Evening star., 1927-10-09
Presents Facts.

"The solution Of any problem is de.
layed until the facts are known, Mod.
ern motor truck and bus operation is
seriously burdened with the universal
practice of mixing transportation and
merchandising. They are separate
and individual activities of any bust
ness and should be 50 accepted. As a
matter Of fact, until this separation
is accomplished the problems of opera
tion cannot be correctly cleared up.
THE two functions of business are
relative but not analogous nor prop
erly capable of consolidation. Both
must produce earnings within their
own office. In no other way can they
be precisely controlled. The burdens
and mistakes of one have no right to
be transferred to the results of the
other If the enterprise is to know
what its departments are producing.
The operation of motor trucks and
busses is the employment of specialized
machine tools for the manufacturing
of transportation. Whether the opera
ton he private or contract, every one
who uses these instruments is in the
transportation business. Accordingly,
1t is necessary that the same general
rules which govern all manufa curing
activity he applied to the circum-
stances of this business. To involve
this production OF transportation in
any way is fatal TO its efficiency.
Budget System.
"No method so far devised has
served the purpose of manufacturing
so effectively as the budget system.
The fact of having a target at which
to shoot has done more to relieve
strain and irregularity than any other
agency. In practically every business
enterprise it is used for the control of
all factors except in highway trans
port. Probably the reason lies in the
fact that this transportation has been
considered as an auxiliary rather than
4 factor.
"A clearer picture is obtained of the
entire situation when it is realized
that the controlling element in bust. |
ness is transportation and not mer-
chandise. Commodities are frozen in |
ventory until they move. and this |
turnover is totally dependent on dis |
tribution, of which highway transport |
is an important phase The use of the |
budget system will make this impor- |
tance of highway transport an actu.
ality instead of an emergency re- |
The extreme essentially OF care |
fully checking wastage in time and !
effort in the operation of commercial |
motor vehicles is emphasized by the |
writer. who continues in the follow |
ing vein:
Thine Is the controlling factor in all |
business conditions. 4 mile is the !
only constant in any type of transpor-
tation. The objective, then, in the |
control of truck and bus operation is |
the number of miles which may be |
manufactured in a specified period of |
time. The best way to control such q |
condition is to budget the time and the |
miles and work for the accomplish |
ment OF these budgets. Motor ve- |
hicles have wheels to afford the OPP !
portunity. to move. When the wheels |
an expensive storehouse The prin-
riple is to keep the wheels moving if |
they are to become productive.
Time and Money Control.
"One item in motor vehicle opera.
ton has been neglected. That in the |
exceptional results to be obtained by
constant control of time utility and |
small sums Of money in operation out.
ay. The loss of two minutes per hour
IS seldom considered Of any impor-
ance, yet in 300 work days of 10 hours
'ach this means ~ days of lost time
ltllltN on Il single truck or bus. AS
he fleet multiplies the results are ap.
1alling. Particularly does this become
iramatlc when contemplated in terms
II money. IL the value of the vehicle
o the business is SIS per day, q fleet
II 10 units will create a loss of 50 800
hrough time loss Of only two min
ties per hour during the working
ear.
This time utility loss may occur for
many reasons--loading and unloading.
traffic congestion, driver care
eSSneSs and other causes. The main
hlng Is to recognize and correct it.
his may be done by budgeting the
lme allowance in order that control
nay be always in effect. Starting to
ontrol is the answer. Nothing hap
ems until after it starts; then results
[ the system begin TO appear in the
roflts OF the transportation"