 .464 
 
 .696 
 
 .928 
 
 1.160 
 
 1.392 
 
 97 
 
 98 
 
 .237 
 
 .473 
 
 .710 
 
 .946 
 
 1.183 
 
 1.419 
 
 98 
 
 99 
 
 .241 
 
 .482 
 
 .723 
 
 .964 
 
 1.205 
 
 1.446 
 
 99 
 
 100 
 
 .246 
 
 .491 
 
 .737 
 
 .982 
 
 1.228 
 
 1.473 
 
 100 
 
 101 
 
 .250 
 
 .500 
 
 .750 
 
 1.000 
 
 1.250 
 
 1.500 
 
 FIGURE 9.— PARKHURST'S STANDARD DIFFERENTIAL BONUS CHART 
 OF A SET OF 1,000) FROM WHICH THE FIGURES FOR THE INDIVIDUAL 
 BONUS CHARTS SHOWN IN FIGURE 10, SEE PARAGRAPH 241. 
 
FREDERIC A. PARKHURST 
 
 157 
 
 NOTE. — S = Standard production for specific conditions, as defined by the 
 instruction card for each job and based on accurate stop watch observations. 
 A, B, C or D represent quantity at which bonus is to commence; once deter- 
 mined for a job this starting point is never changed for that job. Opposite 
 the quantity per day will be found in each column (Bonus Class) the bonus 
 per day in dollars and cents for that class. 
 
 
 
 
 a\j 
 
 Continued 
 
 :vco • 
 
 
 
 
 .0315 
 
 .036 
 
 .0405 
 
 .045 
 
 .0495 
 
 .054 
 
 .0585 
 
 .063 
 
 .0675 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 .175 
 
 .200 
 
 .225 
 
 .250 
 
 .275 
 
 .300 
 
 .325 
 
 .350 
 
 .375 
 
 .207 
 
 .236 
 
 .266 
 
 .295 
 
 .325 
 
 .354 
 
 .384 
 
 .413 
 
 .443 
 
 .238 
 
 .272 
 
 .306 
 
 .340 
 
 .374 
 
 .408 
 
 .442 
 
 .476 
 
 .510 
 
 .270 
 
 .308 
 
 .347 
 
 '.385 
 
 .424 
 
 .462 
 
 .501 
 
 .539 
 
 .578 
 
 .301 
 
 .344 
 
 .387 
 
 .430 
 
 .473 
 
 .516 
 
 .559 
 
 .602 
 
 .645 
 
 .333 
 
 .380 
 
 .428 
 
 .475 
 
 .523 
 
 .570 
 
 .618 
 
 .665 
 
 .713 
 
 .364 
 
 .416 
 
 .468 
 
 .520 
 
 .572 
 
 .624 
 
 .676 
 
 .728 
 
 .780 
 
 .396 
 
 .452 
 
 .509 
 
 .565 
 
 .622 
 
 .678 
 
 .735 
 
 .791 
 
 .848 
 
 .427 
 
 .488 
 
 .549 
 
 .610 
 
 .671 
 
 .732 
 
 .793 
 
 .854 
 
 .915 
 
 .459 
 
 .524 
 
 .590 
 
 .655 
 
 .721 
 
 .786 
 
 .852 
 
 .917 
 
 .983 
 
 .490 
 
 .560 
 
 .630 
 
 .700 
 
 .770 
 
 .840 
 
 .910 
 
 .980 
 
 1.050 
 
 .522 
 
 
 596 
 
 .671 
 
 .745 
 
 .820 
 
 .894 
 
 .969 
 
 1.043 
 
 1.118 
 
 .553 
 
 
 632 
 
 .711 
 
 .790 
 
 .869 
 
 .948 
 
 1.027 
 
 1.106 
 
 1.185 
 
 .585 
 
 
 668 
 
 .752 
 
 .835 
 
 .919 
 
 1.002 
 
 1.086 
 
 1.169 
 
 1.253 
 
 .616 
 
 
 704 
 
 .792 
 
 .880 
 
 .968 
 
 1.056 
 
 1.144 
 
 1.232 
 
 1.32G 
 
 .648 
 
 
 740 
 
 .833 
 
 .925 
 
 1.018 
 
 1.110 
 
 1.203 
 
 1.295 
 
 1.388 
 
 .679 
 
 
 776 
 
 .873 
 
 .970 
 
 1.067 
 
 1.164 
 
 1.261 
 
 1.358 
 
 1,455 
 
 .711 
 
 
 812 
 
 .914 
 
 1.015 
 
 1.117 
 
 1.218 
 
 1.320 
 
 1.421 
 
 1.523 
 
 .742 
 
 
 848 
 
 .954 
 
 1.060 
 
 1.166 
 
 1.272 
 
 1.378 
 
 1.484 
 
 1.500 
 
 .774 
 
 
 884 
 
 .995 
 
 1.105 
 
 1.216 
 
 1.326 
 
 1.437 
 
 1.547 
 
 1.658 
 
 .805 
 
 .920 
 
 1.035 
 
 1.150 
 
 1.265 
 
 1.380 
 
 1.495 
 
 1.610 
 
 1.725 
 
 .837 
 
 .956 
 
 1.076 
 
 1.195 
 
 1.315 
 
 1.434 
 
 1.554 
 
 . 1.673 
 
 1.793 
 
 .868 
 
 .992 
 
 1.116 
 
 1.240 
 
 1.364 
 
 1.488 
 
 1.612 
 
 1.736 
 
 1.860 
 
 .900 
 
 1.028 
 
 1.157 
 
 1.285 
 
 1.414 
 
 1.542 
 
 1.671 
 
 1.799 
 
 1.928 
 
 .931 
 
 1.064 
 
 1.197 
 
 1.330 
 
 1.463 
 
 1.596 
 
 1.729 
 
 1.862 
 
 1.995 
 
 .963 
 
 1.100 
 
 1.238 
 
 1.375 
 
 1.513 
 
 1.650 
 
 1.788 
 
 1.925 
 
 2.063 
 
 .994 
 
 1.136 
 
 1.278 
 
 1.420 
 
 1.562 
 
 1.704 
 
 1.846 
 
 1.988 
 
 2.130 
 
 1.026 
 
 1.172 
 
 1.319 
 
 1.465 
 
 1.612 
 
 1.758 
 
 1.905 
 
 2.051 
 
 2.198 
 
 1.057 
 
 1.208 
 
 1.359 
 
 1.510 
 
 1.661 
 
 1.812 
 
 1.963 
 
 2.114 
 
 2.265 
 
 1.089 
 
 1.244 
 
 1.400 
 
 1.555 
 
 1.711 
 
 1.866 
 
 2.022 
 
 2.177 
 
 2.333 
 
 1.120 
 
 1.280 
 
 1.440 
 
 1.600 
 
 1.760 
 
 1.920 
 
 2.080 
 
 2.240 
 
 2.400 
 
 1.152 
 
 1.316 
 
 1.481 
 
 1.645 
 
 1.810 
 
 1.974 
 
 2.139 
 
 2.303 
 
 2.468 
 
 1.183 
 
 1.352 
 
 1.521 
 
 1.690 
 
 1.859 
 
 2.028 
 
 2.197 
 
 2.366 
 
 2.535 
 
 1.215 
 
 1.388 
 
 1.562 
 
 1.735 
 
 1.909 
 
 2.082 
 
 2.256 
 
 2.429 
 
 2.603 
 
 1.246 
 
 1.424 
 
 1.602 
 
 1.780 
 
 1.958 
 
 2.136 
 
 2.314 
 
 2.492 
 
 2.670 
 
 1.278 
 
 1.460 
 
 1.643 
 
 1.825 
 
 2.008 
 
 2.190 
 
 2.373 
 
 2.555 
 
 2.738 
 
 1.309 
 
 1.496 
 
 1.683 
 
 1.870 
 
 2.057 
 
 2.244 
 
 2.431 
 
 2.618 
 
 2.805 
 
 1.341 
 
 1.532 
 
 1.724 
 
 1.915 
 
 2.107 
 
 2.298 
 
 2.490 
 
 2.681 
 
 2.873 
 
 1.372 
 
 1.568 
 
 1.764 
 
 1.960 
 
 2.156 
 
 2.352 
 
 2.548 
 
 2.744 
 
 2.940 
 
 1.404 
 
 1.604 
 
 1.805 
 
 2.005 
 
 2.206 
 
 2.406 
 
 2.607 
 
 2.807 
 
 3.008 
 
 1.435 
 
 1.640 
 
 1.845 
 
 2.050 
 
 2.255 
 
 2.460 
 
 2.665 
 
 2.870 
 
 3.075 
 
 1.467 
 
 1.676 
 
 1.886 
 
 2.095 
 
 2.305 
 
 2.514 
 
 2.724 
 
 2.933 
 
 3.143 
 
 1.498 
 
 1.712 
 
 1.926 
 
 2.140 
 
 2.354 
 
 2.568 
 
 2.782 
 
 2.996 
 
 3.210 
 
 1.530 
 
 1.748 
 
 1.967 
 
 2.185 
 
 2.404 
 
 2.622 
 
 2.481 
 
 3.059 
 
 3.278 
 
 1.561 
 
 1.784 
 
 2.007 
 
 2.230 
 
 2.453 
 
 2.676 
 
 2.899 
 
 3.122 
 
 3.345 
 
 1.593 
 
 1.820 
 
 2.048 
 
 2.275 
 
 2.503 
 
 2.730 
 
 2.958 
 
 3.185 
 
 3.413 
 
 1.624 
 
 1.856 
 
 2.088 
 
 2.320 
 
 2.552 
 
 2.784 
 
 3.016 
 
 3.248 
 
 3.480 
 
 1.656 
 
 1.892 
 
 2.129 
 
 2.365 
 
 2.602 
 
 2.838 
 
 3.075 
 
 3.311 
 
 3.548 
 
 1.687 
 
 1.928 
 
 2.169 
 
 2.410 
 
 2.651 
 
 2.892 
 
 3.133 
 
 3.374 
 
 3.615 
 
 1.719 
 
 1 
 
 964 
 
 2.210 
 
 2.455 
 
 2.701 
 
 2.946 
 
 3.192 
 
 3.437 
 
 3.683 
 
 1.750 
 
 2.000 
 
 2.250 
 
 2.500 
 
 2.750 
 
 3.000 
 
 3.250 
 
 3.500 
 
 3.750 
 
 FOR 100 AND 101 UNITS PER DAY. THIS IS A MASTER TABLE (ONE 
 BONUS CHARTS MAY BE TAKEN WHEN MAKING THE INDIVIDUAL 
 
I58 PARKHURST DIFFERENTIAL BONUS 
 
 method remains unchanged. Furthermore, he uses no "ex- 
 cursion rates." A job once set is fixed forever. 
 
 In order not to leave a wrong impression regarding the 
 closing sentence of the preceding paragraph, a word of ex- 
 planation is desirable. We are continually being confronted 
 with slight changes in pattern equipment or methods that 
 theoretically and fairly would even call for the revision of 
 the bonus prices. Where this change of equipment does not 
 make any material difference, say only 5 or 10 per cent, we 
 in the majority of cases let the original bonus chart stand. 
 We are very careful not to take advantage of any slight 
 alteration of equipment to reduce a price. We are also 
 careful to let the man realize that the entire scheme of man- 
 agement from start to finish is one that contemplates fair 
 treatment to him. 
 
 The writer can cite cases of where the head man of a 
 molding gang has asked for an additional laborer to dump 
 out, stating if this man was supplied he could raise his day's 
 production from 70 to jy molds. This was done on one 
 particular job and the job ran for weeks at the average of 
 over 76.2 good castings per day. The production of 76.2 
 castings, referred to, under bonus represents an increase of 
 103 per cent over the old piece work production, which 
 averages 37.5 castings per day. This same man asked to 
 be told a day before the pattern was to go out. of the sand so 
 that he and his gang could put up a record that no other 
 gang could touch. It is spirit of this kind which spells co- 
 operation and harmony and gives the greatest results under 
 any form of management. 
 
 Reference to Table IV in section 18 will give an idea 
 of the majority of foundry operations covered by the differ- 
 ential bonus being described. These same principles have 
 been applied, however, to miscellaneous work, such as re- 
 moving large quantities of dirt, in one instance a pile con- 
 taining 2,700 cubic yards. Reconstruction w T ork has also 
 been handled on the same basis of remuneration. In other 
 words, the entire scheme of bonus contemplates the applica- 
 tion of this method of remuneration to practically every- 
 one within the organization. 
 
FREDERIC A. PARKHURST 1 59 
 
 Bonus Chart. Form FAP117 The Aluminum Castings Co. 
 
 BONUS CHART 138—1 SHEET, SHEET 1 
 
 Instruction No Date, March 8, 1913 
 
 NOTE — The following prices will be paid as Bonus in addition to hourly 
 wages based on Good Pieces which pass in after this specific operation, except 
 that Defective not due to work specified on this Chart will not be deducted in 
 paying Bonus. 
 
 These Bonus Prices will not be lowered no matter how long the job may 
 run with this pattern, core boxes, equipment and by the method and design 
 specified in the instruction referred to and with the number of operatives 
 mentioned below. 
 
 OPERATION— Moldin g. 
 
 SYMBOL— AA-3576. 
 
 CUSTOMER— The Studebaker Corporation. 
 
 EQUIPMENT — Drag on Power rollover machine; cope on horses ram up 13 
 flat chills in cope; also tuck bars, ram and step off. 
 
 OPERATIVES AND CLASS NO.-l Molder, Class 7; 2 Helpers, Class 5. 
 
 Good 
 
 Bonus, 
 
 Bonus, 
 
 Good 
 
 Bonus, 
 
 Bonus, 
 
 Castings. 
 
 Class 5. 
 
 Class 7. 
 
 Castings. 
 
 Class 5. 
 
 Class 7. 
 
 140 
 
 .575 
 
 .805 
 
 171 
 
 .924 
 
 1.293 
 
 141 
 
 .586 
 
 .821 
 
 172 
 
 .935 
 
 1.309 
 
 142 
 
 .598 
 
 .837 
 
 173 
 
 .946 
 
 1.325 
 
 143 
 
 .609 
 
 .852 
 
 174 
 
 .958 
 
 1.34 
 
 144 
 
 .62 
 
 .868 
 
 175 
 
 .969 
 
 1.356 
 
 145 
 
 .631 
 
 .884 
 
 176 
 
 .98 
 
 1.372 
 
 146 
 
 .634 
 
 .90 
 
 177 
 
 .99 
 
 1.388 
 
 147 
 
 .654 
 
 .915 
 
 178 
 
 1.003 
 
 1.404 
 
 148 
 
 .665 
 
 .931 
 
 179 
 
 1.014 
 
 1.419 
 
 149 
 
 .676 
 
 .947 
 
 180 
 
 1.025 
 
 1.435 
 
 150 
 
 .688 
 
 .963 
 
 181 
 
 1.036 
 
 1.451 
 
 151 
 
 .699 
 
 .978 
 
 182 
 
 1.048 
 
 1.467 
 
 152 
 
 .71 
 
 .994 
 
 183 
 
 1.059 
 
 1.482 
 
 153 
 
 .721 
 
 1.01 
 
 184 
 
 1.07 
 
 1.499 
 
 154 
 
 .733 
 
 1.026 
 
 185 
 
 1.081 
 
 1.514 
 
 155 
 
 .744 
 
 1.041 
 
 186 
 
 1.093 
 
 1.53 
 
 156 
 
 .755 
 
 1.057 
 
 . 187 
 
 1.104 
 
 1.545 
 
 157 
 
 .766 
 
 1.073 
 
 188 
 
 1.115 
 
 1.561 
 
 158 
 
 .778 
 
 1.089 
 
 189 • 
 
 1.126 
 
 1.577 
 
 159 
 
 .789 
 
 1.104 
 
 190 
 
 1.138 
 
 1.593 
 
 160 
 
 .80 
 
 1.12 
 
 191 
 
 1.149 
 
 1.608 
 
 161 
 
 .811 
 
 1.136 
 
 192 
 
 1.16 
 
 1.624 
 
 162 
 
 .823 
 
 1.152 
 
 193 
 
 1.171 
 
 1.64 
 
 163 
 
 .834 
 
 1.167 
 
 194 
 
 1.183 
 
 1.656 
 
 164 
 
 .845 
 
 1.183 
 
 195 
 
 1.194 
 
 1.671 
 
 165 
 
 .856 
 
 1.199 
 
 196 
 
 1.205 
 
 1.687 
 
 166 
 
 .868 
 
 1.215 
 
 197 
 
 1.216 
 
 1.703 
 
 167 
 
 .879 
 
 1.23 
 
 198 
 
 1.228 
 
 1.719 
 
 168 
 
 .89 
 
 1.246 
 
 199 
 
 1.239 
 
 1.734 
 
 169 
 
 .901 
 
 1.262 
 
 200 
 
 1.25 
 
 1.75 
 
 170 
 
 .913 
 
 1.278 
 
 
 
 
 FIGURE 10.— BONUS CHARTS ISSUED TO EACH EMPLOYE (OR GROUP 
 OF EMPLOYES). THE FIGURES ARE TAKEN FROM THE STANDARD 
 DIFFERENTIAL BONUS CHARTS ILLUSTRATED IN FIG. 9, SEE PARA- 
 GRAPH 245. 
 
 Another application may be described in reference to a 
 bonus scheme, which has been worked out for the remunera- 
 tion of the inspection force. This is termed "quality 
 bonus." Figures have been determined representing- what 
 the ioo per cent mark for quality would be for each of the 
 following factors : 
 
 A Foundry Defective Castings. 
 
 B Total Cost of Repairing, Soldering and Welding. 
 
 C Percentage of Defective Castings returned from customers. 
 
l6o PARKHURST DIFFERENTIAL BONUS 
 
 The figures which have been determined for each of the 
 above items A, B and C, represent an efficiency mark ap- 
 plicable to quality which nets all of the inspectors a maxi- 
 mum bonus. The differential of this bonus is figured in 
 exactly the same way as described above for other work. 
 If the above marks are realized to the extent of 80 per cent 
 of the maximum, the bonus commences and by the usual 
 differential grades along to the 100 per cent mark. 
 
 Another interesting application of this differential bonus 
 method of payment, is the application of this principle to 
 brass meltng in the coke furnaces in the Detroit plant of 
 the Aluminum Castings Co. This same method will be ap- 
 plied to the brass melting in the Cleveland plant by the end 
 of the year. 
 
 The following is a copy of the differential bonus chart 
 3574D covering the details of this brass melting bonus. 
 The description of the way this is handled, as shown by the 
 chart referred to, is self-explanatory. 
 
 Bonus Chart No. 3574D 
 Differential Bonus for Melting Lynux Metal 
 
 The following prices, based on man-furnace hours per heat, will 
 be paid in addition to hourly wages for time consumed on the job by 
 the Lynux melting gang, based on a 12-hour furnace day. 
 
 The metal will be sent to the furnaces in weighed charges. It is 
 to be melted and delivered to skimming box (ready for the pouring 
 gang) at a pouring temperature high enough for the class of work 
 for which it is intended. 
 
 Furnaces are to be operated on natural draft, using coke as fuel, 
 which coke will be delivered into bins back of furnaces, but is to be 
 broken by the melting gang. A half hour will be allowed for building 
 a fire. Power hoists have been provided for lifting the pots from 
 furnaces. 
 
 The different kinds of Lynux are to be graded by the foreman ac- 
 cording to time required for melting and a chart will be issued showing 
 the "equivalent in standard heats" for any number of pounds of the 
 various grades. The standard heat is regarded as grade 6 — 240 pounds 
 in two hours. 
 
 The computation for "man-furnace hours per heat" is to be made 
 as follows: 
 
 (1) Compute from the daily job time cards the total man-hours 
 spent by the melting gang. 
 
 (2) The sum of the hours which each individual furnace runs 
 will give the total furnace hours. 
 
FREDERIC A. PARKHURST l6l 
 
 (3) For each heat melted compute from the table its "equivalent 
 in standard heats" and the sum of these gives the total standard heats. 
 
 (4) {2>Yz total man-hours) -f total furnace hours=total man-fur- 
 nace hours. 
 
 (5) Total man- furnace hours=Man-furnace hours per heat. 
 
 Total standard heats. 
 
 Delays caused by conditions beyond the control of the melting gang 
 will be allowed for. These prices will not be changed as long as present 
 conditions of operation remain the same. 
 
 Differential 
 
 Bonus Class 5—0.01406; Bonus Class 6—0.01687 
 
 Bonus based on man-furnace hours per standard heat as computed 
 from record of daily charges and heat equivalent table. (See Table 
 III.) 
 
 Man 
 
 Melters' 
 
 Each 
 
 Man 
 
 
 
 furnace 
 
 bonus 
 
 Helper bonus 
 
 furnace 
 
 
 
 5. per heat. 
 
 Class 6. 
 
 Class 5. 
 
 hrs. per heat. 
 
 Class 6. 
 
 Class 5. 
 
 5.00 
 
 $1,162 
 
 $ .969 
 
 4.50 
 
 $1,331 
 
 $1,109 
 
 4.95 
 
 1.179 
 
 .983 
 
 4.45 
 
 1.348 
 
 1.123 
 
 4.90 
 
 1.196 
 
 .997 
 
 4.40 
 
 1.365 
 
 1.137 
 
 4.85 
 
 1.213 
 
 1.011 
 
 4.35 
 
 1.382 
 
 1.151 
 
 4.80 
 
 1.230 
 
 1.025 
 
 4.30 
 
 1.398 
 
 1.165 
 
 4.75 
 
 1.247 
 
 1.039 
 
 4.25 
 
 1.415 
 
 1.179 
 
 4.70 
 
 1.263 
 
 1.053 
 
 4.20 
 
 1.432 
 
 1.194 
 
 4.65 
 
 1.280 
 
 1.067 
 
 4.15 
 
 1.449 
 
 1.208 
 
 4.60 
 
 1.297 
 
 1.081 
 
 4.10 
 
 1.466 
 
 1.222 
 
 4.55 
 
 1.314 
 
 1.095 
 
 4.05 
 
 1.483 
 
 1.236 
 
 4.00 1.500 1.250 
 
 In computing the bonus each day reference has to be 
 made to the Brass Furnace Heat Equivalent Table 2 here- 
 with. The Daily Metal Room Report gives a record of 
 each different alloy number. Each alloy number belongs 
 in one of the metal groups 5 to 10 inclusive. The sum of 
 the equivalent heat figures for each group melted each day 
 divided into the total man furnace hours for that day gives 
 the man furnace hours per heat. 
 
 The combination of man hours and man furnace hours 
 enables us to maintain a minimum of labor and assures the 
 use of a minimum number of furnaces per day. Other- 
 wise, additional furnaces might be fired up to gQt a few 
 extra heats at an excessive cost for fuel. The method has 
 been in vogue for several months and has worked out very 
 successfully. Figures in the heat equivalent table are based 
 on the results of actual time studies for the various groups 
 of metal and for varying charges. These figures check out 
 
1 62 
 
 PARKHURST DIFFERENTIAL BONUS 
 
 TABLE III 
 
 BRASS FURNACE "HEAT" EQUIVALENT TABLE 
 
 (Used in connection with Differential Bonus Chart No. 3574D. 
 Lynux Melting Practice) 
 
 1. Standard Heat — 240 lb. charge, Group 6 in 2 hours. 
 
 Pounds 
 
 per 
 
 
 charge. 
 
 5 
 
 5 
 
 .30 
 
 10 
 
 .42 
 
 15 
 
 .48 
 
 20 
 
 .54 
 
 25 
 
 .552 
 
 30 
 
 .565 
 
 35 
 
 .582 
 
 40 
 
 .600 
 
 45 
 
 .615 
 
 50 
 
 .630 
 
 55 
 
 .645 
 
 60 
 
 .660 
 
 65 
 
 .675 
 
 70 
 
 .690 
 
 75 
 
 .705 
 
 80 
 
 .720 
 
 85 
 
 .735 
 
 90 
 
 .750 
 
 95 
 
 .765 
 
 100 
 
 .780 
 
 105 
 
 .795 
 
 110 
 
 .810 
 
 115 
 
 .825 
 
 120 
 
 .840 
 
 125 
 
 .855 
 
 130 
 
 .870 
 
 135 
 
 .885 
 
 140 
 
 .900 
 
 145 
 
 .915 
 
 150 
 
 .930 
 
 155 
 
 .945 
 
 160 
 
 .960 
 
 165 
 
 .975 
 
 170 
 
 .990 
 
 175 
 
 1.005 
 
 180 
 
 1.020 
 
 185 
 
 1.035 
 
 190 
 
 1.050 
 
 195 
 
 1.065 
 
 200 
 
 1.080 
 
 205 
 
 1.095 
 
 210 
 
 1.110 
 
 215 
 
 1.125 
 
 220 
 
 1.140 
 
 225 
 
 1.155 
 
 230 
 
 1.170 
 
 235 
 
 1.185 
 
 240 
 
 1.200 
 
 
 —Standard Heat 
 
 Equivalents— 
 
 
 
 Metal Group 
 
 
 6 
 
 7 
 
 8 
 
 9 
 
 .25 
 
 .214 
 
 .082 
 
 .052 
 
 .35 
 
 .300 
 
 .100 
 
 .056 
 
 .40 
 
 .343 
 
 .117 
 
 .059 
 
 .45 
 
 .386 
 
 .133 
 
 .062 
 
 .46 
 
 .394 
 
 .150 
 
 .066 
 
 .47 
 
 .403 
 
 .153 
 
 .069 
 
 .485 
 
 .416 
 
 .156 
 
 .073 
 
 .500 
 
 .428 
 
 .159 
 
 .076 
 
 .512 
 
 .438 
 
 .162 
 
 .079 
 
 .525 
 
 .450 
 
 .166 
 
 .082 
 
 .537 
 
 .460 
 
 .169 
 
 .085 
 
 .550 
 
 .472 
 
 .173 
 
 .089 
 
 .562 
 
 .482 
 
 .176 
 
 .092 
 
 .575 
 
 .493 
 
 .180 
 
 .096 
 
 .587 
 
 .503 
 
 .183 
 
 .099 
 
 .600 
 
 .514 
 
 .186 
 
 .103 
 
 .612 
 
 .525 
 
 .190 
 
 .106 
 
 .625 
 
 .536 
 
 .193 
 
 .110 
 
 .637 
 
 .546 
 
 .197 
 
 .113 
 
 .650 
 
 .557 
 
 .200 
 
 .117 
 
 .662 
 
 .568 
 
 .203 
 
 .120 
 
 .675 
 
 .578 
 
 .206 
 
 .124 
 
 .687 
 
 .589 
 
 .210 
 
 .127 
 
 .700 
 
 .600 
 
 .213 
 
 .130 
 
 .712 
 
 .611 
 
 .216 
 
 .133 
 
 .725 
 
 .622 
 
 .219 
 
 .137 
 
 .737 
 
 .632 
 
 .223 
 
 .140 
 
 .750 
 
 .643 
 
 .227 
 
 .143 
 
 .762 
 
 .654 
 
 .230 
 
 .147 
 
 .775 
 
 .664 
 
 .234 
 
 .150 
 
 .787 
 
 .675 
 
 .237 
 
 .153 
 
 .800 
 
 .686 
 
 .240 
 
 .157 
 
 .812 
 
 .696 
 
 .244 
 
 .160 
 
 ..825 
 
 .707 
 
 .247 
 
 .163 
 
 .837 
 
 .718 
 
 .250 
 
 .166 
 
 .850 
 
 .728 
 
 .253 
 
 .170 
 
 .862 
 
 .739 
 
 .256 
 
 .173 
 
 .875 
 
 .750 
 
 .260 
 
 .176 
 
 .887 
 
 .760 
 
 .263 
 
 .180 
 
 .900 
 
 .771 
 
 .266 
 
 .183 
 
 .912 
 
 .782 
 
 .269 
 
 .186 
 
 .925 
 
 .792 
 
 .272 
 
 .190 
 
 .937 
 
 .802 
 
 .276 
 
 .193 
 
 .950 
 
 .813 
 
 .279 
 
 .196 
 
 .962 
 
 .824 
 
 .282 
 
 .200 
 
 .975 
 
 .834 
 
 .285 
 
 .203 
 
 .987 
 
 .845 
 
 .288 
 
 .206 
 
 1.000 
 
 .857 
 
 .291 
 
 .210 
 
 10 
 .129 
 .133 
 .137 
 .141 
 .145 
 .149 
 .153 
 .157 
 .162 
 .166 
 .170 
 .174 
 .178 
 .183 
 .187 
 .191 
 .195 
 .199 
 .204 
 .208 
 .212 
 .216 
 .220 
 .225 
 .229 
 .233 
 .237 
 .241 
 .246 
 .250 
 .254 
 .258 
 .262 
 .267 
 .271 
 .275 
 .279 
 .283 
 .288 
 .292 
 .296 
 .300 
 .304 
 .309 
 .313 
 .317 
 .321 
 .325 
 
 very close in practice and the first day the furnace gang 
 worked on this schedule they earned bonus. 
 
 Fig. 1 1 shows a very interesting large crank case job run 
 on the floor under bonus early in 19 12. The record of this 
 
FREDERIC A. PARKHURST 163 
 
 job during 38 days' run — four duplicate sets of equipment, 
 is as follows : 
 
 6 
 
 a 
 
 
 be 
 
 V 
 
 u 
 
 
 
 "3 
 
 s 
 
 u 
 
 > 
 
 6 
 
 1 * 
 
 bo 
 
 V 
 
 bo 
 
 '3 
 
 be 
 £ . 
 
 'Is C 
 
 
 
 
 en 
 
 h 
 
 O.T3 
 
 (U 
 
 £ 
 
 H 
 
 c 
 
 £ 
 
 < 
 
 § 
 
 Q 
 
 flw 
 
 Eh 
 
 
 
 1 
 
 1,039 
 
 3,395.0 
 
 
 
 37.72 
 
 27.55 
 
 28.6 
 
 $23.27 
 
 $ 9.121 
 
 $33,391 
 
 $1,175 
 
 2* 
 
 1,140 
 
 3,268.5 
 
 
 
 36.31 
 
 31.40 
 
 32.2 
 
 25.64 
 
 12.926 
 
 38.566 
 
 1.228 
 
 3 
 
 1,042 
 
 3,398.5 
 
 
 
 37.64 
 
 27.70 
 
 29.1 
 
 23.06 
 
 9.607 
 
 32.667 
 
 1.180 
 
 S 
 
 984 
 
 3,310.0 
 
 
 
 36.77 
 
 26.75 
 
 28.3 
 
 24.06 
 
 8.832 
 
 32.882 
 
 1.230 
 
 
 Average 
 
 :s of four 
 
 patterns 
 
 28.35 
 
 29.55 
 
 $24,005 
 
 $10,121 
 
 $34,126 
 
 $1,203 
 
 *Gang on pattern No. 2 was a picked gang considered the fastest 
 and best workers in the shop, always worked together and received 
 extra high wages owing to their efficiency. 
 
 Old average good production under combination of day wages and 
 premium — 15.15 cases. 
 
 Old average good production cost under combination of day wages 
 and premium — $1,196 per case. 
 
 Bonus average production increase, 87.2 per cent per case. 
 
 Bonus average cost increased $0,007 per case. 
 
 This is an example of an occasional case where the direct labor 
 cost is not reduced. The saving is thus confined to less overhead and 
 greater capacity due to increased production. 
 
 Old foundry defective from all causes when netting 15.15 good 
 cases per day was 25 per cent. 
 
 Foundry defective from all causes under intense bonus production 
 when netting 28.35 good cases per day was but 9.83 per cent. 
 
 Foundry defective loss under intense bonus production and Scien- 
 tific Management methods was reduced 60.7 per cent. 
 
 Average bonus equals 42.2 per cent over regular day wages. 
 
 Fig. 12 shows a typical core job, on which the average 
 daily production is 1,305 cores per nine-hour day. The 
 core illustrated is a Packard hub cap core. 
 
 Fig. 13 represents another large floor job. This is a four- 
 cylinder oil pan for which three sets of equipment were 
 made to assure the customer of a production of 75 good 
 castings per day. A great many thousand of these pans 
 have been made of this design. The average production 
 runs from 108 to 115 molds per nine-hour day. 
 
 Another typical core job is illustrated in Fig. 14. This 
 is a transmission bearing core and the average production 
 is 1,620 cores per nine-hour day. 
 
 Fig. 15 illustrates a transmission job run by a molding 
 gang of four men and two laborers employed in dumping 
 
164 PARKHURST DIFFERENTIAL BONUS 
 
 out and cutting sand. The production on this job averages 
 160 to 180 good castings per nine-hour day. 
 
 Fig. 16 illustrates a typical bench job. This is an intake 
 manifold, on which the average production is 150 molds 
 per nine-hour day. Work of this kind, as well as all other 
 bench and squeezer work is covered by the standard data de- 
 scribed in Section 13. Fig. 8 referred to in Section 13 illus- 
 trates a small variety of the work covered by these standard 
 tables. 
 
 Before closing with the subject of the application of dif- 
 ferential bonus, attention is called to Table IV. The object 
 of listing so many different items rather than expressing 
 the results obtained in total lump figures, is to show up the 
 great difference in production increases and cost decreases 
 between different jobs. In other words, it will be noted that 
 production increase runs from only a few per cent to over 
 700 per cent. The figures in the cost decrease column in a 
 few instances show practically no decrease in cost and in 
 others the decrease is 80 or more per cent. These figures 
 illustrate better than can be done in any other way, the great 
 variations that exist in the average job, both as to the pro- 
 duction standard and direct costs. In other words, under 
 ordinary methods, it is comparatively easy for jobs to be 
 limited in production due to the apparent similarity be- 
 tween one job and another. These figures also show up 
 the great difference between what in the judgment of the 
 average good mechanic should be a day's work and what 
 actually should be realized when the facts are accurately 
 determined. 
 
 In studying over the figures representing the percentage 
 of cost reduction, as shown in Table IV, it can be seen 
 that there is a very wide difference on some jobs between 
 the production increase and the cost decrease. In other 
 words, in some cases the cost decrease is very little and the 
 production increase is very high. We also have the reverse 
 condition where the cost decrease is high and the production 
 increase is much lower. All of these go to prove the neces- 
 sity which the job should run, as well as the proper balance 
 of labor required to run that job efficiently. 
 
LECTURE XXVII 
 
 DEPARTMENTAL AND PLANT EFFICIENCY BONUS 
 
 27-A. Departmental Efficiency Bonus 
 27-B. Plant Efficiency Bonus. 
 
 This lecture will cover certain applications of departmental and. 
 plant efficiency bonus, but owing to the limited time, the subject must 
 be most superficially dealt with. The student is referred to the author's 
 "Scientific Time Study and Differential Bonus" now in the course of 
 preparation, for complete information on the whole subject of special 
 and efficiency bonuses. 
 
 27-A. Departmental Efficiency Bonus 
 
 The foregoing lectures have introduced in considerable 
 detail, different phases of time study and bonus work. Vari- 
 ous applications of bonus based on standard elemental sub- 
 operation times have been referred to, always in connection 
 with some specific job or operation. To complete the en- 
 tire scheme of differential bonus as used by the author, it 
 is necessary to provide bonuses for the department heads 
 or department executives who have to do with the operation 
 of the department as a whole. Departmental efficiency 
 bonuses cannot well be determined until substantially all of 
 the direct and indirect operations or jobs have been success- 
 fully placed on bonus. 
 
 In an attempt to solve the problem of equitably applying 
 differential bonus to departmental and plant efficiencies, 
 some rather extensive studies had to be conducted to bring 
 certain elements of indirect and technical, as well as clerical 
 labor, under control and to schedule same on a bonus pre- 
 paratory to getting the departmental efficiencies themselves. 
 These studies involved the determining of necessary factors 
 for control of furnace performance, pouring gangs, chill 
 sorters, wire straighteners, sand and metal handling, sand 
 mixing, knocking out cores, inspection, trimming, soldering, 
 welding, calculating and posting bonus slips, etc., etc. For 
 
 165 
 
l66 DEPARTMENTAL EFFICIENCY BONUS 
 
 instance, I give below a copy of Bonus Chart 9053D, which 
 represents an efficiency bonus chart for carrying and pour- 
 ing metal. It is an example of a study, which, though not 
 particularly complex in itself, took considerable time to com- 
 plete and had to be completed before the bonus could be 
 issued. 
 
 BONUS CHART 9053D, MAY 1, 1917; DEPT. IF, 
 BONUS CLASS 4 
 
 Efficiency Bonus Chart for Carrying and Pouring Lynite Metal 
 
 to 1M and IMa When Using a Hand Ladle and 
 
 Two Wheel Carrier 
 
 Standards : 
 
 .103 man minutes per pound metal poured in 1M unit. 
 .164 man minutes per pound metal poured in IMa unit. 
 
 The following differential bonus will be paid in addition to 
 hourly wages, based on the number of pounds of metal poured 
 by the men who used the hand ladles and the two wheel carriers 
 in 1M and IMa department, except that all defective castings due 
 to the carelessness of the pouring gang will be deducted when 
 paying bonus. 
 
 The following instructions and specifications must be strictly 
 followed : 
 
 Equipment : 
 
 The following equipment is to be used when pouring Lynite 
 metal in 1M foundry unit: 
 
 1 — An iron hand ladle which weighs when empty 26 pounds 
 and when full of molten aluminum metal within 1" from 
 the top will hold 28 pounds of metal ; with the ladle use a 
 two wheel carrier which can be pushed over the floor with 
 very little effort. 
 
 2 — A pyrometer is located at the North entrance of 1M, in a 
 convenient place so every pot can be tested for correct 
 temperature; the man carrying metal must skim every pot 
 while the temperature is taken. 
 
 3 — Time allowance is figured in the standard time to keep all 
 equipment in first class condition. Each pouring pot must 
 be cleaned and blackened every morning and the carrier 
 oiled. When not in use all equipment is to be kept in its 
 proper place. 
 
 
FREDERIC A. PARKHURST 1 67 
 
 4 — The pouring gang must keep the floor clean around the 
 pyrometer for a radius of five feet. They must not allow 
 any accumulation of skimmings or spilled metal to collect 
 at this place. 
 
 Method 
 
 The method used in handling the melted metal with hand 
 ladle and carrier is as follows : One man operates the hand ladle. 
 He dips the metal out of the furnace with the same ladle he used 
 to carry the metal. The ladle is then placed in the two wheeled 
 carrier and the man pushes carrier along on the floor to the pyro- 
 meter. Here the metal is tested for temperature, and each ladle 
 full is skimmed. The metal is then taken where it is needed and 
 poured. The operator returns to the furnace ready for another 
 ladle of metal. 
 
 Tally : 
 
 The tally will be taken from the production report and listed 
 on a special sheet, a sample of which is incorporated in this chart. 
 
 Gr. Wgt. Gr. Wgt. 
 
 No. Pounds Pounds Time Gang 
 
 Piece Cstgs. Per Metal Man Worked Dept. Effi- 
 
 Dept. Symbol Poured Casting Poured No. Minutes Worked ciency Bonus 
 
 The weights of each casting must include all gates, sprues, 
 risers, etc., and the total weight of metal poured will be computed 
 by multiplying the gross castings weight by the number of cast- 
 ings made from each pattern. The total for all patterns will give 
 the total weight of metal carried for the day. All defective cast- 
 ings due to any fault of the pouring gang will be deducted when 
 figuring bonus and the gang zvill lose credit for the pounds of 
 metal in every defective casting they make. 
 
 Standard Times : 
 
 The standard time by which the bonus will be figured when 
 carrying metal in hand ladle using two wheel carrier from any 
 part in IF to any point in 1M unit is .105 man minutes per pound 
 of metal poured. 
 
 The standard time by which the bonus will be figured when 
 carrying metal in hand ladle using two wheel carrier from any 
 point in IF to any point in IMa is .164 man minutes per pound 
 of metal poured. 
 
 Method of Figuring- Bonus : 
 
 The bonus will be figured daily from the production report 
 and when the total efficiency reaches 80%, bonus in Class 4 will 
 be paid in proportion to the time each man works on the job. A 
 specimen sheet showing the computation of the bonus is incor- 
 porated in this chart. 
 
1 68 DEPARTMENTAL EFFICIENCY BONUS 
 
 Example of Figuring Bonus : 
 
 Total pounds of metal poured in 1M 10,000 pounds 
 
 " IMa 5,000 pounds 
 10,000 X -103 = 1030 standard man minutes 
 5,000 X .164 = 820 
 
 Total 1850 
 
 4 men worked 9 hours on the job. 
 
 4 X 540 = 2160 actual man minutes. 
 
 Then the standard man minutes divided by the actual man 
 minutes worked on the job equals the working efficiency of the 
 gang. 
 
 1850 
 
 = 85.5% Efficiency 
 
 2160 
 
 85.5% Bonus, Class 4, pays $.739 bonus for 9 hours for each man. 
 
 The following prices will not be lowered no matter how long 
 the job may operate provided the method and equipment specified 
 in this chart are not changed. 
 
 EFFICIENCY BONUS CHART 9053D, 
 
 BONUS CLASS 4 
 
 Standard : 
 
 .103 Man minutes per pound for all metal poured in 1M 
 .164 " " " " " " " " " IMa 
 
 Differential for 1% Efficiency = $.018 
 
 Gang Bonus Gang Bonus 
 
 efficiency 
 
 Paid 
 
 Efficiency 
 
 Paid 
 
 9 hrs. 
 
 9 hrs. 
 
 9 hrs. 
 
 9 hrs. 
 
 80 
 
 .640 
 
 91 
 
 .838 
 
 81 
 
 .658 
 
 92 
 
 .856 
 
 82 
 
 .676 
 
 93 
 
 .874 
 
 83 
 
 .694 
 
 94 
 
 .892 
 
 84 
 
 .712 
 
 95 
 
 .910 
 
 85 
 
 .730 
 
 96 
 
 .928 
 
 86 
 
 .748 
 
 97 
 
 .946 
 
 87 
 
 .766 
 
 98 
 
 .964 
 
 88 
 
 .784 
 
 99 
 
 .982 
 
 89 
 
 .802 
 
 100 
 
 1.000 
 
 90 
 
 .820 
 
 
 
 In reference to the above bonus chart, the following tabulation 
 shows a record under date of May 1, 1917, of how the tally was 
 kept on this job for the several men employed. 
 
FREDERIC A. PARKHURST 
 
 169 
 
 H 
 
 ^ CO 
 
 d h 
 
 < « 
 
 Q < 
 
 Ph 
 
 W £ 
 
 « m 
 
 P ffi 
 
 o 
 
 1 — 1 
 
 H 
 U 
 
 w 
 
 o 
 
 o 
 
 W ■- 
 
 2 .5 Ph 
 
 71 H 
 
 t/5 s 
 
 'Z (J PM 
 
 S o 
 
 H W 
 
 pq u 
 
 ._, ^3 
 
 B « 
 
 OS s 
 
 Ph *** 
 
 s £ 
 
 ■* "* Tf rf- c^rorotN 
 
 ,—, ,_, ^h ^h ^Tj-t^ro 
 
 OOOO PO ro CM CM 
 
 O LO ITS 
 
 in co ro 
 
 LO ID lO in 
 
 ioi/)")m 
 
 miomio 
 
 up in 10 in in OOOOO t^h 1^ ^h ,-t tm 00 CC i 00 00 
 
 ON ON On On ON oooocooooo 
 
 00000 
 
 
 00000 ino>ni-nin 
 t^r^t^t^oo t^ vo r~* t^ 00 
 
 iO irj >0 10 M VO vn VO VO 'O 
 
 ooomm ommo 
 
 KKtNO ON0000MD 
 
 m in m m cm \o m in 00 
 
 QQQQ 
 
 CM CM CM CM 
 in in in in 
 
 OOOO 
 0\ On On On 
 
 QQPQ 
 
 CM CM CM CM 
 
 in in in in 
 
 OOOO 
 On On ON On 
 
 QQQQ 
 
 CM CM CM CM 
 
 in in in in 
 
 OOOO 
 On On 0\ On 
 
 QQG 
 
 m co bo 
 in in in 
 
 T 
 
 be 
 "C 
 o 
 
 Ph 
 
 ■2 'si 
 H 
 
 o 
 
 Ph 
 
 SCO CM 
 no VO 
 
 
 O 
 
 Ph 
 
 Pouring 
 .616 
 628 
 666 
 
 rJ-00 mCM 
 — 1 ^i-Om 
 
 \0 NO NO NO 
 
 m co CM ■* 
 
 CM CM OCn 
 
 \o>ovopo 
 
I7O DEPARTMENTAL EFFICIENCY BONUS 
 
 As another example of what is involved in the preparation prior 
 to the determination of departmental efficiencies, the following record 
 of a study in connection with department 1Q devoted to the mixing of 
 core sand, will be of interest: 
 
 TIME STUDIES IN iQ 
 
 THE PROBLEM 
 
 The work in iQ Department consists of a great number 
 of miscellaneous operations, all of which pertain to the 
 mixing of core sand. 
 
 The sand is unloaded from the cars in the storage sheds 
 and storage yards and used from storage as conditions 
 of production demand. The outline of sand storage plan 
 (a copy of which accompanies this report) shows that 
 there are twenty-two different storage sheds and one stor- 
 age yard, all at different distances from the sand mixing 
 room. The sand is brought from the storage shed to the 
 mixing room in wheel barrows and dumped in special bins 
 provided at mixing machines. 
 
 Before the time studies were taken it was necessary to 
 slightly rearrange the layout of the sand mixing department 
 and blue prints show the arrangement before and after the 
 change was made. The big item in this change was keep- 
 ing the sand wheelers from delaying the work of the man 
 who fills the pails. The new arrangement as shown on the 
 blue print shows how the wheelers fill the storage spaces 
 from behind and do not interfere with the men who fill the 
 measuring pails for the machines. 
 
 The other miscellaneous operations in iQ Department 
 are as follows : 
 
 1. Filling the measuring buckets for mixing machines. 
 
 2. Mixing regular standard and special batches with machines. 
 
 3. Mixing special standard batches with small electric riddle. 
 
 4. Transferring of the mixing sand by the Lary car to the core- 
 rooms. 
 
 5. Grinding rosin and sweeping up the floor and miscellaneous 
 trips to the stock-room for supplies. 
 
 These operations were carefully investigated and studied 
 
 with watches until the times and standard methods were 
 
 established. 
 
FREDERIC A. PARKHURST \J\ 
 
 Method 
 
 The method used to establish the standards was as fol- 
 lows : 
 
 The first job study was for wheeling sand from the stor- 
 age bins to the mixing machine. Several different men 
 were taken and observations made on their work. We 
 wanted to select a man who was steady and reliable in this 
 work and a good average worker. Observations were made 
 on eight men until we found the man who met the physical 
 qualifications the conditions required. The elemental de- 
 tailed studies were studied until they were all standardized 
 as follows : 
 
 1. Trip from the mixing room to the storage shed, wheel-barrow 
 empty, standardized on a basis of the distance per foot. 
 
 2. Load wheel-barrow with sand, standardized on a basis of six 
 buckets per load or three hundred pounds per trip. 
 
 3. Trip from the storage shed to the mixing room, wheel-barrow 
 loaded, standardized on a basis of per foot of distance traveled. 
 
 4. Dump sand in storage bin, standard for all loads. 
 
 When these standards were determined they were used 
 to figure the standard times per trip to storage bins and 
 bonus was established on this standard time per trip. (Op- 
 erations 2 and 4 are standards for all trips ; Operations i 
 and 3 depend on the distance traveled.) 
 
 In order to have a good check on. our standard time we 
 have selected several different men and made complete day's 
 observation on their work. We found these men made 
 bonus for the total day's work for several days in succession 
 and were anxious to be put on bonus. 
 
 Other operations have been timed and studied in the same 
 manner and in every case these elemental operations were 
 standardized and often used on several different operations. 
 
 Based on the above, bonus chart 9036D, dated Feb. 12, 
 19 1 7, applying to department DiQ was issued reading as 
 follows : 
 
172 DEPARTMENTAL EFFICIENCY BONUS 
 
 FORMULA USED IN COMPUTING THE STANDARD 
 TIMES FOR WHEELING SAND FROM STOR- 
 AGE BINS TO MIXING MACHINES 
 
 (WxL) plus (DxT) plus K plus (dxt) equals Time 
 Allowed for wheeling standard load of sand any dis- 
 tance, where 
 
 W = weight of sand 
 
 L = standard loading time per pound 
 
 D = distance wheeling load 
 
 d = distance wheeling empty wheelbarrow 
 
 T = standard time for wheeling a standard 300 pound load a 
 
 distance of 1 foot 
 t = standard time for wheeling empty wheelbarrow distance 
 
 of 1 foot 
 K = standard time dumping load. 
 
 The following are the values for the items listed 
 above, these all being - based on detail time studies. 
 
 W — 300 pounds sand 
 
 L = .00415 minute 
 
 D = distance wheeling loaded wheelbarrow 
 
 T = .054 minute time to wheel standard 300 pound load distance 
 
 of 1 foot 
 d = distance to wheel empty wheelbarrow 
 t = .004 minute time to wheel empty wheelbarrow distance of 
 
 1 foot 
 K = .22 minute time to dump load. 
 
 Fatigue allowances were as follows : 
 
 10% additional time for all trips beyond one-half the distance 
 down the shed. 
 
 20% additional time for all trips that were not further than one- 
 half the distance down the shed. 
 
 BONUS CHART 9036D, FEB. 12, 1917; DEPT. 1Q, 
 BONUS CLASS 4 
 
 Bonus Chart for Wheeling Sand in iQ from the 
 
 Various Sand Sheds and Yard Storage to 
 
 the Mixing Machines, 300 Pounds of 
 
 Sand for a Wheel-Barrow Load 
 
 Operations : 
 
 •Load wheel-barrow. 
 Wheel to mixing machines. 
 Dump sand in bins. 
 Return to sand storage. 
 
FREDERIC A. PARKHURST 1 73 
 
 Equipment 
 
 All sand is to be wheeled in a metal wheel-barrow with ca- 
 pacity of three hundred pounds or more of sand. A good sand 
 shovel which will hold not less than twenty-one pounds of sand. 
 
 Method : 
 
 The sand is loaded in wheel-barrow not less than three hun- 
 dred pounds per load and wheeled to bins in mixing room where 
 it is dumped into the proper bins. 
 
 Method of Tally and Computation of Bonus : 
 Example of Figuring Bonus : 
 
 A tally clerk stationed at the entrance of the mixing room 
 records the man's numbers, the bins from which he wheels the 
 sand and the clock time each load is delivered. The number of 
 wheel-barrow loads from each bin is multiplied by the respective 
 standard man minutes allowed. The standard man minutes di- 
 vided by the actual minutes worked by the operator equals the 
 working efficiency and bonus will be paid according to the working 
 efficiency of the operator. 
 
 In case a weighing scale is installed, all sand will be weighed. 
 The total weight of sand wheeled by one man from each storage 
 bin, multiplied by the standard time per pound for that respective 
 bin equals the standard minutes. The standard minutes divided by 
 the actual minutes equals the working efficiency. 
 
 Bonus will be paid according to the working efficiency of the 
 operator. 
 
 The following is a list of standard times per trip and standard 
 time per pound of sand wheeled : 
 
 
 Standard Time in 
 
 Standard Time in 
 
 n Door 
 
 Minutes per trip 
 
 Minutes per pound 
 
 1 
 
 2.24 
 
 .00746 
 
 2 
 
 2.44 
 
 .00748 
 
 4 
 
 2.64 
 
 .00880 
 
 5 
 
 2.45 
 
 .00817 
 
 6 
 
 2.98 
 
 .00993 
 
 8 
 
 3.20 
 
 .01067 
 
 10 
 
 3.43 
 
 .01143 
 
 12 
 
 3.65 
 
 .01216 
 
 14 
 
 3.73 
 
 .01242 
 
 16 
 
 3.93 
 
 .01310 
 
 18 
 
 4.20 
 
 .01400 
 
 19 
 
 3.81 
 
 .01270 
 
 20 
 
 4.51 
 
 .01503 
 
 21 
 
 4.20 
 
 .01400 
 
 22 (yard) 
 
 5.39 
 
 .01799 
 
 23 
 
 4.51 
 
 .01503 
 
174 DEPARTMENTAL EFFICIENCY BONUS 
 
 Example of Figuring- Bonus : 
 
 Suppose one man wheeled thirty-eight loads of sand from 
 pile in the yard, seventy-five loads of dry sand from door 1, and 
 twenty loads from door 14. This man worked nine hours on the 
 job. Determine his bonus. 
 
 38 loads from yard X 5.39 Standard Min. Allow = 204.82 Std. Min. 
 
 75 " " door X2.24 " " " = 168.00 " 
 
 20 " " " 14X3.73 " " " = 74.60 " 
 
 Total 447.42 " 
 Total standard minutes worked = 447.42 
 " actual " = 540. 
 
 447.42 
 
 Man efficiency = 82.8 
 
 540 
 For 82.8% efficiency for 9 hours in Class 4 pays $.690 Bonus. 
 
 The following prices will be paid as bonus in addition to 
 hourly wages based on the working efficiency of each man on the 
 job. These bonus prices will not be lowered no matter how long 
 the job may run, provided the equipment and method specified in 
 this chart are not changed. 
 
 Differential per 1% efficiency = $.018 
 
 % Efficiency 
 
 Bonus Paid 
 
 % Efficiency 
 
 Bonus Paid 
 
 9 hrs. 
 
 9 hrs. 
 
 9 hrs. 
 
 9 hrs. 
 
 80 
 
 .640 
 
 91 
 
 .838 
 
 81 
 
 .658 
 
 92 
 
 .856 
 
 82 
 
 .676 
 
 93 
 
 .874 
 
 83 
 
 .694 
 
 94 
 
 .892 
 
 84 
 
 .712 
 
 95 
 
 .910 
 
 85 
 
 .730 
 
 96 
 
 .928 
 
 86 
 
 .748 
 
 97 
 
 .946 
 
 87 
 
 .766 
 
 98 
 
 .964 
 
 88 
 
 .784 
 
 99 
 
 .982 
 
 89 
 
 .802 
 
 100 
 
 1.000 
 
 90 
 
 .820 
 
 
 
 As another example, bonus chart 9058D issued May 26, 1917, 
 for department D1Q is reproduced below. This chart covers the 
 preparing of pitch and rosin for binders, the delivery of binders 
 to the mixing machines, and various janitor's duties in depart- 
 ment 1Q. 
 
 BONUS CHART 9058D, MAY 26, 1917; DEPT. 1Q, 
 BONUS CLASS 3 
 
 Efficiency Bonus Chart for Preparing Pitch and 
 Rosin Binder, Deliver Binder to Mixing Ma- 
 chines and Various Janitor Duties 
 Department iO 
 
 Bonus paid 80% efficiency. 
 
 Standard per pound rosin and pitch prepared for mixing ma- 
 chines .14 man minutes. 
 Trip to IN with refuse 8 man min. 
 Trip to stock room for supplies 5 man min. 
 Shovel in elevator all loose sand 30 man min. 
 General sweep and clean-up of entire department 30 man min. 
 
FREDERIC A. PARKHURST 1 75 
 
 The following differential bonus will be paid in addition to 
 hourly wages, based upon the number of pounds of pitch and 
 rosin binder delivered to sand mixing machine and also upon the 
 efficiency attained in the performances of certain other duties as 
 specified in this chart. 
 
 The following instructions, methods and specifications must be 
 strictly adhered to : 
 
 Duties and Standard Time Allowance for each : 
 
 GROUP No. 1 
 
 1. Breaking open barrel of rosin or pitch in yard. 
 
 Using a pickax the iron hoops are cut in two and then 
 with a few blows the barrel will fall apart. The top, bot- 
 tom and staves of each barrel must be cleaned of rosin or 
 pitch by scraping with the edge of a shovel. The staves, 
 top and bottom are placed in a pile and the hoops ar- 
 ranged in another pile. 
 
 2. Delivery of Material 
 
 The barrel staves, tops and bottoms are loaded on a wheel- 
 barrow and taken to wood pile in yard. It is possible to 
 load the wood from about two barrels at one time. The 
 hoops are wheeled to box in yard for holding rubbish. 
 The rosin or pitch is loaded in a wheel-barrow and hauled 
 to 1Q where it is placed in separate bins until such time 
 as used. During rainy weather the barrels must be in- 
 doors when opened. 
 Standard time for Group No. 1 (operations 1 and 2) .0483 
 man min. per pound. 
 
 GROUP No. 2 
 
 3. Filling pulverizing mills with pitch and rosin. 
 
 The pitch and rosin should be broken into small lumps 
 before being placed in the mills. E'ach mill should be 
 filled to its capacity and refilled as soon as possible. The 
 mixtures must be thoroughly pulverized and must be free 
 from lumps when taken from the mill. 
 Standard time for Group No. 2 (operation 3) .0557 man min. 
 per pound. 
 
 GROUP No. 3 
 
 4. Delivery of mixture to sand mixing machines. 
 
 As to the pitch and rosin, it is pulverized and the mixture 
 taken from the mill and shoveled into metal tote pans or 
 at times into a large wooden box which has a capacity of 
 six tote pans. The pans or boxes are weighed and then 
 dragged in to the sand mixing machines. It is important 
 that there be a sufficient supply of rosin and pitch binder 
 at the sand mixing machines at all times. 
 Standard time for Group No. 3 (operation 4) .0360 man min. 
 per pound. 
 
 As the operations in Groups 1, 2 and 3 are all based upon the 
 same factor, — that is, the pounds of mixture produced, they can be 
 considered as one unit. So the total of the standard times for 
 Group 1 (1. Breaking open barrel of rosin or pitch .0403 man. min. 
 
 (2. Delivery of material .0080 " 
 
 Group 2 (3. Filling mills .0557 " 
 
 Group 3 (4. Delivery of binder .0360 " " 
 
 Total .1400 " 
 
I76 DEPARTMENTAL EFFICIENCY BONUS 
 
 GROUP No. 4 
 Miscellaneous Operations : 
 
 5. The refuse which comes from the riddle on the sand mix- 
 ing machine is to be wheeled to the riddle in Dept. IN. 
 The wheel-barrow must be well filled; no time will be 
 allowed unless wheel-barrow is full. 
 
 Standard time for this operation is 8.00 minutes per trip. 
 
 6. Sometimes it is necessary for a man to be sent to the store 
 room for supplies. 
 
 Time allowance for this operation 5.00 minutes per trip. 
 
 7. Sand falls from buckets in elevator and must at times be 
 shoveled into pit. 
 
 Time allowance for this operation 30 minutes per day. This 
 work should be done as often as it is necessary in order to keep 
 floor clean. 
 
 8. For making a general clean-up of the entire floor of 1Q 
 so that it is satisfactory to the foreman, an allowance of 30 minutes 
 per day is made. 
 
 Equipment : 
 
 1. Metal wheel-barrow, common foundry type. 
 
 2. Short spade. 
 
 3. Ordinary pickax. 
 
 4. Hammer for breaking lumps of rosin and pitch. 
 
 5. Four pulverizing mills. 
 
 6. Metal tote boxes ; average capacity sixty-two pound mixture. 
 
 7. Large wooden box ; capacity equal to six tote boxes. 
 
 8. Broom. 
 
 Method of Figuring Bonus : 
 
 The bonus will be figured daily from a standard tally sheet 
 showing the total pounds of rosin and pitch binder delivered to 
 the sand mixing machines. Time allowance is made for each load 
 of refuse wheeled to IN ; for each trip to store room for supplies, 
 for shoveling sand which falls from elevator into pits, and for 
 general sweeping up of the floor of mixing room, including pas- 
 sageway as far as 2F department. 
 
 Suppose thirty-one hundred pounds of binder are delivered to 
 mixing machines. 
 
 The standard time per pound for all operations covering 
 
 the preparation of the binder is .14 man minutes. 
 
 3100 X -14 = 434 standard man minutes. 
 
 Also four wheel-barrow loads of rubbish were hauled to 
 
 riddle in IN. 
 
 4 X 8.00 = 32.00 standard man minutes. 
 
 Sand was shoveled into elevator pits in a satisfactory man- 
 ner during the entire day. 
 
 Allowance 30 man minutes. 
 
 The entire floor of mixing room was cleaned in manner 
 
 satisfactory to the foreman. 
 
 Allowance 30 man minutes. 
 
 No trips made to store room. 
 
FREDERIC A. PARKHURST 1 77 
 
 Total standard man minutes for all operations — 
 
 1. Preparation and delivery of mixture 434. 
 
 2. Wheel into rubbish heap 32.00 
 
 3. Shovel sand into elevator pit 30.00 
 
 4. General sweep up 30.00 
 
 Total 526.00 
 Man's clock card showed 9 hours, or 540 
 Standard minutes 526 
 
 Efficiency — ■ or = 97.5% 
 
 Actual minutes 540 
 The bonus for 97.5% efficiency for 9 hrs. in Class 3 = $.717 
 The following prices paid as bonus will not be lowered, no 
 matter how long the job may operate, provided the method and 
 equipment specified in this chart are not changed. 
 Differential per 1% efficiency = $.0135 
 
 Efficiency 
 
 Bonus Paid 
 
 Efficiency 
 
 Bonus Paii 
 
 9 hrs. 
 
 9 hrs. 
 
 9 hrs. 
 
 9 hrs. 
 
 80 
 
 .480 
 
 91 
 
 .629 
 
 81 
 
 .494 
 
 92 
 
 .642 
 
 82 
 
 .507 
 
 93 
 
 .656 
 
 83 
 
 .521 
 
 94 
 
 .669 
 
 84 
 
 .534 
 
 95 
 
 .683 
 
 85 
 
 .548 
 
 96 
 
 .696 
 
 86 
 
 .561 
 
 97 
 
 .710 
 
 87 
 
 .575 
 
 98 
 
 .723 
 
 88 
 
 .588 
 
 99 
 
 .737 
 
 89 
 
 .602 
 
 100 
 
 .750 
 
 90 
 
 .615 
 
 
 
 There are many more similar and many more complex 
 problems which have to be solved before the departmental 
 efficiency determinations can be made. 
 
 I am bringing in unusual applications of time study and 
 differential bonus so as to illustrate the point that depart- 
 mental efficiency does not always, in fact very seldom, de- 
 pend solely on the average efficiency of all of the direct jobs 
 or operations which may themselves be under bonus. In 
 machine departments, or departments working with purely 
 mechanical apparatus and with material that can be con- 
 trolled by the piece, the application of departmental effi- 
 ciency bonus is very simple. In the foundries, for example, 
 there are a variety of elements of indirect labor which in 
 themselves represent, in the aggregate, a very large propor- 
 tion of the man hours worked in the plant. These must be 
 brought under control by a scientific analysis and some equi- 
 table scheme of bonus developed to remunerate these men 
 
I78 DEPARTMENTAL EFFICIENCY BONUS 
 
 for high efficiency, or else to obtain, departmental efficiency 
 records, we should have to exclude a tremendous proportion 
 of the hours. This has been done in some plants because 
 it has been considered impracticable or far from economi- 
 cal to take the time to bring these elements under control. 
 
 Department DiQ referred to above was under observa- 
 tion by two time study men for an aggregate time for them 
 both, totaling nearly four months. The result of the study, 
 however, enabled us to put all of the labor in that depart- 
 ment on bonus, greatly increasing its efficiency and effecting 
 a saving in a short time equal to about 2000 hours per week, 
 or $600.00; or a saving of about $2500.00 per month based 
 on the same volume of business. 
 
 After all of the various classes of work mentioned above, 
 and all of the direct or indirect operations or jobs have been 
 standardized and controlled through the medium of bonus 
 charts, and men have been trained to work in accordance 
 with them, a department report is issued daily by the tally 
 and time clerks to the time study department. These re- 
 ports are totaled for the week and from them is determined 
 the departmental efficiencies. 
 
 Based on such records as the foregoing, it is possible to 
 institute the departmental efficiency bonus, which is well 
 illustrated by our departmental and plant efficiency bonus 
 chart 9030D, copy of which follows : 
 
 DEPARTMENTAL AND PLANT EFFICIENCY BONUS 
 CHART 9030D, FAP 205 
 
 Bonus Covered by this Chart is Payable only to 
 Foremen and Department Heads, and in Ac- 
 cordance with Instruction 145. 
 
 The efficiency bonus will be figured for each department separately 
 as fast as bonus in each department will permit of the department 
 reaching an efficiency of at least 60%. The departmental efficiency 
 bonus will be paid every week based on each department's efficiency, 
 irrespective of the efficiency of other departments. 
 
 On the 15th of every month, an additional bonus will be paid, 
 based on the average plant efficiency of the whole plant. 
 
FREDERIC A. PARKHURST 
 
 179 
 
 The Bonus will be figured in accordance with the following for- 
 mula in which : 
 
 H = Hours paid for in each department or plant, 
 h = Hours on Bonus. 
 
 R = Reciprocal of average efficiency of all jobs on bonus X 100. 
 K = Constant (2) 
 H 
 
 = Department or plant efficiency. 
 
 h X R + K (H-h) 
 
 The above formula is the same for both departmental and Plant 
 efficiency, except that the value given to each of the symbols will be 
 the department values in one case and the plant values in the other. 
 The value given to "H" in every case will be the total hours paid 
 for as shown by the clock time cards exclusive of certain hours rep- 
 resented by a list on file with the Local Manager, which are to be de- 
 ducted when figuring each department's and each plant's value for "H." 
 Example of Bonus Figured 
 H = 1242 hours 
 h = 1011 " 
 Average efficiency for all jobs = 92% 
 
 1 x 100 
 
 R = = 1.088 
 
 92 
 
 Then : 
 
 1242 
 
 1242 
 
 1011 X 1.088 + 2 (1242-1011) 1561 
 .795 X 100 = 79.5% 
 79.50% pays 15.77% Salary 
 
 = .795 
 
 iciency 
 
 % of Salary Paid 
 
 Efficiency 
 
 % of Salary Paid 
 
 100 
 
 25.00 
 
 79 
 
 15.55 
 
 99 
 
 24.55 
 
 78 
 
 15.10 
 
 98 
 
 24.10 
 
 77 
 
 14.65 
 
 97 
 
 23.65 
 
 76 
 
 14.20 
 
 96 
 
 23.20 
 
 75 
 
 13.75 
 
 95 
 
 22.75 
 
 74 
 
 13.30 
 
 94 
 
 22.30 
 
 73 
 
 12.85 
 
 93 
 
 21.85 
 
 72 
 
 12.40 
 
 92 
 
 21.40 
 
 71 
 
 11.95 
 
 91 
 
 20.95 
 
 70 
 
 11.50 
 
 90 
 
 20.50 
 
 69 
 
 11.05 
 
 89 
 
 20.05 
 
 68 
 
 10.60 
 
 88 
 
 19.60 
 
 67 
 
 10.15 
 
 87 
 
 19.15 
 
 66 
 
 9.70 
 
 86 
 
 18.70 
 
 65 
 
 9.25 
 
 85 
 
 18.25 
 
 64 
 
 8.80 
 
 84 
 
 17.80 
 
 63 
 
 8.35 
 
 83 
 
 17.35 
 
 62 
 
 7.90 
 
 82 
 
 16.90 
 
 61 
 
 7.45 
 
 81 
 
 16.45 
 
 60 
 
 7.00 
 
 80 
 
 16.00 
 
 
 
 Differential 1% Efficiency Pay, .45% of Salary. 
 THE ALUMINUM CASTINGS CO. 
 
 January 1, 1917. 
 
l8o PLANT EFFICIENCY BONUS 
 
 27-B. Plant Efficiency Bonus 
 
 The determination of the plant efficiency bonus is a com- 
 paratively simple matter, as it is calculated at the end of 
 each month from a summary of the performance of each 
 department for that month. The departmental summary is 
 made up from weekly departmental records mentioned pre- 
 viously in this lecture. 
 
 The departmental efficiency bonus shown above is paid 
 every payday and for the departmental efficiency for the 
 last preceding week. The plant efficiency bonus is paid on 
 the 15th of each month on the plant efficiency for the pre- 
 ceding month. 
 
 As previously stated, the determination of these depart- 
 mental and plant efficiencies is one of the last steps to be 
 taken in connection with the installation of scientific meth- 
 ods throughout the operating departments of a plant. By 
 the time the departmental and plant efficiency bonuses are 
 in operation and bonus is being earned under the schedule 
 described in this lecture, substantially everyone in the organ- 
 ization except certain office employees, is participating in 
 some kind of a bonus. Each plant and each department in 
 the plant works in accordance with a list authorized from 
 time to time, naming those who participate in either the 
 departmental or plant efficiency bonus, or both. Likewise, 
 there is a standard list published which controls the number 
 of hours which can be subtracted from the total hours 
 worked in each department or plant before the "H" hours 
 are computed. 
 
 The following table is a typical example of how the de- 
 partmental efficiency is summarized for each month. The 
 total gives the plant efficiency on which to base the plant 
 efficiency bonus. 
 
FREDERIC A. PARKHURST 
 
 I&I 
 
 ™ WC 3 
 tg o ^ rt C 
 
 ^"3 5 « S 
 
 £"-*-. Oh o 
 
 o oW 
 
 P 
 
 W = 3 
 
 rt ^_K 3 
 t! 3 n) C 
 
 H^S 
 
 
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 i^S^CMi^^NOu^^^OOt^COr^CMTi-NO^NO iOmfO-HCO't 
 
 OOcO^M^ONNaN^OtONOO't CO 00 "-> u"i CNJ lO <N1 ■* CM tNJ ON 
 
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 ^S^CMi^^NO^u^i^oNCCoot>;<>iioNorgt^ vo^>^5— ">o^ 
 
 N^OOM'* i n^NriNONMNNN>0'+^'-; ( N , l: ^ "? ^ ^ ^ 
 
 ^co'vo^o^^CMTt^ONdvovriCMt^Tt-^^oQiHrQ^t^ocM 
 
 S^^-^S5t^r<cocooNONoocONOoot^fot^ coooTi-^-q-NO 
 
 irioooMiriCNKN>-id , tCNi'-<tsOHtS'-*rN|fN]iofOtO , *'-|HH 
 
 t^ On in t> i-h t^ t-h oq On rq On © t^. On ^ p CO MD NO <~q CO ■* CM O ; NO ■<+ 
 
 i^cJofNi^JoNrM^^od^^ONc^ONONodoONr^i^'-Ht^.ONp'O 
 
 t^^O^^ONCMNO^rslNO^ONrvjCOcO^^OONONOCOuo^^r 
 
 ONQOH^^u^^^cocyj'^t^ONrNivop^t'-'jq^^op^ON^-NO 
 ^^i^rt^rHin^Nooo on <-*5 ^i cm o -a- © ^- r <i^)-^' s o i o 
 
 •=K 
 
 O v o o " 
 
 O fi— ■ 
 
 £•- s 
 
 
 --■^■CMON<NIONLOLOrO^)-(^)r^CNll-OCO 
 
 <r> oo.on u->u~>ONONLnio< v ^ON r NiONro'— io 
 to t-h NO "* Ci — ' CO CO r»3 ■* ro — ■ r^ ro <-i tT ro in ^h cr> © 
 
 rOONvO"*ODC>*OfOOOfON 
 
 rj-^-io^r^NofNiONPOcNj 
 
 --^c^rocoroOcot^i^^^ON^^^OO^t^gNc^rMOO^-CO^) 
 vocooO'tO\3-tocN)tN\ccJ\N-"tioO; r H^^in^^"3^ 
 
 cviinir3c^i^i^ONONinintovo^r2 T -1 c:: 'r3?>t; c ^ ro i>r2_^SCf)> 
 
 ootj-vocmnoi-ino-^ti-— -co on •* no to (N r^ o m <*3 in »-c co ^s 
 
 t^cMCMCNacN-^^iorNjcococ\it>coNoocogN^^ONO^NOr-Hr^ 
 NO^ofvi^woooocoi^^^^t^ONpcoco^^t^Nocoro^rNj 
 
 ^NOVOOO^^ONf^^ON^t^^^OOOOt^NO^OQi^^CMOO^-j- 
 (M NO r-i ^f CO CM CO NO in t^ ON O "3- On m NO O ■«*■ "— ' NO ^J £J On CO fvj 
 
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 HtnHOHHl^OOHHrtinT-lOHrtrtCTQiH'HtNlO t>- 
 
 CM C5 CM ro CM -h CM CM CM CM <"M CM^HCMCM^ONNOCOcMCJfOrn J* 
 
 SiococoooNO^^oogN^^i^gNrMNO^N^o^uo^r^fM^^ 
 ONONOO^Ch^CNaO^^NOi^r^ON^or^NcONNOr^rj.NO^^-^0 
 
 KjNOT-HiOOOCNJONr^iOCOON o^fONONO^^rCMvo^t-rMOOOON 
 
 r-t rl r-( ,-H <-l T-* CM T-l ^ 
 
 en en en en en en " Z !7 !> 55 i"Z 7 
 
 en_cen_j-;enHenj^e/)en'.n_cenr-enr^K>.. . ^ ^ tn ^ cti 
 
 S> bb >> bb >> be >> be >» >> >.bb >> be >> b/)°« °3 ^ °3 >, w<& >>=« -g 
 
 QZQ?;Q^P^QDa^.QZDZQQ7DQ^DQQr H 
 
 THrH (\|M(V5tO't'*'-'fN|(»3f^'* , * 1 Om'-ieOiN]'- i^fNlf-iiHrHlJ 
 
LECTURE XXVIII 
 
 DEPARTMENTAL AND PLANT EFFICIENCY RECORDS 
 
 The following describes how the above records are prepared and 
 the use that is made of them, and emphasizes the importance of con- 
 trolling all of the factors involved in the determination of depart- 
 mental and plant efficiency records. 
 
 The previous lecture described some of the detail on which 
 departmental and plant efficiency bonus records are based. 
 These records must be prepared from the actual perform- 
 ance daily of all the jobs on bonus and in accordance with 
 the formula shown on bonus chart 9030D. 
 
 The tabulated summary of departmental bonus efficiencies 
 is made up from the daily job tally, time cards and bonus 
 pay slip records. These records are all checked against the 
 clock time cards and the bonus production reported is 
 checked against the inspector's report, so that all deductions 
 due to defective material may be approved before passing the 
 bonus slip through for approval and payment. 
 
 The fact must not be lost sight of that the proper time- 
 keeping on individual jobs or operations, as well as the 
 tallying of the production of each job, are of vital import- 
 ance. In speaking of production, it is understood of course 
 to mean production of good pieces or good work which pass 
 all the inspection required in accordance with the drawings, 
 specifications, standards, etc., as they may be established 
 from time to time for the different classes of work. 
 
 As the installation of time study methods progresses, the 
 requirements for time keeping and job tallying increase, as 
 it is of paramount importance that the performance of each 
 department be checked by other controlling records to assure 
 the fact that bonus being paid to the men is justly earned. 
 As the data is the foundation of the departmental and plant 
 
 182 
 
FREDERIC A. PARKHURST 1 83 
 
 efficiency records, it is of course vitally important to have 
 it correct, because if incorrect, all records relating- to the 
 efficiencies mentioned will also be incorrect. 
 
 If careful control and auditing of the work of the ac- 
 counting, time-keeping and job tally clerks is maintained, 
 then the maximum economy will result. The maintenance 
 of all control is of course an organization requirement. As 
 these records deal with the disbursement of large sums of 
 money, it is just as important that they be audited and cor- 
 rectly handled, as it is to follow such practice with account- 
 ing or book-keeping methods, in the control of cash and 
 other accounts. Failure on the part of the Comptroller's 
 Department to maintain through audit the accurate perfor- 
 mance of the clerical work should not be blamed on the 
 method, but rather on the execution. This is of vital im- 
 portance and too much emphasis cannot be placed upon it. 
 
 The time-keeping and shop clerk departments are of such 
 vital importance that the personnel of same should be given 
 unusual attention. In other words, the men employed in 
 these two divisions are responsible for the disbursement of 
 many thousands of dollars monthly in a plant of consider- 
 able size and they should be chosen on qualifications just as 
 rigid as any required for a Cashier or a Paymaster. The 
 records required of these two departments and which are 
 checked against the standard time sheets by the planning 
 room time study staff, form the basis of pay for all direct 
 and indirect bonus operations and the final determination, 
 as above stated, of the departmental and plant efficiencies. 
 From these efficiencies the department heads and other shop 
 executives receive their extra remuneration. Obviously, the 
 secret lies in properly maintaining- the organization lineup 
 and by audit, insuring honest and satisfactory performance. 
 
 As a record of the control to be exercised in connection 
 with the work of the tally clerks, a reproduction from the 
 following bonus chart, 9002D, will suffice as a typical ex- 
 ample how the work of these men is scheduled. 
 
184 DEPARTMENTAL AND PLANT EFFICIENCY RECORDS 
 
 BONUS CHART 9002D, APRIL 12, 1917; DEPT. 2U, 
 BONUS CLASS 2 
 
 Efficiency Bonus Chart Specifying the Duties and 
 Operations of the Tally Clerk in 
 
 Department 2U 
 
 A bonus will be paid daily to each tally clerk in the 2U department 
 when he has correctly and completely performed the following opera- 
 tions : 
 
 1. The tally clerk is required to list on a tally sheet, FAP 115, a 
 correct count of each operation performed by the workmen in 
 2U department. He also is required to list on the tally sheet, 
 FAP 115, in the spaces provided, the number of the man who 
 works on the job, the work number of the job, the piece symbol, 
 and the operation symbols. 
 
 2. It will be the duty of the tally clerk to notify the time clerk, 
 also the route clerk, as to each job that is working without the 
 proper work ticket, FAP 231, at the machine in the holder 
 provided. 
 
 3. The tally clerk will keep the correct bonus chart in the holder 
 provided at the machine where the operator is working. It is 
 also required that the tally clerk keep the idle bonus charts 
 neatly filed and to see that new charts are substituted for those 
 that are torn or lost and that his file of charts is at all times 
 complete and in order. 
 
 4. The tally clerk will see that a lot tag is on each pan, box or 
 barrel of castings in the shop, showing the lot number of the 
 job, the piece symbol and number of pieces in the lot. 
 
 5. All disputes regarding shortages on counts are to be referred" 
 to the route clerk and shop foreman for settlement. 
 
 6. Accuracy in work and courteous manner towards all workmen 
 are the essential requirements for every tally clerk who expects 
 to make bonus on this chart. 
 
 The following penalties 'and percent are deducted for each offense: 
 
 1. For every minute late in the morning, 1% will be deducted 
 from the standard efficiency of 100% for the day. 
 
 2. For tally sheets not made out neatly and clearly, 5% will be 
 deducted. 
 
 3. Wrong tally on sheet, 5% will be deducted. 
 
 4. Wrong work number listed, 2% will be deducted. 
 
 5. Wrong piece symbol listed, 2% will be deducted. 
 
 6. Wrong operation symbol listed, 2% will be deducted. 
 
 7. Wrong man number listed, 2% will be deducted. 
 
 8. The absence of work orders at machine, 2% will be deducted 
 for each work order. 
 
 9. The absence of bonus chart at machines, 1% will be deducted. 
 
 10. The wrong bonus chart at machine, 2% will be deducted. 
 
 11. Careless filing of idle charts, 5% will be deducted. 
 
 12. Incomplete file of charts, 5% will be deducted. 
 
FREDERIC A. PARKHURST 1 85 
 
 13. For each missing lot ticket on every pan, box or barrel in the 
 shop, 1% will be deducted. 
 
 14. Discourtesy to superiors or shop workmen, 10% will be de- 
 ducted. 
 
 15. One hour, after the shop closes down, will be allowed to take 
 the final count. For every minute over the allowed hour that 
 is. registered on the clock card, 1% will be deducted. 
 
 16. Bonus will be paid on a basis of 80% efficiency, Bonus Class 2. 
 Every day the efficiency is below 80%, it will count one de- 
 merit. Five demerits in succession will be sufficient cause for 
 discharge. 
 
 17. The following prices will be paid in addition to hourly wages 
 based on the daily efficiency of each tally clerk. These prices 
 will not be lowered but the time study chieT reserves the right 
 to cancel this chart if it is not worked exactly to specifications 
 and instructions. 
 
 The time keeper will be responsible for making the deduction on 
 items 1, 11, 12 and 15. All deductions are to be reported daily to 
 route clerk in written form and he is to file this copy in order of days. 
 
 The superintendent and shop foremen are responsible for making 
 deductions on items 8, 9, 10, 13 and 14. The production clerk and 
 route clerk are responsible for making deductions on items 2, 3, 4, 5, 
 6 and 7. 
 
 The tally clerks are to be listed on a daily bonus report FAP 192 
 and hereafter the hours worked by tally clerks will not be deducted 
 from the total hours worked in department when figuring the weekly 
 departmental efficiency report. 
 
 EFFICIENCY BONUS CHART 9002-D 
 
 Differential per 1% efficiency = $.009 
 
 Tally Clerk's 
 
 
 Tally Clerk's 
 
 
 Efficiency % 
 
 _ Bonus Paid 
 
 Efficiency % 
 
 Bonus Paid 
 
 9 hrs. 
 
 9 hrs. 
 
 9 hrs. 
 
 9 hrs. 
 
 80 
 
 .32 
 
 91 
 
 .419 
 
 81 
 
 .329 
 
 92 
 
 .429 
 
 82 
 
 .338 
 
 93 
 
 .437 
 
 83 
 
 .347 
 
 94 
 
 .446 
 
 84 
 
 .356 
 
 95 
 
 .455 
 
 85 
 
 .365 
 
 96 
 
 .464 
 
 86 
 
 .374 
 
 97 
 
 .473 
 
 87 
 
 .383 
 
 98 
 
 .482 
 
 88 
 
 .392 
 
 99 
 
 .491 
 
 89 
 
 .401 
 
 100 
 
 .500 
 
 90 
 
 .410 
 
 
 
 As previously stated, bonus is checked and figured in the 
 time study department by bonus clerks who do nothing but 
 figure and check bonus pay slips and record the bonus pay 
 for each man. At the end of the week, the individual bonus 
 record is totaled, balanced and reported to the time keeping 
 department and a check made and filed with the individual 
 bonus records themselves. 
 
l86 DEPARTMENTAL AND PLANT EFFICIENCY RECORDS 
 
 The following bonus chart, 9054D, will best describe 
 how the work of the bonus clerks is brought under control 
 and how their work is checked. 
 
 BONUS CHART 9054-D, MAY 7, 1917; TIME STUDY 
 DEPARTMENT, BONUS CLASS 3 
 
 Efficiency Bonus to be Paid Bonus Clerks When 
 
 Figuring Bonus and Copying Bonus Slips In 
 
 Departments 1C-2C-3C-4C-1M-2M-3-M 
 
 4M-5M-1T-2T-3T-1I-1W and 2U 
 
 Standards : 
 
 Figure efficiency only .60 minutes 
 
 " bonus " .50 " 
 
 Copy bonus slips .75 " 
 
 Each shortage 3.00 " 
 
 The following differential bonus will be paid weekly in addi- 
 tion to salary based on each day's efficiency for figuring bonus and 
 copying slips when a standard ten-inch slide rule is used and de- 
 partmental bonus reports are figured on FAP 192. 
 
 The daily working efficiency of the operator is based on a 
 standard of five hundred units for 100% efficiency for a full day's 
 work. Saturday, half-day, two hundred fifty units. Bonus will 
 be paid in proportion to the time he works on the job. One unit 
 equals one standard minute of time. When the operator has com- 
 pleted enough work to give him four hundred units, he is figured 
 80% efficient. If it is possible in one day for the operator to 
 complete enough work to give six hundred units, he is to be paid 
 bonus at the rate of 120% efficient in Bonus Class 3. 
 
 Standard Times : 
 
 The standard for figuring the efficiency only on each bonus 
 operation is .60 minutes. The necessary operations for the bonus 
 clerk are to first figure the standard minutes on the operation by 
 multiplying the standard time by the number of good pieces made 
 by the workman. Then divide the standard time by the actual 
 minutes worked and the result is the operator's working efficiency. 
 The working efficiency is to be inserted with pencil on FAP 192 
 in space provided. 
 
 The standard for figuring the bonus on each job that makes 
 bonus is .50 minutes. On this operation the bonus clerk is to use 
 a standard efficiency bonus chart, a copy of which is enclosed in 
 this chart. This gives the amount of bonus paid in each class for 
 all efficiencies from 70% to 100% for 9 hours. Then figuring the 
 bonus for less than 9 hours the amount of bonus paid for 9 hours' 
 work is divided by 540 and the result multiplied by the actual time 
 the workmen operated the job. 
 
 The standard for copying the bonus slips is .75 minutes. This 
 includes filling in the slips complete. It is to be noted that all 
 figures must be made neatly and carefully so there will not be a 
 misunderstanding of the figures when the slips are passed on for 
 payment. 
 
 The standard for each shortage that is checked and accuracy 
 guaranteed by the bonus clerk, is 3 minutes. However, in all cases 
 
FREDERIC A. PARKHURST 1 87 
 
 where the shortage was the result of carelessness or any fault of 
 the bonus clerk, he will be deducted 3 units from the day's total. 
 
 Method of Tally : 
 
 When the department reports, FAP 192, are received and dis- 
 tributed, each bonus clerk is to stamp his sheet in the upper left- 
 hand corner of the top sheet with a stamp provided. 
 
 This is to be properly filled out as the work progresses and 
 when the complete report is figured the record is posted on the 
 following form. This record complete is to be signed by the 
 operator and given the time study chief at the completion of the 
 day's work and it is from this record that bonus will be figured. 
 
 Kxample : Suppose the clerk figures 250 efficiencies 
 
 190 bonus 
 copies 190 slips 
 Figures and checks 4 shortages 
 
 Then 250 X .60 = 150 Standard units 
 200 X -50 =100 
 200 X .75 = 150 
 4 X3.00 = 12 
 
 
 
 Total 412 
 
 
 412 
 
 = 82.% Efficiency pays $.51 Bonus 
 
 
 500 
 
 
 EFFICIENCY BONUS CHART 9054-D 
 
 
 Differential per 1% efficiency = $.0135 
 
 % Efficiency 
 
 
 Bonus Paid % Efficiency Bonus Paid 
 
 9 hrs. 
 
 
 9 hrs. 9 hrs. 9 hrs. 
 
 80 
 
 
 .480 91 .629 
 
 81 
 
 
 .494 92 .642 
 
 82 
 
 
 .507 93 .656 
 
 83 
 
 
 .521 94 .669 
 
 84 
 
 
 .534 95 .683 
 
 85 
 
 
 .548 96 .696 
 
 86 
 
 
 .561 97 .710 
 
 87 
 
 
 .575 98 .723 
 
 88 
 
 
 .588 99 .737 
 
 89 
 
 
 .602 100 .750 
 
 90 
 
 
 .615 
 
 Time will not permit of going into further detail as to 
 how various reports are made up from analysis of the per- 
 formance of all of the departments except to repeat again 
 for emphasis, that the auditing of the pay in the form of 
 wages, salary and bonus must be in the control of com- 
 petent men. In other words, the recapitulation of all figures 
 is dependent on the accuracy obtained at the source. The 
 management must realize that there are just as important 
 economies to be effected and maintained in the indirect di- 
 visions of the business as there are in the direct. Sprit 
 d' Corps is of vital importance. 
 
LECTURE XXIX 
 
 INSPECTION 
 
 17. Details of Inspection. 
 
 This lecture will discuss modern methods of inspection and has been 
 reprinted complete from the author's "Scientific Management in the 
 Foundry," section 17. 
 
 The next most important branch of the organization is 
 Inspection. Though we may have completely developed 
 and under control our office and sales departments, a prop- 
 erly operating Planning Room, routing and controlling 
 orders, material and labor, and a well maintained plant, 
 these all become useless without the continual supervision 
 of the inspection department. 
 
 Inspection must control, to the smallest detail, all of the 
 various operations from the first inspection of the design 
 to the completion and shipment of the last piece on a cus- 
 tomer's order. This is particularly true when we begin to 
 realize intense production and where, in addition to an 
 hourly rate, we pay a large bonus for extra production. 
 Under these conditions the most rigid inspection is neces- 
 sary. 
 
 The subject of inspection will be discussed in order of 
 the following divisions : 
 
 A— Designing (281). 
 
 B — Detailed drawings (285). 
 
 C — -Complete pattern equipment (291). 
 
 D — Sample cores, mold and casting (294). 
 
 E — Laboratory control of mixtures and pouring temperature (299). 
 
 F— Balance of labor (302). 
 
 G— Details of method (303). 
 
 H — Production standards based on time study (305). 
 
 I — Routine production inspection, including — (306). 
 
 a — Pattern equipment. 
 
 b — Cores. 
 
 c — Molds. 
 
 d— Pouring temperatures. 
 
 e — First inspection of casting — hot. 
 
 f — Knockout inspection. 
 
 188 
 
FREDERIC A. PARKHURST 1 89 
 
 g — Trimming inspection. 
 
 h — General inspection. 
 
 i — Final inspection. 
 
 j — Service inspection (312). 
 
 k — Inspection Committee. 
 
 Consideration of the design in connection with a cus- 
 tomer's engineering department represents the first touch 
 of inspection pertaining to that customer's order. It is 
 often times possible, by consultation with the customer's 
 engineer, to co-operate toward a simplification of design or 
 change of sections, or a combination of both. Two heads 
 are better than one. 
 
 The promotion of the above method can but result in 
 eliminating many causes for loss and delay, when the de- 
 sign in the form of a pattern finally reaches the foundry. 
 
 There is a double advantage following this method of 
 preliminary inspection in connection with a foundry that 
 has highly developed operating methods. Such methods 
 give the designing' engineer access to a great deal of data 
 covering past experiences that cannot help but be of great 
 advantage to him in connection with future work. 
 
 Of course the foundry's engineer is the medium through 
 which the customer's engineer and designers get their bene- 
 fit of the best foundry practice. 
 
 A more critical inspection now takes place when the de- 
 tailed drawing for an individual piece is ready for the pat- 
 tern shop. At this stage we have to consider a great many 
 different things that we but superficially touch upon when 
 the general designing inspection (see 281 above) was 
 made. 
 
 Before proceeding with the pattern, equipment there are 
 a great many things to consider. These different items in- 
 clude, quanity to be made from a pattern, foundry method 
 to be employed, cost of the pattern equipment for various 
 molds where a choice is possible, method of rigging up, gat- 
 ing, flask equipment, etc. 
 
 If the pattern under consideration is a cored job we have 
 to consider the style and arrangement of core boxes. This 
 brings us down to a minute consideration of the design 
 
I9O INSPECTION 
 
 and proportions of the pattern. This inspection often leads 
 to a modification in design or proportion overlooked at the 
 time of the first inspection. 
 
 When considering the matter of equipment the members 
 of the factory board are often represented in a discussion 
 as to these details. It is also important that the Superin- 
 tendent, Time Study Foreman and Foundry Foreman 
 should work together toward a settlement of these prelim- 
 inaries. 
 
 Too much stress cannot be laid on the fact that pattern 
 equipment (excepting perhaps in relation to large produc- 
 tion jobs) does not as a rule have the careful attention that 
 it should. The average foundry does not know what is 
 the best combination of flask dimensions (based on scientific 
 knowledge) to get the greatest tonnage from a given pat- 
 tern. This statement applies to jobs which may be run 
 from either a solid or split pattern, or a gated pattern, or a 
 plated pattern. In other words, there is an ideal combina- 
 tion for every job. These jobs cannot be intelligently and 
 economically planned, and pattern equipment cannot be 
 properly made without the accurate standard data and pro- 
 duction knowledge which can only be determined by scien- 
 tific methods. 
 
 On bench and squeezer work we have also to consider 
 those jobs which require matches. The design of the match 
 and method of its construction have a very material effect 
 on the job when it reaches the foundry. 
 
 A consideration of the items mentioned above in para- 
 graph 285 gives us the full knowledge to prepare our com- 
 plete pattern equipment. This pattern equipment, as the 
 term is used, means not only patterns and core boxes but 
 core dryers, matches, etc. Where the flask equipment is 
 special and the patterns cannot be adapted to standard flasks 
 and boards, then this equipment should also be considered 
 as part of the pattern equipment — likewise machine equip- 
 ment. 
 
 The machine equipment, the standard and often used 
 for many jobs, represents part of a given pattern equip- 
 
FREDERIC A. PARKHURST I9I 
 
 ment, provided such equipment is designed to run on that 
 machine. 
 
 At all stages of the work through the foundry continual 
 inspection must be maintained of core boxes, dryers, pat- 
 tern equipment, flasks and machines. If this inspection be- 
 comes lax we may continue to make cores which the molder 
 has to file a bit or we may be tied up for production due to 
 lack of a certain number of core dryers. In other words, 
 there is much more to the subject of inspection of pattern 
 equipment than merely the inspection of a new pattern. 
 This inspection must be continuous — patterns must come 
 out of the sand at night, be inspected and perhaps "touched 
 up" before production starts in the morning. The flasks 
 must be watched to see that there is no shift in the pins — ■ 
 core boxes must be examined periodically to see that loose 
 pieces do not "ram off" or become misplaced due to wear 
 or distortion. 
 
 Regular shop inspection on work produced first takes 
 place at the time sample castings are made. Here we have 
 to consider the inspection of cores, mold and casting. The 
 cores should be inspected in the core room and when neces- 
 sary gages should be provided to assist in inspection as to 
 size and shape. When making sample castings it is well 
 to order two or three sets of cores. This method will ex- 
 pedite making of samples in the event the first one or two 
 castings are lost. 
 
 The inspection of the mold is the next step. This inspec- 
 tion should take place before the mold is cored up. At this 
 point we have to consider the action of the pattern to see 
 that it draws properly. If the pattern does not have proper 
 draft or if there something wrong- with the rigging we 
 have a torn-up mold. This should be corrected at once 
 and another mold tried out until we get the pattern working 
 in satisfactory shape. When we have a perfect mold we 
 are then ready to provide a necessary gating, after which 
 the mold is ready to core up. 
 
 In setting cores in the first mold every core should be 
 carefully inspected as to size and fit. The "setting" must 
 
I9 2 INSPECTION 
 
 be inspected to see that the core prints and cores match 
 properly — that the core settles into position and that we 
 have a proper thickness of metal as per the blue print. A 
 detail blue print of the piece in question should be on the 
 floor at the time the sample casting is made. This is par- 
 ticularly important where the job is a large floor job or a 
 complicated piece. 
 
 Based on past experience by consulting records of pour- 
 ing temperatures of similar castings the correct pouring 
 temperature for the first casting will be determined. After 
 the mold is poured and dumped out an inspection of the 
 casting will indicate as to whether the mold was poured 
 at the correct temperature or not. Of course, this may not 
 become definitely known until after the cores are knocked 
 out and the casting chipped. In any event the first one or 
 two castings poured will allow us to determine the correct 
 pouring temperature. When this has once been determined 
 all of the subsequent castings will be poured at that tem- 
 perature, within an allowable variation of a few degrees. 
 (See Fig. 17.) 
 
 The sample as soon as poured should be "knocked out" 
 passed through the trimming and inspection departments 
 (see Figs. 18 and 19) and checked by the Chief Inspector 
 to see that it agrees with the drawing. After this has been 
 done it is ready for delivery to the customer provided it is 
 passed in quality, workmanship and size by the Chief In- 
 spector. All sample castings are marked with a tag and di- 
 rected to the attention of the party at the customer's plant 
 who is to give it the first inspection and O. K. A written 
 approval of the sample casting is required before the foun- 
 dry proceeds with production. 
 
 Prior to the pouring of the casting as described in. 294, 
 laboratory control exerts its influence. In other words, 
 the mixture is determined and the laboratory control of 
 melting and pouring assures the best practical results in 
 the pouring of the casting itself. 
 
 All molds are poured by a specially trained gang. The 
 pouring gang as well as the furnace men and melters are 
 
FREDERIC A. PARKHURST 1 93 
 
 under the general supervision of the Chief Chemist in so 
 far as the technical part of their work is concerned. By 
 this method we eliminate labor and delays caused by the 
 molder pouring his molds himself. We are also able to 
 restrict the responsibility for a proper melting temperature 
 and pouring to technically trained men rather than to the 
 average run of untrained mechanics. (See Fig. 17.) 
 
 Laboratory control as above described in itself repre- 
 sents another very important form of inspection. In other 
 words, through laboratory control we have a study of alloys 
 and inspection of mixture and pouring temperatures. 
 
 The balance of labor is pre-determined by our Time 
 Study Foreman and our standard production data. When 
 production is realized, based on given equipment, and a 
 check on the quality of the work turned out, it gives us a 
 continual check on our labor. The "man days" worked on 
 a given production at a prevailing average rate per man 
 day for different classes of labor, checked against our cost 
 control chart gives us the equivalent of an inspection con- 
 trol on all labor expended. 
 
 In addition to the general labor control, as explained 
 above in 302, we have the detail inspection of method. This 
 inspection of method consists of the detailed time study 
 into the motions and times of operations. All standard- 
 ized operations are made up of sub-operations or elemental 
 sub-operations. The elemental sub-operations have been 
 standardized and standard times determined for them. 
 These determinations provide for certain combinations to 
 meet any of our standard methods. 
 
 The inspection of equipment and the determination, of the 
 method combined with our standard production data gives 
 us a perpetual control and inspection of these methods while 
 each job is in process. 
 
 After determining the balance of labor in the detailed 
 method described above in 302 and 303, the time study 
 foreman issues the necessary instructions and Bonus Charts 
 to cover the details of the job in process. As mentioned 
 in 303 our standard data give us the basis for all of this 
 
194 INSPECTION 
 
 information, though certain individual time studies may 
 be necessary to take care of any specal features peculiar to 
 that job. This time study work includes the time study 
 necessary to put on bonus core making (each individual 
 box is figured separately) molding, knocking out, trimming 
 and inspection and any other operations involved in the 
 process. 
 
 In paragraphs 281 to 305, inclusive, we have discussed 
 the various divisions of work necessary to get a foundry 
 job in condition to run. After the submission of the sam- 
 ple and a written O. K. from the customer we are then pre- 
 pared to run the job on a production basis. The routine 
 inspection of the job while it is in process for production 
 is very similar to that outlined above. In other words, to 
 sum up the above we have during production the following 
 stages of production, viz. — 
 
 Inspection of — a — Pattern equipment, 
 b — Cores, 
 c — Molds. 
 
 d — Pouring temperature and laboratory control, 
 e — First inspection — hot casting, 
 f — Knockout inspection, 
 g — Trimming room inspection, 
 h — General inspection. 
 i — Final inspection. 
 
 Applying to certain of the above stages of inspection we 
 must, of course, have drawings, gages or other standards 
 to which inspection shall be made. The use of gages is de- 
 sirable in both core and molding rooms. They are also 
 equally desirable in many cases in the trimming and final 
 inspection rooms, although the entire field under discussion 
 is considering only rough castings, not machining opera- 
 tions. 
 
 As stated at the commencement of this section on in- 
 spection it is absolutely necessary that the various stages 
 of the work in process shall have careful inspection along 
 the lines indicated above. There can be no economy in a 
 delayed core inspection with the resultant loss of a lot of 
 cores; nor a delay in the first "knockout"' inspection when 
 the casting is hot. The foundry is liable to run ahead with 
 
FREDERIC A. PARKHURST 195 
 
 a large production before the defect becomes known. Often 
 defects will be discovered after the casting has reached the 
 trimming table. Oftentimes there will be a strain in the 
 casting which, though not sufficient to break it at once, will 
 cause it to fracture under the ordinary vibration it gets in 
 knocking out cores and during the process of trimming. 
 Here we have a defect, the discovery of which was de- 
 layed. 
 
 Prompt action is necessary to report all defects back to 
 the molding room or the laboratory, as the case may be. 
 Sometimes a slight difference in the run of metal will cause 
 a crack and it is up to the laboratory to immediately run 
 down this trouble. 
 
 We must realize the necessity for continuous control of 
 operations, particularly where the men are working at high 
 speed and are making large bonuses. When men have been 
 trained to do their work with a minimum of motion and 
 exertion, keeping their minds and hands continually on 
 the job, with proper inspection control the required produc- 
 tion can be realized with an A-i quality. This statement 
 is not based on any theoretical proposition but on absolute 
 facts and experience of years. The writer has one large 
 foundry in mind where his methods tripled the production 
 and reduced the defective loss 60 per cent. 
 
 We now come to the last word of inspection service, viz. 
 — the Service Inspector. The success of service inspection 
 depends primarily on two things — one the inspector him- 
 self, the other the plant behind him. The Service In- 
 spector while primarily a shop man by training and experi- 
 ence, should be a member of Sales Department when the 
 ultimate scheme of organization is complete. 
 
 It shall be the Service Inspector's duty to keep in touch 
 with all of the customers, particularly the larger ones, so as 
 to learn as early as possible all of their complaints. He 
 must of course keep in touch with the foundry during his 
 daily trips. This is particularly true where continuous 
 pouring is the practice and the foundry is run solely as a 
 jobbing business. 
 
I96 INSPECTION COMMITTEE 
 
 If the Service Inspector is a practical man he can go into 
 the customer's plant and co-operate with the customer's in- 
 spectors and mechanics. His service will prove to be one 
 that is mutually beneficial. It is only too true that com- 
 plaints based on some small minor trouble or defect often 
 reach "those higher up," which if given prompt attention 
 in the first place by the foundry would never have developed 
 into a complaint at all. 
 
 The more thorough knowledge a foundry has through 
 its service inspector of the requirements of the customer, 
 the accuracy he requires, the better the service. Service 
 Inspection is necessary too so that the foundry can tell just 
 what part of the work must have particular attention and 
 be held to close limits and what part will stand a greater 
 allowance of variation. 
 
 The writer believes that the average reader will agree 
 with him when he states there is too little harmony between 
 the average foundry and the average machine shop. Each 
 thinks the other is wrong. It is undoubtedly true however 
 that the foundry and machine shop heads are oftentimes 
 not sufficiently familiar with each other's trades to allow 
 them to work together to the best advantage. Where this 
 condition obtains the service inspector, though perhaps in 
 an unenviable position, has the opportunity to make himself 
 doubly valuable. The advantage of such a service is obvi- 
 ous if the right man is chosen for this most important posi- 
 tion. 
 
 The purpose of the inspection committee can best be de- 
 scribed by referring to the copy of complete instruction 
 below : 
 
 Inspection Committee, Instruction LXXX 
 
 To get the best results from our Shop and Service In- 
 spection Department, it is desirable that the general scheme 
 of inspection be handled along the following lines. This 
 instruction is written to govern the general handling of in- 
 spection methods entirely separate from the instructions 
 applying to regular inspection. 
 
FREDERIC A. PARKHURST 1 97 
 
 Superintendent, Chief Inspector and Service Inspector 
 will be governed by the following" : 
 
 a — Standards will be established from time to time on various 
 work; these will include either drawings, references, written data or 
 gages, as the case may be. These standards are to be determined and 
 mutually agreed upon between ourselves and our customers. Cus- 
 tomer's requirements, of course, must be consistent with best foundry 
 practice and the commercial production of their product. 
 
 b — Our product is to be produced in accordance with the above 
 mentioned standards applying to each specific piece. These standards 
 are to be adhered to, it being understood that we have already, as 
 specified in Paragraph 386 accepted them and agreed to work in ac- 
 cordance with the same. 
 
 c — In case of an unusual condition or a question as to the in- 
 terpretation as to what standard has been established, or in case of 
 a question as to whether a piece actually meets with the standard or 
 not, such case shall be referred to the Inspection Committee. This 
 Inspection Committee is to consist of the Service Inspector, who, on 
 account of his duties, will be thoroughly familiar with the customer's 
 requirements; the Superintendent, who is the man responsible for the 
 product ; and the Chief Inspector, who is the man being directly re- 
 sponsible for the shop inspection. 
 
 d — The Chief Inspector's work is to be final on all matters of 
 inspection, except in cases above referred to. No such case shall be 
 settled definitely by either the Superintendent or the Service Inspector, 
 but must always be settled in accordance with the majority vote with 
 the three being present. In other words, our Chief Inspector is to be 
 upheld in his decisions and ordinary routine inspection is not to be 
 passed up to the Inspection Committee for settlement. 
 
 The method described above is to further the mutual 
 interests of our -customers and ourselves. The three men 
 representing" the Inspection. Committee are the ones chiefly 
 involved in the matter of quality. Their close co-operation 
 will eventually result in keeping our standard of quality at 
 the highest possible mark. 
 
 The General Superintendent may be called in, in an ex- 
 officio capacity, on matters which the majority of the In- 
 spection Committee desire to have him personally investi- 
 gate. 
 
LECTURE XXX 
 
 RESULTS OBTAINED THROUGH THE CORRECT APPLICATION 
 OF THE SCIENCE OF MANAGEMENT 
 
 3'0-A. Effect on Production and Quality. 
 
 30-B. Effect on Costs. 
 
 30-C. Individual and Corporate Effect. 
 
 This lecture, covering the above subjects, has been printed from 
 the manuscript of the author's "Scientific Time Study and Differential 
 Bonus" now in course of preparation. 
 
 30-A. Effect on Production and Quality 
 
 Before the Science of Management became more gen- 
 erally understood and before there were very many widely 
 separated examples of its performance, it was argued that 
 the intense production claimed would result in a greatly 
 inferior quality of product. Likewise the reports of greatly 
 increased production were heralded as applying only to a 
 few specific and unusual cases. Such reports were often 
 discredited as being impossible of accomplishment. 
 
 Today, however, the wide field that has been touched in 
 the application of the methods of Scientific Management has 
 enabled its exponents to cite so many cases of greatly in- 
 creased production and improved quality, that a much more 
 general and favorable interest in the new management has 
 resulted. It is not unusual to find production increases 
 running as high as iooo or 1200 per cent over the produc- 
 tion formerly realized before scientific analysis, time study 
 and the application of extra remuneration had been adopted. 
 
 The extreme increases referred to have been realized in 
 connection with specific operations. Some of these opera- 
 tions have been operations performed purely by manual la- 
 bor. Others have been machine operations. Of times these 
 results have been made possible not so much through in- 
 creased effort on the part of the workman, as through the 
 cumulative effect of many things. The different factors 
 
 198 
 
FREDERIC A. PARKHURST 1 99 
 
 bearing- on these increased productions can be traced back- 
 to the proper analysis and routing of an order, the prompt 
 supplying- of requisite material, the careful predetermina- 
 tion of the method, tools and equipment to be used in con- 
 nection with turning out the work, and careful inspection 
 and supervision during the processing of the work. On the 
 other hand, many large increases have been shown where 
 the elimination of false moves due to definite instructions, 
 and an incentive to work to them have awakened the work- 
 man to a full realization of what it is possible for him to 
 accomplish when he centers his mind on the fulfillment of 
 a task. 
 
 The foregoing lectures have emphasized the importance 
 of control and inspection, including the operation inspection 
 at various stag-es during the processing of work. Inspection 
 is just as important an item of control as are the analyses 
 of the various elements entering into all of the steps neces- 
 sary in performing any given piece of work. 
 
 The true results must be measured by average perform- 
 ance of departments or plants. From results within the 
 author's own experience can be cited cases in which the pro- 
 duction increase on bonus operations was 80% where piece 
 work set by the guess-work method was supplanted by his 
 additional bonus based on time study. Another plant has 
 shown a production increase of 130%; another, 206%; and 
 still another, 240%. 
 
 The formula for the department and plant efficiencies, 
 which formula has been described in one of the foresroine 
 lectures, is based on certain plant conditions giving day work 
 a value of only 50% efficiency. This is a fair representative 
 figure for certain conditions. On the other hand, the value 
 of the constant may vary depending on the conditions of 
 the plant in which the formula is being applied. 
 
 After standardized conditions have been established and 
 an accurate record of the performance of many hundreds of 
 jobs is obtainable, the wide discrepancy in the production 
 increases, ranging from zero on some operations to hun- 
 
20.0 EFFECT ON COSTS 
 
 dreds of per cent on other operations, simply emphasizes the 
 lack of uniformity and control under ordinary management 
 methods. 
 
 The effect of this increased production, if obtained 
 through proper application of the Science of Management 
 methods, will tend to reduce the loss from defective work. 
 The common great loss due to defective material will be 
 minimized, if not eliminated, by the inspection requirements 
 in regard to material before processing. The writer can cite 
 cases of defective losses reduced 60%, and in one instance, 
 the defective or rejected material returned from customers 
 was reduced at least that amount in just one of its several 
 plants. The reduction of rejections of this kind has an ap- 
 preciable bearing on the service a firm is able to give its cus- 
 tomers. The increased satisfaction on the part of customers 
 due to more reliable product is in itself an incalculable item. 
 Reliability of service is often the greatest asset a firm can 
 have. It often expresses the difference between a growing 
 business and one that is on the decline from lack of control, 
 uniformity and reliability of product. 
 
 30-B. Effect on Costs 
 
 The direct labor cost reduction in. the cases mentioned 
 above ranged all the way from 30% to 60% and in the case 
 of the shop, formerly under piece work, the labor cost re- 
 duction was about 35%. 
 
 These reductions in cost do not take into consideration 
 the added saving due to a reduction in overhead distributed 
 to work, which in many cases is an important item. Of 
 course the indirect labor costs to a company operating under 
 the Science of Management are greater than one operating 
 under the old form of management. On the other hand, 
 the greatly increased production and the greatly decreased 
 cost gives a net result in cost saying, sometimes running as 
 high as 30 or 40 per cent. 
 
 Speaking of reduced cost of operation, the fact must not 
 be lost sight of that there is another saving that accrues to 
 the added profit of a given plant or department from its 
 
FREDERIC A. i'ARKIIURST 201 
 
 ability to turn out a greatly increased quantity of product. 
 Coupling the increased volume with the greatly reduced 
 total cost per unit, one has in the aggregate, a net return far 
 in excess of anything realized before, in the majority of 
 cases. 
 
 30-C. Individual and Corporate Effect 
 
 One of the best illustrations of the result of Scientific 
 Management from the company's viewpoint is that given 
 in the appendix of the text under the title "Six Years After" 
 on page 321. A discussion of the performance of the Fer- 
 racute Machine Company for six years' operation under the 
 author's methods and after he left them, will conclude this 
 course of lectures. 
 
 Since the chapter "Six Years After" was printed (now 
 over a year ago) the Company has been able to further in- 
 crease its special bonus to its workmen so that now they 
 are receiving not only an increased wage per hour, but also 
 a quarterly service bonus amounting to 25% of the wages 
 paid each man for each quarter. A copy of the service 
 bonus chart is printed below. 
 
 Service Bonus Chart, FAP 61 -A 
 
 The satisfied staff of workmen and the continued satis- 
 factory results obtained by this Company has proved the 
 reliability of this form of management when properly in- 
 stalled. Similar work in other plants in other lines of busi- 
 ness has proved the answer in an equally satisfactory man- 
 ner. The student of the Science of Management is urged 
 to make personal investigations himself and see the methods 
 in operation. 
 
 SERVICE BONUS CHART FAP 61-A 
 
 Copyright 1917 by Frederic A. Parkhurst, Organizing Engineer. 
 
 Employees who are regular in their attendance are of 
 more worth to the Company than those who are absent any 
 appreciable amount of time. This BONUS CHART is 
 therefore issued to sfive extra remuneration in the form of 
 
202 SERVICE BONUS 
 
 SERVICE BONUS to those employees who do not absent 
 themselves from work on an average of more than three 
 clays for any three consecutive months, without permission 
 in writing by the Company, and subject to the following 
 conditions : 
 
 (a) This bonus chart applies only to those employees who have 
 executed an Employment Agreement, FAP 60A. 
 
 (b) SERVICE BONUS will be paid only for "continuous service' 
 for periods of three months each. The term ''continuous service" 
 shall apply for each employee from the time he executes an Employ- 
 ment Agreement, FAP 60A, and so long as such continuity of service 
 has not been interrupted by absence from work of more than three 
 days for any three consecutive months thereafter. If an employee 
 absents himself from work for a total of more than three days for 
 any such three month period, his record for "continuous service" will 
 have been broken and he must make a new start on the date of hi-s 
 return to work. 
 
 (c) The continuity of service mentioned above in (b) will not be 
 considered as broken if an employee is absent from work more than 
 three days in any one three-month period with written permission or 
 due to sickness or accident, provided such absence is supported by a 
 certificate duly signed by a reputable doctor or surgeon, if required 
 by company. The following SERVICE BONUS is based on normal 
 hours of work of fifty-five hours per week. If business conditions 
 require putting the employee on less than the fifty-five hour per week 
 schedule, a pro rata service bonus will be paid under the conditions 
 stated in this bonus chart. 
 
 (d) If an employee's hourly wage . rate is changed during any 
 quarterly period, his bonus for that quarter will be computed for the 
 wage rate he was getting at the commencement of that quarter, and his 
 service bonus for the succeeding quarter will be based on his new 
 wage rate. 
 
 (e) Employees who execute one of our Employment Agreements, 
 FAP 60A on or before December 31, 1917, will participate in Service 
 Bonus as per the Schedule given below in Column 2, commencing as 
 of the date given below. 
 
 (f) Employees entering our employ on or after January 1, 1918, 
 or who elect to execute an Employment Agreement, FAP 60A, on or 
 after January 1, 1918, will participate in Service Bonus shown below 
 in Column 1 until they have completed one year of continuous em- 
 ployment, after which they will automatically change to the participa- 
 tion of Service Bonus in Column 2. 
 
 (g) If an employee leaves our employ before the end of any three 
 month period, he will not receive SERVICE BONUS for that period. 
 
 (h) All earned SERVICE BONUS payments will be made con- 
 currently with the wage payment to the employee on the payday next 
 following the completion by the employee of a "continuous service" 
 period. 
 
FREDERIC A. PARK HURST 
 
 20' 
 
 TABLE TO EXPLAIN COMPUTATION 
 
 Hourly 
 Rate 
 
 $ .10 
 .11 
 .12 
 .13 
 .14 
 .15 
 .16 
 
 .17 
 .18 
 .19 
 .20 
 .21 
 .22 
 .23 
 .24 
 .25 
 .26 
 .27 
 .28 
 .29 
 .30 
 .31 
 .32 
 .33 
 .34 
 .35 
 .36 
 .37 
 .38 
 .39 
 .40 
 .41 
 .42 
 .43 
 .44 
 .45 
 .46 
 .47 
 .48 
 .49 
 .50 
 .52 
 .54 
 .56 
 .58 
 .60 
 
 Column 1 
 
 For First Year of 
 
 Continuous Service 
 
 Total First 
 Each Quarter Year Bonus 
 
 OF SERVICE BONUS 
 
 Column 2 
 After First Year of 
 Continuous Service 
 
 Total Second 
 ach Quarter Year Bonus 
 
 13.75 
 15.12 
 16.50 
 17.87 
 19.25 
 20.62 
 22.00 
 23.37 
 24.75 
 26.12 
 27.50 
 28.87 
 30.25 
 31.62 
 33.00 
 34.37 
 35.75 
 37.12 
 38.50 
 39.87 
 41.25 
 42.62 
 44.00 
 45.37 
 46.75 
 48.12 
 49.50 
 50.87 
 52.25 
 53.62 
 55.00 
 56.37 
 57.75 
 59.12 
 60.50 
 61.87 
 63.25 
 64.62 
 66.00 
 67.37 
 68.75 
 71.50 
 74.25 
 77.00 
 79.75 
 82.50 
 
 $ 55.00 
 60.50 
 66.00 
 71.50 
 77.00 
 82.50 
 88.00 
 93.50 
 99.00 
 104.50 
 110.00 
 115.50 
 121.00 
 126.50 
 132.00 
 137.50 
 143.00 
 148.50 
 154.00 
 159.50 
 165.00 
 170.50 
 176.00 
 181.50 
 187.00 
 192.50 
 198.00 
 203.50 
 209.00 
 214.50 
 220.00 
 225.50 
 231.00 
 236.50 
 242.00 
 247.50 
 253.00 
 258.50 
 264.00 
 269.50 
 275.00 
 286.00 
 297.00 
 308.00 
 319.00 
 330.00 
 
 ; 17.18 
 
 $ 68.75 
 
 18.90 
 
 75.62 
 
 20.62 
 
 82.50 
 
 22.34 
 
 89.37 
 
 24.06 
 
 96.25 
 
 25.78 
 
 103.12 
 
 27.50 
 
 1 10.00 
 
 29.21 
 
 116.87 
 
 30.93 
 
 123.75 
 
 32.65 
 
 130.62 
 
 34.37 
 
 137.50 
 
 36.09 
 
 144.37 
 
 37.81 
 
 151.25 
 
 39.53 
 
 158.12 
 
 41.25 
 
 165.00 
 
 42.96 
 
 171.87 
 
 44.68 
 
 178.75 
 
 46.40 
 
 185.62 
 
 48.12 
 
 192.50 
 
 49.84 
 
 199.37 
 
 51.56 
 
 206.25 
 
 53.28 
 
 213.12 
 
 55.00 
 
 220.00 
 
 56.71 
 
 226.87 
 
 58.43 
 
 233.75 
 
 60.15 
 
 240.62 
 
 61.87 
 
 247.50 
 
 63.59 
 
 254.37 
 
 65.31 
 
 261.25 
 
 67.03 
 
 268.12 
 
 68.75 
 
 275.00 
 
 70.46 
 
 281.87 
 
 72.18 
 
 288.75 
 
 73.90 
 
 295.62 
 
 75.62 
 
 302.50 
 
 77.34 
 
 309.37 
 
 79.06 
 
 316.25 
 
 80.78 
 
 323.12 
 
 82.50 
 
 330.00 
 
 84.21 
 
 336.87 
 
 85.93 
 
 343.75 
 
 89.37 
 
 357.50 
 
 92.81 
 
 371.25 
 
 96.25 
 
 385.00 
 
 99.68 
 
 398.75 
 
 103.12 
 
 412.50 
 
 Clock No 
 
 
 participates in Service Bonus as per this Chart, starting with Schedule 
 
 Column commencing 191 . . . 
 
 FERR ACUTE MACHINE CO. 
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 ^Hi 
 
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 ■ 
 
 ■I 
 
 ^i 
 
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