Chapter 7
When functional foremanship is introduced in a large shop, it is desirable that all of the bosses who are performing the same function should have their own foreman over them; for instance, the speed bosses should have a speed foreman over them, the gang bosses, a head gang boss; the inspectors, a chief inspector, etc., etc. The functions of these over-foremen are twofold. The first part of their work is to teach each of the bosses under them the exact nature of his duties, and at the start, also to nerve and brace them up to the point of insisting that the workmen shall carry out the orders exactly as specified on the instruction cards. This is a difficult task at first, as the workmen have been accustomed for years to do the details of the work to suit themselves, and many of them are intimate friends of the bosses and believe they know quite as much about their business as the latter. The second function of the over-foreman is to smooth out the difficulties which arise between the different types of bosses who in turn directly help the men. The speed boss, for instance, always follows after the gang boss on any particular job in taking charge of the workmen. In this way their respective duties come in contact edgeways, as it were, for a short time, and at the start there is sure to be more or less friction between the two. If two of these bosses meet with a difficulty which they cannot settle, they send for their respective over-foremen, who are usually able to straighten it out. In case the latter are unable to agree on the remedy, the case is referred by them to the assistant superintendent, whose duties, for a certain time at least, may consist largely in arbitrating such difficulties and thus establishing the unwritten code of laws by which the shop is governed. This serves as one example of what is called the "exception principle" in management, which is referred to later.
Before leaving this portion of the subject the writer wishes to call attention to the analogy which functional foremanship bears to the management of a large, up-to-date school. In such a school the children are each day successively taken in hand by one teacher after another who is trained in his particular specialty, and they are in many cases disciplined by a man particularly trained in this function. The old style, one teacher to a class plan is entirely out of date.
The writer has found that better results are attained by placing the planning department in one office, situated, of course, as close to the center of the shop or shops as practicable, rather than by locating its members in different places according to their duties. This department performs more or less the functions of a clearing house. In doing their various duties, its members must exchange information frequently, and since they send their orders to and receive their returns from the men in the shop, principally in writing, simplicity calls for the use, when possible, of a single piece of paper for each job for conveying the instructions of the different members of the planning room to the men and another similar paper for receiving the returns from the men to the department. Writing out these orders and acting promptly on receipt of the returns and recording same requires the members of the department to be close together. The large machine shop of the Bethlehem Steel Company was more than a quarter of a mile long, and this was successfully run from a single planning room situated close to it. The manager, superintendent, and their assistants should, of course, have their offices adjacent to the planning room and, if practicable, the drafting room should be near at hand, thus bringing all of the planning and purely brain work of the establishment close together. The advantages of this concentration were found to be so great at Bethlehem that the general offices of the company, which were formerly located in the business part of the town, about a mile and a half away, were moved into the middle of the works adjacent to the planning room.
The shop, and indeed the whole works, should be managed, not by the manager, superintendent, or foreman, but by the planning department. The daily routine of running the entire works should be carried on by the various functional elements of this department, so that, in theory at least, the works could run smoothly even if the manager, superintendent and their assistants outside the planning room were all to be away for a month at a time.
The following are the leading functions of the planning department:
(a) The complete analysis of all orders for machines or work taken by the company.
(b) Time study for all work done by hand throughout the works, including that done in setting the work in machines, and all bench, vise work and transportation, etc.
(c) Time study for all operations done by the various machines.
(d) The balance of all materials, raw materials, stores and finished parts, and the balance of the work ahead for each class of machines and workmen.
(e) The analysis of all inquiries for new work received in the sales department and promises for time of delivery.
(f) The cost of all items manufactured with complete expense analysis and complete monthly comparative cost and expense exhibits.
(g) The pay department.
(h) The mnemonic symbol system for identification of parts and for charges.
(i) Information bureau.
(j) Standards.
(k) Maintenance of system and plant, and use of the tickler.
(l) Messenger system and post office delivery.
(m) Employment bureau.
(n) Shop disciplinarian.
(o) A mutual accident insurance association.
(p) Rush order department.
(q) Improvement of system or plant.
These several functions may be described more in detail as follows:
(a) THE COMPLETE ANALYSIS OF ALL ORDERS FOR MACHINES OR WORK TAKEN BY THE COMPANY.
This analysis should indicate the designing and drafting required, the machines or parts to be purchased and all data needed by the purchasing agent, and as soon as the necessary drawings and information come from the drafting room the lists of patterns, castings and forgings to be made, together with all instructions for making them, including general and detail drawing, piece number, the mnemonic symbol belonging to each piece (as referred to under (h) below) a complete analysis of the successive operations to be done on each piece, and the exact route which each piece is to travel from place to place in the works.
(b) TIME STUDY FOR ALL WORK DONE BY HAND THROUGHOUT THE WORKS, INCLUDING THAT DONE IN SETTING THE WORK IN MACHINES, AND ALL BENCH AND VISE WORK, AND TRANSPORTATION, ETC.
This information for each particular operation should be obtained by summing up the various unit times of which it consists. To do this, of course, requires the men performing this function to keep continually posted as to the best methods and appliances to use, and also to frequently consult with and receive advice from the executive gang bosses who carry out this work in the shop, and from the man in the department of standards and maintenance of plant (j) beneath. The actual study of unit times, of course, forms the greater part of the work of this section of the planning room.
(c) TIME STUDY FOR ALL OPERATIONS DONE BY THE VARIOUS MACHINES.
This information is best obtained from slide rules, one of which is made for each machine tool or class of machine tools throughout the works; one, for instance, for small lathes of the same type, one for planers of same type, etc. These slide rules show the best way to machine each piece and enable detailed directions to be given the workman as to how many cuts to take, where to start each cut, both for roughing out work and finishing it, the depth of the cut, the best feed and speed, and the exact time required to do each operation.
The information obtained through function (b), together with that obtained through (c) afford the basis for fixing the proper piece rate, differential rate or the bonus to be paid, according to the system employed.
(d) THE BALANCE OF ALL MATERIALS, RAW MATERIALS, STORES AND FINISHED PARTS, AND THE NUMBER OF DAYS' WORK AHEAD FOR EACH CLASS OF MACHINES AND WORKMEN.
Returns showing all receipts, as well as the issue of all raw materials, stores, partly finished work, and completed parts and machines, repair parts, etc., daily pass through the balance clerk, and each item of which there have been issues or receipts, or which has been appropriated to the use of a machine about to be manufactured, is daily balanced. Thus the balance clerk can see that the required stocks of materials are kept on hand by notifying at once the purchasing agent or other proper party when the amount on hand falls below the prescribed figure. The balance clerk should also keep a complete running balance of the hours of work ahead for each class of machines and workmen, receiving for this purpose daily from (a), (b), and (c) above statements of the hours of new work entered, and from the inspectors and daily time cards a statement of the work as it is finished. He should keep the manager and sales department posted through daily or weekly condensed reports as to the number of days of work ahead for each department, and thus enable them to obviate either a congestion or scarcity of work.
(e) THE ANALYSIS OF ALL INQUIRIES FOR NEW WORK RECEIVED IN THE SALES DEPARTMENT AND PROMISES AS TO TIME OF DELIVERY. The man or men in the planning room who perform the duties indicated at (a) above should consult with (b) and (c) and obtain from them approximately the time required to do the work inquired for, and from (d) the days of work ahead for the various machines and departments, and inform the sales department as to the probable time required to do the work and the earliest date of delivery.
(f) THE COST OF ALL ITEMS MANUFACTURED, WITH COMPLETE EXPENSE ANALYSIS AND COMPLETE MONTHLY COMPARATIVE COST AND EXPENSE EXHIBITS.
The books of the company should be closed once a month and balanced as completely as they usually are at the end of the year, and the exact cost of each article of merchandise finished during the previous month should be entered on a comparative cost sheet. The expense exhibit should also be a comparative sheet. The cost account should be a completely balanced account, and not a memorandum account as it generally is. All the expenses of the establishment, direct and indirect, including the administration and sales expense, should be charged to the cost of the product which is to be sold.
(g) THE PAY DEPARTMENT.
The pay department should include not only a record of the time and wages and piece work earnings of each man, and his weekly or monthly payment, but the entire supervision of the arrival and departure of the men from the works and the various checks needed to insure against error or cheating. It is desirable that some one of the "exception systems" of time keeping should be used.
(h) THE MNEMONIC SYMBOL SYSTEM FOR IDENTIFICATION OF PARTS AND FOR CHARGES.
Some one of the mnemonic symbol systems should be used instead of numbering the parts or orders for identifying the various articles of manufacture, as well as the operations to be performed on each piece and the various expense charges of the establishment. This becomes a matter of great importance when written directions are sent from the planning room to the men, and the men make their returns in writing. The clerical work and chances for error are thereby greatly diminished.
(i) INFORMATION BUREAU.
The information bureau should include catalogues of drawings (providing the drafting room is close enough to the planning room) as well as all records and reports for the whole establishment. The art of properly indexing information is by no means a simple one, and as far as possible it should be centered in one man.
(j) STANDARDS.
The adoption and maintenance of standard tools, fixtures, and appliances down to the smallest item throughout the works and office, as well as the adoption of standard methods of doing all operations which are repeated, is a matter of importance, so that under similar conditions the same appliances and methods shall be used throughout the plant. This is an absolutely necessary preliminary to success in assigning daily tasks which are fair and which can be carried out with certainty.
(k) MAINTENANCE OF SYSTEM AND PLANT, AND USE OF THE TICKLER.
One of the most important functions of the planning room is that of the maintenance of the entire system, and of standard methods and appliances throughout the establishment, including the planning room itself. An elaborate time table should be made out showing daily the time when and place where each report is due, which is necessary to carry on the work and to maintain the system. It should be the duty of the member of the planning room in charge of this function to find out at each time through the day when reports are due, whether they have been received, and if not, to keep bothering the man who is behind hand until he has done his duty. Almost all of the reports, etc., going in and out of the planning room can be made to pass through this man. As a mechanical aid to him in performing his function the tickler is invaluable. The best type of tickler is one which has a portfolio for each day in the year, large enough to insert all reminders and even quite large instruction cards and reports without folding. In maintaining methods and appliances, notices should be placed in the tickler in advance, to come out at proper intervals throughout the year for the inspection of each element of the system and the inspection and overhauling of all standards as well as the examination and repairs at stated intervals of parts of machines, boilers, engines, belts, etc., likely to wear out or give trouble, thus preventing breakdowns and delays. One tickler can be used for the entire works and is preferable to a number of individual ticklers. Each man can remind himself of his various small routine duties to be performed either daily or weekly, etc., and which might be otherwise overlooked, by sending small reminders, written on slips of paper, to be placed in the tickler and returned to him at the proper time. Both the tickler and a thoroughly systematized messenger service should be immediately adjacent to this man in the planning room, if not directly under his management.
The proper execution of this function of the planning room will relieve the superintendent of some of the most vexatious and time-consuming of his duties, and at the same time the work will be done more thoroughly and cheaper than if he does it himself. By the adoption of standards and the use of instruction cards for overhauling machinery, etc., and the use of a tickler as above described, the writer reduced the repair force of the Midvale Steel Works to one-third its size while he was in the position of master mechanic. There was no planning department, however, in the works at that time.
(l) MESSENGER SYSTEM AND POST OFFICE DELIVERY.
The messenger system should be thoroughly organized and records kept showing which of the boys are the most efficient. This should afford one of the best opportunities for selecting boys fit to be taught trades, as apprentices or otherwise. There should be a regular half hourly post office delivery system for collecting and distributing routine reports and records and messages in no especial hurry throughout the works.
(m) EMPLOYMENT BUREAU.
The selection of the men who are employed to fill vacancies or new positions should receive the most careful thought and attention and should be under the supervision of a competent man who will inquire into the experience and especial fitness and character of applicants and keep constantly revised lists of men suitable for the various positions in the shop. In this section of the planning room. an individual record of each of the men in the works can well be kept showing his punctuality, absence without excuse, violation of shop rules, spoiled work or damage to machines or tools, as well as his skill at various kinds of work; average earnings, and other good qualities for the use of this department as well as the shop disciplinarian.
(n) THE SHOP DISCIPLINARIAN.
This man may well be closely associated with the employment bureau and, if the works is not too large, the two functions can be performed by the same man. The knowledge of character and of the qualities needed for various positions acquired in disciplining the men should be useful in selecting them for employment. This man should, of course, consult constantly with the various foremen and bosses, both in his function as disciplinarian arid in the employment of men.
(o) A MUTUAL ACCIDENT INSURANCE ASSOCIATION.
A mutual accident insurance association should be established, to which the company contributes as well as the men. The object of this association is twofold: first the relief of men who are injured, and second, an opportunity of returning to the workmen all fines which are imposed upon them in disciplining them, and for damage to company's property or work spoiled.
(p) RUSH ORDER DEPARTMENT.
Hurrying through parts which have been spoiled or have developed defects, and also special repair orders for customers, should receive the attention of one man.
(q) IMPROVEMENT OF SYSTEM OR PLANT.
One man should be especially charged with the work of improvement in the system and in the running of the plant.
The type of organization described in the foregoing paragraphs has such an appearance of complication and there are so many new positions outlined in the planning room which do not exist even in a well managed establishment of the old school, that it seems desirable to again call attention to the fact that, with the exception of the study of unit times and one or two minor functions, each item of work which is performed in the planning room with the superficial appearance of great complication must also be performed by the workmen in the shop under the old type of management, with its single cheap foreman and the appearance of great simplicity. In the first case, however, the work is done by an especially trained body of men who work together like a smoothly running machine, and in the second by a much larger number of men very poorly trained and ill-fitted for this work, and each of whom while doing it is taken away from some other job for which he is well trained. The work which is now done by one sewing machine, intricate in its appearance, was formerly done by a number of women with no apparatus beyond a simple needle and thread.
There is no question that the cost of production is lowered by separating the work of planning and the brain work as much as possible from the manual labor. When this is done, however, it is evident that the brain workers must be given sufficient work to keep them fully busy all the time. They must not be allowed to stand around for a considerable part of their time waiting for their particular kind of work to come along, as is so frequently the case.
The belief is almost universal among manufacturers that for economy the number of brain workers, or non-producers, as they are called, should be as small as possible in proportion to the number of producers, i.e., those who actually work with their hands. An examination of the most successful establishments will, however, show that the reverse is true. A number of years ago the writer made a careful study of the proportion of producers to non-producers in three of the largest and most successful companies in the world, who were engaged in doing the same work in a general way. One of these companies was in France, one in Germany, and one in the United States. Being to a certain extent rivals in business and situated in different countries, naturally neither one had anything to do with the management of the other. In the course of his investigation, the writer found that the managers had never even taken the trouble to ascertain the exact proportion of non-producers to producers in their respective works; so that the organization of each company was an entirely independent evolution.
By non-producers the writer means such employees as all of the general officers, the clerks, foremen, gang bosses, watchmen, messenger boys, draftsmen, salesmen, etc.; and by "producers," only those who actually work with their hands.
In the French and German works there was found to be in each case one non-producer to between six and seven producers, and in the American works one non-producer to about seven producers. The writer found that in the case of another works, doing the same kind of business and whose management was notoriously bad, the proportion of non-producers to producers was one non-producer to about eleven producers. These companies all had large forges, foundries, rolling mills and machine shops turning out a miscellaneous product, much of which was machined. They turned out a highly wrought, elaborate and exact finished product, and did an extensive engineering and miscellaneous machine construction business.
In the case of a company doing a manufacturing business with a uniform and simple product for the maximum economy, the number of producers to each non-producer would of course be larger. No manager need feel alarmed then when he sees the number of non-producers increasing in proportion to producers, providing the non-producers are busy all of their time, and providing, of course, that in each case they are doing efficient work.
It would seem almost unnecessary to dwell upon the desirability of standardizing, not only all of the tools, appliances and implements throughout the works and office, but also the methods to be used in the multitude of small operations which are repeated day after day. There are many good managers of the old school, however, who feel that this standardization is not only unnecessary but that it is undesirable, their principal reason being that it is better to allow each workman to develop his individuality by choosing the particular implements and methods which suit him best. And there is considerable weight in this contention when the scheme of management is to allow each workman to do the work as he pleases and hold him responsible for results. Unfortunately, in ninety-nine out of a hundred such cases only the first part of this plan is carried out. The workman chooses his own methods and implements, but is not held in any strict sense accountable unless the quality of the work is so poor or the quantity turned out is so small as to almost amount to a scandal. In the type of management advocated by the writer, this complete standardization of all details and methods is not only desirable but absolutely indispensable as a preliminary to specifying the time in which each operation shall be done, and then insisting that it shall be done within the time allowed.
Neglecting to take the time and trouble to thoroughly standardize all of such methods and details is one of the chief causes for setbacks and failure in introducing this system. Much better results can be attained, even if poor standards be adopted, than can be reached if some of a given class of implements are the best of their kind while others are poor. It is uniformity that is required. Better have them uniformly second class than mainly first with some second and some third class thrown in at random. In the latter case the workmen will almost always adopt the pace which conforms to the third class instead of the first or second. In fact, however, it is not a matter involving any great expense or time to select in each case standard implements which shall be nearly the best or the best of their kinds. The writer has never failed to make enormous gains in the economy of running by the adoption of standards.