Friday, July 8, 2016

July Second Week - Industrial Engineering Knowledge Revision


The principles explain the question what is industrial engineering (IE)?

Basic Principles of Industrial Engineering


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 K.V.S.S. based on principles of scientific management by F.W. Taylor) More details: Basic Principles of Industrial Engineering http://nraoiekc.blogspot.com/2016/07/basic-principles-of-industrial.html


Second Week of July


8 July


11. Illustrations of Success of Scientific Management - Bicycle Balls Inspection Example

12. Scientific Management in Machine Shop

9 July


13. Development of Science in Mechanic Arts

14. Study of Motives of Men

10 July


15. Scientific management in its essence

16. Role of Top Management in Implementing Scientific Management

11 July


17. Scientific Management Summarized

18. Harrington Emerson - A Pioneer Industrial Engineer


12 July


19. The Twelve Principles of Efficiency - Part 1

20. The Twelve Principles of Efficiency - Part 2


Wednesday, July 6, 2016

Role of Top Management in Implementing Scientific Management - F.W. Taylor


Continued from
Scientific Management in Its Essence - F.W. Taylor

Directors of the Company Have to Understand the Fundamental Principles of Scientific Management


The writer would again insist that in no case should the managers of an establishment, the work of which is elaborate, undertake to change from the old to the new type unless the directors of the company fully understand and believe in the fundamental principles of scientific management and unless they appreciate all that is involved in making this change, particularly the time required, and unless they want scientific management greatly.

Distribution of Productivity Gain between Shareholders, Employees and Consumers


Doubtless some of those who are especially interested in working men will complain because under scientific management the workman, when he is shown how to do twice as much work as he formerly did, is not paid twice his former wages, while others who are more interested in the dividends than the workmen will complain that under this system the men receive much higher wages than they did before.

It does seem grossly unjust when the bare statement is made that the competent pig-iron handler, for instance, who has been so trained that he piles 3 6/10 times as much iron as the incompetent man formerly did, should receive an increase of only 60 per cent in wages.

It is not fair, however, to form any final judgment until all of the elements in the case have been considered. At the first glance we see only two parties to the transaction, the workmen and their employers. We overlook the third great party, the whole people,--the consumers, who buy the product of the first two and who ultimately pay both the wages of the workmen and the profits of the employers.

The rights of the people are therefore greater than those of either employer or employee. And this third great party should be given its proper share of any gain. In fact, a glance at industrial history shows that in the end the whole people receive the greater part of the benefit coming from industrial improvements. In the past hundred years, for example, the greatest factor tending toward increasing the output, and thereby the prosperity of the civilized world, has been the introduction of machinery to replace hand labor. And without doubt the greatest gain through this change has come to the whole people--the consumer.

Through short periods, especially in the case of patented apparatus, the dividends of those who have introduced new machinery have been greatly increased, and in many cases, though unfortunately not universally, the employees have obtained materially higher wages, shorter hours, and better working conditions. But in the end the major part of the gain has gone to the whole people.

And this result will follow the introduction of scientific management just as surely as it has the introduction of machinery.

To return to the case of the pig-iron handler. We must assume, then, that the larger part of the gain which has come from his great increase in output will in the end go to the people in the form of cheaper pig-iron. And before deciding upon how the balance is to be divided between the workmen and the employer, as to what is just and fair compensation for the man who does the piling and what should be left for the company as profit, we must look at the matter from all sides.

First. As we have before stated, the pig-iron handler is not an extraordinary man difficult to find, he is merely a man more or less of the type of the ox, heavy both mentally and physically.

Second. The work which this man does tires him no more than any healthy normal laborer is tired by a proper day's work. (If this man is overtired by his work, then the task has been wrongly set and this is as far as possible from the object of scientific management.)

Third. It was not due to this man's initiative or originality that he did his big day's work, but to the knowledge of the science of pig-iron handling developed and taught him by some one else.

Fourth. It is just and fair that men of the same general grade (when their all-round capacities are considered) should be paid about the same wages when they are all working to the best of their abilities. (It would be grossly unjust to other laborers, for instance, to pay this man 3 6/10 as high wages as other men of his general grade receive for an honest full day's work.)

Fifth. As is explained (page 74), the 60 per cent increase in pay which he received was not the result of an arbitrary judgment of a foreman or superintendent, it was the result of a long series of careful experiments impartially made to determine what compensation is really for the man's true and best interest when all things are considered.

Thus we see that the pig-iron handler with his 60 per cent increase in wages is not an object for pity but rather a subject for congratulation.

After all, however, facts are in many cases more convincing than opinions or theories, and it is a significant fact that those workmen who have come under this system during the past thirty years have invariably been satisfied with the increase in pay, which they have received, while their employers have been equally pleased with their increase in dividends.

The writer is one of those who believes that more and more will the third party (the whole people), as it becomes acquainted with the true facts, insist that justice shall be done to all three parties. It will
demand the largest efficiency from both employers and employees. It will no longer tolerate the type of employer who has his eye on dividends alone, who refuses to do his full share of the work and who merely cracks his whip over the heads of his workmen and attempts to drive them into harder work for low pay. No more will it tolerate tyranny on the part of labor which demands one increase after another in pay and shorter hours while at the same time it becomes less instead of more efficient.

And the means which the writer firmly believes will be adopted to bring about, first, efficiency both in employer and employs and then an equitable division of the profits of their joint efforts will be scientific management, which has for its sole aim the attainment of justice for all three parties through impartial scientific investigation of all the elements of the problem. For a time both sides will rebel against this advance. The workers will resent any interference with their old rule-of-thumb methods, and the management will resent being asked to take on new duties and burdens; but in the end the people through enlightened public opinion will force the new order of things upon both employer and employee.

It will doubtless be claimed that in all that has been said no new fact has been brought to light that was not known to some one in the past. Very likely this is true. Scientific management does not necessarily involve any great invention, nor the discovery of new or startling facts. It does, however, involve a certain combination of elements which have not existed in the past, namely, old knowledge so collected, analyzed, grouped, and classified into laws and rules that it constitutes a science; accompanied by a complete change in the mental attitude of the working men as well as of those on the side of the management, toward each other, and toward their respective duties and responsibilities. Also, a new division of the duties between the two sides and intimate, friendly cooperation to an extent that is impossible under the philosophy of the old management. And even all of this in many cases could not exist without the help of mechanisms which have been gradually developed.

F.W. Taylor, Scientific Management

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Role of Top Management in Implementing Scientific Management


Updated  9 July 2016, 15 August 2015, 4 August 2013

Scientific Management in Its Essence - F.W. Taylor


Continued from

The history of the development of scientific, management up to date, however, calls for a word of warning. The mechanism of management must not be mistaken for its essence, or underlying philosophy. Precisely the same mechanism will in one case produce disastrous results and in another the most beneficent. The same mechanism which will produce the finest results when made to serve the underlying principles of scientific management, will lead to failure and disaster if accompanied by the wrong spirit in those who are using it. Hundreds of people have already mistaken the mechanism of this system for its essence. Messrs. Gantt, Barth and the writer have presented papers to, the American Society of Mechanical Engineers on the subject of scientific management. In these papers the mechanism which is used has been described at some length. As elements of this mechanism may be cited:

Time study, with the implements and methods for properly making it.

Functional or divided foremanship and its superiority to the old-fashioned single foreman.

The standardization of all tools and implements used in the trades, and also of the acts or movements of workmen for each class of work.

The desirability of a planning room or department.

The "exception principle" in management.

The use of slide-rules and similar timesaving implements.

Instruction cards for the workman.

The task idea in management, accompanied by a large bonus for the successful performance of the task.

The "differential rate."

Mnemonic systems for classifying manufactured products as well as implements used in manufacturing.

A routing system.

Modern cost system, etc., etc.

These are, however, merely the elements or details of the mechanism of management. Scientific management, in its essence, consists of a certain philosophy, which results, as before stated, in a combination of the four great underlying principles of management:*

[*Footnote: First. The development of a true science.
Second. The scientific selection of the workman.
Third. His scientific education and development.
Fourth. Intimate friendly cooperation between the management and the men.]

When, however the elements of this mechanism, such as time study, functional foremanship etc., are used without being accompanied by the true philosophy of management, the results are in many cases disastrous. And, unfortunately, even when men who are thoroughly in sympathy with the principles of scientific management undertake to change too rapidly from the old type to the new, without heeding the warnings of those who have had years of experience in making this change, they frequently meet with serious troubles, and sometimes with strikes, followed by failure.

The writer, in his paper on "Shop Management," has called especial attention to the risks which managers run in attempting to change rapidly from the old to the new management in many cases, however, this warning has not been heeded. The physical changes which are needed, the actual time study which has to be made, the standardization of all implements connected with the work, the necessity for individually studying each machine and placing it in perfect order, all take time, but the faster these elements of the work are studied and improved, the better for the undertaking. On the other hand, the really great problem involved in a change from the management of "initiative and incentive" to scientific management consists in a complete revolution in the mental attitude and the habits of all of those engaged in the management, as well of the workmen. And this change can be brought about only gradually and through the presentation of many object-lessons to the workman, which, together with the teaching which he receives, thoroughly convince him of the superiority of the new over the old way of doing the work. This change in the mental attitude of the workman imperatively demands time. It is impossible to hurry it beyond a certain speed. The writer has over and over again warned those who contemplated making this change that it was a matter, even in a simple establishment, of from two to three years, and that in some cases it requires from four to five years.

The first few changes which affect the workmen should be made exceedingly slowly, and only one workman at a time should be dealt with at the start. Until this single man has been thoroughly convinced that a great gain has come to him from the new method, no further change should be made. Then one man after another should be tactfully changed over. After passing the point at which from one.-fourth to one-third of the men in the employ of the company have been changed from the old to the new, very rapid progress can be made, because at about this time there is, generally, a complete revolution in the public opinion of the whole establishment and practically all of the workmen who are working under the old system become desirous to share in the benefits which they see have been received by those working under the new plan.

Inasmuch as the writer has personally retired from the business of introducing this system of management (that is, from all work done in return for any money compensation), he does not hesitate again to emphasize the fact that those companies are indeed fortunate who can secure the services of experts who have had the necessary practical experience in introducing scientific management, and who have made a special study of its principles. It is not enough that a man should have been a manager in an establishment which is run under the new principles. The man who undertakes to direct the steps to be taken in changing from the old to the new (particularly in any establishment doing elaborate work) must have had personal experience in overcoming the especial difficulties which are always met with, and which are peculiar to this period of transition. It is for this reason that the writer expects to devote the rest of his life chiefly to trying to help those who wish to take up this work as their profession, and to advising the managers and owners of companies in general as to the steps which they should take in making this change.

As a warning to those who contemplate adopting scientific management, the following instance is given. Several men who lacked the extended experience which is required to change without danger of strikes, or without interference with the success of the business, from the management of "initiative and incentive" to scientific management, attempted rapidly to increase the output in quite an elaborate establishment, employing between three thousand and four thousand men. Those who undertook to make this change were men of unusual ability, and were at the same time enthusiasts and I think had the interests of the workmen truly at heart. They were, however, warned by the writer, before starting, that they must go exceedingly slowly, and that the work of making the change in this establishment could not be done in less than from three to five years. This warning they entirely disregarded. They evidently believed that by using much of the mechanism of scientific management, in combination with the principles of the management of "initiative and incentive," instead of with these principles of scientific management, that they could do, in a year or two, what had been proved in the past to require at least double this time. The knowledge obtained from accurate time study, for example, is a powerful implement, and can be used, in one case to promote harmony between the workmen and the management, by gradually educating, training, and leading the workmen into new and better methods of doing the work, or, in the other case, it may be used more or less as a club to drive the workmen into doing a larger day's work for approximately the same pay that they received in the past. Unfortunately the men who had charge of this work did not take the time and the trouble required to train functional foremen, or teachers, who were fitted gradually to lead and educate the workmen. They attempted, through the old-style foreman, armed with his new weapon (accurate time study), to drive the workmen, against their wishes, and without much increase in pay, to work much harder, instead of gradually teaching and leading them toward new methods, and convincing them through object-lessons that task management means for them somewhat harder work, but also far greater prosperity. The result of all this disregard of fundamental principles was a series of strikes, followed by the down-fall of the men who attempted to make the change, and by a return to conditions throughout the establishment far worse than those which existed before the effort was made.

This instance is cited as an object-lesson of the futility of using the mechanism of the new management while leaving out its essence, and also of trying to shorten a necessarily long operation in entire disregard of past experience. It should be emphasized that the men who undertook this work were both able and earnest, and that failure was not due to lack of ability on their part, but to their undertaking to do the impossible. These particular men will not again make a similar mistake, and it is hoped that their experience may act as a warning to others.

In this connection, however, it is proper to again state that during the thirty years that we have been engaged in introducing scientific management there has not been a single strike from those who were
working in accordance with its principles, even during the critical period when the change was being made from the old to the new. If proper methods are used by men who have had experience in this work, there is absolutely no danger from strikes or other troubles.

F.W. Taylor, Scientific Management

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F.W. Taylor Scientific Management - With Appropriate Sections

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16. Role of Top Management in Implementing Scientific Management

Updated on
9 July 2016, 4 August 2013

Study of Motives of Men - F.W. Taylor


Continued from

Accurate Study of the Motives Which Influence Men. 


There is another type of scientific investigation which has been referred to several times in this paper, and which should receive special attention, namely, the accurate study of the motives which influence men. At first it may appear that this is a matter for individual observation and judgment, and is not a proper subject for exact scientific experiments. It is true that the laws which result from experiments of this class, owing to the fact that the very complex organism--the human being--is being experimented with, are subject to a larger number of exceptions than is the case with laws relating to material things. And yet laws of this kind, which apply to a large majority of men, unquestionably exist, and when clearly defined are of great value as a guide in dealing with men. In developing these laws, accurate, carefully planned and executed experiments, extending through a term of years, have been made, similar in a general way to the experiments upon various other elements which have been referred to in this paper. Perhaps the most important law belonging to this class, in its relation to scientific management, is the effect which the task idea has upon the efficiency of the workman. This, in fact, has become such an important element of the mechanism of scientific management, that by a great number of people scientific management has come to be known as "task management."

There is absolutely nothing new in the task idea. Each one of us will remember that in his own case this idea was applied with good results in his school-boy days. No efficient teacher would think of giving a class of students an indefinite lesson to learn. Each day a definite, clear-cut task is set by the teacher before each scholar, stating that he must learn just so much of the subject; and it is only by this means that proper, systematic progress can be made by the students. The average boy would go very slowly if, instead of being given a task, he were told to do as much as he could. All of us are grown-up children, and it is equally true that the average workman will work with the greatest satisfaction, both to himself and to his employer, when he is given each day a definite task which he is to perform in a given time, and which constitutes a proper day's work for a good workman. This
furnishes the workman with a clear-cut standard, by which he can throughout the day measure his own progress, and the accomplishment of which affords him the greatest satisfaction.

The writer has described in other papers a series of experiments made upon workmen, which have resulted in demonstrating the fact that it is impossible, through any long period of time, to get work-men to work much harder than the average men around them, unless they are assured a large and a permanent increase in their pay. This series of experiments, however, also proved that plenty of workmen can be found who are willing to work at their best speed, provided they are given this liberal increase in wages. The workman must, however, be fully assured that this increase beyond the average is to be permanent. Our experiments have shown that the exact percentage of increase required to make a workman work at his highest speed depends upon the kind of work which the man is doing.

It is absolutely necessary, then, when workmen are daily given a task which calls for a high rate of speed on their part, that they should also be insured the necessary high rate of pay whenever they are
successful. This involves not only fixing for each man his daily task, but also paying him a large bonus, or premium, each time that he succeeds in doing his task in the given time. It is difficult to
appreciate in full measure the help which the proper use of these two elements is to the workman in elevating him to the highest standard of efficiency and speed in his trade, and then keeping him there, unless one has seen first the old plan and afterward the new tried upon the same man. And in fact until one has seen similar accurate experiments made upon various grades of workmen engaged in doing widely different types of work. The remarkable and almost uniformly good results from the correct application of the task and the bonus must be seen to be appreciated.

These two elements, the task and the bonus (which, as has been pointed out in previous papers, can be applied in several ways), constitute two of the most important elements of the mechanism of scientific management. They are especially important from the fact that they are, as it were, a climax, demanding before they can be used almost all of the other elements of the mechanism; such as a planning department, accurate time study, standardization of methods and implements, a routing system, the training of functional foremen or teachers, and in many cases instruction cards slide-rules, etc. (Referred to  in  more detail on page 129?.)

The necessity for systematically teaching workmen how to work to the best advantage has been several times referred to. It seems desirable, therefore, to explain in rather more detail how this teaching is done. In the case of a machine-shop which is managed under the modern system, detailed written instructions as to the best way of doing each piece of work are prepared in advance, by men in the planning department. These instructions represent the combined work of several men in the planning room, each of whom has his own specialty, or function. One of them, for instance, is a specialist on the proper speeds and cutting tools to be used. He uses the slide-rules which have been above described as an aid, to guide him in obtaining proper speeds, etc. Another man analyzes the best and quickest motions to be made by the workman in setting the work up in the machine and removing it, etc. Still a third, through the time-study records which have been accumulated, makes out a timetable giving the proper speed for doing each element of the work. The directions of all of these men, however, are written on a single instruction card, or sheet.

These men of necessity spend most of their time in the planning department, because they must be close to the records and data which they continually use in their work, and because this work requires the use of a desk and freedom from interruption. Human nature is such, however, that many of the workmen, if left to themselves, would pay but little attention to their written instructions. It is necessary, therefore, to provide teachers (called functional foremen) to see that the workmen both understand and carry out these written instructions.

Under functional management, the old-fashioned single foreman is superseded by eight different men, each one of whom has his own special duties, and these men, acting as the agents for the planning department (see paragraph 234 to 245 of the paper entitled "Shop Management"), are the expert teachers, who are at all times in the shop, helping, and directing the workmen. Being each one chosen for his knowledge and personal skill in his specialty, they are able not only to tell the
workman what he should do, but in case of necessity they do the work themselves in the presence of the workman, so as to show him not only the best but also the quickest methods.

One of these teachers (called the inspector) sees to it that he understands the drawings and instructions for doing the work. He teaches him how to do work of the right quality; how to make it fine and exact where it should be fine, and rough and quick where accuracy is not required,--the one being just as important for success as the other. The second teacher (the gang boss) shows him how to set up the job in his machine, and teaches him to make all of his personal motions in the quickest and best way. The third (the speed boss) sees that the machine is run at the best speed and that the proper tool is used in the particular way which will enable the machine to finish its product in the shortest possible time. In addition to the assistance given by these teachers, the workman receives orders and help from four other men; from the "repair boss" as to the adjustment, cleanliness, and general care of his machine, belting, etc.; from the "time clerk," as to everything relating to his pay and to proper written reports and returns; from the "route clerk," as to the order in which he does his work and as to the movement of the work from one part of the shop to another; and, in case a workman gets into any trouble with any of his various bosses, the "disciplinarian" interviews him.

It must be understood, of course, that all workmen engaged on the same kind of work do not require the same amount of individual teaching and attention from the functional foremen. The men who are new at a given operation naturally require far more teaching and watching than those who have been a long time at the same kind of jobs.

Now, when through all of this teaching and this minute instruction the work is apparently made so smooth and easy for the workman, the first impression is that this all tends to make him a mere automaton, a wooden man. As the workmen frequently say when they first come under this system, "Why, I am not allowed to think or move without some one interfering or doing it for me!" The same criticism and objection, however, can be raised against all other modern subdivision of labor. It does not follow, for example, that the modern surgeon is any more narrow or wooden a man than the early settler of this country. The frontiersman, however, had to be not only a surgeon, but also an
architect, house-builder, lumberman, farmer, soldier, and doctor, and he had to settle his law cases with a gun. You would hardly say that the life of the modern surgeon is any more narrowing, or that he is more of a wooden man than the frontiersman. The many problems to be met and solved by the surgeon are just as intricate and difficult and as developing and broadening in their way as were those of the frontiersman.

And it should be remembered that the training of the surgeon has been almost identical in type with the teaching and training which is given to the workman under scientific management. The surgeon, all through his early years, is under the closest supervision of more experienced men, who show him in the minutest way how each element of his work is best done. They provide him with the finest implements, each one of which has been the subject of special study and development, and then insist upon his using each of these implements in the very best way. All of this teaching, however, in no way narrows him. On the contrary he is quickly given the very best knowledge of his predecessors; and, provided (as he is, right from the start) with standard implements and methods which represent the best knowledge of the world up to date, he is able to use his own originality and ingenuity to make real additions to the world's knowledge, instead of reinventing things which are old. In a similar way the workman who is cooperating with his many teachers under scientific management has an opportunity to develop which is at least as good as and generally better than that which he had when the whole problem was "up to him" and he did his work entirely unaided.

If it were true that the workman would develop into a larger and finer man without all of this teaching, and without the help of the laws which have been formulated for doing his particular job, then it would follow that the young man who now comes to college to have the help of a teacher in mathematics, physics, chemistry, Latin, Greek, etc., would do better to study these things unaided and by himself. The only difference in the two cases is that students come to their teachers, while from the nature of the work done by the mechanic under scientific management, the teachers must go to him. What really happens is that, with the aid of the science which is invariably developed, and through the instructions from his teachers, each workman of a given intellectual capacity is enabled to do a much higher, more interesting, and finally more developing and more profitable kind of work than he was before able to do. The laborer who before was unable to do anything beyond, perhaps, shoveling and wheeling dirt from place to place, or carrying the work from one part of the shop to another, is in many cases taught to do the more elementary machinist's work, accompanied by the agreeable surroundings and the interesting variety and higher wages which go with the machinist's trade. The cheap machinist or helper, who before was able to run perhaps merely a drill press, is taught to do the more intricate and higher priced lathe and planer work, while the highly skilled and more intelligent machinists become functional foremen and teachers. And so on, right up the line.

Encourage Workmen to Suggest Improvements in Methods and Implements


It may seem that with scientific management there is not the same incentive for the workman to use his ingenuity in devising new and better methods of doing the work, as well as in improving his implements, that there is with the old type of management. It is true that with scientific management the workman is not allowed to use whatever implements and methods he sees fit in the daily practice of his work. Every encouragement, however, should be given him to suggest improvements, both in methods and in implements. And whenever a workman proposes an improvement, it should be the policy of the management to make a careful analysis of the new method, and if necessary conduct a series of experiments to determine accurately the relative merit of the new suggestion and of the old standard. And whenever the new method is found to be markedly superior to the old, it should be adopted as the standard for the whole establishment. The workman should be given the full credit for the improvement, and should be paid a cash premium as a reward for his ingenuity. In this way the true initiative of the workmen is better attained under scientific management than under the old
individual plan.

F.W. Taylor, Scientific Management

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F.W. Taylor Scientific Management - With Appropriate Sections

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Scientific Management in Its Essence - F.W. Taylor

Updated 9 July 2016,  4 August 2013

Sunday, July 3, 2016

Elaborate Planning Organization - Need and Utility - F.W. Taylor in Scientific Management



Continued from
8. Background for Development of Scientific Management -Midvale Steel Company Machine Shop



Elaborate Planning Organization - Need and Utility



All of this requires the kindly cooperation of the management, and involves a much more elaborate organization and system than the old-fashioned herding of men in large gangs. This organization consisted, in this case, of one set of men, who were engaged in the development of the science of laboring through time study, such as has been described above; another set of men, mostly skilled laborers themselves, who were teachers, and who helped and guided the men in their work; another set of tool-room men who provided them with the proper implements and kept them in perfect order, and another set of clerks who planned the work well in advance, moved the men with the least loss of time from one place to another, and properly recorded each man's earnings, etc. And this furnishes an elementary illustration of what has been referred to as cooperation between the management and the
workmen.

Elaborate Planning Organization


The question which naturally presents itself is whether an elaborate organization of this sort can be made to pay for itself; whether such an organization is not top-heavy. This question will best be answered by a statement of the results of the third year of working under this plan.


                                                         Old Plan                           New Plan Task Work
  The number of yard laborers
  was reduced from between         400 & 600                    down to about 140
  Average number of tons per
  man per day                                        16                                   59
  Average earnings per man
  per day                                             $1.15                               $1.88
  Average cost of handling a
  ton of 2240 lbs                                 $0.072                             $0.033

And in computing the low cost of $0.033 per ton, the office and tool-room expenses, and the wages of all labor superintendents, foremen, clerks, time-study men, etc., are included.

During this year the total saving of the new plan over the old amounted to $36,417.69, and during the six months following, when all of the work of the yard was on task work, the saving was at the rate of between $75,000 and $80,000 per year.

Perhaps the most important of all the results attained was the effect on the workmen themselves. A careful inquiry into the condition of these men developed the fact that out of the 140 workmen only two were said to be drinking men. This does not, of course, imply that many of them did not take an occasional drink. The fact is that a steady drinker would find it almost impossible to keep up with the pace which was set, so that they were practically all sober. Many, if not most of them, were saving money, and they all lived better than they had before. These men constituted the finest body of picked laborers that the writer has ever seen together, and they looked upon the men who were over them, their bosses and their teachers, as their very best friends; not as nigger drivers, forcing them to work extra hard for ordinary wages, but as friends who were teaching them and helping them to earn much higher wages than they had ever earned before.

It would have been absolutely impossible for any one to have stirred up strife between these men and their employers. And this presents a very simple though effective illustration of what is meant by the words "prosperity for the employee, coupled with prosperity for the employer," the two principal objects of management. It is evident also that this result has been brought about by the application of the four fundamental principles of scientific management.

As another illustration of the value of a scientific study of the motives which influence workmen in their daily work, the loss of ambition and initiative will be cited, which takes place in workmen when they are herded into gangs instead of being treated as separate individuals. A careful analysis had demonstrated the fact that when workmen are herded together in gangs, each man in the gang becomes far less efficient than when his personal ambition is stimulated; that when men work in gangs, their individual efficiency falls almost invariably down to or below the level of the worst man in the gang; and that they are all pulled down instead of being elevated by being herded together. For this reason a general order had been issued in the Bethlehem Steel Works that not more than four men were to be allowed to work in a labor gang without a special permit, signed by the General Superintendent of the works, this special permit to extend for one week only. It was arranged that as far as possible each laborer should be given a separate individual task. As there were about 5000 men at work in the establishment, the General Superintendent had so much to do that there was but little time left for signing these special permits.

After gang work had been by this means broken up, an unusually fine set of ore shovelers had been developed, through careful selection and individual, scientific training. Each of these men was given a separate car to unload each day, and his wages depended upon his own personal work. The man who unloaded the largest amount of ore was paid the highest wages, and an unusual opportunity came for demonstrating the importance of individualizing each workman. Much of this ore came from the Lake Superior region, and the same ore was delivered both in Pittsburgh and in Bethlehem in exactly similar cars. There was a shortage of ore handlers in Pittsburgh, and hearing of the fine gang of laborers that had been developed at Bethlehem, one of the Pittsburgh steel works sent an agent to hire the Bethlehem men. The Pittsburgh men offered 4 9/10 cents a ton for unloading exactly the same ore, with the same shovels, from the same cars, that were unloaded in Bethlehem for 3 2/10 cents a ton. After carefully considering this situation, it was decided that it would be unwise to pay more than 3 2/10 cents per ton for unloading the Bethlehem cars, because, at this rate, the Bethlehem laborers were earning a little over $1.85 per man per day, and this price was 60 per cent more than the ruling rate of wages around Bethlehem.

A long series of experiments, coupled with close observation, had demonstrated the fact that when workmen of this caliber are given a carefully measured task, which calls for a big day's work on their part, and that when in return for this extra effort they are paid wages up to 60 per cent beyond the wages usually paid, that this increase in wages tends to make them not only more thrifty but better men in every way; that they live rather better, begin to save money, become more sober, and work more steadily. When, on the other hand, they receive much more than a 60 per cent increase in wages, many of them will work irregularly and tend to become more or less shiftless, extravagant, and dissipated. Our experiments showed, in other words, that it does not do for most men to get rich too fast.

After deciding, for this reason, not to raise the wages of our ore handlers, these men were brought into the office one at a time, and talked to somewhat as follows:

"Now, Patrick, you have proved to us that you are a high-priced man. You have been earning every day a little more than $1.85, and you are just the sort of man that we want to have in our ore-shoveling gang. A man has come here from Pittsburgh, ho is offering 4 9/10 cents per ton for handling ore while we can pay only 3 9/10 cents per ton. I think, therefore, that you had better apply to this man for a job. Of course, you know we are very sorry to have you leave us, but you have proved yourself a high-priced man, and we are very glad to see you get this chance of earning more money. Just remember, however, that at any time in the future, when you get out of a job, you can always come right back to us. There will always be a job for a high-priced man like you in our gang here."

Almost all of the ore handlers took this advice, and went to Pittsburgh, but in about six weeks most of them were again back in Bethlehem unloading ore at the old rate of 3 2/10 cents a ton. The writer had the following talk with one of these men after he had returned:

"Patrick, what are you doing back here? I thought we had gotten rid of you."

"'Well, Sir, I'll tell you how it was. When we got out there Jimmy and I were put on to a car with eight other men. We started to shovel the ore out just the same as we do here. After about half an hour I saw a little devil alongside of me doing pretty near nothing, so I said to him, 'Why don't you go to work? Unless we get the ore out of this car we won't get any money on pay-day.' He turned to me and said, 'Who in ------ are you?'

"'Well,' I said, 'that's none of your business'; and the little devil stood up to me and said, 'You'll be minding your own business, or I'll throw you off this car!' 'Well, I could have spit on him and drowned him, but the rest of the men put down their shovels and looked as if they were going to back him up; so I went round to Jimmy and said (so that the whole gang could hear it), 'Now, Jimmy, you and I will throw a shovel full whenever this little devil throws one, and not another shovel full.' So we watched him, and only shoveled when he shoveled.

"When pay-day came around, though, we had less money than we got here at Bethlehem. After that Jimmy and I went in to the boss, and asked him for a car to ourselves, the same as we got at Bethlehem, but he told us to mind our own business. And when another pay-day came around we had less money than we got here at Bethlehem, so Jimmy and I got the gang together and brought them all back here to work again."

When working each man for himself, these men were able to earn higher wages at 3 2/10 cents a ton than they could earn when they were paid 4 9/10 cents a ton on gang work; and this again shows the great gain which results from working according to even the most elementary of scientific principles. But it also shows that in the application of the most elementary principles it is necessary for the management to do their share of the work in cooperating with the workmen. The Pittsburgh managers knew just how the results had been attained at Bethlehem, but they were unwilling to go to the small trouble and expense required to plan ahead and assign a separate car to each shoveler, and then keep an individual record of each man's work, and pay him just what he had earned.

F.W. Taylor, Scientific Management

All Chapters
F.W. Taylor Scientific Management - With Appropriate Sections

Next Chapter
10. Illustrations of Success of Scientific Management - Bricklaying Improvement by Gilbreth

Updated
6 July 2016, 4 August 2013

Tuesday, June 28, 2016

July First Week - Industrial Engineering Knowledge Revision





Scientific Management of Taylor


Taylor's book is a must reading for industrial engineers. The book emphasizes the development of scientific laws relating to use of machines, tools, related resources and men. This is development of science. Once science is developed, industrial engineers use that science to develop productive machines, productivity improvement devices and methods and that improve productivity.  Taylor also examines some management methods that are sources for low productivity. He suggests management methods that improve productivity. Then Taylor, discusses issues relating to implementing productivity improvement methods. Industrial engineers have no other comparable book on philosophy in their discipline. Hence it has to be read and reread till a new book is authored by a modern day Taylor by incorporating all that has happened in the discipline over the last 100 to 120 years.

First Week

1 July


1. Importance of National Efficiency

2. Foundation of Scientific Management

2 July 


3. Soldiering and Its Causes

4. Underlying Philosophy for the Old Systems of Management

3 July


5. Scientific Management - Introduction

6. THE PRINCIPLES OF SCIENTIFIC MANAGEMENT

4 July


7. Illustrations of Success of Scientific Management - - Pig Iron Handling

8. Background for Development of Scientific Management - -Midvale Steel Company Machine Shop

5 July


9. Elaborate Planning Organization - Need and Utility

10. Illustrations of Success of Scientific Management - Bricklaying Improvement by Gilbreth


Your comments are welcome on each article



One Year Industrial Engineering Knowledge Revision Plan

January - February - March - April - May - June

July - August - September - October - November - December