without any machinery, some with machinery in operation all the time,
and others where it is running but part of the time, what means for
handling the factory expense would you recommend and why?
7. What do you consider the value of machine rates and where can they
be used to advantage?
8. When selling expense is not included in the general expense
distribution, how is rate of same arrived at and the selling cost found?
9. Wherein would be the error to carry all the factory operating and
general expense in one account and distribute both by one average rate
for the entire plant?
10. The trial balance shows a debit balance for _operating expense_
Dept. F and a credit balance for Dept. G. What do these balances mean?
How should they appear on the balance sheet?
11. The debit balance of _operating expense_ Dept. F, at the end of the
month, is $100; at the end of the next month it is $200. What does this
increase signify and what should be done?
12. The credit balance of _operating expense_ Dept. G at the end of the
month is $100; at the end of the next month it is $200. What should be
done in this case?
13. The trial balance shows but one item of general expense──the
_distribution account_. How would you proceed to analyze the various
subdivisions of _general expense_?
14. Is a department operated at 50% of its productive labor necessarily
operated with any less efficiency than another where the expense is but
25%. Why?
15. The operating statement shows increasing percentages each month.
What does this condition of affairs reveal and what two ways are at
once suggested for improving the situation?
16. A foreman, to have the operating expense of his department show
more favorably, diverts his expense charges onto other work. How can
such irregularities generally be detected?
17. A workman's wage is 30 cents per hour in a department whose
operating expense is 40% of its productive labor and whose general
expense is 33⅓%. How much per hour should the company charge for
this man's services on a repair job in order to make a profit of 20%?
18. Calculate the departmental and general expense percentage rates for
distribution in a factory whose operating figures are shown as follows:
Operating Expense Productive Labor
Dept. A $2,619.20 $7,342.88
" B 1,234.56 6,439.71
" C 419.06 4,206.83
" D 549.70 1,070.30
Distribution Account 6,088.14
Total Productive Labor 25,281.49
19. Draw up a form for cost sheet and show thereon the cost of a job
done in the above plant whose direct charges are as follows, using the
next even percentage in each case:
Labor Dept. A $125.10
" " B 75.20
" " C 100.30
" " D 25.40
Material 150.50
20. What method should be used by the cost department to collect data
showing material and labor costs?
REVIEW QUESTIONS
ON THE SUBJECT OF
MACHINE SHOP MANAGEMENT
1. Why were the early New Englanders forced to become manufacturers?
2. What was the occasion of the first _boycotting_ movement in this
country?
3. What is meant by a _combination of capital_?
4. Describe the operations carried on by a combination of capital
in acquiring possession of various small plants in the same line of
manufacture.
5. What is _Interchangeable Manufacturing_?
6. When were Milling Cutters first made?
7. Who introduced interchangeable manufacturing in this country?
8. What invention brought Eli Whitney into public notice?
9. What are the principal objects sought in modern manufacturing?
10. How can you account for the largely increased output per employee
of the present day as compared with former times?
11. What is meant by _Machine Shop Management_?
12. What are the principal departments of a manufacturing plant
building machinery and like products?
13. What are the secondary departments or rooms?
14. Where is the Power House usually located, and why?
15. What is meant by _lines of authority_ in shop organization?
16. What is the regular channel of official communication from the
General Manager down to the Workmen?
17. What is meant by the _Police Regulations_ of the shop?
18. What officials enforce the police regulations?
19. How would you seek to promote the loyalty of the working force?
20. What is meant by the _Suggestion System_?
21. What are the seven principal requirements of Shop Methods and
Records?
22. Describe the necessary steps in the employment of workmen, from the
application for a position to setting the man to work.
23. How are records of individual standing determined?
24. What usually constitutes the largest item of cost in the
manufactory?
25. What is a _Time Recording Clock_? How is it used?
26. What is a _Production Order_?
27. With what officials do production orders originate?
28. What is a _Plant Order_?
29. How are stock and material obtained from the Store─Room?
30. How are orders traced and followed through the different
departments?
31. How are tools obtained from the Tool Room?
32. How does the Tool Keeper ascertain who has certain tools?
REVIEW QUESTIONS
ON THE SUBJECT OF
COST─ANALYSIS ENGINEERING
1. What is the object of cost keeping and cost analysis? Of cost
distribution?
2. What is "cost?"
3. What five essentials must a cost─keeping system possess?
4. What are _overhead expenses_?
5. What are the four most common ways of time─keeping? Give the basis
of each method.
6. What are some of the difficulties that confront the time─keeper when
taking time in the field?
7. How is brickwork measured? plastering? pavement? earthwork?
8. What is a _bonus_? How may a bonus system be applied to construction
work, and what are some of its advantages?
9. Devise a method for measuring the work done by a steam shovel in
each shift. Method to be operated by an engineer or inspector, and must
be quick and easy. No instrument to be used.
10. Upon what is the payment of the contractor from time to time based?
Does this always give the contractor all that is due him?
11. What is an _unbalanced bid_? Why are they sometimes used? What is
the objection to them?
12. What advantage can you see in process cost analysis? Make such
analysis for erecting centering for concrete factory.
13. Devise method for measuring brickwork so that work of each
bricklayer can be determined and credited to the right man. Do same for
dimension stone work.
14. What advantages are claimed for the piece─work system?
15. What is an _unclassified_ contract in excavation?
16. What effect may discharges have on work? State both good and bad.
17. Why avoid the storage of cement during winter when none is being
used?
18. Should men be left in entire ignorance of the condition of work?
How far should the distribution of information be made on the job?
19. What principles should guide the design of new methods on work, and
what opposition is likely to be encountered?
20. Why are labor organizations generally opposed to piece─work and
bonuses?
21. What effect may slight raise of pay have on men's work? decrease of
pay?
22. What is the advantage of performance and efficiency charts over
tabulated reports?
23. What sort of foreman is most efficient?
24. What is _stumpage_?
25. What is a _differential piece─rate_?
26. What is the best way of getting the men to arrive on time in the
morning?
27. Why is it easier to estimate cost of work to be done by the daily
men, than that to be done by the monthly men?
28. How many men can a foreman supervise while he is doing work himself?
29. What is _lost foreman's time_?
30. What are the advantages and disadvantages of punch─cards as against
time─keepers' slips?
31. How many men, ordinarily, can one foreman efficiently supervise in
the field?
INDEX
A
Application card, 221
B
Bonus systems, 298
Boston ledger form, 175
adopted for continuous cost record, 174
By─products, 182
C
Calculagraph, 90
Calculagraph time card with coupons, 94
Capital and labor, relations of, 196
Card form for special quotations, 16
Card record of a past employe, 109
Card showing complete record of an employe, 108
Catalogue filing and indexing, 12
files, 13
indexing, 14
Chart records, 164
Combinations of capital, 197
Comparative record of material costs, 180
Comparison of costs of standing expense orders, monthly, 181
Controlling accounts, 185
Cost─analysis engineering, 251─318
chronological charts, 318
cost keeping, 288
cost reduction, 292
cost showing, 282
cost subdivision, 277
definition of, 251
discipline, 302
educational supervision, 256
field layout, 313
gang work, 254
individual incentive, 253
instructions to foremen, 307
introduction of new methods, 311
labor─saving devices, 305
Cost─analysis engineering
material supply, 316
modern manager, 251
old vs. new machinery, 317
output, 280
rewards, 255
science of management, 253
standard instructions, 318
stimulating the men, 296
bonus systems, 298
bulletin board posting, 299
discharges, 297
early hours, 300
education on the work, 301
enough foremen, 300
gang and team work, 299
high pay, 299
prompt pay, 300
watching work, 296
subdivision of duties, 257
unbalanced bids, 316
use of charts, 284
use of maps, 318
Cost getting, 262
cost distribution, 267
foreman's report, 267
punch─cards, 264
time─keeper, 262
written time cards, 266
Cost summaries, 165─190
continuous process factories, 182
controlling accounts, 185
for small shops and repair jobs, 178
cost data, 166
comparative cost records, 177
job costs, 171
labor costs, 170
material cost reports, 168
material costs, 167
production records, 183
Cumulative job time card, 96
Cumulative time records, 95
D
Daily record of piece work, 99
Daily record of time of one man, 82
Daily report of transfer clerk, 122
Daily time card for machine operations, 83
Day wage, 66
Departmental expense, 143
Departmental labor distribution sheet, 172
E
Efficiency chart indicating cost of channeling rock, 285
Efficiency chart showing costs in connection with steam─shovel
work, etc., 286
Emerson efficiency system of wage, 71
Employe card showing complete record of, 108
Employes
paying, 103
records of, 106
Employment card, 222
Engineering, cost─analysis, 251─318
Expense distribution, 127
basis of, 128
on cost of labor, 131
on cost of material, 131
on cost price, 130
on selling price, 130
methods of, 132
machine─hour rate, 134
man─hour rate, 133
percentage, 137
selling expense, 129
time cost, 128
F
Forms
application card, 221
Boston ledger form adapted for continuous cost record, 174
calculagraph time card with coupons, 94
card form for special quotations, 16
card record of a past employe, 109
card showing complete record of an employe, 108
comparative record of material costs, 180
cost summary for use of a machine shop, 177
cost summary for small shops and repair jobs, 178
cumulative job time card, 96
daily record of piece work, 99
daily record of time of one man, 82
daily report of transfer clerk, 122
daily time card for machine operations, 83
departmental labor distribution sheet, 172
efficiency chart indicating cost of channeling rock, 285
efficiency chart showing costs in connection with steam─shovel
work, etc., 286
Emerson efficiency wage system, chart of, 72
employe, card showing complete record of, 108
employment card, 222
foreman's daily report of shop production, 122
front and reverse of card showing total production and progress
of orders, 120
Gantt premium wage system, chart of, 71
general operating expense, tabulation of, 160
graphic chart showing fluctuations in labor costs, 162
graphic chart showing fluctuations in operating expense, 163
Halsey premium wage system, chart of, 69
individual record card, 224
individual time record card used with calculagraph, 99
inventory for machine tools, 34
inventory for small tools, 63
inventory of manufactured goods, 40
inventory of parts and finished stores, 38
inventory record of small tools, 35
inventory sheet for drawings and patterns, 36
inventory sheet for materials and supplies, 37
inventory work in process, 39
invoice, 243
job card showing names of operations, 86
job card used with Dey time register, individual, 88
job card with time chart, 85
job time sheet used with Dey time register, 89
job time summary, 234
journal showing adjusting entries, 188
labor cost, comparison of, 179
labor─saving inventory tag, 31
loose─leaf form for inventory of machinery and equipment, 33
loose─leaf record of goods ordered and received, 21
manifold order blanks, 25
manufacturing order register, showing location of work in shop, 119
material returned to stock, record of, 57
monthly comparison of costs of standing expense orders, 181
monthly recapitulation of job costs, 184
monthly statement of material issued, 169
monthly statement of supplies issued, 171
official communications, 217
operations tag used in an underwear mill, 97
order record of manufacturer, 20
pay─roll sheet, 237
piece─work and time record combined for pay─roll purposes, 102
plant order, 240
private ledger labor account, 141
private ledger operating expense account, 143
production order, 238
production order which is an exact copy of customer's order, 112
production order to superintendent, 112
production record for determining piece rates, 100
production record of a gang of piece workers, 98
punch─card for recording work of dump trains in excavation work, 274
punch─card for recording work of excavation with steam shovel, 273
quotation card for records of pieces of several sizes, 18
recapitulation of costs for a single job, 176
recapitulation of departmental labor and material costs, 173
record card for applicants for employment, 106
record card of employe, 107
record of orders, including price and amount, 19
record of orders placed, detailed, 19
record of orders providing for details of each order, 20
record of parts in stock, 56
record of total time, sheet for, 101
record of unfinished piece work, 100
reports of goods received, 26
report of materials transferred, 58
requisition, 242
requisition blank, 23
requisition for material, special departmental, 49
requisition for material to be used on a production order, 48
returned material card, 244
service card, 223
shop order, 114
shop order with name of shop, 116
shop order showing progress of work, 116
shop order showing total work cards, 115
special stock record of machine tools, 62
statement of departmental expense made to foremen, 161
statement of departmental operating expense, 157
stock ledger card, 242
stock record of materials and supplies, 52
stock record showing orders placed, 53
stores card used by manufacturer, 54
stores card for supplies, 55
stores clerk's report of low stock, 24
stores record of parts and finished stores, 56
stores record which includes values, 55
subject card for catalogue index, 14
sub─production order, 239
Taylor differential wage system, chart of, 70
time card used with calculagraph, 92
time card for carpenters and flask makers, 228
time card, day, 231
time card for day's operations, coupon, 84
time card used with International elapsed time recorder, 93
time card, job, 232
time card for machine shop, 229
time card for pattern shop, 227
time─keeper's card, 266
time─keeper's slip, 264
time─keeper's note book, 269
time record made by calculagraph, 91
title card for catalogue index, 15
tool check board, 248
transfer card, 246
transfer clerk's card tray, 247
weekly time pay card used in Rochester recorder, 79
weekly time record as made by the Dey time register, 80
weekly time records for piece workers, 97
work order with time and material records, 81
Front and reverse of card showing total production and progress
of orders, 120
G
Gantt bonus system of wage, 70
General expense, 143, 158
General expense and cost summaries, 127─190
General operating expense, tabulation of, 160
Graphic chart showing fluctuations in labor costs, 162
Graphic chart showing fluctuations in operation expense, 163
H
Halsey premium wage system, 68
I
Individual record card, 224
Individual time record card used with calculagraph, 99
Industrial conditions, betterment of, 199
Industrial enterprises, development of American, 195
Interchangeable manufacturing, 200
Inventory for machine tools, 34
Inventory for small tools, 63
Inventory of manufactured goods, 40
Inventory of parts and finished stores, 38
Inventory record of small tools, 35
Inventory sheet for drawings and patterns, 36
Inventory sheet for materials and supplies, 37
Inventory, taking, 29
Inventory, work in process, 39
Invoice, 243
J
Job card showing names of operations, 86
Job card used with Dey time register, individual, 88
Job card with time chart, 85
Job costs, 171
Job time cards, 85
Job time sheet used with Dey time register, 89
Job time summary, 234
Journal showing adjusting entries, 188
L
Labor costs, 170
comparison of, 179
Labor records, 65
paying employes, 103
piece─work records, 97
production time records, 81
records of employes, 106
time keeping, 74
wage system, 66
Labor─saving inventory tag, 31
Loose─leaf form for inventory of machinery and equipment, 33
Loose─leaf record of goods ordered and received, 21
M
Machine─shop management, 193─249
manufacturing plant, 205
manufacturing work, 238
methods and records, 220
modern meaning of, 204
official communications, 217
plant orders, 240
production orders, 239
shop management, 215
storing and issuing materials, 241
successful management, 218
tracing orders, follow─up methods for, 245
Machinery and equipment records, 58
Manifold order blanks, 25
Manufacturing, 193
American, 195
conditions and developments, 193
early New England mechanics, 194
interchangeable, 200
methods of modern, 200
Manufacturing order register, 121
showing location of work in shop, 119
Manufacturing orders, 110─125
production, 111
records of, 119
shop, 115
standing, 118
tracing, 124
work, 117
Manufacturing plant, typical, 205
layout of, 206
organization of, 210
Manufacturing work, 238
Material costs, 167
comparative record of, 180
Material returned to stock, 57
Mechanical time records, 87
Mechanics, early New England, 194
N
Non─productive labor, 140
O
Official communications, 217
Operating expense statements, 150
charts, 164
comparative figures, 154
expense of manufacturing departments, 155
general expense statement, 158
lengthy statements undesirable, 151
source of data used, 155
statements for foremen, 159
tabulate essentials, 152
what statement should show, 153
Operations tag used in an underwear mill, 97
Order record of manufacturer, 20
P
Paying employes, 103
Pay─roll distribution, 142
Pay─roll sheet, 237
Percentage method of expense distribution, 139
departmental expenses, 143
expense ledger, 140, 149
general expense, 143
how to use, 146
journal entry for distribution, 148
non─productive labor, 140
pay─rolls dissected, 141
periods for comparison, 141
power, 144
production ledger, 140
productive labor, 139
productive labor and expense compared, 145
results of distribution, 149
undistributed balances, 149
Piece─rate plan of wage, 67
Piece rates, 98
Piece─work records, 97
Piece─work and time record combined for pay─roll purposes, 102
Plant order, 240
Premium system of wage, 67
Emerson, 71
Gantt, 70
Halsey, 68
Taylor, 69
Private ledger labor account, 141
Private ledger operating expense account, 143
Production orders, 111
copy of customer's order, 112
form of, 238
to superintendent, 112
Production records, 183
for determining piece rates, 100
of a gang of piece workers, 98
Production time records, 81
cumulative, 95
daily time card, 83
job time cards, 85
mechanical, 87
on work orders, 82
Productive labor, 139
Productive labor and expense compared, 145
Punch─cards, 272
for recording work of dump trains in excavation work, 274
for recording work of excavation with steam shovel, 273
Purchasing department, 11
catalogue filing and indexing, 12
department routine, 22
checking invoices, 27
checking receipts, 26
filing, 27
low stock report, 24
purchase orders, 24
requisitions, 22
list of dealers, 11
orders placed, 18
special quotations, 16
Purchasing and stores department, 11─63
Q
Quotation card for records of prices of several sizes, 18
R
Recapitulation of costs for a single job, 176
Recapitulation of departmental labor and material costs, 173
Recapitulation of job costs, monthly, 184
Record card, 225
for applicants for employment, 106
of employe, 107
Records of employes, 106
application card, 108
employe's card, 109
past employe's card, 110
Records of labor, 65─110
Record of orders, including price and amount, 19
Record of orders placed, detailed, 19
Record of orders providing for details of each order, 20
Record of parts in stock, 56
Record of total time, sheet for, 101
Record of unfinished piece work, 100
Report of goods received, 26
Report of materials transferred, 58
Requisition, 242
Requisition blank, 23
Requisition for material, special departmental, 49
Requisition for material to be used on a production order, 48
Returned material card, 244
S
Selling expense, 129
Service card, 223
Shop management, 215
Shop methods and records, 220
importance of, 220
paying employes, methods of, 235
recording─clock time cards, 230
selection and employment of workmen, 221
standing of men, 224
time─card forms, 227
time keeping, 226
tool─room methods, 247
Shop orders, 115
form, 114
showing progress of work, 116
showing total work cards, 115
with name of shop, 116
Special stock record of machine tools, 62
Standing orders, 118
Statement of departmental expense made to foremen, 161
Statement of departmental operating expense, 157
Statement of material issued, monthly, 169
Statement of supplies issued, monthly, 169
Stock ledger card, 242
Stock record of materials and supplies, 52
Stock record showing orders placed, 53
Stores card used by manufacturer, 54
Stores card for supplies, 55
Stores clerk's report of low stock, 24
Stores department, 28
deliveries, 47
installing, 44
inventory, 29
inventory records, 31
a money saver, 43
organization, 28
receiving of material and supplies, 45
records, 48
Stores records, 48
forms, 51
material returned to stock, 57
material and supplies, 52
material transferred, 57
parts and finished stores, 54
including values, 55
verification of, 50
Subject card for catalogue index, 14
Sub─production order, 239
T
Taylor system of wage, 69
Time book, 76
Time card
used with calculagraph, 92
for carpenters and flask makers, 228
coupon, 84
daily, 83
Dey, 231
used with International elapsed time recorder, 93
job, 85, 232
for machine shop, 229
for pattern shop, 227
Time clocks, 78
Time─keeper's card, 266
Time─keeper's note book, 268
distribution from, 270
Time─keeper's slip, 264
Time keeping
methods of, 74
systems, 76
check, 76
time book, 76
time clocks, 78
Time record as made by the Dey time register, weekly, 80
Time record made by calculagraph, 91
Time records for piece workers, weekly, 97
Time pay card used in Rochester recorder, 79
Title card for catalogue index, 15
Tool room, 59
record of tools, 62
Tool check board, 248
Tools of early mechanic, 196
Transfer card, 246
Transfer clerk's card tray, 247
Tracing orders, 124
True cost, determining, 128
W
Wage systems, 66
day wage, 66
piece rate, 67
premium systems, 67
Emerson, 71
Gantt, 70
Halsey, 68
Taylor, 69
Work orders, 117
with time and material records, 81
TRANSCRIBER'S NOTE
─Obvious print and punctuation errors were corrected.