Sunday, July 31, 2016

August First Week - Industrial Engineering Knowledge Revision








In this month's revision plan the focus is on production process improvement which also includes management of processes. If management is responsible for poor productivity, industrial engineers have to propose changes in management methods, practices and tools to improve productivity.

Process Efficiency Improvement

Technology Efficiency Engineering
_______________________

_______________________



First Week

   The Function of Methods Efficiency Engineering
   Approach to Operation Analysis as a Step in Methods Efficiency Engineering

   Scope and Limitations of Methods Efficiency Engineering
    Operation Analysis Sheet

    Using the Operation Analysis Sheet
    Analysis of Purpose of Operation

    Analysis of All Operations of a Process as a Step of Each Operation Analysis
    Analysis of Tolerances and Inspection Standards

    Analysis of Material in Operation Analysis
    Tool Related Operation Analysis

Saturday, July 30, 2016

Operation Analysis Sheet





The entire process commonly known as "operation analysis" consists principally of finding out all known facts that affect a given operation and redesign the operation to give better efficiency.

Importance of Systematic Procedure in Operation Analysis




In making operation analysis, a systematic procedure is to be followed  so that points of cardinal importance are analyzed without giving a miss. The simple question "What is the purpose of the operation?" is very important as it may disclose that the operation can be eliminated or combined with another operation.



Nine Points of Primary Analysis (Maynard). There are nine main points or factors that should be considered in every operation analyzed. These, arranged in order of importance, are as follows :

1. Purpose of operation.

2. Complete survey of all operations performed on part.

3. Inspection requirements.

4. Material.

5. Material handling.

6. Setup and tool equipment.

7. Common possibilities for job improvement.

8. Working conditions.

9. Method.

The suggested sequence has to be followed, but in actual practice, it is seldom possible to complete the analysis of one factor at a time and then leave it for good. Several of the factors, as for example setup and method, are interdependent, and scope for affecting an improvement by modifying an earlier factor may be noticed when analyzing another factor at a later stage. So, the complete analysis of all the factors is over only when the last item method is completely analyzed.

Mental Analysis of Process and Operation 


The analysis which is made by observation alone may be either mental or written. The mental analysis is, of course, the quicker, but it is also the less satisfactory. Because of the quickness with which mental analyses can be made, they are used on jobs where low activity or labor expenditure makes it uneconomical to make an elaborate analysis. A mental analysis is far superior to no analysis at all. Mental analysis is advised to the time study analyst. He has to do it at least briefly before time measurement is begun.

On work of a jobbing nature, the conditions surrounding the class of work as a whole should be analyzed in considerable detail the first time the work is subjected to detailed study. Such factors as material handling and working conditions should be gone into thoroughly, and all improvements that seem advisable should be made at once. Then, when individual jobs are studied, it will not be necessary to analyze repeatedly these factors, which are common to all jobs, and full attention may be directed to those factors which concern only the operation being studied.

Mental analyses if systematically made will produce many good results. Many jobs can be improved relying solely on mental analysis to bring about the results.

The danger in this type of analysis is that some factor will be overlooked or at least be questioned too briefly. It is easy to give an improperly considered answer to a question when the answer need not be committed to writing. The necessity of recording a clear and concise answer on paper insures that the question will receive proper consideration.

When the analysis should be conducted systematically. the analysis sheet described below is used. The general arrangement of this form may profitably be memorized. It can then be followed step by step in making even a brief mental analysis, with the result that when the analysis is completed one can be certain that no step has been overlooked.

The completedf analysis sheets, if accessibly filed, will often prove valuable for future reference, since they show most completely the conditions that existed at the time the study was made. They will also prove valuable at a later date when making reports of accomplishment.

In brief, written analyses offer the same advantages that any other class of written records offers. Hence, it is strongly recommended that written analyses be used wherever methods studies are conducted.

The Operation Analysis Sheet



In order to simplify the work of making written analyses, a form known as the " analysis sheet" has been designed by the Methods Engineering Council. Since its introduction, its use has spread rapidly, In securing the information needed to fill out the form completely, one will be certain to make a complete analysis.

The front of a blank analysis-sheet form is shown by Fig. 40 (Maynard) and the back by Fig. 41. At the top of the form on the front side, space is provided for identifying completely the analysis, the part, and the operation.


Item 1.  The first point considered is the purpose of the operation. If analysis shows that the operation serves a definite purpose, various other means of accomplishing the same result are considered to see if a better way can be found.

Item 2. If operation or flow process charts have not been constructed, all the operations performed on the part are next listed. The purpose of this is to determine just how the operation being analyzed fits in with the other operations that are performed on the part. This study frequently brings to light the fact that the operation being analyzed can be eliminated altogether or that, by combining it with other operations or performing it during the idle period of another operation, the time for doing it can be materially reduced. Again, it is sometimes found that the sequence of operations is not the best possible and that unnecessary work is being performed for this reason. Another common condition which is discovered at this stage of the analysis is that the part is being shipped about among departments more than is necessary. It may be that, instead of sending a part to a distant department to have a simple operation performed upon it, it would be better to move the work station. These possibilities and all others mentioned here will be covered more fully in the chapters devoted to a complete discussion and illustration of each of the nine points of primary analysis.

Item. 3. The inspection requirements of the job must be looked into thoroughly, for the accuracy required has a direct bearing on the methods used to produce the work. The analyst should consider it his duty to investigate them in order to satisfy himself as to their necessity. Occasionally, inspection requirements are hurriedly and incorrectly established, and a subsequent check will bring this to light. Usually, the requirements err in the direction of unnecessary accuracy; for if the requirements are too loose, the part will not function properly in the final assembly and the error will be caught. Occasionally, however, the analyst will find that if the requirements are made more exacting on one operation, a subsequent operation will be made easier to perform.

Item 4. The material of which the part being studied is made is specified by the design engineer and theoretically should not concern the analyst. Design engineers, however, like all other human beings are not infallible and sometimes specify an unnecessarily costly material. It is proper and necessary that the methods engineer should check on cases of this kind and bring them to the attention of the designers.

In other cases, certain materials present shop difficulties that may not be known to the designer. A certain cheap, brittle material may be so difficult to machine that an excessive amount of scrap results. Here investigation might show that it would be less expensive in the end to specify a more costly but more easily machined material.

Item 5. Material handling is a study in itself. That it has received a great deal of attention on the part of management is evidenced by the wide application of conveyers, cranes, trucks, and other mechanical handling devices. Manual handling, however, is encountered frequently, and should be carefully studied where found. Handling problems are as numerous and varied as the parts handled, but they offer a fertile field for savings. In general, the part that is the least handled is the best handled.

Although it is commonly thought that conveyers can be used to advantage only in mass-production work, there are types on the market that are equally successful in jobbing work. Not only do the latter conveyers eliminate material-handling labor, but if they are used in conjunction with a dispatching system they permit far better production control than is usually obtained in miscellaneous, small-quantity work.

Many plants are laid out, if a careful study has not been made, so that a great deal of unnecessary handling is required, particularly if the plant has gone through a period of rapid expansion. Major changes of layout do not usually result from the analysis of a single job, although they may. However, the matter of general layout should be given at least passing consideration under items 2, 5; and 8 of the analysis sheet. As a result of this preliminary work, the analyst will be in a good position to undertake a major layout revision when the occasion arises.

Item 6. The term "setup" is loosely used throughout industry to signify the workplace layout, the adjusted machine tool, or the elemental operations performed to get ready to do the job and to tear down after the job has been done. More exactly, the arrangement of  the material, tools, and supplies that is made preparatory to doing the job may be referred to as the " work-place layout." Any tools, jigs, and fixtures located in a definite position for the purpose of doing a job may be referred to as "being set up'  or as "the setup." The operations that precede and follow the performing of the repetitive elements of the job during which the workplace layout or setup is first made and subsequently cleared away may be called " make-ready" and "put-away" operations. For the sake of clearness, the more exact phraseology will be used throughout this book, although the workplace layout, the setup, and the make-ready and put-away operations are all considered under item 6 on the analysis sheet.

The workplace layout and the setup, or both, are important because they largely determine the method and motions that must be followed to do the job. If the workplace layout is improperly made, longer motions than should be necessary will be required to get materials and supplies. It is not uncommon to find a layout arranged so that it is necessary for the operator to take a step or two every time he needs material, when a slight and entirely practical rearrangement of the workplace layout would make it possible to reach all material, tools, and supplies from one position. Such obviously energy-wasting layouts are encountered frequently where methods studies have not been made and when encountered serve to emphasize the importance of and the necessity for systematic operation Analysis.

The manner in which the make-ready and put-away operations are performed is worthy of study, particularly if manufacturing quantities are small, necessitating frequent changes in layouts and setups. On many jobs involving only a few pieces, the time required for the make-ready and put-away operations is greater than the time required to do the actual work. The importance of studying carefully these nonrepetitive operations is therefore apparent. When it can be arranged, it is often advisable to have certain men perform the make-ready and put-away operations and others do the work. The setup men become skilled at making workplace layouts and setups, just as the other men become skilled at the more repetitive work. In addition, on machine work it is usually possible to supply them with a standard tool kit for use in making setups, thus eliminating many trips to the locker or to the toolroom.


The tool equipment used on any operation is most important, and it is worthy of careful study. Repetitive jobs are usually tooled up efficiently, but there are many opportunities for savings through the use of well-designed tools on small-quantity work which are often overlooked. For example, if a wrench fits a given nut and is strong enough for the work it is to do, usually little further attention is given to it. There are many kinds of wrenches, however. The list includes monkey wrenches, open-end wrenches, self-ad justing wrenches, socket wrenches, ratchet wrenches, and various kinds of power-driven wrenches. The time required to tighten the same nut with each type of wrench is different. The more efficient wrenches cost more, of course, but for each application there is one wrench that can be used with greater over-all economy than any other. Therefore, it pays to study wrench equipment in all classes of work. The same remarks apply to other small tools.

Jigs, fixtures, and other holding devices too often are designed without thought of the motions that will be required to operate them. Unless a job is very active, it may not pay to redesign an inefficient device, but the factors that cause it to be inefficient may be brought to the attention of the tool designer so that future designs will be improved.

Item 7. There are a number of changes that can be made to workplace layouts, setups, and methods which are brought to light by job analysis. Of these, there are 10 that are encountered frequently, and 1 or more may be made on nearly every job studied.

1. Install gravity delivery chutes.

2. Use drop delivery.

3. Compare methods if more than one operator is working on
same job.

4. Provide correct chair for operator.

5. Improve jigs or fixtures by providing ejectors, quick-acting
clamps, etc.

6. Use foot-operated mechanisms.

7. Arrange for two-handed operation.

8. Arrange tools or parts within normal working area.

9. Change layout to eliminate backtracking and to permit coupling of machines.

10. Utilize all improvements developed for other jobs.

These improvements are comparatively easy to make. If the analyst is observant and on the alert for inefficient operating practices, the possibility of applying them can be recognized without resorting to detailed motion or time study. Specific applications of each point will be discussed later.

Item 8. Working conditions have an important influence on production. This has been widely recognized during recent years, and the more modern plants usually provide working conditions that the methods engineer considers to be suitable. In the older plants, or in modern plants where methods studies have not been made, poor working conditions are frequently encountered. In most cases, it is best to correct them. It is sometimes difficult to justify the cost of making such improvements by direct labor savings, but there are other factors that must be considered in this connection. The human element cannot be neglected. Conditions that are unhealthy, uncomfortable, or hazardous breed dissatisfaction. Besides lowering production, they increase labor turnover and accidents and often lead to labor unrest.

There are certain other factors that are worthy of at least passing consideration during analysis, and the most important of these are listed as "other conditions" under item 8. The design of the part, of course, plays an important role in the methods that must be used to produce it. In the majority of cases, the design is fixed by the engineering, functional, or appearance requirements of the product, but occasionally a part is encountered that can be redesigned to make its production easier without in any way affecting its ultimate purpose. In addition to this, certain minor features of design can sometimes be suggested that will help to fit the product to the limitations of the tools which are to produce it.

Item 9. The analysis of the method followed in performing the operation is the most important part of the study. The consideration of the method is seldom, if ever, complete at the time the analysis sheet is filled in but goes on in one form or another during the remainder of the time the job is studied.

The method that is established after analysis and motion study is recorded under 9 in order that the analysis sheet may provide a complete record of the job, although, strictly speaking, this information does not belong under the head of analysis.

Usually the analysis of the method requires the drawing of one or more types of process chart, and often a number of computations are involved. This information should be gathered together in the form of a supplementary report and identified by a note on the analysis sheet.

The foregoing gives a general description of the items on the analysis sheet. Specific methods of approaching the analysis of each item, illustrated by examples are given in the chapters related to each factor.



Source: Operation Analysis by Maynard


Full Knol Book - Method Study: Methods Efficiency Engineering - Knol Book


For more information on recent development in material handling visit
Material Handling Solutions and Equipment - Information Board

Updated 1 August 2016,  28 February 2014

Wednesday, July 27, 2016

Design for Manufacturing



Design for Manufacturing

1. Estimate the Manufacturing Costs
2. Reduce the Cost of Components
3. Reduce the Cost of Assembly
4. Reduce the Costs of Supporting Production
5. Consider the Impact of DFM Decisions on other Factors

Designing Products for Manufacture and Assembly (DFMA)

Product design has to ensure that manufacturing and assembly feasibility and cost are appropriately considered in the design process.

Reducing the number of parts is an important concern of DFMA. For this purpose for each separate part, the following questions are to be answered by the designer.

1. Does the part move relative to all other parts?
2. Must the part be made of different material?
3. Must the part be separate from all other parts to allow the disassembly of the product for adjustment or maintenance?


DFM Guideline
A1) Understand manufacturing problems/issues of current/past products
A3) Eliminate overconstraints to minimize tolerance demands.

P1) Adhere to specific process design guidelines.
P2) Avoid right/left hand parts.
P3) Design parts with symmetry.
P4) If part symmetry is not possible, make parts very asymmetrical.
P5) Design for fixturing.
P6) Minimize tooling complexity by concurrently designing tooling.
P8) Specify optimal tolerances for a Robust Design.
P9) Specify quality parts from reliable sources.
P10) Minimize Setups.
P11) Minimize Cutting Tools.
P12) Understand tolerance step functions and specify tolerances wisely.





Design for Manufacturability: How to Use Concurrent Engineering to Rapidly Develop Low-Cost, High-Quality Products for Lean Production - David M. Anderson - Book Information
http://nraoiekc.blogspot.com/2014/03/design-for-manufacturability-how-to-use.html

Recent Linkedin Article
26 July 2016
What is Design for Manufacturing or Design for Assembly
https://www.linkedin.com/pulse/what-design-manufacturing-dfm-assembly-dfa-declan-scullion


Updated 30 July 2016,  27 June 2016

You Can Reduce Fuel Costs - Ideas For Fuel Cost Reduction



Fleetmatics Helps in Fuel Cost Reduction



REDUCING FUEL COSTS WITH GPS TRACKING

Companies that have multiple vehicles that rely on gasoline or diesel fuel to service their customers have an entire staff of drivers, and a responsibility to see that those drivers are making the most efficient use of their vehicles, time and fuel. Without close supervision and sophisticated monitoring systems to control these factors, they are in danger of losing profits due to these unmanaged costs.

You can download a White Paper Containing:

How GPS Tracking can Impact Fuel Costs
3rd Party Research & Case Studies on fuel cost reduction
https://www.fleetmatics.com/resources/white-papers/reduce-fuel-costs

Monday, July 25, 2016

August - Industrial Engineering Knowledge Revision Plan





In this month's revision plan the focus is on production process improvement which also includes management of processes. If management is responsible for poor productivity, industrial engineers have to propose changes in management methods, practices and tools to improve productivity.

Process Efficiency Improvement

First Week

1. The Function of Methods Efficiency Engineering
2. Approach to Operation Analysis as a Step in Methods Efficiency Engineering

3. Scope and Limitations of Methods Efficiency Engineering
    Operation Analysis Sheet

    Using the Operation Analysis Sheet
    Analysis of Purpose of Operation

    Analysis of All Operations of a Process as a Step of Each Operation Analysis
    Analysis of Tolerances and Inspection Standards

    Analysis of Material in Operation Analysis
    Tool Related Operation Analysis


Second Week

    Material Handling Analysis in Operations
    Operation Analysis of Setups

    Operation Analysis - Man and Machine Activity Charts
    Operation Analysis - Plant Layout Analysis

    Operation Analysis - Analysis of Working Conditions and Method
    Operation Analysis - Common Possibilities for Operation Improvement

    Operation Analysis - Check List
    Method Study

   Principles of Methods Efficiency Engineering
   Method Study - Information Collection and Recording - Chapter Contents


Third Week

Process Analysis - Questions/Check List
Installing Proposed Methods

Eliminate, Combine, Rearrange, Simplify - ECRS Method - Barnes
Inspection Methods Efficiency Engineering

Systems Installation - Installing Proposed Methods
Plant Layout Analysis

Industrial Engineering of Flow Production Lines - Thought Before Taiichi Ohno and Shigeo Shingo
Manufacturing System Losses Idenfied in TPM Literature

Fourth Week

Industrial Engineering - Foundation of Toyota Production System
Toyota Production System Industrial Engineering - Shigeo Shingo

Introducing and Implementing the Toyota Production System - Shiego Shingo

















One Year Industrial Engineering Knowledge Revision Plan

January - February - March - April - May - June

July - August - September - October - November - December




Updated 28 July 2016, 19 April 2015
17 July 2014


Thursday, July 21, 2016

Target Costing and Industrial Engineering

Target costing is cost estimation and reduction methodology to achieve a target cost set in relation to the target price set by the company as an objective.

Industrial engineering tools were used by the Toyota managers in target costing exercises. Taiichi Ohno specifically mentioned the role of Industrial Engineering in improving the profitability of Toyota Motors by reducing costs.


Methods efficiency engineering and the related operation analysis examine proposed manufacturing processes and eliminate wastes or inefficiencies.

Motion economy principles based design provides for the best motion pattern that minimizes human effort.

Layout efficiency improvement takes care of layout related issues.

Value engineering takes a product and component design analysis approach to reduce costs.

Operations research optimizes various parameters subject to the given constraints.


Implementing Target Costing - IMA Note
http://www.imanet.org/docs/default-source/thought_leadership/management_control_systems/implementing_target_costing.pdf


Current Status and Challenges of Target Costing in Japanese Major Corporations
2006 Article
Masayasu Tanaka,Masao Okuhara, Masao Ariga
http://www.value-eng.org/knowledge_bank/attachments/200631.pdf


Updated  23 July 2016, 28 November 2013

Friday, July 15, 2016

Industrial Engineering - The Concept - Developed by Going in 1911


What is industrial engineering?

Industrial engineering is the applied science of management. It directs the efficient conduct of manufacturing, construction, transportation, or even commercial enterprises of any undertaking, indeed, in which human labor is directed to accomplishing any kind of work.

It is of very recent origin. It is only just emerging from the formative period. Its elements have been proposed during the past one or two decades. The conditions that have brought into being this new applied science, this new branch of engineering, grew out of the rise and enormous expansion of the manufacturing system.

Industrial engineering has drawn upon mechanical engineering, upon economics, sociology, psychology, philosophy, accountancy, to fuse from these older sciences a distinct body of science of its own. It provides guidelines or direction to the work of operatives, using the equipment provided by the engineer, machinery builder, and architect.

The cycle of operations which the industrial engineer directs starts with money which is converted into raw materials and labor; raw materials and labor are converted into finished product or services of some kind; finished product, or service, is converted back into money. The difference between the first money and the last money is (in a very broad sense) the gross profit of the operation. The starting level (that is, the cost of raw materials and labor) and the final level (the price obtainable for finished product) these two levels are generally fixed by competition and market conditions. Profit of the operating cycle varies with the volume passing from level, to level. Higher volumes lead to greater profits. But with the efficiency of the conversions between these levels also determines the profits. In the case of a hydroelectric power-plant, there are conversion losses like  hydraulic, mechanical  and electrical. In industrial enterprises the conversion losses are in commercial, manufacturing, administrative and human operations. It is with the efficiency of these latter conversions that industrial engineering is concerned.

The central purpose of  industrial engineer  is efficient and economical production. He is concerned not only with the direction of the great sources of power in nature, but with the direction of these forces as exerted by machinery, working upon materials, and operated by men. It is the inclusion of the economic and the human elements especially that differentiates industrial engineering from the older established branches of the profession. To put it in another way : The work of the industrial engineer not only covers technical counsel and superintendence of the technical elements of large enterprises, but extends also over the management of men and the definition and direction of policies in fields that the financial or commercial man has always  considered exclusively his own.

-----------------------------------------------

Basic Principles of Industrial Engineering

developed by Dr. K.V.S.S. Narayana Rao in 2016

1. Develop science for each element of a man - machine system's work related to efficiency and productivity.
2. Engineer methods, processes and operations to use the laws related to the work of machines, man, materials and other resources.
3. Select or assign workmen based on predefined aptitudes for various types of man - machine work.
4. Train workmen, supervisors, and engineers in the new methods, install various modifications related to the machines that include productivity improvement devices and ensure that the expected productivity is realized.
5. Incorporate suggestions of operators, supervisors and engineers in the methods redesign on a continuous basis.
6. Plan and manage productivity at system level.
(The principles were developed on 4 June 2016 (During Birthday break of 2016 - 30 June 2016 to 7 July 2016).

The principles were developed by Narayana Rao based on principles of scientific management by F.W. Taylor)

-----------------------------------------------

Going's Concept Continued.

Two Phases of Industrial Engineering

In general, the work of the industrial engineer, or, to use a yet more inclusive term which is coming into general use, the efficiency engineer, has two phases. The first of these is analytical  we might almost call it passive to distinguish it from the second phase, which is synthetic, creative, and most emphatically active.

The analytical phase


The analytical phase of industrial or efficiency engineering deals merely with the things that already exist. It examines into facts and conditions, dissects them, analyzes them, weighs them, and shows them in a form that increases our useful working knowledge of the industry with which we have to deal. To this province of industrial engineering belong the collection and tabulation of statistics about a business, the accurate determination and analysis of costs, and the comparison of these costs with established standards so as to determine whether or not they are normal. To this sort of work Harrington Emerson applies the term “assays," speaking of labor assays, expense assays, etc., and maintaining (with good reason) that the expert efficiency engineer can make determinations of this  sort as accurately, and compare them with standards as intelligently, as an assayer can separate and weigh the metal in an ore. To this province belong also such matters as systematic inquiry into the means and methods used for receiving, handling, and issuing materials, routing and transporting these materials in process of manufacture, the general arrangement of the plant, and the effect of this arrangement upon economy of operation. To this province belongs, also, the reduction of these data and other data to graphic form as well as summary measures, by which their influence and bearing upon total result are often made surprisingly and effectively manifest.

The purpose of the analytical function of industrial engineering is that the out helps to  visualize the operations of the business and enable IEs to pick out the weak spots and the bad spots so that the right remedies can be applied where they are needed. They make us apprehend the presence and the relative importance of elements which would otherwise remain lost in the mass, undetected by our unaided senses.

The active, creative and synthetic phase


The second phase of industrial engineering the active, creative and synthetic phase, goes on from this point and effects improvements in existing methods, devises new methods and processes, introduces economies, develops new ideas. It makes us do the things we are doing now more economically or shows us how to do a new thing that is better than the old. To this part of works management belongs, for example, the re-arrangement of manufacturing plants, of departments, or of operations so as to simplify the process of manufacture; the correction of inefficiencies, whether of power, transmission, equipment or labor; the invention and application of new policies in management which make the ideals and purposes of the head operate more directly upon the conduct of the hands; the devising of new wage systems by which, for example, stimulus of individual reward proportioned to output makes the individual employee more productive.

Importance of Technincal Knowledge

The exercise of these functions, whether analytical or creative, by the industrial engineer or the efficiency engineer, requires that he shall have technical knowledge and scientific training, but in somewhat different form from the equipment of the mechanical engineer and somewhat differently exercised.

Machinery, Materials, Methods and Men

Industrial engineering deals with machinery; but not so much with its design, construction, or abstract economy, which are strictly mechanical considerations, as with selection, arrangement, installation, operation and maintenance, and the influence which each of these points or all of them together may exert upon the total cost of the product which that machinery turns out.

It deals with materials, but not so much with their mechanical and physical constants, which are strictly technical considerations, as with their proper selection, their standardization, their custody, transportation, and manipulation.

It deals very largely with methods ; but the methods with which it is particularly concerned are methods of performing work; methods of securing high efficiency in the output of machinery and of men; methods of handling materials, and establishing the exact connection between each unit handled and the cost of handling; methods of keeping track of work  in progress and visualizing the result so that the manager of the works may have a controlling view of everything that is going on; methods of recording times and costs so that the efficiency of the performance may be compared with known standards; methods of detecting causes of low efficiency or poor economy and applying the necessary  remedies.

It deals with management that is, with the executive and administrative direction of the whole dynamic organization, including machinery, equipment and men.

It deals with men themselves and with the influences which stimulate their ambition, enlist their co-operation and insure their most effective work.

It deals with markets, with the economic principles or laws affecting them and the mode of creating, enlarging, or controlling them.

The most important elements of industrial engineering are summed up in this alliterative list machinery, materials, methods, management, men and markets. And these six elements are interpreted and construed by the aid of another factor whose name also begins with  Money. Money supplies the gauge and the limit by which the other factors are all measured and adjusted.

Return on Expenditure

It is the ever-present duty of the industrial engineer, of the efficiency engineer, to study constantly, and to study constantly harder and harder, so long as the smallest opportunity remains for getting more in return for what he spends, or for spending less in payment for what he gets. The function of the industrial engineer is to determine with the utmost possible wisdom and insight whether and where any disproportion (waste) between expenditure and return exists, to find the amount of the disproportion, the causes of such disproportion, and to apply effective remedies.

Competition and Efficiency and Cost Reduction

Competition forces manufacturers to reduce costs. But  the effort toward efficiency being promoted by industrial engineering and industrial engineers is giving to rise to more competition and to more cost reduction.

Competition took on a new meaning and new activity when the things began to be made first and sold after (as they are under the new mass manufacturing systems) instead of being sold first and made afterward, as they were under the older order. When you sell things already made, like lathes or high-speed engines or dynamos, off the sales-room floor, the prospective buyer can make the most absolute and intimate comparison between the things and their prices. He can compare accurately design, quality, cost before a word or a dollar passes. The necessity for offering the best goods for the least money and yet making a fair profit becomes vital and insistent, and so the knowledge of actual costs and the ability to reduce costs become fundamental.

The new and ethically fine ideal, promoted by industrial engineering is efficiency,  the reduction of costs and the elimination of waste for the primary purpose of doing the thing as well as it can be done, and the distribution of the increased profits thus secured among producer, consumer, and employee.

Efficiency is a concept as much finer than competition as creation, conservation, is finer than warfare. It is a philosophy an interpretation of the relations of things that may be applied not only to industry but to all life. An interesting quote by Harrington Emerson's in “Efficiency as a Basis for Operation and Wages "  is quiet apt here.  “If we could eliminate all the wastes due to evil, all men would be good; if we could eliminate all the wastes due to ignorance, all men would have the benefit of supreme wisdom; if we could eliminate all the wastes due to laziness and misdirected efforts, all men would be reasonably and health-fully industrious. It is not impossible that through efficiency standards, with efficiency rewards and penalties, we could in the course of a few generations crowd off the sphere the inefficient and develop the efficient, thus producing a nation of men good, wise and industrious, thus giving to God what is His, to Caesar what is his, and to the individual what is his. The attainable standard becomes very high, the attainment itself becomes very high. . . .  Efficiency is to be attained not by individual striving, but solely by establishing, from all the accumulated and available wisdom of the world, staff-knowledge standards for each act by carrying staff standards into effect through directing line organization, through rewards for individual excellence; persuading the individual to accept staff standards, to accept line direction and control, and under this double guidance to do his own uttermost best."

Importance of Technical, Economic and Human Skills for Industrial Progress

Efficiency, then, and in consequence industrial engineering, which is the prosecution of efficiency in manufacturing, involves much more than mere technical considerations or technical knowledge. The point is very important, because true and stable industrial progress, whether for the individual, the manufacturing plant or corporation, or the nation at large, depends upon a wise co-ordination and balance between technical, commercial, and human considerations. Every great industrial organization and every great step in industrial progress to-day includes all three elements, but they will perhaps appear more distinct if we look at the origin and source of the manufacturing system, out of which this new science of industry has sprung. The origin of the manufacturing system was clearly enough the introduction of a group of inventions that came in close sequence about the end of the eighteenth century and be- ginning of the nineteenth. These were the steam engine, mechanical spinning and weaving machinery, the steamboat, the locomotive, and the machine-tool.

But the readiness of people to buy the products and services that these inventions could offer was due to economic or commercial conditions, not merely to the technical invention. In its larger relations, then, technical success depends upon commercial opportunity. There must be a potential market for the success of a technical invention for any entrepreneur to commercialize it. But it does not follow from this that technical progress is wholly subordinate to economic conditions. The inventor or the engineer is not of necessity merely a follower of progress in commerce or industry. Many of the great advances in  branches of industrial achievement have been made by man who foresaw not only technical possibilities but commercial possibilities and who undertook not only to perfect the invention but to show the world the advantage of using it. I think this was substantially the case with wireless telegraphy, with the cash register and typewriter. No body had demanded these things because nobody had thought of them, and the productive act in each instance included not only technical insight into the possibilities of doing the thing, but human insight into the fact that people would appreciate these things and use them if they could be furnished at or below a certain cost. Modern industrial methods have shown us that in many cases there is no such thing as a fixed demand beyond which supply can not be absorbed, but that demand is a function of cost of production. The economic theory also states the same thing. There may be no demand at all for an article costing a dollar, but an almost unlimited demand for the same article if it can be sold at five cents. A large part of the work of the production engineer lies in the creation of methods by which the cost of production is decreased and the volume of production is thereby increased, with advantages to both the producer and the consumer.

The third factor in industrial progress is the psychological factor,  the element contributed by the mental attitude, emotions, or passions of men. I might suggest its possible importance by reminding you that there were centuries in which the inventor of the steam engine, far from being rewarded, would have been burned at the stake as a magician. This would not have been because the extraordinary character of the achievement was unrecognized, but because its nature was misinterpreted.

For any technical proof , you must add to it, second, proof of the commercial or economic argument, and third, that psychological force which convinces not the reason, but the emotions. In all industrial engineering, which involves dealing with men, this psychological or human element is of immense, even controlling importance. The principles of the science are absolute, scientific, eternal. But methods, when we are dealing with men, must recognize the personal equation (which is psychologic) or failure will follow.

To the technical man, it is an ever-present duty to keep in view absolute ideal of  technical progress, to seek every chance for its advancement, and to mould conditions and men so as to obtain constantly nearer approach to these ideals; but in doing this he must never forget to attach full weight to economic conditions, and he must never allow himself to ignore human nature.

Success in handling men and women is one of the most important parts of the work of the industrial engineer, and it is founded on knowledge of human nature, which is psychology. Industrial engineers need to have technical skills, economic skills to understand the economic environment and economic justification for technical systems and understanding of behavioural science of men and women to make a success of his profession or career.


Footnote
1. A systematic presentation of the field of industrial engineering from an entirely different point of view and by a very different method will be found in " Factory Organization and Administration," by Prof. Hugo Diemer; McGraw-Hill Book Co.
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Exploring Engineering - Book Information



https://books.google.co.in/books?id=A96oBAAAQBAJ


Exploring Engineering: An Introduction to Engineering and Design

Philip Kosky, Robert T. Balmer, William D. Keat, George Wise
Academic Press, 11-Jun-2015 - Technology & Engineering - 552 pages


Exploring Engineering, Fourth Edition: An Introduction to Engineering and Design presents the emerging challenges engineers face in a wide range of areas as they work to help improve our quality of life. In this classic textbook, the authors explain what engineers actually do, from the fundamental principles that form the basis of their work to the application of that knowledge within a structured design process. The text itself is organized into three parts: Lead-On, Minds-On, Hands-On. This organization allows the authors to give a basic introduction to engineering methods, then show the application of these principles and methods, and finally present a design challenge. This book is an ideal introduction for anyone interested in exploring the various fields of engineering and learning how engineers work to solve problems.

Organization of Industrial Engineering Department - Suggestion by Hugo Diemer in 1912


HUGO DIEMER, M.E., Professor of Industrial Engineering, Pennsylvania State College, and Consulting Industrial Engineer.

Hugo Diemer was the first faculty member of Industrial Engineering and he developed the first undergraduate programme in industrial engineering in Pennsylvania State College.

In the following article he explained the development of staff assistance to manufacturing department.

Factory Organization in Relation to Industrial Education
Author(s): Hugo Diemer
Source: The Annals of the American Academy of Political and Social Science, Vol. 44, TheOutlook for Industrial Peace (Nov., 1912), pp. 130-140
Published by: Sage Publications, Inc. in association with the American Academy ofPolitical and Social Science


Type of Staff Organization to be Applied to Manufacturing Side of Industries.



Mr. Harrington Emerson suggested staff control to cover four groups: 1, men; 2, materials; 3, equipment; 4, methods and conditions.

Mr. Frederick Taylor advocated  shop control to be handled by four types of executive functional heads whom he designates as 1, "gang boss;" 2, "speed boss;" 3, "inspector," and 4, "repair boss."

Diemer proposed staff departments for  1. records; 2. materials; 3. plant, equipment and processes; 4. men.

Work of  functional staff departments 


Department of Records.

It is primarily a research and advisory department the results of whose investigations and whose recommendations are brought up at such meetings of department heads and others as may have been predetermined. It is the duty of the record department to see that from each set of records is secured a method of most effective analysis so that the records of the past may be compared with records of the present and conclusions may be drawn as to future action. The individuals engaged in this department must be experts in theory of accounts, the science of statistics, the art of graphical presentation and cost accounting. The tendencies and facts indicated by an analysis of the records must be brought forcibly to the attention of all individuals whose actions based on experience and intuition differ from the action indicated by an analysis of figures, records and statistics.


Department of Materials.
This department assesses relation between materials indicated by the technology (designs) and the availability of various materials in the market, with constant attention to cost reduction as well as the bettering of product.

Department of Plant, Equipment and Processes.

This department is concerned with: 1., routing; 2. scheduling; 3. motion and time studies; 4. preparation of instruction sheets and cards; 5, standardization of equipment. In all of these matters the work of the staff department ends with the adoption of the method.

The routine work is carried on by men adapted to carry out routine work successfully that is line management and operating employees. For instance, the routine work of the planning or production department, is not a staff department activity.

1.Routing.-This involves a study of the processes and product and the preparation of process maps for the various classes of product and determination of most predominant paths, together with floor spaces, weights, bulks, etc., involved, and recommendations as to rearrangements of equipment, and departments and proposals as to building modifications and extensions. It consists further in the designation of which department, machine and class of individuals are to perform the operations indicated by the instructions and the recording of such assignments in such a way that the scheduling department can, in consultation with the department of records, prepare means for enabling the planning or production department to have positive definite information as to the work ahead for each individual, machine and department.

2. Scheduling.-This consists of the determination of the manner in which all orders which are to be worked on by the various departments of the establishment are to be listed so as to determine their sequence and the methods of preparing a definite program in order that the shop may be provided by the production department with a daily schedule covering the sequence of all work for the day.

3. Motion and Time Studies.-Motion study consists of the analysis of each process into its ultimate simplest steps, and the elimination of useless or improper motions. This process is prerequisite to and more difficult than time study, which consists in the timing with a stop watch all the elements indicated by the motion study. Based on motion studies, detailed instructions are to be prepared which are to be the standard practice and are not to be departed from. Proposals for different steps or methods from the standard are to be encouraged and duly rewarded if they result in improvements. The instruction sheets are to be furnished to the production or planning department by the staff department on plant, equipment and processes in just the same manner that the designing department furnishes the detailed shop working drawings for the designed product.

4. Standardization of Equipment.-This covers all items other than those involving motion and time studies, such as tools, appliances and fixtures.

5. Department of Men.-This staff department will consider: i). hygiene and efficiency; ii). psychology and efficiency; iii). industrial education and efficiency; iv).  development of loyalty, through social and religious activities.

Hygiene and Efficiency.-This section will deal with hygiene aspects like adequate provisions for pure and abundant drinking water, proper sanitary and toilet arrangements, first aid to the injured, eye-strain due to poor light, poorly directed light, glare, lassitude due to impure air or too dry air, discomfort due to temperature being too hot or too cold, together with installation of proper remedies and maintenance of proper conditions.

Psychology and Efficiency.- Careful researches must be made as to the presence of avoidable fatigue due to such factors as monotony of occupation, long maintenance of a single position, constant repeti- tion of certain movements, lack of conversation, studies of temperaments of eligible candidates for promotion so as to give due consideration to these characteristics of future gang leaders, assistant foremen, foremen and other officials.   Sympathy and discipline have to be simultaneously displayed by leaders of people.


Industrial Education.-This department provides for training of apprentices, and provides  means for each individual, so far as possible, for attaining greater efficiency. There must be systematic selection of each individual for his work and he must be given planned systematic training for further development.  This department also takes care of shop library or libraries.

Development of Loyalty Through Social and Religious Activities.- Systematic and continuous efforts must be made to make each individual's work inspiring and to get each man interested in his work. The system of promotion must be such as to afford numerous examples whereby ambition may be preserved.  Activities in the interests of good fellowship and social democracy will tend toward fair play for all and the avoidance of sharp practices in the dealings of employees with each other.


It is interesting to note this function indicated by Diemer.
4. Standardization of Equipment.-This covers all items other than those involving motion and time studies, such as tools, appliances and fixtures.

Industrial engineering has not developed adequately this aspect of industrial engineering.


Department of Materials.
This department assesses relation between materials indicated by the technology (designs) and the availability of various materials in the market, with constant attention to cost reduction as well as the bettering of product.

Department of materials is also an interesting idea that was later developed into value engineering by L.D. Miles.






Wednesday, July 13, 2016

The Twelve Principles of Efficiency - Part 2

1. Clearly defined ideals.
2. Common sense
3. Competent counsel
4. Discipline
5. The fair deal
6. Reliable, immediate and adequate records
(Principles 1 to 6 covered in Part 1)

7. Despatching
8. Standards and schedules
9. Standardized conditions
10. Standardized operations
11. Written standard-practice instructions
12. Efficiency-reward



THE SEVENTH PRINCIPLE: DESPATCHING


Despatching is used to denote shop planning by Harrington Emerson. Efficiency of the shop can be improved by shop planning by increasing on time deliveries and also reducing idle time of the equipment.

Emerson described a locomotives repair shop wherein he introduced despatching system. The first plan was to despatch the repairs as a whole, locomotives to be returned to service in 12 days, 18 days, 24 days, according to the class of repair. The second plan, worked in with this, was to despatch each separate item of work and to pick out those items which, taken at the proper time, in the proper
order, and in the proper sequence, would result in completing a locomotive in the shortest time.

Marine-repair despatching was found to be superior over locomotive-repair despatching. A big vessel will be put in a dry dock, at $5,000 a day charge perhaps, and be completely scraped, repainted, new propeller and rudder fitted, new plates inserted, in perhaps three days. Complete circulating pumps, from drawing to installation, will be completed in three days. Emerson reasons that, it is hard to defend a longer time than 72 hours for most locomotive repairs.

It is also interesting to note that in the sister branch of railroad maintenance, namely, track
repairs, stupendous tasks of snow and landslide removals, bridge rebuilding, etc., are commonly
accomplished in hours rather than in days or weeks.


A new plan was gradually substituted for the old plan. In the railroad shop major schedules
were worked out and put into effect by despatching; minor and subsidiary schedules were made out for each job, each man, and each machine, the lesser jobs fitting like parts of a puzzle into the larger schedules, and on the basis of schedules, however often they were changed, men, machines and jobs were despatched. All work, instead of passing directly from foreman to worker or to gang, passed through our despatch board. Practice was perfectly elastic, but procedure was not. Schedules could be changed on a moment's notice and also the sequence of despatching, but not the fact of despatching. The particular shape and size and location of despatch board is unimportant, the essential being that it is suited to the work. Whether the despatch board is covered with parti-colored strings, or made up of hooks, clips, or pockets to receive cards, is also unimportant in principle, but not in practice, since a method under which many of your despatching cards blow out of the window soon becomes inoperative.



The name despatching was adopted from train despatching, and train operation organization was adapted. The foreman corresponded to the engineer, a new official was created corresponding to the despatcher, a messenger and telephone service kept the despatcher's office in touch with the work. Despatching records, however, were adapted from bank practice. The receiving teller takes in money,
he enters the amount in the depositor's time book, he credits the bank's cash book with the amount received, but he also credits the ledger account of the depositor. When the depositor draws a check it is presented to the paying teller who hands out the cash, charges the cash account, charges the depositor's account. At the end of any day the total cash in hand must correspond with the sum of the balances in all the accounts. Similarly the despatching board, like the cash book, is filled with prospective work. As fast as any item is performed it is charged to the order. The operator is charged
with the pay he draws and credited with the work he performs.

There must be at the day's or week's or month's end a perfect balance between all work credited to operators and charged to orders, also a perfect balance between wages and other accounts charged and totals credited to work in progress and delivered since last balance. The records are immediate, absolutely accurate, and wholly adequate.

In practice it has proved more important to despatch unstandardized work than to standardize undespatched work, even as on railroads it is more important to despatch trains even if
there is no adherence to schedule than it is to run trains on time without despatching.

Despatching, like other principles, is a subdivision of the science of management, a part of planning; but while visible to the eye as a distinct pattern, it ought, like inlaid work, to be intactile. If we are well nothing is more beautifully despatched than the food we eat, from plate to building up of depleted hidden tissue. We are conscious only of the pleasure of the first taste, not conscious of the admirably regular way by which each molecule is ultimately despatched to its destination.


THE EIGHTH PRINCIPLE: STANDARDS AND SCHEDULES - Harrington Emerson

Standards and Schedules ! These are of two kinds, the physical and chemical standards discovered and established in the last century, standards and schedules as exact as mathematics, and those other schedules resting on standards whose upper limit we do not yet know.

All around us, everywhere nature has been showing us that increased result comes from lessened effort, not from greater effort, but we have been too stupid to understand.

This law of the reduction of effort for greater results crops up in the most unexpected places, so that engineers have evolved the definite critical speed, the speed of maximum result for relatively least expenditure.

To establish rational work standards for men requires indeed motion and time studies of all operations, but it requires in addition all the skill of the planning manager, all the skill of the physician, of the humanitarian, of the physiologist, of the psychologist ; it requires infinite knowledge, directed, guided and restrained by hope, faith and compassion.

The promise already partly fulfilled and clearly held out as to the future is that greater and greater results shall follow constantly diminishing effort.

THE NINTH PRINCIPLE: STANDARDIZED CONDITIONS

Standardizing is used as planning the conditions by Emerson.

There are two distinct methods of standardizing conditions — to standardize ourselves so as to command the unalterable extraneous facts, earth, water, air, gravity, wave vibrations; to standardize the outside facts so that our personality becomes the pivot on which all else turns.

The easiest way for any individual to live his own life in fullest measure is either to standardize himself to suit the environment or to standardize the environment to suit himself.

Roads were built that a barefooted multitude might travel in slow comfort. Ater a standardized path had been created, a bright mind evolved the idea that a revolving wheel would be more adapted to the road than alternating footsteps, so we had the roller, the cart, the wheelbarrow, and at last the bicycle
was perfected.  In the bicycle man still used the alternating swing of the legs, but he propelled himself nearly seven times as fast, so that one travelled 323 miles in 16 hours and 45 minutes, at the rate of 19.8 miles an hour.

But why should a man use his own efforts ?  He had already used steam to propel locomotives on their more minutely standardized road, so he finally attached an explosive reciprocating engine to his road vehicle, an engine capable of making 1,200 strokes a minute for each of four, eight, fourteen, cylinders, as compared to the 140 strokes of each of two legs ; an engine capable of kicking 100 pounds per square inch for as many inches as the piston surface has area, as against the man's total power of push of less than 200 pounds. So that in his cushioned seat, with mere pressure of hand or foot, Gabriel, in the race from Paris to Madrid, made Bordeaux in 5 hours 13 minutes, or at the rate of 62.5 miles an hour.


The principles under which the methods and practices of efficiency are grouped have been
compared to the skeleton framework of a dome. The ribs of the dome are the principles, but
the first layer can be started with one part of each rib in place, and with filling of various de-
vices to complete the circle. As layers are added the ribs rise until they come closer together and
at last coalesce. Some ribs may be carried to the top, others may stop part way up, their
burden carried by others. In this series of essays each of the earlier ribs has been separately carried to the top, so that now there is less space for the later principles, much of their duty having been transferred to the principles already in place. To maintain reliable, immediate and adequate records we must have standardized conditions; to put in schedules we must have standardized conditions; so the standardizing of conditions should precede schedules. But unless we have already adopted
ideal schedules, how do we know what conditions, and the extent to which they must be standardized? Also, unless we have ideals as to standards, how can we create a high schedule?

It is perhaps because schedules (plans) and conditions (you can say organization of resources) react so on each other that progress is so disappointingly slow. We make a mean little schedule and meanly standardize conditions to suit.

Records are again broken by effort, far less at its maximum than on the old schedule, but
nevertheless discountenanced by the conservatives, until conditions are again restandardized
and effort is still further diminished. Who has the harder time, the runner who precedes the
cavalcade of an Oriental magnate, or the engineer of our fastest trains ? Who puts forth the
greater effort, the peon who twelve hours a day carries load after load of ore in sacks on his
back up a notched pole out of a deep Mexican mine, or the fireman who for two hours and a
half between New York and Albany, calling it a day's work, shovels coal for the fastest train ?
In the locomotive runs across Arizona where oil burners are used, even the fireman's work,
usually so hard, has been converted into watching the water glass, watching the smoke, and
with his fingers turning on and off water and oil supply.

The grub acquiesces in the obvious ; and until the last century, all but very few men acqui-
esced in the obvious. By force of ancestral habit this acquiescence is still the curse of most
of us. Our ideals, our schedules, have been and are too low instead of too high. The 18-hour
trains between the two largest American cities are on the highest regular long-distance sched-
ules thus far attained; but on an open speed-way not comparable to the steel track in smoothness, an automobile with its little engine, and one man guiding, ran faster and longer, so that in comparison 18 hours seems slow; and, quite surely somewhere, some time — perhaps in China or Africa — Brennan's gyroscope car on a monorail, indifferent to both grades and curves, shortening distances one-fifth, will do in 8 hours what now takes 18.

In planning for standardized conditions, it is difficult not to skip the present and plan for the
future; but even in the greatest American plants, the conditions imposed by an ignorant
and inefficient past are accepted, schedules are toned down, and painful effort crowds out in-
telligent control. In one large plant where the heaviest and slowest piece took only 40 days for
completion, the managers acquiesced for many years in a 9-month schedule, and after much
special work felt pride instead of humiliation in a 6-month schedule. A 15-day schedule for
general repairs to a locomotive is considered fast time and the average is more nearly 30,
but if the time for each item is separately entered in a summary, it is hard to discover why
3 days would not be enough.

The battleship "Kansas" of the American Navy under an eminent efficiency commander
went into dry-dock, water was pumped out of the dock, hull cleaned, scraped, painted, rudder
post repacked, and the vessel floated again in less than 24 hours. For a steamer immediate
repairs are otherwise important than for an isolated locomotive. The railroads, on the other
hand, show marvelous speed, generally of the main-strength order, in clearing away a wreck
or an earth slide or opening a snow blockade.

Ideals of standardized conditions are not Utopian, but are immediately and intensely
practical, but ideals must precede selective action.

The artist must have aesthetic ideals, the musicians, musical ideals ; but the man who would
bring about standardized conditions, either in himself or in his surroundings, must have con-
ceptions of time, of effort, of cost; he must instinctively recognize that for each operation
there is one combination of these three that is best for the ideal result.The ideal result
may be the destruction of an enemy's battleship, twelve million dollars sunk in five min-
utes, by guns loaded, accurately aimed, and fired so as to hit, at the rate of two salvos a minute.
Time minimum at whatever cost and effort !

In our individual lives, in our shops, in our nation, what are we trying to accomplish ? Are
we taking too much time, is it costing too much, are we squandering our strength? Are we
standardizing conditions so that time will not be wasted, so that money will not be thrown away,
so that effort will not be in vain?


THE TENTH PRINCIPLE: STANDARDIZED OPERATIONS

Commentary by KVSSNRao

Planning pays; the application of all the principles of efficiency pays; but standardized operation is the principle that most appeals to the individuality of the man, of the worker. Ideals are passive, common-sense is passive, planning in all its phases is passive, but standardized operation becomes an individual joy with its wealth of active manifestation.

 Nature has ultimate ideals, but nature's creatures are not habitually idealists, reverent, kindly, clean, chaste, or honest. Ideals are so obscure that most of us do not know what ideals we hold.

We begin indeed with ideals ; we expect end results; we leap over the intervening stations
of the preceding nine principles, much as if we expected a train to run from New York to San
Francisco with one helping of coal, water, lubrication, with one train crew. The rope is
made of many minor strands ; these are twisted from the numerous threads, and these in turn
have been spun from broken and carded fibres. The sheep's fleece is a unit, a matted mass that
adheres and forms a whole, not because it is woven like a blanket, but because of its inter-
woven confusion and tangle. There is no popular English word for a single thread of wool.
Pull one lock and the whole fleece comes, not because of orderly connection, but because of
disorderly tangle.


Once a day should the 40,000 operations of the shop be straightened out in accordance
with a general plan. Ladies take care of their 40,000 hairs every day with a comb with a general plan.

A comprehensive shop plan, graphically expressed, looks like a flattened tree. Each leaf,
the separate operations, must be in order in its appointed place; each twig, with its own
definite length, must reach in sequence into the main branches, these in turn being distributed
at determined intervals along the main stem and trunk.

The trunk grows upwards and outwards, from the force implanted in the seed, the
original ideal of the tree, but there is a reverse flow of imprisoned sunlight and captured car-
bon from the leaves back into the roots. The separate operations in a shop must flow into
the final output ; but from the expected output backward, there must be a plan that reaches
back to each detail of every operation.

It is one thing to build a battleship taking up details as they occur — the haphazard method; it is another thing to make the plan first, place all the details where they belong in time,
space, relation and perfection, and have them drop into place with the accuracy of a watch
movement — the difference, in fact, between the running of sand through an unstandardized
aperture, and the precision of the chronometer. Good results are not achieved by chance.

I have before me one volume of the standard-practice instructions covering the manufactur-
ing of the gasoline automobile truck car. It contains 278 isometric designs or illustrations,
314 pages of printed matter, and spaces for the times and rates of 1,231 distinct operations.
Each one of these operations was preceded by many designs until one was accepted as ap-
proximately good. The design was split up into its component parts, investigation made
as to material of each piece, how strong it should be, what heat treatment should be given,
on what machines it should be shaped, in what sequence, by which worker. As to each piece
and operation many time studies are made, and finally from the mass of accurately ascertained
or available information, a carefully pre-studied work-instruction card is made out. All these
items of planning must precede the time and cost ratings. Are you appalled at the mass of
detail that precedes the making of a book? If we have but 100 copies to print it is cheaper,
quicker, and better than manuscript duplication; if we have 3 copies to make it is better
to choose the typewriter and provide carbon manifolds than to write it out by hand. If we
want only 300 screws and it takes 3 hours to set up the automatic machine and only 3 min-
utes to run out the screws, it is better to use the automatic. A modern activity, whether the
operation of an industrial shop, or a railroad, or of the turrets and guns of a battleship, is
part of a gigantic, automatic machine; and it pays to plan in advance, not to trust to the hap-
hazard.

Probably the most marvelous and valuable example of standardized operations anywhere
in the world is on our American fleets in battle practice.  A Dreadnaught makes all the navies of
the world without Dreadnaughts obsolete, because such a battleship with its ten 12-inch
guns, can fire a broadside from all of them at once while steaming at 21 knots. One modern Arkansas or Wyoming, with twelve 12-inch guns, firing four times as fast and hitting four times as often,
will, for the time being at least, be sixteen times as effective. These big guns are loaded,
aimed, and fired twice in a minute. The practice drill is only half this time, and this prac-
tice drill is of two kinds. There is the physical act of loading the heavy gun, there is the more
important act of pointing it. Two opposing ships are 10,000 yards apart (about 6 miles)
steaming at 18 knots in diverging directions.

Thus gradually, from all sides — from the watch and sewing-machine and typewriter factory, from the race-track, from the fire-fighters, from the manipulation of the big 12-inch guns, from schedules, despatching, standardized conditions and standardized operation in some shops — the methods of efficiency are spreading.

Planning pays; the application of all the principles of efficiency pays; but standardized operation is the principle that most appeals to the individuality of the man, of the worker. Ideals are passive, common-sense is passive, planning in all its phases is passive, but standardized operation becomes an individual joy with its wealth of active manifestation.

Let none hesitate because we cannot standardize each new operation. We cannot standardize every errand boy's every trip ; we cannot standardize every naval battle; but we can so
inspire both errand boy and admiral that each will always do his best, we can give them train-
ing, knowledge, help, and incentive; and if we do this for them and for all other workers,
even though we cannot drill and redrill as to the performance of the occasional operation,
we can be absolutely sure that no savable time will be wasted nor effort lost in performing it.


THE ELEVENTH PRINCIPLE: WRITTEN STANDARD-PRACTICE INSTRUCTIONS







Pumpelly tells a story of a Japanese student of metallurgy, who about 1870 possessed an
English work on blast furnaces, an English-Dutch dictionary, and a Dutch-Japanese dic-
tionary, and with these as guides he constructed and operated a fairly successful blast fur-
nace for smelting iron ore. This shows what can be done by Standard Permanent Written
Instructions.

We have no accurate description of the engines of destruction invented by Archi-
medes for the defense of Syracuse against the Romans. They must have been interesting
since they lifted whole ships and dropped them endwise into the sea or onto the rocks.

Maps and charts  are useful. A stranger on an unknown coast, in an unknown land, an unknown city,
knows more about it if he has a good chart or map than the native.


Roaming and navigating savages who really need maps are very skilful in drawing them.
Sir Edward Parry discovered Hecla Strait from a map drawn off-hand for him by an
Eskimo woman ;






American law is in most States the out-growth of English common law, and in our
Spanish and French States, of Roman law. The common law in England is the outcome of
custom finally passed on by the courts or defined by acts of Parliament. In many of our
State codes we have attempted to reduce the principles to statutes governing particular
cases. This is often helpful and often not.

Lord Wolseley credits Napoleon with the greatest intellect the human race has ever pro-
duced* Bonaparte, First Consul, personally worked over the wording of the Civil Code, He
wanted its provisions so clear that even the most ignorant peasant could understand. As
French is an admirably definite and clear language, as the French have a passion for logic,
as the greatest legal minds of France aided and were aided by Bonaparte in evolving this
code, it furnishes an admirable example of Permanent Written Standard-Practice Instruc-
tions. It was, moreover, only one of seven great organizing acts which he made into spe-
cific standard-practice instructions, these instructions having persisted almost unchanged
to the present time.

The standardizing operations, the ratchet action, is of very great importance.

An American weakness is to be discouraged by difficulties and to back-water instead of
overcoming troubles and going forward. All the world knows that compound steam-engines
use less coal and water than simple engines. The compound principle was successfully ap-
plied in France and Germany to locomotives. The steam pressures were naturally much
higher. American railroads rushed into compounds with inadequate preparation, knowl-
edge, or designs. Difficulties of all kinds developed, due partly to the high pressures, partly
to the added dependent and increasingly inefficient sequences. A case dwells in memory in
which it took 80 hours to renew an intermediate packing. Compounds as tried proved ex-
pensive and troublesome both to operate and to repair. Instead of being perfected as in France
and in Germany, in order to gain the advantages of the principle, they have been aban-
doned by American roads almost without exception. Temporary expediency governs — not
ideals.

The marvelous results due to standardization of gunnery practice in the American fleet have
already been referred to. These results were achieved by the ratchet process, by holding
onto every gain and by never allowing any slip back, these results being secured by a volumin-
ous book of instructions and suggestions. In this book best ways as ascertained to date are
specifically prescribed, by written, permanent standard-practice instructions, but these in-
structions are subject to a bombardment of suggestions and all these suggestions, however
foolish, are tabulated, printed, and confidentially published.



It is not only in its charts, in its naval gunnery, in its agricultural department, that the
United States Government has established permanent written instructions.

The specifications of the purchasing department of the navy are at once the most com-
plete, the most modern, and the best I have ever seen. That the plans were evolved and per-
fected by graduates of Annapolis speaks highly for the practical value of the general education
there imparted.

There are many hundred different specifications covering everything that the navy regu-
larly uses; the specifications for eggs covered several pages; the specifications for potatoes
are as follows:





When advances are not only definitely recorded but when the best practice is carefully
and systematically reduced to writing, progress made is held and built upon in an industrial
plant or any other undertaking. Every shop, every institution, has its great body of common-
law practices that have gradually crept in, common law variously understood and variously in-
terpreted by those most affected. Often the traditions of the past are treasured up in the
brain of some old employee, who transmits them, much as the memories of old bards were
formerly the only available history.


Each one of the ten preceding efficiency principles can and should be reduced to written,
permanent standard-practice instructions so that each may understand the whole and also
his own relation to it. In some plants the only rules obtainable or visible are certain subsi-
diary conduct rules, offensively expressed and ending with the threat of discharge.

 The ideals of a plan or undertaking can be expressed in a few words. One of the
mottoes of American naval practice is: "Efficiency and Economy." This is amplified into
special rules governing all kinds of activities. I have before me the following :



Discipline and the fair deal do not require voluminous initial instructions, although both
discipline and the fair deal should curtail automatism.

Standard-Practice Instructions are the permanent laws and practices of a plant. What
these laws, practices and customs are should first be carefully ascertained and be reduced
to writing by a competent and high-class investigator, and it will be all the better if he has
had legal training. It will take considerable work to find out what the practices are, as dif-
ferent officials from president down may have different opinions and theories and also the
practice may vary from month to month. It is quite usual to find the actual practice quite
different from what the general manager or president supposes it is. Men do what they can,
not what they have been told. The purpose is to find out what current practice is, not what it
is supposed to be.

The next step in the work is to harmonize the discrepancies, to cut out what is useless or
harmful, and to supplement the resultant body by needed additions.

When this constructive work has been per-formed there will be a preliminary code. In
actual practice it will be found that it is still defective, incomplete or contradictory. It is. to
be made workable not by throwing it to the winds and reverting to the previous state of
semi-anarchy every time a difficulty arrives, but by carefully considered amendments. The
code being made up of a number of different statements and enactments can be amended by
sending out notice of withdrawal of any enactment, at the same time issuing the amended
enactment, the substitution being effected as in the illustration that follows : —


 It is pathetically and ignorantly supposed that standard instructions destroy a
man's initiative and make of him an automaton. Compared to the drop of the sparrow through
the air, or the scamper of the squirrel down a tree, a staircase does indeed limit the initiative
of a man going from the roof to the ground. He who prefers it may let himself down from
the window by a rope. I prefer the limitation, common-sense, safety and ease of the staircase.
A ferryboat limits the initiative of a commuter entering the city and a tunnel even more limits
this initiative. Those who prefer it are welcome to the right to swim the Hudson or to use
a small skiff of their own. The flanges of the locomotive and car wheels confine the train to
the steel rails, and this is a great curtailment of initiative compared to the free path of the
buffalo or of the bull-whacker across the plains.

The fact is that the limitation of initiative professedly so dreaded is wholly imaginary. To
follow the better and easier way is to lessen effort for the same result, to leave more oppor-
tunity for higher initiative to invent or evolve still better ways.

The aviator flying 72 miles an hour is the greatest initiator in the world to-day, yet to a
degree never before experienced he is limited by his engine, and nothing would be so welcome
as standard-practice instructions that would help keep his engine going, as automatic stabil-
ity for his plane, gladly relinquishing his own initiative in favor of tested standard practice
in both these respects.

Any undertaking run without written standard-practice instructions is incapable of progressive advance, but by means of written instructions advances far more rapid than those attained by insects and birds are possible. Wireless telegraphy is but suggested, experi- ments described, and inside of ten years our coast is fringed with the masts of rival systems and messages are transmitted across the ocean !

The first flights of aeroplanes were but eight  years ago, and to-day they are carrying twelve
passengers or flying 72 miles an hour. Five years of planned, attained, and recorded prog- ress will accomplish more than twenty years of rule of thumb tucked away under the hats of shifting employees.


Commentary by KVSSNRao

Any undertaking run without written standard-practice instructions is incapable of progressive advance, but by means of written instructions advances far more rapid than those attained by insects and birds are possible.

With the above statement, Emerson brings into picture knowledge management, a popular theme today.

THE TWELFTH PRINCIPLE : EFFICIENCY REWARD



Compared to life, physical, psychical, mental, all else seems simple ; yet how few the
instincts to perpetuate and develop life! The instinct for immediate life, the instinct for
eternal life, the preservation of the individual and the race — yet both these instincts are main-
tained and stimulated by one single principle, the last of the twelve, the principle of "EFFI-
CIENCY REWARD/'









We can smile at those who in their ignorance try to nullify the principles of efficiency re-
ward, to banish it from human affairs. Yet man, because he perversely went backward
into darkness rather than forward into light —man who is what he is because of high reward
for individual efficiency — forgot the principle that had made him, forgot that it was eternal
and that ever greater rewards were still ahead, and tried to hold exclusively what he had and
to enhance its value by depriving others of what had been given him. The priests of all
ages, those to whom it had been given to read some pages of nature's open book, immediately
made mysteries of this knowledge, tried to put the book under lock and key. Dynasties which
had reached their kingship through individual efficiency — the Carolingians, the descendants of
the pawnbroking Burggrave of Nuremberg, the Tudors, the Bourbons, immediately substituted
for the principle of efficiency the artificial principle of the Divine Right of Kings, of king-
ship by the Grace of God. Men who, like David and Solomon, ought to have known that there
was supreme joy in winning the love of one woman, whether Bathsheba or the Queen of
Sheba, immediately laid in (by the mercenary path, not by means of emotional efficiency)
whole harems of useless atrophying women, David's chief pleasure apparently being to shut
them up in remote and distressful seclusion for the mean pleasure of watching their lives waste
and of depriving other men of wives (see II Samuel, 20:3). All nature shows that inno-
vating efficiency is the direct effect of reward, but the history of human institutions shows
that these are chiefly devised by the selfish few to appropriate rewards without efficiency, yet
coating the pill by holding out the lure of a remote and hypothetical reward for efficiency to
those who bow the knee in service, to the deluded many.

Thus is offered by the priests the promise of heaven to those who yield to the demands of
the church, by generals the promise of Paradise with houris galore to those who die in
battle, by kings the promise of occasional largesse and festivities to those who pay taxes
and otherwise serve, by guilds commercial success to members, by unions fixed wages for in-
adequate work to those who join them.




The day-wage system, contrary as it is both to the underlying principle of efficiency reward
and also to all principles of equity, since it lacks any intelligent relation between pay and
performance, is doomed, in spite of hoary custom, current practice, in spite of combined
(although opposed) efforts of unions and employers' associations. Compensation for work
cannot remain an exception to the general law that there must be a definite equivalent, based
on the two elements of quantity and quality; and our ability to measure accurately both
quantity and quality, whether the weight in carats of the diamond and its blue-whiteness,
whether the weight of coal and the heat units per pound, is one of the measures of civiliza-
tion. In iall the ten-thousand years before coal, during which the human race warmed itself
and cooked with wood fires exclusively, there is probably not a single instance in which any
exact heat-unit equivalent and price demanded or paid was determined. The same happy-go-
lucky vagueness was transmitted to coal purchases, and even yet most coal is purchased
without reference to analysis.



Efficiency rewards hold good for nearly
every worker in life except the day worker.


The hunter who starts early, who has practiced much, who works hard, brings home the
game. The farmer who selects his seed carefully, tills and fertilizes his crops scientifically,
secures twice the yield per acre ; the merchant who hits the fancies or the necessities of the
buying public becomes rich; the lawyer who wins cases charges heavier fees; the doctor
who has made a name for himself charges fancy prices for very simple operations; the
clergyman who is eloquent receives a call to a larger church ; the politician who stands in with
the boys attains ultimately to a senatorial toga. Everywhere— except for almost the largest
class of all, the men who work with their hands — there is special and closely connected
reward for individual efficiency. Are the toilers to have no efficiency reward? The induce-
ment is held out that if they join unions they will receive day wages — high day wages — short
hours, and that they will not have to work hard. Permanence of pay, which is far more
vital than rate of pay, is not guaranteed. It is the earning in a working lifetime, divided by
all the days, that counts, not the nominal wages per day. In the modern industrial state initia-
tive must not be destroyed, separate action must exist ; there must be individual as well as
collective bargaining; the individual must also count; the guild is not everything. I have no
antagonism to unions. They have been and are still very necessary; they have mitigated
the tyranny of the employer and of his irresponsible foremen over helpless, because di-
vided, workers. Unions should be supported in their every effort to make the work of
women and children unnecessary. Unions have demonstrated in many instances that very high
rates of pay per day are compatible with flourishing business for the employer. By estab-
lishing and maintaining a scale they have done an eminent service in preventing a blind slash-
ing of wages below the living limit, in order to lessen costs, high for reasons not connected with
wages. Unions have accomplished much. Coming to the subject from a different point of
view, I agree with them in their attitude toward piece rates, which are intended to stimu-
late strenuousness, often harmful strenuousness, the exact opposite of efficiency ; but as to
a fixed rate of pay per hour or day without reference either to equivalent or to individual-
ity, the whole teachings of the ages, the whole tendency of the time, are against it. We can
well excuse churches which try to maintain their tottering sway; we can excuse dynasties
who inculcate the divine right of kings ; we can excuse guilds like the stock exchange which
attempt to limit all the business of its kind to their own members ; but it is one of the trage-
dies of this era of discovery and invention, this era of the looting of natural resources of the
universe for the sake of man, that justice, the protection of equivalent, should be denied
both employer and employee, and the reward of individual excellence be denied the worker.




Efficiency reward cannot be equitably offered to the worker until equivalency is first conceded
and established. The basis of equivalency is of little importance compared to the principle.



The trouble with piece rates was that they attempted to solve, by a crude application of
the principle of strenuousness, not an efficiency principle, a number of problems that could be
solved only by the application of many efficiency principles. Ideals were not clearly seen,
common-sense was not invoked, competent counsel was not secured, discipline and the fair
deal were equally neglected, as cases are known in which piece workers had to begin work at 5
a. m. in order to make a day's wage. Reliable records were lacking, there was no planning,
no despatching, no standardized conditions and no standardized operations — only arbitrary
piece-rate schedules, a day rate of average current wage to the phenomenal worker being the
ultimate measure of the piece rate.

The first strike recorded in history was a strike against a cut in piece rates (by Jews in Egypt).


A profit-sharing plan is not an efficiency reward. Out of the eighteen items of operating
costs or manufacturing costs, as distinguished from selling costs, only one is directly influ-
enced by the worker, and that is the time-quality of his work. For the other seventeen
items the management is partly responsible, but often many of them are beyond the control
of either manager or worker — the prices of materials, for instance. These are often the
largest part of the cost.





Equity demands direct connection between efficiency reward and efficiency quality. A dis-
tribution pro rata to wages at the end of the year, to bad and good alike, of a profit due
always in largest part to causes over which the worker has no control, is illogical although it
may be kind. What direct incentive is there to a good worker to put forth special effort when
all the efforts of all the workers can be negatived by a slump in the market price? What
direct incentive to put forth special effort when the laziest and the most wasteful will be given
the same proportionate reward? An efficiency reward is one which the worker can see and
grasp during the effort, one that is paid to him for his individual excellence in that for which
he is individually responsible. What incentive would there be to owners and jockeys of race
horses if instead of stakes, competed for and won at the post, a small portion of the gate re-
ceipts were distributed pro rata at the end of the season to all, including the also rans ? What
incentive would ball players have to manifest individual excellence if, at the end of the sea-
son, all shared pro rata in a bonus more dependent for amount on the weather than on
their efforts ? Would it be an efficiency reward to offer fruit packers a bonus based on the
price of the yield when a single frost may destroy the whole crop, or suitable weather
double it, with prices affected by competitive product grown three thousand miles away, as
Idaho and Washington apples competing with New York fruit? Profit sharing is not inequitable as are piece payments ; it is an amiable kindness on the part of the plant owners, but it is not efficiency
reward.

There are, however, forms of bonus above guaranteed wages that are free both from the
inequities of piece rates and from the colorless amiability of profit sharing.

The worker sells two different possessions, both his own — his time and his skill. He should
be robbed of neither. Time payments which make no allowance for skill are wrong; skill
payments which make no provision for time are also wrong. It is easy to measure time. We
can do it with the watch that made the dollar famous. In horse racing, time is used exclu-
sively to measure skill. The horse that is able to clip a fifth of a second from a world's record,
may by that act add $10,000 to his value. Skill may also be measured in time. In the battle
practice of the American fleet it is more important to fire 120 rounds an hour and make 10
per cent of hits, than to fire 12 rounds an hour and make 50 per cent of hits.

Mr. F. A. Halsey, in his premium plan under which he guarantees compensation per hour
irrespective of product, and in addition pays a premium of one-third pay for all time saved
over previous records, laid the foundation for rational efficiency reward. As usually put into
practice the plan is imperfect, because the dividing point between day wages and premium
addition is carelessly accepted without scientific or reliable accuracy. It reminds one of the
German's measure of road distance, the Stunde, or hour, which conveys no meaning unless one
knows what kind of an animal and the habitual speed shown for an hour. In the centuries
before Stunde was a measure of distance, Caesar's millia passuum — the thousand steps of
the soldier — were used as a measure of time; very accurate as to distance, not bad as to time,
as there were no railroad trains to catch ; but before the days of clocks, a. measure of distance
based on guess of time on a cloudy day was not a unit of record either reliable, immediate or
adequate. There are minutes that seem like hours, so wearily do they drag ; there are hours
that fly like minutes, each minute holding more than other days.

F. W. Taylor's immense merit was that above everything else he insisted on the necessity and
possibility of determining very closely the upper limit of high and rapid performance
under normal conditions, a performance that could be kept up for years or for a working
lifetime without detriment to the worker, yet that eliminated the flagrant or avoidable waste.
Taylor thus laid the founations for equitable bonus for each operation to each individual.

Gantt was the first to evolve and use in the compensation of workers a plan that retained
full pay by the hour (therefore pay for time quantity, a definite original recompense) and
pay for time quality, for a specific task, for which a most carefully ascertained time had
been determined. No reward was paid unless full time quality was realized. It was on the
principle that a fisherman either caught his fish or he did not ; there were no half or quarter fish
for near skill in angling.

Many of nature's efficiency rewards are of this character, and it is a strong, virile prin-
ciple.

The author, owing to the nature of the work in the plants he was counseling, found it unde-
sirable to make the line of demarcation so sharp between efficiency and inefficiency, and there-
fore followed nature's softer plan of efficiency reward. Every plant or animal must maintain
a certain minimum of efficiency or it dies; atrophy results in extinction; but above this
lower limit, reward is proportioned to efficiency^-small reward to the less efficient,
special honors to the most efficient.

The principle of the wage target with a small bull's eye is applied. Shots outside of the
bull's eye but in the target also count.

In the original plan, while certain operations averaged four hours under the same workman
working with the same diligence, on one occa-sion the time would be five hours and on an-
other three hours, owing to conditions over which the worker had no control. It was highly
desirable to maintain the interest of the operator in the discouraging jobs, so while a stand-
ard bonus of 20 per cent was paid for attaining standard time, while 10 per cent bonus was
paid for attaining 90 per cent of standard time and 3.25 per cent bonus for 80 per cent of stand-
ard time, bonus stopped at 67 per cent of standard. If less time than standard was
used, the worker was paid at his full hourly rate for all the time he saved, and. was paid in
addition 20 per cent bonus for the time that he worked. A workman had to be very inferior
who could not regularly earn some bonus. A further step to eliminate accidental and inevit-
able time variations was suggested and worked out by two advisers, Mr. Playfair and Mr.
Whitef ord, who have both made for themselves names in efficiency work. Under the new plan
the worker is charged with all the hours he works in any selected period, week, month, etc.,
and he is credited with and paid for all the standard hours of work which he turns out.
The bonus, whether for job, for day, for month or longer period, is paid on the efficiency rela-
tion between actual and standard. If a worker is present 250 hours in a month and turns out
250 hours of work in 250 hours actual time, his efficiency is 100 per cent, and he earns 20 per
cent bonus on wages; but if in the same time he turns out 300 hours of work, his efficiency
40 per cent on his wages.

The standard times are most carefully determined by time studies, by observations, by the-
oretical considerations, by demonstrations, using every available method to establish fair
and correct standards. If the performance is walking on a good road and the time eight
hours, we settle on 24 miles a day as an easier task than a quarter of a mile each quar-
ter hour as in some of the monotonous beats of sentries or policemen. If the performance is
to be 24 miles, we desire to take for it neither 16 hours a day nor yet 4 hours, but a time be-
tween 6 hours and 9, according to the preference of the worker; and it is further realized
that the best standard of efficiency is not a maximum of muscular effort for a short time,
nor a maximum of physical wear for a long time, but a combination of mental and physical
exhilaration which leaves the worker in best condition at the end of the accomplishment,
whether the unit of time be a few seconds, a day, a month, a year, or a lifetime.

Therefore, in this particular very limited application of efficiency reward the ideals are : —

(1) A guaranteed hourly rate.

(2) A lower limit of efficiency, which, if not attained, indicates that the worker is a misfit
and requires either special training or change of occupation.

(3) A progressive efficiency reward, beginning at a requirement so low that it is inexcus-
able not to average it.

(4) An efficiency standard established after careful and reliable investigations of many
kinds, including time and motion studies.


(5) For work to be performed, a time standard that is joyful and exhilarating, therefore
intermediate between depressing slowness and exhausting effort.

(6) A variation in standards for the same work for different machines, conditions and in-
dividuals, the schedules therefore being individual.

(7) The determination for each worker of an average efficiency for all jobs over a long period.

(8) A continuous correction of time standards and of wage rate to suit new conditions.
This is essential and inevitable. Wage rate rises f under the new conditions more skill or greater
effort is required. Time standards have nothing to do with wages. They are not changed
to affect earnings either one way or the other, but to be accurate and just. The time standard
for covering a mile for a man on foot is inevitably less for a man on a bicycle, inevitably
less for a man on a motor cycle than for a man on a bicycle.

(9) The worker must have the personal option of working not to a standard time, but be-
tween limits on each side of standard time. If he does not consider standard time fair, he can
take his assumed hourly rate and show lower efficiency, which greatly enhances the cost to the
employer, whose self-interest has so to improve physical or psychical conditions as to induce the
worker to attain standards.

Efficiency constitutes 9 out of the 18 elements of cost — efficiency of quality and quantity and
overhead for materials, for labor and for fixed charges. It has been found exceedingly satisfac-
tory and convenient to base efficiency rewards on the cost of efficiencies, the method being so
flexible as to be applicable to an individual operation of a few minutes' duration, or to all the
work of a man for a long period, or to all the work of department or plant.

Nevertheless, these various forms of bonus are but devices of great practical value, just as
 foot rule or the multiplication table is of  practical value, but for importance they are not
to be compared to the broad principle of efficiency reward which is far above any particular
device. It is therefore absolutely impossible for any combination of workers to prevent the
application of the principle of efficiency reward if any management chooses to adopt it.

Efficiency reward is not a money payment, this is only one of its myriad forms. Men have
been willing to die for a smile. Hobson relates that one man offered to forfeit a year's pay if
they would but allow him to be one of the crew to sink the "Merrimac" across the entrance to
Santiago harbor. Garibaldi offered his hearers hunger, thirst, hardship, wounds, prison and
death, and in a frenzy of eagerness they followed him.

Highest efficiency is easily stimulated, although there is often no more direct connec-
tion between act and reward than in profit sharing which does not stimulate. In Jack Lon-
don's elemental tale of the miner of Forty Mile, the girl he fought for was the direct prize. He
would have had to fight if there had been no girl and he would have lost, but in Victior
Hugo's "Toilers of the Sea," the man single-handed saved the wrecked steamer, not that he
might profit, but that he might win a girl's love. The bitter tragedy lies in the fact that
he had striven for a reward, made its hope the inspiration of his work when he should have
known that it could not be attained in that manner.

Twelve principles of efficiency! We began with ideals, we end with ideals. Men must have
ideals or they cannot do good work ; there must be possibility of highest efficiency reward or
neither senses, nor spirit, nor mind is stimulated.

He who would take ideals from the world's workers, he who would deprive them of the lure
of individual reward for individual efficiency, would indeed make them brother to the ox.

He who believes the road behind humanity registers but a fraction of what is still to be
attained, seizes on the principle of efficiency reward to bring to their highest development ma-
terials, muscle, mind, and above all, spirit


Commentary by KVSSNRao

Emerson quoted Taylor and Gantt in this chapter