MONTHLY NEWS BULLETIN

of the

DIVISION OF SIMPLIFIED PRACTICE

DEPARTMENT OF COMMERCE

Washingt on July 15, 1926. No. IS.

MEETING "THE NEW COMPETITION" WITH SIMPLIFIED PRACTICE

By Ray M. Hudson, Chief, Division of Simplified Practice.

It is not more than a few generations since a large part of our population

was made up of self-sustaining units, each producing to meet its own needs, and

limited in contacts with other units. The development of invention and laborsaving machinery, bringing increased productivity, naturally broke down these

units and resulted in specializ ation. It also led to a disastrous condition in

a type of competition between members of these specialized industries —a competition

often resulting in purposely-made goods of odd dimensions. The idea of competitive

advantage for the maker was back of this development.

It is within a relatively few years that the industrial and commercial world

had begun to see that in business as well as in other activities, "United We Stand,

Divided We Fall". The growth of the trade association and the broadening of the

association’s scope is bringing daily a wider recognition of the value of cooperative action.

Not the least of the gains from the cooperative spirit has been that derived

from the cooperators’ interest in simplified practice, —an interest which has been

followed by united action in promoting wider use of the products of one industry,

in finding new outlets for that product, in solving research problems, and in other

ways meeting needs which were common to all.

It is five years since the Division of Simplified Practice was first requested

by an industry to help it overcome problems arising from too great a variety of

dimensions. And in that five years the industry, which applied this cooperative

method of reducing variety (thus doing away with the costs of producing a wide

and unnecessary range) has been finding an opportunity to compete with the products

of other industries.

Industries which have sought the services of the Division to cooperate in

doing away with the odd size, have had a similar experience. The sheet steel industry,

the slate, lumber , clay, concrete and sand lime brick groups have each found a new

community of interest and of opportunity to present the advantages of their respective products as an industry, as well as to tell to their prospective consumers

through their distributors about the benefits which accrue to all from this activity.

To the consumer, this competition between industries has brought a wider range

of selection, either on a price or quality basis, an opportunity for a better com- parison of the products offered and a more intelligent choice of materials. The

group influence of the distributors is so strongly back of the simplification movement that they are a constant proof of the value of this type of competition. And

the manufacturers, through their trade associations, are using the advertising

columns of scores of publications to place their products in competition with those

of other groups.

The activity of the group competition is proof of Secretary Hoover’s comment

at the National Distribution Conference that "it sharpens the knife of competition,

for there is much less competition between dissimilar articles than between articles

of the same' quality, designation and character."

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Elimination of three types and five sizes of vises has been adopted by one Connecticut manufacturer as an individual simplification, and the report of the

company states that this step is "in accordance with Secretary Hoover’s idea of

Elimination and Standardization".

* * * * "it is our intention to confine our advertising in the future entirely to the

sizes and shapes covered in the Simplified Practice Recommendation" says a New York

company which took part in the simplification of glass sidewalk lights.

The Concrete Block Manufacturers 5 Association of Minneapolis has formally

accepted Simplified Practice Recommendations covering concrete building units,

copies of the resolution endorsing the waste elimination program having been sent

to Secretary Hoover. In acknowledgement , Secretary Hoover commented: "Widespread

observance of and adherence to this program is the best way for the industry and

j its customers to gain a maximum benefit from this effort to eliminate waste in

production and distribution of its products. I congratulate the Association on its

constructive action".

* * * * The Outdooi Advertising Association of America, at its last annual convention,

adopted a five-year program during which both poster and painted bulletin structures

of all Association members will be completely standardized as to size, location

and decoration,

* ;|c * jjc The American Institute of Architects, as one form of cooperation in Simplified

Practice, takes advantage of all opportunities to urge companies supplying materials

to state that such companies have adopted Simplified Practice Recommendations and

chat the items carried in stock are in accordance with the provisions of such

recommendations, says a report from LeRoy E, Kern, technical secretary of the

institute

* Sjt 5ft 5)« At its next meeting in Paris, the International Chamber of Commerce will seek

to promote the development of standardized and simplified letters of credit, with

a standard form, and with a fixed and uniform interpretation of terms for use in

all countries.

* * * * The St. Louis-San Francisco Railway, in its reclamation service plant at

Springfield, Mo., saves more than a million dollars a year, says an exchange. This

is one of six ways for industry to "cut down the waste pile". The other five are:

Direct reduction of wastes, such as closer supervision of material, reduction of

spoiled work, saving of power and fuel; Greater use of existing facilities through

eliminating idle machines, idle men, idle materials; Revision of existing facilities

through rearrangement of machines according to sequence of operations required, etc.

Simplification and standardization; and Better control of production resources

through tracing to their sources the leaks in material, time and effort and applying

corrective measures.

**!’,:*

From 25 to 45$ of the existing standards for ball bearings, issued by the

Society of Automotive Engineers would be eliminated if the report of a simplification committee on that subject is adopted, says a report frirn that body. Individual

companies aro now revamping pheir catalogs to accord with the new list.

* * * *

| MNB-16 Page 3.

Charles E. Billin, secretary of the Engineers Club of Philadelphia, has

notified the Division that the Board of Directors has gone on record in favor of

bringing Simplified Practice programs to the attention of the club's membership

and also of endeavoring to interest the Philadelphia manufacturer in simplification,

* * V

The Comitato Generale per L'Unificazione nell ’ Industria Meccanica, with

j headquarters in Milan, Italy, ha s asked for information regarding Simplified

j Practice, announcing the innovation of a similar movement in Italy.

* In a recent exchange, an automobile body manufacturer reports that simplification reduced 765 units used in construction to 175* The company makes 51 of its

| types of bodies out of standardized units. In addition to cutting the inventory

in half, the company is able to make simplified parts in various plants and

assemble them at far distant markets. Such an assembly took place in Japan, where

parts shipped from three different cities were brought together for the first time,

all fitting perfectly,

* sj« »J; * Attention of the members of the Iowa Retail Hardware Association to Simplified

Practice Roc ommondat ions affecting the hardware trade has been drawn in a recent

meeting of that body,

* * * Paint and varnish brush manufacturers, distributers and users, in a general

conference held on June 50 adopted a program eliminating 72^ of sizes and setting

up definitions for uniformity in measurement,

* * * * The American Petroleum Institute is working through ten committees, made up

of 375 members, on a program of standardization. It is estimated by one committee

alone —the committee on belting—that a saving of $1,000,000 is being made possible

through simplification and the setting up of better standards of production.

* * * * Two great publishing companies, the Simmons- Boardman Publications and the

Chilton Class Journal Company, at a recent meeting of publishers of 100 business

papers, announced their intention of putting all their publications on a uniform

page size basis. Though v.ad out ion of the '7 by 10 inch page will cost each many

thousands of dolla rs at the start, ultimately it will prove a great economy. The

meeting recommended four sizes of pages to cover all needs for business paper?.

Colonel Simmons of the former company is chairman of the executive committee of the

American Marine Standards Committee, which is allied with the Division of Simplification in the maritime field. President C, A. Musselman, of the Chilton company,

is also an earnest supporter of Simplified Practice,

:|c * if * After requesting a set of Simplified practice Recommendations, Director B. D,

Porritt of the Resea rch Association of British Rubber and Tyre Manufacturers,

comments; "The rubber industry seems to present a promising field for such work,

and we shall be interested to see the results of your efforts when you turn your

attention to the many and varied articles which it manufacturers." The Tire and

Rim Division of the Society of Automotive Engineers recently adopted recommendations

as to rim sizes in the interests of greater inter changeability of tires, as a step

toward further standardization.

Jj< + j)c Following the formal approval by the Board of Directors of the Michigan Manufacturers 1 Association of more active cooperation in Simplification, John L. Lovett, General Manager, has sent a bulletin to the entire membership, bearing the

title "Simplified Practice May Save You Money",

* * * *

MKB**16 Pag© 4.

One of the "eleven forward steps" presented at the 21st annual convention

of the National Supply & Machinery Distributors 1 Association was announced as

| recognition of the value of simplification". E. P. Welles told the convention

Last year, through simplification, wo reduced our inventory 40^; we increased

put ^ turnover from four to six. The capital thus released we have put into better

i paying, items. If you don’t anticipate the simplifications which are coming, you

will find yourself with froz en assets."

* * * * Simplified Practice Recommendations on grinding wheels looking to further

reductions will be given consideration when the Grinding Wheel Manufacturers Association meets in September, says a report from Dr. F. R. Henry, secretary,

>!« ‘We have already embodied the new standards (Simplified Practice Recommendations)

in our book of engineering Standards, which is issued to our own organiz ation" says

a letter from a Milwaukee manufacturing company. Support of this type helps broaden

the interest and brings results,

* * O. vl, T* T* 't* .Simplified Practice Recommendations on asphalt have been reaffirmed for another

year as a result of a recent meeting of the standing committee.

* « * $

The Heating and Piping Contractors National Association has, through its Board

of Directors, approved the Simplified Practice Recommendations covering wrought

*• *ron and wrought steel pipe, valves and fittings, says Henry B. Gombers, secretary.

The recommendations follow the recommendations of the association’s committee on standardization presented to the convention of the association.

* * * * . V Manufacturers of steel elbows and conductor pipe report that a survey shows

the 29 gage material eliminated in the Simplified Practice Recommendation to have

teen cleared away, both as to stocks and manufacture of elbows and shoes.

* * * * "Mill Supplies" magazine has joined the ranks of trade journals endorsing

the Simplified Practice Recommendations for milling cutters, and indicates its

willingness to approve further simplification programs, "Machinery" has printed

these tables on a detachable data sheet for its subscribers, a movement which is

of peculiar value to those who build up reference works for their daily use.

* ^ * President John W, O’Leary of the Chamber of Commerce of the United States

states that "This year’s Management Week program has been brought to the attention

of the mana gers of our service departments and their sympathetic interest can be

assured, I am also asking our Organization Service Bureau to bring this matter to

the attention of the secretaries of all the chambers of commerce in our membership

inviting them to get in touch with Mr. Hudson, secretary of the National Committee

on Management Week for 1926 for suggestions. * * * We are * * genuinely in favor

of organized effort to improve business management and * * we have taken several

definite steps to advance this very vital cause of waste elimination in business,**"

* * * * The American, Railway Association, at its convention in Atlantic City last

month, devoted a considerable amount o.f attention to simplification. The committee

on Purchasing records and Organization reported that 55 railroads, representing

198^000 miles of road, and 230' manufacturing or selling organizations are using the

National Standard Invoice Form, fully 25% of the invoices received by some of the

carriers being on the sellers’ own forms. Recommendations were made in favor of

MNB-1S Pag« 5,

standard sizes for trade catalogues. Another report presented said- stores and

stocks of the railroads are '"burdened by too great a variety of sizes and kinds of

material". It was shown that the use of the American railway Association -a. m d

material classification is increasing in use, and that some 16,800 items have been

eliminated by six railroads, "it is the opinion of the committee based ®n their

general knowledge and experience that a conservative figure of the savings that

may be obtained would be 10% of the annual amount of the purchases of the items

treated' by applying simplification, was the conclusion of another report,

| * * * The Association of Iron and Steel Electrical Engineers, at its 22nd annual

meeting in Chicago last month devoted a part of its program to standardization.

^ ck An instance of firm simplification is given in an exchange, which notes that

refining company, manufacturing 521 brands of candles, discovered tha t 15b could

v.rell be discontinued, and that only 37% were active. The advantages noted were:

chat it crea ted a program for simplification of products, it presented facts rather

than opinions, it led to action and not discussion, provided a record of results,

and sold the "simplification idea".

Simplification of commercial sizes of crushed stone is advocated by the Engineering Bureau of the National Crushed Stene Association as a means of helping sales,

leading to economies "and better understanding between producer and consumer",

a c cor ding t© an exchange,

vL> -J+ J, J, -V 'I' O* -S The National Assccia tion of Purchasing Agents, at its 11th annual meeting

ir i>s Angeles, last month, featured simplifica tion and standa rdizatien as means

of improving the efficiency of the purchasing agent in his services to business.

1 bL, Chandler, secretary, made the following comment: "Our connection with the

Department of Commerce is one of the most valuable we have, * * The Department,

through its various divisions has rendered invaluable assistance to us in many oi our projects."

* >1= The results of Simplified Pra ctice dealing with steol barrels and drums have

oeen placed before 4,000 buyers by the Detroit Range Boiler & Steel Barrel Co, in

a bulletin, which urges all users to study their needs and apply Simplified Practice

de commendations wherever possible. "Mr. Hoover" says the bulletin, "has shown us

the wa y to save millions of dollars in this one industry, and the responsibility

zests upon each individua 1 to follow him as far as he can."

5{C 5{C >JC That there is still a tremendous opportunity for manufacturers and others to

learn about Simplified Practice and what it holds for their benefit is indicated

by a recent survey made by 0, L. Stone, manager of the Associated Industries of

Massachusetts. Mr. Stone received 27 replies to five questions. To the question

'Are you using Simplified practice Recommendations as a guide in buying, 1 5 replied

'yes

11 and 22 said "Ho". When a sked "in wha t lines have you been urged to buy

only simplified lines" four didn't answer, 18 said "none", and four indicated that

they had received such requests. To the question "Can you cite any actual savings

by buying Simplified lines" four didn’t answer, 21 could not specify savings, and

3nly »ne reported "yes" 17hen asked "What other c-onta cts have you had with

Simplified Practice Reccnnendat inns" , 14 had none, five didn't answer, ^and seven indicated that they had had such contact. Six firms indicated a belief that

Simplified Practice had benefits for individual industry; 11 others were cf the

opinion that industry generally benefits; 19 believed that the nation at larre g.ins

from Simplified Practice. Five could see no value from simplification, and three

MNB-16 Page 6

did not answer,, To the question "Yfhat additional commodity lines shew; the

greatest need for Simplified Practice," 14 had no answer, 7 made suggestions as to

specific lines, three replied that they didn’t know, and two were indefinite.

The conditions disclosed "by this survey are in spite of the tremendous impetus

given by the cooperation of trade associations of manufacturers, distributers and

consumers, by trade journals, and by advertising campaigns of a number of groups

which have participated in Simplified Practice, They only bear out the comment

made by Secretary Hoover that "There is a grea t area still untouched, in which

the a pplication of those waste-elimina ting measures may well save not millions

but billions 0 " * $ $ $

At a recent meeting of secretaries of 30 engineering societies from all over

the country, the question of cooperation in simplification work was discussed, and

the consensus of opinion was that such sooperation should be given very generally*

ik * * ije An instance of hew to move slow stocks and speed up stockturn is given in an exchange as follows; "it is interesting to note that the elimination of too much

variety does not reduce the retailer’s sales, but rather tends to increas them.

In recent tests on hosiery, the number of items carried were redt\ced by two-thirds

and at the same time the percentage of customers entering the store who made

purchases increased from 50 to 80$. This paradox came about because with a limited

number of items it was possible to carry a complete line of each of the items.

Customers entering the store were not confused in seeing a shade which, it later

developed, could not be bought in the size they required,"

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. v!< •T* *T» "f* v Reports from heads of Home Economic Deportments and Leaders of Home Demonstration bureaus have been received by the American Home Economics Association as to

items which are in need of simplifica tion in the field of home economics. Mere

than 50 subjects are included in the list, which embraces household equipment,

kitchen utensils, textiles, books and magazines, and package goods. Among the

subjects suggested in household equipment are brushes, dust pans, cook stoves,

refrigerators, tables, washing machines and sinks. In kitchen utensils the

suggestions range from cookie cutters to double boilers, from potato mashers to

casseroles and can openers,

»'< jJj d. Simplified Pra ctice Recommendation Ho, 51, on self-opening die head chasers

has been issued from the Government Printing Office,

sj< Jf :J< 5]c Out of 18 sub-committees which have been named to stiidy specific phases of

wood utilization for the National Committee on Wood Utiliz ation, reports have been

received that the following have begun their tasks; logging, construction, snail

dimension stock, pulp and paper, wood chemicals containers and regional wood

utilization,

sjc s|< ;J< In response to an inquiry sent out by the National Committee on Metals Utiliza

tion to Manufacturers and others interested in foundry practice as to proposals to

show the approximate weight of castings on blue prints or inquiries sent to foundri'

for quotation, more than 95$ of the 3,000 responses have indicated the desirability

of such a plan.

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. Keeping the government businesa in line with commercial practice, the

Comptroller General of the United States has issued, as a part of General P.egulations No, 51, instructions concerning the National Standard Invoice Form as Follows

"Attention is invited to the form of National Standard Invoice approved by

the Secretary of Commerce and indorsed by numerous commercial purchasing and

accounting officers’ associations. This form is intended to be used universally

by individuals, firms and corporations in their daily business transactions with

a view to simplifying commercial practice and eliminating waste, Vfherever it is

practicable and desirable to use dealers* invoices or bills ** It is desired that,

in the interest of uniformity of evidence furnished, size of form, and widespread acceptance of same in the commercial world, payees be requested to submit

their bills on the National Standard Invoice Form to the fullest extent possible,

to be duly attached to and become a part of their vouchers,

* * * * Sales of copies of Simplified Practice Recommendations are rapidly nearing

the -quarter of a million mark. They are being bought not only by trade associations but by large manufacturers and distributors in order that their men in the

field may be kept in touch with the latest developments, Yale University bought

500 for class work.

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Recent foreign visitors have included representatives of the Japanese Government and Japanese Engineering Standards Committee, manufacturers from Ireland,

England and Germany, and students from Wales, Letters from foreign countries have

indicated interest in Simplified Practice as being on the gain in Australia,

South Africa, England and Italy.

* * * The Bulletin of the Societe d*Encouragement pour l

r Industrie National of

France, in April contains a complete translation into French of "Simplified Practice

What It Is and What It Offers".

* * * *

In addition to 11 other industrial groups in which there has been shown an average adherence to Simplified Practice Recommendations of 82%, reports from the

lumber industry show an adherence of 80% to standard and 14% to extra standard

lumber, under American Lumber Standards; and the sheet steel industry shows 52-l/2%

adherence to the recommendations. This is one method by which the value of

Simplified Practice to an industry proves itself.

* * * * A last minute report indicates that waste elimination is very ancient in

origin. The cunieform inscriptions on clay bricks uncovered in digging for the

history of the ancient Assyrians indicate that the teachers of that ancient people

taught the saving of space by writing on all six sides of the tablets l * * * * In a booklet "How Gallaher Made Good", the Merchants Service of the National

Cash Register Company, Dayton, gives the story of a retailer who turned defeat

into success, and who attributes part of his success to simplification of his

stocks

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