MONTHLY NEWS BULLET IN

r F THE

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' DIVISION OF 'SIMPLIFIED 'PRACTICE

DEPARTMENT OF COMMERCE

Washington

December 15, 1926, No. 21 .

STICKING- TO IT

In nineteen different lines, the average adherence to the Simplified Practice

Recommendations is seventy-nine ( 79 ) Per cent. In other words , an average of

practically four-fifths of last year’s output in these lines conformed to the

sizes, dimensions, etc., in the simplification programs' adopted through joint

conference of representative manufacturers, distributors, and consumers concerned. Details are as follows:

Commodity Adherence

Beds, Mattresses and Springs ....

SaSid Lime Brick A 2

Hospital Beds 69

Asphalt (Grades) 74.

Paving Bricks 74

Face Brick 74

Milk Bottles and Caps 75

Lumber oO

Shot Gun Shells 8l

Follow Building Tile 84

Average 7

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Commodity Adherence

Metals Field

Sheet Steel ( Jobbers ) 53 1° Brass Sink Traps 75

Pot water Storage Tanks 82

Steel Barrels and Drums 84

Steel Reinforcing- Bars .' 85

Woven Wire Fence 97

Eaves Trough and Conductor Pipe.. 97

Metal Lath 99

Range Boilers 9 ^ Average ...... 85 .6 f

Grand Average 79?®

The above figures are taken from the resurveys made by the Standing Committees

responsible for the success of the simplification programs in their respective

industries. In nearly every case above cited, the re-survey covered eighty (80)

per cent or more of the output of the entire industry. Fad it been possible to

obtain statistics from all the plants producing these commodities, the percentages of adherence might have run even higher.

This degree of support for Simplified Practice demonstrates that the companies

cooperating in simplification have found it pays. They certainly would not stick

to their simplification programs to this degree if it did not pay them to dc so.

In every one of these cases, each industry, prior to simplification, thought it

necessary to have a multiplicity of sizes, dimensions, grades, etc. Now they

knowT it is not, for most of them are doing a greater volume of business than ever before. To the industries which have not yet applied simplification, its success

in the above fields is a constant challenge.

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On November 17 , 1926 , a representative group of manufacturers of cylindrical

roller bearings convened at the Department of Commerce under the auspices of the

National Committee on Metals Utilization for the purpose of considering the

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feasibility of applying the principles of simplified practice. It was the sense

of the meeting that the initial step should be confined to an effort to eliminate

the excessive variety of bore sizes up to six inches of cylindrical roller bearings, I.e., bearings exclusive of that type which is now interchangeable with

ball bearings, and which conform with present ball bearing standards.

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Jrrden hose is made in several sizes, ranging from l/2 to 1 inch, .inside diameter. In recent years there has been a strong tendency' on the part of manu- facturers to encourage the use of 5/8-inch hose in place of the 1/2 and 3/4 inch

sizes. This standardization of size seems desirable for several reasons. It

would tend to reduce the cost of manufacture by eliminating two unnecessary sizes,

and at the sane time it would reduce amount of stock to be carried. by dealers.

That the p/8 'inch size is large enough for ordinary purposes has been demonstrated

by tests recently made at the Bureau of Standards to determine the discharge

capacities of l/2, 5/8 and 3/4. inch hose under different pressures.

=JC S?C . . .

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A general conference of manufacturers, distributors and -users- of Binder Board was

held in New York ‘City, November 30th. A report of t-he Simpli-fi-ed Practice Recommendation developed at that meeting will he available for distribution within a few days. ’

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At the reauest of the industry, a general conference of manufacturers, distributors and users of office desks was held in Chicago, November 30th. A summary

report of the conference, including the Simplified .Practice Recommendation, as developed at tint meeting, will be mailed out to all interests in the near future,

for acceptance.

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- v „, : Probably the least generally and properly understood phase of exporting is that

which pertains to the foreign laws and regulations which affect the importation

of American products abroad. The apparent complexity of these laws and regulations too often present to the manufacturer imaginery , insurmountable barriers.

In the Division of Foreign Tariffs, of the Bureau of Foreign and Domestic Commerce these freauently changing foreign customs reouirernents , which so affect the

movement of American products into ' the outside world markets, are closely studied.

Certain of these data are put in most usable and readily understood form by this

Division, and are published for the use of the various industries concerned.

The Division of Foreign Tariffs not only compiles and currently revises -all information on the rates and basis of assessment of duties on products exported

from the United States to the various countries of the world, but also maintains

a similar record of foreign consular and customs regulations. A perpetual survey

is also being made of the foreign laws affecting the admission of samples and advertising matter, likewise rules governing the possible regulation of or payment

of fees by commercial travelers abroad.
In connection with their program for the .year, The national Association of

Purchasing Agents , Inc., till concentrate on a ’'drive' 1 to accelerate the adoption ‘if the National Standard Invoice Form. The Committee on National Standard

Invoice Form will consist of one district chairman for each district, the

National Secretary acting as chairman of this National Committee; each district

chairman to supervise the work of the various local committees in his district,

to tie them together into a single working unit so that all* may. he having thebenefits of the good ideas of each association and to avoid duplication and to

standardize on method of securing adoption of the National Standard Invoice

Form. The Editors of Association Fagazincs and Bulletins, the Invoice Chairmen

of Affiliated Associations,' and others have been asked to assist in the drive

by running articles and advertisements in the-ir publications

.

Nore than eighty nationally known trade associations have already endorsed the

form. Thousands of corporations and a majority of the 'large railroad systems

throughout the country are demanding its use. Following this, the Comptrollergeneral of the United States has reauested all government vendors to bill on the

National Standard Invoice Form. '

Some of the principal ADVANTAGES of a standard invoice form are - eliminates

misunderstandings and inconveniences; exoedites shipments and the settlements of

account's- saves money by reducing clerical personnel; saves paper by cutting

from standard size stock without waste; saves -correspondence by Including all

necessary information on the forms themselves; saves time in filing, finding ~and

handling while being checked; saves filing space through uniformity of size, etc

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During the past year the Bureau of Standards made nearly l8o,OOC tests for the

government and private industries, ranging from paper money to photography,

brick walls, steel columns, theatre curtains and sheet metal garages . Every

merchant will be glad to know, for example, that the bureau has brought about

certain changes in the manufacture of paper for currency which, it is believed,

will increase the life of bills fully fifty per cent.

In the radio field, according to the Bureau, the piezo oscillator, which em- ploys a ouartz plate oossessing a definite mechanical frequency of vibration,

has been developed as a practical and successful device for holding transmitting

stations exactly on their assigned wave lengths.

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The National Committee on Wood Utilization, In their News Letter No-. 2, reports

as follows on their active projects;

Uses of Short Lengths in Building and 'Construction; A bulletin entitled "The

marketing of Short Length Lumber", which will contain about 60 pages, will be

ready for distribution about the first of ' the year.

End Hatching of Lumber : The bulletin on this subject is now being compiled for

the use n f the subcommittee working on this project.

Seasoning end Fondling of Lumber; Research work" along the lines of proper method

of seasoning and handling is being carried on bv the Committee and tilany valuable

5ver-
suggestions ore being received from the various subcommittee members.

,ood Distillation: The report on the bulletin of the manufacture of charcoal

abd wood distillation by-products will be completed by the. end of November, and

as soon as it is approved by the subcommittee on hood Chemicals, it will be

sent to the or inter.

wood Preservation; The Chairman of the Subcommittee on Wood Preservation reports

the .preparation of a primer on this subject which will be printed following

approval by the several members of Lis subcommittee.

Gonta iners

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A meeting of the Subcommittee was held in New York City, October

Ihth, and it was decided to prepare an exhibit of scientifically designed and

constructed boxes and crates which would be shown in the leading industrial centers of the United States. An invitation has been extended by the Fifth National Exposition of Paper and Fechanical Engineering to be held at Grand Central

Palace, New York City, December 6th to 11th inclusive.

The Concrete Reinforcing Steel Institute has ordered, through the Government

Printing Office, 2,000 copies of Simplified Practice Recommendation No. S3 , for Steel Reinforcing Spirals. These are to be distributed among the members

of the Institute. This cooperation is very much appreciated by the Department j of Commerce, as the distribution of these pamphlets will bring the simplified

line to the attention of a large group of manufacturers and others interested.

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The following resolution was passed by the California Industrial Council, com- prising the Industrial Organizations of the State:

WHEREAS The Secretary of Commerce established the Division of Simplified

Practice in December, 1^21, to serve as a centralizing agency in bringing producers, distributors and users together and to support the recommendations of

these interests when they shall mutually agree upon simplification of benefit

to all concerned, now therefore be it

RESOLVED That the Advisory Committee of the California Industrial Council pledges its support of the program of the Department of Commerce for the

elimination of waste through simplified practice and tenders to Chief Ray F.

Hudson every possible assistance in furthering this desirable work. And be it

further

RESOLVED That the Advisory Committee of the California Industrial Council will recommend to all its affiliated organizations that they., secure the same,

cooperation and assistance from their individual members to the Department of

Commerce

.

This is typical of the cooperation being received fram a number of the State

Fanufacturcrs ’ Associations and other groups, in connection with the Elimination of Waste program of the Department of Commerce. I
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The Department of I 'anufacture of the CbamV r of Co:.:.. tree of he United States is

organized to afford the me mb e is of the Chamber* particularly manufacturers , an industrial informational service of a more intimate character thv n ordinary

,

where their common language can be spoken and understood. It is contemplated

that all cuestions of importance ' and of general ccnc.rn to industry or the producers of specific commodities may be brought to it for attention. The principal function of the Department rill be in assisting its members to promote

interest in their common problems and to develop tie cooperation helpful in

finding solutions - typical, are efforts to develop vasto elimination -- uniform cost accounting -- employee problems in industry -- statistics of production -- service to trade associations, etc. Correspondence on any of these

subjects is invited by the Chamber.

After completing a rigid analysis of their hosiery stock, a prominent firm in

Baltimore has concentrated upon four prices in the classification of plain silk

hose. During the period from December 30, 1925 » to June l8, 1926 , 80 per cent

of their sales v re mode on these four price lines. Greater sales with less

effort, greater turnover, and increased profits will naturally result from such an analysis in any line.

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The Economic Committee of the Imperial Conference of Great Britain has completed

its consideration of the subject of industrial standardization and simplification. According to tie London Times , it mas reported to the Committee that

the standardization in the number of iron and steel sections produced in Great

Britain from some hundreds to lip was estimated tohhcve resulted in a saving In

cost of production of 5

s * per ton over all sections rolled which would be

couivalent to about half a million pounds sterling per annum. It was further

estimated that the value of stool s of ironmongery in the hands of wholesalers

and retailers in Great Britain amounted to 25,000,000 .pounds sterling, and that

if the number of types were reduced to a. moderate extent one-fifth of the capital thus locked up could be released. In the same way, the value of stocks of

clectr.ic lamps outside of factories was said to approach 4 » 000,000 pounds sterling, and it was stated that the ulti ate effect of the’ unification and standard

pressure might cut this amount dovn by at least one-half.

The subject of simplification has been coming to the front at a great rate in

Great Britain, as well as other countries abroad. The? Division of Simplified

Practice is not only getting reports on the application of the principle in

other countries, but also Is receiving many inquiries for information about its

progress here in the United States.

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Artificial trade barriers and a multiplicity of small competitive factory and

distributive units are among the outstanding obstacles to European commercial

recovery, says a recent exchange. During the past month, definite steps have

been taken to remedy those handicaps. A group of financial men recently

signed an international manifesto that virtually recommends free trade among

European nations. Another measure "as the consolidation of steel mills of

Germany, Franco, Belgium, and Luxemburg, the aggregate production of which con- Ovcr
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stitutes about 3 0/° of the world's supply of steel products. The immediate

effect of the formation, of this combine was an advance in the prices of finished

steel products. From reliable sources we are informed that other industries in

Europe are also in the process of forming consolidations. Just what. immediate

effects international trade agreements and consolidations will have upon trade

and industry in .America is impossible to determine at this time.

The way for American industries to meet this competition is through the "eliminaof waste".

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The National Committee on IJetals Utilization is working 'in close cooperation

with the trade associations in the metals-using industries, with the view of

having the various associations set up their own committees to study the problem of waste elimination in their respective fields -.and furnish suggestions and

recommendations which will facilitate the elimination, of waste in the 1,'etals

field.

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Students of psychology realize fully that habits established in childhood are likely to be carried over into lat,er life and thus become part of the warp ana

’woof of the individual's mental and moral machinery. To this end it is es- sential chat thrift habits be established early. If children are taught the

dignity of labor; the moral and economic values of earning and of saving; the reasons for the elimination of waste, they will develop into self-supporting

and .self-respecting men and women. Since 1915 * the school systems the country

over are giving attention to the teaching of thrift. It has been estimated

that during the oast year 8,000,000 pupils of all classifications have had presented to them thrift studies, in some form or other.

Few one concern eliminated the "seasonal peaks" and another eliminated an "unprofitable line" is very clearly exolainedrin an article on the subject of marketing, which appeared in a recent exchange. By demonstrating that seasons made

no appreciable difference in the buying activities of the major industries to

which the first co&pany sold, and in securing a more careful supervision of sales

activity, the "seasonal peaks" that formerly appeared on the sales curve were

almost eliminated. In the second case, the investigation of sales records over

a. period of years, and the segregation, according to industries, of both sales

and profits, demonstrated that business on one particular line, which represented

more than one- third of the total sales, was being taken at a loss of about 3 -1/2

per cent. The discontinuance of this line of manufacture, tne expenditure ot

its proportionate sales effort upon more profitable lines, increased the profits

available for distribution at. the end of the first fiscal year.

Simplified Practice means concentration upon those linos which are profitable

and in greatest demand.

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lar. L. 17. "/si lace, past president of the Society of Industrial Engineers and

now Executive Secretary of the American Engineering Council, speaking on "The

Fenace of 7/aste" says that competition in local and foreign markets is steadily

increasing. Business is becoming more difficult to secure. It is held that

the greatest struggle in history for domestic and foreign markets is being

initiated. The future of American business and industry is at stake. fill

American business and industry maintain their places, is the grave Question in

many far- seeing minds. These minds answer "Yes", provided business and industrial leaders exercise the initiative and leadership with which they are endowed.

Such initiative and leadership must envisage the elimination of waste, because

it has an international significance. It Is recognized as an important factor

in economic advancement.

Trr'Sf'lM.cld of waste in administration, production and distribution has been ex- plored and the major streams of waste brought to view;. The turning of these

streams of waste into streams of revenue is the mos-t practicable way to meet

increasing costs of doing business and the insurgency of competition.

In the realm of adninistra.tion prevail some of the largest and most persistent

streams of waste. Feans of stopping them’ are known, but the problem is to

create a general realization of this fret, so that American industry may profit

thereby.

A well known firm of management engineers ha; . recognized the following as being the six most important steps in a working program for anybody who wants

to do improvement work in the office or factory: (1) Analysis; (2) Elimination; ( 3 ) Coordination; ( 4 ) Surndardlz tion; (p) Organization, and ( 6 ) Incentives. These arc mentioned in the order in which they should be performed.

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The introduction into Germany of mass production has resulted in a division of

manufacture calling for specialization on the' part of individual machinery

plants and the institution of common sales bureaus for the purpose of cost re- duction. This end is usually obtained through the creation of a community of

interests between two or more plants producing the same class of machinery.

Each plant limits itself to the. nanuf cture of that class of products for which

it is best suited and renounces production of other lines in. favor of its

former competitors. The unification of gales bureaus and, salc-s practice has

been another method widely used to reduce costs, in Germany. A still further

method of cost reduction has been tic stands rdiz- tion of parts, the joint product ionr t of these parts, and the joint purchase of raw materials for production.

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In a splendid article by B. F. Smnrr , Director, Standards Section, General Purchasing Committer, General Fotors Corporation, which appeared in the "American

Fachinist", the statement is made that "the keynote of *. plant standardization

campaign should be the elimination of useless sizes and varieties. The natural

result will be that greater Quantities of the sizes and varieties that remain

will be needed and they can therefore be curebased in larger Quantities. The

price per piece will automatically reduce itself. Odd sizes and varieties are Over
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almost invariably born of some emergency. Before you know it, they become

accepted and the next man who specifies their use does so because he believes

that it is essential, that a real reason for so doing exists. Experience

shows that it is almost invariably possible to reduce the number of sizes or varieties of a given type of unit 50 ?er cent.

Standardization within a company or a combination of companies reouires a great

amount of detail work and patience, and extreme consideration for the men and

things affected. But the ends attained are justified in the satisfaction that comes from a job well done and in very substantial financial savings as well."

Eere, indeed, is a splendid argument for simplification and what can be accom- plished by "sticking to it" l

Tt:is division is in receipt of a report from the Standardization Engineer of

one of the large manufacturing concerns located in the middle west. In a sum- mary of progress in material and parts standardization, for the period from

February to June, 1323, an average elimination of 14 per cent has been accom- plished on screw threads, steels, screwed fastenings, pipe fittings, valves and

cocks, rivets, cotter pins, taper pins, Woodruff keys, stationery sizes and

name plate, sizes.

Tris company is cooperating with the Division of Simplified Practice by using,

wherever possible, the simplified sizes which are found in the series of Simplified Practice Recommendations developed under the auspices of this Division.

By "sticking to it", this company and a large list of other manufacturing con- cerns and distributors are demonstrating the possibilities for savings and econ-i

omies through the application of simplification.

In a recent newspaper article, hr. Hubert T. Parson, of the Woolworth Company,

is quoted as saying - "since 1^21 , we have cut down the .number of individual

articles handled in our stores to about 3,000. In this connection w?e analyzed

our stocks of merchandise and eliminated all unnecessary duplicates. We began

to specialize in those which .have public preferment. This policy enables us

to concentrate more. Moreover, It enables the manufacturers to specialize and

to apply Ford principles of mass production. Since adopting these more scientific principles of merchandising, we have increased our turnovers from 3 to 8

a year, thus heightening the rate of profit on invested capital."

Inasmuch as the profit margins are necessarily small in five-and- ten- cent store)

this company, like others, has been driven to develop scientific management,

being perpetually alive to the need of eliminating economic waste.

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As an item of particular interest to Chambers of Commerce throughout the country, we emote a detailed reply from the Assistant Managing Director of the

Dayton Chamber of Commerce - - - - "I just returned from Washington, and the

first thing I am going to do is to reply to your reauest for a report of the
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savings which have been effected by "applying simplified practice in the purchasing of stapionerv for this Chamber of Commerce.

Shortly after your visit to Dayton last spring, the writer was given authority

to purchase supplies for this office. On making n survey of the stationer- we

had on hand, I found we had a variety as follows : 13 different styles ani forms

of letter-heads and 11 different kinds of envelopes. The reason for having

these varieties is that our former executives thought each department should

have individual letter-heads. After you addressed us, telling of the benefits

to be derived- by applying simplified practice, wo ordered 5^,000 letter-heads

at a cost of a little over h-200.CC, and we have eliminated the other 12 sizes

and forms and now imprint the departments on the standard letter-head which

we have adopted.

Formerly it had been necessary to purchase those varieties in small quantities,

such as five and ten thousand lots, costing approximately $350 *C'0 for the same amount ,f letter-heads. Do effected a savings in 2 small purchase of 50 , COO

in the amount of .>138.00 as a six month-. s’ supply. V,e have cut down on our en- velope variety from 11 to 2 sizes, known as the No. 3 ^nd No. G government

envelopes. This will effect a savings of approximately the same amount as above in envelopes alone.

’Ye apply simplified practice on other purchases and I am confident that in a six

months’ supply of all stationery wc will effect through this practice a savings

of p^OO.OO. I really believe if all Chamber of Commerce secretaries would apply the teachings as set forth by your division, they v/ould sec a big savings

and be in a better position to advocate to the various business interests in

their cities the benefits to be derived by applying simplified practice in every

possible way . Very truly yours, (signed) Sam 0. Davis, Assistant Fanaging

Director."

The Secretary of the Railway Accounting Officers’ Association advises that

wherever practicable the forms mentioned in the "Railway Accounting Procedure",

1527 edition, have been made to conform to Simplified Practice Recommendation

No. 50 , for Bank Checks, Notes, Drafts, and similar instruments.

This is one more example of the splendid cooperation being given by the railroads

in connection- with the pronulgationof the simplified practice recommendations

which have been developed in cooperation with more than $0 industries.

In discussing modern business philosophy , Dllliam Feather makes the observation

that - "after a man has .been in business for a few years he begins to realize

that there is a natural law operating by which the benefit of every new idea is

passed on to the consumer. The business man gets the profits from his economies

and efficiencies for a little while, but not for long. There is an irresistable

force, just as potent as the law of gravitation, which takes these extra dollars

and passes them around. For instance, the manager of a department store doing

a volume of $12,000,000 annually tells me that he wants to net a profit of 2 per

cent on his gross sales -- no more, no less. The big thing he aims for is vol- ume of sales. This year he expects his volume will be 30 per cent higher than

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last year. Fis profit will be larger in the same proportion. But be will

actually be giving his customers bigger value for their money than ever before.

The way to get big sales is to offer the best merchandise you can at the lowest

price you can, consistent with good service and Quality"

.

Hr. A. A. Stevenson, Vice President, Standard Steel Porks Company, Philadelphia, makes the further comment. that - "This same idea will apply to simplification" .

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A saving of upward of $100,000,000 a year to both retail dealers and manufacturers through the proper oacking of merchandise for shipment is estimated as

a possibility by the National Retail D"y C-oods Association, after a study of

methods by A- C. Albee, Manager of its traffic group. A campaign to bring

the saving about has just been announced by the association. The association

is continuing its investigations into the most economical sises of containers,

packages , packing materials and wrapping paper and what changes in the folding

of goods will be necessary.

The National Committee on 'food Utilization and the Division of Simplified

Practice are cooperating with industry on a program for the simplification of

container sises.

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The Irving Bank & Trust Company of New York, after discussing current business

conditions in its November Kid-Konth Review, says "The conclusion borne in

upon us irresistibly is that caution is still a useful watchword, and there

will be a growing need for managerial ability of a high order in commerce and

industry generally, during the era of increasing competition ahead."

Many business managers and executives are finding Simplified Practice an effective ally in their efforts to meet the highly competitive conditions of the

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