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SCIENTIFIC MANAGEMENT

BRIEF FOR SCIENTIFIC MANAGEMENT'

Efficiency in the best sense is constructive rather than destructive and it is this phase that interests America at a time when the markets of the world are open to her as never before. What efficiency means to the manufacturer, the employee and to the community we have stated briefly in the following outline:

A-FOR THE MANUFACTURER, Scientific Management

I Cheapens the cost of production.

II Eliminates labor troubles.

III Increases output without increasing investment.
IV Improves quality of product.

V Insures prompt deliveries.

I A cheaper cost of production means

(a) Greater profits as a whole and a lower cost per unit, which brings

(b) Greater business stability, because a lower selling price permits a wider market to be covered, doing away with the effects of local business depressions;

(c) Fewer shutdowns. Lower costs allows the factory to run at a profit long after competitors have to shut down to avoid loss.

II The elimination of labor troubles results in avoiding

the expense of

(a) Shutdowns from strikes and lockouts.

(b) Loss of property and possibly life.

(c) Ill feeling on the part of workmen.

III An increase of output without increase of investment

means

(a) Greater total profits-more units to sell.

(b) No necessity for raising more capital-with pos

sible change in control.

(c) Slight increase in overhead expense.

1 By Dwight T. Farnham, Consulting Engineer, St. Louis, Mo.

IV An improved quality of product

(a) Decreases complaints and consequent loss of business.

(b) Facilitates sales.

(c) Increases demand. V Prompt deliveries mean

(a) Satisfied customers.

(b) Increase in business through reputation for reliability.

B-FOR THE EMPLOYEE, Scientific Management Means

I Higher pay.

II Shorter hours.
III Steady employment.

IV Less fatigue.

V Better satisfaction in work.

VI Education leading to better life and higher ideals.

C-TO THE COMMUNITY, Scientific Management Means

I Better citizens.

II Lower taxes.

III Absence of strikes.

IV Steady flow of money from without.

V Less hard times.

VI Lower cost of living.

To understand how this is possible, it is necessary to explain briefly the two prevalent methods of handling labor.

Day Wage System

Workers are paid for time served, regardless of the work

done.

The lazy man or the systematic soldierer receives as much pay as the hard working ambitious laborer.

The naturally ambitious worker has no incentive to do more than his lazy neighbor and probably does less, being better able to figure out and put into effect schemes for soldiering.

The foreman's usual means of determining the efficiency of his crew is their general appearance of bustle.

There is no incentive for the workmen to learn from each other, for the foreman to teach his men better methods, even

if he knows them. The foreman is usually judged by the apparent busyness of his gang.

Day work is a grim game between the foreman and the laborers. His part is to drive them into doing as much as possible, by roaring at them and by keeping ever present the fear of discharge. Their part is to retain their jobs, meantime doing as little work as possible.

Piece Work System

Theoretically, since the workman is rewarded in direct proportion to the work he does, the ambitious worker makes the maximum of which he is capable, the lazy worker is proportionately penalized and the output of the shop is maintained at the highest level; supervision is required only to maintain quality and it is to each worker's advantage to keep his machine in the best possible shape.

Actually the whole thing goes to pieces on the difficulty of setting proper piece rates. In the usual course of events it is necessary to set a new piece rate before any quantity of the article in question has been manufactured. Setting the rate therefore resolves itself into an argument between the boss and the worker, based on past records, and the final bargain is a compromise.

As the worker gains experience in making a new article he naturally cuts the time per piece—as much as he dares—and earns as much as he dares-knowing from past experience that if his daily earnings go beyond a certain point his rate per piece will be cut.

It is to the worker's advantage to set the rate as high as possible, so that he may earn as much as his boss will let him with the least possible effort-especially as his record on this job will be used as a basis for bargaining on the next job.

All this leads to certain subterfuges which hurt the employer and have a bad effect upon the character of the employee. If the worker discovers a quicker way to do the job he keeps it to himself. That becomes one of his reserves to draw on when the boss drives him to the limit. He does not spend any time inventing new tools or devices to do the work more quickly. He is willing that there should be enough breakdowns so that the boss will have to allow for breakdowns next bargain day. He favors a slow speed and lost motion on his machine and he

argues the necessity of various false motions in handling the material.

The weak are driven too fast, knowing only speed and strenuousness where under a different system they would be carefully taught every detail of the work, the obstacles removed and gradually fitted to do efficient work.

The general effect of the piece work system is to place a premium on inefficiency and hypocrisy to make for suspicion, mutual distrust and antagonism between employer and employee.

A-For the Manufacturer

I The cost of production is cheapened by scientific management as follows:

I Labor cost is reduced by each workman doing as much work as possible because :

(a) It is to his advantage to do so as the bonus system pays him fairly and justly in proportion to what he accomplishes.

(b) There is no chance for soldiering—since the shortest time in which the work can be done is determined by scientific methods-before he begins the work.

(c) The worker's motions are analyzed, all unnecessary ones eliminated and the laws of physics, anatomy and psychology brought to bear upon the balance to assist him.

(d) His machine is speeded for production in the shortest time.

(e) Tools best adapted for the work are furnished in the finest condition.

(f) All obstacles to continuous performance are removed, breakdowns are reduced to a minimum, supplies are delivered as needed, no time is lost asking for instructions or hunting foremen.

(g) Machines are so grouped as to reduce the movement of material to a minimum and the worker has the advantage of securing the right thing, at the right place at the right time.

(h) The worker's skill is increased and he is stimulated to suggest improved methods and devices.

(i) He has to assist him, combined and in usable form, the past best practice, the experience and intelligence of his fellow workers, the ability of his superiors and all extant scientific knowledge.

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