DEPARTMENT OF COMMERCE

WASHINGTON

MONTHLY NEWS BULLETIN

OF

DIVISION OF SIMPLIFIED PRACTICE

NATIONAL COMMITTEE ON METALS UTILIZATION

NATIONAL COMMITTEE ON WOOD UTILIZATION

AMERICAN MARINE STANDARDS COMMITTEE

April 15, 1927. No. 25

TABLE OF CONTENTS

Paragraphs

Association Activities 6

Education and Industry 26

Federal Specifications . 11 Foreign Standardization 7

Industrial Standardization 15,18,20

Management 1,2,3,13

Marine Standardization 20,30

Metals Utilization 28

Obsolescence 22

Paragraphs

Production and Efficiency,. .4,8,16,21,24,25

Purchasing 17

Retailing .. 5,9

Simplification Reduces Prices 10,23

Simplified Practice ... 27

Slow-moving Stock Problem 19

Style Factor 12

Waste in Distribution 14

Wood Utilization 29

1 . MANAGEMENT WEEK

Last year's Management Week, held Oct. 25 to 30, 1926, met with nation-wide support from business

men, managers, engineers, and other executives. Out of the 116 cities in which the effort was successful. 64 reported 252 meetings with aggregate attendance of over 30,000 who listened to and discussed reports of "Progress in Waste Elimination."

The national organization sponsoring the 1926 Management Week are the American Society of Mechanical

Engineers, the Society of Industrial Engineers, the American Management Association, the Taylor

Society, and the American Institute of Accountants. This same group is sponsoring the 1927 Management Week schedule for next Oct. 24-29. To this group will be added the National Association of

Purchasing Agents, the National Foremen's Association, and possibly some others also of widely

-recognized importance in the business world.

The theme for Management Week, October 24-29, 1927, is "MANAGMENT'S PARTIN MAINTAINING PROSPERITY, "

and is designed to focus nation-wide attention, particularly of those concerned with management problems, on their individual and collective responsibility to contribute to the continuance of prosperity for our country and its people.

Executives of every kind -- corporation presidents, plant managers, engineers, accountants, comptrollers, purchasing agents, sales managers, shop foremen, credit managers, merchants, and others, - who have any responsibility for the efficient and profitable operation of American business enterprises should find in this program an opportunity to demonstrate from their own experiences what

policies, procedures, and practices will help most ta hold our prosperity at its present high level.
Monthly News Bulletin No. 25—2.

If this can bs done, and the gains made in recent years consolidated against recession, a sound

basis will have been established for an advance to even higher levels in the years immediately

ahead

I

The National Committee on Management Week 1927 strongly urges all executives to support this movement, by cooperating with their local committee, by attending and participating in local meetings,

and by encouraging greater public interest in the causes for prosperity and the conditions which

will maintain it

The first Management Week was held in 1922 under the auspices of the Management Division of

the American Society of Mechanical Engineers, the Taylor Society, and the Society of Industrial

Engineers. Since then it has been repeated each year with steadily increasing interest, approval,

and support - last year's response being double that of 1925.

This year, as last, the National Secretary is Ray M. Hudson, Chief of the Division of Simplified Practice. U. S. Department of Commerce. Mr. Hudson is a member of the Taylor Society , also a member of the Advisory Board of the Society of Industrial Engineers.

2. EIGHT RULES ON HOW TO MANAGE TO ELIMINATE WASTE: If we follow the eight rules on How to Manage,

by Mr. W. H. Leffingwell, many of our problems on the elimination of waste will be solved.

Continually putting these into practice, and always having them in mind when establishing our procedures and work controls will assure us of progress in eliminating waste. They are:

'

"1. DEFINE YOUR PURPOSE. You must know what is to be done before you can know How. This is

your master task . 2. ANALYZE YOUR PROBLEM. Your master task will then break up into many detail tasks. Consider them all —neglect none.

3. SEEK THE FACTS: Study every condition governing each task, find the undesirable element

to be eliminated and the desirable element to be retained. Then standardize right con- ditions . 4. DEVISE THE ONE BEST METHOD. Aim to conserve Energy, Time, Space, Material. Determine

relation of details to Master Task.

5. FIND THE PERSON BEST FITTED. For each task, certain personal qualities are essential.

In each person certain qualities predominate. Find the person best fitted.

6. TEACH THE PERSON BEST FITTED THE ONE BEST METHOD. Not by driving but by thorough, patient,

teaching are understanding and skill developed.

7. PLAN CAREFULLY. Right planning of arrangement and sequence of work will enable you to accomplish tasks in Logical Order. Accurately. Quickly, Economically.

8. WIN COOPERATION. Cooperation means working together. It cannot be demanded; it must be won. Accept your share of the responsibility. Respect the rights and aspirations of

others .

This is scientific management, and through scientific management may we expect to eliminate

waste

3. COMMITTEE ON PARTICIPATION IN MANAGEMENT CONGRESS MEETS: The Committee on American Participation in the International Management Congress met on March 5. There were present the following:

H. S. Person, C. W. Lytle. S. B. Rich, M. L. Cooke. Mrs. L. M. Gilbreth, L. W. Wallace,

H D. Greeley, and R. T. Kent. Committees were set up to arrange for the exchange of professors of management with industry.
Monthly News Bulletin No. 25—3.

4. MASS PRODUCTION AID TO PROSPERITY: In discussing the cause and effect of business activity in

the United States, as compared with conditions in Europe, Mr. Benjamin M. Anderson, Jr., of

the Chase National Bank of New York City, speaking before Group 2 of New York State Bankers

Association, said: "Certain European observers of the business activity in the United States

during the last few years have been looking for the magic formula which they could take back

to Europe and apply there with similar results. Some have found it in our high wages. Some

have found it in our mass production. It is true that our great activity in recent years has

been accompanied by high wages and an extension of mass production, but a good deal of analysis

is necessary before we can trace cause and effect in these matters.

Mass production and high wages in the United States are interrelated. On the one hand, high

wages have compelled us to extend mass production. With labor scarce and dear and with natural resources and capital relatively abundant and cheap in the United States, we have been obliged

to economize labor and to use natural resources and capital lavishly. This means mass production. This means standardizing production."

5. HOW ONE MERCHANT IS MEETING COMPETITION BY SIMPLIFYING STOCKS: The Division of Simplified

Practice recently received a letter from the manager of a department store in Grafton, North

Dakota. The story of his efforts to simplify stocks, reduce inventories and increase turnover,

is very interesting. We quote in part from the letter as follows: "The store, of which I am now the head, has been operating for forty years and quite successfully all the time. The

outlook, as we see it, is very satisfactory. We have, it is true, chain store competition in

addition to mail order houses which at times puts us on our toes to secure competitive merchandise but we have found by frequently inventorying stock in the different departments, prior

to purchasing new goods, that we can hold our investment down considerable and show more frequent turnovers by doing so; we can afford to sell goods at a smaller margin of mark up. Naturally the cheaper we can sell merchandise, the more popular is our store as a trading center, Working on this theory, the Primer of Simplified Practice is very interesting, as we have

for instance eliminated practically all but two lines of women's silk hosiery in our store and

actually increased our sales. This stock is invoiced carefully every week and mail orders

sent for filling in sizes and colors, either every week or every second week."

This is the experience of a large number of far-sighted merchants who have applied Simplified

Practice to their retail business.

6. A NEW COMMITTEE ON SIMPLIFICATION: The Southern Supply and Machinery Dealers' Association has

appointed a Simplified Practice Committee to cooperate with the Division of Simplified Practice

in the development of all Simplified Practice Recommendations of interest to the industries

and trade they represent. The organization of similar committees to represent other groups

has been very helpful in creating greater interest in and support for completed simplification.
Monthly News Bulletin No. 25—4.

7. RATIONALIZATION IN GERMANY : The French publication "Le Moniteur de laPapeterie Francaise" for Jan. 1, 1927, states that in the course of a conference held at Cologne, last July, Mr. Edward A . Filene of Boston . well-known economist , said , "When the new economic revolution is accomplished, Germany will have greater liberty than she had before 1914." The article goes on to state that, "Without doubt, when one observes the vast movement of re-grouping, the reorganisation on an unprecedented scale, it is not difficult to sense the trend of Mr. Filene 's thoughts. This economic revolution is simply a process of 'rationalization' in the name of

which the economic leaders of Germany are now effecting these mergers." The writer of the

article defines rationalization as a rational organizing of production for the purpose of,

(a) increasing the profitableness of the industries by cutting down production cost of manufactured products to a minimum; (b) lowering sales prices so as to adapt them to the purchasing power of the consumers; and (c) making it easier for German products to compete in the

world markets.

The Division of Simplified Practice has learned from many sources that the simplification

movement is being taken very seriously in several of the European countries. This makes it

increasingly important that the American manufacturers cooperate to eliminate waste in order

that they might compete for foreign trade.

8. PRODUCTION AND EFFICIENCY: "It is not by chance that the prosperity of the American people has

grown so great." says a recent newspaper editorial. "Back of the enlarged earnings and augmented savings, back of the steady advance in living standards and purchasing powers which

recent years have witnessed are economic factors deeper than those usually responsible for

good or bad seasons. One of these, undoubtedly, is increased efficiency of production. The

average income of workers is greater because their average output is greater. From 1919 to 1925 the volume of production in American manufactures increased twenty-five per cent, notwithstanding that there was a decrease in the number of wage earners employed. Such economies

of operation had much to do with the fact that the income per person gainfully employed grew

from one thousand eight hundred and fifty-one dollars in 1920 to two thousand and ten dollars

in 1926. This gain in production power is attributed by an able observer to fundamental improvements in technique, in machinery, in management, in efficiency of individual workers."

And he adds, "The phenomenon has been almost entirely peculiar to the United States during the

post-war period. It largely explains why it has been possible for wages and profits to rise

together although selling prices have been falling. Such improvements come about slowly; but. once attained, they are likely to exert a steady and permanent influence."

9. BUSINESS KNOWLEDGE ELIMINATES BUSINESS WASTE: A new publication under the title of "Retail

Store Problems," has just been issued by the Department of Commerce, under Domestic Series No.

9. It is a compilation of eight retail studies previously issued as trade information bulletins, for which so great a demand developed that a total edition of 160,000 copies was soon exhausted. Based on interviews with store executives, on trade contacts, and on questionnaires sent to stores of all kinds and sizes, this bulletin presents information of high value

to retail store executives and proprietors. Copies of this new publication may be obtained

through the Superintendent of Documents , Government Printing Of fice , at a price of 20 cents

for each copy.
Monthly News Bulletin No. 25—5.

10 .

11 .

12 .

SIMPLIFICATION MAKES POSSIBLE ANOTHER REDUCTION IN MAZDA PRICES: The New York Times for March

23, carries the announcement that the General Electric Company has made another reduction in

the prices of Mazda incandescent lamps, to become effective on April 1. This is the third

reduction in prices since the new inside-frosted lamps were introduced in 1926. The reduction

lowers the price of 25 and 40 watt lamps to 23 cents each, the 50 and 60 watt sizes to 25

cents each, and the average price of all Mazda lamps to 49.4 per cent less than in 1914. This

reduction is made possible by the elimination of waste through the abandoning of about fortyfive types of lamps and the universal acceptance of the six new types of inside frosted bulbs.

The old type of outside frosted lamp, which absorbed approxima tely 20 percent of the light and

collected considerable dust and dirt with their rough surfaces, sold for approximately three

times as much as the new inside frosted lamp."

UNITED STATES GOVERNMENT MASTER SPECIFICATIONS: The Bureau of Standards of the Department of

Commerce, has just issued their circular No. 319, covering an alphabetical index and numerical

list of U. S. Government Master Specifications, which have been promulgated by the Federal

Specifications Board.

These specifications have been adopted for the mandatory use of all departments and independnt

establishments of the Government. Anyone interested in receiving a copy of this list can obtain it through the Superintendent of Documents, Government Printing Office, Washington, D. C.,

for 10 cents cash or monev order.

These specifications have made it possible to eliminate waste in purchasing for the Federal

Government and great savings have accrued through their use.

SIMPLIFICATION AND THE STYLE FACTOR: In a survey of a thousand residents of Chicago, conducted

by "Sales Management," it was found that only 17.9 per cent of the men were wearing nationally

advertised suits and overcoats. The reasons for this seemingly low percentage may be found in

the following facts, according to "Sales Management." (1) That nationally advertised brands

are, as a usual thing, relatively high in price, (2) It is the policy of national advertisers

to confine their distribution to one retail outlet in a city or town, (3) Most national advertising is limited to the style appeal, in spite of the fact that the survey shows that only 320

of the thousand men interviewed said they bought on style, while 146 admitted they bought on price and 534 said they wanted quality. In this connection it will be of interest to know

that Paul L. Feiss, vice-president of the Joseph & Feiss Company, manufacturers of Clothcraft

clothes , agrees that there is a change taking place in the advertising of men's suits and

overcoats which will take into account durability, construction, and the reasons for changing

styles. Many manufacturers, in changing styles as often as possible so that they might force

the public into buying more suits in order to keep up to the style, hav9 only been hurting

themselves. They have outstripped the average man's pocketbook; there is just so much money

he can spend for clothes, and if he has to buy more suits he will buy cheaper suits. As he

buys cheaper suits he helps lower the standard of the clothing business, until the slogan has

become more-and-cheaper instead of fewer-and-better . " While commodities which are affected by

style, art, design and personal taste are not usually susceptible to simplification, there

are a number of cases on record with the Division of Simplified Practice where manufacturers

of hats, shoes, etc., after analyzing their sales, found it paid to adopt a simplified line.
Monthly News Bulletin No. 25—6.

13. ARMY COURSE IN BUSINESS MANAGEMENT: Among the schools now discussing the principles and ad- ;i vantages of simplification in connection with their courses in business management, is The,

Quartermaster Corps School at Philadelphia. Certain aspects of simplification, standardization. etc., are being stressed to give the student officers some idea of what is being done

along these lines.

14. WASTE IN DISTRIBUTION: In his address before the annual convention of the Wholesale Stationers' Association, Alvin E. Dodd, manager of the department of domestic distribution of the Chamber of Commerce of the United States said: "The next step in economic progress in tho

United States will be to carry the war on waste into the field of distribution." Mr. Dodd saicj

further, "The waste in distribution is as obvious as the waste in production. There are < variety of business practices, such as overselling, cancellations and returns, delays in de- liveries, unethical credit practices, discrimination - every one of which lays the basis foi! a potential dispute, and disputes are a source of waste as definite as the destruction of ma-' terials or fruitless expenditure of labor. These are not the fault of the individual distribu- tor alone, nor can he alone supply the remedy. The practices have crept into distribution

Perhaps they have displaced more wasteful practices. But if they are to be eliminated, the;; must be dealt with by business collectively, by the manufacturer, the wholesaler and the re-i ta i 1 e r

The war on waste in distribution has opened. To be successful it must be carried on inces-i

santly and with unremitting vigor. Production must known the capacity of its market, if il is not to ccmmit the error of creating surpluses of commodities. It is the business of distribution to determine what this capacity is and the most economical and expeditious way oi fighting it."

15. NEED FOR STANDARDIZATION IN ELECTRICAL INDUSTRY: In his address before the Electric Association of Chicago, Samuel Insull said, "Industrial progress is advanced by cooperative study of an industry's problems, with frank interchange of experience and ideas." Among other things

Mr. Insull discussed the appalling lack of standardization in the manufacture of apparatus and

appliances calling attention to the fact that an official of one of the large manufacturing

concerns said his company had designs for 22,000 different industrial motors; that last year

one-half of all orders received by his company were "special," each one requiring some change'

from the standard machine. Mr. Insull says further that—"The lack of standardization in con- nection with the manufacture of domestic and other small appliances, and the adequacy of house

wiring are of most immediate concern. Also that it is impossible to escape the conclusion that

lack of standardization in appliance manufacturing, and the consequent effect upon selling

prices, has been a large factor in retarding the use of such appliances."

16. REWARD OF PRODUCTIVITY: Secretary Hoover recently said: "The high standards of living en- joyed by the American people are the result of steadily mounting per capita productivity. There

is only one way to further advance these standards, and that is by improved methods and processes, by the elimination of waste in materials and motion in production and distribution system. ; The moral and intellectual progress of the nation is noi the offspring of poverty or low living!

standards. The incentives to crime decrease with increasing security; the opportunity fori

education and the growth of understanding are the products of economic degeneration. De-

votion to economic improvement whether in individual effort or in improved methods enlarges

the field of leadership; it is not a stimulant of idle or luxurious living."
Monthly News Bulletin No. 25—7,

17. A NEW COURSE IN PURCHASING: A new course in purchasing is announced by the Robert A. Johnston

College of Business Administration, connected with the Marquette University, Milwaukee. The

work of the faculty will be supplemented by a series of special lectures given by members of

the Milwaukee Association of Purchasing Agents which is enthusiastically sponsoring the project. In the tentative course outline, provision is made for a study of special problems con- fronting the man who buys. Among the items to be discussed are: (a) The application of scientific methods to the purchasing problem; (b) The company laboratory; (c) The Bureau of Standards at Washington; (d) The Division of Simplified Practice, Department of Commerce; (®) Waste

elimination through purchasing.

18 STANDARDIZATION IN THE RADIO INDUSTRY: B.A.J. Carter. Chairman, Standards Committee , Radio

Manufacturers Association, is authority for the statement that "standardization is responsible

for stabilization of the Radio Industry." In outlining the work which has been accomplished

and the future aim of the association, .Mr. Carter points out that "In two years of constant

work along these lines, a degree of standardization has been reached in radio fields which

required from six to ten years in other industries. One of the most important effects has

been the tendency toward stabilization, which is brought about in the following manner; The

raw material supplier is benefited because there is a greater demand for standard material.

Consequently he can anticipate demands, carry a larger stock, and give better deliveries at a reduced cost. The manufacturer having a ready source of raw material can keep his plant running

constantly, make prompt deliveries, thus preventing cancellation of delayed orders. Radio

misfits have practically ceased to exist. Parts are interchangeable, therefore the dealer and

jobber are not required to carry duplicate stocks of parts. The manufacturer has, in this way.

earned the confidence of the trade. In view of this, the jobber and dealer are likely to order in advance of the consumer demand.

Standardization has already enabled manufacturers to furnish the consumer with a better product

at a lower cost. The radio industry has made rapid progress and it is largely due to the foresight of the Radio Manufacturers Association," according to Mr, Carter.

19. SLOW-MOVING STOCK PROBLEM: Mr. Harry P. Bridge, Jr., in "The Electrical Record" for March,

makes the observation that "One of the surest and quickest ways to tell a good merchant from

a poor one is to ascertain the amount of dead or slow-moving stock there is on his shelves.

In the present-day scheme of things neither of these has any place, for success in selling

necessitates a high rate of turnover and a stock selection that is forever new and interesting

Both of the latter are more or less impossible when his store is cluttered with merchandise

that has been there too long. It is well to distinguish between stock that is only ’slow-

• moving' and that which is actually 'dead.' Dead stock is obsolete stock and, as such, had

far better be discarded in its entirety than passed on to customers at any price. Strange as

it may seem, however, slow-moving stock frequently is only a state of mind on the part of the

dealer himself."

Simplified Practice is being recognized on all sides as a constructive plan for more economical

manufacture and increased rate of turnover due to the elimination of slow moving stock.

20 STANDARDIZATION OF MOTOR BOATS; The ratie of motor boats to motor cars is now about as 800,000

to 20.000,000 and while every owner of a motor car is not a potential owner of a motor boat

there are many who would own a boat if the price for boats were in somewhere near the same proportion to the equivalent value in motor cars.
Monthly News Bulletin No. 25—8.

That the same mass production methods that made cars low in price is gaining favor in the

motor boat industry is evidenced by the fact that individual boat manufacturers are turning to standardized models produced on a quantity basis. Mr. Ira Hand, Secretary, National Association of Engine and Boat Manufacturers, Inc., in an article in Motor Boat says:

"There are manifold advantages to the buyer in the purchase of a standardized boat. Not only

does he enjoy the saving in money that quantity production makes possible but he also reaps

the benefit of the cumulative experience of the designer, builder and even the previous users

of that same type of boat. Repairs and replacements are made relatively simple operations in

comparison with the same problems in the care of a boat where everything from the stem to the stern is special or built to the owner's order. It must not be inferred, however, that

the specification-built, or made-to-order boat, will ever, so to speak, pass <.ut of the picture. We might take as a slogan the expression "as long as there is water there will always

be boats." and by the same token as long as there are boats there will always be those individuals who wish to express their own individualities in the craft that they own. For those same expressions of the individual tastes or ideas this class of purchasers must needs expect

always to pay a higher price, and they will probably be content to do so."

21. FORMULAS FOR SIZE OF PRODUCTION LOTS: An interesting method of finding minimum cost quantity

in manufacturing has been worked out by Ralph C. Davis, Assistant Professor of Organization

and Management Ohio State University. In discussing this subject in the August, 1926, issue

of "Manufacturing Industries” Mr. Davis states that, "It is generally considered that the two j major controlling factors in the problem are the cost of preparation for manufacturing and the J interest charges on the quantity placed in stock. The preparation cost of manufacturing, including the engineering and office work as well as the cost of setting-up and dismantling the

equipment, is approximately constant with variations in the quantity manufactured. Therefore,

unit costs decrease rapidly as the quantity manufactured increases. However, as this quantity ' increases, more pieces must be carried in stores for a longer average time before issue, and

accordingly, the unit interest charge increases. As a result, we have two opposing forces in j the economy of manufacturing, which must be considered in the solution of our problem. Beyond

a certain point, unit costs increase because increasing unit interest charges more than off-set

the decreasing preparation costs. The problem is the development of a method of determining

the point beyond which the quantities manufactured in a single continuous run cannot be increased profitably,"

22. PRODUCTION OBSOLESCENCE: Kardex Institute has published a very interesting bulletin, dated

March 17, 1927, on the subject of "Production Obsolescence" by Paul E. Holden, Professor of

Industrial Management Graduate School of Business, Stanford University. Professor Holden says:

"For every item of production which is superseded and withdrawn frrm catalogs and current manu- facturing schedules, a determination is necessary as to what disposition will be made of the

drawings, patterns, special machinery and component parts incident to its fabrication. Every

new company, sooner or later, and every long established manufacturing concern periodically,

is confronted with this problem of production obsolescence. With a progressive plant there

ultimately comes a time when the retention of special manufacturing accessories becomes a physical as well as an economic burden. It is, therefore, essential that orderly thought be

given to the matter. In addition to establishing a definite policy for supplying repair parts

and disposing of special manufacturing equipment, most companies set up a means whereby the

established practices will be put into effect and all necessary investigations or determinations will be adequately made. It is evident that many economies and benefits can be obtained

through a scientific study of the problems of production osolescence .
Monthly News Bulletin No. 25—9. 23.

PRICES ON STEEL WINDOWS REDUCED: New discounts on steel windows, mechanical operators, steel

doors and kindred products, representing a reduction in prices averaging 11 per cent, have

been announced by the Truscon Steel Co., Youngstown, Ohio. Recent efforts of a committee of

manufacturers, acting in cooperation with the Division of Simplified Practice, Department of

Commerce, Washington, have brought about substantial savings by elimination of waste in manufacture and the reduction of costs of distribution. These savings, it is stated, are being

passed on to the consumer. The new discounts, which are based on a standard published price

list, are effective March 15. They are as follows:

Per Cent

Individual jobs listing to $500 45

$500 to $1,000 50

1 ,000 to 3,000 50 and 10

3.000 to 6,000 50 and 15

6.000 to 10,000 50 and 20

10.000 to 20,000 50 and 25

Jobs listing over $20,000 50 and 30

The steel window and door business has become an important branch of the steel industry and i3

proving an outlet for an increasingly heavy tonnage. The market is said to be fairly well

stabilized, and a favorable volume of trade is developing in most centers.

24. THE FOLLY OF PROMISCUOUS PRODUCTION: The following quotation is taken from an article by Wm.

H. Jackson, Chairman, Standardization Committee. Purchasing Agents Association of Los Angeles,

which appeared in the "Southwestern Purchasing Agent" for March, 1927: "Opportunity, the great

giver of the things we strive for, never was more in evidence in the industrial world than now, placing before us a realistic rainbow that leads to the traditional pot of gold over the pathway of 'standardization'. How often are we reminded when we see the wastefulness at every

hand, of the old, old story of the farmer who. having seven cats of seven different sizes, cut seven different sized holes in the barn to permit the cats to enter and escape stormy weather,

thereby weakening the structure to such an extent that it could not withstand a storm. So it

is with so many of us, blind to the advantages of standardization, oblivious to countless guideposts which point in the direction of success, showing the road over which we may travel, if

we choose, to the ultimate in business, —'conservation.' Notable are the results shown from

every quarter where honest-to-goodness business men are recognizing the folly of promiscuous

production, and who are making changes within their ranks toward the end of eliminating unnecessary commodities, not only for their own use, but in goods they make and have for sale, as well

25. ACCELERATING THE TEMPO OF AMERICAN MANUFACTURING: "The New American Tempo" is th« title of a very timely and aptly phrased article appearing in the March issue of Trade Winds, published

by The Union Trust Company of Cleveland. The article is reprinted by permission from "Advertising and Selling." Mr. Robert R. Updegraff, the author, says. "The increased—and increasing—availability of merchandise has materially accelerated the tempo of American merchandising,

just as quantity production methods and the lesson of the War have accelerated the tempo of

American manufacturing.

The chief factors that have brought this about are: the chain store, penetrating as it now does to the suburbs and the 'sticks' with all kinds of merchandise; the metamorphosis of the

drug store, adding evenings and Sundays to the availability of hundreds of items of merchandise, not only in shopping centers but in residential neighborhoods; the automobile, eliminating
Monthly News Bulletin No. 25—10.

the distance between the home and stores of all kinds; house-to-house selling, carrying the

merchandise right to the front or back door; magazine shopping services, bringing the avenue

shops to the interior towns; and now, as pointed out by another writer in Advertising and

Selling, the roadside gasoline station, a new outlet for merchandise dotting the map of America

perhaps more thickly than any other.

In addition to these physical factors influencing availability, there are the price and terms

factors: the LOWER PRICES MADE POSSIBLE BY SIMPLIFICATION AND QUANTITY PRODUCTION which have

made six-cylinder cars and radio sets and toilet soaps and hundreds of other commodities and

specialties available to lower salary stratas; and the deferred payment plan already referred

to, which has still further increased immediate availability."

26. PRACTICAL COOPERATION OF EDUCATION WITH INDUSTRY: The American Council on Education has

worked out a splendid plan for practical cooperation of education with industry. To develop

practical cooperation between schools and occupations it is proposed: "(1) that AS AN AID TO

EDUCATION those engaged in the world's work make accurate records of the things done in all

types of occupations; (2) that as an aid to the world's work, schoolmen make accurate records

of their experiments in discovering human aptitudes, in appraising capacities, in methods of

training, in developing standards and tests of proficiency and in constructing rating scales."

It is stated: "The only legitimate reason for hiring a man is that he possesses the standard

qualifications for his job, and will prove a good investment for his employer. To facilitate

accurate placement which assures mutual satisfaction of employer and employee, it is necessary

better to understand what qualifications each occupation requires, and also how to measure the

kind and degree of those qualifications the applicant possesses."

27 . DIVISION OF SIMPLIFIED PRACTICE

(Progress in Simplification)

Preliminary conferences, general conferences, and revision conferences have recently been held

under the auspices of the Division of Simplified Practice at the request and in cooperation

with the following industries:

SALT CONTAINERS: The Simplified Practice Committee of the salt producers, which was appointed at the Preliminary Conference held in Chicago on January 14th has completed its survey which indicates that a real opportunity exists for the industry to benefit by adopting a simplification

program. A General Conference of all interests will be held in Chicago on April 14, for the

purpose of developing a Simplified Practice Recommendation.

ASBESTOS PAPER AND MILLBOARD: Under date of February 17, the Division mailed a copy of a report of

the meeting of the Standing Committee on Simplification, to manufacturers, distributors and

users, for their approval. The committee has made some constructive revisions in the original

schedule and Division is waiting on the receipt of sufficient number of acceptances before

printing the revised Simplified Practice Recommendation.

NEW SIMPLIFIED INVOICE FORM: The new simplified invoice form which was unanimously adopted on February 16, 1927, and which combines the best features of both the uniform and the National

Standard invoice forms deserves the most earnest consideration of all printers and users of

commercial forms. It has been agreed that the details of the Simplified Invoice will be re- considered at the end of two years, thus insuring that it will continue to be the best invoice

available for use in the field of industrial distribution. A facsimile of the new form is

being mailed out to all interests for acceptance. As soon as the required number of acceptances

are received, a revision of Simplified Practice Recommendation #37 for commercial forms will

be printed.
Monthly News Bulletin No. 25—11.

BUILDERS' HARDWARE: On March 21, 1927, the Division mailed out to all interests, the report of the

Standing Committee of this industry, advising certain changes in the existing simplified list.

If approved, the revised schedule is to be effective from May 1, 1927.

RAZOR BlADE PACKING: For a number of months the manufacturers of razor blades have been considering the desirability of simplifying the packaging of razor blades by packing according to the

decimal system. The Division was requested to call a general conference of manufacturers,

distributors, and consumers, to develop a Simplified Practice Recommendation. An invitation

was sent out to all interested to attend a conference in New York City, on March 31st. Results

of this conference will be printed later.

SURVEYING INSTRUMENTS: The procurement planning work of the Military Division of the Office of the

Chief of Engineers, War Department, pointed out the desirability of standardization and simplification in certain articles of surveying equipment, such as transits, levels, planetables

and tripods. It is believed possible to standardize a tripod head that can be used on the

instruments made by all manufacturers. In accordance with the request of the Chief of Engineers, the Division is calling a meeting of all manufacturers of these instruments. The meeting

will be held at the office of the Department of Commerce, Room 734 of the United States Custom

House, New York City, on Friday, April 1.

GRINDING WHEELS: The Standing Committee on the simplification of grinding wheels has recommended

certain revisions in the existing simplified practice schedule. This action was taken in ac- cordance with the powers vested in the committee by the general conference of September 23,

1925. A copy of the proposed revision of Simplified Practice Recommendation No. 45 is now before the manufacturers, distributors and users for acceptance.

PAVING BRICK: The Standing Committee of this industry, which was appointed at the general confer- ence in November, 1921, convened at the Department of Commerce on March 31. in its sixth annual

revision meeting to consider necessary modifications of Simplified Practice Recommendation #1

for paving brick. A survey conducted by the National Paving Brick Manufacturers Association

to determine the actual shipments for the year 1926 was used as a basis for consideration by

the committee. This survey indicated that the 2 1/2 x 4 by 8 1/2 inch plain wire cut brick,

vertical fibre lugless, which was eliminated at the first conference on November 15, 1921,

had again come into prominence and for the past three years represented the following percentages of total shipment for those periods: 1924-4.4%, 1925-8,9%, 1926-14.1%. It was plainly

evident to the Standing Committee that there was sufficient demand for this type of brick to warrant its inclusion, and they unanimously passed a resolution increasing the four recognized

types to five, for the year 1927.

SIMPLIFIED PRACTICE RECOMMENDATIONS IN DEMAND: As an example of the cooperation being given to the

work of the Division of Simplified Practice by Trade Associations and Manufacturers, the manufacturers of vitreous china plumbing fixtures are planning the purchase and distribution of

20,000 copies of Simplified Practice Recommendation No. 52, which was recently developed under

the auspices of the Division of Simplified Practice, covering a reduction of sizes and varieties from 441 to 58.

SURVEY OF SAVINGS THROUGH SIMPLIFICATION: The Division of Simplified Practice is conducting a survey to determine the amount of actual benefit derived by the industries from the practical

operation of their recommendations. Inquiries are being directed to all acceptors of Simplified Practice schedules which have been in effect more than one year. The replies thus far

received, while covering only four (4) commodities, art unanimous in their indorsement of
Monthly News Bulletin No. 25—12.

Simplified Practice as a waste elimination measure. It is naturally difficult to arrive at "dollars and cents" estimates of savings. The few figures which have been presented show

economies ranging as high as 50% of the production costs and inventory reductions amounting to

as much as $140,000 for a single company.

28. NATIONAL COMMITTEE ON METALS UTILIZATION

BOLT AND NUT CONTAINERS: At a general conference held at the Department of Commerce on March 23rd,

the manufacturers, distributors and users of machine and carriage bolts, adopted a program of

packaging which calls for 18 standard size containers. It was brought out in the Conference

that by adopting standard size packaging of the nuts and bolts many economies would result not

only to the manufacturers, but also from the warehousing of these articles. This program will

remain in effect for a period of one year beginning July 1. 1927.

A standing committee of the industry was appointed at the conference to watch the results of

the adoption of the 18 standard size containers, and to make a report at the end of the year

on any changes or modification needed in the program to make it more effective for the industry.

NEW BILLET STEEL STOCK FOR REINFORCEMENT: The current intermediate grade of the American Society

for Testing Materials was adopted as the single standard grade of new billet stock for concrete

reinforcement at a general conference held under the auspices of the National Committee on Metals Utilization on Saturday, March 19, 1927.

The conference was attended by 50 representatives of manufacturers, distributors, consumers

and engineers interested in steel reinforcement for concrete. Mr. W. Chattin Wetherill,

director of the National Committee on Metals Utilization presided over the meeting.

Mr. Lindau, Chairman of the Grade of Steel Committee which has been conducting the survey of

current practice during the past year presented the Committee's report. It was the sense of

the meeting that a single grade of new billet stock was desirable for concrete reinforcement.

The discussion that followed developed that the majority of demand of the country was concentrated on the intermediate grade. For this reason the conference adopted this grade as standard for a period of one year at the end of which time a similar general conference will be

held to discuss the success of the program.

Mr. Wetherill was authorized to appoint a steering committee made up of representatives of all

interests to sponsor the project. This committee is to cooperate as far as possible with the

American Society for Testing Materials.

METAL SPOOLS AND REELS: Upon the request of the Simplified Practice Committee of the Manufacturers

of Metal Spools and Reels, the National Committee on Metals Utilization convened a conference

of manufacturers, distributors and users at the Department of Commerce on March 30, 1927, for

the purpose of developing a Simplified Practice Recommendation for stock sizes and dimensions

for metal spools and reels. The Simplified Practice Committee of the industry, composed of

manufacturers of metal spools and reels, which was appointed at a preliminary conference held

December 2, 1926, made a survey of current practice in their industry. The results of this

survey were use. as a basis for an agenda which was presented to the conference in the form of

a tentative recommendation.

It was the sense of the meeting that the initial step should be confined to the matter of unit

weight of wire for each spool and the least number of metal spools necessary in connection

with the annealing, handling and shipping of wire.
Monthly News Bulletin No. 25—13.

CONTAINERS FOR EXPLOSIVES: A representative of the Bureau of Explosives called at the offices of

the National Committee on Metals Utilization and expressed the desire to have their standardization activities tie in with the work of the Committee and the Division of Simplified Practice

of the Department of Commerce.

CARBON BRUSHES AND BRUSH SHUNTS: Simplified Practice Recommendation #56 covering these items has

just been received from the Government Printing Office. At the General Conference held several

months ago a recommendation was unanimously approved covering a large reduction of varieties

and sizes of carbon brushes and brush shunts. The printed recommendation may be obtained

through the Government Printing Office at a price of 50.

j

1 STEEL COMPARTMENT LOCKERS: Simplified Practice Recommendation No. 35 covering the elimination of

superfluous sizes and dimensions of Single and Double Tier Steel Lockers has worked out so satisfactorily that the Simplified Practice Committee of the Locker Industry believes similar

benefits would be possible in connection with the manufacture and use of compartment lockers.

With this purpose in mind the Committee has requested the National Committee on Metals Utilization to ask the cooperation of the manufacturers in completing a survey of locker sales over

the two year period 1925 and 1926.

STEEL SPIRAL RODS FOR CONCRETE REINFORCEMENT: The American Engineering Standards Committee has

approved Simplified Practice Recommendation #53 for Steel Spiral Rods For Concrete Reinforcement as the "American Standard".

FLASH LIGHT CASES: The manufacturers, distributors and users of flash light cases have asked the

National Committee on Metals Utilization to call a General Conference to develop a Simplified

Practice Recommendation for this industry. This conference will be held on April 27th, at the

Department of Commerce.

i GAS COCKS: A prominent association has brought to the attention of this office the large variety

of sizes and dimensions of gas cocks on the market under present practice, with the suggestion

that an effort be made to reduce this variety through the application of the principles of

Simplified Practice.

Following our regular plan of procedure, when such suggestions are brought to our attention,

we are writing to the leading manufacturers in order to ascertain the consensus of opinion

relative to the desire of the manufacturers of gas cocks for the application of our service to the existing problem.

29. NATIONAL COMMITTEE ON WOOD UTILIZATION

END MATCHING OF SOFTWOODS: The bulletin is now in the hands of the editor and will be printed by

the Government Printing Office during April It will likely be released during May or June.

The Committee has decided to get the short lengths project well under way before releasing the

end matching bulletin. The latter is the logical follow-up of the short lengths project.

SEASONING AND HANDLING OF LUMBER: The gathering of data for the four bulletins is steadily progressing. The Committee's staff has prepared a bibliography of all available printed material on this subject, and during the month of February several field trips were undertaken in the interest of this work.

...
Monthly News Bulletin No. 25—14.

WOOD CHEMICAL PROJECT: Dr. L. F. Hawley, of the Section of Derived Products, Forest Products Laboratory, Madison, Wisconsin, one of the most eminent wood chemical experts in the United States

has carefully gone over the v/ood chemical manuscript. Suggestions have also been received

from other sources in regard to the preparation of this bulletin. After these revisions have

been made the bulletin will again be referred to the Wood Chemical Subcommittee members. It

is expected that it will be off the press some time next fall.

WOODEN CONTAINER SUBCOMMITTEE: This committee is now being organized and plans to meet in Chicago

in the middle of April for the purpose of planning a program.

GANG SAWING OF LUMBER: The Executive Committee has decided to organize a subcommittee for the purpose of studying the gang sawing of lumber in accordance with North European methods, and principally limited to logs of 10 or 11 inches top diameter or less. This subcommittee is now being organized and plans are made for a field study which will have for its purpose the ascer- taining of the economies involved both in labor costs and in raw material. Practical tests

will be made.

NATIONAL SURVEY OF NONUTILIZED RAW MATERIAL: A subcommittee is now being organized for the purpose

of sponsoring the survey of nonutilized raw material in the State of Virginia. This survey

will likely be restricted to saw mills, planing mills, box factories and some of the principal

woodworking establishments. The Virginia authorities have already pledged their active support,

and a questionnaire is now being prepared. This will serve as the basis of this survey. It

is expected that the information obtained will be of material assistance to such wood-using

industries as can profitably use such raw material which may be considered as waste in its

present form.

MISCELLANEOUS: The "American Lumberman" of Chicago has placed at the Committee's disposal 5,000

reprints of an article on the National Committee on Wood Utilization, its aims and purposes,

which appeared in that magazine during the month of January. Copies of this reprint may be

obtained from the Committee on request.

Contact with ready-cut house concerns has revealed the fact that the majority of these concerns

are purchasing the greatest quantity possible of short lengths because they firmly believe in

the economy resulting from their use.

On March 14 the Director addressed the Army Industrial College, explaining the Army's interest

in wood utilization.

The annual meeting of the Committee will be held on May 3 at 10 A.M. at the Department of Commerce, Washington, D. C.

AMERICAN MARINE STANDARDS COMMITTEE

Considerable progress was made on various projects for marine standards. Among others, groups

of proposed standards for details of propeller shafts and propeller hubs and for flanged pipe

fittings and pipe flanges are nearing completion.

Meetings of committees and conferences were held during the month on Metallic packings for condenser tubes

Hose for ship equipment

Pipe fittings and pipe flanges

Propeller shafting, etc.

The ballots so far received from the membership on proposed standards for Pilot ladder, Fire

hose racks and Life boats appear to give a substantial majority in favor of their issuance.