STORING ITS ECONOMIC ASPECTS AND PROPER METHODS BY THE SAME AUTHOR A COMPANION VOLUME PURCHASING ITS ECONOMIC ASPECTS AND PROPER METHODS 252 Pages 6X9 Postpaid $3.00 112 Charts, Diagrams and Forms STORING ITS ECONOMIC ASPECTS AND PROPER METHODS BY H. B. TWYFORD OTIS ELEVATOR COMPANY AUTHOR OF " PURCHASING: ITS ECONOMIC ASPECTS AND PROPER METHODS" WITH ILLUSTRATIONS AND FORMS NEW YORK D. VAN NOSTRAND COMPANY 25 Park Place 1918 lo D <%>\% COPYRIGHT, I918 BY D. VAN NOSTRAND COMPANY 11-1151 THE-PLIMPTON-PEESS NORWOOD • KASS'H'S'A JAN -2 •c;.;, 511 205 Aa< PKEFACE SOME of the most momentous problems before business men to-day calling for solution are those connected with storing raw materials and manu- factured articles of every kind. Situations have arisen in the recent strenuous times which have made questions regarding storage the most prominent issue in many commercial transactions. Many fortunes have been made and likewise many lost in storing goods. Any business man who can solve storage problems correctly is assured of success. Into every form of commercial activity which in- volves the retention for long or short periods of mate- rials and supplies is penetrating the new importance of storing. It is not a new problem, but it has at- tained a new importance and unobtrusively, perhaps, but none the less surely, it is rapidly and forcefully compelling attention. To some extent this is due to more intensive methods of figuring costs in so far as they affect storage problems. These costs have a vital, and oftentimes a determining, influence on the other aspects of storing which are associated with supply and demand. To store or not to store has got to be settled on a more scientific basis, and this will be the remedy for some of the irregularities in supply and demand. Irregularity in the supply of material is not always owing to actual shortage or surplus, but to hesitancy vi PREFACE to store by some concerns and a tendency to exces- sive storage by others. These conditions are caused by inability to solve properly the storage question. Mere price fluctuations do not create shortages, except as they may be allowed to influence one's buying and storing policy. The question is deeper than just one of price, lack of labor, car shortages, freight embargoes, and other factors, but all these have brought storage problems more prominently to the front. Every business needs a certain amount of raw material, or manufactured articles, or supplies. For successful operation there must be sufficiency, and there must not be lack. Every dollar's worth of goods carried in stock beyond the sufficiency point creates an expense beyond the needs of the business, and to that extent decreases the profits. Insufficiency endangers the smooth working of a manufacturing plant, which might be compelled to close down, or temporarily suspend the operation of its production department, thereby entailing severe losses. And a supply house unable to furnish from stock articles which it is supposed to carry suffers losses both tan- gible and intangible. Too often the storekeeper is looked upon as a man whose duties are exclusively physical. He is not supposed to have a thinking job. The position of storekeeper needs better recognition; it needs recog- nition on a somewhat different basis to that which is usually accorded it. Sufficient consideration has not been given to the potentialties of the keeper of the stores. He is in complete control of a very large proportion of the wealth of many concerns. If he is PREFACE vii not in complete control, it is because of lack of ability and vision on his part, or because he is not given a standing commensurate with that to which he is entitled. Everything held in storage is a form of wealth. If it were not there would be no logical reason for storing it. Raw materials and manufactured goods are wealth in its best and truest sense, because they are the product of, and represent the industry of, a nation or community. Money, stocks, bonds, and other forms of wealth may not always do this. All wealth is, or should be, actively utilized to produce other forms of wealth. Inactive or quiescent periods are unavoidable with the property under considera- tion. It takes also the form of bulk; it needs space and storage capacity; it must be guarded, protected and controlled. Records of quantities and values must be kept. It is some of the problems connected with these questions that I have attempted to eluci- date in the following pages. H. B. TWYFORD New York City FOREWORD Acknowledgment is tendered to the undermentioned concerns who furnished the material from which the illustrations of storeroom equipment and appliances were made. Barrett-Cravens Co Multi-truck. The Berger Manufacturing Co. . Shelving and racks. Columbus Lift Truck Co Lift truck. Elliott Fisher Co Bookkeeping machines. Mathews Gravity Carrier Co. . . Conveyors. The National Scale Co Counting machines and scales. The New Britain Machine Co. . Racks and tote boxes. The Plimpton Press Elevating truck. C. J. Root Co The Root counter. The Standard Scale Co Counting machines and scales. Acknowledgment is also tendered to Otis Elevator Co., H. W. Johns ' Manvelle Co., Warner Sugar Refining Co., and Jeffrey Manufacturing Co. for permission to reproduce storeroom forms. The reader should bear in mind, however, that the discussion is confined to generalities and does not describe specif- ically the routine followed by any of the concerns mentioned. CONTENTS Chapter I GENERAL CONSIDERATIONS „„„ Wealth in Storage 1 Commercial Storage 2 /Purpose of Storing . 2 Disadvantages of Storing 4 Balancing Storage Considerations 4 Relation between Buying and Storing 6 Chapter II ECONOMIC QUESTIONS CONNECTED WITH STORING ' Distinction between Storing Material for Manufacturing and for , Other Purposes 8 v The Speculative Element in Storing 10 Storage Investments 10 ' Changes in Values during Storage Periods 11 Storage Costs 11 v Storage Profits 14 Market Prices and Inventory Prices 17 Losses in Storage 18 The New Importance of Storing 19 Indulging in Extremes 20 Scientific Storing is Safe and Sane 21 Chapter III ECONOMIC QUESTIONS CONNECTED WITH STORING {Continued) i The Time Element in Storing 23 * Psychology in Storing 24 Obsolete Materials 25 x CONTENTS What do "Maximum" and "Minimum" Mean? 26 Fixing the Minimum Limit 28 Fixing the Maximum Limit 29 Purchasing Problems and the Storeroom 32 Production Problems and the Storeroom 33 Chapter IV SPECIFICATIONS, DEFINITIONS, AND STANDARDIZATION General Remarks 35 Technical Specifications 37 Correct Commercial Definitions 38 Illustrations of Definitions 40 What the Storeroom can do in Standardizing Definitions .... 45 Obtaining Proper Definitions and Method of Using them 47 Chapter V LOCATION AND EQUIPMENT OF STOREROOM Location 51 Proportion 52 Equipment 53 Bins and Shelving 54 The Closed Type of Bins 58 Open Shelving 60 Racks 63 Utilizing all Available Space 65 Chapter VI APPLIANCES FOR USE IN THE STOREROOM Movable Equipment 67 Counting Machines 70 Weighing Machines and Scales 71 Trucks 76 Gravity Conveyors 89 Mechanical Aids 95 CONTENTS xi Chapter VII MANUAL OPERATIONS Dual Nature of Storeroom Work 97 General Considerations 98 Counting 100 Hand Counting 101 Counting by Weight and Estimate 102 Even-balance Counting 104 Counting with Proportional Scales 105 Automatic Counting Machines 108 Summary Ill Chapter VIII CLERICAL WORK — INVENTORIES The Stores Records 113 The Stores Ledger 114 Machine Bookkeeping 115 The Physical Inventory . 116 The Perpetual Inventory 120 Summary 121 Correct Inventorying 121 Other Considerations 124 Values and Stores Inventories 126 Chapter IX THE STORES DEPARTMENT The Storekeeper 130 Sphere of Usefulness 131 Relations with other Departments 132 Catalogues and Information 134 Charts and Diagrams 142 Personnel of the Stores Department 142 Outline of Work • • • 14 6 xii CONTENTS Ghapteb X RECEIVING MATERIAL The Delivery Point 148 Tracing Shipments 149 Getting Delivery 150 Receiving Material at Destination 153 Chapter XI INSPECTING AND PLACING MATERIAL IN STOREROOM Inspection and Examination 164 Inspection before Delivery 165 Inspection after Delivery 165 Receiving Material into Storeroom 168 Placing Material in Receptacles 170 Material Returned to Stores 171 Scrap sent to the Storeroom 172 Storing Stationery 173 Storing Finished Product 175 Chapter XII DELIVERIES FROM STOREROOM General Considerations 177 Requisitions 178 Issuing Articles in Sets 180 Shop Orders as Requisitions 182 Shortages 184 Apparent Shortages 186 Issuing Supplies 189 Routine Clerical Work 190 Overlooking the Minimum 191 Purchase Requisitions 193 Summary 193 Index 197 LIST OF GHARTS, DIAGRAMS AND FORMS FIGURE PAGE 1. Diagram indicating additions to cost of material placed in storage 5 2. Index card for specifications 38 3. Standard definition for washers 40 4. Standard definition for rivets 41 5. Method of defining carbon brushes 42 6. Method of tabulating part numbers ....;... 43 7. Method of defining terms used in connection with parts of ap- paratus 44 8. Card for recording standard definitions 48 9. Perpetual inventory card or sheet showing method of recording standard definitions 49 10. Showing method of lettering and numbering aisles .... 53 11. Illustration showing the arrangement of various sizes of com- partments from the same size units 54 12. Showing type of bin extending full height of room .... 55 13. Showing assembling of a lower type 56 14. Showing wide aisle to permit drawing long articles from bins . 57 15. Showing flexibility in arranging the sizes of bins .... 58 16. Showing details of construction of closed type of bin ... 59 17. Illustration of plain shelves 60 18. Plain shelves with fronts attached converted into bins ... 61 19. Type of closed rack for material of uniform length .... 62 20. New Britain Stock Rack 63 21. WaU type of rack 64 22. New Britain Revolving Rack 65 23. Beam of an automatic counting machine 68 24. Counting machine of the counter type . 69 25. " " " " portable floor type 70 26. " " " " dormant type 71 27. " " " " portable type 72 28. Weighing machine of the dormant type 73 29. Weighing scale with dial 74 30. Heavy type of weighing scale with double faced dial ... 75 xiii xiv LIST OF CHARTS, DIAGRAMS AND FORMS FIGUKE PAGE 31. Plimpton Elevating Track 76 32. Method of using old-style track 78 33. Method of using elevating or lifting track 78 34. Columbus Lift Track, without platform 79 35. " " " with platform . 79 36. The Barrett Multi-track 80 37. Showing stacking on platforms 81 38. Tote boxes moved on platforms 82 39. Storing steel filing equipment with multiple lifting trucks . . 83 40. Handling tote boxes filled with castings 84 41. Racks built on platforms 85 42. Handling cases filled with small parts 86 43. Large number of cases of cigarettes which can be handled on elevating tracks 87 44. Platforms arranged with special racks for carrying Edison records 88 45. Showing how the gravity conveyor can be adapted to curves and other unusual conditions 90 46. Boxes of limes stacked at the rate of sixteen per minute with the use of the conveyor 91 47. Conveying to the storeroom cases of glassware rapidly and with- out breakage 92 48. A straight run to the storeroom 93 49. Conveying cases of syrup 94 50. Automatic counting of small parts .100 51. All sizes counted in any kind of container 103 52. The work of counting can be done by boys or girls . . . 105 53. Illustration of counting tubes or rods 106 54. The Root Counter 107 55. Stacking barrels can be used to great advantage .... 108 56. Stacking tote boxes made by the New Britain Machine Co. . . 109 57. Storeroom rack designed to accommodate the tote boxes shown in Figure 56 110 58. Tote boxes of the resting type Ill 59. Elliott-Fisher Bookkeeping Machine .115 60. Perpetual inventory for showing method of inserting standard definition of the article 118 61. Perpetual inventory form, alternate to Figure 60 .... 119 62. Perpetual inventory form of the loose-leaf type used by H. W. Johns Manville Co 123 63. Verification card used by the checkers or auditors .... 125 LIST OF CHARTS, DIAGRAMS AND FORMS xv FIGURE PAGE 64. Perpetual inventory form with columns for recording values . 127 65. Method of recording data obtained from catalogues and orders placed 133 66. Method of recording information on sheet copper 135 67. Showing method of recording contract date and consumption . 137 68. Recording information regarding weight of wire 138 69. Extract from catalogue with data on steel collars 139 70. Index card for catalogues 140 71. Index card for catalogues under name of manufacturer . . . 141 72. Chart showing variations amount of cotton waste issued by storeroom 143 73. Diagram showing relation of the various storeroom operations to the perpetual inventory 145 74. Form for requesting information regarding shipment of ma- terial 151 75. Form for notifying departments that material has arrived . . 153 76. Form to advise shipment of material requisitioned by outside storerooms 154 77. This requisition bears on the reverse side spaces for recording receipt of material 157 78. Reverse side of copy of order for recording receipt of material . 158 79. Supplementary form to Figure 78 for recording partial receipts . 159 80. Receiving report in triplicate 161 81. Reverse side of order, used for recording shipments and corre- spondence 162 82. Form used by inspectors for making reports 166 83. Form for reporting results of physical or chemical tests . . 169 84. Form for use when material is returned to storeroom . . . 171 85. Form to accompany all scrap sent to storeroom .... 172 86. Report of material or scrap to be sold 174 87. Requisition on storeroom 178 88. Requisition on storeroom 179 89. Storeroom requisition 181 90. The last section of this is used for withdrawing material from stores 183 91. Shortage ticket 185 92. Used when insufficient material has been drawn from the stores 187 93. Requisition for supplies 189 94. Requisition on purchasing agent 192 95. Storekeeper's requisition on purchasing agent 194 96. Form of requisition on purchasing agent from departments . 195 STOKING CHAPTER I General Considerations Wealth in Storage THE implication to be drawn from the fact that an article or commodity is being stored is that the thing in storage has some value. If this were not the case there would be no logical reason for storing it. Therefore everything which is held or retained for long or short periods is a form of wealth, and economic reasons demand that all wealth be properly guarded, controlled, and recorded. The earth itself is one vast storehouse of untold riches, great quantities of which are being taken out; still larger quantities are undiscovered, and very large quantities are discovered but undeveloped. All forms of wealth, if properly utilized, produce, or are used in producing, other forms of wealth. For example, water stored in a reservoir is essential to the existence of the people and preserves the health of those in the communities it serves, thus adding to the wealth of the nation as represented by the health of the population. Wealth in the shape of grain is stored in elevators, and coin and bullion in the vaults of banks, but discussion of the questions 2 STORING regarding the storage of these things does not come within the scope of what is contemplated in the pres- ent work. Commercial Storage The problems it is proposed to discuss are those connected with commodities, materials, and articles acquired for the purpose of operating any commercial undertaking, and are consumed in the process, such as coal, lubricating oils, stationery, etc.; or which are acquired for the purpose of reselling under one of the following classifications. 1. In the same condition as purchased. 2. As a component part of an assembled machine or article. 3. After manipulation by some manufacturing process which converts the material into the finished product of the factory through which it passes. Storage problems such as those indicated are not new, but they have attained a new importance because of the closer control which is being exercised over all forms of wealth, because of the desire for the better ordination of the economic features connected with the conservation, handling, and distribution of wealth, and because of the growing demand which exists for a wider knowledge of the factors which have an influence on wealth in its idle or quiescent periods. Purpose of Storing To obtain the greatest benefits from any form of wealth it must be kept in a state of activity, and if a supply in unbroken continuity could be secured of GENERAL CONSIDERATIONS 3 all goods, articles, and materials required by the operations of business, little or no storing would be necessary and an ideal condition would exist, because the wealth of the country would be incessantly at work or in a state of activity, with no idle periods. Owing to irregularity in the output of commodities and manufactured articles, and to the fact that they are used or consumed in localities at varying dis- tances from the point of origin, with the attendant uncertainties and delays in transportation, it becomes necessary to accumulate stocks of materials and articles. These stocks may be held where produced, or at or near the point of consumption. Having these stocks available facilitates the dis- tribution of articles in daily demand and enables commercial operations and manufacturing to be car- ried on without undue delays and interruptions. A manufacturer, for instance, can maintain a uniform rate of production in spite of fluctuations in demand, if he stores his surplus output during the dull seasons. Working under these conditions he can operate his factory on a more economical basis than if he were operating it for certain periods at twenty per cent of its capacity, at other times at sixty per cent, and possibly during periods of unusual stress working overtime. Another object in storing goods, merchandise, and commodities is that it is sometimes possible to pur- chase these things when they are not needed for immediate consumption at very favorable prices or prices lower than normal. It then becomes necessary to hold them until such times as they are needed for manufacturing purposes or a resale is effected. 4 STORING Disadvantages of Storing In the preceding paragraphs good reasons have been briefly stated in favor of storing, but there are equally good and cogent reasons against storing, and these reasons are at times so strong as to com- pletely outweigh the advantages. To place any article in a storeroom means space must be provided for it and space costs money. The goods must be insured, they must be protected, they must be handled at least twice, once in going in and again in going out of the storeroom. They may be of a perishable or semi-perishable nature and are liable to physical deterioration. They are liable to de- preciation in market value. The money invested in them is in a state of obsolescence after they are paid for and during the period they are at rest in the storeroom, and loss of interest is incurred on the money invested. Balancing Storage Considerations The crux of the storage problem lies in the consid- eration of the advantages and disadvantages. Any business man finding the correct solution and acting on it is assured of success. Many business failures can be attributed to overstocking and loose storage methods, while many concerns have successfully passed through crises and critical periods because of their efficient storage policy. Foresightedness, good judgment, and proper calculation of all the features outlined and many more are essential to successful storing. With- out these the consequences may be disastrous. The significance of the question whether to store or not to store has been compelling attention largely TRANSPORTATION CHARGES COST OF MATERIAL AT POINT OF SHIPMENT INTEREST ON MONEY INVESTED IN MATERIAL IN STORES COST OF CLERICAL WORK IN KEEPING RECORDS COST OF HANDLING IN DELIVERING FROM STORES LIGHT AND HEAT INSURANCE ON BUILDING EQUIPMENT AND CONTENTS DEPRECIATION ON BUILDING AND EQUIPMENT INTEREST CHARGES ON FIXED AND MOVEABLE EQUIPMENT RENT OR INTEREST CHARGES ON BUILDING SORTING AND PLACING ON SHELVES AND RACKS DELIVERING TO STOREROOM TRANSPORTATION CHARGES COST OF MATERIAL AT POINT OF SHIPMENT Figuke No. 1 — The cost of an article which passes directly from the supplier to the user is covered by the first column but if it is placed in the stores its ultimate cost to the user is increased by the items listed in the second column. 6 STORING because of better methods of figuring costs and a better realization of these costs, especially in con- nection with storage. Unobtrusively but none the less surely this issue is forcing attention to all the problems associated with it. The subject is of vital interest to every manufacturer, every jobber, every supply house, in fact to every business concern buying goods and retaining them for long or short periods. Situations have arisen in the recent strenuous times which have made storage questions the most prominent issue in many commercial transactions. It is only necessary to peruse the daily papers, trade publications, and technical press, to realize the im- portance of this. Under-production, shortages, freight embargoes, and other unusual conditions occur and reoccur with such frequency as to be almost normal. Buyers who may have been anticipating their actual needs by one month have been compelled to look ahead three months, six months, and even twelve months or longer. Storage considerations have an important bearing on these purchases. Many buyers who have been depending on getting their supplies direct from the mills have had to fill their requirements from supply houses and local stocks. In all such cases they must pay the storage costs and the expenses of handling incurred by the dealer, and it is essential for the buyer to know some- thing of these costs for him to properly determine the economy of a purchase. Relation between Buying and Storing Buying and storing, although distinct and separate functions in any business, are closely related in all GENERAL CONSIDERATIONS 7 those cases where the goods do not immediately pass out of the possession of the purchaser. Determination of questions regarding storage are frequently controlled by conditions in the buying market. Conversely questions regarding purchasing are frequently determined by storage conditions. It will be necessary, therefore, in discussing the economic aspects of storing to refer to purchasing and market conditions. CHAPTER II Economic Questions Connected with Storage Distinction between Storing Material for Manufacturing and for other Purposes THE classifications mentioned in the last chapter have varying problems and need separate treat- ment, but apart from the strictly economic and com- mercial features there is not so much difference as to warrant separate discussion. In later chapters such matters as conveying, transporting, handling, and storing goods and materials will be discussed collectively in spite of certain distinctions between the various classifications and perhaps some minor differences and distinctions in the manual and clerical work connected with the operation of a storeroom. Primarily all business operations are conducted for profit, but in buying and storing goods the ques- tion of profit cannot be considered in the same manner. For instance, goods which are bought and stored for resale in the same condition as purchased are procured exclusively for the purpose of making a profit when the selling transaction is completed. Between this class of goods and material which is procured for manufacturing purposes there is the great fundamental difference that the latter class are dependent on the skill of the workmen and the manufacturing art to ECONOMIC QUESTIONS 9 convert them into a product which can be disposed of at a profit. The profits of most manufacturing plants are de- pendent on the continuous and unbroken operation of their production departments, and the successful operation of these departments means that they must be supplied with raw material without cessation. Therefore it must be procured and stored in the req- uisite quantities to insure this. Sufficient quanti- ties must always be on hand and ample storage space must be provided. The cost of the material may be high and questions regarding the actual price paid may have to give way to the imperative necessity of maintaining a certain minimum quantity in the stores. These considerations do not apply in storing goods for resale purposes. If a buyer cannot see a sure profit he has the option of staying out of the market and allowing his warehouse to remain empty or he has the alternative of fining his storage space with speculative purchases. Whichever course he pursues he must take certain factors into consideration. If his storage space is vacant there are some overhead expenses being incurred such as rent, building in- surance, etc. On the other hand, if his storage space is fully occupied, there are additional overhead ex- penses, such as insurance on the goods, protection against loss by theft, protection against depreciation and loss of interest on the money invested. There are the main differences between storing material for resale purposes and manufacturing pur- poses, and these facts should be borne in mind through- out the discussion of storage problems. 10 STORING The Speculative Element in Storing There is not always a well-defined object in storing material. It may be bought and carried purely as a speculation, but even so the speculator cannot ignore or evade the carrying and storage charges. A manu- facturer or a jobber may speculate in purchasing and storing goods and at the same time have a good pros- pect or one more or less remote of using them in the production department or reselling them. It will be seen that there are many phases of the question as to why storage is resorted to and why it is necessary, but none of these affect the economic problems which are insistent factors, whether the storage is purely speculative, whether it is the result of well-ripened and balanced judgment, or whether it is caused by the necessity of maintaining a sufficiency of raw material for manufacturing purposes. Storage Investments All manufactured or semi-manufactured goods and all raw material are a form of wealth. It is wealth in its best and truest sense, because it is the product of and represents the industry of a nation or com- munity. Money, stocks, bonds, and other forms of wealth may not always do this. The property under consideration takes the form of bulk; it needs space and storage capacity. It must be guarded, protected, and controlled. Records of quantities and values must be kept. All of these features necessitate an expense outlay. Therefore the ownership of this form of wealth carries with it the responsibility of obtaining an increased price ECONOMIC QUESTIONS 11 for it when ownership is transferred to cover the expenses referred to or a loss will be incurred. Changes in Values during Storage Periods Changes may occur in the monetary value of goods in storage through market fluctuations. An appre- ciation in the price is naturally very desirable, and as already stated storage is often resorted to for the purpose of holding certain goods until the advanced price can be secured. Conversely, there may be depreciation in values, but good judgment and fore- sightedness can largely prevent this. It is a common fallacy that all goods in storage are depreciating in value, because of the items of expense already referred to. This is far from being the case. The expense of storing adds to the cost of goods; it does not depreciate values. The causes which make for degradation in values while material is at rest in the stores are depreciation in market prices and physical deterioration from natural causes or from carelessness in handling. Storage Costs In computing the cost of any article which is in storage every item of expense must in the last analysis be absorbed into the total. The primary object in all commercial transactions being to keep the cost of goods as low as possible, it becomes apparent that storage problems are of considerable importance. There can never be any fixed rules as to actual storage costs, but there are always certain factors which must be taken into consideration in determining the costs. The costs themselves will vary tremen- 12 STORING dously and will be governed very largely by the nature of the goods, the location of the storehouse, the length of the quiescent period, the difficulties of handling, the necessity of protection from physical injury, and many other causes. There is first the permanent investment in build- ings to be taken into consideration, or if space is rented for storage purposes the rent is the first item to appear in storage costs. This item is subject to ex- treme variations because the character of material low in intrinsic value may require large areas, whereas valuable material may often be stored in small spaces. Location has an important bearing on this question, and it assumes some magnitude if it is in an expensive section of a city or in a congested district. Such a condition might make prohibitive the use of large areas, or it might render necessary the location of the stores in some less expensive section. Other factors are brought to the front in deciding the question of space. If it is curtailed to a point where it leads to a congested condition in the store- room, many inconveniences and delays will occur in handling the stock. It will mean that frequently material must be handled two or three times where only once would be necessary if space were ample. The lack of space and additional handling may cause physical damage to the stock. Only one result is possible from insufficient storage facilities and that is extra expense and added costs. The capital outlay on a storeroom includes an in- vestment in equipment. This equipment will vary almost as much as the building, the variations being governed by the character of the goods being stored. ECONOMIC QUESTIONS 13 Both fixed and movable equipment is necessary and consists of racks, bins, apparatus for weighing, meas- uring, moving, handling, etc. All these must be pro- vided as conditions demand. Although no two warehouses or storerooms may be similar in size, location, or equipment, still there are well-defined rules for determining the overhead charges comprised in the capital outlay. In calculating stor- age costs this investment must be taken into consider- ation, with the attendant interest charges, depreciation, etc. These items are susceptible of accurate determi- nation. A factor, however, which cannot always be accu- rately determined or at least would sometimes need elaborate accounting calculations to arrive at a cor- rect figure, is the interest charge on the money in- vested in the goods, materials, and supplies in the stores. The credit periods arranged by buyers vary greatly, and in some cases goods might be paid for before entering the stores, while in other cases they may have passed out of the stores before any money is actually disbursed in payment. In a manufacturing plant raw material storage ceases as soon as it passes out of the raw material stores for manipulation in the shop, and factory storage costs can be figured up to that point. There is an investment and a corresponding interest charge on material while undergoing conversion in the shop into the finished product, but the storekeeping func- tion ends with the passage of the material out of the stores. This is also true of goods sold and shipped out of storerooms and warehouses. If strict accuracy were desired on this point, it would be necessary to 14 STORING figure the exact amount of interest on the money from the time the cash outlay was made until the material was moved from the stores. The cost of borrowing money to carry goods in storage cannot be considered if proper allowance is made for interest on money invested in goods in storage, as this would simply be duplication of costs. Storage costs must bear their proper proportion of general burden and overhead expense; when these have been equitably divided and spread over an estab- lishment their effect on storage costs can be accurately determined. Insurance is another item of expense which for goods in stores should be segregated from the general insurance expense of an establishment. It is quite easy to average the value of the stock on hand and keep it amply covered, allocating to storage costs the exact amount of the premiums. Finally, all items of expense for which the store- room is directly responsible are a part of storage costs. These include salaries and wages connected with stores bookkeeping, and in receiving, handling, and delivering the stock. All stationery and appliances used exclu- sively in the storeroom should be charged accordingly. Storage Profits Appreciation in price is the only source from which a profit can be shown, and this appreciation must run at a faster rate than the storage costs to enable a profit to appear. If the activities of the sales de- partment of an organization result in disposing of the goods in storage at a profit, that is something quite apart from what happens to those goods during the ECONOMIC QUESTIONS 15 quiescent period while they are lying dormant in the stores. The present discussion is confined to that period. By far the greatest number of transactions which involve the storing of goods for long or short periods are made with the prospect that the market price will remain stationary during the storage period, but purchases are often made with the expectation and hope that an advance will take place before a resale is effected. Nobody wants a decline to take place during the period under consideration, but there are many occasions when material and articles must be stored without too much weight being given to ques- tions of appreciation and depreciation in price. Some jobbing and supply houses have a policy of carrying a certain amount of stock to take care of their regular trade, and will do this in the face of un- rest and upheavals in market prices. Even if losses are contemplated through depreciation, it is considered better policy to take the risk of these rather than risk the loss of good customers. While market prices naturally influence the buying of raw material for a manufacturing plant, still there comes a time when this influence is counteracted by the necessity which exists of keeping a sufficiency of raw material in the stores to enable the produc- tion department operations to proceed without let or hindrance. Much greater losses would probably be sustained by a temporary stoppage of active manu- facturing operations through lack of raw material than from losses through depreciation in price. What becomes of the so-called profits in storing materials? From the point of view of the jobber 16 STORING and supply house it is comparatively simple, because when a sale is made the profit can be absorbed into the profit and loss account; but what is the manu- facturer going to do who may have to maintain a stock of 50,000 pounds of sheet copper as a minimum for his factory requirements? This may be inven- toried one year at 30 cents per pound and a year later at 40 cents per pound. Such a condition has been quite possible in the recent strenuous times. If fluctuations in market prices are allowed to con- trol inventory prices, there is here an apparent profit of 10 cents per pound, equaling $5000. This, however, is far from being the case, unless during the interval between the inventories the price of all incoming copper had been at 30 cents, the price prevailing when the first inventory was taken. This is almost an impossible condition in a rapidly advancing market such as the change in price would indicate. What actually occurs is this: the copper in the stores when the first inventory was taken would be absorbed into the manufacturing costs at the price paid for it. All shipments of copper coming into the stores after the inventory would likewise 1 \ J 1 SQV/U?£ '+-* — « < s ' f J 1 -. 3 WASHERS DEFINITION! The term "Washer" shall be understood as indicating a thin, part or piece with a hole in it The part and hole are usually round in form although both or either may be rectangular or some irregular shape. The term "Washer" shall not be applied to a thin part or piece that does not have a hole in it. Such parts shall be known as "Disks" or "Plates" depending upon their shape, and no part shall be known as a washer where the thickness is greater than the diameter of the hole or inside diameter of the part. Such parts shall be known as Bushings, Collars, etc. which are properly described under their several headings. Several forms of washers are shown above, also the general method of dimwiainning that should be followed on all drawings. Washers are used for many purposes, such as taking up space, to insure a better bearing for bolt' head or nut, insulation, etc. If made of a yielding material, they may be used to make a tight joint between bolt, nut and part it is in contact with.. They are made in an endless variety of forms and from, many classes of material. In specifying plain round washers, not standard, the dimensions should' be given in the following order, viz.. Inside Diameter, Outside Diameter, Thickness and Material. In specifying "Narrow Gauge" standard washers, state diameter of bolt used on, material and fltate "Narrow Gauge." For dimensions of V. S. standard and standard narrow gauge round iron washers, see table. "Dimensions of Standard Wrought Iron Washers" #5209 Data Class. For list of iron washers giving Part Numbers see #1128 Table Class. For dimensions of standard round brass and copper washers, see table "Dimensions of Standard Brass and Copper Washers" #5211 Data Class. The term "Standard" when applied to brass and copper washers refers only to the Otis Elevator Company's Standard as there are no commercial standard brass and copper washers. For list of brass and copper washers giving Part Numbers see #1127 #1129 and #1201, Table Class, In specifying rectangular washers, the dimensions should be given in the following order, viz.,' Diameter of Hole, Thickness, Width and Length. SPECIFICATIONS FOR PURCHASE ORDERS AND STOCK LEDGER SHEETS. Quantity, Bolt Diameter, Standard Iron Cut Washers. Example: 20 lbs. (approximately 500) J 'standard iron cut washers, or 25 lbs. (approximately 500) | ' standard iron cut washers, "Narrow Gauge." Figure No. 3 — Standard definition for washers. SPECIFICATIONS AND STANDARDIZATION 41 ful and of great benefit in securing the objects out- lined. In all establishments of sufficient magnitude COi/Afr£TSt/A//f. -£>-- =T Bi/rro/v- FLAT. IRON RIVETS DEFINITION: A rivet is a pin for holding two or more plates or pieces together. A head is usually formed on one' end when the rivet is made; the other end is upset, or headed, after rivet is put in place, and draws the riveted members close together. Iron rivets are made with many different style heads. Requirements are to be confined to countersunk and button heads wherever possible. For length of rivet before forming head, see table "Rivet Lengths for Forming' Round and Counter- ' sunk Heads" #5210 Data Class. For list of iron rivets giving Part Numbers, see #1178 Table Class. The included angle of head of countersunk head rivet is 70 degrees. The material used in the manufacture of "iron rivets" is Extra Soft Steel and must have a tensile strength of not less than 50000 pounds per square inch. SPECIFICATIONS FOR PURCHASE ORDERS AND STOCK LEDGER SHEETS. f Countersunk Pounds (Approximate number of rivets) Diam. x Length \ Button [ Head Iron Rivets. { Flat J Example: 200 lbs. (approximately 2000) f ' x 2|* button head iron rivets. Note: — For number of iron rivets in 100 lbs. see table on page 12. SPECIFICATIONS FOR STOCK OR SHOP LISTS AND REQUISITIONS. f Countersunk Quantity, Diam. x Length \ Button [ Head Iron Rivets. I Flat J Example ; 25 — f ' x 2\ " countersunk head iron rivets. SPECIFICATIONS FOR DRAWINGS AND ENGINEERING PART LISTS. f Countersunk \ Quantity, Diam. x Length \ Button \ Head Iron Rivets, Part Number. [Flat J Example: 25 — \" x 2J" countersunk head iron rivets, Part No. 7895. Figure No. 4 — Standard definition for rivets. some similar scheme should be in force. There are certain points in connection with the illustration which 42 STORING need some explanation, although their general import can be readily comprehended by a careful perusal. m-0- *-e- JV//9JT &9i/Jd£ BRUSHES DEFINITION: The term "Brush" shall be understood as indicating an electrical conductor bearing against a \ surface for the purpose of maintaining a continuous electrical sliding contact between the same. There must be relative motion between the brush and surface such that the said parts slide over each other in normal operation, but this contact must be maintained when such motion ceases. They are made in an endless variety of forms, and from a variety of materials. The material will be generally understood as being carbon or graphite, or a combination of both, either with or without a given percentage of metal, depending upon the specifications. Several forms of brushes are shown above, also the method of- dimensioning that should be followed on all drawings. When specifying brushes, they must always be specified per O. E. Grade numbers as shown on J433-B Data Class and #973-B Specifications. When ordering brushes, reference must always be made to a drawing or sketch. SPECIFICATIONS FOR PURCHASE ORDERS AND STOCK LEDGER SHEETS. Be guided by drawings and specifications when making Purchase Orders and Stock Ledger Shf P ts , using in addition to description, the Part Number. SPECIFICATIONS FOR STOCK OR SHOP LISTS AND REQUISITIONS. Be guided by drawings and specifications when making Stock or Shop Lists and Requisitions, using in addition to description, the Part Number, SPECIFICATIONS FOR DRAWINGS AND ENGINEERING PART LISTS. Quantity, Name of Part, Class, O. E. Grade Number. Part Number, Drawing Number:' Exampler 25 motor brushes complete, class #10, O. E grade §7, Part No. 12340, No. .5047 E. D. Figure No. 5 — Method of defining carbon brushes. Figures 3, 4, and 5 illustrate the method of defining well-known small articles. They indicate how these should be specified on the storerooms perpetual in- ventory or ledger sheets, which should in all cases SPECIFICATIONS AND STANDARDIZATION 43 correspond with the specification on the storeroom requisitions and on the purchasing agent's orders. It will be noticed that when specified on drawings %- pp TYPE'R' TYPE'S TYPEV STUDS— STEEL AND IRON Part Number D L Li Lt Type Material Remarks 12162 »' 1ft' i* _ A C. R.S. 0C-93SW 80806 ft* If ft* ft' A C.R.S. "1696 E. D. 85237 ft' 13* Full length C CR.S. 083 MA. (#10-32 6ie) 89760 ft' 4ft' 1" i' C C.R.S. #94 MA. (#10-32 Die) 89467 ft' 1ft* I* i* B C. R.& #194 SW. (#12-24 Die) 801867 .242' U' A' 1* A W.I. #559 E. D. (#14-20 Die) 801042 .242* U' ft' 1' A C.RS. #2095-AE. D. (#14-20 Die) 801037 .242* 2}' 3* I' C C. R. S. Part List 1485. (#14-20 Die) 80807 .242' 2J» Full length C CR.S. #2427-BE. D. (#14-20 Die). Weight rod 801038 .242' 3* J' i* c C. R. S. Part List 1485. (#1.4-20 Die) 801416 .242' 3H' 3' 3* A C. R. S. #436 SW. (#14-20 Die) 800127 .242* 4' 1* — C C. R. S. Part List A-54-CR. (#14-20 Die) 80808 .242' 4' Full length A C. R.S. #1253-B E. D. (#14-20 Die) 800369 .242' 5§* i* i* A C.RS. #97 MA. (#14-20 Die) 87125 r i' r — A C. R. S. #2873-B E. D. 802290 1* If i* — A C. R. S. #2385-BE. D. (#14-20 Die) 286 3' 2' j* — B C. R. S. #B-126 CR Special, one end slotted 80809 3' 2' »* H* A C. R. S. #2314 E. D. Special, see drawing 80810 i* 2i* 3* i' C C. R. S. #3253 E. D. 84548 i' 2}' V V C C. R. S #B-225N. Special, copper plated 801322 i* 3j* V 3* — C. R. S. #418 SW. (#14-20 Die) 80811 3' 4' ft' I" B C. R.S. #1619 E.-D. 801040 ft' 13' ft' 3' A C. R. S. #2135-AE. D. (#16-20 Die) 802291 ft' 2' 1ft* — C M.S. #106 SW 802292 ft' 2' 1ft' — C M.S. #106 SW. Special, sherardized 80812 ft' 2}* 8' 1" C C.R.S. #3129 E. D. 80813 ft' 23* 1* i' A C. R.S. #3128 E. D. Obsolete, use #89437 89437 ft' 2J' \' i* C C. R.S. #93 MA 89603 ft* 23' V 3* C C. RS. Part List A-65 SW. (#18-18 Die) 80814 ft' 3' Full length A C. R.S. #3827 E. D. 89438 ft' 3i* J* r C C. R. S. #93 MA 80815 ft' 5' ft' 2' C C. R. S. #3399 E. D. (#18-18 Die) 801790 r H* ft' — A C. R. S. #4526 E. D. 801704 r li* r — A C.RS. #4561 E. D. 801705 r 11* r — C C. R.S. #10737 Sketch 801839 r W ft* — A W.I. #3523-A E. D. Special, one end drilled for cotter pin 84849 r 2* r — A C. R. S. #4030 E. D. Special, one end drilled 801732 i* 2ft' i' 1' C C. R. & #74 SW 801437 3* 2J* 3* 1' C M.S. Part List 1962. 80817 »' 2J* IA' IA' c Forged Steel #109 SW Special, sherardized, one end drilled for cotter pin 12039 3* 2}' li* U* A C. R.S. #B-5CR 80816 I' 2j* 1ft* lft' C Forged Steel #109 SW Special, one end drilled for cotter pin 18977 3' 2ft* V — A C.R.S. #593-A E. D. Special, one end drilled for cotter pin. M.O.S. 80818 1' 21* FuU length C C.R.S. #4382-B E. D. 80819 r 2}' i' r c m. a #3326-A E. D. 18978 r 25* 1* — A CRS. #1725-A E. D. Special, one end drilled for cotter pin. M.O.S. 80820 3* 23' i' ift' C C.H.S. #109 Duplex motor 800909 3' 23' 1* — B CR.S. #3596 E. D. 87231 Y 3J* 1' ift' C C. R.S. Part List A-87 SW 80821 V 33* J' i* c CRS. #3326-B E. D. 89607 V 31* H* ii* c CR.S. Part List 108 SW 80822 V 3J* 1* i* c C. R.S. #3119 E. D. STitt |* 3J* 1ft* ift.' Q C.R.S, Part List 8-66 SW Figure No. 6 — Method of tabulating part numbers. 44 STORING DEFINITION OF PARTS above ifofiniKnn that is less than 12' long shall be known as a "Connector." In the case of large cables the smaller insulated cables may be twisted together forming one large cable and then be further insulated by an additional wrapping. The term cable should not be applied to hoisting ropes, governor ropes, etc, these will be denned under their proper headings. Specification' should state: Quantity, Size, Name of Part, Material, Part Number. Example: 1— #261-32 cable. Copper, Part No. 8798. 1— #520-36 cable. Copper, Part No. 8897. CAGE— A skeleton frame to limit the motion of a loose piece or loose pieces, as ball cages, valve cage, etc Apply a prefix to the term indicating function. Specification should state: Quantity, Name of Part, Material, Part Number. Example: 4— thrust bearing ball cages. Brass, Part No. 7807. 1—5}' valve cage, Bronze, Part No. 2073. CALK— This term will be understood as indicating an operation to. •tighten a joint formed by overlapping metal plates, or similar parts, by driving the edge of one plate hard down on or into the surface of the other with a tool called a "Calking Iron." CAM— A rotating or sliding piece of any precise shape, or a pro- jection of definite shape, as on a wheel, either for imparting de- sired particular movement to a roller moving against its edge, to a pin free to move in a groove on its face, etc., or for receiving motion from such a roller, pin, etc Apply a prefix to the term indicating location. Specification should state: Quantity, Name of Part, Material, Part Number. Example: 3— limit switch cams, C. I., Part No. 3724. 1— rheostat cam, C. I., Part No. 8737. 4— switch arm cams, Brass, Part No. 3235. CAP— This term will be understood as indicating the detachable portion of a shaft bearing or a box, when used as a receptacle for a stationary pin, shaft, etc., either directly or through an intermediate lining. Apply a prefix to the term indicating function. Specification should state: Quantity, Name of Part, Material, Part Number. Example; 1— drum shaft bearing, cap, C. I., Part No. 8888. 1— back gear stand cap, C. I., Part No. 9979. 2— vibrator shaft box caps, C. I., Part No. 3797. 2— brake frame caps, C. I., Part No. 2155. CAPSTAN — A vertical cleated drum or cylinder revolving on an up- right spindle, with pawls at the foot of the drum, and surmounted by a drumhead with sockets for bars or levers. It is much used for moving or raising heavy weights, or exerting great power by traction upon a rope or cable passing around the drum. It may be operated by steam or electric power, or by means of capstan bars pushed by hand. A capstan is distinguished from a windlass in that a windlass turns on a horizontal axis. CAR— This term will be understood as indicating that enclosed part of an elevator apparatus in which the passengers or freight If the part is not enclosed it will be termed a "Platform." CARRIER— A device that carries or drives, as the traveling part of a mechanism or system directly supporting something conveyed from one place to another. This term must not be applied to a single part, but is to be used to indicate a complete apparatus, as a releasing carrier, etc Apply a prefix to the term. indicating function. Specification should state: Quantity, Name of Part, Part Number. Example: 3—reIeasing carriers, Part No. 673» CASE— A part used as an enclosure or protectee. parts. See also "Housing." Apply a prefix to the term, indicating locatio* Specification should state: Quantity, Name Part Number. Example: 1 — worm gear case, C. *., Part Nc X — brake magnet case, C. I., Part 1 — stop motion case, C. I., Part Ii CATCH — A part used to check, retard, stop or he- parts either permanently or for a'predetermin/ The term catch should be used with discre/ wherever possible Apply a prefix to the term indicating function. Specification should state: Quantity, Name Part Number. Example: 1 — contact arm catch. Brass, Par 1 — weight lever catch, C. I., Pan 1 — magnet armature catch, C. I., CENTER— This term has been erroneously used cate a detachable hub for wheels, gears, sheav The use of this term must be avoided in the f the term "Hub." CHAIN— This term will be understood as ii links or rings, connected or fitted into on various purposes, as a support, restrain, or of mechanical power, etc. Chains are also > weight." Chains are made in many forms ar Apply a prefix to the term, indicating type o* Specification should state: Quantity, Size Material, Part Number. Example: 20 ft. #10 Diamond sprocket chain, S 30 ft. i * bicycle chain, Steel, Part 40 ft. i ' open link chain, W. I., Pa) 20 ft. §* sash chain. Brass, Part N CHAIR — ATslock or plate used for supporting a time securing it to another part. Avoid the use of this term, using instead Catch, Clamp, etc, depending upon conditii of Bracket, Catch, Clamp, Etc CHANNEL— This term will be understood a rolled iron, steel, brass, etc, having a gutter i Specification should state: Quantity, Sij Material, Part Number, ' Example: 3 — pes. 8' x lli# channel, Ste(, 5 — pes. 6' x 8# channel. Steel, P Or it may be written: — 3— pes. 8' x 11J# Is Steel, Part 1* 5— pes. 6' x 8# Is Steel, Part No CHECK NUT — A nut screwed down hard on & from slacking back. This part is sometimes a "Jam Nut. For further information concei and method of specifying, see #5036 Data CI For dimensions of standard check nuts see #51 For list of standard -check nuts giving Part and #1194 Table Class. CHEST— This term •will be understood as indica tacle or box, usually for holding gas, steam, I Steam chest for an engine, or water chest for fa- Apply a prefix to the term indicating functia Specification should state: Quantity, Name Part Number. Example: 1—5* x 5' water chest, C. I., Parti X — 8* x 10* engine steam chesty C Figure No. 7 — Method of defining terms used in connection with parts of apparatus. This information is valuable to non-technical men. SPECIFICATIONS AND STANDARDIZATION 45 and engineering part lists the "Part number" should be given. This is a detail which it is not necessary to specify on a purchase order because it would have no meaning to the recipient of the order. It is infor- mation solely for the members of the organization and enables them to identify the article with the part number. Figure 6 shows in what manner the part numbers are tabulated. The purpose of this table is clear and needs no explanation. Figure 7 indicates the use of the various parts. This sheet gives very valuable and very interesting information. It enables all employees to acquaint themselves with the purpose of the many articles used in constructing and assembling the product of a factory. In this respect it is a liberal education. The sheets illustrated in Figures 3 to 7 should be distributed to all members of an organization whose duties require them to name or specify any material, and should be kept in handy binders for ready reference. The purpose which the sheets are intended to serve will, however, be defeated if they are not used. This is the one defect of this system. They are apt to be treated as books of reference for use when in doubt, and too often are not referred to at all, with the result that many mistakes are made. In spite of this they are eminently successful and a rigid enforcement of their use would make them completely so. What the Storeroom can do in Standardizing Definitions The discussion in this chapter has been confined to schemes and efforts which are general in their nature; 46 STORING that is, they are for use throughout the establishment and are not of storeroom origin. But there are many organizations which are not of sufficient magnitude to adopt such an elaborate scheme and perhaps do not care to incur the expense which it entails. Never- theless, their need is just as insistent as that of the larger concerns. It is in such instances as this that the storeroom can render inestimable service. It can do it to better effect than any other department, because it is the medium through which the articles pass and it has both the acquaintance with the physi- cal properties of the article by daily contact and the acquaintance with its description through the daily clerical work of recording and stores bookkeeping. Large results can be accomplished by the storeroom if the problem is approached in the right manner and grappled with in a systematic way. It is not contended that the storekeeper should de- fine what material should be used in production work. That phase of manufacturing must be left to the technical staff. It has probably been adopted after exhaustive and extensive experiments have determined its suitability, and this work cannot be rendered nugatory by a non-technical man. What it is sug- gested the storekeeper's activities should cover is the proper description and ordination of the innumerable small articles which form a composite part of the product of the factory. But in connection with all supplies and small tools the storekeeper's activities may take on a wider scope. In many establishments it may be wise to let him have the deciding voice in selecting such things as waste, brooms, brushes, all kinds of packing materials, etc. SPECIFICATIONS AND STANDARDIZATION 47 If he is a man of the right caliber, with common sense and discrimination, he can keep the varieties of these used around the plant at the minimum. It, too, frequently happens that personal likes and dislikes are allowed to influence the use of these articles, with the result that entirely too many come into use when there is no controlling hand. Many instances have come to the writer's attention in which store- rooms were carrying many styles of brooms and several varieties of waste in excess of actual needs. The storekeeper has these things lined up alongside each other in his racks and bins, and it should be- come apparent to him before it does to any one else that the number can be reduced. Obtaining Proper Definitions and Method of Using Them It is not assumed that a storekeeper could from memory give the correct definition of every article under his charge. In some establishments these may run into thousands; but he can obtain them, and it is not the stupendous task that the number would seem to indicate. Much information can be obtained from catalogues, but this source should be used to collect general information regarding an article, that is, the number of sizes in which it is made, the differ- ent styles, etc., rather than to secure the correct definition. It is necessary to approach the manufacturers and get their technical staff to specify correctly many new items and quite often some of the old ones. There is an extensive movement among manufacturers of many products to standardize the specifications of their output. When the correct definition has been 48 STORING obtained a permanent record should be made of it in the manner indicated in Figure 8. By adopting this course the whole range of articles in the store- room can be covered within a reasonable time and without disturbance of the routine work. If it is found necessary, in very large storerooms, a man can be designated to standardize definitions and devote his whole time to it until completed. KSClflJLSCs < k J%s&£ '/OZA-4C- /Zt& ^l^c^ciyn^ti^Y &*zfZfc ^t^j^n^t^/^ }(ftjCrt^6 m < 1- Q H CC H < ^ ■A a - 3 CO z - a 5 < O H -i co Q _j o LU 6 LL cc z co 5 o UJ > a < < T- cc qS^= _i < UJ LU Q ^ I J « ^ - ° 5 z CO u. < ^ £ Q -I Q. < ^§: s= co < "* S H Z 13 < o a g a 1- s FICA PLE: STANI Q 6 5 5 •• UJ z "J 5 H > UJ 0- X o CO 111 z UJ o o LU cc /? 5v LU ll V < y ^ J 1 h H z < >4 n, a LU d z * CC cc ^ LU Q a cc o CC O K LU 1- < =n •< H Ph 50 STORING of the main features of a storekeeper's activities through which he can render signal and valuable service. There are inevitably many minor details which would suggest themselves to an intelligent and resourceful man. The stores department is between the buyer and the user, and in this position it can be of material assistance in coordinating the activities of the purchasing and production departments. In manufacturing establishments it is not an easy matter to get all foremen to specify correctly each article when they make requisitions to draw material from the stores. Very considerable improvement could be effected over the conditions existing in many plants. Even if requisitions come into the stores with incor- rect or inadequate definitions, the stores department should not repeat these delinquencies in writing up the requisitions, which go to the purchasing depart- ment. CHAPTER V Location and Equipment of Storeroom Location INDIVIDUAL circumstances will largely govern the amount of space necessary, and space require- ments will frequently determine the location. At one time it was considered necessary for supply houses handling similar lines of goods to concentrate in close proximity to each other and the practice is still very largely followed. But this theory is losing adherents, because of the improvement in transportation facili- ties and to some extent because of the success achieved by the large terminal warehouses, which are being used as receiving and distributing points for many classes of goods. It is apparent that these must show economic advantages over warehouses located in a congested section of a city. Better transportation facilities are also largely re- sponsible for the changed conditions in municipal storing. This and the better equipment now obtain- able have had their influence in effecting the improve- ments which have taken place. In some large cities it has been found practicable to reduce the number of stores fifty per cent. In these cases it has effected considerable saving in the amount of help necessary to operate the stores, reducing this item of expense nearly to the same extent as the reduction in the number of storerooms. 52 STORING The problems connected with the location of store- rooms in manufacturing plants are multitudinous, and the solution of them involves consideration of many features which are not met with elsewhere. Well-selected locations will save much physical effort and be a help in keeping down costs, which is the great desideratum in manufacturing operations. No set rules can be laid down, because the con- ditions prevailing in establishments vary greatly and each one needs very close study. It may seem fit from the result of these studies to have one central storeroom furnishing to each department its supplies by means of conveyors or transveyors. In other cases it may be decided to have separate storerooms in each department, with some form of centralized control. The facilities which exist to-day for trans- porting goods between departments have modified the ideas which at one time prevailed regarding store- room locations. These facilities will be discussed later on in this chapter. Proportion In any manufacturing establishment the apportion- ment of space for storage purposes is a matter of some importance. The ideal condition would be to have no vacant storage space and at the same time to have no congestion or overcrowding. This condition is almost impossible of realization, but every effort should be made to get as near as pos- sible to it. Vacant storage space is a dead loss, but nearly every storeroom has some when stocks are at the minimum point. Considerable improvement has been effected by the flexibility of the equipment which LOCATION, EQUIPMENT OF STOREROOM 53 is now obtainable. A description of this will be taken up later in this chapter. The reverse of excessive space is a too limited area. This means congestion and is perhaps worse from an economic viewpoint. It frequently means handling goods more often than should be the case, entailing not only extra expense but liability to damage, errors in counting and check- ing, loss of time in making deliveries, etc. Figure No. 10 Showing method of lettering and numbering aisles. Equipment Nothing is more conducive to economical and effi- cient storage than proper equipment. This is fixed and movable in character and some types of each kind will be dealt with in detail. It would be mani- festly impossible to cover everything required for stor- ing all kinds of material; the discussion, therefore, will be confined to such equipment as is needed for a general line of supplies and raw material. Generally speaking, too little attention is paid to 54 STORING the proper housing and arrangement of stores. In the majority of industrial plants large sums are constantly being expended in developing and perfecting machinery and tools for obtaining quicker and better results in the shop. Some establishments will be prodigal in this respect, but a niggardly policy will prevail in stores equipment resulting in loosely kept and poorly arranged stores. Damage, deterioration, and disorder follow, while the untidy appearance causes slackness and low efficiency. Figure No. 11 Illustrates the arrangement of various sizes of compartments from the same size units. The first assembly is arranged with fronts for bins, while the second shows plain shelves fitted with tote boxes. Bins and Shelving Practically every storeroom needs some kind of racks, bins, and shelving. These are just as essential as correspondence files in an office. It would not be deemed possible to operate a bank without proper receptacles for the different forms of money, or to run an office without a system for taking care of its LOCATION, EQUIPMENT OF STOREROOM 55 records, so that they are quickly available for refer- ence. Without these, banks and offices would be working in confusion. Yet, frequently unnoticed, many storerooms are working in confusion, because of lack of the right equipment. It has been empha- sized that everything in storage is wealth, and every storekeeper should consider his stock in the same manner as he would if it consisted of pen- nies, nickels, and dimes. If the value of every foot of stor- age space were de- termined on the lines laid down in Chapter Two, the great advantage of flexible steel equip- ment would be ap- parent. With this it is possible to do almost anything in the way of extend- ing or contracting the receptacles formed by them. If, for instance, several sizes of rivets are being carried and it is desired to discontinue one size or add one, either change can be made without disturbing the proper sequence of sizes and usually without much disturbance to the existing stock. Steel equipment can be had in many forms, and a Figure No. 12 An excellent type of bin extending full height of room if necessary, with lower part arranged for larger and heavier goods. 56 STORING description of some of them will be given. The reader is referred to the illustrations shown through- out this chapter for further details and for the pur- poses for which they are used. In some stores it may be necessary to use lockers for small and valuable Figure No. 13 Showing assemblies of a lower type arranged so as not to obstruct the light. articles and in some instances special construction of bins may be required, but as a rule most of the material kept in bins or racks can be stored in one of three types. These are known as the closed type, open type, or rack type of receptacle. Any of these types can be secured in the unit system LOCATION, EQUIPMENT OF STOREROOM 57 of construction, which permits of great flexibility. That is, the unit can be extended or contracted at will, within the limits of the adjustment spaces. These are arranged every three inches vertically and ap- proximately every six inches horizontally. The par- titions or dividers provide for the greatest economy Figure No. 14 Showing wide aisle to permit drawing long articles from bins and also the passage of large trucks. of available storage space. It is computed that the use of these effects a saving in storage space of 30 per cent over the ordinary type of wooden bins and shelving. Further advantages are secured by the simplicity of construction, which makes erection so easy that any handy man, with only a screw driver, 58 STORING can assemble and erect them, or make such changes as may be desired or caused by variations in stock. There are many other advantageous points, and one which may be mentioned is the additional protection from fire over the wooden construction. Even if the building itself is of fire-proof construction and is equipped with wooden bins and shelving, the risk is much greater than if these were steel. The Closed Type of Bins This type is made up in the following manner. The flat steel backs extend the full height and full length of as- semblies. These backs act as divid- ing walls when it is a double-face as- sembly. The up- rights are attached to the backs at right angles with stove bolts. There are flanges on the uprights punched with holes to correspond with holes in the backs, so all that is necessary is to insert and tighten up the bolts. Both the uprights and backs are punched for the attachment of shelving. The shelving is then connected with the uprights and backs with stove Figure No. 15 An illustration of the flexibility in arranging the sizes of bins. These are much larger than others shown to take care of castings. LOCATION, EQUIPMENT OF STOREROOM 59 Figure No. 16 Showing details of construction of closed type of bins. 60 STORING bolts. This method of construction distributes the load on the shelves between the uprights and the back. After erection, as described in the last paragraph, we have shelving inclosed on three sides and spaced practically any distance apart within a range of three inches. These shelves can be promptly converted into bins by simply attaching a bin front in connection with the front face of the shelves. This ar- rangement permits part of an assembly to be used as bins while part can re- main as shelves. It will be observed from the description given that this form of construction provides absolute rigidity, as the bin fronts and shelves are bolted to the frames, but at Figure No. 17 These are plain shelves; if the back was omitted, the assembly would be what is known as "open shelving." Note the weights which can be carried. the same time does not prevent shelves being con- verted into bins, or bins into shelves. Neither does it prevent the spacing adjustment of shelves and dividers that may be necessary to accommodate the receptacles to the changes in bulk of the contents. Open Shelving The term "open shelving" is used to designate the type of construction which has no backs to the shelves, LOCATION, EQUIPMENT OF STOREROOM 61 enabling the helpers to take material from either side of the assembly. The shelf is formed from one piece of sheet steel with edges turned on all four sides. The front face of each shelf is attached to the upright with four bolts. Figure No. 18 When fronts are attached to the shelves they are converted into bins. This assembly is carrying more than 15,000 pounds. The two shelves with- out fronts are carrying 200 pounds per square foot. This method of fastening provides for any lateral thrust, as it acts as a knee brace. Each shelf being attached in this way makes the entire assembly abso- lutely rigid. The uprights are formed from one piece of sheet steel, having the front face punched with 62 STORING holes, permitting a three-inch range of adjustment. Both faces of the shelves are alike, and the system of fastening these to the uprights and the design of the assembly makes it self-anchoring. Figure No An excellent type of closed rack which can be used for drill rods and similar material of uniform length. Reference to the illustrations will demonstrate that the open shelving consists simply of shelves and uprights, but these shelves can be converted into bins in the same manner as the closed type by simply attaching the bin fronts. The unit principle is ad- LOCATION, EQUIPMENT OF STOREROOM 63 hered to and these units can be made to bear a proper proportion to the class of goods being stored. Racks Many kinds of material can be stored to better advantage in racks, avoiding the use of solid dividers or uprights. There is no limit to the depth of the racks, and they can be used for babbitt metal, drill rods, moldings, lum- ber, sheet metal, tubes, etc. The construction of these racks con- sists of steel tee uprights with shelves having specially formed edges, which are attached to the uprights in such a manner as to make the assembled rack self-anchoring formation of the Figure No. 20 New Britain Stock Rack. Rack for storing bars, rods and tubes. Very T'Vip heavy loads can be placed on these racks and the material is very accessible. edge of the shelves and the manner of their attach- ment to the uprights forms a knee brace and provides for any lateral thrust. Each shelf has four of these knee braces, and this renders the assembly, when com- pletely erected, absolutely rigid. With all of the types of closed and open shelving and racks already described, slotted holes are pro- vided for attaching card holders. Another type of rack suitable for heavy loading is illustrated in Figure 20. This is designed for the economical and convenient storing of heavy bars and 64 STORING rods. The unit idea is carried out in its construction. This permits of the rack being easily and completely knocked down and reerected in another location, with the minimum amount of work. It also enables the rack to be expanded or contracted to meet practically any requirements. The rack shown in the illustrations is arranged so that changes in height can be made in multiples of ten inches and the posts are spaced 47 inches apart. These dimensions can be in- creased or decreased almost at will to accommodate material from 12 to 30 feet long. It is well to have an over- hang, as it distributes the load uniformly and facilitates loading and unloading the rack. If enough spaces are provided there need not be any undue mixing of sizes, which eliminates handling in getting at the desired size. One big advantage gained in using this type of rack is that Figure No. 21 the bars can be taken from the front. The construe- j n ther styles if long bars are drawn tion of this rack is similar to that from the ends a very large amount of shown in Figure floQr j requ i re d. 20 but is arranged _ r _ ri for placing against It is impossible to overload racks of *Zl l L f^l this construction. The hooks and ten- c C O II O III .1 / 1 1 1 li, space. sion bolts are of steel, which will with- stand the combined bending and tensile stresses. Cast iron distance pieces sustain the compression due to load. The hooks are made with a roll up on the end to prevent the load spilling off. The hooks are graduated in length, long at the bottom and short at LOCATION, EQUIPMENT OF STOREROOM 65 the top; this effects a saving in space, as only narrow runways are necessary. There is the advantage also of being able to lift the bars out with a hoist. The base being wider than the spread of the longest hooks, no condition of unequal loading can render these racks unstable. This type of rack can be arranged for erection against a wall, as shown in Figure 21. Where floor space is limited, this is particularly valuable. It will be noticed that pans can be used at the bottom of the racks for storing short pieces. Utilizing all Available Space There are many storerooms where it has been found desirable to keep the height of the shelving low on account of the nature of the ma- terial, or because of the construc- tion of the building. But there is no objection in some instances to the shelving being carried up to the full height of the room. Larger quantities can be stored in a given area if this is done, but provision must be made for getting at the upper shelves. Many improvements have been made in ladders for this purpose, making it much easier to utilize spaces hitherto considered inaccessible, or so difficult of access that it was not considered worth while to attempt to use them. Ladders made for operation through the center of the aisles are particularly useful. They have a double Figure No. 22 New Britain Revolving Rack. A revolving type of rack for storing small articles. These can be made in a variety of sizes and with a large or small number of compartments. 66 STORING overhead track, which eliminates any possibility of the ladder tipping when heavy loads are lifted from the shelves on either side. The flexibility of the connections and the self-adjusting top fixtures have several excellent features. They permit the weight of the ladder and the load on it to be carried by the floor, and not by the ladder connections. They also prevent the ladder bending on the track should the floor be uneven. Another desirable feature is that the ladder can easily be raised clear of obstructions in the alleyways and trucks can readily be moved under them. CHAPTER VI Appliances for Use in the Storeroom Movable Equipment THE preceding chapter covered a few of the prin- cipal needs of a storeroom in the way of fixed equipment. It is now proposed to call attention to some appliances which are essential to the proper operation of every storeroom. It would be mani- festly impossible to cover every appliance on the market, but at the same time no discussion of stores problems could be considered complete without refer- ence being made to some of them. The main object in doing this is to emphasize the necessity of modern equipment for the storeroom. Accuracy in counting, weighing, and measuring is just as essential in a storeroom as accurate book- keeping is in an office. Goods should be moved with expedition and without lost motion. To secure this one must have the right tools and appliances. The storeroom requirements in this respect are apt to be overlooked in many establishments, particularly in some manufacturing plants. A vast amount of endeavor is devoted to the re- duction of costs in production work. Large amounts are expended in the perfection and improvement of tools, and much has been done in the study of motions to achieve this result. In some of the instances where this has been done the efforts have been confined ex- 68 STORING n S 3 a O 3 O t3 o fl CJ C3 rrl a o +-> a; -! o crt S cl PI APPLIANCES FOR USE IN STOREROOM 69 elusively, or almost so, to the shop. Now the cost of a manufactured product commences with the purchase and storing of the raw materials, tools, and supplies necessary for such product. To keep the cost at the lowest point it is essential that equal attention should be paid to storeroom appliances to insure freedom Figure No. 24 Counting machine of the counter type. Will accu- rately count pieces of quarter ounce or over. and facility in handling the goods. If it is considered desirable to get the maximum output from a machine tool in the minimum time, then it is equally desirable to keep at the lowest point the cost of taking the raw material up to the machine and away from it. In the common routine of every storeroom counting, weighing, and trucking are operations which go on 70 STORING unceasingly, and some of the appliances for doing this work are brought to the reader's notice. Counting Machines Counting machines give an accurate and quick count of any commodity, consisting of similar parts or pieces, without the use of tabulated figures of weights, mental calculation, or figuring of any kind. The total count of the con- tents of any box, barrel, bag, truck, or barrow contain- ing an unknown number of like parts or pieces can be de- termined accurately and almost instantly. There is no chance for confusion of fig- ures, errors in esti- mates, or defective calculation, as the ace uracy of the count is governed mechanically. Mental fallibility is elimi- nated, and from fifty to ninety per cent of time and labor is saved over every other known method of device employed for the purpose of counting. The method is one of ratio weight, scientifically applied in a simple machine of few parts, which any ordinary laborer can operate and understand. Figure No. 25 Counting machine of the portable floor type. Will accurately count pieces weighing one ounce and over. APPLIANCES FOR USE IN STOREROOM 71 While knowledge of the weight of the material handled is at no time a feature in obtaining count, yet, whenever it is so desired, weight and count may be secured at practically one operation. These machines are indispensable when taking inventory, and a complete description of the manner in which they are operated will be given in the chapter on manual and clerical work. The counting bars on the machine can be graduated to meet any requirements. For example, the counting can be done by the dozen, gross or hundred. Weighing Machines and Scales If it is considered necessary to exercise care and judgment in select- ing tools for the shop, then it is just as essential to use equal discrimina- tion in selecting the best apparatus for weighing storeroom material. The me- chanical construction and capacity should be suitable for the work they have to do. Scale manufacturers have developed their product to a point where they can supply the needs of any storeroom, no matter how exacting its requirements may be. When purchasing new scales and weighing machines the storekeeper should carefully investigate the ma- Figure No. 26 Counting machine of the dormant type. These can be made for almost any capacity. 72 STORING chines which appear to meet his needs. The me- chanical construction and reliability under service conditions should be tested. Too little attention has been paid to securing proper weighing apparatus for storerooms. It is a common practice to make out a requisition for a balance scale, platform scale, fixed or portable as may be desired, and then let the pur- chasing agent buy the cheapest arti- cle which will meet this crude speci- fication. It is not always the purchasing agent who is re- sponsible for ob- taining suitable articles. For storeroom use the man who has charge of the ma- terial and is re- sponsible for every ounce going in or out should be in a position to determine what is best for his needs and have a deciding voice in the selection. The production department of a manufacturing plant is also interested in the question of accurate weighing and counting. Any recording instrument is liable to get out of order; it is important, therefore,, that periodical Figure No. 27 Counting machine of portable type for method of operation. See Chapter VII. APPLIANCES FOR USE IN STOREROOM 73 inspection and testing of all weighing machines should be provided for. This can be arranged with the manufacturers and will insure accuracy at all times. As an illustration of this the author had reported to him three consecutive shipments of copper from a large supply house all of which were short in weight. It was found on investigation that the supply house had not had its scales tested for a long period. They Figure No. 28 Weighing machine of the dormant type. discovered, on examination, that some registered over- weight and others short weight. It is equally essential to have correct weights in a factory. This is particularly important when small parts are being made. For example, if a storekeeper receives a requisition from the shop for 200 pounds of brass tubing and his scales are wrong to the extent of one per cent, either plus or minus, there will be a very radical discrepancy shown at the end of a year 74 STORING if similar requisitions come in frequently. This will affect not only the storeroom, but the cost department will be at fault, for the number of finished pieces Figure No. 29 Weighing scale with dial, showing the tabulation of weights on an adding machine. obtained from the material taken from the stores would be greater or less than if the quantity was exactly 200 pounds. APPLIANCES FOR USE IN STOREROOM 75 76 STORING Inaccurate weighing is inexcusable, because nothing has been gained except perhaps an approximation of the weight. But this cannot be tolerated if it is desired to keep correct records, and correct rec- ords are a fundamental condition in manufac- turing efficiency. A supply house with inaccurate weighing apparatus is either robbing itself or its customers. The only remedy is regular and frequent testing. Waiting for some flagrant fault before resorting to inspection and testing is the worst kind of carelessness. This truck is equipped with automobile steering gear and knuckles, making a right-angle turn possible without any part of the mechanism projecting beyond the platform, and at the same time maintaining a four-point contact with the floor, keeping the load absolutely steady. Trucks The problem of handling material in a storeroom should have just as much attention paid to it as is given to the manipulation of the same material in the shop. When a manufacturer is shown a new tool by which he can turn out a given amount of finished pieces at a saving of 20 per cent, he lends a ready ear to listen, but when he is shown a storeroom appliance which will effect savings and expedite the movement of the goods he too often gives it only casual attention. APPLIANCES FOR USE IN STOREROOM 77 There are many types, styles, and sizes of trucks made, all of which have their specific uses, but the elevating or lifting truck could with profit be substi- tuted in the majority of cases where the old style of fixed platform truck is still in use. This was practi- cally the only known means of transporting certain materials on the floor until the new type became better known. The separation of the running gear from the platform has revolutionized transportation in stores. An examination of the illustrations given in this chapter will demonstrate their wide adaptability. They can be obtained to carry any loads likely to be handled in the average storeroom and they can be arranged so that the platforms have sufficient clear- ance for unevenness in floor conditions, and they are good for any grades which can be negotiated with an ordinary truck. Some of the advantages of the elevating or lifting truck will be enumerated. One running gear can have any number of flat platforms or boxes as its accom- paniment. This means that while one load is being transported to its location in the storeroom another load is being placed on a platform at the receiving end. The truck does not have to wait at either end of its journey to be loaded or unloaded. All that is necessary is to run the truck under the platform and haul it to its destination. This greatly reduces the amount of labor required by the old trucking system which necessitated a wait at both ends of the trip or dumping the material on the floor. The platforms being simple and inexpensive, they can, if so desired, have the material remain on them 78 STORING Figure No. 32 Method of handling packages and material with the old-style truck. /- r- , . — i Figure No. 33 The elevating or lifting truck will move the packages shown here without re-handling, and the truck is not delayed at the commencement or end of its journey. APPLIANCES FOR USE IN STOREROOM 79 Figure No. 34 The upper illustration shows the truck with- out platform. The lower one shows clearly how the platform fits over frame. The main feature of this truck is the ratchet lever for raising the load, therefore requiring a minimum amount of operating space. It is also furnished with a detachable coupler for connecting truck to a tractor. Figure No. 35 Columbus Lift Truck. 80 STORING APPLIANCES FOR USE IN STOREROOM 81 while in the storeroom. For example, if forgings are being received which will ultimately go into the shop in lots of 100, they can be loaded on the platforms in this quantity when received and the platforms stacked in the store- room. When the shop sends a requisi- tion to the storeroom the forgings can be delivered immedi- ately, and without the labor of loading, by running a truck under one of the platforms. This much on principle boxes are fact, tote the is same as tote used ; in boxes or stacking barrels can be used instead of platforms. The labor item in storerooms is further reduced, because „ , T _ ' . . Figure No. 37 Wlien tne material IS Anything which can be stacked can be carried to be Unloaded and on ^ le Pl a tf° rms an d deposited without re- . handling. placed in bins or on shelves, it can be done at any time to suit conditions. The platforms can be run alongside the bins when material is received and put in the receptacles at any convenient time. Another point worth mentioning is that when it is 82 STORING found necessary to stack the loaded platforms in two or three tiers, and it is desired to get at the rear tier, it can be easily done by running the lift truck under the front tiers, pulling them out, and the rearmost tier is then accessible. Figure No. 38 Tote boxes, stacking barrels, and other forms of containers can be moved easily and rapidly. A summary of the principal advantages over the fixed platform type of trucks would include: 1. The investment in trucking equipment would be much lower. 2. Much time is saved because of the elimination of some loading and unloading. APPLIANCES FOR USE IN STOREROOM 83 84 STORING O ,05 ^ 53 H 05 P O M W APPLIANCES FOR USE IN STOREROOM 85 86 STORING APPLIANCES FOR USE IN STOREROOM 87 CO -*H -* .2 s -is P g STORING APPLIANCES FOR USE IN STOREROOM 89 3. There would be a very appreciable reduction in the labor item. 4. A great saving in floor space would be effected, because the platforms can be stacked. 5. The elimination of some handling would reduce the risk of loss by damage. 6. The trucking system would be more expeditious and flexible. When required for very heavy duty the load can be lowered gradually and effectively by a hydraulic check. Electric drive can be substituted for manual operation, if the storeroom is a large one or consider- able distances have to be covered. The head and front wheels make a complete cycle turn, enabling the truck to operate in its own length in narrow aisles. A further development in elevating trucks is in con- nection with simultaneous weighing and transporting. The trucks are equipped with scales from which can be ascertained the gross, net, and tare weights. With these trucks a special set of side bars carry the load to prevent any strain on the scale mechanism. Gravity Conveyors It does not come within the scope of this work to discuss all the various methods of moving materials. Elevators, lowerators, carrying devices, and conveyors which depend on some form of power for their oper- ation, it is not proposed to discuss, although they may be necessary in many storerooms. The gravity con- veyor, however, cannot be passed over, as it is a nec- essary part of the equipment of many storerooms, or at least is often the link between the receiving room and storeroom, or the storeroom and the shop when 90 STORING they are on different levels and the force of gravity can be used. An investment in this form of con- veyor is very moderate, and after installation the cost of operation is negligible, for it is confined to the renewal of a few parts, as may be required. The Figure No. 45 This illustration shows how the gravity conveyor can be adapted to curves and other unusual conditions. force of gravity costs nothing, and it is ready for work every day for the full twenty-four hours. It is usually advisable to have the storeroom in close proximity to the point at which the goods are received into an establishment. Hand-trucking may not prove the best means of transporting material APPLIANCES FOR USE IN STOREROOM 91 o « 92 STORING APPLIANCES FOR USE IN STOREROOM 93 between these two points, and it becomes necessary to use self-propelled trucks or some kind of conveyor. Figure No. 48 A straight run to the storeroom. The capacity is only limited by the grade of the conveyor and the loading and unloading facilities. The gravity roller conveyor will carry all kinds of material or packages having one flat hard surface. These articles are conveyed by their own weight, provided there is a grade of four per cent. Even if the 94 STORING . O O m ^ > 6 APPLIANCES FOR USE IN STOREROOM 95 grade necessary to put the force of gravity in motion does not exist, it can be secured by elevating the mate- rial at the starting point. It may prove more economi- cal to do this than to resort to a power conveyor or trucking. If the material has to be placed on trucks anyway at the end of its journey on the conveyor, it may be better to truck it the whole distance. Some storerooms located in basements can best receive material and goods via a gravity chute, while a storeroom intended to serve several departments of an establishment could well be located at a suffi- cient height to feed raw material to all of them by means of gravity conveyors. One of the greatest advantages of the gravity roller conveyors is its flexibility by means of curves, switches, chutes, elevators, and other appliances; the conveyors can be run around corners, through partitions and floors, and may be laid out practically where desired. Conveyors depending entirely upon gravity naturally have their limitations, but engineers and managers of industrial plants have devoted con- siderable attention to harnessing the force of gravity to solve their problems, with very excellent results. Mechanical Aids It is not so long ago that physical prowess was considered essential for men engaged in handling and storing material, but physical strength in the human being has been largely equalized because of the many mechanical appliances and aids for doing the work. These should be taken advantage of wherever their use will serve a good purpose. It is still possible to see three or four men struggling with barrels, bags, 96 STORING and cases filled with heavy materials, when perhaps seventy per cent of the labor could be saved by the use of hoists, barrel stackers, or sack stackers. The utilization of these contrivances gives employees the opportunity to devote their mentality to still further improvements. Intensive, strenuous, monotonous work dulls thinking and hinders advancement. CHAPTER VII Manual Operations Dual Nature of Storeroom Work IN the operation of a storeroom there is both manual and clerical work to perform. It is in respect to this dual nature of its functions that the storeroom differs from other departments of a business. Both sections of the work must be on the same equality of accuracy and efficiency. Accuracy in one of these and inaccuracy in the other would only lead to con- fusion. A helper might hand out 50 bolts, but through inadvertance the number might get entered on the clerical records as 60. Again, a requisition for 100 pounds of copper might pass through the clerical records correctly, but through a mistake in weighing 110 pounds might be delivered. Every storeroom transaction is susceptible to these delinquencies, and it is only by accuracy in both the manual and clerical work that a physical inventory will tally with the written records. Storeroom clerical records can be simple yet com- plete, and this fact, together with the general demand which exists for bookkeeping accuracy, has placed this section of the work in advance of the manual work, so far as the percentage of errors is concerned. But there is no good reason for this, and the demand for better methods in the physical handling of the 98 STORING stores has developed appliances for counting, weigh- ing, and measuring which are having considerable influence in the right direction. General Considerations Prompt handling of all material as it arrives in the storeroom is an essential feature of successful stores- keeping. It is a phase of the work which needs close watching, because there is always a tendency, particu- larly during busy hours, to get the goods into the room and then allow them to lie around on the floor waiting for a more favorable time to place them in the bins and receptacles. Such methods as these involve the risk of damage to the property, makes the storeroom untidy in appearance, and is prolific of irregularities in deliveries. When a requisition is received it is a natural thing in making the delivery to take the goods from the nearest or most accessible place, which may be a pile which has been dumped at some convenient location. With some material this may not be important, but there are instances where the older material should be given out first. Anyway it is good practice to make it a rule to deliver all material in the sequence in which it was received, giving priority in delivery to the ma- terial which has been longest in the storeroom. Every storeroom probably contains some articles which are seldom called for, while others are in con- stant demand. The latter should be placed in con- venient locations to facilitate their delivery. Heavy material should be stored at a convenient height for loading onto trucks to prevent any unnecessary labor in raising or lowering it. MANUAL OPERATIONS 99 Great care must be exercised in placing articles in their designated places. It is just as bad to dump some quarter-inch nuts in a bin containing five-six- teenths-inch nuts as it is to make an entry in the sales ledger against the wrong customer. It is prob- ably worse, for it is likely to lead to more confusion. The mixing of the wrong sizes, or of the same sizes of different grades, is perhaps the most prevalent fault in storeroom practice. Next to the mixing of sizes and grades the com- monest fault is having more than one shelf or bin for the same article. If all storerooms were equipped with adjustable racks, bins, and shelving, as described in Chapter Five, there would be no occasion for this, because the receptacles can be expanded or contracted at will to correspond to the increase or decrease in the quantity of goods on hand. With the old-style wooden bins or metal bins of the inflexible type it is impossible to provide for an increase in the quantity of material being stored, except by placing it in more than one receptacle, and there are many objections to such a course. If more than one bin or location is assigned to an article, the man delivering the material is apt to overlook the second bin. The regular bin being empty, he fails to remember that there is more of the same article in another bin. The use of more than one location tends towards the accumulation of shelf-worn or old stock, because the nearest receptacle will invariably be approached first and the more remote one be neglected. Duplication of this character only leads to more errors, because it gives the helpers more things to remember. 100 STORING Counting Even when goods are weighed or measured they invariably have to be counted. For example, 20 barrels of material may be received. The material Figure No. 50 Automatic counting of small parts. Whatever the number is in the pan on the platform it will be accu- rately recorded. is checked by weight, but the number of barrels has to be counted. This is an extreme illustration, the antithesis of which would be 20 barrels of very small articles which must be counted. The first instance MANUAL OPERATIONS 101 is a simple mental count, but the latter could not be done accurately except with the aid of some me- chanical contrivance. Counting is the biggest prob- lem in receiving and delivering articles from stores and deserves some discussion. It must first be recognized that the masses of things in a storeroom come in like units or in units which vary so slightly in weight and size that the variations can be neutralized on a bulk machine count. Con- sequently the great problem is one of counting with the least expenditure of time and labor. The counting methods now in use can be logically divided into five separate systems as follows: 1. Hand Counting. 2. Weighing and Estimating. 3. Even-balance Scale. 4. Proportional Scale. 5. The Automatic Counting Machine. The importance of the subject demands a short review of each of these methods. Hand Counting The usual method of operation is to make a mark with a pencil as the hand-counter finishes a hun- dred. In hand counting, therefore, there are three dis- tinctly different operations: the hand operation, the mind operation, and the pencil operation. To keep this up long enough to count any large quantity creates unusual mind strain, and errors are often made. It is evident that if a person counts 1000 small pieces by fives, 200 separate operations have been performed, both mental and physical. If the pieces are large, 102 STORING so that only two at a time can be counted, then it means 500 similar mental and physical operations. When counting in this manner a person may have his attention diverted from the task by some form of interruption and is liable to forget whether he has made the pencil notation, or may have to recount. Modern business methods do not tolerate uncer- tainties of this nature. Cost keeping in a manu- facturing establishment would be "all at sea" if 1100 parts were handed out of the stores to the pro- duction department, instead of 1000, and the stores records would be in confusion. A valuable aid to hand counting is the mechanical counter. By using this the worker has only to perform the physical operation. These counters can be used to great advantage when it is necessary to handle each piece for the purpose of inspection or examina- tion. In making the movement necessary to examine the article the hand or arm of the worker comes in contact with a knob or lever on the counter and the record is automatically made. Counting by Weight and Estimate In any modern establishment it is evident that hand counting could not be tolerated, because of the expendi- ture of time and labor, and because of the uncertain- ties of the final results. To save time and labor the weighing and estimating method is used. This repre- sents the first step between hand counting and the use of a machine made especially for the purpose. Any ordinary weighing scale can be used in work- ing with the weighing and estimating method. The weight is first obtained of a given number of the MANUAL OPERATIONS 103 articles to be counted, preferably an even number for the sake of rapid calculation. For example, if 100 articles weigh six pounds then sixty pounds of the same article would represent a total 1000 pieces. Figure No. 51 However small or large the pieces are they can be accurately counted in any kind of container. This method has the advantage of greater speed and fewer operations over hand counting, but it is still susceptible to inaccuracies from mental computation. The ordinary scale is not always accurate, and any 104 STORING error in weighing the smaller quantity would be in- tensified in making the computation for the larger quantity. Very few weighing scales of any con- siderable capacity can be compared with mechanical counting machines as to sensitiveness. And the de- gree of sensitiveness is the chief factor in determining the efficiency of a machine used for counting by bal- ance. The least hesitation of one of these devices in responding when the burden on the platform is increased or decreased is a flaw on the accuracy of the machine. Exceedingly quick response to what is technically termed " sensitive break" is absolutely necessary to accuracy. Even-balance Counting Like the weighing and estimating method this is an attempt to improve on hand counting by some mechanical device. It commences by deciding on some number as a base. For instance, if 50 is the base number these are counted by hand and placed on the tray on one side of the scale. A quantity is then placed on the opposite tray or receptacle until an even balance is struck. The two together should then total 100 pieces and these being placed on one tray can be balanced by a like quantity, giving a total of 200 pieces. This process can be continued indefinitely until the quantity remaining is too small to create a balance. Hand counting must again be resorted to to complete the count. This method, while quicker than hand counting, has many of the drawbacks of the weighing and estimating method, with the added defect of a final hand count. MANUAL OPERATIONS 105 Counting with Proportional Scales Proportional scales are arranged to work according to certain set, even ratios. These ratios usually Figure No. 52 The work of counting can be done by boys or girls. There are no mental calculations to make. Weights can be taken on all machines shown in Chapters VI and VII. range from 10 to 1 up to 200 to 1. A scoop hangs from the end of the scale beam, serving as the counter- poise. With a ratio of 10 to 1, one hundred small pieces in the counterpoise scoop will balance 1000 similar pieces on the platform. 106 STORING MANUAL OPERATIONS 107 To count the contents of unknown bulk lots with this scale, the material to be counted is put on the platform, while enough pieces are put in the counter- poise scoop to bring the beam to a "low balance." Then a single piece is removed from the scoop, giving a "high balance." Next, enough pieces are taken Figure No. 54 The Root Counter. This counter is arranged so that the girl's arm presses the lever each time a sheet is taken from the pile. In this way counting and inspecting are done simultaneously. from the platform to make a perfect balance. The total of the pieces removed from the platform is added to the total of pieces on the platform, which total has been determined by multiplying the ratio of the machine by the number of pieces in the counter- poise scoop. 108 STORING To count out a specified number of pieces with the proportional scale a number of pieces are placed in the counterpoise, in number equal to 1/10, 1/50, or 1/200 of the total quantity to be counted, the proportion depending, of course, upon the set ratio capacity of the scale in use. The platform is then burdened with a load of pieces sufficient to bring the beam to the perfect balance point. Without further adjustment of beam or counterpoise scoop, it is then possible to count out as many lots as de- sired by simply repeating the process of loading the platform to the balancing point. These scales can also be used for the pur- pose of weighing material as well as for counting. Automatic Counting Ma- chines The counting machine, Figure No. 55 which retains the form of Stacking barrels can be used to great a Scale, has reduced the advantage in many storerooms. They nrnppqq n f rnp^haniofll can be had in sizes suitable for storing PrOCeSS OI mecnanicai the number of articles usually called for counting to the point y * e 8 op ' where, with the exception of the comparatively small hand count necessary to pro- vide the ratio number necessary to operate, all mental computations have been eliminated. The results are secured almost automatically and the total counts are indicated in plain figures on graduated counting MANUAL OPERATIONS 109 bars which are attached to the beam. These machines have the usual small scoop to take the ratio count of pieces, but this scoop or ratio pan slides along the counting bar, instead of resting in fixed position on the counterpoise. To obtain the count of an unknown quantity of pieces with the counting machine, the tare of the package or contents is set out on one of the weighing beams, of which there are usually two. From the contents of the package the number of pieces required for the ratio pan are taken out; the number re- quired for this purpose is indicated on the counting bar. The ratio is then moved along the counting bar until the beam is in balance. A pointer . T . . . ,. . , Figure No. 56 indicator immediately Stacking tote Ws made by The New above the ratio pan Britain Machine Co. These have been x11 , ,i referred to in Chapter VI. then denotes on the counting bar the exact number of pieces resting on the platform. Where it is desired to count in certain specified lots, say 144, the tare of the package is set out as above indicated, the pointer indicator is set against the 144 mark on the beam, and the package is then loaded until the beam balances. These counting machines are made to cover practi- 110 STORING MANUAL OPERATIONS 111 cally any known requirements in the way of counting. They range from delicate machines, which will record the count of pieces so small that it takes 25,000 to equal an ounce, to the heavy dormant type of machine which will count pieces weighing a ton. Having such machines available it is conservation of time and energy to employ them. There is cer- tainly no room for comparison as to speed, simplicity, or automatic accuracy between the results obtained with these machines and from any of the more anti- quated methods. Why should we have adding machines and similar devices in the office, and no me- chanical counting de- ,-, , Figure No. 58 vices in tne store- „ . , , ., .. . „,, , Tote boxes of the nesting type, lhe tea- rOOm Or factory? ture of these which commends their use is J?anh ia vn a++^™r»T that when empty hundreds of them can be i^acn is an a-iienipi nested and stacked in a very small space at the solution of the problem of obtaining a maximum saving of time and of mental and physical energy by some automatic mechanical means. Summary Complete accuracy in the manual operations of a storeroom would be exceedingly difficult to maintain without cleanliness, orderly arrangement of the stock, 112 STORING and general tidiness. These must be enforced. With these conditions, coupled with efficient mechanical devices, well-arranged bins, shelves, and other re- ceptacles, and finally with alert, capable, and willing helpers there will not be much go wrong with store- room operations. CHAPTER VIII Clerical Work. — Inventories The Stores Records THERE is nothing complicated or intricate in connection with stores bookkeeping and clerical work, but it must be accurate. This last statement is, perhaps, true of all bookkeeping, but it applies with unusual force in connection with stores records, because an error in them can sometimes only be brought to light and rectified by a physical count of articles in the stores, which might involve consider- able delay and expense. With other forms of book- keeping errors can be discovered and rectified by reference to some allied clerical work. Probably the simplicity of the work has some bear- ing on the inaccuracies which appear, but this is no good reason for their appearance. The more prob- able reason is that too many accountants look upon the work as unimportant, at least that part of the clerical work which has to do simply with recording the quantity of material in stock, while at the same time they will lay greater stress on keeping a stores account which reflects the value of the goods in the storeroom. To the custodian of the property, and in control of its movements in and out of the stores, quantities, sizes, and weights are of greater moment. The purpose of this work being to limit the dis- cussion to storekeeping problems, it is not intended to 114 STORING dip deeply into financial problems and cash values. Such problems come more properly under accounting work, and any digression into these problems would involve cost keeping, which in itself is a subject on which volumes have been and could be written. To compile and maintain the stores records, certain forms and documents are necessary. These will be taken up in detail in a later chapter dealing with the routine work. All stores clerical work is based upon, and revolves around, the perpetual inventory, or stores ledger. This instrument, therefore, will be discussed in detail from different angles. The Stores Ledger The ledger accounts with customers should not be more accurate than the ledger or perpetual inventory, which records quantities received into stores, deliv- ered out of stores, and balances on hand. This should be kept posted so closely that complete detailed in- formation can be obtained from it monthly, weekly, daily, and hourly. The information required from a perpetual inventory is not just what quantities of each article are in the storeroom, but it should tell what quantities are on order, what have been received in any given period, what has been delivered or the rate of consumption, and whether that consumption is uniform all the year around or subject to variations. The record can be extended so that a balance of credits against the stock can be proven with the daily sales, also a balance of the debits against the pur- chases daily, thereby proving the work as well as indicating the exact amount of stock on hand each day, and at the end of a month the actual value of CLERICAL WORK — INVENTORIES 115 each commodity, even in case of fluctuations in prices. These features, however, go beyond strictly storeroom work, and it is not proposed to discuss them. Machine Bookkeeping As the use of the bookkeeping machine is being applied to stock records, its possibilities should not be overlooked. Owing to the absolute control of the work done it eliminates the necessity of some of the higher priced labor which hand methods make indispensable. The work is turned out at far greater speed than can be attained by hand, it is more legible, and part of the higher grade labor can be allocated to other work. By way of illustration in its application to per- petual inventories a ma- chine to handle this class of work in such a way as to show the necessary results must be extremely flexible and simple of operation and it must furnish the required results without attention on the part of the operator beyond printing the proper items in their proper columns. Two cross computa- tions must be made simultaneously, one of quantities and one of values. To the quantity in stock, with its value, must be added the quantity and value of mer- chandise placed in stock, the new total of quantity Figure No. 59 Elliott-Fisher Bookkeeping Machine. Perpetual inventories of the card or loose-leaf type can be written up with a bookkeeping machine. The forms are placed on the flat surface shown under the machine. 116 STORING and value shown in the register being then printed in the balance columns. Likewise, withdrawals of quan- tity and value from stock must be deducted and the balances shown. Simultaneously with these opera- tions a control total of the value of the merchandise put into stock or taken out must be furnished daily, and where required the machine should also furnish totals of quantity placed in or withdrawn from stock. This method of handling the stock ledger gives a per- petual inventory of all classes of goods, as well as an immediately available total of their value, both as units and as a whole. The Physical Inventory Before discussing the clerical inventory from other viewpoints, it is necessary to make some observations regarding physical inventories. It would, perhaps, seem that these could be dispensed with if the clerical inventory were kept perfectly accurate. Many argu- ments have been advanced advocating the abolition of physical inventories, and the matter has been given some publicity in technical publications. It is pro- posed to recapitulate some of these for the better elucidation of the problem. It is claimed that although the clerical records may show the true state of the stock as far as the docu- ments go from which the record is compiled, still it might not represent the true condition of the stock. For instance, suppose a requisition was received for 200 washers, and through a mistake on the part of the helper 300 were delivered, how would such a mistake be discovered except by a physical count? Another instance would be in the event of pilfering CLERICAL WORK — INVENTORIES 117 or theft; this could never be discovered except by making a physical count or examination of the mate- rial and comparing it with the clerical record. In a manufacturing plant it is claimed that for a certain period every year the plant must be closed down for repairs, renewals, and replacements, during which period a physical inventory can be taken and a stores " house cleaning" indulged in, because at such a time most of the help in the stores has to be paid anyway and it costs nothing to make the inventory. It is contended also that the fact being known that a physical inventory will be taken prevents pil- fering, and at the same time is an incentive to ac- curacy on the part of the clerks keeping the clerical records, because they know a check will be made against their work and this prevents carelessness. The stock of some materials, such as coal and sand and anything which is not counted or weighed out in accurate quantities, can only be approximated from the clerical records. To get a correct inventory of these it is imperative that physical particulars be taken. There are, of course, some concerns who keep no perpetual inventory. This omission is, perhaps, more prevalent among small manufacturers than any other class of business men. They probably keep a record of the quantity of material used in production work and duly charge it to the respective shop orders. They take an annual physical inventory to enable them to prepare a balance sheet and ascertain what profit or loss they have made during the year. This is, of course, not in any sense a check on the incom- 118 STORING 6 z o r- Ul z 5 ul CO < a I CO CO - => Q > 111 X Q < h z o a < or ul CO w 1- < CC I a CO 1- co" < > < co 6 z a d ■£ z ul o r- o - CO < O u. Q. z - Id < » cc o - I < a LLl > a < Ul I Ul o ul >< z r 1 lu X 5 t * < s < — i" £ 1- CD ; z z •*• O < ul h Ul 3 a _i -z. 3 CO co i> — 6 z O d _ c > H ZZ ° r- o 6 Ul Z CO h- < 1 < D a D CO £ > o o -1 _l O 6 2 Q Ul u. > < CO < i Ul O ul a W a: >- — CC O u. •■ o 3 a z 6 ■z. < a d z L z o h o Ul o: Ul a cc a O j £ < 00 O z 1- g e < a t o 9 *$ CD 1-3 :H . £2 P £ « rj3 CD CLERICAL WORK — INVENTORIES 119 UJ o z 5 < t Q z Ul < o: 3 Ul > 6 _i d z UJ Z l- Q a UJ UJ X DC CO UJ J- < a c UJ UJ o u. 5 or UJ GO > t Q F UJ \ DC o Ul > a _J o Ul z Q cj z a: I UJ 1- < a t H x" z < 3 s Q a Ul d > z Ul - o UJ > ui ac UJ a. < Z> h o < < Q CO X h l±J > < < X oc — UJ H < _ U- to cq CO Q cc o oc u I ft o I a: o o UJ X h LJ o < _J < CD Q DC O O UJ DC > < b £ 8 « tj O «3 !> 126 STORING bulky nature, where the physical check may be a matter of no great consequence. It can never be said to be entirely negligible. It is probably in con- nection with such storerooms that the contention has been made that physical checking is unnecessary. Still, it is not good practice to dispense with it entirely. There is no insuperable objection to a periodical inventory being taken if the activities of the establish- ment have to be suspended anyhow for some other reason. But to suspend business just to take an in- ventory is seldom necessary and cannot be commended. As these pages are being written the author had an experience of this character with a very large steel concern, which for one week made no deliveries and put many of their customers to great inconvenience. With many manufacturers custom has decreed the an- nual closing down for inventory purposes and they do not seem to be able to break away from it. To pro- duce at a profit is what a manufacturing establish- ment exists for. To suspend this function cannot be considered good policy. Inventory taking can be done when it does not entail a loss of profitable pro- ductivity. Values and Stores Inventories Generally speaking a storekeeper thinks and cal- culates in quantities, not in values. In their larger aspects, and outside of the storeroom physical con- ditions which surround a storekeeper's work, values must be considered. If a storekeeper ponders these his vision projects itself into the purchasing agent's sphere in one direction and into the cost accountant's work in the other direction. There is no objection CLERICAL WORK - INVENTORIES 127 111 u. EE m / > Z3 HI O Z < _] < CQ s 1- < 3 X a < s in CO 3 HI 0£ Ul > _l HI a < h a 1- z < 3 a CO H 0. Ul O o Ul Ul o oc Q- l- ui z 3 2 £ i- < h 3 a Z Q Ul oc Ul a 6 z U 1 - oc O o _l oZ TIC NDAR INITIO 6 z z OQ < <* CJ CO 9 O ^ £ o H J3 :s Pn I 3 Cm 128 STORING to a storekeeper having vision beyond his job, but it is from a desire to confine this discussion strictly to stores problems that so little has been said of values. Some concerns insist on the records of values kept on the same form as the records of quantities, and an illustration is given of such a form in Figure 64. This scheme may be found advisable with some smaller concerns, and is certainly desirable when the account- ing or cost departments do not keep such records. In manufacturing establishments there are two methods of pricing the material delivered from the stores to the shop. The cause for there being more than one method is the fact that there is so often a variation in the price of articles received into the stores. For example, 1000 pounds of copper is re- ceived costing 40 cents per pound; 400 pounds of this is delivered to the shop, leaving a balance in the stores of 600 pounds. At this point 500 pounds more are received at 43 cents per pound. The total quantity in the stores would then be 1100 pounds and the average price would be 41.36 cents per pound. It is a practice with some establishments to average the price immediately there is a change, because it is claimed that it is better to have one price apply on all material of the same kind. This is really making the stock of material in the stores subject to all mar- ket fluctuations. It is, of course, subject to these fluctuations, but for cost-keeping purposes in the factory, fluctuations of this character cannot be con- sidered. This point has been discussed in Chapters Two and Three. Those who adopt this method argue that it is less liable to lead to mistakes, simpli- fies pricing of material, and renders the calculations CLERICAL WORK — INVENTORIES 129 connected with arriving at the value of an inventory much easier. On the other hand, there is much to be said against it. For instance, suppose the sales department made a contract to sell certain articles, the product of the factory, and among other materials in making these articles 1000 pounds of copper was needed. The shop might withdraw 600 pounds to commence the work, but on subsequent withdrawals the price would be raised. This is not fair or reasonable, because the original contract for the sale of the articles was made on the basis of 40 cents per pound for copper and it was procured and delivered into the stores at that price. While it entails a little more clerical work it is good practice to charge out the 1000 pounds at the price paid, even if it was delivered in quantities of 10 or 20 pounds at a time. The theory in all stores- keeping is that the material which has been in the stores the greatest length of time should be delivered first; and this being the case, then it should be charged out at its own price, and not at the price of some later delivery. In many manufacturing operations it is not de- sirable to have the stores show a profit or a loss, which it would do if the average pricing feature was in vogue. The only way to obviate this is to adopt the plan of charging the outgoing material at its incoming price. Of course, the regular percentage must be added to cover stores costs, and this percentage can be figured so closely that over a period of one year the balance one way or other is negligible. CHAPTER IX The Stores Department The Storekeeper THE man in charge of the stores of any establish- ment holds a responsible position. If it is a concern with many branches or factories he usually carries the title of General Storekeeper and would have assistants at each factory or branch. In such cases he may have under his control property worth millions of dollars, and his responsibility is a heavy one. Many concerns do not take this view of a store- keeper's duties, but look upon him as a man who simply has charge of receiving into and delivering out of the stores the material and articles used or needed in the establishment. He is not supposed to have a thinking job, but to have only physical duties. In many cases, even, the clerical work is taken from him and handled in the accounting office. The position of a storekeeper needs better recogni- tion; it needs recognition on a basis somewhat differ- ent from that which is usually accorded it. Sufficient consideration has not been given to the potentialities of the keeper of the stores. He is in complete control of a very large proportion of the wealth of many concerns. If he is not in complete control, it is be- cause of lack of ability and vision on his part, or because he is not appreciated at his full worth, or because he is not given a standing commensurate with that to which he is entitled. From a wide experience THE STORES DEPARTMENT 131 the author's opinion is that a sufficiently high stand- ard is not placed on the position of the storekeeper. Observation will disclose plenty of instances where he is considered as a useful man to place articles in bins and on shelves provided for him, and to hand them out as needed. He is too often regarded as an ampli- fied laborer, rather than as a man big enough to have a keen insight into the affairs of a concern. This fact must be recognized — and there is ample evidence that many executives are beginning to recog- nize it — that storekeeping problems are problems of vital importance in the economics of business; they are of vital and individual importance in every establishment. This being so, then let us put in con- trol of the vast amount of wealth in storage men who have the ability, capacity, keenness, and foresight to solve these problems. Sphere of Usefulness In Chapters Two and Three some points were dis- cussed on storage economics. No concern which car- ries any material in storage for long or short periods can afford to ignore or refuse consideration to storage problems. The man who knows most about his business seldom fails, and the one who knows least is usually the one who does fail. A very large per- centage of business failures are caused by buying too much or too little. The act of buying, however, is often only incidental; the real cause of the failure is frequently through lack of consideration to the after results, — the consequences which follow buying, — and this includes the care of the material while it is in the possession of the buyer, that is, while in storage. 132 STORING An establishment composing many departments may use many varieties of material, and some of the de- partments may not come in contact with material used in other departments, but the storekeeper comes in contact with them all and long practice will give him a broader acquaintance and knowledge of the re- quirements of a concern than any other man. While he may not have such an intimate technical knowl- edge of the material as the man who is actually work- ing it, still he should have some very good information of its general characteristics. In the matter of the supplies used in and around an establishment the storekeeper should have a de- ciding voice. He should be a man who can determine the utility of an article. In some manufacturing plants very large sums are expended annually for such things as soap, cleaning compounds, disinfectants, oils, brooms, etc., and considerable duplication exists which could be avoided by placing the control of them entirely in the hands of one man, instead of permitting the supply of them to be influenced by the likes, dis- likes, and prejudices of each department. Being in an independent position, serving all departments with equal fairness, he is in a position to weigh all the points connected with furnishing supplies with good judgment, and to give a decision fairly and judicially. Relations with other Departments The storeroom exists as a place of safe keeping for the materials needed throughout the establishment. Its resemblance to a bank can be again demonstrated, for it is the place of deposit of the wealth of a con- cern as represented in materials and supplies. It THE STORES DEPARTMENT 133 O O o o MANILA TRANSMISSION ROPE Circum- ference of Rope Inchaa Approximate Weight per Foot Approximate Breaking Largest Working Length Diameter Maximum Diameter of Smallest R.P.M. Inches 4-Strand Strength Tension Splice Feet Sheave for 5000 Pounds Pounds Pounds Inches ft. per mis. X 0.20 4,200 112 7 30 650 Ji 0.26 6,700 153 8 35 550 1 0.34 7,500 200 10 40 475 1% 0.42 8,900 250 10 45 425 IX 0.52 11,700 310 10 50 400 IH 0.65 13,200 380 12 55 . 350 W 0.76 16,700 450 12 60 320 i# 0.87 18,500 530 12 65 290 *X 1.04 23,000 610 12 70 270 2 1.34 30,000 800 14 80 240 Approz. Tens ion Weight Founds 2* 5* 3X 4X i* 5X 6 95 125 175 225 275 325 375 425 550 650 "Weight per foot = 0.34 X Diameter 2 . Breaking Strength = 7500 X Diameter 2 . Maximum Tension taken at 200 X Diameter 3 . Diameter smallest Sheave advised = 40 X Diameter. CONTRACT WITH DATE . , , EXPIRES. AVERAGE MONTHLY CONSUMPTION. ORDERS PLACED Figure No. 65 The data on rope can be obtained from catalogues and on the same sheet a record can be kept of orders placed. 134 STORING exists as a unit in an organization to supply from its de- posits the needs of the other units. The attitude of the other departments will, therefore, be a reflection of the stores department's service to them and to some extent the gauge by which its efficiency will be measured. The storekeeper should be in sympathy with the requirements of other departments, particularly in the matter of supplies, if these are under his control. Having control of these places him in a position where, should his decisions run counter to the desires of other departments, he may be accused of being out of sym- pathy with the legitimate aims and purposes of those departments. For this reason a certain amount of tact and diplomacy must be exercised. Catalogues and Information Every storekeeper should have information about the material and articles under his charge. He should know something about specifications and should be able to define correctly all goods by their recognized commercial definition. Specifications and definitions have already been discussed in Chapter Four. In compiling these definitions the storekeeper will have need of a good line of catalogues. It is not just the fact that catalogues give the trade names of articles, the different sizes in which they are made, and the different grades, but they contain valu- able technical information which forms a liberal education for the men in the storeroom. It must be remembered that technical information in catalogues is frequently written by experts in their particular line, by men whose ideals are the perfection of their product. Such information in catalogues can gener- THE STORES DEPARTMENT 135 O O o o TABLE OP WEIGHTS OF SHEET COPPER " Per Square Foot, and Thickness Per Stub* Gaogre Rolled Copper has specific gravity of 8.90. One cubic foot weighs 558.125 lbs. Special sizes made to order. Stubs wire gauge Thickness in decimal parts of 1 inch Weight per square foot . in ounces Weight of sheet 14x48 in. in pounds Weight of sheet 24x48 in. in pounds Weight of sheet 30x60 in. in pounds Weight of sheet 86x72 in. in pounds Weight of sheet 48x72 in. in pounds 35 33 31 28 27 .00537 .00806 .0107 .0134 .0161 4 6 8 10 12 1.16 1:75 2.33 2.91 3.50 2 3 4 5 6 3.12 4.68 6.25 7.81 9.37 4.50 6.75 9. 11.25 13.50 6 9 12 15 18 26 25 24 22 21 .0188 .0215 .0242 .0269 .0322 14 16 18 20 24 4.08 4.66 5.25 5.83 7. 7 8 9 10 12 10.93 12.50 14.06 15.62 18.75 15.75 18 20.25 22.50 27 21 24 27 30T. 86- 19 18 16 15 14 .0430 .0538 .0645 • .0754 .0860 32 40 48 • 56 64 9.33 11.66 14. 16.33 18.66 16 20 24 28 32 25 31.25 37.50 43.75 50 36 45 54 63 72 48 60 72 84 96 13 ,095 .109 .120 .134 .148 70 81 89 100 110 35 40% 44% 50 55 - 55 63 70 •78 86 79 91 100. 112 124 105 12 11 10 122 134 150 9 165 8 .165 ' .180 . .203 .220 .238 123 134 151 164 177 61 67 75% 82 88% 96 105 118 128 138 138 151 170 184 199 184 7 5 201 227 246 4 266 3 2 1 .259 .284 .300 .340 193 211 223 253 96 105% 111% 126% 151 165 . 174 198 217 238 251 285 289 317 335 380 Approximate Weight of Sheet Copper per Square Foot in Fractional Pasts of an Inch •fein. thick... , 3 lbs. to the square foot % in. thick 6 lbs. to the square foot % in. thick 12- lbs. to the square foot % in. thick 24 lbs. to the square foot 1 in. thick , .46% lbs. to the square foot The area of a circle isequal to the square of the diameter multiplied by 0.7854. The circumference of a circle is equal to. the diameter multiplied by 3.1416. To Ascertain the Weight of Copper — Find the number of cubic inches in the piece, multiply by 0.3214, and the product will be the weight' in pounds. . • Or, multiply the length and breadth (in feet) and that by the pounds per square foot. These weights are theoretically, correct, but variations must be expected in practice. Figure No. 66 Method of recording information on sheet copper. 136 STORING ally be accepted without reservations. But at the same time it must not be forgotten that catalogues are advertising mediums, and advertisements cannot al- ways be taken at their face value. Catalogues, there- fore, which contain general statements praising the articles described must often be considered as rating them above par, although it must be admitted that the modern tendency in catalogues is towards exact- ness in the claims made. However, the catalogues are useful and a good library should be accumulated. The storeroom stands between the shop and the purchasing agent in indus- trial concerns, and there are many times in which the storekeeper is able to help out both departments. A case in point was in connection with some small brass rivets required by the shop for a special job in a hurry. A requisition for 10,000 of these with oval heads 3/32 of an inch in diameter and 5/16 of an inch long was sent to the storeroom. Not being an article usually carried in stock, a requisition was made on the purchasing agent to buy them. After several days' fruitless work the purchasing agent abandoned the search for the article making the statement that such a size could not be obtained from stock and that the exigencies of the production department would not permit of its waiting to have them made. This result was reported back to the storeroom and it came to the attention of the assist- ant storekeeper, who, on referring to catalogues, found that escutcheon pins could be obtained in the size required. On reporting this to the production depart- ment it immediately decided these would answer the purpose and the difficulty was overcome. THE STORES DEPARTMENT 137 €> O o o STAR^ACK SAW BLADES AND MACHINES HACK SAW BLADES FOR HAND USE Fig. H279A These blades are made from the highest grade of steel according to a special formula. They are perfectly toothed with a patent set, scientifically designed and cor- reot as to width, thickness and number of teeth to the inch. Siie Inches fixMx.022 7x%x.022 8x%x.022 9x%x.022 teeth per Inch 14,24 14, 24 14, 24 14, 24 Weight per Gross Pounds 1% 3 3tf 3H Price Gross 7.00 7.50 8.00 9.00 Packed % gross in a pasteboard box. Site Inches lOxJ^x.022 llxKx.022 i 12x^x.025 Il4x^x.030 Teeth per Inch 14, 24 14,24 14,24 14. Weight Gross Pounds P Price per Grow 10.00 11.00 12.00 15,00 HACK SAW BLADES FOR POWER USE Tig. 11279B 12x 5^x.032 14 10 14.40 14x1x049 10 12x Mx.032 14 13 15.00 17xlx.049 10 12x %x,049 10 15% 18.00 17x1x066 10 12x1 x.049 10 25 28.80 24x1x049 10 14x Mx.032 14 14 18.00 24xlx.065 10 14x Jix.049 10 18 21.60 ,. .. Inch Gauge ;;......-. , .032 Packed in Pasteboard Box .' gross J^ 28 31,20 34 36.00 46 39.00 48 50.40 63 54.00 .049 .066 H X CONTRACT WITH DATE. EXPIRES- AVERAGE MONTHLY CONSUMPTION- ORDERS PLACED Figure No. 67 This shows method of recording contract date and consumption. 138 STORING O O o o WEIGHT OP WIRE COPPER, BRASS, IRON AND STEEL Diameters Determined by Brown & Sharps Gauge No. of grange Decimal equiv., inch Weight of wire per 1000 linear feet Wrought iron, pounds Steel, pounds Copper, pounds Brass, pounds 0000 000 00 .46000 .40964 .36480 .32486 560.74 444.68 352.66 279.67 566.03 448.88 355.99 282.30 641.2 508.5 403.3 319.8 605.18 479.91 380.67 301.82 1 2 3 4 5 , .28930 .25763 .22942 .20431 .18194 221.79 175.89 139.48 110.62 87.720 223.89 177.55 140.80 111.66 88.548 253.6 201.1 159.5 126.5 100.3 239.35 189.82 150.52 119.38 94.666 6 7 8 9 10 .16202 .14428 .12849 .11443 .10189 69.565. 55.165 43.751 34.699 27.512 70.221 55.685 44.164 . 35.026 27.772 79.55 63.09 50.03 39.68 31.46 75.075 59.545 47.219 37.437 29.687 11 12 13 14 15 .090742 .080808 .071961 .064084 .057068 21.820 17.304 13.722 10.886 8.631 22.026 . 17.468 13.851 10.989 8.712 24.95 19.79 15.69 12.44 9.869 23.549 18.676 14.809 11.746 9.315 16 17 18 19 20 .050820 .045257 . .040303 .035890 .031961 6.845 5.427 4.304 2.413 2.708 6.909 5.478 4.344 3.445 2.734 7.827 6.207 4.922 3.904 3.096 7.587 ' 5.857 4.645 3.684 2.920 21 22 23 24 25 .028462 .025347 .022571 .020100 .017900 2.147 1.703^ 1.350 1.071 .8491 2.167 1.719 1.363 1.081 .8571 2,455 1.947 1.544 1.224 ■ .9710 2.317 1.838 1,457 1.155 .9163 26" \ 27 28 29 30 . ..01594 .014195 .012641 .011257 .010025 .6734 .5340 .4235 .3358 .2663 .6797 .5391 .4275 .3389 .2688 .7700 .6107 .4843 .3841 .3046 .7267 .5763 .4570 .3624 .2874 31 32 33 34 35 .008928 .007950 . .007080 .006304 .005614 .2113 .1675 .1328 .1053 .08366 .2132 .1691 .1341 .1063 .08445 .2415 .1915 .1519 .1205 .09553 .2280 .1808 .1434 .1137 .09015 36 37 38" 39 40 .005000 .004453 .003965 .003531 .003144 .06625 ' ..05255 .04166 .03305 .02620 .06687 .05304 .04205 .03336 .02644 .07576 .06008 .04765 .03778 .02996 • .0715 .05671 .04496 .03566 .02827 Specific gravity Weight cubic foot 7.7747 485.874. 7.848 490.45 8.900 555.6 8.461 528.2 These weights are t practice. , ; , - — — aeoretically coi Tect, but vans itions must be expected in Figure No. 68 Recording information regarding weight of wire. THE STORES DEPARTMENT 139 o o o Steel Collars O With or Without Set Screws • £% Shaft Shaft Diam. List Diam. Width Diam. List Diam. Width Inches Price Inches Inches Inches Price Inches Inches if $ .60 1% it 311 $5.50 5H 1% 1ft .80 2 7 /s 4ft 6.00 6ft 17s 1* .90 2& it 411 7.25 611 2 1& 1.00 2A 1 5% 8.50 7% 2 ltt 1.25 2U 1 5 7 / 8 10.00 7% 2 U* 1.60 3 1% 6% 12.50 8% 2 2& 1.90 3& 1% 67 8 14.00 9% 2% 2A 2.40 3H 1% 8 19.50 10% 2% 214 2.70 4% 1% 9 25.00 n% 2% 211 3.00 4ft 1% 10 32.00 1214 2% &ft 4.50 5t 3 b m ORDERS PLACED . Figure No. 69 Extract from catalogue with data on steel collars. 140 STORING Probably great changes will take place in the method of compiling and issuing catalogues in the near future. In fact, the change has commenced, but so little has yet been done that it does not carry much weight. There is no good reason why such a large variety of sizes should exist or why there should be so little uniformity in their compilation. Why are some ARTICLE OR MATFRIAI MANUFACTURER ADDRESS SECTION CAT. NO. Figure No. 70 Index card for catalogues, size 3x5 inches. printed with the index in the front and others with it in the back? Why do some have prices attached and others have separate price lists? Uniformity in these particulars would make cata- logues much more valuable, or at least more con- venient for reference. This of itself would increase their value, because of the greater ease in referring to them. A very wide movement is on foot to standard- THE STORES DEPARTMENT 141 ize catalogues. The eventual outcome of this move- ment will probably be the adoption of the bulletin form of standard size, each bulletin describing one machine or article. This form has already been put in force by many manufacturers. The best method of filing catalogues is to group them according to size. Owing to the lack of uni- NAME OF MANUFACTURER LIST OF MATERIAL MANUFACTURED Figure No. 71 Index card for catalogues under name of manufacturer. formity in size already alluded to, catalogue filing is loose, ragged, and uneconomical at best as far as space conditions are concerned. But until this defect is remedied the best that can be done is to group the sizes. If attempts are made to group in subjects, all the disadvantages named are aggravated. A good cross index should be kept, as indicated in Figures 70 and 71. 142 STORING Charts and Diagrams Some very useful charts can be kept by the store- keeper, especially if he is in control of all supplies. He can, for instance, keep a chart of cotton waste used showing increase or decrease in consumption, made by any change in the quality used. This applies also to lubricating oils, files, and innumerable small tools. Of course it is not intended to suggest the charting of things not worth while, but charts are much more illuminative than mere figures and they take very little time to prepare. Possibly these charts or diagrams might be extended to advantage to some of the raw materials, but this may be going somewhat beyond the storekeeper's province. Anyhow they would show beyond a ques- tion of doubt just when consumption was greatest and when it was lowest. These fluctuations are important, because if there are wide fluctuations during the course of the year in the demand for mate- rial the storekeeper should know it in order to specify the correct delivery dates in his requisition to the purchasing agent. Personnel of the Stores Department Only a general outline of the employees necessary for this work can be given, because of the great vari- ation in the amount of work to be done. Some very large concerns may have much less actual storeroom work than smaller concerns. This is because of the nature of the product manufactured. The class of storing which involves an enormous amount of detail work is that in which the product is made up of an infinitesimal number of small parts, many of these THE STORES DEPARTMENT 143 spunod 144 STORING parts being themselves composed of more than one kind of material. Some establishments have factories or warehouses located in different parts of the country with a general storekeeper who supervises the storerooms in each locality, having an assistant or man in charge at each place. If these are not separated too widely it may be possible to keep the clerical records in one central office. This would depend to a large extent on the arrangements made for cost-keeping and accounting work. If these could be centralized, then it is quite possible to follow the same course with the final stages of the stores clerical work, that is, the perpetual in- ventory. The clerical work itself naturally varies greatly, because of the difference in the product as already stated. For instance, one concern may make 20 deliveries from the stores, while another concern equally large and doing as much or more business may make only one delivery. The author recently in- vestigated the methods used in a stores where over 70,000 items were carried in stock, while in another there were only about 3000, yet these two concerns were doing in dollars and cents practically the same amount of business annually. There are certain fundamentals in storage work which must be observed. It is impossible to get away from them if the work is to be done properly, irrespec- tive of the size of the concern. These will be outlined, but in considering these the fact should be kept con- stantly in the foreground that nowhere is orderliness, system, and cleanliness more essential than in the storeroom. Some shops may get through a vast THE STORES DEPARTMENT 145 Q*— »— z O JISITION CH'G AGE cyoc u3r> oco- , D£ vDUJ 2S — Od o Z < into o»— <*?; -a o£ LUO |__UJ -=c> ^-ixi sa ujcx: 1 Z J 146 STORING amount of work with very untidy conditions, and the output may not suffer from this condition, but not so in the storeroom. Damage, deterioration, and irregularities, involving losses which can only be estimated, will occur if the storeroom is not kept clean and orderly. There should be a place for every- thing and everything in its place. To accomplish this one must have assistants who are themselves clean and orderly. They must be methodical, but at the same time alert. The storeroom is too often looked upon as a lounging place. Some workmen and messengers like to go there for material, because of the opportunity it offers for loafing for a few min- utes. The storeroom help can largely obviate this by promptness in filling their requirements. Outline of Work In subsequent chapters it is proposed to discuss in detail all features of the routine work of a store- room. For a comprehensive appreciation of what this work covers the reader is referred to the accompany- ing diagram (Figure 73). In explanation of this the main features are enumerated as follows: 1. When any material arrives some form of receipt must be given for it and some form of record must be made of its arrival in the establishment. 2. There must be some form of inspection and examination. Goods may be received in packages or some form of container and an acknowledgment given for the receipt of so many packages, but later the contents must be scrutinized and checked with the shipper's statement. THE STORES DEPARTMENT 147 3. The goods must be passed along to their ultimate destination. This may be a separate ware- house, or it may be the storeroom adjacent to the receiving room, or the material may pass directly into the shop for immediate use in production work. 4. The goods must be placed on shelves or racks or in bins, drawers, or other receptacles in the respective places already assigned to them. 5. Proper entries must be immediately posted on the stores records of the receipt and dis- position of the goods. 6. Requisitions will come in for the withdrawal of material from stores; these must be exam- ined for authenticity and accuracy. 7. If the material is in the stores, it must be de- livered promptly and in good order. 8. Proper entries must be made immediately on the perpetual inventory of the withdrawal from the stores. 9. Requisitions should be sent promptly to the purchasing agent, with instructions to buy such material as may be required, but which is not ordinarily kept in the stores. 10. Requisitions should be sent to the purchasing agent daily, with instructions to buy regular stores material, which on account of the withdrawals has passed the minimum point which has been predetermined. CHAPTER X Receiving Material The Delivery Point EVERY order placed for material should specify a place of delivery. If goods are bought lo- cally the seller may deliver at the buyer's warehouse, factory, or place of business, or the sale may have been f. o. b. the seller's warehouse. In the latter case the buyer must arrange to get the goods to their ultimate destination. In the case of material pur- chased from a seller located at some distance from the buyer's place of business the delivery point may be either f. o. b. point of shipment or f. o. b. destination. There are other variations in stipulating delivery points; but wherever this point may be, it is the place where ownership of the material passes from the seller to the buyer. The seller, therefore, has fulfilled his part of the contract by delivering the material to the transportation company at the point named. This point may be several hundred miles from the buyer's place of business, and if the material should be lost or damaged in transit subsequent to the delivery being made, the buyer would, nevertheless, have to pay for it. Questions regarding delivery do not usually come within the scope of the storekeeper's work, but occa- sionally the regulations of an organization call for the storekeeper to take charge of material at the delivery RECEIVING MATERIAL 149 point and get it transported to its final destination. It is necessary, therefore, to make some reference to these questions. The principal fact to be borne in mind is that the delivery point specified is the place at which ownership passes to the buyer, and that any transportation or trucking company receiving mate- rial at that point simply acts as agent for the owner. Tracing Shipments In Chapters Two and Three storeroom economics were discussed from many angles, and many of the factors outlined in that discussion apply equally to material, whether in transit or in the stores. These points should be given due consideration and the material followed up closely to avoid delays. In the case of local deliveries it may be found advisable to have one's own trucking system, or arrangements must be made to have the sellers deliver the goods to some reliable local expressman. When the deliveries are made to railroad, steamship, or express companies it is imperative for the man who is going to follow up the goods to have documentary evidence of shipment, that is, a bill of lading or express receipt. In case of delays these are needed, because the particulars on these documents must be quoted when making inquiries. In all work connected with tracing shipments dis- crimination should be used. There are too many requests made on the transportation companies to trace shipments, and if no discretion is used in making the requests they will be disregarded. Some buyers will insert a clause on all orders reading "Ship and trace," and insist on a tracer being put on all shipments 150 STORING as soon as they are made. This is not good practice, for a sufficient amount of time should be allowed to elapse to permit material to reach destination, and if it does not show up promptly a tracer should then be started. Getting Delivery Securing delivery of material or "following up" an order, as it is generally termed, is work that usually comes within the purchasing routine, but there are cases where a storekeeper may have to take care of following-up orders placed for the storeroom. In a manufacturing plant the production department looks to the storeroom to supply its needs, and the storeroom looks to the purchasing agent to buy what it requires and usually to get delivery, but in the case of an establishment having several factories in different parts of the country, with a central purchas- ing department, considerable time is consumed if the storekeeper in a far distant factory applies to the purchasing agent for information regarding delivery. He can do this himself in certain instances, particu- larly in those cases where the supplier is located nearer to the factory than to the purchasing agent's office. It is exceedingly difficult to get satisfactory results with follow-up work, because the shippers are lavish with promises and tardy in performances. Promises are intangible at best, although some concerns, jeal- ous of their reputations, will strictly live up to them. This, however, is the exception and not the rule. Because one has a promise of shipment one cannot sit back at ease. These promises must be converted into performances and the material obtained when it is needed. RECEIVING MATERIAL 151 fOflM 6S4 (REV. 5-5-18) Follow Up on Material Orders TO DATE PI-EASE ADVISE BELOW WHEN YOU WILL. SHIP MATERIAL. SPECIFIED ON OUR ORDER * DATE OUR NO YOUR 1Mb SHOP NO Otis Elevator Company office Reply (do not detach from above) DATE THE ABOVE ORDER SHIPPED FROM VIA REMARKS: SIGNED . Figure No. 74 Form for requesting information regarding shipment of material. 152 STORING Following up an order means that the intent and purpose of the order must be followed to their logical conclusion by the delivery of the goods. The store- keeper should be furnished with a copy of the pur- chasing agent's order, which should specify the time and place of delivery. There are two ways in which the storekeeper can handle these copies of orders. He can keep them in numerical sequence or segregate them under the dates on which deliveries are required, or are to be made. For instance, if he has some orders which call for delivery on the 20th of the month, he should place these in a folder or pigeon hole for attention a week to ten days in advance of that date. Possibly some orders may need more time than this. The main thing is to get some assurance of as positive a nature as possible as to shipment. A form can be used similar to Figure 74 for the preliminary inquiry. If this fails to bring the desired answer it can be fol- lowed by a similar form stamped "Second request, please answer." If the material is very urgently needed a courteously worded letter may be substituted for the second inquiry form; if a third inquiry is necessary it should always be used. If the routine outlined is followed with discretion and useless and trivial inquiries eliminated, good re- sults can usually be obtained. There are exceptional cases, however, which require exceptional treatment. In the recent strenuous times many large concerns have found it necessary to keep several men out traveling to the seller's factories to follow up orders and secure delivery. Some concerns are very free with promises, but give little regard to living up to them. The writer has before him now four letters RECEIVING MATERIAL 153 from a large manufacturing concern and signed by an officer of the company giving the most definite assur- ances regarding shipment of material. These letters are dated about ten days apart, all refer to the same material, all are facile and easy in style, and all name a different shipping date, which is usually specified Date Mr. 191 __ Your requisition fiumher has arrived. Material is now in the storehouse. G. Par. 11-5M 3-18. C.P.Co. Storekeeper.. Figure No. 75 Form for notifying departments that material has arrived. as two or three days subsequent to the date of the letter. None of these promises were kept and in such cases some other source of supply must be found. Receiving Material at Destination All materials and articles on arrival at the pur- chaser's place of business must have a record made of their arrival. They must undergo some form of in- spection or examination, and must be passed along to their temporary resting place in the storeroom or to the place where they are to be utilized for production work or otherwise, as the case may be. 154 STORING RECEIVING MATERIAL 155 In some small establishments it may be found ad- visable to receive and inspect incoming material in the storeroom or in connection with the shipping room. Some concerns may have a separate receiving room, but have the inspection done in the storeroom. There is this fact to be considered, that many goods and par- ticularly small articles are in some form of package or container, and the person receiving these can only record the receipt of so many barrels, boxes, bags, and so on as the case may be, unless they are opened and the contents counted, weighed, or measured, as might be necessary. In those establishments where the movement of goods is frequent enough to warrant it, it is certainly preferable to separate the activities of receiving, inspecting, and storing. Even in small establishments, if such work is all done by one man, the three functions are separated and distinct and will be discussed in that manner. Owing principally to differences in accounting methods, some receiving clerks report to the account- ant's office and others to the purchasing department. It is better for them to be independent of any depart- ment, because their work brings them into contact with the stores, purchasing, and accounting depart- ments, and it is desirable not to have their movements controlled by any one of these departments. They can then serve them all with equal fairness. The receiving clerk should be advised of what goods are coming in. The best way to accomplish this is to furnish him with a copy of all orders issued. It is contended by some persons that if the receiving clerk did not have this information he would more carefully check incoming material, but it is not good 156 STORING policy to keep him in ignorance on this point, because he might receive material in excess of the quantity ordered or material not ordered at all, or which had been cancelled. When such occurrences do happen it necessitates referring the matter back to the shipper. This frequently results in long negotiations and in- volves expense in returning the materials, besides the inconvenience and disorganization entailed in making the adjustment. In those establishments formed on departmental lines it is essential for the receiving clerk to know to which department the material belongs, if it does not go directly into the storeroom. It is, of course, essential for the receiving clerk to make some form of return either to the purchasing or accounting department to enable them to pass the invoices. There are several methods in vogue for doing this. One scheme is to give the receiving clerk a copy of each requisition sent to the purchasing agent. After the order is placed by the purchasing department it notes on the receiving clerk's copy of the requisition the name of the seller and the order number, but not the price, as it is not necessary for him to know this. The copy given to him bears on the reverse side a form for recording receipt of the material (see Figure 77). This receipt, when properly filled in, is returned to the purchasing or accounting department and attached to the invoice. This scheme has one big defect. Quite often the material specified on a requisition is ordered from more than one concern, or if ordered from one concern is sometimes delivered in several installments. There are some establishments, however, where it is used with success, but it cannot be recommended unless the material comes in in one shipment. RECEIVING MATERIAL 157 CO < s H O 52: o CO u O « 00 i • i ! 5 «s* i ! CM ] ) ©• ! 1 & ; ! i ! \ \ \ | I i a i i i © >« 1* > & tJ 1 2 5 1 1 a s O a •S o i i <8 I < f 1 b -2 5 •y to >. •3 .5 3 O Q O i i 3 r^ m t^ QJ O o oS fc w s 03 P W2 a a> Pn 158 STORING NOTICE! A DETAILED REPORT OF THE GOODS MENTIONED ON THE.OPPOSITE SIDE OF THIS SHEET MUST BE MADE IN THE SPACE BELOW. PARTIAL RECEIPTS SHOULD BE REPORTED ON FORM 423. QUANTITY F -°'fj FREIGHT CHARGED TO CLASS AMOUNT o o o o RECEIVED BY. APPROVED. APPROVAL MUST BE BY MSB, OB SUPT. OR ONE DULY AUTHORIZED. Figure No. 78 Reverse side of copy of order for recording receipt of material. RECEIVING MATERIAL 159 Another scheme is to furnish the receiving clerk with a copy of the purchase order to be used in a similar manner to the requisition described in the preceding paragraph. This also bears a form of FORM 429 RECD 1» FROM 1 - QUANTITY MATERIAL Purchase Order No RECEIVING CLERK ' QUALITY FOB QUANTITY FREIGHT PRICE MFG NO EXTENSIONS REQ NO JOB NO CHARGE TO Class AMOUNT APPROVED TOTAL Figure No. 79 Supplementary form to Figure 78 for recording partial receipts. receipt on the reverse side, as illustrated in Figure 78. This suffers from the same defect noted in re- gard to the requisition. There is, however, a point about this scheme worth consideration. The pur- 160 STORING chase orders issued by a concern constitute a lot of floating obligations, and some establishments find it necessary to keep track of these and to have a reliable record as to when they are closed. This is effected by the accounting department, which receives a copy of the purchase order, and also obtains from the receiving clerk his copy when the receipt on the back is filled in. This method gives the accountant infor- mation as to all purchase obligations and he knows from the receiving clerk's copy when each obligation is closed. If an order should be delivered in install- ments it is necessary to use a supplementary form, as shown in Figure 79, for all deliveries except the last one. It is only when delivery is complete that the receiving clerk surrenders his copy of the order. The use of either scheme outlined means some duplication of work for the receiving clerk, because he must make a record of incoming material anyhow, and this record can be made in duplicate, one copy going to the purchasing or accounting department for the purpose of checking invoices. The system which is recommended for recording receipt of material is indicated in Figure 80. This form should be in triplicate and each delivery recorded on a separate sheet. The three copies are disposed of as follows. One is kept by the receiving clerk and filed in numerical sequence, which should also be the order of dating. The latter is important, because questions are frequently asked regarding receipt of material and it is generally the date which is given as a reference. The second copy goes to the pur- chasing department and serves as a notification of the delivery of material. Later it can be attached RECEIVING MATERIAL 161 RECEIVED ON ACCOUNT OF ORDER NO. DATE FROM F.O.B. POINT FRT. CHARGES QUANTITY DESCRIPTION OF MATERIAL RECEIVING CLERK INSPECTION REPORT RECEIVED INTO STORES SIGNED- STOREKEEPER CHECKED WITH INVOICE _ SIGNED- INVOICE CLERK Figure No. 80 Receiving report in triplicate. 162 STORING to the invoice. If this is strictly followed no invoice could ever be paid twice, neither could an invoice be SHIPMENTS DATE QUANTITY ' CAB No. INITIAL DATE QUANTITY CAR No. INITIAL 1 1 _u 1 r DATE RECORD OF CORRESPONDENCE ACKNOWL- EDGED PROMISED DATE SHIPPED CAR NO. - "\ JOB No. ORDER No. BRANCH OR CUSTOMERS ORDER No. Q Figure No. 81 Reverse side of order, used for recording shipments and correspondence. paid for material not received. The third copy follows the material to the inspector, the storeroom, or other department, as the case may be. RECEIVING MATERIAL 163 If material on arrival is found not to be in accord- ance with the purchase order, it should be immediately- reported to the purchasing department, so that it may- take the matter up with the shipper promptly. All reports of incoming material should always be sent to the purchasing department and other interested departments promptly, because one of them may be following up delivery and it is essential for them to have the advice of its arrival as quickly as possible. All freight or express charges should without fail be noted on all receiving reports. This is important because when the invoice is checked it is necessary to know whether such charges are in accordance with the terms of purchase. CHAPTER XI Placing and Locating Material in the Storeroom Inspection and Examination ALL articles and materials received into an estab- lishment must necessarily pass some kind of inspection. For instance, if a keg of nuts is received and the receiving clerk checks the weight and finds it correct, still there must be some sort of examination so that one may know that the nuts are the right size with the right thread and that they conform to the order in all respects, that is, if cold punched nuts are ordered one does not want to receive hot pressed nuts. Some forms of inspection need be only very casual; that is, one can tell by a glance whether material of certain kinds is all right. Other material needs very careful examination; it may need to be measured or gauged, or both, or put to some simple tests. Still other material may have to be rigidly tested with some physical testing machine, or may have to pass a chemi- cal analysis. When material is to undergo these forms of testing the purchase order should specify in what manner they are to be done, or the results which must be obtained from the tests. Another form of inspection is that which takes place at the seller's place of business. This may be done during the manufacturing process, or when fin- ished, but prior to shipment; or the seller may make INSPECTING AND PLACING MATERIAL 165 and submit a sample before proceeding to manufacture the bulk of the order. When such a sample is ap- proved it should be properly identified with the order and turned over to the inspector who is to examine the material on arrival so that he can make exact comparisons with the bulk. The need of inspection is not fully realized by many concerns; it is too often the weakest link in the chain of activities connected with receiving and storing material. Inspection before Delivery Some large concerns have men on their permanent staff who are sent to the seller's factory or place of business to inspect material while it is going through the manufacturing process or when it is completed ready for shipment. In the latter case they may have to see it loaded on to cars. He should make his report in some such manner as indicated in Figure 82. This method of inspection is largely adopted in all im- portant contracts for material which it is essential should be uniform in its characteristics. It should also always be done in those cases where payment has to be made before it could be inspected on arrival at destination, or when it has to be transported very long distances. A concern not having men on its staff fitted for this kind of work can always secure the services of a reputable firm of inspecting engineers to undertake this work. Inspection after Delivery The manner in which this can best be done will depend largely on the way the work is allocated in the establishment. It can be done by the receiving clerk, if he has the time and the necessary ability; 166 STORING INSPECTION REPORT DATE MATERIAL WAS ORDER NO DATE OF ORDER READY FOR INSPECTION. PURCHASED FROM- MATERIAL PLACE OF INSPECTION- DATE OF INSPECTION DATE REPORT SENT IN. DETAILS OF INSPECTION AND TESTS SIGNED- COPIES OF THIS REPORT SENT TO REPORT APPROVED BY Figure No. 82 Form used by inspectors for making reports. INSPECTING AND PLACING MATERIAL 167 it can be done by a member of the stores department, or there can be an inspection department independent of either. In any case it should be done promptly after the material arrives, because if in any particular the material should be found faulty the seller should be advised without delay. Another reason why inspec- tion should not be postponed is that if a sudden call were made for the material for use in the shop and it was found to be incorrect, it would disorganize the routine and probably involve considerable expense in making hurried purchases of the right material. The inspection referred to in the last paragraph means the examination for any defects, except those which it is necessary to prove through a chemical analysis, or those which are carried out by the tech- nical staff. Any competent man accustomed to hand- ling material can, with the exercise of care, discover superficial flaws and poor finish, or whether the material has suffered from exposure to atmospheric conditions, or from poor packing or rough handling. He can also detect irregularity in the size of small articles and can make measurements with the use of simple instruments such as gauges, calipers and mi- chrometers. It is such inspection as this that is re- ferred to here. The record of this inspection can be made on the form illustrated in the last chapter (Figure 80). Inspection which calls for complicated physical tests or chemical analysis must be undertaken by some firm of inspecting engineers, if an establishment does not have the apparatus and staff to do such work itself. In these cases samples for testing purposes must be taken from incoming material and be prop- 168 STORING erly marked or tagged with the order number. They should then be sent promptly for testing, accompanied by a form similar to Figure 83. This can be in triplicate or quadruplicate, as may be necessary. The purchasing, technical, and stores departments would probably each require a copy. Receiving Material into Storeroom During the preceding discussion we have followed the course of the material to a point where it is ready to pass into the stores or directly into the shop. It is of the utmost importance to efficient storeskeeping that all articles and material be placed in the recep- tacles assigned to them. If this is not done it is exceedingly difficult to keep the records accurate; material will get piled up until some more favorable opportunity presents itself for disposing of it. This means that it may get damaged or mixed with other sizes. If material is allowed to lie around the entrance to the stores, it is not unlikely that when deliveries are being made the material will be taken from there instead of from the regular bin or location. Such methods can only lead to confusion and inaccuracies. It has been emphasized in earlier chapters that all manual operations must be maintained at an equal degree of efficiency with the clerical operations. The dual nature of storeroom work requires this. Any form of carelessness will lead to mistakes in manual work and probably the most common form is that of permitting delays to occur before placing articles in the locations assigned to them. When material is taken out of the bins delays will not be tolerated, because it is usually wanted at once and probably INSPECTING AND PLACING MATERIAL 169 REPORT OF TEST PURCHASE ORDER NO.- DATE_ NOTE: REFER TO PURCHASE ORDER OR SPECIFICATION FOR NATURE OF TEST THE MATERIAL LISTED BELOW IS SUBMITTED FOR TESTING PURPOSES SIGN ED- STOREKEEPER Date Received Quantity RESULT OF TEST COPIES TO 8IGNED- DATE TEST WAS MADE. Figure No. 83 Form for reporting results of physical or chemical tests. 170 STORING there is a messenger or runner waiting for it. Likewise, there should be no delays in placing it in the bins. Placing Material in Receptacles The most important rule to follow is to have a place for everything and keep everything in its place. These places should be properly numbered and the contents designated. That is, every article in the stores should have an address and this address should be entered in the stores ledger just as rigidly as if it were the address of a customer in the sales ledger. It should be possible for a person unacquainted with the store- room to obtain the location of an article from the perpetual inventory, and then be able to go directly to that location without hesitation. All shelves, racks, bins, or other receptacles should be numbered and all tiers or sections lettered or num- bered. Metal flags can be used to good effect, particu- larly in numbering the sections or tiers. In addition there should be a card holder on each receptacle containing a card bearing the name of the article. No matter what the article may be, it has a name, a size, a weight or some distinguishing characteristics, and these should be inscribed on the card correspond- ing with the description in the perpetual inventory. The practice of taking small articles into the stores, approaching the bins where they are supposed to go, extracting one of its contents, matching it up with the new articles, and, if apparently found to correspond, dumping the new lot in with the old, cannot be too strongly condemned. The written description of the incoming material should be checked with the written description on the bin ticket. INSPECTING AND PLACING MATERIAL 171 Material Returned to Stores If for any reason it is found necessary to return material to the storeroom it must follow the same course of procedure as new material. That is, it must be accompanied by some document and must be placed at once in the proper receptacles. date- credit REQUISITION Credit is Requested for the Material Listed Below Credit to Apply on Order No.- Quantity Material From Dep't No- Delivered by Foreman Received by_ FlGTJRE No. 84 Form for use when material is returned to storeroom. It is principally in manufacturing establishments that it is found necessary to return material to the stores, the reasons being that after completing an or- der the shop may find it has a surplus, or it may have been decided to curtail the quantity being made. In all instances of this kind the material should not be allowed to remain in tne shop, but should be re- turned to the stores accompanied by a form similar to Figure 84. The use of this form insures the 172 STORING transaction being posted on the perpetual inventory, and also provides for proper credit being given to the shop order. If there are any supplies in the shop in excess of requirements these should also be returned. It is only, however, when supplies are withdrawn by irresponsible persons that more is taken out than is actually needed and this should not be permitted. MEMORANDUM OF SCRAP SENT TO STOREROOM To the Storekeeper Date The Scrap Listed Below is Being Sent to You Credit Should be Given to Dep'T No Order No. Quantity Description Delivered by- Received into Storeroom- storekeeper Figure No. 85 This form should accompany all scrap sent to storeroom. Scrap Sent to the Storeroom In some manufacturing plants scrap is quite an important item and if it has to be kept for any length of time for utilization in the plant, or if it has to be sold, it should be put in charge of the storekeeper so that it may go on his records. Some scrap has con- siderable value, and it may have to be kept some time INSPECTING AND PLACING MATERIAL 173 until a suitable market is found. The practice of sending scrap to the shipping room is not to be com- mended, unless it is already sold and is to be shipped immediately. The rule to follow is to insist on all material in an establishment being on the stores records, except that which is in process of manipulation in the shop. This gives the stores accounts a definite meaning. Obsolete material comes under the same regulations as scrap, for it is virtually scrap as far as that partic- ular plant is concerned. It is possible that the store- keeper might be charged with the sale of scrap, but preferably it should be the purchasing agent, as he is in closer touch with the markets. If the latter is the case, the storekeeper should advise him from time to time of the amount of scrap he has on hand for dis- posal on a form similar to Figure 86. Storing Stationery While in some establishments it may not be feas- ible for the general storekeeper to have charge of the stock of stationery, still there are many places where it could be done to great advantage. There is, per- haps, more waste with stationery than with any other form of supplies, and a great many houses keep no records whatever of stationery stock, but it is handed out on a verbal request from a cupboard or closet to which many people have access. In many cases it would be found that very important savings could be effected by enforcing a rigid control, and if possible this control should be placed in the hands of the general storekeeper. He should have charge of everything, including all forms, ink, pens, 174 STORING 2 . O O F z u. „. t- P 5. U LLl til a ce a (E Q O HI Z CO 1- < < Q co LU cc few z H O z LU CQ O O Ico 1— co zo. ^ to £< 9> zli cc co< LU £co o< J *J LU Q CQ -1 Q CO LU < Of UI (-LU h coco < J o 2 _ih- < E<2 LU (- H z < LU S CD < LU o I 2: h- 03 < X > a: 3 1- Q. H HI I 1- z < z a 1- < O 1- _l Xi -1-1 CO CU 00 cri Fh O & h O H , , « Gi P jij O += ft CI ti INSPECTING AND PLACING MATERIAL 175 pencils, carbon paper, desk pads, paper fasteners, etc. Office furniture should be standardized and given form numbers. Form numbers should also be given to inkstands, paper fasteners, pencils, etc. This is essential for identification, and the standard- ization greatly reduces the number of varieties in use. If the storekeeper has charge of the stationery he would have to make requisitions to purchase fresh supplies, and to enable him to do this intelligently he should keep a copy of every printed form used. These should be pasted on loose leaves and fastened in a binder. The loose leaves should be large enough to enable the name and number of the form to be placed at the top of the page, with detailed instruc- tions for its use at the bottom. A record such as this is extremely valuable, because it eliminates useless forms and prevents duplication. It also is very useful for the education of new employees in the proper use of forms they come in contact with. A duplicate can be made for use in the purchasing de- partment as a help in buying. Very little work is involved in keeping such a record up to date, and its usefulness will amply repay the small amount of labor entailed in compiling it. Storing Finished Product The preceding discussion has been confined to raw material and supplies, but there is another class of material which has to be stored and that is the fin- ished parts or finished product of a plant. In some establishments these are kept in storerooms entirely separate from the raw material, while in others they may be stored in the same or adjacent rooms. Practi- 176 STORING cally every consideration from an economic viewpoint which applies to raw material, as discussed in Chapters Two and Three, applies equally to finished product. The only difference between raw and finished mate- rial is in regard to the manner in which it should be handled or the location it should occupy. Finished material may be the product of a factory, such as screws or nails in regulation packages ready for ship- ment, or it may be completely assembled articles, such as desks, or typewriters, or again it may consist of materials which, together with other material, will ultimately be assembled to make a complete machine, such as an automobile or bicycle. The last class of finished material is usually designated "finished parts." As far as storage problems are concerned there is no radical difference on either the manual or clerical work connected with storing raw or finished material. They must both have their entry and exit properly recorded and in a similar manner. There would in some instances be a saving in this work if all classes of stores could be under the same control, with the storerooms contiguous to each other. It should, however, be recognized that finished material may travel a different route, both in going in and out of the storeroom, and this must be considered in decid- ing on the location. Of course some factories send all finished parts to the assembling departments, but even so they have to be stored there until gathered together to form the complete articles or machine. CHAPTER XII Deliveries from Storeroom General Considerations IT is usually important that material and supplies be distributed promptly by the helpers in the stores, particularly in manufacturing plants. The facility with which this is done will depend very largely on the manner in which the material has been placed in the racks and bins. Deliveries can be made easily and rapidly from a well-kept and well-arranged stock. In the majority of storerooms the deliveries are much more numerous than the receipts. With the larger number of operations there is naturally more liability to make mistakes. The applicants for mate- rial must be served accurately and expeditiously and the transactions must be posted promptly on the records to enable close track to be kept of the stock. All these features render the problems connected with deliveries the most important in storeroom activities. In consequence of this the assistants mak- ing deliveries must be thoroughly conversant with the stock and be able to supply applicants without delay. They should be able to scrutinize requisitions and decide quickly whether they contain all the requisite information and are signed by a person duly author- ized to draw material from the stores. In the case of material required for production work there is, or should be, complete control over it 178 STORING after it passes out of the storeroom into the shop, and any waste or withdrawals in excess of require- ments should be quickly discovered. It is more difficult to control supplies, because these are not charged directly to a production order and, their use being more general, it is open to persons without a sense of responsibility to withdraw more than is needed. In connection with these it is essential there STORE ROOM ORDER H. W. JOHNS-MANVILLE CO. MANVIIXB PLANT DATE - - mtf JVKR TO BEARER TO RR TTSRT> ON r TOTAL El7-2$8-2S Foreman Figure No. 87 Requisition on storeroom. should be some supervision, and it has been suggested in an earlier chapter that the chief storekeeper could well be given the authority to regulate the use of supplies. Prevention of overdrafts is much better than attempts to rectify them after being made. Requisitions Applicants for material should never be permitted within the storeroom. The practice of allowing them to pick out from the stock what they need is entirely DELIVERIES FROM STOREROOM 179 too common. Many storekeepers compromise by per- mitting applicants to go to the shelves and get what they need, checking the weight or count as the appli- cant passes out of the storeroom. Such methods as this should not be tolerated. If a storeroom is main- tained, then it should be operated in the right way. WARNER SUGAR REFINING CO. RECEIPT A 22389 Rewrite dumber I 1 Date 191 deceived from Storekeeper the f ol!owing> OUANTITV size - no. ARTICLES JOB VALUE ■ 1 . Figure No. 88 Requisition on storeroom. If a loose system prevails, either in receiving or de- livering material, the storeroom records cannot be considered reliable. The requisition presented to the storekeeper may take any convenient form, but it must contain certain essential features. These are: 1. The date; this may be stamped on the requisition when received if it has not already been inserted. 2. The name or number of the department from which it originated. 180 STORING 3. An explicit and unmistakable description of the material required. 4. For what purpose it is required. 5. It must be signed by a person duly authorized to draw material from the stores. There are other features which may be necessary in individual cases; these will be governed mainly by accounting and cost-keeping methods. It is pref- erable, although not imperative, to have a distinguish- ing color for the requisitions from each department. This is of great assistance in segregating and filing. It is also advisable to number requisitions, as they can then be located readily whenever it is necessary to refer to them. Figure 89 illustrates a form of requi- sition for use in a manufacturing plant. After these have been duly entered on the stores records, it is customary for them to pass along to the cost account- ant, who makes the proper charges from them against the shop orders. It is possible, therefore, that the cost accountant might wish the requisitions to be uniform with other documents used in this work. Requisitions should correspond to the perpetual inventory in specifying quantities. For instance, if the inventory is kept in units of weight and the requi- sition asks for a certain number of the articles, it must be converted into units of weight before the articles leave the stores. The bin ticket should in- dicate in what manner the unit is expressed. Issuing Articles in Sets There are a great many things manufactured which require certain fittings when being assembled. For instance, nearly all furniture comes under this cate- DELIVERIES FROM STOREROOM 181 gory. If an order is started in the shop to make up one hundred office desks, it is not necessary to with- FORM Y SB MATERIAL REQUISITION ORDER NO. .REQUISITION NO. TO OE»»T NO. .DELIVER WITH THIS ORDERTO DERTNO. TO aE USED FOR SEC BIN SAL. . FOREMAN Figure No. 89 Storeroom requisition. draw the hardware from the stores at the same time as the lumber. For this reason the storekeeper should 182 STORING know what orders are going through the shop, so that he may be prepared to supply what is needed when it is needed. The lumber for the desks having passed through the manufacturing stages up to the point where it is assembled, a requisition can then be made for the hardware. In writing this up it is not necessary to specify so many locks, drawer pulls, casters, etc. The requisition should call for 100 sets of fittings for standard desk number — . Before the messenger goes to the storeroom for them, telephone instructions should be given to get the sets ready, so that there will be no delay in delivery. In all cases of this nature the storekeeper should know what constitutes a set and he can if advisable keep his stock in sets, instead of having the articles separate and perhaps distributed widely through the storeroom. Shop Orders as Requisitions Figure 90 illustrates another method of requisi- tioning material from stores. This is a copy of the shop order and specifies the material which will be required in executing the order. It is particularly useful in jobbing work and can also be used when the material can all be withdrawn at one time. Manu- facturing methods are so varied and so many problems are met with which are largely individual that no fixed rules can be laid down in a treatise of this char- acter. The point which it is desired to emphasize is that material should not be drawn from the stores until actually needed for shipment, or, if it is to undergo manipulation in the shop, then it should go directly from the storeroom to the work bench or DELIVERIES FROM STOREROOM Board No. O Card No. Total Cards S. O. No. Date Dept No. Cat. No. Dwg.No. Tbi»Card calls for the Stock item following: Mk. Material . Schedule for. Fattern No. _, ..ifl Dept. Checked in DepL. 'Board No. Card No. Total Cards S. O. No. Date Dept. WO. Cat No. Dwg.No. Mk. This card identifies materia! or parts attached as the following: Material Stock condition Steak to be delivered File date Pattern No. Deliver to „ -in office Checked in Dept.. Beard No. -/ Order Card Ho. TsUl Cerdj S. O. No. Mstei'ia! Cud No. Tetal Caret c*^ No. Date Dwg.No. Mk, Store To Dept. No. Delivery Date AidS. Description I Wrii^t ] Prica | Vttl«« Fffiadb? Chi*., 183 Figure No. 90 The last section of this is used for withdrawing material from stores. 184 STORING machine, and not be withdrawn and permitted to lie around the shop. To prevent the last-named condition when the rate of progress of an order through the shop is somewhat uncertain, and at the same time to prevent delays in delivering from the storeroom, many storekeepers lay out the material specified on the shop order and place it in tote boxes. These boxes are kept in a section of the storeroom with the order number marked on them. By adopting this course the material is retained under the storekeeper's control until ready for use, and at the same time no delay would occur in delivering it from the storeroom. Shortages Throughout the preceding discussion of deliveries from stores it has been assumed that the storeroom had the material ready to hand out at any moment, but many instances occur in which delivery cannot be made at once or can be made only in part. Owing to the difficulties experienced in getting material from shippers in the recent strenuous times many store- rooms have run short of regular stock. In the case of jobbing orders which may call for various odd lots of material and articles seldom called for, it is not to be supposed that they can all be carried in an ordinary storeroom. When a shortage exists the storekeeper can furnish such material as he has on hand and issue a shortage ticket, as illustrated in Figure 91, for that which he cannot supply at once. This shortage ticket should be in duplicate, one copy being retained in the store- room as a reminder to follow up delivery and obtain DELIVERIES FROM STOREROOM 185 FORM V 47 NQT IN gTPQtt Date. Order No. Part No_ Requisition No. The above specified items. as called for bv above noted requisition are not now in stock Hold this slip until requisition is filled then return slip to stock room OTIS ELEVATOR COMPANY Figure No. 91 Shortage ticket. 186 STORING quickly the material to make good the shortage. The other copy of the shortage ticket goes to the shop, where it serves the following purpose. In keeping track of the progress of an order through the shop there are certain employees who are sometimes known as "chasers," their duty being to follow up the orders. When the chaser finds an order is at a standstill for lack of material the shop must have a shortage ticket showing that it has applied to the storeroom, but has been unable to procure the material. The chaser, on discovering this condition in the shop, will bring pressure to bear on the storekeeper to supply the de- ficiency. The storekeeper will likewise press the pur- chasing agent until the shortage is made good. In the discussion of maximum and minimum limits in Chapter Three the danger of shortages in the store- room was pointed out. In the case of jobbing orders calling for unusual and seldom-called-for material, they are unadvoidable. Apparent Shortages When the production department of a factory gives the storeroom a schedule of dates on which material will be needed, or furnishes an estimate of the prob- able rate of consumption, that is for the storekeeper's information and should enable him to keep his stock at just the right level to meet these requirements. The actual withdrawal of material from the stores would be through the medium of a requisition, as explained earlier in this chapter. A somewhat different condition exists when no schedule of the rate of consumption is given to the storeroom and when the storeroom is furnished with DELIVERIES FROM STOREROOM 187 copies of the production orders. These production orders take the place of requisitions and they may Form 461. SHORTAGE REQUISITION To Dept. No, Deliver with this Order to Dept. No. . To be osed for This Requisition must be Approved by Shop Superintendent before Material can be drawn from Stock Room. SBC BIN BAL DESCRIPTION Approved: Signed Superintendent Foreman .... ::.. ... j Figure No. 92 Used when insufficient material has been drawn from stores. accumulate to such an extent as to involve quite a problem in handling them. For instance, the pro- 188 STORING duction orders may be issued many months in advance of the actual time the material may be needed. This creates a condition where the storeroom has recognized and authenticated applications for material without a sufficient quantity being in stock to fill them. There is, therefore, an apparent shortage. There is not an actual shortage, because the material is not always needed immediately the production order is issued. If it should not arrive in the storeroom before the production department called for it, then there would be a real shortage. The manner in which this problem should be handled would very largely depend on to what extent it oc- curs. Earlier in this chapter reference was made to shop orders, and it was suggested that the material for these could be taken out of the bins and placed in tote boxes. Now it may happen that the quantity so set aside may reach undue proportions and the storekeeper may feel justified in abstracting material from the boxes, if he needs it for other orders, and placing shortage tickets in them to show that he has done so. He would keep a record of these transactions through the copy of the shortage ticket, which he would keep in his office. The result of this is that the material has been charged out twice, but actually delivered only once, creating an "apparent" shortage. This method can only be adopted where there are few such transactions and then only when the articles are small and can be stored in tote boxes. It is better to have a systematic bookkeeping scheme to take care of it. This can be done by having a supplementary sheet attached to the perpetual in- DELIVERIES FROM STOREROOM 189 ventory sheet, or an additional column to record these particulars. For instance, suppose he has 1000 units of a certain article in the stores and his records show- that production orders have been issued which will absorb 1500. There is here an apparent shortage of 500, but there is not a real shortage, because the shop may not need the articles for these particular orders for some weeks, or even months. form s» (rev. 4-j-i7) EXPENSE MATERIAL REQUISITION ORDER NO. [X ]rEO, NO. DATE TO DEFT. NO. DELIVER WITH THIS eWTWH TO DEPT. MO. QTY. PAT. SYM. NUMBER ORStZE DESCRIPTION FOREMAN ,,,,. . .,,,,.. __ Figure No. 93 Requisition for supplies. Issuing Supplies Everything delivered from the storeroom which is for expense account, that is, everything which is not for resale or does not become a component part of the finished product, should be requisitioned on a form differing from that used for raw material. This covers everything needed for repairs to buildings and upkeep of machines, also all articles used for general shop* expense. The storekeeper is, perhaps, the best man to have 190 STORING control of these throughout an establishment; that is, requisitions for them should be subject to his approval. The department needing the supplies should be speci- fied, and whenever possible the exact purpose for which they are required. The closer these lines can be drawn the greater will be the saving in this class of overhead expense. Routine Clerical Work The discussion of routine work up to this point has covered the following features: 1. The receipt of material. 2. The various forms of inspection. 3. The placing of material in properly designated receptacles and places. 4. The delivery from the storeroom to authorized recipients. All of the transactions enumerated must have, as has been shown, some documentary evidence of their accomplishment. Samples of these documents have been illustrated in the two preceding chapters, and it now becomes necessary to show in what manner they are permanently recorded. In Chapter Eight the perpetual inventory was fully discussed. This is the complete stores record or ledger. By referring to the illustrations given of perpetual in- ventories (see Figures 60, 61, 62, and 64) it will be noticed that the form can be simply a record of re- ceipts and deliveries, or it can cover many other features, such as quantities ordered but not received, quantities requisitioned but not delivered, etc. Every entry on the inventory must have a document to show for it. For instance, the receiving clerk's DELIVERIES FROM STOREROOM 191 slip would be used to post the quantity received, the requisitions would be used to post the quantities de- livered, a copy of the purchase order would indicate the material ordered. There are some other forms which will be alluded to later. What it is desired to emphasize is that all these documents must be jealously safeguarded until recorded. Even after this they should be kept in suitable binders until such time as there is no possibility of any need to refer to them. There are few factors which would tend to disorganize the keeping of the records; the main one is, perhaps, lost or misplaced documents. If these are carefully preserved and duly entered on the inventory, there cannot be much go wrong with the stores bookkeeping. Overlooking the Minimum This is, perhaps, the bugbear of a majority of store- keepers, and yet many of them allow their stock to run below the safety mark. Many schemes have been devised to prevent this contingency, but none of them are infallible and most of them simply make more clerical work. It would seem that in posting the entries on the inventory that one could not fail to observe the approach towards the minimum, but the clerks engaged on this work may not balance the accounts frequently, they may have their attention called to other duties, or they may not enter the items promptly and allow this work to accumulate. There must be sufficient clerical assistance on the inventory desk to make the postings immediately the documents arrive. With sufficient clerical help at this point there should never be any question of running past the minimum. 192 STORING All the auxiliary schemes, such as bin tickets and markers, are simply makeshifts. They are all started with the purpose of relieving the work on the perpetual o o WAHJto SCJCAft REFINING COMPANY EDCEWATER. N.J. REFINERY REQUISITION Required; FOR I DEPARTMENT REQUISITION signed ST. MAKE ORDER TO: APPRO VI O n u r\ r~\ r\ =0 Figure No. 94 Requisition on purchasing agent. inventory, but this work is the important work; nothing else can take its place and it cannot be slurred or neglected. It is better to recognize this fact and devote one's energies to accuracy in maintaining it. DELIVERIES FROM STOREROOM 193 Purchase Requisitions When many clerks are employed posting the per- petual inventory it is advisable to suspend the work at a fixed hour every day, preferably late in the after- noon, and the clerks can then write up the purchase requisitions for such material as the records show has reached the minimum. This is the only safe way. If the clerks are permitted to make these requisitions at any time during the day convenient to themselves, they may or may not write them up. An illustration of a purchase requisition is given in Figure 95. All the particulars should be filled in by the clerks in the spaces shown. They should then be collected and given to the chief storekeeper for his signature, after which they are passed along to the purchasing agent. This method eliminates all delay, because the requisitions can be in the hands of the purchasing department ready for his action at the opening of his office the following morning. Some storekeepers make a practice of sending requisitions to the purchasing agent once a month. There may be some isolated instances where such a system could be followed, but it is not recommended as a general practice. If it is permissible it would be more applicable to requisitions for supplies than for materials. If any advantages are secured to the pur- chasing department by adopting this system it would have some weight in deciding the matter. Summary The man who knows least about his business is the man who usually fails, and the man who knows most seldom fails. To advance one's knowledge of the 194 STORING condition of that portion of one's investment repre- sented by the stock of goods and materials in the stores there is nothing of greater importance than a well-kept perpetual inventory. *o*m »■« (nev. Q charge to 'account no. CLASS. o Q o Otis Elevator -Company PURCHASING AGENT; please is.3Ufi ORpER for the following for deliver TO WORK3 OEPARTMEf- CHARGING EACH ITEM TO ACCOUNTS INDICATED IN MARO DATE WANTED APPROVED;*- o*»»* •**•**#*•«,. Figube No. 95 Storekeeper's requisition on purchasing agent. DELIVERIES FROM STOREROOM 195 ViD O o o 196 STORING Perpetual inventories require perpetual attention. Authorities in accounting methods are practically united as a unit in their favor. The necessity for their accurate compilation is recognized. Lack of atten- tion on the part of employees, or insufficient help, is the only reason for the difficulties some people claim to have with them. The keeping of accurate records can be covered by a few simple rules. First: Nothing should be permitted to enter the storeroom unaccompanied by some form of advice, such as the receiving clerk's report (Figure 80) or the credit requisition (Figure 84). These documents are used to make the debit entries. Second: No material should be allowed to leave the stores without a properly drawn requisition which should clearly indicate the quantity taken from the storeroom. The requisition should be signed by the recipient of the material. Third: Accuracy in receiving and delivering the quantities specified and accuracy in posting the entries are all absolutely essential. Fourth: Perpetual inventories should be treated as cash is treated. Cash is verified often, or should be. A perpetual inventory should be verified as described in Chapter Eight. Fifth: The documents indicating the incomings and outgoings should be preserved a sufficient length of time to cover the period when they might be needed to check back; that is, until a physical count is made. If this should uncover any discrepancies, these docu- ments would be needed for reference. INDEX PAGE A Acounting and storing 180 Accuracy in weighing 67 Additional cost to the user of stored goods 5 Apparent shortages 186 Appliances for storeroom .... 67 Auxiliary sources of supply . . 33 B Balancing storage considera- tions 4 Barrett multi-truck 80 Bins and shelving 54 Bins, closed type 58 details of construction. . . 59 Bookkeeping with machines. . 115 Buying and storing 6 C Capital outlay 12 Carbon brushes, definition of. 42 Catalogues 134 card for indexing 140 usefulness of 130 Changes in values 11 Charts and diagrams 142 Chemical analyses 167 Clerical records 97 Closed type of bins 58 Columbus lift truck 79 Commercial definitions 38 Commercial storage 2 PAGE Conveyors 89 for curves 90 grades of 93 Cost of storing 11 Counting 100 automatic 108 by hand 101 by weight and estimate. . 102 even balance 104 with proportional scales . 105 machine beam 68 counter type 69 floor type 70 dormant type 71 Credit requisition 84 D Department diagram 145 Definitions 35 commercial 38 object of 39 illustrations of 40 obtaining 47 card for recording 48 Deliveries from storeroom . . . 177 Delivery, the point of 148 getting 150 Deterioration 18 Disadvantages of storing .... 4 Distinction between storing for manufacturing and for resale 8 Dual nature of storeroom work 97 197 198 INDEX E Equipment of storeroom .... 51 movable 67 Examination and inspection. . 164 Expense material requisition. 189 of storing 14 Extremes in storing 20 F Factory storage 9 Fluctuations in prices 16 Following up shipments 151 G Gravity conveyors, force of 89 95 Importance of storage prob- lems 3 Index card for specifications. 38 Information for storekeeper. . 134 Inspection and examination. . 164 Inspection before delivery ... 165 after delivery 165 report 166 Inspecting engineers 165 Interest charges 13 Insufficient facilities 12 Insurance 14 Issuing articles in sets 180 Inventories 114 physical 117 perpetual 120 illustrations of 118, 119, 123, 127 correct 121 verification of 125 and values 126 Investment in storage 10 Invoices and receipts 162 Ladders for storeroom 65 Ledger for stores 114 Location of storeroom 51 Losses in storing 18 M Machine bookkeeping 151 Manual operations 97 Market and inventory prices. 17 Material returned to store- room 171 Maximum limit, meaning of. 26 fixing 29 and buying 30 flexibility of 31 increasing the 34 Mechanical aids 95 Minimum Unfit, meaning of. . 26 fixing the 28 flexibility of 30 and production 28 N Numbering bins and aisles. . . 53 O 2 25 Object of storing Obsolete materials Obsolete material sent to storeroom 173 Order form used for receiving material 158 Order on storeroom 178 Overlooking the minimum. . . 191 INDEX 199 Part numbers tabulated 43 Partial receipts 159 Physical deterioration 18 Physical inventory 116 Placing material in storeroom 164 Plimpton elevating truck. ... 76 Price market 17 inventory 16 Production problems 33 Profits in storing 14 Progress report 154 Proportion of storage space . . 52 Purchasing and receiving. . . . 163 Purchase requisitions 193, 194 Purchasing and the storeroom 32 Psychology 24 Purpose of storing 2 R Racks 53 with tote boxes 110 for drill rods 62 for tubes and rods 63 construction of 64 revolving 65 Raw material for manufac- turers 15 Reasons against storing 4 Receiving clerk 155 Receiving material 148 Receiving report 161 Receiving material into store- room 168 Recording receipt of material 156 Relation to buying 7 Report of material to be sold . 174 Requisitions and receipts. ... 157 on storeroom 178 on purchasing agent .... 192 Reverse side of order used for recording receipts .... 162 Rivets, definition of 41 Root counter 107 Routine clerical work 190 S Scales Standardization Stationery forms storing Scientific storing Scrap sent to storeroom . . . Shelving and bins open type Shop orders as requisitions. Shortages Shortage ticket requisition Specifications technical Speculative elements Stacking barrels Storekeeper, the qualifications sphere of work ....... Storeroom order requisition Storing finished product. . . Stores department chart of outline of work Summary Supplies from stores 71 35 175 173 12 172 54 60 182 184 185 187 35 37 10 108 130 131 132 178 181 175 142 145 146 193 189 Temporary profits 18 Testing materials 164 report 169 Time element 23 Tote boxes, stacking 109 nesting Ill Tracing shipments 149 200 Transportation and storing . charges Trucks lifting or elevating advantages of illustrations of Columbus lift Barrett Plimpton platforms for INDEX 3 U 163 76 Utilizing space 65 77 77 w 78 79 Wealth in storage 1 80 Weighing machines 71 76 with dial 74 85 Withdrawals from stores .... 182 THE LITEBATUBE OF THE INDUSTBIES AKD BUSINESS On our shelves is the most complete stock of techni- cal, industrial, engineering and scientific books in the United States. The technical literature of every trade is well represented as is also the new literature relating to scientific management, business efficiency, advertis- ing and the various other subjects related thereto. 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