Chapter C: E. Knoeppel (3)

With the object in view of doing away with the mistakes that were continually being made in the operation of the time─book system, the check system was introduced. This was probably the first attempt at automatic time recording.

Under the check system, each man is assigned a number and given a brass check on which his number is stamped. In entering the works the men are required to pass in front of the time─keeper's office and to hand in their checks. The time─keeper has, in his office, a large board with hooks numbered to correspond with the check numbers. As the checks are handed in they are hung in their proper places on this board. The checks on the board show what men are in the works, and from them the necessary entries are made in the time books.

When the men pass out at noon their checks are handed to them. Every man must pass out and take his check; otherwise he will not receive credit for the half─day's time.

The system does not prove entirely satisfactory for several reasons. It is not exact, for no accurate record of the time a man enters is possible. Usually the time─keeper's window is closed at starting time and opened fifteen minutes later to take care of the late arrivals. Thus the man who is one minute late pays the same penalty in lost time as the man who comes in fifteen minutes after the whistle blows. As a natural result, when a man finds that he cannot reach the works on time he takes the full fifteen minutes.

While the handing in of a check furnishes reasonable proof that the man has entered the works, it furnishes no proof that he is at his work. Many a man has turned in his check in the morning, left the works by another exit, returned a few minutes before noon, received his check and full pay for the half day.

In some manufacturing plants where the check system is still used, this difficulty has been overcome to a certain extent. The operation of the system is reversed, the men receiving their checks from the time─keeper as they enter the works. In the shops there are check boards on which the men hang their checks. These boards are hinged and provided with locks, the keys being carried by the foremen. Five minutes after starting time the boards are locked, and late arrivals are required to turn in their checks to the foreman who makes records of the time of arrival. Once during each working period, the time─keeper makes the rounds of the shops and takes the time records in his time book. At the quitting hour the boards are unlocked, the men take their checks as they pass out, and turn them in at the time─keeper's office.

=9. Time Clocks.= The modern system of time recording makes use of a time clock or mechanical recorder. Instead of trusting to the accuracy of a time─keeper, or depending on the workmen to keep records of their own time, the modern recorder automatically records the time of arrival and departure of every employe.

Mechanical time recorders, or time clocks, are of two general types, making two classes of records. One type records the time of one employe on a single card or sheet; the other makes a record of the time of several employes on the same sheet. For recording the total time of employes, both types are used, and certain advantages are claimed for each.

The records of the first type, most generally used, have a card for each employe on which a record is made of his time for an entire week or pay period. In operation, this system is very simple.

At each side of the clock is a card rack, as shown in Fig. 5. One of these is an "out" rack, the other an "in" rack. At the beginning of each week or pay period, cards are placed in the numbered pockets of the out rack, which is nearest the entrance──one card for each man. These cards bear the numbers or names of the men, or both if desired.

When the employe enters, he takes his card from the out rack, places it in the slot of the clock, makes an exact record of the time of arrival by moving a lever, and places the card in the proper numbered pocket in the in rack. When he leaves, the operation is repeated, this time the card being deposited in the out rack. In the meantime the recording device in the clock has been shifted so that it records the leaving time in the proper column on the card.

The form of record made by one of the best known clocks of this type is shown in Fig. 6. It will be noted that the recording device prints the letter representing the day of the week in front of each record──out or in. Another feature is the dash under the afternoon registrations; a glance shows whether the registration was made at, for instance, 6 o'clock in the morning or afternoon.

This form requires an exceptionally small number of entries to figure the time for the week. In the outside column, at the right, is entered the time lost or the overtime for each day. At the end of the week, the net total of this column is added to or subtracted from the total hours representing a full week, which gives the total number of hours actually worked.

Clocks of the second type record the time of several employes on one sheet, the record being made for one day, or for any number of days up to a week. Like the card machine, the record shows the in and out time, both forenoon and afternoon.

A recorder of this type is illustrated by Fig. 7. To register the time of arrival or departure, the employe places a key, bearing his number, in the clock, and gives it one turn. A bell rings, indicating that the hour and minute of the day have been printed on the record inside the register.

The form of record made by machines of this type is shown in Fig. 8. The records of all employes appear in numerical order on one sheet, with the various _ins_ and _outs_ in their proper columns. The record is inside the clock, under lock and key, and when removed can be used as a pay─roll sheet.

The fact that the complete record is on one sheet, is one of the advantages claimed for this type of recorders. On the other hand, an advantage is claimed for the card machine in the fact that the cards can be used for other purposes, such as for cost records.

PRODUCTION TIME RECORDS

=10.= All records of time on individual jobs or operations may be termed _production time records_, since the ultimate object of keeping such records is to determine the cost of production. To the manufacturer, these records are fully as important as those showing the total time worked by each employe. Without such records, a satisfactory cost system is impossible.

When the importance of obtaining costs of production──knowing what it costs to manufacture a given article──began to receive consideration, systems for recording the time spent by the worker on each job were attempted. There being no other method available, the records were at first made on cards or slips by the employes themselves. In all essential features the same system is still largely used; nearly all cost systems require that the employe keep a record of the time worked on each job.

=11. Time Record on Work Orders.= One method of keeping time on individual jobs is to make the record on the work order. When a job is assigned to a workman, a written order is issued to him. This order, Fig. 9, instructs him to do certain work and gives him authority to draw the necessary material, provided the material is not issued with the order. He is instructed to report his time on the order, and sometimes to report the material used.

This form can be used successfully only when one man does the entire job. It is used principally for repair jobs.

=12. Daily Time Card.= One of the methods of obtaining production time records is to use daily time cards. Each employe is supplied with cards, similar in form to Fig. 10, on which he is expected to record his time for an entire day.

At the top, the card bears the name and number of the employe, and the date. Below the heading, a form is arranged for a record of the order numbers on which he is employed, a description of the work done (usually the name of the operation), the time of starting and finishing, and total time worked on each job.

In some classes of operations it is necessary, if accurate cost records are to be obtained, to keep a record of performance of the machine, as well as of the man. A form for a record of this kind, covering the operation for a day, is illustrated by Fig. 11. This form includes the number of the machine and a record of the number of pieces produced. Such a record is used for machine operations when a large number of similar pieces are operated on by a single machine. The time record is made when one order number is finished and a new one started. The form shown provides for an extension of rates and amounts, the extensions being made in the cost department.

Fig. 12 is a card for recording a day's operations, arranged on somewhat different lines. This card is a series of perforated coupons, one for each job on which the employe works. When a job is finished, the record is made, the coupon detached and turned in. At the close of the day the top of the card, with all unused coupons attached, is turned in.

All of these forms for recording the time of an employe for an entire day are handed to the foreman, who turns them in to the cost department. Here, the time cards are compared with the clock records to find if all of the time for which an employe is paid has been accounted for. The time records for individual jobs are then transferred to the cost records. For the latter purpose, the coupons can be distributed by order numbers. This makes it convenient to retain all time coupons until the job is finished, when the amounts can be transferred to the cost records with a considerable saving of labor in the cost department.

There is one serious objection to any form of time card designed for a day's record. Too much depends upon the accuracy and clerical ability of the employe. The average factory or shop operative has had no experience in keeping records. He does not appreciate the importance of the time records he is expected to keep, and, naturally, becomes careless. Knowing that a record is expected, his card will show full time, but the distribution of that time to separate jobs is not accurate. Frequently, he waits until the close of the day and makes as close a guess as possible as to the time worked on each job. His failure to keep accurate records is not due to unwillingness, but to his lack of training in such work.

Exceptions are found, as a matter of course, and in some industries the general character of the operatives employed is such as to practically insure intelligent record keeping. As a rule, however, it is unwise to expect the factory employe to keep accurate records.

=13. Job Time Cards.= A method of time keeping which is an advance over the daily time card, is the use of a separate card for each job. With this method, accuracy of the records can be practically insured and the employe relieved of much of the clerical labor.

To attain satisfactory results, it is necessary to operate this system along somewhat different lines than that described for the daily time card system. Instead of issuing cards for the entire day, the workman should be given a new card with each new job on which he works, and not until he has completed the job last worked on. The time must be recorded and the card turned in to the foreman on completion of each job.

It is the duty of the foreman to keep his men supplied with work, and to have at all times a job ahead. The workmen, knowing that a record of his time on each job is kept and compared with the clock record, will naturally insist on having a new job card when each old one is turned in. If no job is ready, it will be necessary for the foreman to issue an _idle_ or _non─productive_ card──a condition which he will strive to avoid──all such time becoming a direct expense charge against his department.

To relieve the employe of clerical labor, a card, similar in form to Fig. 13, is used with quite satisfactory results. The special feature of this card is the provision made for obtaining a record of time. Below the heading there is a form representing the time of day, each hour being divided into ten minute periods, and the whole divided between forenoon and afternoon.

When a new job is started, the workman makes the record by checking the time in the proper space. On completion of the job, he makes a similar check mark in the space that indicates the finishing time. The exact time is computed in the cost department. To illustrate: Suppose a job is started at 7 A. M. and is done in 6½ hours. The time will be checked at 7 A. M. and again, if an hour is allowed for lunch, at 2:30 P. M. This really shows 7½ hours elapsed time, but in the cost department, the lunch hour will be allowed for, and the computed time will be correct.

Another form of job card, intended for use where jobs require more than one day, is shown in Fig. 14. With this card, it is intended that the starting and finishing time shall be entered in the ordinary way, and the name of the operation checked.

=14. Mechanical Time Recorders.= For the same reasons that they are best for making records of total time, for pay─roll purposes, mechanical time recorders are best for obtaining production time records. Whether the responsibility of making the record rests on the workman or a clerk, it is always better to have the actual recording done automatically whenever it is possible to do so.

While the time recorders used for keeping total time are also used for obtaining production time records, there are certain advantages in using recorders of slightly different types. Manufacturers have made great progress and are now supplying machines which answer every requirement.

One type of recorder designed for production time records is shown in Fig. 15. This outfit includes, in addition to the recorder, a rack for jobs ahead and jobs started, a rack for finished jobs, and a distribution rack. The first rack contains pockets of the right size to hold time cards or tickets. These pockets are numbered to correspond with the men's numbers, two pockets being provided for each man, one for jobs ahead and one for jobs started. The rack for finished jobs is divided into compartments bearing the men's numbers, with slots through which the cards are inserted. The distribution rack is divided into compartments numbered for the different jobs.

The recorder and card racks are placed near the foreman's desk, which should be at a central point in the department. The foreman prepares cards for the different employes and places a card for the next job in the _jobs ahead_ pocket. The workman, when starting to work, takes the card for the next job, records the starting time, and places the card in the _jobs started_ pocket. When the job is finished he again records the time, on the same card, and places the card in the compartment bearing his number in the _finished jobs_ rack. At night, if he has an unfinished job, he records the time, the same as for a finished job, and either turns in the card to the foreman or places it in a box kept for suspended jobs. The foreman then makes out new cards and places them in the _jobs ahead_ rack, while the suspended card is placed in the _finished jobs_ rack.

Every morning all cards of the previous day are taken from the _finished jobs_ rack, the time recorded on each man's cards is computed and compared with the record of the total time recorder, and the cards distributed by job numbers in the distribution rack. This checks the job time with the pay─roll time, and permits of leaving the cards in the distribution rack until the entire job is finished. The cards are then taken to the cost department and the time records distributed on the cost sheet.

One form of card used with this type of recorder is shown in Fig. 16. One card is used for each job on which a man works. It will be noted that the time is recorded in decimals. Instead of the usual 12 hours, the recording wheel is divided into 24─hour periods, or if desired, into 23 hours, automatically eliminating the noon hour. The 23─hour wheel prints 12 at noon and again at one o'clock, 13 at two o'clock, etc. At 3:30 P. M., for instance, the clock would record 14.50, meaning 14½ hours. On the card illustrated, the record shows the job to have been started at 8.08 and finished at 11.40, the elapsed time being 3.32 hours.

A clock of similar type accommodates a sheet of any size, and provides for as many separate time records on the same sheet as may be desired. A sheet may record the time of a single employe for an entire day and show the exact time worked on each job. Or, in some industries, the card may be made for a job and arranged to accumulate the time of all employes working on the job. Fig. 17 shows how several time sheets of this class can be bound together, making a daily time and pay sheet for each employe. From this sheet the time is distributed to the cost sheets.

Still another type of time recorder, which offers certain distinct advantages, is shown in Fig. 18. This machine is used to obtain a time record for each employe on each separate job or operation.

The distinctive feature of this machine is that it records the elapsed time. When a man commences work on a new job, he places his card in the machine and by moving a lever registers the starting time. When the job is finished, he again places the card in the machine, this time moving a second lever, and registers the exact time that he has worked on the job. The advantage is apparent. With an ordinary time stamp printing the starting and finishing time, it is necessary for a clerk to mentally compute the elapsed time. With this machine the elapsed time is mechanically computed and printed, saving the time of the clerks and doing away with all possibility of clerical errors.

Fig. 19 illustrates the form of record made by this machine. The record shows that workman No. 38 commenced work on job No. 530 at 9:45 A. M., that he was employed on this job 2─8/10 hours, and that the operation was milling.

The machine is made to register either hours and minutes, or hours and tenths of hours. For cost─keeping purposes the latter is preferred for the reason that it is much easier to figure time at a given rate in tenths.

A form of card, without the record, is shown in Fig. 20. The card can be of any size desired, the only requirement being a blank space for the time record in the upper left─hand corner.

As with other recorders, one of these machines should be located at a central point in each department. It is advisable to provide a card rack with compartments bearing the employe's numbers, and to place cards for jobs ahead in these compartments. The cards for the day are first sorted by employe's numbers to verify the clock record, and then by job numbers for the use of the cost department.

Another elapsed time recorder, which was placed on the market after the above was put in type, but before this book went to press, is shown in Fig. 21, the form of record being shown in Fig. 22.

The device is operated electrically, the impulses being furnished by a master clock. This may be located anywhere in the building, preferably in the office, as it will be less affected by vibration and dust. To the master clock is also fitted the 24─hour elimination or cut─out wheel described later. This clock transmits electric impulses each minute all through the building to the various elapsed time mechanisms. Thus all the machines are exactly the same time and cards may be registered in on one machine and out on any other and correct results obtained.

The mechanism is about nine inches square and is enclosed in a dust proof iron case. It may be placed on a work bench, on a pedestal, or it may be sunk flush with the top of the bench or desk. The flat cover has two openings or slots for the insertion of the cards. One opening is marked "in" for the first record of a job, the other "out" for registering when the job is completed. There is also an aperture in the cover through which may be seen a series of indicating wheels showing exactly the time of day. There is only one handle to be operated and, therefore, no confusion can occur in the mind of the operator as to which handle to pull.

The cards used in the machine may be of any length desired but can only be of one width, 4¼ inches. In registering in, the card is placed in the front or starting slot, and the lever pulled over. This prints the starting time at the top of the card in the space to the left. At the same time four small holes are punched in the card which individualize the record. After a job is completed the card is placed in the rear or stopping slot, the lever pulled over once more, and the stopping time and actual elapsed time are both printed on the card by one pull of the handle, thus enabling anyone to compare the two records and prove the accuracy of the machine for every record.

One of the salient features connected with this device is its ability to compute only the actual time worked in the factory irrespective of the times of registration. That is to say, in a factory working ten hours a day from seven to twelve and one to six the elapsed time will only be computed during these hours. Any registrations made before seven o'clock will not begin to count elapsed time until that hour, and the computation of elapsed time automatically stops at noon to be resumed at exactly one o'clock, and then continues until quitting time at night, when again it stops automatically. The clock movement, however, does not stop, but always shows the correct time exactly the same as the master clock, and is entirely unaffected by the elimination of the non─working hours in figuring the elapsed time. The machine can also be set to record overtime at night if so desired.

In case work on a given job is not completed on the day it is begun, it is not necessary to ring out on the elapsed time machine until the job is completed as the machine computes up to 100 hours. A job beginning on Monday and running through the week until Saturday night, when it is finished, may be registered on one card, or even for a longer period up to 100 hours.

The elimination or cut─out wheel referred to as being a part of the master clock, is responsible for this wonderful piece of work. The wheel makes one revolution in twenty─four hours and is graduated in fifteen minute divisions for the purpose of setting the contact breakers. The contact breakers are bits of hard rubber which are fastened around the rim of the wheel, and may be moved about at the will of the custodian of the apparatus by simply loosening the set screw. These blocks are set on the starting and stopping time and when they pass the contact breakers the electrical circuit is broken, and the computing device started or stopped as the case may be.

=15. Cumulative Time Records.= In some factories and shops, the work is of such nature that economy results if the work order and the time record follows the job through all of the operations. For example, hosiery and underwear go through the factory in dozen lots; in a shoe factory a lot of shoes is kept together until every operation is finished; in a harness factory, a bridle goes through all operations on one work order; in a machine shop, one or more rough castings may pass through several operations in the process of converting them into finished parts.

When these conditions exist, it is practical to attach a time card to the work, and to accumulate the time of all employes for the entire job. At the same time, individual time records are obtained.

A form to be used with the mechanical time recorder, Fig. 18, is shown in Fig. 23. This form consists of the usual work order to which is attached a series of coupons, perforated for easy removal. Each coupon is of the right size to accommodate the time record, and particulars as to the order number, operation number, man's number, and number of pieces.

The man who has the first operation enters his number and records his starting time on the first coupon. When the operation is finished, the time employed is recorded, the coupon is detached, and the job goes forward to the next operator. If the operation is not finished at the close of the day, the time record is made and the next coupon used by the same operator.

Each day, all of the detached coupons are sent to the cost department, where they serve several purposes. They are first sorted by employes' numbers, to compare the time reported with the clock record; then sorted by job numbers, to obtain time records for each job. From the coupons, all necessary information is obtained for a record of jobs in process, showing just where each job is at all times.

Another form for a cumulative, as well as an individual time record, is shown in Fig. 24. This card is for use where no time recorders are provided. Each employe records his time, and, when the last operation is finished, the card goes to the cost department. If desired, this card might be made with detachable coupons for the different operations.

PIECE─WORK RECORDS

=16.= Where piece─rate or premium wage systems are in effect, is it necessary to have accurate records of production, since the pay of the worker is governed by the number of units of production. It has already been stated, that to obtain the exact cost per unit of production, time records must be kept on piece work. It is not, however, absolutely necessary that the time be recorded for each separate job or unit of production. The necessary requirement is that the production records shall be so kept that they can be checked as to time──that the time required for a given number of units of production can be obtained, or that the units of production during a stated time can be definitely known.

Piece rates are applied to many distinct classes of work, each of which necessitates a slightly different system of records. One of the industries in which piece rates are largely used, is the manufacture of garments of different classes. In this industry, each garment or lot of garments passes through several operations, each operation being performed by a different operator. Since practically all operations are on a piece─rate basis, it is necessary to obtain a record of the name or number of each operator.

A form for a record of operations in an underwear mill is shown in Fig. 25. This is in the form of a shipping tag with particulars of the order at the top, followed by a list of the operations. As fast as the goods are cut, they are tied in bundles of one dozen garments. The tag is then attached, the cutters' names or numbers are entered on the lines opposite their operations, and the bundle is delivered to a storeroom located conveniently to the machines.

In the mill where this particular system is in operation, each operator delivers her work to the storeroom and receives more work as needed──always writing her name on the tag. When the work is received in the storeroom, a clerk records the last operation on the operator's time card, Fig. 26. One of these cards is used for each operator and accommodates the record of work for an entire week. Provision is made in the column at the left for a record of the kind of work, while the record of dozens finished each day is shown in the proper daily columns. At the end of the week, when extensions have been made, this card shows the amount of wages due, the different kinds of work done, and the quantities finished. In connection with this, the usual clock record of total time is kept, and a comparison of the piece work and clock records will show whether or not the operator is maintaining standard time on the different classes of work.

In the manufacture of certain classes of cans, some of the operations are paid for on a piece─rate basis; but payment is made on the basis of the production of a crew. The operation of crimping tin ends on certain cans, requires a crimper and several helpers, the latter preparing the cans for the operation. For this operation, the pay of all members of the crew is based on the number of cans finished; that is, if the number finished by a crew consisting of one crimper and four helpers is 2,000, the crimper will be paid for that number, while the helpers will each be paid for 500. The form used for a record of production on this operation is shown in Fig. 27. This is the assembled record, the individual time records being made mechanically on a card, Fig. 28.

On the operation above referred to, the speed of the helpers is limited to the speed of the machine, but if three helpers instead of four can do the work, the pay of each will be increased correspondingly. In the operations handled by crews, there is nothing to limit production. The result is that each member of the crew is obliged to maintain the pace set by the most speedy member, which reduces the cost of production and enables all members of the crew to earn a higher average wage.

A form of piece─work record, used in a factory where employes are expected to keep their own time, is shown in Fig. 29. This ticket is filled in by the employe, _O. K.'d_ by the foreman after inspection of the work, and forwarded to the cost department. All unfinished piece work is reported on the form shown in Fig. 30. This report enables the cost department to determine the actual time of all piece─work operations.

Before piece rates can be established for new work, it is necessary to ascertain the average time required for the different operations. This necessitates a very accurate record of production of employes working on day wage rates, and the record must represent the average rate of production of all employes, rather than the rate maintained by a few of the most skillful. A form used in one factory for such a record is shown in Fig. 31. When new work is started, one of these cards is filled in for each employe assigned to the work, and a record kept of each operation. When the records have been kept for a sufficient length of time to obtain an average, the records of all employes for the same operation are combined and, on the average thus obtained, the piece rates are established.

PAYING EMPLOYES

=17.= The time records of all employes, no matter how kept, must be assembled for the purpose of making up the pay─roll. Special forms of time sheets or pay─roll records are designed to meet the requirements of different classes of business. Several such forms are shown in other papers in this series; others are illustrated herein.

A conventional form of time sheet is shown in Fig. 32. The names are grouped on this sheet by departments, and opposite each man's name is his number. The daily time records are kept for a period of one week, then totaled, and the amount of wages extended in the last column.

Fig. 33 shows a form of time sheet intended for a tabulation of both the clock record and job time. The bringing together of the total time records (as shown by the clock) and the production time records (as shown by the job time cards) is of very great importance in connection with any system of cost accounting. One must be checked against the other, for unless all of the time for which the employe is paid is accounted for in the cost records, cost figures will be incorrect.

If the two records do not agree, even though the employe is paid for the time shown by his clock record, the discrepancy should be adjusted. Theoretically, every minute of a man's time should be accounted for by his time cards and, when conditions permit, he should be paid only for the time so accounted for. This rule should not be so rigidly enforced, however, as to encourage a man in padding the time on individual jobs to reconcile the total for the day with his clock record; it is far better to have a few minutes unaccounted for. When a foreman fails to have work ready, he should give the workman an idle or indirect labor card, but the man should be impressed with the fact that accurate records are kept of his time on every job, and that all lost time must be either reported on an indirect labor card or left unreported.

The cost of time shown on indirect labor cards, and of all time unaccounted for, should be charged to the department under some such caption as _Department Waste_, never to the specific jobs on which the man has worked. Time wasted between jobs or on account of a breakdown or other unusual occurrence does not affect the legitimate time in which a particular job should be done. It is rather a legitimate charge against the efficiency of the department, and the aggregate of all such inefficiency charges should be applied as an added burden to all of the jobs in the department during the month.

Costs obtained, after adding this inefficiency burden, may be considered the actual costs for the month, but cannot be safely used as standard. Standard costs are the costs obtained under perfect conditions──when the department, shop, or plant is running full time at full capacity; when all of the time of every employe is accounted for by his job time cards; when there is no wasted time or unusual expense. While standard costs may not be attained──probably never will be──this should be the goal, to reach which, managers, engineers, superintendents, foremen, and workmen should strive constantly. As a matter of record, therefore, to show what obstacles must be overcome before the ideal is reached, the inefficiency burden should be added as a separate item after all other items of cost have been computed.

As an example of the effect of the application of this principle of considering efficiency in figuring costs, we will consider an imaginary case. We will suppose that, in a certain month, the pay─roll for direct or productive labor in our shop is $4,000; that 40 completed machines──identical in every respect──are produced; that every minute of the time of every productive employe is accounted for by his productive job cards. This gives a labor cost of $100 per machine. During the next month the same men are employed at the same cost──$4,000──but owing to an unusual breakdown, 2½% of the time of these men is wasted; they are idle while the breakdown is repaired, and but 39 machines are produced.

If the $4,000 wages paid is charged as direct or productive labor it gives a cost of $102.56 each──an increase in cost with nothing in the figures that shows the cause. If, however, an inefficiency charge of $100 (2½% of $4,000) or $2.56 per machine is added as a separate item, it is seen at once that here is an unusual item of expense. The amount ($2.56 per machine) is included in the final costs, but in the right place; there is no cause for confusion on account of an apparent, but not real, increase in the productive labor cost. If the cost of $100 per machine obtained during the preceding month is standard for productive labor, it still is the attainable standard; the fact of an unusual expense has in no way affected the legitimate cost of productive labor.

Another great advantage in presenting the labor cost statistics in this manner is that inefficiencies are shown in an understandable form. The fact that indirect labor is increased, say 2%, might occasion no comment; but if an inefficiency charge of even 1% is shown, it calls for immediate investigation.

The establishment of standard or efficiency labor costs means predetermined costs. This is a radical departure from established custom; on its face, contrary to recognized accounting practice; in results, wonderfully efficient. To determine standards in men, material, and machines is a function of the engineer; the recording of facts──the actual cost──is the function of the comptroller or accountant. The two must work together. Properly prepared accounts, showing actual costs with the items that make them segregated, show the engineer how far short of possible standards the plant is running──the extent of the inefficiency.

RECORDS OF EMPLOYES

=18.= In connection with the different time records designed to record hours of service and units of production, there should be a personal record of employes; and the more intimately personal it can be made, the more valuable will the record become.

Napoleon, it has been claimed, could call by name every man in his armies, but, however great value may have been placed on such a memory feat, the manager of the present─day great business organization, who can call by name each of his employes, is an exception.

It is not necessary that he should do so, for, as business is now specialized and departmentized, he needs to know only the results of the labor of those employes. By this is not meant that he should not take an interest in the personality of his organization; on the contrary, he should be very much interested, but he can be relieved from burdening his mind with details by means of simple records.

Somewhere in the office there should be as complete a personal record of each employe as is possible to obtain. This record should include applicants, employes, and past employes, and it should be the duty of some person or department to maintain the record. In the smaller establishments, employes' records should be in charge of the chief accountant, office manager, or superintendent; in larger establishments, the employment department will keep these records.

=19. Application Card.= Fig. 34 shows a simple form of application card to be filled out for every applicant who is not hired immediately, but whose application receives favorable consideration. This card is headed with the name of the position applied for, or the trade of the applicant. Following this is the name and address, and such information about the applicant as may be considered of special value.

These cards are filed in a regulation card index drawer and indexed under the trade or position applied for. The index cards are headed with the names of the trades employed, the departments, or such other designations as may be best suited to the business. For instance, one index might be headed _Machinists_. Back of this index the cards of all applicants for positions as machinists will be filed in alphabetical order.

A form of application card which provides for more detailed information along certain lines is shown in Fig. 35. While this card is headed with the name of the employe, it is filed under the trade, as described for Fig. 34.

The value of these application records is apparent. When a man is needed, reference to this file will show who has applied and assist in getting a man quickly.

=20. Employe's Card.= One form of employe's card is illustrated by Fig. 36. This card is filed as soon as a man is engaged. At the head of the card is the name of the employe, the department to which he is assigned, and his clock number. Following this is the address and other essential information. Space is also provided for a record of changes in wages, including both dates and rates. At the bottom of the card, space is left for notes on the record of the employe, which can be continued on the back of the card. The final record on this card is the date the employe quits, or is discharged, with reasons.

Another form of employe's card is shown in Fig. 37. The special feature of this card is that, for each increase in wages, the reason and name of the person granting the increase is noted.

The cards of present employes are filed alphabetically by name. However, in very large establishments, it is advisable to subdivide them by departments and arrange the cards of all employes in the department in alphabetical order. It is seldom necessary to arrange the cards by trades for the reason that the names are, as a rule, so classified on the pay─roll records.

The employe's record proves valuable in many ways. If, for any reason, an employe is away from his work, and it is desired to communicate with him, the address is quickly found; in case of an accident, resulting in injury to the employe, the address is very convenient. Again, when a man is wanted for a position a little above that occupied by the average employe, it is best, if possible, to select a man from the present employes. Whether the position be that of a gang boss, a foreman, or the head of a department, a condensed record of past performance, supplementing the personal observations of his superiors, will be found of considerable assistance in selecting the right man. Many other advantages might be named, but those given should be sufficient to demonstrate the advisability of maintaining these records.

=21. Past Employe's Card.= In some respects, a record of past employes is as important as the record of applicants and present employes. When more men are needed, it is natural to suppose that past employes, whose services were satisfactory, will be specially desirable. On the contrary, a past employe who has been discharged, or whose work was unsatisfactory, is unlikely to be desirable.

Any record that will show who the past employes are, why they left, and their past record, will therefore be of value. Such a record is provided by the card illustrated in Fig. 38. When an employe leaves, for any reason, one of these cards is filled in and filed alphabetically. At the same time, the employe's card is transferred to another section of the file, and indexed under the name of the department, or the trade or class of employment.

These cards furnish a very complete record of employes, past, present, and future. If the number is small, all can be filed in one drawer, with separate indexes to segregate them into classes. Or a large cabinet, with one or more drawers for each class of records, may be required, but, in any event, the records are complete.

MANUFACTURING ORDERS

=22.= One of the principles that must be kept in mind when installing a system of any description is that provision must be made for recording every detail of the work intended to be cared for by the system. While this holds true in respect to the systems in every other department of a business, it is of special importance in the manufacturing branch. Accurate costs are out of the question unless every detail of the operations of the plant is properly recorded.

Experience has shown but one method that will insure accurate records, and that method is to manufacture all goods on definite orders and to charge all work not applied to a specific manufacturing order, to expense or operating accounts. The receipt of an order to manufacture before starting the work, is of the same importance to the superintendent as that the commercial department shall receive an order from the customer before shipping goods.

Few managers will accept verbal orders for the manufacture of expensive goods, without asking for a confirmation in writing. When those orders are transmitted to the manufacturing department, it is just as important that they shall be in writing.

Manufacturing orders are of two classes: general orders to the superintendent to manufacture a certain quantity of goods, and specific orders to shop foremen to do some part of the work. For convenience, these orders will be referred to in this discussion as _Production_ orders and _Shop_ orders.

=23. Production Orders.= The production order is the written instructions to the superintendent to manufacture certain goods. It is his authority to secure the necessary material, to employ the required number of men, and to convert that material and labor into the finished product. The production order may call for the manufacture of the quantity of goods of a certain type required to fill one or more customers' orders; the manufacture of a certain quantity of goods to be placed in stock, from which to fill future orders; the conversion of a definite quantity of raw material into finished products; or even the manufacture of an indefinite quantity of raw material into an equally indefinite quantity of the finished product, but within a definite period of time.

Usually the production orders of one factory will be confined to one class, though there are some exceptions. In the first class, we find shops manufacturing special machinery, jobbing foundries, and mills manufacturing underwear and hosiery. In the latter business the goods are sold in advance, from samples, and only the quantities or particular styles required to fill orders are manufactured.

The second class includes furniture factories, typewriter factories, the manufacture of tools, and numberless similar industries in which a stock of standard goods is manufactured for future sale.

An example of the third class is found in a harness factory. In this business, a certain number of sides of leather are issued to the cutting room to be cut. Since the leather is not uniform in weight or texture, it is not possible to cut an entire side of leather into pieces of the same size, or the same parts of a harness──as lines or traces. The cutter must use his best judgment, so cutting the leather that it will produce the largest possible volume of usable stock, with the least waste. The definite factor is the side of leather which is to be converted into an indefinite quantity of finished, or semi─finished product.

The last class is illustrated in the manufacture of salt. The brine──raw material──is pumped from the wells into storage tanks, from which it is drawn into evaporating pans or grainers. An order may be issued to make what is known as _common fine salt_ in three of these evaporators. Evaporating processes are influenced by atmospheric conditions──the same heat will evaporate the brine much more rapidly one day than another. Also, the brine is of different degrees of strength──the same quantity does not always contain the same amount of salt. The only definite factor is time──an indefinite quantity of brine is converted, in a given time, into an indefinite quantity of salt and, it might be added, of an indefinite quality.

When all these conditions are considered, together with the fact that each manufacturer has his individual methods of conducting the business──methods probably different from those of his competitors in the same line──it will be seen that the variety of forms of production orders is almost without number. But the important thing is to have an order of some kind──to provide a record.

If there is one essential feature to be incorporated in the production order, it can be expressed in two words──definite instructions. The order should be made perfectly clear, leaving no room for doubt, as to what is desired. When No. 3 dining─room chairs are wanted, the order should state the fact very clearly, and not read _chairs_, leaving the superintendent to guess the style and size.

The form of the production order need not be complicated; indeed, a simple form will serve the purpose much better, an illustration of which is shown in Fig. 39. The heading of this order shows the number and date, with instructions to the superintendent to carry out the work as specified. The body of the order is blank, providing space for entering such details as may be necessary. The blank at the bottom, which is filled in by the superintendent's clerk, shows the date received, date started, the shop order number, and the date finished.

This form is suitable for almost any kind of business or class of order. The production order should always be made in duplicate, a copy to be kept in the office. The office copy will be used to follow up the manufacturing order.

In many lines of business, goods are manufactured only as required to fill customers' orders. The order to manufacture should, in such cases, be an exact copy of the customer's order as entered. With the modern method of entering all orders in manifold──with a copy for each record required──one blank should be included for the factory, this becoming the production order. A form of this kind is shown in Fig. 40. This is an exact copy of the order as entered, the instructions in the heading taking the place of the name and address of the manufacturer. The particulars include the number, date received, and date to be shipped. The body of the order contains the necessary instructions; in the column at the extreme left──quantity ordered, quantity shipped, size, and description. This is one of a set of blanks that include the invoice, office copy, cost department copy, and copy for the shipping department.

=24. Shop Orders.= The shop order is the written instruction of the superintendent to the foreman to do certain work or to manufacture certain articles. The order may call for the manufacture of a certain article complete, or it may be for parts to be later assembled into a complete article. Shop orders are as varied in form as production orders.

When a superintendent desires to start work on a stated production order, he lays out the work and issues the necessary shop orders to the foremen of the different departments in which the work is to be done. A shop order is issued for each shop──usually these are exact copies. If work on an order requires work to be done in four shops, the four copies are made on the typewriter, at one writing, by means of carbon paper.

Fig. 41 shows a convenient form of shop order. This form includes the shop order number, piece number, drawing number, material, date to be completed, date of order, production order number on which the shop order applies, and the date completed. The body of the order is left blank for a description of the work and the necessary instructions. Explicit instructions must be given on every shop order──the order should leave nothing for granted.

The special feature of the shop order shown in Fig. 42 is the space for _card number_ and _total cards_. When an order is made out, as many copies are made as there are shops or departments through which the work must pass. The number of the copies of the order is entered under the heading _total cards_──that is, if the work is to pass through four shops, the figure 4 is entered in the space provided for total cards. The copies are numbered in the order in which the work will be done──that is, the order for the shop that does the first work is given No. 1, the second shop No. 2, etc.