WILLIAM LOD 
 
RULES OF 
 MANAGEMENT 
 
McGraw-Hill BookCompaiy 
 
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RULES OF 
 MANAGEMENT 
 
 WITH PRACTICAL INSTRUCTIONS 
 ON MACHINE BUILDING 
 
 BY 
 WILLIAM LODGE 
 
 PRESIDENT OF THE LODGE AND SHIPLEY MACHINE TOOL CO. 
 
 McGRAW-HILL BOOK COMPANY, INC. 
 
 239 WEST 39TH STREET, NEW YORK 
 
 6 BOUVERIE STREET, LONDON, E. C. 
 
 1913 
 
COPYRIGHT, 1913, BY THE 
 McGsAW-HiLL BOOK COMPANY, INC. 
 
 THE. MAPLE. PRESS- TOEK. PA 
 
PUBLISHER'S NOTE 
 
 The author of this book is so widely known in the 
 machine building trade as to need no introduction. 
 However, in view of the usefulness of his suggestions 
 in all lines of manufacturing, it seems wise to give the 
 reader a brief outline of the extended experience and 
 marked success of Mr. Lodge's career. 
 
 Wm. Lodge was born in Leeds, England, in 1848, a 
 son of George Lodge, a skilled mechanic in the textile 
 industry. He attended the common schools until at the 
 age of 17 he became an apprentice at the machine shops 
 of Fairburn & Co., of Leeds, where his term of indenture 
 covered four years. He then came to the United States 
 and resided in Philadelphia until 1872, when he went to 
 Cincinnati, and shortly afterward became foreman in the 
 shops of Steptoe, McFarland, Nottingham & Co. The 
 senior member of the firm, John Steptoe, was the first 
 machine-tool manufacturer west of the Alleghenies. After 
 eight years with this concern, Mr. Lodge entered into 
 partnership with Wm. Barker, and they conducted a 
 successful business in the manufacture of machine tools 
 under the firm name of Lodge, Barker & Co. In 1886 
 Mr. Barker disposed of his interest to Charles Davis and 
 the company was reorganized under the name of Lodge 
 & Davis. Six years later, 1892, Mr. Lodge withdrew from 
 the firm and the same year organized the Ohio Machine 
 Tool Co., the organization being continued until 1893, 
 when he became associated with Murray Shipley, and the 
 present company was incorporated under the name of 
 the Lodge, Shipley Machine Tool Co., of which Mr. 
 Lodge is president. 
 
 271309 
 
FOREWORD 1 
 
 The subject of Management is a big one. 
 Some of us grasp its meaning one way and some 
 another; all of us apply our interpretation of it 
 with more or less success. Those of us who 
 have to do with its practical application realize 
 certain experiences that differ radically because 
 of the differences in our conception of the 
 principles which are involved in it. My prin- 
 ciples may be very different from each of yours, 
 and may be subject to the criticism and argu- 
 ment of each of you. 
 
 Let me ask those of you who have more or 
 less to do with practical management to con- 
 sider for a few moments your own experience, 
 together with the experiences of others that 
 have come under your notice during the time 
 that you have been in business, but particularly 
 during the last ten years. Within this time 
 the system of management of industrial estab- 
 lishments has changed very materially from 
 
 1 Extract from an address by the author before the Effi- 
 ciency Society, January, 1913. 
 
 vii 
 
viii FOREWORD 
 
 what may be termed the individual type to 
 the corporate, involving in many cases the* 
 acquiring of a number of companies and the 
 amalgamating of them under one management. 
 Frequently the men who built up each of the 
 original separate companies have left them, 
 voluntarily or otherwise, and have been su- 
 perseded by others more or less unfamiliar 
 with their conditions. Under such circum- 
 stances the new company no longer enjoys the 
 benefit of the intimate experience with and 
 knowledge of the affairs of the old companies 
 that these men had. This has generally been 
 a great loss and a source of considerable em- 
 barrassment to the new company, and has 
 created the necessity for a different type of 
 management. 
 
 But whether management is of one form or 
 another, ultimately the manager must be the 
 man who is responsible for the success or failure of 
 the enterprise. He cannot shift the blame of 
 failure upon others; others cannot claim the 
 credit of success. It may be said that success 
 or failure will depend upon the way some of the 
 manager's subordinates perform their duties, 
 and that is true; but it finally devolves upon the 
 
FOREWORD ix 
 
 manager to see that his subordinates perform 
 their duties in such a way that their efforts 
 coordinate in order to bring about a successful 
 issue to the plans he has made. 
 
 Then again there is another situation which 
 confronts every one of us sooner or later. 
 Every manager who has had charge of an 
 industrial establishment for a great many 
 years finally begins to see that his hair is 
 getting gray, that it will not be many years 
 before it will be necessary to hand over the 
 management of his business to someone else, 
 and makes preparation for that end. Some- 
 times the man at the head of the concern is 
 desirous of taking life easier and delegates 
 his authority, with verbal instructions usually, 
 to the men with whom he has surrounded 
 himself and in whom he has confidence, and he 
 must give them proper instructions so as to 
 secure this coordination. 
 
 Sometimes this is difficult to do. In the 
 first place there is no school where men are 
 taught to be credit men, or financial experts, 
 or advertising specialists, or salesmen, or 
 purchasing agents, or superintendents and 
 foremen of production. So the manager has 
 
X FOREWORD 
 
 either to go out into the market and hire men 
 who have had self-made experience in these 
 fields, or he must start with fresh material and 
 educate them himself. 
 
 Now suppose he adopts the first method. 
 Usually the first thing the new managers, or 
 the men who have filled the various subordinate 
 positions in the past, do, is to go to the men 
 who hold the purse strings and say, "It is 
 necessary that we get more equipment at this 
 point and better equipment at that point, 
 and an addition to a building must be made 
 here, a new building erected there," etc., and 
 because it is supposed that these men know 
 what they are talking about, these demands 
 are met. The new equipment is obtained; 
 the buildings erected, and then results such 
 as would ordinarily be expected as obtainable 
 are looked for; but surprises and disappoint- 
 ments come instead. 
 
 The improved equipment which has been 
 added by the new management does not realize 
 anything like the amount of earnings, in per- 
 centage of capital invested, that the old equip- 
 ment did when the industry was younger. The 
 new management are astonished about it, 
 
FOREWORD xi 
 
 wonder why it is, and they begin to inquire and 
 say "Why can we not earn as much money in 
 percentage of capital invested now, when our 
 equipment in jigs and tools, machinery, build- 
 ings and organization, etc., is far better than 
 it used to be," and they go back to the books 
 and say " There must be some mistake here, let 
 us look over the accounts." They examine the 
 statement from end to end and find there is no 
 mistake; that although more capital is invested 
 in the business the earnings do not materialize. 
 Somebody who can diagnose the trouble and 
 apply a remedy must get on the job at this 
 point or the enterprise will die. If the man 
 who built up the business still has enough inter- 
 est in it, enough energy and good health to take 
 hold again himself, as he did when he was 
 younger, in the endeavor to ferret out where the 
 trouble lies, it is possible that it may be found 
 and the remedy applied. It is probable, how- 
 ever, that by this time the conditions would be 
 so strange to him that he could be of little as- 
 sistance. What would probably be needed 
 would be a man informed in modern methods 
 of management, with a sufficiently wide ex- 
 perience to recognize the new conditions, who 
 
xii FOREWORD 
 
 would see that new methods must be introduced 
 to meet them, and who could instruct the work- 
 ing force in those methods, so that they could 
 be applied. Such men are now becoming 
 available. They are the Efficiency Engineers. 
 In my own case when I decided to relinquish 
 the reins of my business and let a younger gen- 
 eration take up the management, I realized 
 what would probably happen if I simply 
 handed them over to others who had never 
 learned how to drive, so I endeavored to see 
 what I could do to prevent the immediate 
 development of a new set of conditions with 
 which the organization I had built up would 
 not be able to cope. I commenced to teach 
 them how to handle things just as they were. 
 In carrying out my plan the following record 
 of personal experience, put in the form of rules 
 and comment, was written to give information 
 to the succeeding manager of the shops of the 
 Lodge & Shipley Machine Tool Co. It is the 
 result of an endeavor to give him, in permanent, 
 written form, a knowledge of facts and a scheme 
 of organization that will enable him to carry 
 on his work with the feeling that he is on a sure 
 footing on the ground over which he must 
 
FOREWORD xiii 
 
 travel. It is hoped, however, that these in- 
 structions may be found applicable and bene- 
 ficial in many lines of machine building, and 
 may aid in continuing the rapid progress that 
 is now with us. 
 
 In this record, the duties and work of each 
 department are outlined in some detail. This 
 extends from the general manager of the shop 
 down to janitors and watchmen. 
 
CONTENTS 
 
 CHAPTEK PAGE 
 
 I. The Exceptional Employee 1 
 
 II. The General Manager 6 
 
 III. Assistant Manager 17 
 
 IV. Chief Engineer and Designer 24 
 
 * V. Drawing Room .' 27 
 
 VI. Purchasing Agent 31 
 
 VII. Incoming Material and Stores Department. . 34* 
 
 v VIII. Superintendent of Manufacture 39* 
 
 ^X. Routing Department 47* 
 
 X. Chief Clerk 50 
 
 XI. Cost and Time-keeping Department .... 53 
 
 XII. Operation of Premium Plan 58 
 
 - XIII. Superintendent of Assembly 61 
 
 XIV. Handling Complaints 67 
 
 XV. Pattern Shop 72 
 
 XVI. Tool-making Room 77 
 
 XVII. Forge Department 79 
 
 XVIII. Lathe Department 81 
 
 XIX. Grinding Department 85 
 
 XX. Drilling Department 89 
 
 XXI. Planer Department 92 
 
 XXII. Milling Department 95 
 
 XXIII. Gear Cutting Department 97 
 
 XXIV. Special Manufacturing Department .... 100 
 XXV. Inspecting Department 103 
 
 XXVI. Specific Instructions for Painting Lathes . .106 
 
 XXVII. Sales Manager 108 
 
 XXVIII. Shipping Clerk 113 
 
 XXIX. Boss Laborer and Express Truckman . . .116 
 
 XXX. Millwright and Belt Man 119 
 
 XXXI. Engineer, Electrician and Oiler 122 
 
 XXXII. Janitors and Watchmen 127 
 
 XXXIII. A Proposed Pension Plan 131 
 
 XXXIV. Basis on which a Fund can be Started ... 134 
 
 xv 
 
RULES OF MANAGEMENT 
 
 i 
 
 THE EXCEPTIONAL EMPLOYEE 
 
 E most valuable acquisition to business 
 that an employer can obtain is the excep- 
 tional young man. There is no bargain so 
 fruitful. 
 
 By the exceptional young man is meant the 
 one who is always looking out for his employer's 
 interest, the young man who keeps his eyes 
 open, who is always trying to make suggestions 
 for improvements in the business, who is al- 
 ways studying for something better, simpler, 
 more efficient ways of doing things. 
 
 Never before was there such a demand for 
 the exceptional, the resourceful man, the man 
 who can think, who can devise new and orig- 
 inal ways of doing things, the man who can 
 grasp the needs of the situation and solve them 
 with his own resourcefulness. 
 
 Napoleon said that his soldiers fought so 
 well because every man carried a field marshal's 
 
3 RULES OF MANAGEMENT 
 
 . 
 
 baton in his knapsack. In other words, every 
 man in Napoleon's army expected advancement 
 and was prepared for it. 
 
 yi The principle of advancement, of growth, of 
 progress, is the same whether in employer or 
 employee. Business grows because of enter- 
 prising, progressive, pushing, up-to-date 
 methods. Promotion for the employee re- 
 quires the same pushing, vigorous, alert 
 methods. 
 
 If you want to be advanced, you must be 
 /^ 
 
 dead in earnest, and enthusiastic over your 
 employer's business. You must go to the 
 bottom of it; study it, get a comprehensive 
 view of it; know just as much about it as pos- 
 . sible. If you intend to take up the same line 
 of business yourself, your present opportunity 
 of observation and study will be of untold value 
 to you. At present you are really an appren- 
 tice, being well paid for your work, besides 
 having the opportunity to learn the business. 
 When your employer finds that you have a 
 lot of enterprise, that you are trying to learn as 
 much about his business as he himself knows, he 
 will begin to think that you are made of pro- 
 motion material. But if he sees that your 
 
THE EXCEPTIONAL EMPLOYEE 3 
 
 ambition is just to get your salary and have as 
 easy a time as you can, you will never attract 
 his attention, except for a possible discharge. 
 An employer wants no dead-wood around him. 
 He wants live wires. He wants employees 
 who have ambition enough to be willing to pay 
 the price for promotion. 
 
 The first thing the successful employee 
 must realize is that he is really working for 
 himself. Every bit of work he does heartily, 
 honestly, thoroughly, is developing his own 
 capacity, making him a bigger, broader, more 
 capable man. If he robs his employer of time 
 or energy, he is robbing himself more, because 
 he is practising dishonesty, and cultivating a 
 weakness that will slowly undermine his char- 
 acter and destroy his reputation for trust- 
 worthiness. 
 
 The men who have done great things in the 
 world have been prodigious workers, particu- 
 larly during the time when they were struggling 
 to establish themselves in life. 
 
 Young men who are sticklers for hours, who 
 are afraid of working overtime, who want to 
 leave the office on the minute or a little before, 
 who are always a little late in the morning, or 
 
4 RULES OF MANAGEMENT 
 
 who take their employer's time for their own 
 personal uses such employees never get very 
 far. 
 
 If YOU want to be something more than the 
 average worker, you must do something more 
 than average work. If you expect to become 
 an important figure in the world of commerce, 
 a captain of industry, instead of a common 
 soldier in the ranks of labor, you must put 
 your shoulder to the wheel and push, and 
 push hard. 
 
 It is astonishing how many young men are 
 trying to get a living without hard work. It 
 does not seem possible that so many people 
 could live off one another without really 
 producing anything themselves. Everywhere 
 we see young men looking for easy places, short 
 hours, and the least possible work for the 
 greatest possible salary. 
 
 Even if it were possible to get a living with 
 a very little effort, you could not afford it. 
 You could not afford to coin your brain into 
 dollars, to make dollar-chasing the ambition 
 of your life. There ought to be something 
 larger in you than that. There is something 
 in you that will not be satisfied with this sort 
 
THE EXCEPTIONAL EMPLOYEE 5 
 
 of a life, something that will protest against 
 selling yourself so cheaply. You cannot respect 
 yourself unless you are doing your best, mak- 
 ing your greatest effort to bring out the best 
 thing in you. 
 
II 
 
 THE GENERAL MANAGER 
 
 rip HIS official of any manufacturing corpora- 
 tion should not try to perform personally 
 the duties of his office and those of every other 
 official in the plant. The duties of the latter 
 are set forth in the following brief instructions, 
 but the general manager must know that each 
 one thoroughly and continuously performs his 
 own work, in keeping with his instructions. 
 Everyone in the organization should keep a 
 copy of his instructions before him. The 
 exceptional man scarcely needs to be reminded 
 of them, for he will do more work than they 
 call for. But some day such a man will be 
 wanted higher up, and when he is promoted, 
 the instructions stay with the job and must 
 govern the man who takes up the work. 
 
 The 30 or 40 men in the organization, for 
 whom these instructions are written, grade 
 from the exceptional man down. It takes 
 
 6 
 
THE GENERAL MANAGER 7 
 
 years of care and study to fit each one for his 
 place. The teaching and training to bring 
 about this fitness must be carefully done, and 
 then as much care must be exercised to keep 
 him there and keep him satisfied. It is largely 
 through correspondence that we keep in touch 
 with the outside world. Thus the man who 
 handles this needs to use particular care that 
 the good qualities of the product are brought 
 to the attention of customers. 
 
 No former or prospective customer should 
 have cause to complain of being unable to 
 obtain, in reply to his first request, full and 
 complete information. Every complaint that 
 comes in, whether through the mail, by tele- 
 phone, or telegraph, should be seen and acted 
 upon by the general manager. If it should 
 happen that any of the following instructions 
 are not clear enough to fix responsibility, they 
 must at once be changed so that their meaning 
 is unequivocal. 
 
 The general manager should call and preside 
 at a meeting, held once a week, if only for a half 
 hour, to include the assistant manager, chief 
 engineer, superintendent of manufacture and 
 superintendent of assembly. Each one of 
 
8 RULES OF MANAGEMENT 
 
 these will have learned of some matter during 
 the preceding week, which should be brought 
 to the knowledge of all. To see and do every 
 day the things that all other executives miss 
 will keep the general manager well occupied. 
 
 In addition to all complaints, all orders 
 should be called to his attention. His own 
 judgment will tell him which of these he will 
 need to take up in person. He should make 
 it an especial point to see what is being done in 
 the drawing room every day. It is exceedingly 
 important that incorrect drawings should not 
 find their way into the shop. Drawing-room 
 mistakes are very costly in the shop. 
 
 He must keep the shop supplied with new 
 blood and new men from our own University 
 of Cincinnati, our city high schools, Pratt 
 Institute, the Worcester Polytechnic Institute, 
 the Massachusetts Institute of Technology, and 
 other engineering colleges. With proper shop 
 training and experience, such men are of great 
 value in a manufacturing organization. 
 
 Particular care must be exercised in changes 
 of design. He should look beyond the reasons 
 presented, and particularly look into what is 
 ordered. This is especially true of the work in 
 
THE GENERAL MANAGER 9 
 
 the toolroom, in the special manufacturing 
 department, and of all the work under the 
 charge of the superintendent of manufacture. 
 He cannot use too much care or effort to keep 
 the inspection in Al shape. To help in per- 
 forming this general inspection work with sure- 
 ness, the instructions to all other departments 
 should be read over by him until he is thor- 
 oughly acquainted with them. Such a knowl- 
 edge of them will save many a shop journey. 
 
 He should study carefully all so-called non- 
 production departments, including the pat- 
 tern-making department and the toolroom, and 
 remember also that the superintendent of 
 manufacture will need much of his attention 
 and best assistance. The superintendent of 
 assembly must be capable of handling foremen 
 and helping them in the niceties of the work in 
 their various departments. He must have the 
 ability to keep work moving through. 
 
 Everything in the nature of shop politics that 
 is harmful to the company should be eliminated. 
 The assistant manager should be cultivated 
 and guided where necessary. There must be a 
 capable understudy for every important posi- 
 tion. He should keep building up the organi- 
 
10 RULES OF MANAGEMENT 
 
 zation along permanent lines and be careful 
 about tearing down. The assistant to the 
 superintendent of manufacture should be an 
 especially capable understudy, and able to fill 
 the place, should occasion arise. 
 
 The chief engineer should go the entire 
 journey of his own work, seeing the end clearly 
 himself, and also the importance of making 
 every item clear to the men who follow him. 
 (The general manager should note this par- 
 ticularly.) He should be prolific in ideas, but 
 exercise great care in making changes in designs, 
 and still greater care in establishing the means 
 to serve the end for which it was designed. 
 When this means has been successfully ob- 
 tained, he should not change. It is ruinous in 
 cost and prevents economy in manufacturing. 
 Never use two pieces where one will serve; but 
 when designing the one piece, be sure that it 
 can be manufactured in an inexpensive and 
 successful manner. 
 
 The man in charge of the drawing room should 
 be an expert on machine-tool design, as well as a 
 capable foreman. This calls for a capable man. 
 The modern machine tool is a highly organized 
 machine, and in its design calls for a knowledge 
 
THE GENERAL MANAGER 11 
 
 of all kinds of engineering and mechanical 
 work. The drafting department is one that 
 always needs the assistance of the executives. 
 It is important that in this room there should 
 be a thoroughly competent checker, through 
 whose hands every item of design must pass. 
 
 Good men must be kept in the cost, the trac- 
 ing and routing departments. The latter 
 should have thorough, continuous study, for it 
 is capable of progressive improvement. Defi- 
 nite standards of performance are always 
 necessary; thus, a list of machines to be pro- 
 duced for a month, scheduled for as long a 
 period in the future as possible, should be pre- 
 pared and given to everyone concerned. This 
 might be made out something as follows : 
 
 Number of lathes to be Size of 
 
 delivered each month lathe 
 
 40 14 in. 
 
 40 16 in. 
 
 30 18 in. 
 
 This, of course, is to be extended for the 
 entire line of machines produced. The general 
 manager should work diligently, earnestly and 
 continually to better and improve the esprit de 
 corps of his organization. Whenever the fore- 
 
12 RULES OF MANAGEMENT 
 
 man of any department is not a big enough 
 man to handle his work successfully, he should 
 be replaced as soon as the right man is found. 
 It is not out of place to emphasize again that 
 understudies must be present in all depart- 
 ments, so that the place of any important man 
 may be filled at any time and for any cause. 
 
 In regard to his own qualifications and atti- 
 tude toward his work: The general manager 
 should not make the far too common mistake 
 of failing to fit himself for the position. Men 
 frequently accept managerial positions without 
 having any adequate conception as to how little 
 fitted they are to fill such a responsible posi- 
 tion. They seemingly hope to get along by 
 simply having the title. Such men lack the 
 first requisite, namely, initiative, or the ability 
 to at once see what is wanted, and then bring 
 their experience to bear upon it with confidence 
 in their own judgment. Iniative selects that 
 part of the work to be attacked first, where 
 intelligent effort will do the most good. 
 
 Let us outline the experience and qualifica- 
 tions of a man fitted for the position of manager 
 in a large machine-tool shop, and then trace 
 the method by which he should take up his 
 
THE GENERAL MANAGER 13 
 
 new duties and responsibilities. Such ex- 
 perience might be first a technical education, 
 then a regular machine-shop apprenticeship, 
 followed by four years of work as a journeyman 
 in some one of the best machine-tool shops in 
 the world, then four years as foreman, in charge 
 of a toolroom in one of the best gasoline- 
 engine factories in this country, followed by 
 six years as general manager of a large machine 
 manufacturing company. Proofs of this ex- 
 perience, a pleasing personality, and good 
 recommendations from former employers would 
 be sufficient to qualify a man for the position 
 of general manager, such as we are discussing. 
 
 In order that he may have full knowledge 
 of every department of the plant he is to handle, 
 and how it is organized and officered, a set of 
 written instructions, such as these, is given 
 to him for his information. In addition to 
 this, the routine of work, from its conception to 
 its finish, in the different departments, is 
 given. Following these preliminaries, the fol- 
 lowing simple method will assist wonderfully 
 in helping him to be at home in his new position 
 in a short time. 
 
 Any live, going machine-making concern has 
 
14 RULES OF MANAGEMENT 
 
 on its books orders in all stages of completion. 
 The new manager being well posted in machine 
 making in all its branches, will make headway 
 by taking a list of all orders, with their promised 
 dates of delivery, to see if any are overdue, 
 and if so, what is needed to complete them, and 
 assist immediately in getting them completed, 
 then take the next most urgent orders in like 
 manner and so on, until all of the details 
 are well in hand. In two weeks this work 
 will put the new manager in contact with 
 every department and every executive in the 
 establishment. 
 
 While getting this experience, he will have 
 come in touch with any lame spots in the 
 organization, and begin in a small way to 
 better conditions in every department, in so far 
 as they need his help. If he has initiative, 
 his vision will enlarge with his new experience. 
 He will see what is needed and soon begin to 
 really improve the quality of the work. 
 
 When all this has been properly cared for, if 
 he has ambition to increase the output, he 
 will next get from the cost department a state- 
 ment as to what each department is capable 
 of producing. Then he can add or increase 
 
THE GENERAL MANAGER 15 
 
 such departments as have the least relative 
 capacity, in order to bring about the needed 
 balance. This process can be continued 
 throughout the plant. 
 
 It is unwise, and may be ruinously expensive, 
 to upset any department by making drastic 
 changes too soon. It is far better to obtain 
 both better quality and greater output by 
 getting the limit from a department as it 
 stands. This will frequently change the man- 
 ager's viewpoint, as to what additional equip- 
 ment may be required, and may, on the other 
 hand, result in consolidating one department 
 with another. This is the course of speeding 
 up, as opposed to getting swamped with too 
 much equipment. 
 
 Finally, the general manager must be very 
 strict with the foremen, in regard to the matter 
 of frequent changes of men. Too frequent 
 changes prevent an up-to-date condition, and 
 the building up of a well-posted set of men. 
 Each foreman must be exceedingly explicit in 
 giving out work to his men, especially such work 
 as they are not thoroughly acquainted with. 
 He must require them to repeat back to him 
 the instructions given, and get them to state 
 
16 RULES OF MANAGEMENT 
 
 how they will do the work, at the same time 
 putting into their hands every facility for 
 doing it well and quickly, and thus avoid spoiled 
 work and 4ost time. 
 
Ill 
 
 ASSISTANT MANAGER 
 
 A/'OUR first duty is to see that the head of 
 every department carries out his written 
 instructions, and to show him, should occasion 
 arise, that upon the more or less efficient man- 
 ner in which instructions are carried out de- 
 pends his future advancement in pay and posi- 
 tion. Study all orders as they are received, 
 give delivery to the order department on them, 
 and especially where they have any special 
 features. Keep in touch with the drawing 
 room, pattern room, toolroom, cost depart- 
 ment and purchasing department, until the 
 job is on its way in the shop. Then keep in 
 touch with the head tracer to see that work 
 does not lag and that our promised delivery is 
 kept. 
 
 Observe whether the office routine blocks the 
 movement of orders in any way and whether 
 the handling of the orders through the drawing 
 
 2 17 
 
18 RULES OF MANAGEMENT 
 
 room is right. Observe, too, if the method can 
 be improved upon. All this, of course, with 
 the consent of the head of the department. 
 See that all materials are of the right quality 
 for the work the parts have to do and that all 
 items required in the construction of the vari- 
 ous orders are in the raw stockroom. If not, 
 a special effort should be made to have them 
 there in advance of the time they are wanted 
 by the first operation department. 
 
 Keep in close touch with the pattern shop, 
 carpenter shop, storekeepers, sweepers, porters, 
 painters, pipe fitters, engineers, firemen, elec- 
 tricians and the shop fire department. See 
 that engineers clean the boilers every two 
 months with mechanical cleaner and report 
 immediately when coal or oil is not up to the 
 standard of quality. Prepare samples of coal 
 and oil for analysis every three months. 
 
 See that electricians blow out generators and 
 motors every two weeks, and clean out every 
 electric hoist once every six months even to 
 taking grease out of the gear box. Arc lamps 
 must be properly trimmed and cleaned and 
 incandescent lamps must be protected by 
 wire guards and kept clean. Keep in touch 
 
ASSISTANT MANAGER 19 
 
 with all late-comers, absentees and those 
 who fail to ring in; also take note of any pro- 
 duction department in which numerous changes 
 of help take place. Discover the trouble if 
 possible and supply the remedy. 
 
 See that each department has its full quota 
 of men and no more. Supervise the cost de- 
 partment and storeroom. Lay out a fixed 
 number of machines for erectors to finish 
 each week and name them. Issue orders to 
 the chief storekeeper for all stock orders to go 
 through the shop, and regulate their sequence, 
 always bearing in mind that all sizes of lathe 
 groups are on hand for assemblers to draw 
 from, and not too many of the sizes that do 
 not sell well. 
 
 Keep check on all defective and spoiled work 
 to see that it is properly charged back and 
 returned by the receiving departments and 
 stores and purchasing departments at the 
 end of each month. Check the monthly re- 
 port from the storeroom, of incoming and 
 outgoing material. Also check the monthly 
 report of the cost of sales of the previous 
 month, as compiled by the cost department. 
 These two reports should be out by the fifth 
 
20 RULES OF MANAGEMENT 
 
 of each month. Send daily reports to the 
 Metal Trades Association of all persons enter- 
 ing and leaving our employment. Keep 
 records of all accidents to employees and have 
 them reported to the insurance company. 
 
 Observe particularly that simple repair 
 orders are not delayed through red tape. For 
 instance, an order for a steady-rest, compound, 
 full-swing, taper attachment, apron parts of 
 any date, sliding tumbler, or in fact all repairs, 
 should be classified as to date of design, pat- 
 tern, style, etc., and kept on hand in a quan- 
 tity to suit the demand, this demand to be 
 determined by the number of orders received 
 during the last six months. In fact, these 
 could be kept on hand finished. Many of 
 them are so trifling that the cost of keeping 
 them is hardly to be considered. They are 
 too costly, however, to put through alone. 
 
 See that the routing department allows 30 
 minutes for setting-up for all pieces six in num- 
 ber or less. See that all heads of departments 
 assist in moving their production toward the 
 store department. Also see that the fire drill 
 is practised not less than once a month and 
 that 'all armatures and brushes on motors 
 
ASSISTANT MANAGER 21 
 
 for shop use are in apple-pie order as to clean- 
 liness and smooth, even surfaces upon which 
 the brushes operate. Also inspect the general 
 shop orderliness. 
 
 Keep a daily running list of all hourly rates 
 except the office payroll, and have the time 
 department show you every hourly rate set. 
 Keep in daily touch with the premium earned, 
 by whom and for what. Large premiums 
 are only due where the job shows they were 
 increased month by month and through long 
 periods of time. When the earnings are large 
 on the first performance of the work, a mis- 
 take has been made in the first setting. The 
 incoming-material department, for erection 
 work, will need the cooperation of the cost 
 department, and for spoiled work that of the 
 purchasing department. 
 
 On receiving the weekly production report 
 from the man in charge of moving the work, 
 check it over carefully and determine whether 
 the machines specified will be finished. If not, 
 notice must be given at once so that the cus- 
 tomer can be advised of the delay, thereby 
 obviating unnecessary correspondence. 
 
 Whenever a piece is changed or canceled, 
 
22 RULES OF MANAGEMENT 
 
 the drawing department must notify the 
 cost department in writing, to be filed with 
 the corresponding parts list, and the cost de- 
 partment in turn must notify the tracing de- 
 partment to recall both the ticket and the pre- 
 mium tickets for that particular piece. The 
 pieces, with the ticket attached, must be de- 
 livered to the storeroom and the premium 
 tickets to the cost department. Foremen 
 must examine the work coming into their de- 
 partments and see that it corresponds to the 
 material called for on the attached shop-order 
 ticket. 
 
 The premium ticket should, where possible, 
 remain with the work until the inspector has 
 O.K'd the quality of the work. These tickets 
 are to be signed by the inspector and turned 
 into the cost department. No changes are to 
 be made on any premium ticket without con- 
 sulting the cost department. No premium 
 will be paid on any ticket where this rule 
 has been violated. Eliminate wherever pos- 
 sible the use of continuation and helper's 
 tickets. Receive the report of the man in 
 charge of the assembling as to whether his 
 requirements are being thoroughly met by the 
 stores department. 
 
ASSISTANT MANAGER 23 
 
 When you find yourself unable to carry out 
 all the items of work that seem to belong to the 
 successful operation of any one department, 
 it is suggested that you adopt the plan of in- 
 vesting the man in charge of the delinquent 
 department with a little more responsibility. 
 If he cannot carry it, perhaps some of his sub- 
 ordinates can. Good men are occasionally 
 discovered by this method. 
 
 When you satisfy yourself that any man in 
 charge of a department has no interest in it 
 beyond his pay, or the ending of the day, try 
 to correct his point of view. If this cannot be 
 done look around for someone to replace him 
 and in order that his department may not be 
 forgotten place over it the sign DVL-K 
 Interpreted this means: D needs to improve; 
 V should be replaced; L this department needs 
 an assistant; + double up with some other 
 department, etc. Keep careful watch on the 
 sneak, the fourflusher, the man who tells tales, 
 and particularly on anyone making a false 
 statement, through laziness or indifference, or 
 because he is a liar. Fire such men; they 
 only do harm. 
 
IV 
 
 CHIEF ENGINEER AND DESIGNER 
 
 rilHE chief engineer and designer shall design 
 -* all new machines, attachments therefor, 
 and all special appliances for orders that carry 
 with them guarantees of time or production. 
 The engineering work of the plant, covering 
 the power, sprinkler system, labor-saving ap- 
 pliances for expediting the movement of work, 
 etc., shall also be designed by him. 
 
 His decision is final on designs, but the 
 superintendent of manufacture must, at all 
 times, be consulted where modifications in 
 designs are necessary to shop economies. He 
 must also listen to suggestions from the man 
 in charge of the pattern shop and the head of 
 the toolroom force. 
 
 He shall be called upon by the selling depart- 
 ment when information on questions of per- 
 formance of product are requested in their 
 daily mail, should the man in charge of the 
 
 24 
 
CHIEF ENGINEER AND DESIGNER 25 
 
 correspondence not have sufficient knowledge 
 to answer them safely. He should also see 
 the first machine of any new design thoroughly 
 tested as to the work it must perform before 
 leaving the shop, and insist that no part is 
 passed upon and shipped if in any way in- 
 complete as to strength, ease of handling, and 
 thorough adaptability for top-notch perfor- 
 mance of the work it is designed for and sold 
 to do. 
 
 When a report from the user of the tools 
 makes expense necessary and the fault is ours, 
 the engineer must either assume responsibility 
 or fix it on the department head at fault. The 
 general manager shall then take the matter 
 up with the responsible party. He shall do 
 everything possible to assist the drawing room 
 to establish every economy of operation and 
 consult the manager when any new equipment 
 is found advisable in the drawing room. He 
 shall keep well posted on the text and adver- 
 tising pages of technical journals, regarding 
 up-to-date drawing-room practice as well as 
 improvements in our line. 
 
 Designs must be complete as to all important 
 details before going to the drawing room. 
 
26 RULES OF MANGEMENT 
 
 Patterns must be examined before going to 
 the foundry so as to catch and correct any 
 ruinous weakness before castings, forgings, etc., 
 are made. It is also the chief engineer's duty 
 to pass upon the purchase of new machinery 
 and equipment when the need of this is ad- 
 vocated by various department heads. He 
 must listen to all suggestions from department 
 heads and in fact all employees, and when 
 such suggestions are considered of value, use 
 them, or if thought advisable, bring them up 
 in meeting. 
 
 It is his further duty to make mechanical 
 tests of the various types of machines manu- 
 factured by the company. These tests shall 
 include horse-power consumption, the cutting 
 tools used, frictional losses, and all items 
 covering the general efficiency of the tools. 
 These data should be tabulated and kept for 
 permanent records. 
 
DRAWING ROOM 
 
 HPHE man in charge of this department must 
 * be responsible for prompt delivery to the 
 routing departments of every repair order 
 coming to it, the same day that the order 
 appears in the drawing room. If the order 
 deals with special work, the drawing room 
 must advise the special department how many 
 hours or days it will require to deliver the 
 drawing for the order to the routing depart- 
 ment. 
 
 If the order deals with new transient work, 
 the drawing-room superintendent and assistant 
 must advise the correspondence department 
 how soon it can be delivered to the pattern 
 shop, the time to be based on the present work 
 in the drawing room, men available, and the 
 hours of performance. It must then be de- 
 livered in accordance with the time given. 
 
 Separate filing places, for repairs, transient 
 
 27 
 
28 RULES OF MANAGEMENT 
 
 new work, and permanent manufacture should 
 be provided for and rigidly kept. Transient 
 drawings and even sketches should be provided 
 with filing facilities that will make them 
 instantly procurable when needed. These 
 should be divided and subdivided in the index 
 under different headings such as repairs, 
 transient, crankshaft, stud work, etc., this to 
 include devices to turn pipe rolls, small and 
 large blank gear jobs, pulley jobs, armature 
 shafts, crankshafts of different throws, in 
 inches, in number of throws, in diameter size, 
 in length, also the special equipment used in 
 each case. 
 
 The tracing of drawings should be assigned 
 to girls, if deemed wise, and a separate room 
 can be provided accessible only to the head 
 draftsman, his assistant, and the filing clerk. 
 An aide for this blueprinting, and possibly 
 filing, may relieve the head draftsman and 
 assistant to whatever extent may be deemed 
 wise; this same aide being responsible for the 
 delivery and time promised on repairs and 
 transients. 
 
 When a call for the man in charge comes 
 from the shop he should demand to be told on 
 
DRAWING ROOM 29 
 
 what business; then if the subordinate will 
 answer, send him in response. Both chief and 
 assistant should keep thoroughly posted on 
 up-to-date practice, as published in the technical 
 journals and index the good things or put 
 them in a scrap-book. If drawings that cause 
 great expense by reason of mistakes in either 
 design or lack of care are delivered to the shop, 
 the greatest fuss possible must be made by 
 the man in charge. 
 
 When the man in charge decides that anyone 
 in his department is either indifferent or lazy, 
 discharge him or her at once. Keep a strict 
 eye on this and eliminate continually until a 
 reliable force is obtained. Never discharge a 
 person until after careful consideration, it is 
 decided that such discharge is warranted. 
 
 New orders for repairs and specials must 
 receive instant attention, and the one who 
 deals with them must be trained to understand 
 and carry out their delivery to the routing 
 department the same day they are received, 
 even if additional help must be used now and 
 then. 
 
 You are at liberty to inquire of the manager 
 or assistant manager at all times the routing 
 
30 RULES OF MANAGEMENT 
 
 order of routine or new work. An order has 
 been given and posted in the stenographers' 
 room that the number of all drawings sent out 
 shall be written in the letter pertaining to 
 them. 
 
VI 
 
 PURCHASING AGENT 
 
 THE purchasing agent must look after all 
 new building contracts and the main- 
 tenance of plant and buildings. He is invested 
 with the purchase of all material, small tools, 
 supplies, etc., and must look after all purchases 
 until they are received. It is his further duty 
 to see that all material that is short is obtained 
 as promptly as possible. When the requi- 
 sition is handed in by the storeroom or shop 
 foremen, he must look up purchases for the 
 previous six months and then determine 
 whether by buying in quantity a better price 
 can be obtained. This should be done for all 
 items. 
 
 He must audit all invoices as soon as mate- 
 rial is received; keep check on all defective and 
 spoiled material, and see that it is charged back 
 monthly to the proper party by the receiving 
 and stores departments; tabulate all material 
 
 31 
 
32 RULES OF MANAGEMENT 
 
 received according to classification; check off 
 the storeroom report each month for inventory 
 purposes and see that the incoming-material 
 report balances with the cashier's report. 
 
 He is further required to maintain a per- 
 petual inventory of all material charged to the 
 storeroom; make up raw-material prices for 
 use ea'ch month by the cost, stores and statisti- 
 cal departments; see that all equipment for 
 machines to be supplied to the customer is in 
 the shop in time to keep the promised delivery; 
 keep up-to-date catalog files for general refer- 
 ence purposes, issue orders to the shop for all 
 work for stock machines; send samples of dril- 
 ling of all steel bars received to the chemist in 
 order to see that the shipment comes up to con- 
 tract specifications; receive the report of lathe 
 beds on hand each Monday and make up an 
 order from this on the basis of four months' 
 requirements, as shown by the sales of pre- 
 vious years. 
 
 When a good article used in construction, 
 such as steel, bronze, paint, etc., is found do not 
 change unless for exceptionally good reasons. 
 Particularly, do not allow the price alone to be 
 the cause of changing. This also applies to 
 
PURCHASING AGENT 33 
 
 all shop supplies. Be courteous in your treat- 
 ment of all salesmen; some day you may be 
 one yourself. 
 
 Be fair and just in all deals. Use your 
 knowledge of prices if you think it advan- 
 tageous, but never disclose names. The man 
 receiving such information from you will 
 always make use of it to your disadvantage. 
 Should a salesman sell you goods at a loss 
 through error in figures, and later come and tell 
 you of it, allow him to change his price, after 
 you have satisfied yourself as to what the right 
 price is. By granting him this favor, you 
 make a good friend. 
 
 The attitude of the executives in the shop 
 toward you will, in a large measure, be a re- 
 flection of your attitude toward them. When 
 quick action is required of you to get material, 
 give it the very best attention you know how; 
 for lack of material to complete a job means 
 a halt in the system, consequently a loss of 
 time and time is the equivalent of dollars. 
 
VII 
 
 INCOMING MATERIAL AND STORES 
 DEPARTMENT 
 
 fTlHE man in charge of this department shall 
 -* have charge of all help used in connection 
 therewith. He shall be responsible for the 
 delivery, in the department where delivery is 
 wanted, of every item needed, either for 
 routing special or repair parts. This shall 
 include all steels bought cut to length, or cut 
 from the bar, and all castings either in iron, 
 steel, bronze or aluminum. 
 
 He must, therefore, keep in exceedingly close 
 touch with the purchasing and routing depart- 
 ments. He must instantly report to the 
 assistant manager when parts are unobtain- 
 able, putting this information in writing and 
 giving the date when ordered. A duplicate of 
 this should be made so that the assistant 
 manager may see at once where the fault lies. 
 He must get his order O.K'd by the party 
 
 34 
 
INCOMING MATERIAL 35 
 
 receiving it in the purchasing department. He 
 shall have general supervision of the stores 
 department and of incoming and outgoing 
 stores. This includes both rough and finished 
 material and parts; also assembled machine 
 groups awaiting setting up into larger groups 
 and finished machines. 
 
 When accommodation is lacking in the 
 stores department he shall see the assistant 
 manager as to ways and means, and consult 
 him also as to rates paid all help in his depart- 
 ment. He must check up all standard parts. 
 If all the material is in the first operation de- 
 partment and the order has no special attach- 
 ment, it can be marked O.K. and filed. 
 
 If the order has a special attachment and 
 no parts are in stock, he must immediately 
 visit the drawing room and see that drawings 
 are made and delivered in order that the 
 promised delivery be kept. The speed at 
 which the job passes through the drawing 
 room determines the date of delivery of the 
 order. 
 
 After drawings have been issued, he will see 
 that the patterns are promptly started upon, 
 seeing the head of the pattern department in 
 
36 RULES OF MANAGEMENT 
 
 regard to delivery. By using good judgment 
 in getting patterns started before all drawings 
 are out of the drawing room, much time can 
 be saved. He should give preference to the 
 parts that have the most work on them in the 
 pattern shop and foundry. The pattern shop 
 should always get out the most difficult pieces 
 first, leaving the small jobs for later, in order 
 to give the foundry ample time to make good 
 connection. 
 
 When all drawings are out it will be necessary 
 to follow up the routing department to see 
 that the job is routed. The cost department 
 must then get out tickets and deliver them to 
 the receiving department, so that when castings 
 and all material are received, the tickets can 
 be instantly attached and the parts moved to 
 the first operation department. 
 
 As soon as the first pattern is completed it 
 must not be allowed to lie around the pattern 
 shop waiting for the remaining patterns, if 
 there are any, but should immediately be sent 
 to the foundry and a delivery obtained from 
 the man in charge, who should be held re- 
 sponsible for the delivery. After castings are 
 completed, close watch must be kept that they 
 
INCOMING MATERIAL 37 
 
 are loaded on the first wagon that delivers 
 castings to the shop, otherwise they are likely 
 to be sidetracked for days, as past experience 
 proves. 
 
 Nine-tenths of the special castings should be 
 put through the foundry in from one to three 
 days. It is very important that the man in 
 charge of the material and stores department 
 visit the foundry every day, if necessary, to 
 look after castings that are in a hurry. He 
 should keep close watch on the foundry to see 
 that hurry orders are expedited, otherwise 
 castings which are plain heavy pieces and 
 which are not wanted for months will be given 
 the preference. Great care must be exercised 
 in ordering lots through the foundry to see 
 that heads, carriages, aprons, tails, cone 
 pulleys, quadrants and gear covers are rushed 
 through first, because of the slow headway 
 that is made in the shop on these parts. As 
 soon as castings are received they should 
 immediately be cleaned and stored until all 
 parts are received. This means everything. 
 
 The cutting-off department will be under 
 the jurisdiction of the material and stores 
 head so that he can take care of all cut-off parts, 
 
38 RULES OF MANAGEMENT 
 
 such as steel bars and brass tubing. He will 
 consult the purchasing department if an order 
 requires any of the following parts which are 
 not in stock, and keep a daily follow-up system 
 with the purchasing department: Steel cast- 
 ings, brass tubing, drop forgings, pipe fittings, 
 lead-screw stock, controller rod stock, pans, 
 pumps, countershaft steel covers, all bought 
 screws, nuts, washers, pins, keys, springs, oil 
 cups, oil-hole buttons, wicks for oiling aprons 
 and spindle journals, name plates, index 
 plates, instruction plates, ball bearings, turrets 
 on bed, carriage and tool post, motors, con- 
 trollers, resistance boxes and all electrical 
 attachments, triple gear head, internal gears 
 bought from parties on outside, white metal 
 for lathe journals and all steel bars and brass 
 tube stock. 
 
 Forgings for orders made in our shops will 
 come under him. After all parts are received 
 for order, they should have a ticket attached, 
 be loaded on trucks and sent to the first opera- 
 tion department. 
 
VIII 
 
 SUPERINTENDENT OF MANUFACTURE 
 
 HPHE superintendent of manufacture may lose 
 thousands of dollars to the company if men 
 or boys in any department are allowed to lose 
 time because they have not been instructed 
 properly in each item of work they are to 
 perform. Such instruction is required as it 
 breeds confidence in employees. 
 
 In order that this confidence may be present 
 in everyone, the foreman of the department 
 must be thoroughly posted, that he may in- 
 struct each operative under him. He must 
 also see that the proper tools, drawings and 
 templates are given with the job, and then 
 inspect the beginning of the job to know that 
 it is being done properly. The foreman must 
 also see that men start work with the starting 
 whistle and continue until the stopping whistle. 
 
 Ten years ago, when our equipment of 
 machine tools, jigs and templates was not 
 
 39 
 
40 RULES OF MANAGEMENT 
 
 nearly so good as now, our earnings per the 
 amount of capital invested were greater. I 
 believe this was due to the fact that we made 
 a more steady use of every man and machine, 
 besides directing each man's efforts to better 
 advantage. Every inspector should be seen 
 every day, and every minute of his time 
 should be devoted to some piece of work; his 
 time might profitably be divided into details. 
 
 The superintendent of manufacture should 
 make a complete round of the entire works 
 every morning because the work in every 
 department is changing almost with every 
 hour and no trip can be made that will not 
 disclose some item upon which economy may 
 be practised. The absence of such a daily 
 trip keeps these items from his sight. He 
 should make notes on the trip in the morning 
 and see that the work covered by the notes is 
 properly on the way in the afternoon. He 
 must not miss this trip one single day in the 
 year. 
 
 In making the trip the superintendent of 
 manufacture should begin at his office in shop 1, 
 and notice whether each and every job in this 
 department is being done as well and as econom- 
 
SUPERINTENDENT OF MANUFACTURE 41 
 
 ically as possible. The polishing department, 
 the cutting-off department and the black- 
 smith shop should then be visited and every 
 operation observed, noting especially whether 
 the men are keeping their machines well oiled, 
 their cutting tools in first-class shape and 
 whether the blacksmith work and the heat 
 treatment are being done as they should be, 
 and whether more men are being used than the 
 work requires. 
 
 He should glance through the stockroom 
 noting conditions there, then visit the lower 
 floor of shop No. 2, taking the same note of 
 every job on tailstocks and headstocks, vise 
 work, and then look carefully through the dril- 
 ling department, noting the tools, the work and 
 the men, to see what they are making of their 
 time. The same attention should be given to 
 the planers, the tool storage, grinders, rough- 
 ing lathes, spindle boring, turret work, engine 
 lathes, head boring, etc. 
 
 Shop No. 2 should be visited upstairs first, 
 taking a look around the pattern shop, the 
 babbitt bearing department, the lathe work 
 in the countershaft department, and through 
 the vise work in this department. Attention 
 
42 RULES OF MANAGEMENT 
 
 should then be turned to the toolroom. In 
 shop 1 the drill presses and the lead-screw 
 lathes should be observed to see if any im- 
 provement can be made there. The trip 
 should then continue through the grinding 
 and special departments, watching for the 
 same improvements. 
 
 In the milling and gear-cutting departments 
 the actual work on each machine should be 
 inspected, together with the machine and its 
 surroundings. It should also be noted whether 
 the operator thoroughly knows the job upon 
 which he is engaged. The tool storage for this 
 department must also be inspected, and any- 
 thing that needs correction, corrected. The 
 vise benches clear to the painting should next 
 be inspected, giving each bench as much atten- 
 tion as it may need. 
 
 He should examine carefully the general 
 handling of the stores department as to econo- 
 mies. When going over the assembling and 
 routine work exceptional attention should be 
 given to the special vise and some attention to 
 the turret, motor-drive and repair departments. 
 
 The superintendent must not fail to make 
 note of the things to be done, so that the after- 
 
SUPERINTENDENT OF MANUFACTURE 43 
 
 noon may actually do what the forenoon indi- 
 cates is needed. Each day a trip should be 
 made over all the planers to see that good and 
 economical work is produced and that the men 
 and machines are right. 
 
 He should everywhere note any time wasted 
 through wrong impressions of nicety or accu- 
 racy imparted to the men by the foremen. In 
 so far as lathes are concerned, where the work 
 must be ground after leaving the lathe, it is not 
 necessary to work exceedingly close to size, the 
 limit for grinding generally being understood 
 to mean a maximum of 0.025 in. and a mini- 
 mum of .010 in. Micrometers or other fine 
 gages must not be used where not needed. 
 
 Handling men and work is one of the most 
 important duties of the superintendent of manu- 
 facture. If any routine work is without time 
 limits, they should be established. No change 
 in premium allowance should be made unless 
 the method of doing the work, or the work, de- 
 parts from the vogue when the premium al- 
 lowance was first set. 
 
 Any department where a low grade of labor 
 is used is likely to fall into bad practices. At- 
 tention in this particular is called to the cut- 
 
44 RULES OF MANAGEMENT 
 
 ting-off department, which is likely to fall into 
 great expense on machines and cutting tools 
 through the neglect of the superintendent of 
 manufacture to give daily attention to the 
 grinding and setting of tools, the speeds, feeds 
 and temper of tools; to whether the machines 
 are well oiled, running smoothly and the place 
 orderly; whether the men having the grinding 
 tools are thoroughly posted on how to grind to 
 the best advantage, and whether one man may 
 not do all centering and hacksaw work on flat 
 and square stock, while two others fill orders for 
 all round work in their line. 
 
 Spoiled work should be exhibited once a 
 week for each department although not neces- 
 sarily taken to that department for the pur- 
 pose. This work should be taken up item by 
 item with each foreman so as to lessen the num- 
 ber of pieces coming under this head with 
 each exhibit. Constant watch should be kept 
 on the patterns, and too much metal should 
 not be removed. 
 
 The work of the superintendent of manu- 
 facture is the most important of all the work 
 in the factory and requires constant and care- 
 ful attention because of his control of every 
 
SUPERINTENDENT OF MANUFACTURE 45 
 
 productive man in the house. He should 
 know that each individual is producing work 
 of the very best quality in the minimum time 
 in which such work should be done. In order 
 to facilitate the movement of the work, he 
 must assist in ways and means of stopping any 
 unimportant job in order to get through a 
 rush job unless he should see fit to make it 
 in the special department. 
 
 The screw-machine department foreman 
 should know thoroughly how to set up and 
 start any automatic lathe, just as well as he 
 knows how to do a piece of work in any 
 machine that is not automatic. He should 
 also know when all machines are running to 
 their full efficiency. 
 
 The very nature of the work of the superin- 
 tendent of manufacture will make it necessary 
 that he be thoroughly familiar with every 
 item in the toolroom. He has full power to 
 handle both the foreman and the men, and as 
 this entire department is one of expense, care- 
 ful attention should be given to see that every 
 man is economically producing work of the 
 right character. 
 
 Painting should receive careful attention, 
 
46 RULES OF MANAGEMENT 
 
 both as to economy and quality. Changes of 
 paints or methods should not be permitted. 
 In making notes of things to be done the 
 superintendent of manufacture will encounter 
 a number that make it necessary to consult the 
 office; others will require a conference with the 
 drawing room, and still others, the pattern 
 shops and toolroom. Such items should be 
 grouped so that when a visit to the office is 
 made all the items may be covered. As chief 
 of the fire department the instructions of the 
 superintendent of manufacture include not 
 less than one fire drill each month. He should 
 take notes through the week so that at weekly 
 meetings such things as need discussion may 
 be brought up. 
 
IX 
 
 ROUTING DEPARTMENT 
 
 fTlHE greatest drawback to rapid movement 
 * of work through any shop is the absence 
 of an Al man to think over the job and the best 
 way to do it. This should be done by the fore- 
 man of the department in which the job is 
 placed. In the absence of a foreman with 
 these qualifications, the production superin- 
 tendent should think for him. 
 
 The mam object of a routing department 
 (which in some shops is called a planning de- 
 partment) is to think for the foreman and pro- 
 duction superintendent. In starting any job 
 through the shop this department establishes 
 the time it should take. If only a few pieces 
 are to be made, say six or less, it allows as 
 many minutes to set up or prepare to do 
 the work as in its judgment will be consumed. 
 When larger numbers of pieces are to go 
 through, this time allowance may be neglected. 
 
 47 
 
48 RULES OF MANAGEMENT 
 
 Example: If only one piece is wanted and 
 chucks, follower rests, taper attachment, rear 
 tool rests, diameter or length stops, or special 
 chasing tools, bent chasing, turning or planing 
 tools are necessary, such as special dogs, 
 clamps, etc., the time allowance must be made, 
 say from 10 to 30 minutes. If 30 pieces 
 are to be made, only one minute each need be 
 allowed, and this time may be decreased as the 
 number of pieces increases. 
 
 The production superintendent should be 
 consulted on items where the department is 
 uncertain. The department must be well in- 
 formed as to time in cutting off, also whether 
 casting cleaning is done on tonnage or time 
 allowance per piece. 
 
 All standard work is so well known in the 
 cost department that shop orders are made out 
 for it without its touching the routing depart- 
 ment except when changes have been made; 
 therefore, only specials and new work on which 
 time allowances have never been made come 
 to this department, in order that this class of 
 work may go to the cost department for shop 
 orders to be issued. 
 
 The production superintendent should keep 
 
ROUTING DEPARTMENT 49 
 
 close track every day on work that is chang- 
 ing from special to routine, and change the al- 
 lowance either on that ground or on the altered 
 methods of doing the work and because of the 
 larger quantities in which it is done. He should 
 also take away the setting-up allowance as soon 
 as the number of pieces for which it is made 
 are exceeded. Lack of care in this depart- 
 ment on the part of its manager may cost the 
 company and men thousands of dollars. This 
 involves all foremen, the production superin- 
 tendent, the manager and his assistant. 
 
X 
 
 CHIEF CLERK 
 
 TT is the duty of the chief clerk to keep a 
 machine record ledger showing a record of 
 every machine from the time built to disposal 
 and shipping. To keep a card record of all 
 equipment of the plant, both machines and 
 fixtures; these cards to give all data as to 
 purchasing, cost and inventory value. To 
 keep a card record of all repairs to equipment, 
 both purchases and work done by ourselves. 
 To keep a card record of the jig equipment, 
 and in connection with this the inspection of 
 all finished jigs at the time of completion, 
 together with the cost. 
 
 He is further required to keep a record of 
 the inspection of all fire equipment, valves, 
 etc., making a weekly report. To keep a 
 ledger for goods in process, showing the lots 
 in process in the shop, the cost thereof and on 
 what orders used. He must compile a monthly 
 
 50 
 
CHIEF CLERK 51 
 
 statement showing the cost of all sales, repairs 
 and gratis items, and render a report to the 
 cashier, relieving and debiting the different 
 accounts. 
 
 Keeping an individual record showing the 
 cost of each machine and attachment, also on 
 what order sold, is another of his duties. He 
 is required to compile a monthly statement of 
 specials sold at a loss. Re-check all prices on 
 orders after they have been entered in the 
 order book. Re-check the distribution on all 
 incoming bills as to the proper account to 
 charge. He must dispose of any parts re- 
 turned, compiling the cost thereof, relieving 
 and debiting the proper accounts. 
 
 He is invested with all work connected with 
 inventory taking, figuring, balancing the 
 cashier's books and the final tabulating, also 
 all preparatory work during the year, compiling 
 reports and statements on such special data 
 as may be requested by the president or vice- 
 president. Tabulating and compiling prices 
 for new price lists when needed, and compiling 
 the cost of all attachments over the standard 
 equipment of the lathe and comparing them 
 with the selling price, are among his duties. 
 
52 RULES OF MANAGEMENT 
 
 He should pay off all foremen and shop men, 
 paying the foremen separately. He also has 
 the custody of all agents' contracts. 
 
 In making prices on special work or special 
 attachments our experience once showed that 
 the prices estimated were too low and that in 
 very many cases we sustained a loss because 
 the work did not go through in the estimated 
 time. The plan adopted recently is to refer to 
 our costs of similar articles and upon which we 
 lost money before, when making the price on 
 the new work. We have adopted the method 
 of keeping records of specials by photographing 
 them and writing on the reverse of the photo- 
 graph the cost, the selling price, to whom sold, 
 and any remarks necessary. This record 
 aids greatly in quoting prices on special 
 appliances without much danger of loss. We 
 also keep an additional copy of this record 
 for the use of the chief clerk for inventory 
 purposes. 
 
 It is the duty of the forman in the assembly 
 department to note on his shop order ticket 
 any change whatever that is a departure from 
 the standard. This is then made use of in the 
 cost and drawing departments. 
 
T 
 
 XI 
 
 COST AND TIME-KEEPING DEPARTMENT 
 
 HE duties of this department are to engage 
 all factory hands and keep their records. 
 After hiring, the applicant is given a time 
 register number and all necessary information 
 relative to starting work. An employee's 
 record card is made out and placed on file for 
 rate. When a vacancy occurs the man re- 
 sponsible for hiring is notified of the rate of 
 the previous employee and his average pre- 
 mium earnings per week. At the end of two 
 weeks this employee's premium earnings are 
 figured and a statement of his premium with 
 that of the man holding the position previously 
 is given to the man responsible for hiring. 
 
 The production department receives infor- 
 mation from the assistant manager in the 
 form of a requisition issued by the storekeeper, 
 for parts required to complete lots as per the 
 delivery sheet. Shop orders are made out in 
 triplicate form. The original is retained as a 
 
 53 
 
54 RULES OF MANAGEMENT 
 
 cost-department record; the first copy is sent 
 to the drawing room, and the second copy 
 goes to the superintendent's office. The draw- 
 ing room provides the bill of material or 
 parts list, from which are issued the traveler 
 or shop tag, the premium and time ticket and 
 tracer ticket. The traveler is sent to the 
 material clerk for raw material, the premium 
 ticket goes to the department foreman, and 
 the tracer coupon to the tracing table. 
 
 All lots are figured from reports of finished 
 products given to this department by a chief 
 clerk (main office) currently. Material is 
 figured from weight tags handed in by the 
 material clerk. Labor cost is taken from 
 monthly entries in the goods-in-process ledger 
 showing wage and burden cost. All lots of 
 components and parts are figured upon receipt 
 of the order copy from the tracing department, 
 showing the lot as being completed and re- 
 ceived by the storekeeper. 
 
 The accounting department in the main 
 office is supplied with a summary of the pay- 
 roll for each month. This shows the divi- 
 sion of the payroll and from it the burden total 
 is calculated. The production rate and bur- 
 
TIME-KEEPING DEPARTMENT 55 
 
 den are figured by the accounting depart- 
 ment. 
 
 The time is automatically compiled by 13 
 " International" time recorders distributed in 
 various places throughout the shop. The 
 workman secures his time ticket from the 
 foreman or clerk in charge and rings in both 
 time and traveler ticket when starting an 
 operation, and, upon completion of the opera- 
 tion rings out these tickets and immediately 
 rings in tickets for his next job. These time 
 tickets are gathered by a boy every morning 
 and delivered to the punch clerk, who tran- 
 scribes the data onto punched cards. At the 
 end of each week these cards are balanced with 
 the shop payroll. The balance must be ab- 
 solutely correct to within a cent. 
 
 The punch clerk also transcribes the pre- 
 mium onto the punched cards; these cards are 
 also balanced with the shop payroll to within 
 a cent. The cards are then assorted into 
 productive and nonproductive groups; the 
 productive being filed for use in making up a 
 monthly recapitulation to be entered in the 
 goods-in-process ledger, after which they are 
 filed according to their respective shop-order 
 
56 RULES OF MANAGEMENT 
 
 numbers. The nonproductive are filed for 
 use in making up the summary of the payroll at 
 the end of each month, and then filed accord- 
 ing to their respective department numbers. 
 
 The workman's premium is figured and paid 
 each week, the premium tickets being handed 
 over to the premium clerk by the punch clerk 
 after all data have been transcribed onto 
 punched cards and balanced with the payroll. 
 The foreman's premium statements are made 
 up each week, but are not paid until the last 
 Saturday of the month or the first Saturday of 
 the following month. A list of late-comers is 
 handed to the superintendent's office each 
 morning. This list is made up from the time 
 clock in the time-keeping department. 
 
 Shop orders for all jigs and tools made in the 
 shop are issued by this office in duplicate; the 
 original is sent to the toolroom, and the dupli- 
 cate retained in this office. When a jig is 
 finished, the original comes back to the office 
 and the cost is figured upon the duplicate, 
 which is then handed to the chief clerk (main 
 office) for inventory purposes. The superin- 
 tendent is also supplied with a book record of 
 all jigs and tools made in the shop. 
 
TIME-KEEPING DEPARTMENT 57 
 
 All routing is supervised by the routing clerk 
 in the superintendent's office. This applies 
 principally to alterations of previous routing 
 and also the routing of any new parts. An 
 accurate record of through routing is kept in 
 the cost department; also a record of the 
 premium limits. A record of all work spoiled 
 in the shop is kept by this office. A record 
 of all accidents is kept and the necessary 
 reports issued to the insurance company. 
 
 The entire shop payroll is made up by this 
 office and handed over to the cashier on Satur- 
 day morning, complete, ready to have the 
 money placed in the envelopes. A Metal- 
 Trades quarterly report is made out every 
 three months. A record is kept of each em- 
 ployee's check number, name, hourly rate, 
 wage and premium earned per month, in such 
 shape that comparisons can be made by the 
 assistant manager at any time, showing the 
 employee's increase in rate, increase in hourly 
 attendance per month and his premium-earn- 
 ing capacity. This form is compiled so that a 
 six months' tabulation of each man appears on 
 the one sheet. 
 
XII 
 
 OPERATION OF PREMIUM PLAN 
 
 plan divides the saving equally, namely, 
 for every two hours saved the workman re- 
 ceives one hour extra pay at his hourly rate of 
 wages. The company on its side furnishes 
 him with ample facilities in power, tool steel, 
 belts, special appliances, helpers and a suffi- 
 cient number of pieces to make the earning of 
 50 per cent, over his daily wage an easy matter. 
 The method of establishing the time allow- 
 ance is as follows: An expert machinist first 
 does the work, recommending to the tool de- 
 partment the special appliances needed for ! 
 the job and the best tools and methods. 
 When these are made and ready, the work- 
 man is shown how to do the work and the 
 time required. Fifty per cent, is added to 
 this time allowance and the work started, 
 with the understanding that if he fails to do 
 the work in the time allowed on the second 
 
 58 
 
OPERATION OF PREMIUM PLAN 59 
 
 piece he must report to the foreman, who 
 points out why he failed. In about eight cases 
 out of ten when this is done the operator 
 succeeds. 
 
 When work is started on this plan the time 
 allowance is never changed. Many men have 
 continued without any change in ten years, 
 and these old employees have averaged 50 per 
 cent, over their daily wage during th^t time. 
 An allowance of 30 minutes for setting-up 
 time is made on all jobs where the number of 
 pieces is six or less. When a larger number is 
 wanted, no allowance is made because in ten 
 pieces only three minutes are used on each 
 piece, while in 100 pieces the 30 minutes are ab- 
 sorbed by requiring only 1/3 minute per piece. 
 Automatic machines are seldom set up for as 
 small a number as six, the work being done in 
 the ordinary way. 
 
 A decided effort is made in all departments 
 on routine work to prevent premium workers 
 from losing time and going on day work. This 
 is accomplished by means of a clerk in each de- 
 partment, where the department is big enough 
 to employ one, whose duty it is to deliver 
 new work before the last job is finished, assist 
 
60 RULES OF MANAGEMENT 
 
 the man with his premium tickets, get appli- 
 ances, reamers, drawings, etc., ready for him 
 and take finished work to the inspection 
 department. 
 
 The foreman is always ready with a helping 
 hand. Courteous treatment of the men by 
 foremen is always insisted upon. All machine 
 tools are gone over once a month to see that they 
 are accurate and capable of doing work with 
 the greatest nicety. The foreman supplies an 
 ample amount of well dressed cutting tools and 
 good facilities for grinding them. Men are 
 paid every Saturday for all work finished 
 Thursday night. 
 
XIII 
 
 SUPERINTENDENT OF ASSEMBLY 
 
 THIS department should be supervised by a 
 man who is an all-round machinist, one 
 who thoroughly understands good planing, 
 lathe work, grinding, milling, gear-cutting and 
 especially good vise work. He should have ex- 
 ecutive ability to a marked degree. In order 
 that his department may give the best results, 
 he must have every item necessary to complete 
 the assembly of the entire machine ready to 
 assemble before he gives any of it to the group 
 assemblers. 
 
 He must have sufficient force to insist upon 
 and compel this. This means that he must 
 see the work and insist that unless all items 
 needed are delivered, he cannot carry out his 
 instructions. If the man in charge of moving 
 the work fails to get these items to him, then to 
 be forceful he must keep a book record of every 
 
 61 
 
62 RULES OF MANAGEMENT 
 
 case (giving articles and dates) where his 
 department has fallen down. 
 
 He must be broad enough to help the man 
 in charge of delivering the work to the first 
 operation department by making suggestions 
 to him as to the cause of delay and the remedy 
 as he sees it. He should have sufficient 
 ability to set not only every sub-foreman 
 right but also to show such sub-foreman 
 where every man under him is lame, either 
 in quality or quantity, and correct both the 
 man and the work. He should also be able 
 to keep full control of both sub-foremen and 
 their help. 
 
 He should give notice every morning to the 
 stores department as to his needs for the day, 
 and then if anything is reported not on hand, 
 at once notify the man in charge that these 
 missing parts will interfere with his promises. 
 He should then enter the item and the date 
 in his book, in order to show the man in charge 
 of moving the work that he is on his job. 
 He should thoroughly know, and instruct the 
 cranemen and truckmen in their duties in his 
 department. 
 
 He should know every time allowance for 
 
SUPERINTENDENT OF ASSEMBLY 63 
 
 every man and every job. Not one piece of 
 assembly should be made in his entire depart- 
 ment that he is not thoroughly posted on, 
 both as to quality and time. He should keep 
 strict watch of machines while being run off 
 to see whether the customer, either agent or 
 user, can find any fault with the paint or 
 finish, but particularly as to smoothness of 
 operation and accuracy. 
 
 He should keep strict watch on the general 
 assembling to see that no work is slighted, 
 that nothing defective is passed and that no 
 time is wasted through bad work from other 
 departments. On receiving weekly production 
 reports from the man in charge of moving the 
 work, he should check them over carefully 
 and investigate whether the machines specified 
 will be finished. If not, notice must be given 
 at once, so that the customer can be advised 
 of the delay, thereby obviating unnecessary 
 correspondence. 
 
 He should consult the assistant manager 
 regarding the building of split lots, and also 
 with the superintendent of manufacture on 
 methods of doing work, tools and fixtures. All 
 overtime work in his department should be 
 
64 RULES OF MANAGEMENT 
 
 eliminated if possible; at least kept down to as 
 low a point as possible. 
 
 He must look daily over the absent report 
 and send a boy for men when urgently needed; 
 also look up late-comers, and if they cannot be 
 corrected, replace them. Get out and give to 
 the assistant manager a monthly production 
 report specifying the finishing date and then 
 see that it is rigidly carried out. All overtime 
 work must be avoided if possible and especial 
 care and attention given to hiring men. Let 
 the first questions be : For whom did you work 
 last? How long? (If time has been short at 
 last place, then the questioning should be) 
 Whom did you work for before, and how 
 long? If the man is being hired for lathe 
 work ask him how many years' experience he 
 had, and with whom. 
 
 All the time these questions are being asked 
 and answered, look carefully at the man's 
 face and if he does not impress you as straight- 
 forward and truthful, do not engage him. 
 
 It is highly important that the superinten- 
 dent of assembly shall keep in harmony with 
 the superintendent of manufacture, and if at 
 any time a change is planned that may upset 
 
SUPERINTENDENT OF ASSEMBLY 65 
 
 the latter's first planning, it must not be made 
 without first consulting him. If routine opera- 
 tions must be disturbed by reason of an excep- 
 tionally large sale of any one size, this depart- 
 ment, the manufacturing department, and the 
 assistant manager, must decide promptly what 
 is best for the company and regulate work in 
 accordance with their decision. 
 
 Whenever a piece is changed or canceled, the 
 drawing department must notify the cost 
 department in written form, to be filed with 
 the corresponding parts list; and the cost de- 
 partment in turn must notify the tracing 
 department to recall both the ticket and 
 premium tickets. The pieces with the ticket 
 attached are to be delivered to the storeroom, 
 and the premium tickets to the cost depart- 
 ment. Foremen must examine the work com- 
 ing into their departments and see that it 
 corresponds to the material called for on the 
 attached shop-order ticket. 
 
 A premium ticket should, wherever possible, 
 remain with the work until the inspector has 
 O.K'd the quality of the work. These tickets 
 are to be signed by the inspector and turned 
 in to the cost department. No changes are 
 
66 RULES OF MANAGEMENT 
 
 to be made on any premium ticket without 
 consulting the cost department. No premium 
 will be paid on any ticket where this rule has 
 been violated. Eliminate wherever possible 
 the use of continuation and helper's tickets. 
 
XIV 
 
 HANDLING COMPLAINTS 
 
 \\ 7HEN a claim is made that a lathe does 
 * not bore straight, a good level should 
 be used and exceeding care taken in leveling the 
 lathe crosswise near the hsad, then about the 
 middle, then at the other end. A variation 
 of 1/32 in. in the location of the bubble will 
 make all the difference in the world because it 
 indicates that the weight of the lathe is not 
 properly distributed on the feet. Out of 5,000 
 cases there has never been one where this did 
 not correct the difficulty. 
 
 When a claim is made that a lathe does not 
 turn straight, use the same leveling operation 
 and then carefully test to see that the centers 
 match up with each other. It should always 
 be borne in mind that if a long piece is being 
 turned between centers without a steady or 
 follower rest support, the work will spring 
 away from the tool to some extent. With 
 
 67 
 
68 RULES OF MANAGEMENT 
 
 this exception there will be no question about 
 the lathe not turning straight. 
 
 When the lathe chatters, in nine cases out 
 of ten careful crosswise leveling will correct 
 the trouble. It is just possible that through 
 some special strain on a lathe, caused by 
 bolting heavy work to it, that the wings of 
 the carriage may spring slightly. After the 
 lathe is level, release the carriage from the 
 apron and gibs, take off the tool rest, turn the 
 carriage over and paint very lightly with red 
 lead, then rub on the ways and turn over 
 again. 
 
 Before making this trial be sure that the 
 lathe spindle fits the bearings properly and that 
 there is no looseness of the bearings where it 
 fits the headstock. Chatter will also occur if 
 the work extends too far from the chuck, or if 
 there is too great a distance between centers 
 without support. An ill-fitting, home-made 
 chuck plate will sometimes cause chatter. 
 Ill-fitting centers are also a cause of this 
 trouble. 
 
 In chuck work, care should be taken to 
 see that there is no end play of the spindle. 
 If the above does not correct the trouble 
 
HANDLING COMPLAINTS 69 
 
 carefully note the fit of the cross-slide on the 
 carriage, and if defective, correct. Having 
 the cutting edge of the tool below center will 
 cause chatter, either in the chuck or between 
 centers. The spindle may need adjusting by 
 drawing down the cap, also taking up end play, 
 especially in chuck work. Bolts which hold 
 the chuck to the chuck plate must be tight; 
 this is very important. 
 
 See that the screws that hold the headstock 
 to the bed are drawn down tight, and that the 
 gibs on the compound rest and cross-slide are 
 properly adjusted, always leaving free move- 
 ment, especially when using the taper attach- 
 ment. See that the lathe is level and resting 
 firmly on all feet. Always use straight pack- 
 ing, not iron taper wedges, packing underneath 
 legs for leveling; use cardboard if possible. 
 See that the centers are a perfect fit. By hold- 
 ing the finger on the V's of the bed close up to 
 the ends of the wings on the carriage you can 
 readily detect if the carriage does not lie solid 
 on the shears. To detect any vibration this 
 must be tried when the lathe is running with a 
 cut on. Pounding with the hand on the ex- 
 treme ends of the carriage wings will also dis- 
 
70 RULES OF MANAGEMENT 
 
 close any defect such as the carriage being 
 sprung. 
 
 When using tool holders, especially when 
 using cutting or parting tools, see that vibra- 
 tion does not occur from the clamping screws 
 which hold these small tools. The lathe may 
 be out of balance caused by adding chucking 
 fixtures to the face plate; or work may be of 
 an irregular shape or weight, which will cause 
 the lathe to chatter. A lathe speeded up too 
 high on some classes of work will cause chatter. 
 
 If the gears are noisy there is some fault in 
 the adjustment of the eccentric shaft upon 
 which the back gear is mounted. If this is 
 corrected the gears will run quietly. Gears 
 should not mesh so deeply that they touch the 
 bottom of the teeth. In patent head lathes 
 there is a possibility of twisting one eccentric 
 out of line with the other if the bearing should 
 be allowed to run dry. In that case see that 
 there is no twist in the connecting shaft between 
 the two eccentrics. 
 
 The claim occasionally made that a lathe 
 does not face straight, never applies to a Lodge 
 & Shipley lathe unless it has been in use longer 
 than five years, and in that case the remedy is 
 
HANDLING COMPLAINTS 71 
 
 to scrape the dovetail upon which the tool 
 slide moves until it lines up perfectly. In all 
 these matters leveling crosswise is of the ut- 
 most importance. It may be well to examine 
 the carriage to see that it has a correct bearing 
 on the bed. 
 
 The claim that the lathe cuts a drunken 
 thread occurs only when the faces of the outer 
 ends of the journal bearings receiving the resist- 
 ance from the lead screw are not true with the 
 bore. Inspection should make this a certainty. 
 To make sure, however, remove these bearings; 
 take a bar of steel as large as the outer diameter 
 of the journal, turn one end of it to fit the bore, 
 squaring the shoulder nicely, and test with red 
 lead to determine whether it has a perfect bear- 
 ing against the end of the bearing, remembering 
 that in the Lodge & Shipley lathe the pull is 
 against the outer end of the bearing whether 
 chasing right or left hand. 
 
XV 
 
 PATTERN SHOP 
 
 TT is very essential to have good machines in 
 * the pattern shop in order to eliminate hand 
 work. To produce good patterns at a low 
 cost, the following machines are required: 
 One 36-in. band saw, one 20-in. hand planer, 
 one 24-in. thickness planer, one ripsaw, one 
 30-in. full universal double disk sander, two 
 6-in. pony hand planers, one large wood- turn- 
 ing lathe, two small wood-turning lathes, one 
 band saw filer, one full universal oilstone tool 
 grinder, one 6-in. Fox bench trimmer to 
 every two men, two electric drills, one electric 
 glue heater holding two 1-quart glue pots and 
 12 benches. 
 
 With 12 hands employed to the superintend- 
 ent of this shop should have three first-class 
 journeymen, one medium hand, one pattern 
 recorder, five boys at the bench, one boy to 
 cut up, plane and glue up lumber, fillet, sand 
 
 72 
 
PATTERN SHOP 73 
 
 and finish patterns and core boxes, one boy 
 to varnish patterns, sweep the shop and oil 
 machines. 
 
 On large patterns use as many boys as pos- 
 sible to help the journeymen; have journeymen 
 rough up patterns and core boxes and boys 
 finish them. In this way you not only cut 
 the cost to less than half but it teaches the 
 apprentices how to build patterns and core 
 boxes, to read drawings and finish work prop- 
 erly. See that the varnish boy is bright and 
 willing so that when you are ready to advance 
 boys he is capable of taking the next boy's 
 place. If he has no varnishing to do have 
 him turn up stock core prints and get accus- 
 tomed to the machines. Keep in touch with 
 applicants and when men show restlessness 
 add a new man or men; if you have a disturber 
 get rid of him. Try, by all means, to keep 
 your old force together. 
 
 When you instruct your men to make a 
 good or cheap pattern see that they do it. 
 This is very important, as time can be wasted 
 on jig and one-casting patterns. Good pat- 
 terns, if not properly made, that is not nailed, 
 screwed, glued, etc., and generally constructed 
 
74 RULES OF MANAGEMENT 
 
 so as to be molded properly, will not last one- 
 tenth the time they should. In measuring up 
 patterns you cannot be too strict; call the men's 
 attention to any fault you find, both in 
 measurements and construction; keep at them 
 until you get what you want. 
 
 This is the way to avoid scraps and trouble 
 in the shop. Use good judgment with your 
 boys, don't dog them, treat them as you 
 would your own children or brother; be their 
 friend always remembering they are learning 
 and are not supposed to know it all. Do not 
 make the patterns for them, instruct them 
 how patterns are to be made, give them neces- 
 sary information on drawings, etc., but don't 
 have them running after you; teach them to 
 use their own judgment and find their own 
 way. This will relieve you of a good deal of 
 bother, save time in the end, and make better 
 pattern makers of your boys. 
 
 Keep your eye on the lumber pile, remem- 
 bering that dollars can be wasted easily; 
 instruct your sweeper how to separate waste 
 lumber; have the men use up small pieces. 
 Use good lumber on standard patterns; com- 
 mon lumber where it is not injurious, such as 
 
PATTERN SHOP 75 
 
 for battens, lagging, etc., and on jig and one- 
 casting patterns. The sweeper should be 
 cautioned, also, not to sweep up leather fillet- 
 ing, sandpaper or any other material that may 
 be mixed in shavings. 
 
 See that the men use the machines to the 
 best advantage, for the man who can do his 
 work with the smallest number of tools is 
 generally the speediest and best pattern maker. 
 Keep after your pattern recorder and see 
 that his records are correct; have him order 
 his castings promptly, put the patterns in the 
 proper place and keep a good supply of 
 material. 
 
 In order to see the results of patterns, you 
 should visit the casting shed, yard and shop. 
 Inspect all castings; if defects are found call 
 up the foundry superintendent, find out if the 
 defects are caused by the pattern or molding 
 and have the trouble correptetl. Visit the 
 foundry occasionally; see"~now your work is 
 being made; work with the foundrymen; make 
 patterns to suit them if you want them to 
 produce good castings. Visit the different 
 foremen in the shop and see if you are allowing 
 finish to suit them; if you are putting on the 
 
76 RULES OF MANAGEMENT 
 
 necessary lugs, etc., for clamping or chucking 
 castings. Be willing to make any change 
 they may desire in order to better their 
 conditions. 
 
XVI 
 
 TOOL-MAKING ROOM 
 
 A DRAFTSMAN should be kept right in 
 -** this department. Endeavor to keep the 
 equipment thoroughly up to its requirements. 
 And add other equipment to meet shop needs. 
 The leading hands on lathe work, planing, 
 milling, grinding, horizontal and vertical boring 
 mills, vises, etc., should all be Al men in their 
 line. All expensive measuring tools require 
 special care. If necessary, a safe should be 
 provided for them. 
 
 The chucking lathe is sufficiently important 
 to employ a good man, one who is thorough and 
 whose work will leave the chucking lathe with- 
 out fault. His kit of tools should at all times 
 be in good order and his machine clean and 
 orderly. This tool is considered capable of 
 doing more boring than any two engine lathes 
 in the department. 
 
 Considerable attention should be given to 
 
 77 
 
78 RULES OF MANAGEMENT 
 
 an examination of what tools are ordered 
 made as to whether they will serve the pur- 
 pose for which they are made and whether 
 we are likely to have to change the designs to 
 improve them, which sometimes means making 
 them twice a very costly lack of care. 
 
 Tool steels are mostly kept in this depart- 
 ment as are all small tools. Therefore, very 
 little running to the auxiliary toolrooms is 
 necessary. All auxiliary toolrooms should 
 either be under the general charge of the tool- 
 room foreman or should receive the special at- 
 tention of the general manager, who, in any 
 event, should issue instructions to all auxili- 
 aries six in all as to their relation to the 
 general toolroom. Lists should be kept by the 
 auxiliaries, of micrometers and other expen- 
 sive tools that might be and sometimes are, 
 carried off, and a report made to the assistant 
 manager when any are missing. 
 
p 
 
 XVII 
 
 FORGE DEPARTMENT 
 INSTRUCTIONS ON HEAT TREATMENT 
 
 ACK in case hardening compound or bone 
 dust. For surface case hardening in small 
 boxes, heat to 1650. Keep at this heat 4 hours 
 and plunge in water. For heavy articles con- 
 tinue the 1650 of heat 8 to 12 hours, accord- 
 hig to weight. 
 
 When case hardening is needed to penetrate 
 deeper, do not cool in water but in the air while 
 hi the box. Then re-heat to 1425 (without 
 case hardening compound or bone dust) and 
 plunge in water. This second treatment should 
 give a depth of about 1/32. 
 
 For the treatment of higher grade steel, 
 proceed as described above, making sure that 
 about 1 in. of bone dust is packed all around 
 each piece, and after re-heating and plunging 
 in water, heat in crude oil up to 450 to draw 
 to the proper degree of thickness and temper. 
 
 79 
 

 80 RULES OF MANAGEMENT 
 
 Any furnace may be used, heated either by 
 gas, oil or coal, providing a suitable pyrometer 
 is used to register the heat. 
 
 The parts should then be put under a sand 
 blast, and if gears, smooth off the teeth at 
 equal distances in diameter, and test with the 
 scleroscope. 
 
 When hardening forming tools, taps and 
 cutters, where a fine edge must be preserved 
 and when they are made of high-speed steel, 
 they should be packed in pulverized charcoal 
 in a box in the same manner as for case hard- 
 ening, heated to 1900 F., and then cooled in 
 crude oil. When hardening high-speed cutting 
 tools, heat them in gas burners to 2150 F. and 
 cool hi crude oil. Test the pyrometer occasion- 
 ally by placing some common salt in a box, 
 putting it on the fire until it melts; the melting 
 point will be 1441 F.; then place the point of 
 the pyrometer in the molten salt, and if the py- 
 rometer, reading on dials, registers 1441, the 
 pyrometer will be correct. 
 
XVIII 
 
 LATHE DEPARTMENT 
 
 rTIHE foreman of this department, which em- 
 *- braces the engine, turret, and automatic 
 lathes, should keep every lathe clean, well 
 oiled, supplied with a decent tool board or 
 cabinet and a complete set of tools suitable 
 for the class of work assigned to it. He 
 should look the tools over every day to see 
 that they are in first-class condition, and 
 correct them if correction is needed. 
 
 The space upon which lathes stand should 
 be kept free from dirt, scrap, mandrels, or 
 anything not strictly belonging to the work in 
 hand. The lathe hand must not lose time 
 because the mandrel press or other needed 
 appliances are not within his reach. Suitable 
 tools such as calipers, hammer, center punch, 
 micrometers, rules, and soft hammer to drive 
 mandrels in and out, also an oil can, should 
 be provided for him. Chucks, steady-rest, 
 
 6 81 
 
82 RULES OF MANAGEMENT 
 
 wrenches, etc., should be examined by the 
 foreman periodically. 
 
 He should have the work for every man in 
 his charge ready in advance of the time he 
 needs it, together with all tools, drawings, 
 mandrels, reamers, etc., and then give him a 
 clear explanation of the work and be sure that 
 he understands just what is wanted before 
 leaving the work with him. 
 
 On all premium work a man should be 
 started right, if he is not familiar with the job. 
 The foreman should insist that if the operator 
 does not perform the work within the limit 
 set, he tell him when the second piece is done, 
 and then set him right. He must train every 
 one to tell him instantly when a piece is 
 spoiled or broken, also if there is any uncer- 
 tainty as to whether or not the work is being 
 done right. 
 
 If the foreman loses confidence in a man 
 and cannot regain it, or if the man is untruth- 
 ful or has a bad disposition, he should see the 
 superintendent of manufacture and ask to 
 have him replaced. If the man is careless or 
 reckless with expensive tools "call him down" 
 hard. If he does bad work or is indifferent 
 
LATHE DEPARTMENT 83 
 
 and cannot be corrected, replace him. The 
 foreman should know a man's value in one 
 week, and should study him, particularly the 
 first week he works in that department. 
 
 When men deliberately refuse to earn pre- 
 mium, they cannot be replaced too soon. The 
 foreman should act quicker on this than if a 
 man is slow or dull; there is hope for the latter 
 if his disposition is right. But for the man 
 who will not embrace an opportunity when 
 offered there is little hope. The foreman 
 should have no end of patience with men who 
 find it hard to learn how to keep time right; 
 he should nurse them, tell them again and 
 again. They must be told good humoredly, 
 with a smile that will make them feel he is 
 trying to help them. They make good men 
 when they get to know. 
 
 Among his other duties the foreman should 
 carefully teach all men and boys the use of 
 taps and reamers, telling them how readily taps 
 break and how to avoid breakage, how reamers 
 will act in machine steel, in tool steel, in vana- 
 dium steel. Tell them how cutters will act, 
 also how a cutter may be fed through a cored 
 hole in cast iron 1/16 in. to a revolution, while 
 
84 RULES OF MANAGEMENT 
 
 in solid steel 1/64 in. is most too fast. Tell 
 them that high-speed steel reamers will cling 
 badly if used to ream nickel steel and that only 
 carbon-steel reamers should be used. 
 
 He should teach them that reamers if 
 held rigidly in a turret must be so held only 
 when the turret hole is strictly in line, but 
 that the reamer will act well if held carefully 
 against a center mounted in the turret. Show 
 them, however, how it must be kept from 
 jumping into the work. The foreman should 
 not make fun, get impatient or swear. He 
 should be just and command the respect of 
 his men. Daily kind treatment of men will 
 do them more good than sermons. The fore- 
 man is the man they copy. If he blusters, 
 swears, or acts improperly, they will copy him 
 and later speak disrespectfully of him. The 
 foreman should make short work of men or 
 boys, who, under kind treatment show a bad 
 disposition. This shop is no place for such 
 men, and probably when they have lost a num- 
 ber of places because of their failure to respond 
 to decent treatment, they may see the error 
 of their ways. 
 
XIX 
 
 GRINDING DEPARTMENT 
 
 T ET it be remembered that good cylindrical 
 ^^ grinding cannot be done on the very best 
 grinding machines known, unless the wheel 
 itself is true and in thoroughly good balance. 
 The live and dead centers for all grinding ma- 
 chines shoufd be ground to an angle of 60 de- 
 grees. An operator should never be permitted 
 to adjust a wheel arbor. This should be done 
 by a toolroom man assigned to this work. 
 Cylindrical gages should be used at all times 
 to set micrometer sizes. On work from 3/8 
 in. to 5/8 in. in diameter and more than 7 in. 
 long, steady-rests should be used. Begin- 
 ning at 1 in. in diameter and 14 in. long, and 
 all longer lengths, steady-rests should also be 
 used. 
 
 All work, where the wheel comes against a 
 shoulder of larger diameter than the part being 
 ground, should be delivered to a lathe and 
 
 85 
 
86 RULES OF MANAGEMENT 
 
 necked down at the shoulders at 0.005 in. be- 
 low the finished diameter, in order to permit 
 the wheel to run out without striking the 
 shoulder. The travel of the wheel should be 
 within 1/4 in. of the width of the wheel being 
 used. When grinding small diameters, and 
 where it is desirable to pass the wheel entirely 
 over the work, a square center driver with a little 
 extra pressure when mounting in the machine 
 will admit of this, if care is taken in handling 
 the work to be ground. This, of course, can 
 be done only where both live and dead center 
 drives for the machines are furnished. On 
 pieces where positive clutches are machined 
 and hardened, a driving center, cut to fit the 
 same clutch, makes a good driver and admits 
 of entire outer diameters being ground. This 
 hold good either for clutches on solid stock 
 or clutches cut on bored stock. 
 
 When grinding the holes in hardened gears, 
 mount in an independent chuck, true up the 
 diameter and sides, and test them by the hole 
 itself. Short bushings with standard holes 
 should be ground on the plug arbor mounted 
 in the driving spindle, and using either the 
 keyway, the oil groove, or if neither of these 
 
GRINDING DEPARTMENT 87 
 
 is present, a roller pin arbor. When grinding 
 pieces that have been bored, and in order to 
 avoid driving in mandrels, it is advisable that 
 the outer end of the bore be turned and reamed 
 to 60 degrees and made to revolve on pipe 
 centers that are stationary. 
 
 When a piece of work to be ground has a 
 hole tapped in the end, the end should be 
 reamed to 60 degrees, and the piece revolved 
 on centers. This secures much better work 
 than to attempt grinding it on a plug arbor 
 having a thread to fit the tapped hole. In 
 internal grinding limit plug gages should be 
 used for sizing. 
 
 The foreman or leading man of the depart- 
 ment should see that all machines are kept 
 well cleaned and thoroughly lubricated, and not 
 allowed to be used unless in the pink of con- 
 dition. A copy of these grinding instructions 
 should either be in the hands of each operator, 
 or mounted on a board and hung in the depart- 
 ment. When composition lubricant with soda 
 or water is being used for grinding, it will 
 injure the paint on the machine and make 
 it necessary, in order to have the department 
 look well, to repaint each machine at least 
 
88 RULES OF MANAGEMENT 
 
 once every six months. Polished work on 
 machines should be kept bright. 
 
 The foreman of the department should see 
 to it that each man's work is delivered with an 
 allowance on outer diameters of not less than 
 0.008 to 0.015 in. according to diameter. All 
 centers should be lubricated with white lead, 
 not oil. No greater allowance in diameter 
 than 0.015 in. and from that down to 0.008 in. 
 should be allowed by the lathe for the grinding 
 department when the work is soft; about double 
 this amount should be allowed if the work is 
 hardened. 
 
 In internal grinding, the allowance should be 
 0.0095 to 0.01 in. below size. All wheels 
 "should have a surface speed of 5,000 ft. and all 
 work a surface speed of 20 to 25 ft. per min., 
 either for internal or external grinding, where 
 obtainable. For cast iron, the grain and 
 grade of the wheel should be: Grain 36 or 40, 
 grade P. For soft steel, grain 36 or 40, grade 
 L. M. or N. For hard steel (use soft wheel) 
 grain 40, grade K. Where the length of the 
 piece justifies it, the operator should be sup- 
 plied with two dogs, so that one piece may be 
 dogged while the other is being ground. 
 
XX 
 
 DRILLING DEPARTMENT 
 
 ^PHE foreman of this department should be 
 a well posted machinist who can read 
 drawings and who knows the importance of 
 smooth, straight and round holes, and who also 
 has a good knowledge of the setting and hold- 
 ing of work for doing rapid drilling with abso- 
 lute truth. 
 
 All jigs in the department should be kept 
 with guide bushings fitting the tools and with- 
 out being the least bit loose. Tools must be 
 ground and replaced in the jigs and be ready 
 for service when wanted. Drill chucks must 
 be in such excellent order for use that no make- 
 shifts of any kind will ever be necessary. 
 When drilling through jigs be sure that the 
 guide bushings are central with the drill 
 spindle. 
 
 The equipment for each drill press should 
 include bolts and clamps, and suitable stands 
 
 89 
 
90 RULES OF MANAGEMENT 
 
 to receive at least six different kinds or sizes 
 of chucks or drills should be located by each 
 drill press that is regularly in use and the man 
 who runs the press be held responsible for their 
 good order and their constant presence at his 
 machine. /The foreman must at all times be 
 on the alert with men and work, instructing 
 the men when the jig holding the work may 
 be free on the table or when it must be clamped 
 to the table. Quick change chucks should be 
 used for all drills |" and over and below \" 
 regular drill chucks with the end of the shank 
 holding the chuck and the end of the shank of 
 the drill each cut away f " or f " of their length 
 at the end, so as to prevent their turning hi 
 the chucks. This end receives but a slight 
 pressure because the chuck will usually drive 
 the drill but it will prevent the marring of the 
 shanks, by preventing their turning in the 
 chuck. 
 
 Foreman must deliver the tools and jigs 
 with the job; see that everything is complete 
 and when a new jig is being tried out for the 
 first time, call the foreman of the tool room 
 and the inspector so that we may be assured 
 the jig is right for every-day use. 
 
DRILLING DEPARTMENT 91 
 
 Every man on a drill press should be able 
 to call his own, his oil can, his center punch, 
 hammer, monkey-wrench and suitable drift. 
 
 The operator should not be allowed to grind 
 either the drills or the countersinks that belong 
 with jigs. This grinding should be done by 
 the man in the Auxiliary Tool Room. 
 
 The foreman should be well posted on speeds 
 and feeds for all sizes of drills and see that 
 every part of every drill press be kept well 
 oiled and very clean, never allowing belts to 
 run crooked or twisted and use only high speed 
 machines for small work. 
 
 The foreman should insist upon delivery 
 into his department of all lots without one 
 piece missing and as nearly as possible in 
 proper sequence for the size of machines upon 
 which he may be working. 
 
N 
 
 XXI 
 
 PLANER DEPARTMENT 
 
 planer should ever be at work without 
 having its next job put down beside it one 
 hour in advance and with the job the drawing, 
 templates, chucking devices, clamps, bolts, 
 resting blocks for the clamps and full and clear 
 instructions about the job from the foreman. 
 The foreman must, of course, inform himself on 
 the number of jobs, and special devices that 
 may be needed. These should be ready. 
 Some work may need a little drilling to receive 
 clamps; this should be done. He should post 
 the operator as to speed, feed, how many cuts, 
 etc. He should at all times see that the tools 
 are right and ready for all work assigned and 
 before the work gets to the operator. 
 
 He should see the beginning of every job 
 and avoid planer stoppage, so that the machine 
 is kept cutting as many hours and minutes 
 
 92 
 
PLANER DEPARTMENT 93 
 
 during each day as possible. He should never 
 lose sight of proper oiling, and never permit 
 any planer to look dirty, or untidy, with 
 clamps, bolts, scrap, cuttings or dirt, lying 
 around it. 
 
 Many routine jobs should have two sets of 
 chucking devices so that while one job is being 
 planed another may be chucked, thus keeping 
 the planer cutting most of the time now con- 
 sumed in chucking. All planer countershafts 
 should receive as careful attention in adjust- 
 ment, in cleanliness, in oiling, in efficiency and 
 tautness of belts, etc., as the planer itself. 
 This applies to motors also, when machines are 
 motor driven. 
 
 It is bad practice to permit men to ride on 
 planer tables or to use stools, as their time can 
 be much better used in cleaning up, in getting 
 tools, templates, chucks, etc., ready for the new 
 job. All this also applies to shapers. Any 
 planer or shaper used occasionally only should 
 be oiled before using, and cleaned before leav- 
 ing. Foremen should see that such machines 
 have a full kit of cutting tools and keep them 
 locked up, well dressed and ground ready for 
 use. If work is delayed in delivery to a de- 
 
94 RULES OF MANAGEMENT 
 
 partment, or the sweeper and helper are de- 
 laying work through absence when wanted, see 
 the assistant manager on this or any other re- 
 quirement at once. 
 
XXII 
 
 MILLING DEPARTMENT 
 
 department is handled by one foreman 
 whose duty it is to deliver the work to the 
 machines with full information as to what is 
 to be done. He should also deliver special 
 mandrels with gang cutters mounted, and 
 special chucking devices for holding the work, 
 when it is known that they are in the tool 
 storage. Wrenches and auxiliary tools should 
 not be allowed to remain on the floor but should 
 be placed in the cabinet or in the tool storage, 
 whichever is their accustomed place. The 
 space surrounding the machine should always 
 be kept thoroughly clean. No gang of milling 
 cutters mounted and true, should be removed 
 from the mandrel without consulting the fore- 
 man of the department. 
 
 Whenever cutters become dull, when man- 
 drels are not true, when collars are not correct 
 or there is any difficulty with the dividing 
 
 95 
 
96 RULES OF MANAGEMENT 
 
 head, the foreman should be notified at once 
 so that the trouble may be corrected without 
 loss of time. If the operator knows that the 
 work he is engaged upon is taking much more 
 time than it should, by reason of the absence 
 of proper appliances, he should at once notify 
 the foreman asking him to correct the trouble. 
 If possible the foreman should confine all single 
 or small number piece jobs to one machine so 
 that the routine machines may be continually 
 working to advantage. 
 
 A complete set of wrenches and special 
 tools for each machine should always be kept 
 in good order. Foreman should be notified 
 without loss of time should they be otherwise. 
 Each operative should have his own oil can, 
 hammer and suitable wrenches. Should these 
 be missing the foreman should at once supply 
 them. Foreman should also keep close watch 
 on the quality of the work being turned out 
 so that never more than one piece of a batch 
 is likely to be spoiled. 
 
XXIII 
 
 GEAR CUTTING DEPARTMENT 
 
 nnHIS department is handled by a working 
 foreman, necessary operators and an in- 
 spector whose duty it is to see that each pair 
 of gears is properly tested. This inspection 
 should cover smoothness of cut, absence of 
 tearing of metal as the cutter leaves the work, 
 and smooth revolution when the teeth are in 
 mesh so as to touch on all sides. The equip- 
 ment for the tests should consist of mandrels 
 and bushings that admit of the least possible 
 side play not to exceed 0.001 in. Should the 
 gears need any correction, the foreman of the 
 department should be notified. 
 
 If the foreman of the department cannot 
 get quick action when new bushings or man- 
 drels are needed, the superintendent of manu- 
 facture should be appealed to at once, and the 
 work stopped until the proper appliances 
 are in hand. The foreman of the department 
 
 7 97 
 
98 RULES OF MANAGEMENT 
 
 should insist that all cutters, either rotary 
 or for the gear shaper, should be ground before 
 being hung up. If this is not done for any 
 reason a report should be made to the super- 
 intendent of manufacture. This applies also 
 to new cutters, mandrels, and bushings. If 
 the equipment for the department is not suffi- 
 cient to produce the work called for, the fore- 
 man should consult the superintendent of 
 manufacture. 
 
 No gears, mandrels or other articles not 
 strictly pertaining to the work in hand should 
 be allowed to remain on the floor, or on or 
 under the benches. All superfluous mandrels 
 or bushes belonging to the testing machine 
 should be placed in the tool storage depart- 
 ment. If on Saturday, when the machine 
 cleaners are through with their work, this 
 should prove unsatisfactory, the foreman 
 should report the fault to the superintendent 
 of assembly. 
 
 Advance information should be obtained 
 as to the cutters wanted on any new work 
 before the work comes into the department so 
 that the cutters may be on hand when the 
 work arrives. Every machine and every coun- 
 
GEAR CUTTING DEPARTMENT 99 
 
 tershaft should be kept thoroughly oiled. 
 All the appliances used in this department and 
 dealing with the accuracy of the work should 
 be kept within easy reach and in first-class 
 condition. Should the fit of the slides or the 
 fit of the dividing gearing show any inac- 
 curacy, this should be reported at once to the 
 superintendent of manufacture. Should the 
 foreman be in any doubt as to appliances for 
 gear that are difficult to cut, he should also 
 see the superintendent of manufacture. 
 
XXIV 
 
 SPECIAL MANUFACTURING DEPARTMENT 
 
 HPHIS department is officered by one lathe 
 A foreman and one vise foreman. The vise 
 foreman has an assistant for drilling machines 
 who runs a drill on most important work. The 
 foreman has general charge of the department 
 covering drilling machines, millers, shapers, 
 grinders, vise men, and planers. 
 
 The work of the department consists of all 
 work that has not been established as routine 
 work, all special work wanted by the shop, all 
 work the insufficient quantity of which pre- 
 cludes it as routine work, all special fixtures 
 that go with lathes sold on guarantee of pro- 
 duction, in fact all work not routine, including 
 helping out the toolroom when that department 
 is crowded beyond its capacity. 
 
 The man in charge shall look to the tracing 
 department for all material needed to complete 
 100 
 
SPECIAL MANUFACTURING DEPARTMENT 101 
 
 work as per drawings, and report to the assist- 
 ant manager if this is not forthcoming when 
 needed. The routing department will furnish 
 drawings with routing and order tickets at- 
 tached giving full information on all work done 
 by this department. 
 
 Precedence is to be accorded work on the 
 order of the superintendent of assembly. The 
 superintendent of manufacture has strict juris- 
 diction over the quality and the methods of 
 doing work. Any additional equipment for 
 this department must be referred by the super- 
 intendent of manufacture to the assistant 
 manager for order to purchase. No work 
 shall be done in the department except on 
 regular order, because every hour must be 
 accounted for to the cost department. The 
 chief inspector will detail a man as inspector 
 whose decision, when referred to the chief in- 
 spector, shall be final. 
 
 This department has generally been looked 
 upon as a losing proposition. Good men and 
 efficient work are required. There are times 
 when this department is slack. At such times, 
 routine work that may be late on its journey 
 to the storerooms shall be done here. Pre- 
 
102 RULES OF MANAGEMENT 
 
 mium work shall be used when deemed wise by 
 the superintendent of manufacture who may 
 place any work on this basis when it has reached 
 a routine stage. 
 
XXV 
 
 INSPECTING DEPARTMENT 
 
 man in charge of this department 
 should post each man in detail as to just 
 what he must inspect and how to proceed. He 
 must lay out the amount of work one man can 
 comfortably get through with; see that the 
 proper measuring tools are in his hands and 
 show him how to get limit gages, drawings, 
 etc., also what part of his work must be very 
 accurate and what other part does not require 
 too much of his time. 
 
 If the inspector's work can be handled on a 
 bench he should be taught to keep his quarters 
 clean, free from litter and from work, either 
 finished or in prospect. He should also be re- 
 quired to lock up valuable tools every night and 
 report to the department head if his work does 
 not come to him in ample time. 
 
 Should a man's work require him to visit 
 several places in a department, he should be 
 
 103 
 
104 RULES OF MANAGEMENT 
 
 taught to work in detail and day by day until 
 he is thoroughly familiar with it. If his work 
 is vise work the importance of key fits should be 
 explained. If his work covers sliding keys, the 
 necessity of the key being fitted very firmly and 
 tightly in its keyway should be demonstrated. 
 On no account should this depend on peening 
 for a tight fit, nor should more than 0.001 in. 
 freedom on top for sliding be allowed if the key 
 fit is stationary; the key should fit snugly side- 
 wise and tight on top. 
 
 The superintendent of this department must 
 never permit any running shaft to pass if the 
 least bit out of line, one journal with another, 
 and must never pass any running journals 
 unless ample provision is made for oil. He 
 should insist that all screws have a good 
 thread; the same is true of holes. Pieces that 
 will not paint well and smoothly must not 
 be passed; this also applies to places where 
 one part is bolted to another if seats do not 
 match up. 
 
 All gears must run smoothly and mesh well 
 with the least possible freedom. No running 
 part must pass if it runs out of true or does 
 not turn with perfect freedom in its place. 
 
INSPECTING DEPARTMENT 105 
 
 No part that looks the least bit sloppy or untidy 
 should be passed. The merchant requires nice 
 paint and nice polish when he shows parts to 
 a customer and will complain if machines are 
 faulty in this respect. The user not only 
 wants all this but he will reject a lathe if he 
 finds any fault with its accuracy or smooth 
 operation, or encounters difficulty in handling. 
 Special care is needed in packing. All 
 parts should be in the box containing loose 
 pieces, which should be checked with the card 
 containing the names of the pieces the box 
 contains. This card is to be packed in the 
 box and signed by the packer with his own 
 name. A duplicate of this should be kept. 
 Some of these machines travel thousands of 
 miles and great care should be given to see that 
 they are securely fastened when packed. 
 
XXVI 
 
 SPECIFIC INSTRUCTIONS FOR PAINTING 
 LATHES 
 
 1. The first coat is to be steel blue paint 
 both inside and outside and to be applied 
 to the castings as soon as possible after they 
 are received. 
 
 2. The second coat to be dark filler put on 
 with the brush. 
 
 . 3. The irregularities in the castings that 
 cannot be corrected by chipping are to be 
 filled with the smallest amount of filler that 
 can be applied with the knife. 
 
 4. We then apply another coat of filler with 
 the brush. 
 
 5. After thoroughly drying they are sanded 
 down until the iron shows through. 
 
 6. We then apply a coat of intermediate 
 surfacer and touch up with filler. 
 
 7. Sand down and apply a coat of surface 
 black. 
 
 106 
 
PAINTING LATHES 107 
 
 8. The foregoing refers both to heads, beds 
 and smaller parts and after all have been assem- 
 bled the paint work is rubbed all over with 
 what is known as a "hair rub." 
 
 9. After drying, the machine is to be given 
 a coat of blue paint. 
 
 10. No machine must be touched by the 
 finishers until every piece belonging to it is 
 fitted in place. 
 
 11. No painting must be attempted while 
 machines are being finished. 
 
 12. The machine shall not be delivered to 
 the painters until the finishers are entirely 
 through; after painting, no machine shall be 
 touched for delivery until the day after the 
 finishing coat of paint has been applied. 
 
 13. The man in charge of the finishing shall 
 act as final inspector when the machines are 
 finished painting. 
 
 14. All work will be delivered to the paint 
 room in its proper order by the trucking depart- 
 ment. Hold assembly superintendent for 
 this. 
 
XXVII 
 
 SALES MANAGER 
 
 A SALES MANAGER must know the busi- 
 ness because otherwise he cannot judge 
 what the customer needs. 
 
 He must see that merit and not lowest 
 price governs but that merit and nearly the 
 same price "knocks the persimmons." 
 
 He must not sell machines to perform 
 stunts not offered, listed or described by the 
 manufacturer. 
 
 He must not give attachments that he thinks 
 do not cost much; the maker, not he, knows 
 best. 
 
 When the house assumes the credit, the house 
 must pass upon the same before jthe sale may 
 be completed. 
 
 No mechanical performance must be 
 promised without consent of the Mechan- 
 ical Department. 
 
 In handling subordinates, no amount of care 
 in posting them should be considered too much 
 
 108 
 
SALES MANAGER 109 
 
 trouble. They are not expected to know as 
 much as the sales manager. They do not pull 
 down his salary. 
 
 Should the sales manager pass upon ex- 
 penses of either subordinates or demonstrators, 
 he should do so after careful investigation and 
 knowledge of all the conditions. 
 
 A live, dignified, financially able and well- 
 located line of agencies are the best means of 
 disposing of the shop's product. Their geo- 
 graphical position is of the utmost importance; 
 care being taken when selection is made to see 
 that they are close to good live markets. 
 
 We should insist that their salesmen should 
 possess fair technical knowledge and should be 
 allowed a reasonable time in the L. & S. Shops 
 for training in actual work such as time esti- 
 mates and the handling of machines and set- 
 ting of diameter and shoulder stops, ball stops, 
 rear rests, the handling of crankshaft work, 
 taper attachments, turret equipment, motor 
 drives, belt drives, feeds, speeds, apron control, 
 etc. 
 
 Advertising comes next in importance for 
 getting business, after agencies. To make 
 advertising effective, every issue should con- 
 
110 RULES OF MANAGEMENT 
 
 tain emphatic presentation of some of the 100 
 features contained in our product not contained 
 in others and frequent mention should be made 
 when these features are patented or when 
 patents have been applied for. Special en- 
 gravings of these should accompany advertise- 
 ments with clear descriptions. Stress should 
 be laid on simplicity, power, ease of handling, 
 weight, features that are hardened, packing, 
 facts such as only one complaint of lack of 
 accuracy out of 5000 machines supplied and 
 this due to accident in transit. 
 
 The next important business getter is a well- 
 trained corps of demonstrators. These men 
 must be experts and able to receive a drawing 
 in any shop and make work both correctly 
 and with dispatch. They must be modest, 
 have tact, know every detail of the machine 
 they demonstrate, show finish to grind and also 
 finish to file. They must never contradict 
 the customer unless allowed to prove their 
 statements. They must remember that any 
 bad impression left injures the company, and 
 that they are actually carrying the same re- 
 sponsibility that any officer of the company 
 carries. 
 
SALES MANAGER 111 
 
 They should be able to see at once in any 
 shop as they observe how the work is being done, 
 approximately how much time would be saved 
 if that work could be done on L. & S. machines 
 and recommend the size of machine that would 
 do the work to the best advantage. They must 
 never show anger, no matter how the other 
 fellow may treat them; such men will admire 
 their patience and tact and become their good 
 friends. Never leave anything undone that 
 needs fixing because the customer will complain 
 to headquarters, saying the men should have 
 fixed it and did not. 
 
 Keep the country well covered by dealers in 
 territories which are not too large. Have as 
 representatives live men who are on the job 
 themselves. Branch houses as a rule are un- 
 satisfactory and do not work a territory like a 
 house who must rise or fall by the business se- 
 cured from that particular territory. 
 
 Develop young men who are well educated so 
 as to make salesmen of them for our agents. A 
 young man educated by us on our lathes will 
 bring back greater returns than one who has 
 only a superficial knowledge. 
 
112 RULES OF MANAGEMENT 
 
 Develop trade all over the world. Get into 
 the world's field early. Foreign business is a 
 great balance and helps fill the shop with orders 
 when business at home is dull. 
 
XXVIII 
 
 SHIPPING CLERK 
 
 FT shall be the duty of the shipping clerk to 
 A see that all orders for stock machines are 
 shipped within 24 hours. This can be done 
 by having the inspector and boss laborer on 
 hand as soon as the tag comes from the drawing 
 room. 
 
 He shall, each evening, look over the 
 machines on the finishing floor and determine 
 how many teams he will need the following 
 day and about at what time. He should not 
 cause the teamsters to waste time in getting 
 his load by having the wagon come along 
 before the machine is ready, as this eventually 
 means an increase in the cost of hauling. 
 
 When the bill of lading has been signed by 
 the railroad he should see that the proper 
 rate has been inserted for the proper classifica- 
 tions. He must keep in close touch with 
 traffic solicitors, as they frequently exercise 
 
 8 113 
 
114 RULES OF MANAGEMENT 
 
 more influence with the yard crew in moving 
 a car than the agent himself. 
 
 He is required to keep in touch with the 
 agent also, and make a round of the freight 
 houses to look up incoming material. Fre- 
 quently it is allowed to remain in the freight 
 house for a couple of days when it is badly 
 needed by the shop. The incoming ship- 
 ments are more important than the outgoing, 
 and should be given the best attention. When 
 an agent or customer notifies us that he is send- 
 ing a motor or lathe chuck to apply on some 
 order, the shipping agent should see that he 
 is supplied with tags with his and our order 
 numbers plainly written thereon, and request 
 him to attach them to the articles to be 
 forwarded to us. He should also request him 
 to furnish a bill of lading when the shipment 
 has been made. This will save a good deal of 
 time and the shop will also benefit. 
 
 The shipping clerk will get from the purchas- 
 ing department each morning all bills of lading 
 for incoming material, and if invoices have been 
 received without a bill of lading, write for them. 
 He must keep persistently after the railroad 
 until material is received. If the case is urgent 
 
SHIPPING CLERK 115 
 
 and the shipment is overdue, he must not hesi- 
 tate to go the highest official of the railroad 
 that can be reached, and also use the aid 01 the 
 Receivers and Shippers Association. 
 
 He should study the regulations of the par- 
 cel post and use it in preference to express 
 where it shows a saving in time and cost. 
 See that a packing list goes with each lathe 
 shipped and file a copy of it for reference 
 against claims for shortage. Study the crating 
 and boxing of machines. See what others are 
 doing in this respect and if improvement is 
 possible he should make it. We want our 
 machines to be in A-l condition on their 
 arrival at destination. 
 
 When a shipment is made by express the 
 shipping clerk should see that the customer 
 does not have to pay on an unnecessary amount 
 of lumber. Use cardboard boxes or cloth 
 bags whenever feasible. When shipment is 
 less than 100 Ib. he should not ship by freight 
 unless the customer has so requested. When 
 the shop is making a special effort to get out 
 a shipment the clerk must do what he can to 
 boost its effort. 
 
XXIX 
 
 Boss LABORER AND EXPRESS TRUCKMEN 
 Boss LABORER 
 
 HHHE boss laborer must see that all wagons are 
 * loaded and that machines are covered and 
 weighed, and get the countershafts for the 
 machines. Get the repairs that are boxed, and 
 weigh them ready for shipment. Make ready 
 all the countershaft skids; slush the counter- 
 shafts, leg them on the skids and crate them. 
 Take all the finished stock countershafts, slush 
 them and store them away. 
 
 He must get out all skids for machines that 
 are to be finished. Get in all export platforms 
 and weigh them, also see that they have 
 countershafts. Transfer finished machines to 
 and from warehouse. Move machines or any 
 other material where there is a change to be 
 made. Stack all lumber for carpenters. Also 
 stack the pattern lumber in the loft and take it 
 upstairs as they need it. See that the yard is 
 kept clean; also patch the cement floor. 
 
 116 
 
EXPRESS TRUCKMEN 117 
 
 He must also look after all fire extinguishers. 
 See that the small as well as the large "Ajax" 
 extinguishers are tested twice a year, Nov. 15 
 and May 15. See that all finished machines, 
 whether they are stock machines or held on 
 customer's order for shipping instructions, are 
 fully covered with waterproof covering as soon 
 as the finishing coat of paint is dry. Each 
 afternoon he should walk through all the yard 
 storage places. If anything untidy is found, 
 this should be his first concern the following 
 morning. 
 
 EXPRESS TRUCKMEN 
 
 The express truckman must arrange for his 
 daily trip to the city for supplies and to the 
 factory to take or bring back patterns. All 
 orders on his time must come through the 
 assistant manager, if made by any other than 
 the purchasing, receiving or pattern depart- 
 ments. He must keep his automobile clean 
 and neat, and carefully go over all oilers once 
 each week. Also see that the oiling of the Ford 
 machine is properly done by the gate watch- 
 man. 
 
 The Ford is to be used by him and the 
 
118 RULES OF MANAGEMENT 
 
 chief storekeeper on the week days during 
 working hours. Under no circumstances can 
 this machine be taken out at night or on 
 Sunday. His regular hours are 60 per week, 
 on a fixed salary basis. In consideration of 
 having to put in overtime to keep the yard free 
 from rubbish, lumber, packing boxes and ashes, 
 a bonus of $3 per week will be paid him. 
 
T 
 
 XXX 
 
 MILLWRIGHT AND BELT MAN 
 MILLWRIGHT 
 
 HIS man reports to the superintendent of 
 assembly and receives orders from him. 
 He must keep trestles, boards for the top of 
 them, and all his tools, such as wrenches, spirit 
 levels, lagscrews, belt clamps and ladders where 
 they are easily accessible, even if we must pro- 
 vide a place to lock them up. 
 
 In the daytime, when machinery is running, 
 neither he nor any one who may be helping him 
 must run risks of accidents without first stop- 
 ping the machinery. He must see that all 
 ladders used are provided with sharp steel 
 spikes to prevent slipping. No allowance over 
 hourly rate is made for overtime. 
 
 He must keep all line shafts aligned, looking 
 them over once a month, using the first Sat- 
 urday afternoon of each month for this duty. 
 No dead ends of shafts either auxiliary or line, 
 
 119 
 
120 RULES OF MANAGEMENT 
 
 having keyways must be allowed to stick out 
 from journal bearings more than two inches 
 without a safety setscrew collar, pulley or 
 coupling. 
 
 He must report to the manager anything 
 that he cannot correct himself and which might 
 cause an accident. This applies to setscrews 
 or gears that might catch one's clothing, emery 
 wheels, narrow places, bad chains, slings, belts, 
 etc., or any point in danger of fire. 
 
 BELT MAN 
 
 This man reports to the assembly depart- 
 ment. His duty is to repair all belts, and 
 immediately sew all belts brought to him by 
 any man running a machine. Old belts, or 
 parts of them must be joined by cementing 
 when they have enough life in them to justify 
 the time it takes. These belts may be used for 
 countershaft drives, and should be kept on 
 shelves and ticketed. 
 
 No new belts should be given out except on 
 a written order of the superintendent of 
 assembly. When belting is ordered for stock, 
 the order must come from this official. The 
 belt maker must keep up his other supplies 
 
MILLWRIGHT AND BELT MAN 121 
 
 through orders to the purchasing department. 
 His quarters must be kept neat and clean, and 
 suitable shelves provided to receive belting, 
 supplies and tools, all of which must be kept 
 in good order. No extra price will be allowed 
 for overtime. The assembly superintendent 
 will supply bench and vise work to fill in the 
 time not used on belts. 
 
T 
 
 XXXI 
 
 ENGINEER, ELECTRICIAN AND OILER 
 STEAM ENGINEER 
 
 HE steam engineer must know the con- 
 struction and operation of his engine thor- 
 oughly and must be keenly alive in having all 
 the oiling facilities in effective constant use. 
 He must also keep valves well fitted and set 
 so close that no steam is wasted. Lost motion 
 in any one of the moving parts must be con- 
 stantly taken care of and if any waste of steam 
 occurs by reason of slide valves not seating 
 well, a man from the shop will correct this 
 by scraping (or planing if necessary) any 
 evening or Sunday. 
 
 Cylinder rings must always fit so close that 
 no steam may leak through. The crosshead 
 guides and piston rod must be kept adjusted 
 centrally and a close fit. The connecting rod 
 must be so nicely adjusted to pins that no 
 
 knock can be heard at ends of stroke. A good 
 122 
 
ENGINEER, ELECTRICIAN AND OILER 123 
 
 level should be used on the cylinder and guides 
 twice a year to make sure the foundation is 
 right. 
 
 The feed-water heater and boiler feeder 
 must be kept in apple-pie order and all valves 
 between boilers, engines and pumps thoroughly 
 seated. Careful watch must be kept on the 
 water gage so that any trouble with the feed 
 water may be instantly detected. All tools, 
 wrenches, gaskets, packing, oil cans, etc., 
 must be kept neatly arranged and always in 
 place ready for use. 
 
 The engineer must be on hand in time to get 
 up steam before starting time in case the night 
 watchman fails, and must know that the night 
 watchman is capable and performs all his 
 duties so far as they concern the engineer's 
 department. The night watchman must be 
 replaced if delinquent or incompetent. 
 
 Firemen are strictly in the care of the engi- 
 neer and both are engaged and discharged by 
 him when necessary. He will see that they are 
 thoroughly up in their work in knowledge and 
 practice. Boilers must be cleaned every other 
 month with mechanical cleaner and tests made 
 of oil and coals when called for by the assistant 
 
124 RULES OF MANAGEMENT 
 
 manager. Any change of wage rate must be 
 submitted to the assistant manager before 
 being acted upon. 
 
 The engineer has full charge of, and is 
 responsible for, the condition of all valves, 
 pumps, stage of water, and paraphernalia 
 pertaining to the sprinkling system; also all 
 machinery and matters pertaining to the heat- 
 ing systems throughout the plant. The water 
 meters, valves, etc., either for incoming or 
 outgoing water, are also under his supervision. 
 Any needed repairs, painting, etc., in his 
 department must be reported to the assistant 
 manager, and all supplies should be obtained 
 through the purchasing department. He 
 should see that the night watchman is posted 
 about cold weather and Sundays, and that 
 nothing is allowed to freeze. 
 
 ELECTRICIAN 
 
 The duties of the electrician consist of the 
 care of all electric motors throughout the plant. 
 When these need cleaning, he must see to it that 
 this is taken care of. All lighting, lamps, 
 wiring, storage batteries and electrical appara- 
 
ENGINEER, ELECTRICIAN AND OILER 125 
 
 tus of every kind must be handled by this 
 department. 
 
 He must clean out truck batteries March 
 1 and Sept. 1, and also clean all electric hoists 
 in June and December. Have flaming arc 
 globes cleaned every two weeks during the 
 winter months and covered during the summer. 
 Blow out all generators and motors each Sat- 
 urday afternoon. If a motor is sparking, he 
 should give the armature and commutator 
 proper attention at once. 
 
 He must see that all incandescent lamps are 
 protected by wire screens. When putting up 
 new work, he should always study the under- 
 writer's specification for that class of work, and 
 see that this is closely followed. Keep the 
 fire alarm, auto call and electric clock system in 
 good working condition. Take good care that 
 his stockroom is at all times locked during his 
 absence. 
 
 NIGHT OILER 
 
 This man reports to the assembly superin- 
 tendent. His work calls for oiling all overhead 
 work that cannot be safely taken care of during 
 the day. The oil cans and ladders must be 
 
126 RULES OF MANAGEMENT 
 
 assigned a suitable place, and kept for this pur- 
 pose. Ladders must have sharp steel spikes to 
 prevent slipping. Should bearings become hot 
 and oil reaches them, he must report to the 
 foreman, who will see to the quality of the oil. 
 He will report to the foreman anything that 
 seems dangerous. Where not sure that grease 
 would do better than oil, he must tell the fore- 
 man who will decide. 
 
j 
 
 XXXII 
 
 JANITORS AND WATCHMEN 
 JANITORS 
 
 ANITORS are required to report to the as- 
 sistant manager. The two men employed at 
 this work are to keep all the main offices clean, 
 washing the floors of main offices every Wednes- 
 day and Saturday; also keep all windows 
 strictly clean. This work is to be done even- 
 ings and Saturday afternoon. 
 
 The rooms to be cleaned and scrubbed 
 once a week are the drawing rooms, cost de- 
 partment, superintendent's office, and all office 
 toilets and washrooms; the foremen's and 
 workmen's washrooms, furnace room and 
 office toilet room. They are also required to 
 clean all office and factory entrance halls and 
 stairways, sidewalks and crossing in front of the 
 office, windows, paint work, heaters, etc. 
 
 All skylights and factory windows are to be 
 kept thoroughly clean, including the paint 
 
 127 
 
128 RULES OF MANAGEMENT 
 
 work in and around the offices. All waste- 
 paper baskets and cuspidors are to be emptied 
 by them and the waste paper baled. Small 
 painted or varnished surfaces such as base- 
 boards, window sills, stairways and railings are 
 to be kept looking nice. Men are detailed by 
 the labor boss to cut and rake the lawns. 
 
 GATE WATCHMAN 
 
 This man reports to the assistant manager 
 and must be on hand at least 15 minutes before 
 and 15 minutes after the starting and stopping 
 whistle. He must allow no strangers or ap- 
 plicants for employment through his gate, but 
 direct them to the office. Employees are not to 
 be allowed out during working hours, except by 
 permission of the assistant manager. He may 
 telephone the office through the receiving de- 
 partment in cases where he is uncertain what 
 to do. Report all cases of men carrying out 
 bundles unless he knows them to be personal 
 property. He must see to the cleaning of the 
 Ford automobile at least three times a week. 
 This means keeping the running gearing and 
 body free from mud. 
 
JANITORS AND WATCHMEN 129 
 
 NIGHT WATCHMAN 
 
 The night watchman must have a suitable 
 engineer's license. He must report for duty 
 every evening including Sunday at 5 : 30. 
 He is under orders of the head engineer as to 
 the boilers, when to get up steam and in what 
 kind of weather to keep up steam all night. 
 Instructions as to the running of the gas en- 
 gine and lights, and the charging of all storage 
 batteries are to come from the same source. 
 
 He is required to register on all stations, 
 notifying the Ohio Messenger Service Co. that 
 he is on the job, and in accordance with his in- 
 structions as to the time of each round. In 
 addition he must (while making his rounds) 
 keep a keen lookout for fire, thieves, open 
 windows or skylights when raining, and try all 
 doors, gates and windows that should be kept 
 locked. 
 
 He must write out and deliver to the engineer 
 any information regarding leaky water pipes, 
 water closets, urinals, steam or air, also all 
 cocks that need repair and should make his 
 first round in daylight or while lights are lit, so 
 that he may move obstacles over which he 
 
 9 
 
130 RULES OF MANAGEMENT 
 
 might stumble in the dark. He must watch 
 the temperature in the winter and warm up 
 the shop earlier on cold mornings. The tem- 
 perature in the shop should be 60 degrees at 
 6: 30 a.m. 
 
XXXIII 
 
 A PROPOSED PENSION PLAN 1 
 
 T N endeavoring to present a feasible plan for 
 A a pension system, it is my desire to assist, 
 rather than handicap, manufacturers. There 
 is much discussion on the subject of workmen's 
 compensation which will undoubtedly affect 
 some of us more than others, according to the 
 particular kind of business we are in. Some 
 of us in the machine-making line have been in 
 business from 20 to 40 years with perhaps only 
 one death from accident and probably less 
 than three cases of total disability, while the 
 cases in which workmen have been seriously 
 maimed will not amount to over half a dozen. 
 With these facts before us, is it not clear that 
 any state tax which may be levied should not 
 be indiscriminately laid, but should take into 
 account the proportion of accidents in each 
 line? Even then we might be paying for the 
 
 1 Read before National Metal Trades Association, 1913. 
 131 
 
132 RULES OF MANAGEMENT 
 
 carelessness of some in our own direct line. 
 In my opinion the establishing of a life pension 
 for such of our employees as have filled all 
 the conditions to be set forth, is of vastly 
 more importance to our workpeople as a whole, 
 than is the question of workmen's compensa- 
 tion. It is also of more importance to our 
 members in general, as it will help to solve 
 some of our problems regarding the keeping of 
 good men in our employ. 
 
 Those of us who do business in the Middle 
 West know the restless and floating tendency 
 of the men and the advantage of being able to 
 keep the same set of men whom we have edu- 
 cated with great care and often at considerable 
 cost. This is such a real advantage that it 
 will pay us to adopt any reasonable plan which 
 will secure such results. It would also tend 
 to steady the population in our industrial 
 centers. 
 
 Many cases may be cited where pension 
 plans are working out successfully, imparting 
 a comfortable feeling to the minds of the men, 
 and, when they know that to leave their 
 employers means the abandonment of that 
 pension, any change is apt to be considered 
 
A PROPOSED PENSION PLAN 133 
 
 very seriously. Any pension system should be 
 based upon some plan that will pay the bene- 
 ficiary not less than half the usual wage. 
 The government pension to common soldiers 
 and sailors is open to many criticisms on this 
 account. 
 
 The establishment of a pension system neces- 
 sitates the setting aside of a fund that will form 
 a nucleus and finally the capital on which the 
 pensions may be based. If, for instance, 
 a concern employing only 100 men should 
 decide to set apart 2 cents per hour for every 
 operator in its employ, this would mean approx- 
 imately $6,000 per annum on the basis of a 
 10-hour day. If any concern using the pre- 
 mium plan would put aside a like amount per 
 hour, out of the hours saved, it would double 
 this fund, which would soon reach the point of 
 sustaining any pension payments that need 
 be made. 
 
XXXIV 
 
 BASIS ON WHICH A FUND CAN BE 
 STARTED 
 
 A NY employer who has maintained an effi- 
 -**- cient system of knowing the cost of manu- 
 facturing, realizes the tremendous change in the 
 art of machine making which has taken place 
 during the last 10 years. The decreased cost 
 of production has been largely due to the 
 advent of high-speed steel, and the designing 
 of machine tools which could use that to 
 the best advantage. This has been hastened 
 by the advent of the automobile, as the demand 
 for these has made possible the development 
 of special machinery and the lowering of 
 cost of production. As an example, take the 
 four-throw crank of an automobile. A com- 
 paratively few years ago this required 10 hours 
 to machine, while with the new and special 
 machinery it can be turned ready for grinding 
 in 15 minutes. 
 
 Many other cases could be cited, but I wish 
 
 134 
 
BASIS FOR PENSION FUND 135 
 
 to point out that, owing to the improved 
 methods which have so materially reduced 
 costs, we are in a position to lay aside a small 
 portion of this saving over former costs as a 
 basis for the pension fund. In other words, 
 we should adopt some system that will 
 permit the taking of a portion of the profits 
 which have come through the adoption of 
 more modern systems of doing business, 
 whether these savings come from the machine 
 shop, from the method of buying material, 
 or in any of the many ways which are proving 
 economical in modern business. 
 
 These are only a few of the many things to 
 be considered, my main object being to call 
 your attention to the desirability of making 
 a start so that a fund may be accumulated from 
 which pensions may eventually be paid. In 
 case any one may decide to adopt such a plan, 
 there are a few points connected with it which 
 it may be well to bear in mind. 
 
 POINTS To BE CONSIDERED 
 
 The Retiring Age. My suggestion would be 
 65 years; but this should not be arbitrarily 
 fixed. It should be at the discretion of the 
 
136 RULES OF MANAGEMENT 
 
 trustees handling the pension fund, as there 
 may be cases where it is desirable to extend 
 the limit and others where a man should be 
 retired before reaching this age. The Pennsyl- 
 vania R.R. pension plan allows retirements 
 earlier, but not later than the age limit fixed. 
 
 Period of Service. This should probably be 
 at least 25 years before a man becomes eligible 
 to receive the pension, but might also be left 
 to the discretion of the trustees. 
 
 The Pension Fund. This should not be 
 handled by the firm or company, but by a 
 board of trustees. This is on the advice of 
 an eminent lawyer, on account of its being 
 .an obligation upon the firm or company if so 
 handled. 
 
 Apprentices. The need of a retiring age 
 is clearly shown, as an apprentice, entering the 
 shop at 15, would be only 40 at the end of 
 25 years' service. 
 
 Number of Pensioners. By going over your 
 books you can readily see how many employees 
 have been with you 25 years. This will give 
 you a line on the possible number of pensioners 
 and form a basis for the probable demand on 
 the pension fund during the next 50 years. It 
 
BASIS FOR PENSION FUND 137 
 
 must be remembered, however, that a larger 
 percentage of employees will serve the required 
 number of years with a pension plan in 
 existence. 
 
 Adding to the Pension Fund. There should 
 be a thorough thrashing out of all methods of 
 adding to the pension fund, and these should 
 be decided upon and put in writing, with a 
 request for suggestions from the various people 
 interested. The question as to who should 
 contribute to the fund should be carefully 
 considered. My own idea is that this should 
 be established entirely by the firm and that the 
 men should have no part in its establishment. 
 
 Amount of Pension. This varies widely. 
 Some large corporations, including railroads, 
 both in this country and abroad, pay 2 per 
 cent, of the average wage earned during the 
 10 years preceding retirement. Others pay 
 1 per cent, for every year of service, based 
 on the preceding 10 years as above. This is 
 hardly sufficient, as it necessitates a man's 
 serving 50 years to secure half pay. 
 
 Special Retirement. This should be pro- 
 vided for in cases where the man has become 
 incapacitated through ill health before his 
 
138 RULES OF MANAGEMENT 
 
 25 years of service have elapsed; a certificate 
 from a physician approved by the trustees 
 should be required in such cases. . 
 
 FURTHER CONSIDERATIONS 
 
 The continuance of the pension to the family 
 after the death of the beneficiary. 
 
 Whether the fund shall be invested in 
 municipal, state, national or railroad bonds, or 
 otherwise. 
 
 Whether the beneficiary may engage in 
 business on his own account after retirement if 
 said business would not be objectionable to the 
 trustees. 
 
 . Investing the trustees with power to suspend 
 the pension in case of gross misconduct. 
 Should a clause of this kind be adopted, it 
 should be very carefully worded, so that it 
 would be impossible for any trustees to debar 
 a man on account of any personal differences, 
 political or otherwise. 
 
 Ample provision to prevent any beneficiary 
 having a sum set aside for his own pension. 
 
 A discussion as to the plan of operation of 
 the work, in which the cooperation of the 
 employees may be had. The adoption of 
 
BASIS FOR PENSION FUND 139 
 
 straight piecework, premium plan, or a com- 
 bination of premium and bonus plans. But, 
 regardless of the plan adopted, some portion 
 of it should be used for the establishment of a 
 pension fund. 
 
 The possible discontinuance of the business 
 either through death, ill health, lack of profit, 
 or in any other way, and the disposition to be 
 made of the pension fund in such cases. 
 
 It should be thoroughly understood that 
 the successful carrying out of such a plan 
 rests with the employers alone. The whole 
 subject is presented as a business proposition 
 and not as a philanthropy in any way. Any 
 company having a reliable pension system will 
 be better able to retain its men for long periods. 
 It will, I am sure, be a marked step in the 
 advance of human progress if pension systems 
 can be made more general. The general adop- 
 tion of some such system, taking care to point 
 out its advantages to the men, will lessen the 
 restlessness and decrease the floating popula- 
 tion, will retain the men we have taken the 
 pains to educate, will increase the value of 
 the business itself, and cannot help but make 
 better citizens. 
 
UNIVERSITY OF CALIFORNIA LIBRARY 
 BERKELEY 
 
 Return to desk from which borrowed. 
 This book is DUE on the last date stamped below. 
 
 DEC 8 1947 
 
 LD 21-100m-9,'47(A5702sl6)476 
 
YB 18367 
 
 271309 
 
 UNIVERSITY OF CALIFORNIA LIBRARY