Part 25
16. Illustrate a form of time card which provides for an entire day's production record. Why is this a dangerous form to use?
17. Illustrate a form of time card for a record of one job, suitable for a business with which you are familiar. How is it used?
18. Describe the principal features of the different classes of mechanical time recorders, designed to record the time worked on specific jobs.
19. Name a business in which cumulative time records can be used to advantage.
20. Illustrate and explain a form for a piece work record, suitable for a business of your selection.
21. Illustrate a suitable form of pay─roll sheet to include records of both total and job times.
22. If the total time shown by the job cards does not agree with the clock record, how should the discrepancy be adjusted?
23. To what account should time shown by idle cards, and time unaccounted for, be charged, and how should it be distributed?
24. How can standard costs be determined? Why should the inefficiency burden be added as a separate charge?
25. Why should a detailed record of every employe be kept?
26. Illustrate suitable forms for applicants' and employes' record cards. How should these be indexed?
27. What is a _production order_? a _shop order_?
28. Name and give examples of four classes of production orders.
29. Illustrate a form of production order, suitable for a business of your selection.
30. How are the instructions of the superintendent given to the foreman? Illustrate a suitable form.
31. Explain, and give an example of the use of, _standing orders_.
32. Name three good reasons why a record of manufacturing orders should be maintained.
REVIEW QUESTIONS
ON THE SUBJECT OF
GENERAL EXPENSE AND COST SUMMARIES
1. Explain the relationship between expense and cost of production and why the former should be absorbed by the latter.
2. Why is manufacturing expense related to cost rather than selling price?
3. Why is the labor cost of production considered the most reliable basis for calculating expense?
4. What is a safe rule to follow in the segregation of pay─roll into productive and non─productive labor?
5. Why is expense not added to operating costs?
6. For a factory with, say, twelve departments or processes, some 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