DEPARTMENT OF COMMERCE

WASHINGTON

October 15, 1927

MONTHLY NEWS BULLETIN

of

DIVISION OF SIMPLIFIED PRACTICE

AMERICAN MARINE STANDARDS COMMITTEE

No. 31.

TABLE OF CONTENTS

Paragraphs

Accepts Simplification 22

Application of Simplification 5

Careless Overhead 3 Cold-Packed Cherries Standardized 4

Commercial Standards 1 Credit Men Interested in Simplification 25

Detroit Edison Co. and Simplification 24

Early Writings on Simplification 10

Economies of Yesterday are Profits of

Today 17

Federal Specifications 16

French Standardization 13

Paragraphs

German Dedicates Book to Hoover.. 20

Management Week 23

Minimizing Inventory Investment 27

Minimizing Transportation Loss 9 Marine Standardization. , 28

National Standardization.. 14

To Simplify Building Code 21

Railroad Cuts Stationery Expenses. 18

Railway Interested in Simplification 11 Rationalization 19

Sales Increased 100% on Simplified Lamps 15

Simplification 2,6,7,8,12,26

1. COMMERCIAL STANDARDS. The steadily increasing use of specifications as an aid in industrial and

governmental buying is reflected in The National Directory of Commodity Specifications.

In compiling this book, the Bureau of Standards found more than 27.000 specifications covering 5,000 commodities. In the case of concrete reinforcing bars, there were 57 different

specifications

.

Since specifications apply mainly to grades and qualities, performance and features other

than size and dimension, it is evident that simplification, or the elimination of unnec- cessary sizes is only a partial step in the elimination of waste. Experience with Simplified Practice has demonstrated the possibilities in many fields for further achievements

in waste reduction through the elimination of unnecessary specifications and the establishment as "Commercial Standards", of those most widely or generally used. Manufacturers

have already pointed out to the Department of Commerce the opportunity and the need for its

cooperation in securing the elimination of unnecessary grades and qualities in various

lines of products. They find that "too many grades" often complicate production and distribution just as "too many sizes" do.

In recognition of the request for cooperative service in this phase of the simplification

program, the Department of Commerce announces through its Bureau of Standards that it is now prepared to aid those industrial and commercial groups desiring to establish standards

of grade and quality for their products or their purchases, or to secure relief in instances
Monthly News Bulletin No. 31 —2

where the current variety in grades, qualities, and specifications is a burden on the producer, and a handicap to the purchaser.

The Bureau's service in this direction includes a certificate and labelling plan wherein

goods manufactured according to commercial standards approved by the Bureau, may be so labelled and certified to by the manufacturers. This affords a greater protection to the

purchaser and at the same time strengthens the manufacturers selling arguments.

Groups desiring further information on this broadened service of the Bureau are invited

to address R. M. Hudson, Assistant Director, Commercial Standards, Commerce Building,

Pennsylvania Avenue and 19th Street, Washington, D. C.

2. SIMPLIFICATION OFFICIAL PROMOTED. E. W. Ely, formerly Assistant Chief of the Division of Simplified Practice, has been appointed Acting Chief of that Division, thereby succeeding R. M

Hudson, who has been promoted to Assistant Director of the Bureau of Standards in charge of

Commercial Standardization.

3. CARELESS OVERHEAD. "You can't compete with careless overhead", says Alvan Macauley, President

of the Packard Motor Car Company, in the Magazine of Business for September, "careless

overhead, which pervades American business today, is something which no business can afford under present circumstances.

"Average rate of return on capital is decreasing steadily. Overhead may be careless because it is too high, representing either extravagance in expenditure or waste in methods,

it may be wrongly distributed over the business, or it may be too low and represent pennysaving penury. Many companies are spending money trying to force volume when they could

make better returns on investment by cutting overhead and costs.

"The one sensible way to go at the problem of overhead is to back away from the details

of the business and then make an analytical approach. It is no longer merely advisable to make sure of accurate allocation of overhead items - it is mandatory. This allocation

should be done by an executive of the company. Needless paper work is one of chief sources of careless overhead in many businesses."

4. COLD-PACKED CHERRIES STANDARDIZED- This year's cold-packed cherries will go out to the trade

bearing a seal of official inspection, based upon standards and specifications laid down

by the preservers and adopted by the packers, according to the National Preserve Association .

5. APPLICATION OF SIMPLIFICATION. Industry has made great progress in simplification, according

to H. J. Odenthal , executive secretary of the Washington. D. C. City Club, in the "City

Club Tribune". He says that "simplification is the philosophy of management which eliminates waste, duplication and unnecessary motions in any business. It has its basis in the

multitude of diversified products and the great number of highly differentiated manufacturing methods and distributive practices that in advancing civilization results from increased productivity and everwidening markets".

6. STANDARDIZATION PAYS. It is of considerable interest to note that more and more industrial concerns definitely recognize that through standardization it is possible not only to produce cheaper goods but better, remarks the Abrasive Industry with the statement that "in

the machinery field" one company. The Boston Gear Company of Norfolk Downs, Mass., has

adopted as a registered slogan the words "Standardization Pays".
Monthly News Bulletin No . 31 —3

v 7. SIMPLIFIED PROCEDURE NEEDED AS TRADE AID. Representatives of 21 nations, members of the PanAmerican Commission on the Simplification and Standardization of consular procedure as- sembled in Washington, D. C. on October 10th, for the purpose of working out a plan on this subject for the American republics. The conference considered the reduction of the

number of shipping documents requiring consular certification, simplification of data re- quired for consular invoices, possibility of the adoption cf a standard form of consular

invoice and a moderation of consular fees and other questions relating to consular documentation, practice and procedure.

8. STEEL BARRELS AND DRUMS. It is interesting to note that the survey on the results of Simplified Practice Recommendation dealing with steel barrels and drums for the year 1926,

shows 89.04% adherence for the recommendation, and only 10.96% steel barrels and drums

are non-standard.

9. MINIMIZING TRANSPORTATION LOSS. Under this head the Management Bulletin of the Kardex Institute

recently carried a very interesting story by G. Lloyd Wilson of the Wharton School of Fi- nance and Commerce, University of Pennsylvania, on minimizing loss and damage in transportation. Professor Wilson said in part:

"Shippers and carriers are both concerned with the reduction of waste in transportation, and, of the two. the shippers are really the more concerned ultimately. Loss, damage, and delay claims eat into the carrier’s profits, it is true, but the losses are ex- penses for which they must provide, with the result that the waste is reflected in the

rates charged for transportation. Individual shippers, consignees, organizations of shippers and receivers of freight, trade associations, chambers of commerce, shipping container manufacturers, the carriers, and several bureaus of the Federal Government are working

out constructive plans for the reduction and elimination of this waste".

10. EARLY WRITINGS ON SIMPLIFICATION. A booklet of unusual historical interest to sound management

has just been brought to light, according to the Abrasive Industry trade publication. This

book was written in 1875 by the late John E. Sweet, a founder and honary member in perpetuity of the American Society of Mechanical Engineers, who served as master mechanic and director of the machine shop at Cornell University from 1873 until 1878. In this book he said:

"In no part of machine shop practice do the advantages of a uniform standard of sizes

show themselves ao frequently as in the use of bolts and nuts" . Today there is a Simplified Practice Recommendation for bolts and nuts.

The most noteworthy chapter in the book is one entitled Standard Gages. This opens with a tribute to the old-time carpenters, who, with the wrought-iron square, were able to go into a field of timber and there lay out and frame perfectly a large building.

11. RAILWAY INTERESTED IN SIMPLIFICATION. The matter of eliminating waste is one in which F. H. Millard, assistant to the President of the St. Louis Southwestern Railway Company, is more deeply interested than any other at this particular time, according to a recent communication from Mr. Millard to the Division of Simplified Practice, in which he enclosed a copy

of a report that he had just rendered the President of the Railroad on the subject.

"Essential as conservation of paper and paper stock appears to be . I think it even more impertant for labor to be saved" he said in his letter.

12. SIMPLIFIED FORMS AND RECORDS. In his article "Reducing Expenses by Executive Self-Government"

in Manufacturing Industries, William H. Kushnick, assistant to the Treasurer of the Ameri-
Monthly News Bulletin No. 31 —4

can Metal Cap Company said: "The clerical committee has simplified and standardized our forms and records, thereby saving much in printing and clerical expenses. It has also

brought about the accumulation of more accurate and valuable data".

13. FRENCH STANDARDIZATION. Led by a number of outstanding French engineers, a movement is now afoot in France toward the standardization of automobile parts and simplification of methods of manufacture. A study is being made preliminary to establishing a "Bureau of Normalization". The leading spirits in the movement believe that only standardization will

allow the French automobile industry to maintain its rank in the world,

14. NATIONAL STANDARDIZATION. Commercial standardization is not a matter of opinion. It involves

economic and business researches and executive decisions based on facts, said L. W. W. Morrow, managing editor of the Electrical World, in discussing National Standardization in

that publication. Continuing he said:

"The commercial goal is a minimum standard of quality of product for each need of commerce and for the fewest possible varieties and types of commercial services and products. Standardization is an active principle in the conduct of business and as such de- serves and needs a standardized procedure. Chaotic, chance and individual standards must

give way to those formulated in an orderly and efficient manner wherein the process is con- tinuous to the degree economics and service needs require revisions to be made.

"There are 465 standardizing agencies in this country now working as independent

units. These groups are uncoordinated in procedure, methods of support and organization.

They have grown a part of the evolution of standardization and have done a good job under

the restricted conditions . The time has arrived to plan national and industry standardization on a sounder basis. Enough knowledge of standardization has been had and the cost

of supporting these agencies has grown to more than $8,000,000 a year. This is too much

money to be spent in hit-or-miss fashion"

15. SALES INCREASED 100% ON SIMPLIFIED LAMPS. Following the simplification of style and sizes of

Mazda lamps, the investment in stock on hand was reduced two-thirds by the Mayflower Stores

Providence, R. I.. J. L. McHenry of that firm wrote to the Division of Simplified Practice

He said that the types and sizes have been reduced from 39 to 6 , and the entire selling

organization of the stores has had more opportunity to talk intelligently about the six

types they have to sell. Their sales on lamps have increased 100 per cent.

16. FEDERAL SPECIFICATIONS. The Federal Specifications Board has promulgated the following specifications as United States Government Master Specifications, as of September 22nd, copies

of which may be secured upon request by addressing the Federal Specifications Board, Bureau of Standards, Washington, D. C.

F.S.B. No.

25C - Feeds and Forage. Revision.

172A - Bronze Castings. Revision.

290A - Bronze Ingots (For Remelting) Revision.

527 - Hose. Fire, Unlined Linen.

528 - Cord, Sash, Cotton Braided.

529 - Twine, Cotton, Seine.

530 - Twine. Cotton.
Monthly News Bulletin No. 31 —5

17. ECONOMIES OF YESTERDAY ARE PROFITS OF TODAY. Since 1918, this country, always a wasteful one because of the superabundance of all raw materials, has awakened to the fact that our re- sources must be conserved - that excessive waste must be eliminated; that standardization

and simplified practices must be applied if we are to successfully compete with our foreign competitors, who have taken advanced steps on these questions, says Sidney L. Wilson,

President of the American Writing Paper Co., Inc., in the American MVTVAL Magazine.

Mr. Wilson says in his article that competition today is not the competition of twentyfive years ago. Many industries have learned this; those that have not are the ones that are gradually being eliminated. Profits of today represent the economies of yesterday,

and some of them come from standardization and simplification, with the consequent greater product of a fewer standard sizes, weights, grades and colors - and with a reduction

of needed capital to conduct one’s business, and its release for other purposes.

18. RAILROAD CUTS STATIONERY EXPENSES. An investigation recently concluded by a special committee

of nine department heads of the Great Northern Railroad has resulted in a $55,000 reduction in that railroad’s expenditures for stationery. The committee, which carried on its

investigation for 18 months, examined 3,689 forms of stationery; of these forms, 379 were

found to be obsolete or out of use, 651 were consolidated and 1,980 were revised, leaving

only 679 forms which were not altered. Savings were made by standardizing sizes, reducing

varieties and cheapening the quality of the paper stock where possible. Cost of the investigation and changes made was $4,689.

19. RATIONALIZATION. Rationalization or the German word of which it is equivalent, is a word to conjure by in Germany, according to the American Machinist which says that the movement

will bear watching , Some of its component parts have counterparts in the United States but

there has not been anything to correspond to a unified movement supported by practically

a whole people. If Americans can learn something by watching its development, something

that they can emulate to advantage, well and good. If it appears likely that its success

will permit Germany to produce better quality at less cost, it is all the more worth

watching

20. GERMAN DEDICATES BOOK TO HOOVER. Last year Mr. B. Birnfcaum, of Berlin, Germany, came to America, with the German Merchants Delegation for an inspection of our industries. This delegation was received by Secretary of Commerce Hoover, and shown the functions of the Department of Commerce, including the work of the Division of Simplified Practice. Upon

returning to Germany Mr. Birnbaum wrote a book, dedicating it to Secretary Hoover, on The

Elimination of Waste Movement in the United States.

21. TO SIMPLIFY BUILDING CODE. More than six billion dollars worth of construction was added to the wealth of the nation during the last calendar year. Of this, a large proportion was erected subject to complicated building code regulations. The differences in requirements

were noticeably less than in previous years however, and the process of reducing such

codes to a simple and logical basis is expected to proceed steadily. This should result

in the elimination of much economical waste. In many cases, unnecessarily severe requirements will be lightened. Manufacturers of building materials will have a fairer basis of

competition. Prospective home owners and other builders will have greater assurance of

value received.
Monthly News Bulletin No . 31 —6

22 . ACCEPTS SIMPLIFICATION. "The benefits to which a manufacturer may expect to realize from

simplification and standardization of his product usually come only after a long period

of years of rigid adherence to the fundamental principles", recently wrote R. E. Kinkead,

chief engineer. Welder Division of the Lincoln Electric Company, Cleveland, Ohio, to the

Division of Simplified Practice. In his letter Mr. Kinkead said that "it was a simple

matter to resolve to simplify one’s product, it is a painful and laborious job to lay out

a program for doing it and to actually carry that program thru to the finish. It always

appears so much easier to add now lines of equipment, if one is a machinery manufacturer,

than to simplify and reduce the cost of the present line.

"We undertook the job of finding out how much our own manufacturing processes could be

simplified, rather than change the demand. The first indictment was drawn against the

pattern storage shed. We found that W9 had 6,482 different patterns. Every time a cus- tomer wanted something special we made a pattern, used and stored it with the hope that

we could use it again. A good deal of our profit was stored in that pattern shed,

"We stopped making special equipment, Then it occurred to us that the use of patterns and

/ castings ought to be looked into a bit. We found that we could buy hot rolled steel, cut

it to size, form it to the proper shape and weld the assembly into the equivalent of a casting for about one-third the cost of castings. Our revolt from castings started in j 1921. By the end of 1926, we had eliminated 85% of the tonnage of castings formerly used.

'r By January 1, 1928, we will have eliminated 99% of the tonnage of castings we formerly

used

.

. "The principle upon which we have effected such large economies is of course simpl.ification. It required three years to begin to realize the actual financial returns from the

simplification program, that is, to be able to take the profits out of the business in

j the form of dividends. Simplified Practice pays large dividends if a definite program

is laid out and that program followed through to the logical conclusion" .

23 . MANAGEMENT WEEK, Since the issuance of the last Monthly News Bulletin, Management Week plans j

have made excellent progress. Organizers have been appointed in a total of 97 cities.

Jj( The movement is receiving wide and favorable support from the trade press and as the week

approaches, the daily papers plan to give publicity to the local programs in their re- spective cities. R. M. Hudson, Secretary-Treasurer of the National Committee will be

glad to furnish anyone interested with detailed information regarding arrangements already

completed or in prospect. The readers of this Bulletin are urged to attend local meetings

and take an active part in the nation-wide discussion of "Management’s Part in Maintaining

Prosperity"

.

24 . DETROIT EDISON COMPANY AND SIMPLIFICATION. Standardization and simplification present great

opportunities for the elimination of waste in modern industry is the belief of officials

|

' of the Detroit Edison Company, according to R. B. Marshall in charge of specifications j for that company. This company has done considerable work in the past few years along

this line. Mr. Marshall states, emphasizing in particular, buying to specification and

proper inspection of what they buy. Detroit Edison Company have felt that there was also

a great opportunity for internal simplification and standardization, both as to nomenclature and specifications.

25. CREDIT MEN INTERESTED IN SIMPLIFICATION. A recent contact with the members of the Retail

Credit Men’s National Association revealed to the Division of Simplified Practice a widespread interest on their part in simplification. Three hundred requests came in for the

Monthly News Bulletin, with comments on simplification. Typical of these comments were

the following:
Monthly News Bulletin No. 31 —7

"You may count on my cooperation in any program to stimulate simplification of practice"

wrote Marie MacDonald Jensen of the Richmond, Calif. Credit Rating Bureau, while W. C. Hight of the N. W. Arkansas Credit Association . Fayetteville. Ark., said: "We find your

bulletin very instructive and feel that it will be helpful in an educational way to the

retail merchants and other members of our organization". W, W. McMein of the Merchants

Credit Bureau, Hannibal, Mo. said in his letter that he believed "it would be good for any

bureau manager to have the bulletin because it gives a lot of information that would be

good for the different retail credit men".

26. RECENT ACTIVITIES OF DIVISION OF SIMPLIFIED PRACTICE

Preliminary, general, and revision conferences, have recently been held under the auspices

of the Division of Simplified Practice, U. S. Department of Commerce, looking to the simplification of:

I HOSPITAL PLUMBING FIXTURES. In survey stage. As soon as survey is completed, tentative Simplified

Practice Recommendation will be drawn up for a general conference, to be held probably in

November

.

CONTAINERS FOR VEGETABLE SHORTENING. The Interstate Cotton Seed Crushers Association has submitted

a recommended list of sizes for containers and a general conference will shortly be held.

CHEESE AND CHEESE CONTAINERS. Recommendations have been made regarding sizes on this project.

Survey will shortly be started looking to adoption of Simplified Practice Recommendation.

ICE CREAM CANS: CABINETS AND CARTONS. Unanimous opinion in favor of simplification. Preliminary

conference will shortly be held.

POLISHING AND BUFFING WHEELS. Now in process of survey for preliminary conference.

HOUSEHOLD AND INDUSTRIAL BRUSHES. In survey for preliminary conference.

LUGGAGE. National Retail Luggage Dealers Association has appointed a committee to work out sizes.

A joint simplification committee of members of this association and the Trunk. Luggage and

Leather Goods Manufacturers is being formed to work out recommendation.

SURGICAL GAUZE. As a result of a recent survey, a simplified practice recommendation for bolt

gauze, crinoline, bandage rolls and bandages will be considered at a general conference

along with adhesive plaster.

'ENCILS. A meeting was held recently with manufacturers of pencils to develop a simplified line

for this commodity. A tentative list has been prepared and this will be considered at a. general conference to be held soon.

COMPOSITION BOOKS. A meeting will be held in New York this month to consider a report of variety

survey recently made, and to prepare a recommendation which will be presented to a general

conference for consideration.

27. MINIMIZING INVENTORY INVESTMENT. In its section on "Controlling Inventory Investment", the

Financial Handbook, (Ronald Press) says: "The establishment of a definite policy for the

disposal of dormant stocks due to lack of demand or because of unfavorable prices, obsolete types, styles or sizes, is very desirable. Drifting is costly. The sale of much
Monthly News Bulletin No . 31 —8

28 .

goods at a sacrifice of a part or all of the profits thereon, in order to free capital I and space for more active employment has been found a sound profitable procedure"

.

Simplification, or the elimination of seldom-wanted and little used kinds and sizes of

goods, results in concentration of production and selling efforts on the varieties in most common demand. This reduces the hazard of surplus and dormant stocks. Many firms have

found simplification very helpful in reducing their inventory investment to the minimum ,1 consistent with effective operation.

AMERICAN MARINE STANDARDS COMMITTEE

The executive board of the committee met on September 20th and approved four applications

for membership. The subject of stability and loading of ships was discussed at this meeting, with conclusion to leave the preparation of a final report in the hands of the special committee.

Standards were approved to cover the following:

Hubs for built-up propellers.

Fairwater caps for propeller hubs.

Propeller hub studs, nuts and lock screws. Packing gland for propeller hubs.

Specifications for fire clay refractories for marine services.

Life boat sizes.

These standards are to be published as soon as practicable.

The next meeting of the executive board has been set for November 12, 1927.

The following proposed marine standard specifications are being considered by the com- mittee :

f" Air hose

,

1 and Water hose

.

f" and 1 and Steam hose.

2 and Water Suction hose, smooth bore.

4", 6" and 8" Oil suction and discharge hose

•

Insulation coverings for Piping and Machinery on Ships

Magnesia Molded Pipe Coverings and Blocks.

Magnesia Asbestos Cement or Plaster.

Asbestos Millboard.

Hair Felt

.

Cotton Duck for Insulation Coverings.