I&NTHLY KSWS BULLETIN

of the

Division of Simplified Practice

Deioartment of Commerce

Washington

May 15 , 1926 No. l4 .

SlvIALL LOTS AND SIMPLIFIED PRACTICE

During the last few years, retail merchants have been the cause of

widespread discussion "by the rest of the lousiness community due to the growth

of the practice of "hand-to-mouth” "buying.

On the one hand have "been those ready to see this type of "buying as an

indication of fear on the part of the retail distributor. This group has "been

ready to read an interpretation of uneasiness for the future of business. As

against this viewpoint, there has been the recognition by another group of a new set of retail buying habits, habits developed in the interest of a greater

turnover of business on a smaller investment. Records of business totals have

indicated that the volume of business has been on a par with that of years

before this practice developed, but they also indicate that the new habits are

a factor in steadying business* economists declare.

The simplification of variety, it is pointed cut, holds important advantages

both to retailer and wholesaler, as well as the manufacturer. And when the

elimination of excess variety is brought about through the adoption by an

industry of Simplified Practice Recommendations, the result is that styles are

kept very close to demand and the movement of goods from manufacturer to consumer is made more rapid and even. The dangers to retail success are eliminated to a degree through the lessened temptation to purchase in a haphazard manner, and through the ability to carry a more complete stock of the

simplified lines.

As the matter is stated in a recent bulletin of the Kardex Institute:

"Small lot buying * * does not mean a reduction in total volume

of purchases, but simply better coordination between purchases and

sales." * * Not many years ago a season's order was placed months in

advance, and the volume of manufacturing was determined by the orders

which had been placed. If a retailer had made a bad guess of his need,

he was the one who suffered. * * "

Through the adoption of Simplified Practice, the "bad guess" is minimized,

Doth for the manufacturer , the distributor, the retailer and the user.

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Tne Union Trust Company of Detroit is another Bank to support Simplified

Practice. In its "Postscript to Executives Bulletin1 ’ excerpts mere included

from speeches on the subject Before meetings of the Vertex, Kiwanis and Lions

vlubs of Detroit last month, at which the Chief of the Division was guest speaker.

****.*

Ten thousand purchasing agents are Being asked By puBlishers of ’’The Purcnasing Agent” as to the extent to which they are using specifications in

purchases—and particularly those of the Federal Specifications Board.

* * * * Antioch College, at Yellow Springs, 0., is giving an important place to

.kaerican Lumber Standards in the curriculum of a short course in lumber rei,ail1 ing, Tlie inauguration of this course Brought registrations from six states

! Before the opening day, * * * * * One great puBlic service corporation, which took its first organized steps

! toward simplification and standardization of office supplies in 1913* ^* as covered that the savings amount to from $50>000 to $70,000 annually. Some of

i the reductions made were; from 37 grades of paper to 11; a 30fo reduction in

numBer of forms; 30fo cut in the number of weights of paper. Qthe£ economies

came through standardizing on carBon paper and on typewriter rioBon grades.

Long-time contracts for supplies have Brought further savings to this company,

• * * * V# * Detroit’s City Purchasing Department is developing a very definite plan

far standardization of purchases, Howard H. Tewksbury, manager oi the detroit

District Offise of the Bureau of Foreign and Domestic Commerce, Department of

Commerce , reports. The Detroit plan will take full cognizance of Simplified

Practice Recommendations which are in effect.

* * * * * Municipal cooperation on the part of other cities is noted in tne . following

comment By Mr. W. A. Bassett, consulting engineer of the Bureau of Municipal

( Research, who says; 11 We are interested in all that pertains to Simplified Practice,

* * * Numerous students of the Simplified Practice movement have pointed out that

the work of the Division has not more than ” scratched the surface’ 1 01 opportunities. Nov/ a private engineering organization has Been formed to carry the

principles of simplification into industry on a commercial basis.

*****

Simplification is Being carried out By one Pacific Coast oan&y company

which has reduced its variety from more than 1,000 different kinds o± candy 00

about 600 kinds. Of the latter number, one item furnishes demand for nearly

20fo of the plant’s capacity. * * * *

111 expressing regret at inability to attend a meeting of the Cali foruxa

Manufacturers Association in Los Angeles last week, Rear Admiral u.J. Peoples

said of the cooperation of th® Association in simplification "The Na/y is

much interested in standardization work of the * * Association ana is plcas«d

to note the commendable and constructive things which have Been accomplished

along this line.” The Navy, Rear Admiral Peoples pointed out, nas lor mS2V years

sought to make its specifications conform to the Best commercial standards, ana,

he continued: ” Anything that can Be done towards standardizing commercial

practices * * * will Be of tremendous Benefit to industry as «• whole. The sav- ingsthat can Be accomplished through reduction in capital invested in commodities

By reducing' stocks and permitting a more rapid turnover is tremendous”. He also

indicates the value of simplification fend standardization from the military point,

of view.

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"By resolution, the National Machine Tool Builders Association today

adopted Simplified Practice Bo commendations on thread sizes for self-opening

die heads", says a telegram from E, F* Du Brul, General Manager of that organization. The influence of this organisation, supplemented hy aggressive action

on the pant of producers of these 'commodities, presages an early and sweeping

adoption of the simplification program. The Cadillac Motor Car Co., is among

the most recent users to accept this recommendation.

* * * * * The Department of Civil Engineering of the University of Missouri is one of the latest schools to undertake a close-up study of Simplified Practice,

as a sequel to studies of waste in industry.

* * * * * At a recent conference to consider the inclusion of casting v/eights on

"blue prints sent to foundries for estimate, it was estimated that savings of

$5 >000,000 a year in the time of engineers, or foundry superintendents and estimating departments could he brought about by the adoption of such a practice.

* * * * * "To my way of thinking, there is a clean-cut saving all along the line

from the steel works to the finished sheet metal job", is the comment of a leading steel manufacturer on the results of the Sheet Steel Simplified Practice

Recommendation. This manufacturer is another of a group promoting the use of

23 gauge or heavier material by using stickers on all correspondence* "With a very few exceptions", he reports "the mills are working conscientiously to stamp

out the extremely light gauges of roofing."

* * * * * One big Ohio corporation has its specifications under close scrutiny

to simplify purchases. It has recently adopted the National Standard Invoice

Form, has cut out many special specifications for fire tile and brick, and is

now working toward elimination of excess varieties of bolts, screws and other

parts. The purchasing agent of the company happens to be president of the local

Association of Purchasing Agents, and in addition to pushing Simplified Practice

among the members of that group, is bringing the principle to bear in his own

company. * * * * * Members of the Manufacturers Association of Connecticut, Inc., have had

their taste for information about Simplified Practice whetted by material printed in "Connecticut Industry", the journal of that Association. "Numerous re- quests for more material have been received", says a report.

* * * * * Standardization and simplification will be two subjects to be made the

topic of a committee report at the annual convention of the American Railway

Tool Foremen's Association to be held in Chicago in September.

*****

Simplified Practice Recommendations on lumber are included in a Handbook

for Architects and builders, Vol XXVIII, issued under the auspices of the Illino'

Society of Architects. Inclusion of all Simplified Practice Recommendations in- such handbooks would expedite the general adoption of the waste elimination program and obviate confusion among users of materials which have been simplified.

* * * * *

C. W. Hillman, Shop superintendent of the Minneapolis & St. Louis R.R. Co. , reporting in a recent issue of the American Machinist on Standardization of

locomotive repairs, says "the advantages are greater than the disadvantages",

and then tells how the work has been developed on that railroad.

*****
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'
"More Scientific Purchasing1'* is to "be the keynote of the 11th annual

convention of the National Association of Purchasing Agents, in Los Angelos

next month, ” Elimination of Waste1', v Governmental Purchases”, Purchasing Prom

an Executive's Standpoint” Purchase as a- Major Pane t ion. of Management’1 , are

some of the topics of addresses.

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Kentucky has just created a commission for all state purchases.

>)c ;*;:*£*' B. H. Ackles, of Detroit, a member of the Planning' Committee of the Division

of Simplified practice, has "been re-elected for the third time as president of

the National Supply and Machinery Distributors Association.

* * jjc The Tennessee Manufacturer

Chattanooga early next month to

waste

s Association is to hold a special meeting in

consider cooperation in the elimination of

* * * * * Simplified Practice is to "be a. topic fer consideration at the annual meeting of the Electrical Supply Jobbers Association at Hot Springs in June.

* * * * * Charts on the elimination of waste are being used effectively by a great

electrical supply manufacturer to assist' its jobbers in doing. better business

at less cost.,

% By simplification and standardisation one big Connecticut manufacturing

company has in five years reduced its inventories' o.f tool steel from o] 5 , 000 to 77)503 pounds and of machine steel from 6o4,000 pounds to 73 >090 pe'nnds. It

formerly carried a. year's supply, with less than one-half of one turnover per

year, and now gets about three turnovers. In other items it has increased from

tv/o-to- three turnovers to a rate of five-to-six turnovers. These increases are spurring the company to even greater efforts,

^ 5fC He Zee Colorado Manufacturers and Merchants Association has .named a committee

to cooperate in spreading information about 'simplified practice and waste

elimination.

bje 5jC #' #

When the Hailway Accounting Officers Association holds its ^Sth aiurual

meeting next month in Quebec, reports will be made by the Committee on Disbursement Accounts recommending the revision of the former standard form of

voucher checks to conform to the Simplified Practice Rec 0mme ridat i op on bank

checks and commercial instruments. The committee will also report progress on

a standard tracer form and on the adoption of the National Standard Invoice Eorm,

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To eliminate the confusion caused by 30 v/ire and sheet metal gauge systems

in use in this country, representatives of some organizations- interested

in a uniform designation, meeting with the American Engineering Standards Committee, have indicated preference for a designation of sizes in decimals of 'an inMi, .• * # # ¥ * The Nevada Mine Operators Association has named a comrit tee to cooperate in

promoting Simplified Practice, This group includes representatives from Toncpah,

Goldfield, .Virginia City, Hath, Reno, and .McGill, and from some of the largest

mining enterprises in that state.

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The Virginia Manufacturers Association is one of the la-test organizations

to "broadcast information to its membership regarding Simplified Practice, It has

j just sent bulletin information regarding simplification of bank checks and commercial instruments, tinware, galvanized and japanned ware, lumber, and brass

| lavatory and sink traps.

* % * * * The Illinois Manufacturers Association has named a committee comprising

I Prank A. Hecht, Jr. , of Kaestner & Heclit Co. , P, W. Brokamp, of the Armstrong

Paint & Varnish Works , Percy A. Tonk of Tonk Manufacturing Co. , and B. J. Cahn

of B. Kuppenheimer & Co. Inc. , all of Chicago., and A. P. Trever of the Whiting

Corporation, Harvey, 111, , to cooperate in broadcasting the value of simplification. Supplementing previous bulletins, John M. Glenn, secretary of the

Association, has sent to the membership a list of all Simplified Practice

Recommendations as a guid.e to buyers. He lias also asked for information as to

the extent of sales effort to increase use of simplified lines; and for observations of the membership as to actual savings or other benefits from Simplified

Practice.

* * * * * The use of American Lumber Standards is rapidly growing, reports to the

Central Committee on Lumber Standards from manufacturers show. Figures for

February 1926 as compared with the first quarter of 1925 indicate that lumber

cut to American Lumber Standards had increased as follows: Finish, 14$; common

boards 14j\ dimension lumber 12$; Sheathing and shiplap 10$; flooring 17$•

leper ts on sub® standard lumber show in but two classes- dimension lumber and sheet

ing and shiplap, was there an increase in manufacture. Ninety per cent of shipI

nents were made in standard sizes; and 76$ of the manufacturers reported little

or no demand for sub- standard lumber.

* * * * * Announcement made in last Monthly News Bulletin of the prizes of $1500

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offered by Mr, Alvan T. ->Simonds for the best essays on "Saving and Spending,

as factors in prosperity- with special reference to the effect of Simplified

Practice and the Elimination of Waste on the Standards of Living" Jaas apparently

attracted attention of a number of students. The Division has received a number

of requests for information from prospective contestants as to the development

of Simplified Practice, It is ready to perform tho same service to others who

wish to enter this contest. Several Universities have advised the Department

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that their students' attention has been called to the Simonds Contest.

* * * * * President J. R. Millar of the California Manufacturers' Association has

called a meeting of industrial leaders of the state to increase the pressure

on the part of the Association among the industries of the state in participating in the Elimination of Waste movement. The cooperation of California

j, Ins been organized to a degree not yet attained by other states/. The state

manufacturers' organization has a committee, on cooperation, has conducted

a survey on the extent of knowledge of and use of Simplified Practice

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Recommendations, and has an active speakers' bureau which supplies speakers

on Simplification subjects to groups which are not thoroughly familiar with

the movement. * * * * *