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Shop Management · Chapter 5"cost of Production Per Lathe Per Day (3)

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By non-producers the writer means such employees as all of the general officers, the clerks, foremen, gang bosses, watchmen, messenger boys, draftsmen, salesmen, etc.; and by "producers," only those who actually work with their hands.

In the French and German works there was found to be in each case one non-producer to between six and seven producers, and in the American works one non-producer to about seven producers. The writer found that in the case of another works, doing the same kind of business and whose management was notoriously bad, the proportion of non-producers to producers was one non-producer to about eleven producers. These companies all had large forges, foundries, rolling mills and machine shops turning out a miscellaneous product, much of which was machined. They turned out a highly wrought, elaborate and exact finished product, and did an extensive engineering and miscellaneous machine construction business.

In the case of a company doing a manufacturing business with a uniform and simple product for the maximum economy, the number of producers to each non-producer would of course be larger. No manager need feel alarmed then when he sees the number of non-producers increasing in proportion to producers, providing the non-producers are busy all of their time, and providing, of course, that in each case they are doing efficient work.

It would seem almost unnecessary to dwell upon the desirability of standardizing, not only all of the tools, appliances and implements throughout the works and office, but also the methods to be used in the multitude of small operations which are repeated day after day. There are many good managers of the old school, however, who feel that this standardization is not only unnecessary but that it is undesirable, their principal reason being that it is better to allow each workman to develop his individuality by choosing the particular implements and methods which suit him best. And there is considerable weight in this contention when the scheme of management is to allow each workman to do the work as he pleases and hold him responsible for results. Unfortunately, in ninety-nine out of a hundred such cases only the first part of this plan is carried out. The workman chooses his own methods and implements, but is not held in any strict sense accountable unless the quality of the work is so poor or the quantity turned out is so small as to almost amount to a scandal. In the type of management advocated by the writer, this complete standardization of all details and methods is not only desirable but absolutely indispensable as a preliminary to specifying the time in which each operation shall be done, and then insisting that it shall be done within the time allowed.

Neglecting to take the time and trouble to thoroughly standardize all of such methods and details is one of the chief causes for setbacks and failure in introducing this system. Much better results can be attained, even if poor standards be adopted, than can be reached if some of a given class of implements are the best of their kind while others are poor. It is uniformity that is required. Better have them uniformly second class than mainly first with some second and some third class thrown in at random. In the latter case the workmen will almost always adopt the pace which conforms to the third class instead of the first or second. In fact, however, it is not a matter involving any great expense or time to select in each case standard implements which shall be nearly the best or the best of their kinds. The writer has never failed to make enormous gains in the economy of running by the adoption of standards.

It was in the course of making a series of experiments with various air hardening tool steels with a view to adopting a standard for the Bethlehem works that Mr. J. Maunsel White, together with the writer, discovered the Taylor-White process of treating tool steel, which marks a distinct improvement in the art. The fact that this improvement was made not by manufacturers of tool steel, but in the course of the adoption of standards, shows both the necessity and fruitfulness of methodical and careful investigation in the choice of much neglected details. The economy to be gained through the adoption of uniform standards is hardly realized at all by the managers of this country. No better illustration of this fact is needed than that of the present condition of the cutting tools used throughout the machine shops of the United States. Hardly a shop can be found in which tools made from a dozen different qualities of steel are not used side by side, in many cases with little or no means of telling one make from another; and in addition, the shape of the cutting edge of the tool is in most cases left to the fancy of each individual workman. When one realizes that the cutting speed of the best treated air hardening steel is for a given depth of cut, feed and quality of metal being cut, say sixty feet per minute, while with the same shaped tool made from the best carbon tool steel and with the same conditions, the cutting speed will be only twelve feet per minute, it becomes apparent how little the necessity for rigid standards is appreciated.

Let us take another illustration. The machines of the country are still driven by belting. The motor drive, while it is coming, is still in the future. There is not one establishment in one hundred that does not leave the care and tightening of the belts to the judgment of the individual who runs the machine, although it is well known to all who have given any study to the subject that the most skilled machinist cannot properly tighten a belt without the use of belt clamps fitted with spring balances to properly register the tension. And the writer showed in a paper entitled "Notes on Belting" presented to The American Society of Mechanical Engineers in 1893, giving the results of an experiment tried on all of the belts in a machine shop and extending through nine years, in which every detail of the care and tightening and tension of each belt was recorded, that belts properly cared for according to a standard method by a trained laborer would average twice the pulling power and only a fraction of the interruptions to manufacture of those tightened according to the usual methods. The loss now going on throughout the country from failure to adopt and maintain standards for all small details is simply enormous.

It is, however, a good sign for the future that a firm such as Messrs. Dodge & Day of Philadelphia, who are making a specialty of standardizing machine shop details, find their time fully occupied.

What may be called the "exception principle" in management is coming more and more into use, although, like many of the other elements of this art, it is used in isolated cases, and in most instances without recognizing it as a principle which should extend throughout the entire field. It is not an uncommon sight, though a sad one, to see the manager of a large business fairly swamped at his desk with an ocean of letters and reports, on each of which he thinks that he should put his initial or stamp. He feels that by having this mass of detail pass over his desk he is keeping in close touch with the entire business. The exception principle is directly the reverse of this. Under it the manager should receive only condensed, summarized, and invariably comparative reports, covering, however, all of the elements entering into the management, and even these summaries should all be carefully gone over by an assistant before they reach the manager, and have all of the exceptions to the past averages or to the standards pointed out, both the especially good and especially bad exceptions, thus giving him in a few minutes a full view of progress which is being made, or the reverse, and leaving him free to consider the broader lines of policy and to study the character and fitness of the important men under him. The exception principle can be applied in many ways, and the writer will endeavor to give some further illustrations of it later.

The writer has dwelt at length upon the desirability of concentrating as much as possible clerical and brain work in the planning department. There is, however, one such important exception to this rule that it would seem desirable to call attention to it. As already stated, the planning room gives its orders and instructions to the men mainly in writing and of necessity must also receive prompt and reliable written returns and reports which shall enable its members to issue orders for the next movement of each piece, lay out the work for each man for the following day, properly post the balance of work and materials accounts, enter the records on cost accounts and also enter the time and pay of each man on the pay sheet. There is no question that all of this information can be given both better and cheaper by the workman direct than through the intermediary of a walking time keeper, providing the proper instruction and report system has been introduced in the works with carefully ruled and printed instruction and return cards, and particularly providing a complete mnemonic system of symbols has been adopted so as to save the workmen the necessity of doing much writing. The principle to which the writer wishes to call particular attention is that the only way in which workmen can be induced to write out all of this information accurately and promptly is by having each man write his own time while on day work and pay when on piece work on the same card on which he is to enter the other desired information, and then refusing to enter his pay on the pay sheet until after all of the required information has been correctly given by him. Under this system as soon as a workman completes a job and at quitting time, whether the job is completed or not, he writes on a printed time card all of the information needed by the planning room in connection with that job, signs it and forwards it at once to the planning room. On arriving in the planning room each time card passes through the order of work or route clerk, the balance clerk, the cost clerk, etc., on its way to the pay sheet, and unless the workman has written the desired information the card is sent back to him, and he is apt to correct and return it promptly so as to have his pay entered up. The principle is clear that if one wishes to have routine clerical work done promptly and correctly it should somehow be attached to the pay card of the man who is to give it. This principle, of course, applies to the information desired from inspectors, gang bosses and others as well as workmen, and to reports required from various clerks. In the case of reports, a pay coupon can be attached to the report which will be detached and sent to the pay sheet as soon as the report has been found correct.

Before starting to make any radical changes leading toward an improvement in the system of management, it is desirable, and for ultimate success in most cases necessary, that the directors and the important owners of an enterprise shall be made to understand, at least in a general way, what is involved in the change. They should be informed of the leading objects which the new system aims at, such, for instance, as rendering mutual the interests of employer and employee through "high wages and low labor cost," the gradual selection and development of a body of first class picked workmen who will work extra hard and receive extra high wages and be dealt with individually instead of in masses. They should thoroughly understand that this can only be accomplished through the adoption of precise and exact methods, and having each smallest detail, both as to methods and appliances, carefully selected so as to be the best of its kind. They should understand the general philosophy of the system and should see that, as a whole, it must be in harmony with its few leading ideas, and that principles and details which are admirable in one type of management have no place whatever in another. They should be shown that it pays to employ an especial corps to introduce a new system just as it pays to employ especial designers and workmen to build a new plant; that, while a new system is being introduced, almost twice the number of foremen are required as are needed to run it after it is in; that all of this costs money, but that, unlike a new plant, returns begin to come in almost from the start from improved methods and appliances as they are introduced, and that in most cases the new system more than pays for itself as it goes along; that time, and a great deal of time, is involved in a radical change in management, and that in the case of a large works if they are incapable of looking ahead and patiently waiting for from two to four years, they had better leave things just as they are, since a change of system involves a change in the ideas, point of view and habits of many men with strong convictions and prejudices, and that this can only be brought about slowly and chiefly through a series of object lessons, each of which takes time, and through continued reasoning; and that for this reason, after deciding to adopt a given type, the necessary steps should be taken as fast as possible, one after another, for its introduction. The directors should be convinced that an increase m the proportion of non-producers to producers means increased economy and not red tape, providing the non-producers are kept busy at their respective functions. They should be prepared to lose some of their valuable men who cannot stand the change and also for the continued indignant protest of many of their old and trusted employees who can see nothing but extravagance in the new ways and ruin ahead. It is a matter of the first importance that, in addition to the directors of the company, all of those connected with the management should be given a broad and comprehensive view of the general objects to be attained and the means which will be employed. They should fully realize before starting on their work and should never lose sight of the fact that the great object of the new organization is to bring about two momentous changes in the men:

First. A complete revolution in their mental attitude toward their employers and their work.

Second. As a result of this change of feeling such an increase in their determination and physical activity, and such an improvement in the conditions under which the work is done as will result in many cases in their turning out from two to three times as much work as they have done in the past.

First, then, the men must be brought to see that the new system changes their employers from antagonists to friends who are working as hard as possible side by side with them, all pushing in the same direction and all helping to bring about such an increase in the output and to so cheapen the cost of production that the men will be paid permanently from thirty to one hundred per cent more than they have earned in the past, and that there will still be a good profit left over for the company. At first workmen cannot see why, if they do twice as much work as they have done, they should not receive twice the wages. When the matter is properly explained to them and they have time to think it over, they will see that in most cases the increase in output is quite as much due to the improved appliances and methods, to the maintenance of standards and to the great help which they receive from the men over them as to their own harder work. They will realize that the company must pay for the introduction of the improved system, which costs thousands of dollars, and also the salaries of the additional foremen and of the clerks, etc., in the planning room as well as tool room and other expenses and that, in addition, the company is entitled to an increased profit quite as much as the men are. All but a few of them will come to understand in a general way that under the new order of things they are cooperating with their employers to make as great a saving as possible and that they will receive permanently their fair share of this gain.

Then after the men acquiesce in the new order of things and are willing to do their part toward cheapening production, it will take time for them to change from their old easy-going ways to a higher rate of speed, and to learn to stay steadily at their work, think ahead and make every minute count. A certain percentage of them, with the best of intentions, will fail in this and find that they have no place in the new organization, while still others, and among them some of the best workers who are, however, either stupid or stubborn, can never be made to see that the new system is as good as the old; and these, too, must drop out. Let no one imagine, however, that this great change in the mental attitude of the men and the increase in their activity can be brought about by merely talking to them. Talking will be most useful—in fact indispensable—and no opportunity should be lost of explaining matters to them patiently, one man at a time, and giving them every chance to express their views.

Their real instruction, however, must come through a series of object lessons. They must be convinced that a great increase in speed is possible by seeing here and there a man among them increase his pace and double or treble his output. They must see this pace maintained until they are convinced that it is not a mere spurt; and, most important of all, they must see the men who "get there" in this way receive a proper increase in wages and become satisfied. It is only with these object lessons in plain sight that the new theories can be made to stick. It will be in presenting these object lessons and in smoothing away the difficulties so that tile high speed can be maintained, and in assisting to form public opinion in the shop, that the great efficiency of functional foremanship under the direction of the planning room will first become apparent.

In reaching the final high rate of speed which shall be steadily maintained, the broad fact should be realized that the men must pass through several distinct phases, rising from one plane of efficiency to another until the final level is reached. First they must be taught to work under an improved system of day work. Each man must learn how to give up his own particular way of doing things, adapt his methods to the many new standards, and grow accustomed to receiving and obeying directions covering details, large and small, which in the past have been left to his individual judgment. At first the workmen can see nothing in all of this but red tape and impertinent interference, and time must be allowed them to recover from their irritation, not only at this, but at every stage in their upward march. If they have been classed together and paid uniform wages for each class, the better men should be singled out and given higher wages so that they shall distinctly recognize the fact that each man is to be paid according to his individual worth. After becoming accustomed to direction in minor matters, they must gradually learn to obey instructions as to the pace at which they are to work, and grasp the idea, first, that the planning department knows accurately how long each operation should take; and second, that sooner or later they will have to work at the required speed if they expect to prosper. After they are used to following the speed instructions given them, then one at a time they can be raised to the level of maintaining a rapid pace throughout the day. And it is not until this final step has been taken that the full measure of the value of the new system will be felt by the men through daily receiving larger wages, and by the company through a materially larger output and lower cost of production. It is evident, of course, that all of the workmen in the shop will not rise together from one level to another. Those engaged in certain lines of work will have reached their final high speed while others have barely taken the first step. The efforts of the new management should not be spread out thin over the whole shop. They should rather be focused upon a few points, leaving the ninety and nine under the care of their former shepherds. After the efficiency of the men who are receiving special assistance and training has been raised to the desired level, the means for holding them there should be perfected, and they should never be allowed to lapse into their old ways. This will, of course, be accomplished in the most permanent way and rendered almost automatic, either through introducing task work with a bonus or the differential rate.

Before taking any steps toward changing methods the manager should realize that at no time during the introduction of the system should any broad, sweeping changes be made which seriously affect a large number of the workmen. It would be preposterous, for instance, in going from day to piece work to start a large number of men on piece work at the same time. Throughout the early stages of organization each change made should affect one workman only, and after the single man affected has become used to the new order of things, then change one man after another from the old system to the new, slowly at first, and rapidly as public opinion in the shop swings around under the influence of proper object lessons. Throughout a considerable part of the time, then, there will be two distinct systems of management in operation in the same shop; and in many cases it is desirable to have the men working under the new system managed by an entirely different set of foremen, etc., from those under the old.

The first step, after deciding upon the type of organization, should be the selection of a competent man to take charge of the introduction of the new system. The manager should think himself fortunate if he can get such a man at almost any price, since the task is a difficult and thankless one and but few men can be found who possess the necessary information coupled with the knowledge of men, the nerve, and the tact required for success in this work. The manager should keep himself free as far as possible from all active part in the introduction of the new system. While changes are going on it will require his entire energies to see that there is no falling off in the efficiency of the old system and that the quality and quantity of the output is kept up. The mistake which is usually made when a change in system is decided upon is that the manager and his principal assistants undertake to make all of the improvements themselves during their spare time, with the common result that weeks, months, and years go by without anything great being accomplished. The respective duties of the manager and the man in charge of improvement, and the limits of the authority of the latter should be clearly defined and agreed upon, always bearing in mind that responsibility should invariably be accompanied by its corresponding measure of authority.

The worst mistake that can be made is to refer to any part of the system as being "on trial." Once a given step is decided upon, all parties must be made to understand that it will go whether any one around the place likes it or not. In making changes in system the things that are given a "fair trial" fail, while the things that "must go," go all right.

To decide where to begin is a perplexing and bewildering problem which faces the reorganizer in management when he arrives in a large establishment. In making this decision, as in taking each subsequent step, the most important consideration, which should always be first in the mind of the reformer, is "what effect will this step have upon the workmen?" Through some means (it would almost appear some especial sense) the workman seems to scent the approach of a reformer even before his arrival in town. Their suspicions are thoroughly aroused, and they are on the alert for sweeping changes which are to be against their interests and which they are prepared to oppose from the start. Through generations of bitter experiences working men as a class have teamed to look upon all change as antagonistic to their best interests. They do not ask the object of the change, but oppose it simply as change. The first changes, therefore, should be such as to allay the suspicions of the men and convince them by actual contact that the reforms are after all rather harmless and are only such as will ultimately be of benefit to all concerned. Such improvements then as directly affect the workmen least should be started first. At the same time it must be remembered that the whole operation is of necessity so slow that the new system should be started at as many points as possible, and constantly pushed as hard as possible. In the metal working plant which we are using for purposes of illustration a start can be made at once along all of the following lines:

First. The introduction of standards throughout the works and office.

Second. The scientific study of unit times on several different kinds of work.

Third. A complete analysis of the pulling, feeding power and the proper speeding of the various machine tools throughout the place with a view of making a slide rule for properly running each machine.

Fourth. The work of establishing the system of time cards by means of which ultimately all of the desired information will be conveyed from the men to the planning room.

Fifth. Overhauling the stores issuing and receiving system so as to establish a complete running balance of materials.

Sixth. Ruling and printing the various blanks that will be required for shop returns and reports, time cards, instruction cards, expense sheets, cost sheets, pay sheet, and balance records; storeroom; tickler; and maintenance of standards, system, and plant, etc.; and starting such functions of the planning room as do not directly affect the men.

If the works is a large one, the man in charge of introducing the system should appoint a special assistant in charge of each of the above functions just as an engineer designing a new plant would start a number of draftsmen to work upon the various elements of construction. Several of these assistants will be brought into close contact with the men, who will in this way gradually get used to seeing changes going on and their suspicion, both of the new men and the methods, will have been allayed to such an extent before any changes which seriously affect them are made, that little or no determined opposition on their part need be anticipated. The most important and difficult task of the organizer will be that of selecting and training the various functional foremen who are to lead and instruct the workmen, and his success will be measured principally by his ability to mold and reach these men. They cannot be found, they must be made. They must be instructed in their new functions largely, in the beginning at least, by the organizer himself; and this instruction, to be effective, should be mainly in actually doing the work. Explanation and theory Will go a little way, but actual doing is needed to carry conviction. To illustrate: For nearly two and one-half years in the large shop of the Bethlehem Steel Company, one speed boss after another was instructed in the art of cutting metals fast on a large motor-driven lathe which was especially fitted to run at any desired speed within a very wide range. The work done in this machine was entirely connected, either with the study of cutting tools or the instruction of speed bosses. It was most interesting to see these men, principally either former gang bosses or the best workmen, gradually change from their attitude of determined and positive opposition to that in most cases of enthusiasm for, and earnest support of, the new methods. It was actually running the lathe themselves according to the new method and under the most positive and definite orders that produced the effect. The writer himself ran the lathe and instructed the first few bosses. It required from three weeks to two months for each man. Perhaps the most important part of the gang boss's and foreman's education lies ill teaching them to promptly obey orders and instructions received not only from the superintendent or some official high in the company, but from any member of the planning room whose especial function it is to direct the rest of the works in his particular line; and it may be accepted as an unquestioned fact that no gang boss is fit to direct his men until after he has learned to promptly obey instructions received from any proper source, whether he likes his instructions and the instructor or not, and even although he may be convinced that he knows a much better way of doing the work. The first step is for each man to learn to obey the laws as they exist, and next, if the laws are wrong, to have them reformed in the proper way.