Department of Gommerce

Division of Simplified Practice

Washington

MONTHLY NEWS BULLETIN February 1% 1PP6 No. 11.

TAKING THE GUBSSaQ&K OUT OF BUYING.

If correspondence can be any guar;® of popularity of a subject, the

editorial in last month’s Monthly N bulletin cn "Simplified Practice and

the Science' of Buying” struck, a most r&aponeive chord in the minds of

Bulletin rea.ders. From every section of the country, writers indicated

their desire to "take the guess work out of "buying*.

Purchasing has become a highly- specialized work in the last few years.

Members of the purchasing profession hundreds of millions of dollars

each year buying material, end equigtttafc* for their respective companies.

Their expenditures must be efficiently made, else their position is unjustifiable. And the purchasing agents have realized most keenly that the real

force of the dollar has been dissipated, by too much variety and by the lack

of uniformity, as well as by other forms of waste.

Through their recognition of this fact, members of this profession are pointing the way to "dollar-conser vat ion” for the thousands of small organizations and companies which a:o« too small to have a purchasing agent constantly

engaged in buying operations. The cooperation of purchasing agents in the

work of the Division of Simplified Practice has been immediate, forceful and

tireless, whatever the nature cf the simplification program under consideration,

The results achieved with their ©jjpoperation are of equal benefit fer the member

of a firm who may spend but a small pare of his time maxing purchases.

The buyer has several prime considerations in his work. First he must

have a thorough knowledge of how the needs of his company may be adequately

served by a given range cf goods. Second, he must keep investments in materials

and equipment at a minimum consistent with good business. Next he must keep

his purchase prices to the lowest point consistent with good quality. Here,

by cooperation with the engineering and production departments, he may find

opportunities to ascertain whether goods already produced under Simplified

Practice Kecommendat ions are adaptable to the company’s needs. Here, again,

if such recommendations can be used effectively, he has the opportunity to tell

the salesman who calls on him that "Simplified Lines” are what he wants.

Incidentally, this has teen done with telling effect in at least one industry

and has been a factor in helping the industry to save many million dollars.

"There is more profit and steadier trade in making a few staple articles

and making them well than in making a great variety of articles for the few

or to meet a wavering demand” is a remark credited to Henry Ford. Mr. Ford

might equally v/sll have said that there is better value and steadier supply

from buying simplified articles—when they are available—than in distributing

purchases over a wide range of goods having immaterial differences.

In buying under Simplified Practice P.ecommendations, wherever possible, the

purchaser is throwing his influence on the side of mass production—which has

been the great factor in America's industrial supremacy—in stabilizing production at reduced costs, and in giving more goods or better quality for the same money.

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One company cooperating in the sheet steel simplification supports th®

Simplified Practice Recommendation by use on its correspondence of a sticker

which says; "Vi/e Recommend 28 Gauge or Heavier for Outside Sheet Metal Work",

The example is attracting wide attention and is a fine influence of "selling

Simplified Practice",

* 4. * * * Trade journals, which are constantly pointing out appor trinities for new simplifications, are urging simplification of alloys in brass and bronze*

One instance was that of a plant casting 250 different analyses during a year

Another was that of a company using lG alloys in manufacturing plumbing

fixtures, which discovered that of the business could be done in two, and

which has since secured ingot metal at a pound below previous costs without

sacrificing quality or ease in subsequent machining of the product,

* * * * *. The adoption of Simplified Practice for sidewalk lights has brought out

a large number of inquiries. One manager of a large number of properties

writes: "Prom the standpoint of owner and operator', I want to thank you for

the efforts you and your department are making ** I am forwarding the papers

to the National Association of Euildirg Owners and Managers. ** I will te glad**

if you will in the future keep me in touch with any work of this kind which

you may be doirg * * in the building trade.

* * * + * Along the same line, the United Real Estate Owners Association of New

York City is planning to broadcast this work among its members.

* * * * * Adherence tothe Simplified Practice Recommendations on Wide and Sail

Cotton Tuck has "been unexpectedly great" , and "The benefits derived therefrom have been material", the Cotton Tuck Association reports. The result

has been a reaffirmation of the recommendations without change for another year,

* * * * Hf The American Association of State Highway Officials has notified the

Division that it has included American Lumber Standards in its new bridge

specifications.

* * * * * American Lumber Standards covering shingle grades and qualities have

been adopted by the Shingle Manufacturers Association of 'Washington and Oregon.

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Influence of Simplified Practice Recommendations is more than nation-wide.

The Canadian paper mills, the Division is informed, are watching progress in

matters affecting sizes and weights, as well as uniform warehouse, purchase,

invoice and inquiry forms and bank cheeks. "The tendency of cur mills" , says

the secretary of the Canadian Paper & Pulp Association, "is, as you perhaps

know, to follow the American mills in such matters. ** "

* * * * * The City of New York, A heavy buyer of many commodities, after having

adopted a number of Simplified Practice Recommendations, comments, through

Peter J. Tooling, Commissioner of Purchase, "You have my hearty endorsement

of your work * * and I will cooperate with you * * wherever possible, to the

fullest extent." Thther Knickerbocker is thus setting a pace for the rest of

the municipalities of the country.

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Applying Simplified Practice to buying, the college of Engineering,

University of Illinois, has announced its acceptance of the Grinding Wheels

Simplified Practice Recommendation.

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n As I am considering building within the next two years, I have already

sent for all of the Simplified Practice bulletins having to do with hollow

tile, slate, hardware, etc." writes a manufacturer of Indiana, whose interest was attracted by prospective simplification in his own industry, "you are accomplishing something the importance of which will be more and more appreciated as the .years go by". If more prospective builders would follow this

course, the benefits of Simplified Fractice would be brought to the consumer more quickly.

* * * * jf. While the tire industry and others interested are discussing a possible

simplification of tire sizes to conserve rubber, a #est Coast manufacturer

of rubber stamps points to nossible economies from simplifying rubcer type

and brass type holders.

An example of the worker's interest in simplification came recently in

a letter citing comments, made in a financial magazine, by a big manufacturer,

on the value of Simplified Practice. This workman, in the hoot and shoe

industry, is anxious to learn how simplification works in his industry. This

is just another proof that the actual producer is eager to take advantage of

and support a movement which advances his earning capacity.

* ii * * t The American Engineering Standards Committee, American Institute of

Architects, American Society for Testing Materials, American Federation of

Labor, and the departments of manufacturer and domestic distribution of the

Chamber of Commerce of the United States have accepted "in principle" the

Simplified Practice Recommendation on Grinding Wheels.

* * * * * "I am strongly in sympathy with the economies being worked out by the

Department of Commerce in Simplified Practice in ether matters. * * n writes the president of the Colorado State Farm Eureau. Keep bearing

down on these things' You are doirg a great work; * * Will cooperate

in any practicable way-

* * * * * "It is interesting to note" says a New York general sales manager,

"that the Rational Association of Purchasing Agents is giving a good deal of

attention to Simplified Practice because, through the cooperation of the

purchasing departments, any work * * can he materially helped,” Perhaps

this writer didn't know that the N.A. P.A. has eight representatives on as many matters in which the Division is cooperating, one of these being on

Secretary Hoover's advisory committee regarding the worm of the Division.

* * * * * The United T.ypcthetae, National Paint Oil and Varnish Association,

and Dairy and Ice Cream Machinery and Supplies Association, Inc-, have accepted

the Standard Invoice Form. The Tulsa Eranch of the National Association cf

Purchasing Agents is using a wall display in its offices showing advantages

of the Standard Form. Two more railroads, Atchison, Topeka & Santa Fe and the

Chicago, Milwaukee and St. Paul, have also become Standard Invoice users- One purchasing agent for a Rome, N.Y-

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company has induced 24 companies «o adopt the Standard form. In other parts cf the country, similar efforts are being carried on and the results will be described in a later bulletin.

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Students of applied science in the Si&te University of Iowa are becoming interested in Simplified Practice, and are planning stories on the

movement in their publication, mfhe Transit”.

* * * * * The Simplified Practice Recommendations reducing steel reinforcing bar

sizes from 40 to 11, adopted mor-e than a year ago, are to remain in force

indefinitely as the result of a revision conference held late last month.

* * * * * The Department of Economics of the University of Michigan is turning

material regarding Simplified Practice to new use--as material for studies

of the economics of consumption. Buyers of Simplified Lines are the real

backbone of the movement.

* * * * * The campaign of the Grocery Bag Manufacturers Bureau, in addition to

advertising the Simplified Practice Recommendations, is being carried to

the jobbers salesmen, ana, according to a report to the Division they are responding a great deal better than had been expected either by the Bureau

or our advertising agents. The simplification is being carried into the

manufacture of fancy duplex coffee and tea bags, and a manufacturer writes:

”If we keep on with this * * there is dq telling where it will lead, once

we have get the simplification habit.”

* * * * * By invitation, the Division had a speaker address the senior class in

engineering administration at Massachusetts Institute of Technology recently,

M. I.T. has a definitely-planned course in Simplified Practice and the class

lately visited a plant to see the pr active,! application of simplification.

Boston University has also included Simplified Practice in its curriculum.

* * * * * .Recommendations that four sisas of steel spiral rods used as cores for

reinforced concrete columns replace seven sizes previously used were adopted

at a conference January Doth, This will become effective December lpf 192&-

* * * * * ”At least one session of the Senior Seminar” of Sheffield Scientific

School of Yale University, will be devoted to a discussion of Simp?^ified

Practice, the Department of Industrial Engineering informs the Division,

***** „ Unification of specifications for iron and steel scrap, and the

adoption of a standard contract form in conformity to the Standard Invoice

form were adopted at a meeting February 4th of ir^n and steel interests,

purchasing agents, waste material dealers and others.

*****

Simplified Practice is forming an important section of an exhibition

being conducted durirg the next few days by the School of Commerce of Oregon

Agricultural College, Corvallis, Ore. Dean Robbins of the University of

Oregon is making a number of talks throughout the state before organizations

on the subject of Simplified Practice.

*****

The Management Division of the American Society of mechanical Engineers

through its executive committee predicts that the work of the Division of

Simplified Practice will ”make a marked impression on industrial management

during the coming year” because the wastes from <?ver-diversity are beginning

to be appreciated. * * * * *

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- Otcerbein College, Vvesterville , 0-, in its publication ”Tan and Cardinal 0 ia indicating an active interest in Simplified Practice.

* * * * * 'The Maryland State Grange, at its 53 r(i session, adopted resolutions

'’That the Maryland State Grange place itself on record as being heartily

ir accord with the efforts of the 'Waste in Industry Committee' of the Department

of Commerce, 0 and "That it recommend that purchasing organizations and individual

members of the Grange, so far as possible, favor the simplified lines in making

cheir purchases." This is a significant recognition by the farmers as the

largest consumers of American-made goods of the value of organized effort for the

elimination of waste in industry.

* * * * r Editorially, the Shoe and Leather Reporter is calling on shoe manufacturers

to simplify their lasts and patterns, pointing our that the varying styles have

frequently changed sc rapidly that the manufacturers have not been able to pay

for the costs of lasts and patterns. The only way to success, this paper says,

is to keep the policy of volume production. The paper points to the fact that

the retailer would be the gainer by more compact stocks which would also be more

complete, and with conservative investment.

* * * * * The California Manufacturers Association is making a canvass of its members

to find the extent to which they can use Simplified Practice Recommendations, the

extent to which they are using them, and to which they are willirg to use them.

This group is also building up a list of speakers familiar with the subject of

Simplified Practice, to give talks on this subject before other groups. The

California Association, has received a big number of answers favorable to the

supporting campaign. The example is arousing interest among Manufacturers Associations in other states. Boards of Directors of Manufacturers Associations in

Connecticut and Iowa have approved the appointment of committees to cooperate in

their states with the Division of Simplified Practice.

* * * * * Sterling silverware manufacturers and distributors have developed a tentative

plan of Simplified Practice, which they have asked to have presented for action of

a general conference under the Division's auspices early in March. The Manufacturers' association estimates a potential saving of $5(000,000 if the program is

adopter. * * * * * In cooperation with the Division, the Metals Utilization Committee recently

held a conference of manufacturers, distributors and users of steel reinforcing

tars to determine the feasibility of securing a uniform grade or grades to replace

the 57 sets of specifications now used on thiscommodity. A canvass is to he made

to determine the needs of the users.

* * * * * "Standardization of Building materials, especially, has reduced the cost of

home building. It is only one of many progressive steps recently taken to improve

conditions, and opened the way for a still further standardization and reduction

of building costs. In the words of Secretary Hoover, the savings possible * are almost incredible" says the Dayton 0- "Journal" commenting on the creation of

a professorship in heating and plumbing at Carnegie Institute of Technology. The

"Journal" points to the simplification of trass lavatory and sinK traps as a mova which "will bring about better and cheaper sanitation for the home builder."

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MONTHLY hews bulletin

issu'd Yy; Vfi€

E2V1GI$K OF £ji'?L?HFi PRACTICE

Depar&Bcn* ef Ocgsterce

Washinies

March 15, 1926 WAT MERCHANTS YiAIFT TO KM

Luring the year 1525, more than 1C8,0C0 questions were asked of a Merchant’s Service Bureau maintained Vy an Ohio manufacturing organisation

whose products enter into stores of every ijvpe- The questions came from

cicy , village , and even little sross-roads stores, and the sales volume

ranged from $3,600 up to more than $ 36 , 000,000 annually.

Out of the 108,000 inquiries there were 96,529 which accounted for

25 questions most often asKed. Second and fifth in rank of the number of

inquiries were: How tc move slow stock; and how to speed up stock-turn- In

other words, these closely-allied subjects brought one inquiry in every nine

One answer tc these inquiries would have been Simplified Practice11 , the

elimination of ^tco much variety 11

- Before rt too much variety-0 can be eliminated under the cooperative procedure of the Division of Simplified Practice, theie

must have been a survey rf all the facts as to the production and the demand.

These facts, based on sales records, furnish a guide as tc what constitute the

n l:.ve n or acti veiy- demanded items, and as to what are the dominant items,

whxch may be eliminated without detracting from adequate service. Such facts

are compiled by the industry itself, the Division's service being to cffei a

neutral friendly meeting place fer maker, distributer and user to meet anr. decide for themselves what they may eliminate to their mutual benefit.

To the distributor, especially the retailer, this offers an opportunity

to keep his stocks free from slow moving items. It offers an opportunity fer

concentrating sales attention upon "live 0 items, for keeping down investment- ir. stocks, selling costs, end other expenses and for speeding up his turnover.

The retail trade organisations in many cases are helping their membership^

through their part in formulation of and adoption of Simplified Practice Recommendations- Their partnership in this movement works both ways—sell help, as

well as helping the consumers and producers-

* * * * * * * The Flavoring Extract Manufacturers Association of the United ctates, in

a recent convention, adopted the Simplified Practice Reconuaentet io.ns on ncxbcard Thicknesses, and pledged cooperation to the program-

* * * * r * * ion of Building Owners and Managers has printed

iendations covering glass sidewalk and root ligh.s,

The National Associate

Simplified Practice Recommendations covering gJ

erder that its members may be guided in their purchases of these comm. rA ties-

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Several companies manufacturing machine screw products have had re Simplified Practice Recommendations on self-opening die head chasers pun e and circulated to thousands of consumers. Two companies repo-, icd districu ion

of 20,000 copies each of the simplifications.

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One large New YorK firm of consulting engineers is distributing copies of

all Simplified Practice Recommendations to some 2Q of its "key men” in order

that the recommendations may be adopted wherever possible. *

* * * * * * * The American Zinc Institute, Inc. r executive committee has accepted

Simplified Practice Recommendations applying to commodities bought by the

Institute's members. *******

Standardization will be a topic of the International Accountants Congress to

be held in Amsterdam, Holland, July 5 to 9*

*******

Eight radio broadcasting stations in the Central iviississppi district, with

headquarters in St. Louis, include Simplified Practice as a topic in discussions

of commercial subjects. *******

The British boot and shoe trades, through a research association, are seeking to evolve standardized sizes which will fit all shapes of feet. Only

a few American manufacturers have applied simplification in their boot and shoe

nlants. *******

The Norwegian Industrial. Association has adopted paper standards in line

with international standards used in Switzerland, Germany and Austria.

*******

Urbana Junior College, Urbana, 0., is buying Simplified Practice Recommendations for use in classes in elementary business management.

*******

The National Canners Association convention at a recent meeting in Louisville,

Ky. , adopted resolutions approving simplification of containers for canned foods

as holding material economies and savings for factories engaged in making

materials and equipment for canneries; and instructing the board of Directors to

organize committees for the various sections of the Association.

*******

In its new catalog, the Eastern Machine Screw Corporation has included the

Simplified Practice Recommendation on die head chasers as a means of reaching its

customers. The company accepted this recommendation both as a producer and a

consumer of these products. *******

The Buffalo Chapter of Society of Industrial Engineers is making an effort

to determine to what extent firms reuresented in its membership are cooperating

in carrying out Simplified Practice Recommendations; and will seek to have it's

members accept, whether they are producers or users. *******

St. Urban Grange, Lewis County, Washington, has a committee studying

Simplified Practice. Lewis county Pomona Grange is doing likewise. It is

indicated that they will urge their membership to buy simplified lines wherever

obtainable; as Quinalt Grange, of Maplehurst, Washington, has taken this step

after an investigation of the subject. Consumer interest is growing,- a hint

to industry. *******

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Vv eight s of certain Items >ave been defined, and the number of new patterns

of sterling silverware limited to one in two years by a manufacturer as a part

nf a Simplified practice Program adopted early this month. Five million

dollars, it is estimated, will be saved in the cost of dies, raw material,

finished stocks, and in sales expenses for the makers and distributers.

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11 1 get ready and interested response" writes Prof. George H. Fellows of

Carnegie Institute of Technology, whose work in Commercial Engineering stresses

Simplified Practice, to more than 200 students.

* * * * * * jjc The Royal Bank of Canada, with mere than 675 tranches in Canada, the

United States, and several other countries, pays a high tribute, in a recent

bulletin to the industrial cooperation in the United States for Simplification.

P»inting to large gains possible to Canadian industry through simplification, the

Royal Bank quotes Barclay's Bank comments on simplification offering "cumulative benefits", and being a factor in the money situation "which deserves

special mention"

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"Last evening when I went out to buy some electric light bulbs, the

dealer advised me that after a certain time the style I had been using would no longer be procurable; that the makers would concentrate on a very few patterns

and those only, in which I recognized Mr. Hoover's theory of 'Simplified

Practice', writes M< J. Warner, president of the Converters' Association, New

York.

Whether there are preventable wastes in business administration of school

systems--which cost the nation two billion dollars a year —is to be the subject

•f an extensive research by a commission in which the Department of Commerce

and National Education. Association are cooperating.

* * * * * * * Use of bold-faced type in catalogs to denote "recognized sizes" under

Simplified Practice Recommendations has been suggested from several sources as

a guide for buyers of commodities in which there has been simplification,

Up. jjc * afe * jp

State Manufacturers' Associations are giving increasing Cooperation.

Washington, a pioneer in using standard catalog size fer directory of manufacturers' Association membership, is backing the National Standard Invoice Form.

The Oregon Association is issuing its new directory in standard catalog size.

The New Hampshire manufacturers are calling attention in their monthly publication te Simplified Practice. The Rhode Island Association is circularising

its members by letter while the South Dakota Association is urging its members

to buy simplified lines- The Georgia Association held a big meeting March '4th,

with the Chief of the Division as its principal speaker, and with many non- members as guests, giving the movement a big impetus.

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