The Efficient Purchase and Utilization of Mine Supplies BY HUBERT N. STRONCK, E. M. Consulting Industrial Engineer, Member A. 7. M. E., Am. Mining Congress AND JOHN R. BILL YARD, E. M. Mining Engineer FIRST EDITION FIRST THOUSAND NEW YORK JOHN WILEY & SONS, INC. LONDON: CHAPMAN & HALL, LIMITED 1917 s COPYRIGHT, 1917, BY HUBERT N. STRONCK Stanbopc H.GILSON COMPANY BOSTON, U.S.A. THE EFFICIENT PURCHASE AND UTILIZATION OF MINE SUPPLIES INTRODUCTION. In the past, the stores department of the mining and smelting industries has been given but little attention, although materials constitute an important cost item in these industries. One of the principles of good man- agement is economy in the purchase and consumption of supplies. Material costs constitute an integral part of the total production costs, and are often a basis for good or bad management. A great number of our mines and smelters are situated at a distance from the large manufacturing centers, so that the time of delivery of materials is long, and the cost of trans- portation is high, which adds to the total cost of mate- rials. It is of utmost importance that supplies be on hand when needed, otherwise a serious loss in working time may occur due to waiting for material which should have been on hand. The store should be considered as a separate depart- ment or an entirely separate business. It should have complete charge of buying, receiving, storing, and local delivery of all supplies. 359181 2 lHE ; EFFICIENT PURCHASE AND Mining men are, as a rule, technical men, and unfor- tunately many of them have no training as to business methods and forms. In the following discussion the entire subject, from purchasing to use, will be described in detail, with hopes that it will give suggestions of some use to men engaged in the mining and metallurgical fields. Stress is laid on systems for large operating companies, with simplified methods for smaller concerns. Many illustrations and suggestions are given. They must be looked upon as suggestive, and must not be rigidly followed without considering whether some modi- fication should not be introduced to meet the require- ments of the particular case in point. The greater part of this material has been gathered from observations and notes, and some has been taken from articles in current technical magazines and ex- tracts from books on the Science of Management. THE LAWS OF MAXIMUM ECONOMY. To insure maximum economy, the following laws must be complied with: 1. Materials must be purchased from the lowest priced firms when materials are at their lowest prices. 2. Materials must come up to the contracted ex- cellence in quality. 3. The quantity purchased must be obtained. 4. Materials must be delivered at the specified time. 5. Materials must be properly housed and stored. 6. There must be no unnecessary waste of material. 7. No losses must occur, except through waste. UTILIZATION OF MINE SUPPLIES 3 In order to comply with the above laws, we must have : (a) A well-organized purchasing department. (b) An efficient receiving and testing department. (c) A proper stores system, with accurate accounting. (d) An issuing system which fixes the responsibility. (e) Reports which show the consumption of materials. (/) Methods which will prevent waste in the use of materials. (a) Purchasing Department. There should be a special function of Purchasing in charge of a competent purchasing agent. The resident agent should attend to the purchase of all general sup- plies such as are used in everyday consumption. For large, special orders, he should co-operate with an agent in the city office, who may be able to obtain quotations and deliveries on special large orders more expeditiously and economically than the resident agent. In the fol- lowing, Purchasing is discussed as a function and does not imply that this should be the sole duty of one man, in all cases. The purchasing agent is the man who acts as the safety valve of the company. He should have a working knowledge of the particular industry for which he is to purchase materials. If he has a working knowledge of the properties of materials, of their use, of the production or manufacturing of the materials, it is so much the better. The average foremen or department heads would buy according ito their own judgment without considering the condition of the market, the reliability of the firms from whom they would .purchase, the comparative 4 THE EFFICIENT PURCHASE AND prices of materials, etc. To secure the most desirable delivery involves a knowledge of business methods and forms. It is impossible for the purchasing agent of a large concern to possess technical knowledge of all the work, therefore he must depend upon written records, and have, these instantly available. If the function of buying is centralized in one man or department, he is usually blamed if the materials do not arrive on tune and the work is delayed; hence, in order to protect himself, he should take no verbal orders, but in each case require a properly filled out and signed requisi- tion blank, which shows the originating date of calls for material. Also, written requisitions have the advan- tage that the man who wants supplies is more careful in ordering over his own signature than through a simple verbal order. Catalogue Files. As an aid to the purchasing agent, there should always be on hand and properly filed and indexed, catalogues of several supply companies, to- gether with complete price lists. There are five general methods of filing: 1. Alphabetic by name. 2. Numeric an arbitrary number assigned to each firm or subject. 3. Automatic Index a combination of alphabetic and numeric. 4. Geographical by names of places. 5. Subject Classification classified numeric or let- ter system, in which materials are arranged by correlated subjects so that related matter is grouped in numeric or alphabetic letter order, based on the principles of UTILIZATION OF MINE SUPPLIES 5 the Dewey Decimal Classification or the Mnemonic Classification. The alphabetic filing of catalogues and price lists would be the simplest, since no index would be neces- sary; however, it has the great disadvantage that the filing space cannot be arranged properly. Catalogues vary in size from a mere sheet of paper or pamphlet, to large, elaborate volumes. An alphabetical arrange- ment would promiscuously mix large volumes and small pamphlets, so that a dictionary-sized book might have to be placed next to a small pamphlet. Filing space could not be efficiently utilized. The most adaptable method is filing according to the number system. By this method, a letter is assigned to each group, " A " to the largest size, " B " to the next in size, etc. In the " A " file compartments, the catalogues are numbered consecutively from " i " up. Similarly with the " B " compartments and the remain- ing compartments. The compartment letter and cat- alogue number is written on a gummed label, and this pasted on the corner of the catalogue. Each catalogue is now indexed in two ways: 1. By name of the dealer or manufacturer issuing it. 2. By name of the article. The Dealers' cards should show the name and address of the dealer, the articles which they sell, the file com- partment letter and the catalogue number. See Fig. i. The cards are filed alphabetically according to the dealer's name. A simple card register should be kept for each series 6 THE EFFICIENT PURCHASE AND of catalogue numbers, with the name of the dealer who issued the catalogue after each serial number. This is for the purpose that one may know what numbers have been used, and what number will be assigned to the next. Name Mining- Supply Co , Address .Denver, Co Jo. Articles Dr. Ko. Cat. No. Shovels A 8 Picks A 8 Cars B 1 FIG. i. . Generally a requisition gives only the name of the article, without telling the make, or it may be made by several concerns, hence an article index should be made. A card is used for each article which is likely to be called for. The name of the article appears on the card, followed by names of the different concerns that make it, and giving the file compartment number, the catalogue number, and the page. See Fig. 2. These cards are filed alphabetically according to the name of the article. Where a considerable number of books and lists have accumulated, they may be classified according to the UTILIZATION OF MINE SUPPLIES 7 Dewey System, and arranged numerically. The Dewey System of classification, applied to engineering subjects, is fully described in bulletins issued on that subject by the Colorado School of Mines and the University of Illinois. It is used to a large extent, as an aid in filing Article Shovels Name Page Dr. No. Cat. No. Mining Supply Co. 56 A 8 Wyoming TShovel Co. 7 G 2 FIG. 2. clippings from technical periodicals, and has proved entirely practical. Another method of classification which is rapidly coming into use is the Mnemonic System, used in the classification of stores, tools, charges, etc., in shops operated under Scientific Management. This is a splendid method, since it is an aid to the memory in recalling names, and also when the classified subjects are filed alphabetically according to the classi- fication, like subjects will be brought together in the file. The system of classification and filing for such sub- ject matter should be considered from the volume of material to be filed. If the amount and number of sub- 8 THE EFFICIENT PURCHASE AND jects are small, a simple system will give entire satis- faction, while where large amounts are to be handled, a more detailed and extensive method must be considered. The entire object of a filing system is to see that mate- rials are easily located, and any method may be con- sidered that gives satisfaction in that manner. Special Quotations. In some cases, quotations are requested, at intervals, for such materials as are regu- larly used. To secure uniformity, printed cards are made out, which list all materials, and sent to different sellers. Another method is to send out schedules of requirements and to request bids. There are two cases: 1. Where a bid is requested for a particular article or lot of goods, and 2. Where a bid is. requested for the regular supply of certain goods for a period of six or twelve months. Bids differ only from quotations in that they are more formal. For a bid, various instructions and condi- tions are given, and a form of bid is appended. Contracts are almost always made for the supply of the principal, regular requirements of a mine, for six or twelve months, i.e., for timber, dynamite, coal, etc. Even for a supply of such things as oils and cotton waste, it is good to contract for a period, since usually a little is saved thereby, and it also relieves the purchasing agent of the trouble of constant buying. The prices of some materials are subject to market fluctuations. Where the items are of importance, a study and record should be kept of these fluctuations, so that advantages may be taken of the market. UTILIZATION OF MINE SUPPLIES 9 Correspondence and General Price List. If there is a good central filing department, the purchasing agent need not file his correspondence separately. If not, he can easily arrange one of his own. Letters are usu- ally filed alphabetically according to the name of the concern. This groups letters from each firm, and the letters of each group are arranged chronologically. Some agents file quotation letters separately, arranged alphabetically according to the article on which the price is quoted. This, however, has its disadvantages, in the fact that there is other needless correspondence in the same letter, and also the quotations may be on several kinds of articles. The best method of keeping quotations is to have a separate card file. General groups are made of all articles, and these groups ar- ranged alphabetically. The group separation is shown by means of a " sign post " on the group card. A card is filled out for each kind of material on which a quo- tation has been received. The name of the article ap- pears on the top, and underneath is a list of concerns which offer the quotation, together with prices, terms, etc. See Fig. 3. These cards are arranged alphabeti- cally according to the name of the article, after each main group. It is well that a company knows what it paid for the material before, and also have quotations from differ- ent concerns on the same article grouped together. This will help to promote judicious buying. Economic Amount to be Purchased. In many cases, a better price per unit can be obtained if purchased in large quantities. Also, a reduction in freight rates or 10 THE EFFICIENT PURCHASE AND * 1 il \ t 1 1 Article q I 1 I Quant. | | S! 1 \ UTILIZATION OF MINE SUPPLIES II more rapid transportation delivery may be obtained, if car load lots are gathered together. In the pur- chase of large lots considerably in advance of their actual use, one must consider several added factors of expense. These are, generally, interest on the capital involved, storage expense, depreciation, insurance, etc. These factors of expense must be added to the large lot price to determine the actual price. If, after con- sidering all these factors, the unit price is still lower than the unit price if purchased in small lots, and unless some special factors enter the case, it will .be economi- cally advantageous to purchase in large lots. It will be noticed that this subject entails a detailed study of many conditions. Book of Standards. A standard, applied to materials, is a carefully drawn specification or description of a unit of material, which is best and most economical for the use to which it is applied. It does not imply per- fection. When, after rigid tests, some new kind of material is better than the present standard, it super- sedes this as the new standard. A standard, however, should never be changed unless it is proved beyond doubt that the new kind is better. In compiling a book of standard materials, considerable investigation and testing is necessary. Materials which are used daily in large quantities should be considered first. Each article is studied separately and an investigation car- ried on to see whether or not a better one than the one in use at the present time can be obtained. In general, this study involves the use to which the material is put, its connection with other materials in use, number 12 THE EFFICIENT PURCHASE AND of uses to which it can be put, life of the article, its pur- chase price, delivery time, ease of storage and handling, etc. In the study, the comparative method is used, in which similar articles made by different manufac- turers are compared as to their advantages and disad- vantages. It will be noticed that this method may also be used to advantage in the selection of machines and mechanical equipment. After the best material for the purpose has been de- termined, a complete description of it is made on a sheet of loose leaf paper, and filed in a loose leaf book. A card system may be used, but the paper has the ad- vantage that several carbon copies can be made, so that several copies of the book can be produced at the same time. The filing, or arranging in the book, is usually done alphabetically, although a card index method may be used. A copy of this book, kept up to date, should be in the hands of the purchasing agent, one for the store-keeper, one for the auditor, and one which is avail- able to all. When anything is to be purchased, the pur- chasing agent must refer to the Book of Standards, and if the article is already specified in that book, he must purchase according to those specifications. In case any new kind of material is needed, the book should first be consulted to see whether or not an already specified standard could be used for the purpose. Many direct and indirect advantages are gained by the use and maintenance of standards. 1. The best quality for each purpose is obtained. 2. The lowest purchase price, since a standard can usually be ordered in larger lots. UTILIZATION OF MINE SUPPLIES 13 3. Storage place permanently fixed. 4. The workmen become accustomed to that par- ticular type. Purchase Orders. Purchase orders are usually made out on a regular purchase order blank, and signed by the purchasing agent or an authorized representative. A simple method is one in which the order is made out in duplicate. The original is sent to the firm from whom the purchase is to be made, and the carbon copy re- tained in the purchase order book. When the goods arrive, they are checked on the order in the book, and any mistakes noted. This method is sufficient for small concerns, but for large concerns, where the connection between the buyer and the receiver is not so close, a more elaborate method must be used. A good system, used by many, is one in which three forms are used, the original, the duplicate, and the ac- knowledgment. These are made out in triplicate by means of carbon paper. Each order made out is given a consecutive number. Referring to an order by number is the easiest way. The original and the acknowledg- ment 'are sent to the purchasee, and the duplicate kept in the office as a permanent record. The firm which receives the order is requested to fill out the acknowl- edgment and return it at once. On this acknowledg- ment they are to place the promised delivery date, and when it is returned, it is filed by the purchasing agent. When the person who requisitioned the goods wants to know when they will arrive, the agent can give him definite information. An order register is kept, so that knowing the number, one can easily tell 14 THE EFFICIENT PURCHASE AND what the order is. This order register consists of a list of the orders arranged in sequence according to the order number. The duplicate orders are filed alphabeti- cally according to the name of the purchasee. When the acknowledgment is returned, it is clipped to the duplicate order, and checked out when the goods are received. A still more accurate and better method, which is especially adapted to large concerns, but may also be used to advantage by smaller concerns, is the one used in Scientific Management. The purchase order is made out in triplicate on a special blank. The original, which is sent to the purchasee, requests an acknowledg- ment of the order and a promised delivery date. This may be appended in the form of a detachable stub. When the promised date of delivery is received, it is entered on the two copies, and the copies filed in a " tickler " or reminder file, to come out at that date, or a time a little previous. When this time arrives, one copy is placed on the purchasing agent's desk, and the other sent to the store-keeper. The store-keeper's copy contains only the names of the articles, and not the number of each. The purpose of this is that the re- ceiver must make a careful count, and enter the quan- tities opposite the names, not merely check off a given quantity. The carbon paper used for this copy is of a narrower width, so that the quantities are not written through from the first two slips. This copy notifies the store-keeper that goods are expected to arrive, so that he can make advance arrangements for receiving them. See Fig. 4. UTILIZATION OF MINE SUPPLIES The reminder file method is in use at a great many concerns for various purposes. A file compartment, or PURCHASE ORDER THE REX MINING CO. Purchase. Nn. Talr.rt, Clnln. 191 Charge, in To Gentlemen:- Kindly ship us the following material via nnt later than 191 Amount Articles Price Terms Purchasina Anen.t Note: Our Purchase Number must appear on your invoice, otherwise invoice will be returned for correction. ACKNOWLEDGEMENT THE REX MINING CO. Purchase No. Tnlca. Coin. 191 Please fill in shipment date and return this stub at once. Date. Purchases FIG. 4. simply an envelope, is used for each day of the year, and the reminder slips filed in the compartment or envelope 1 6 THE EFFICIENT PURCHASE AND which represents the day on which they are to be issued. For some purposes, one compartment or envelope is made out for each hour of the day, or even smaller sub- divisions, and each morning the slips in that file are sorted in the hour, or fraction of an hour, file. The " tickler " file can be put to many uses. Still another method of following and checking the progress of a purchase order is by means of a Purchase Schedule, as illustrated in Fig. 4a. The principles of this method have proved to be very efficient and they have a wide field of application. A complete chrono- logical history of each order is obtained by this method. (b) Receiving and Testing. It is essential that the quantity and quality of the materials purchased is actually obtained. One of the most fruitful causes of losses in large concerns which do not have a good receiving system is shortness in weight, amount, or quality, due either to mistakes, negligence, or dishonesty on part of their employees or others. The person in charge of the function of Receiving should be held responsible for the accuracy of the statements of materials received which he for- wards to the purchasing agent. The purchasing agent checks these figures against his copy of the purchase order and the invoice. When all is found correct, he notifies the auditor to that effect, who credits the ship- ping concern with the amount of the invoice. Where the store-keeper has a copy of the purchase order of the received material, it is best that the quantities are not shown, as previously explained, since he will be more UTILIZATION OF MINE SUPPLIES PURCHASE SCHEDULE ^ Month of March *s i Answer to Tracer ^ ^ t 1 <8 5} cc h BS SS | I 1 Received -f^ 5 i Ci oo >H l^ fe ^ PS U >O (^ Wanted o I 'Promised * n S3 3 at CQ 0> 00 ^ Bill of Material Requisiton Ordered r^ K| O MS 01 ct O e^ S* K| 5~ H 1 ig 'mi. I.I I M II M I'lIKCIIASK AND careful in tin- <<>un1, and it will he easier to discover (li.,< repaiH ic:,. ll i:> al;,o well l<> notify Hie person who Nfi.me Date on/, -ml by you an />r.n.t.i.fvn. Month nf 1Q1 Date Candles Powder Fuse Caps Steels Oils FIG. 1 6. Since the previously described case occurs, at times, some other schemes have been planned out and put into use. A type of these, for special cases, is the Budget, 66 THE EFFICIENT PURCHASE AND or Bill of Material, System. This method is based on the principle that the store-keeper can be held respon- sible for . over-issues of materials for a job, when he has a complete list of materials necessary for that job. This system can only be used where the work is such that it can be planned out in advance, specifications made for the materials necessary, and these materials entered in detail on a Bill of Material form. Then a copy of this Bill of Material is sent to the store-keeper with instructions somewhat like the following: " Issue material to any responsible workman who calls for it, provided the materials are listed on this sheet, but take precautions to get the workman's number or name against every amount of goods which he takes out. When the list has all the items checked off, issue no more goods, unless spoiled material is returned, or some satisfactory explanation comes from the foreman, under his signature, as to why the additional material is needed.'' This system has the following advantages: 1 . It prevents theft, since no one can obtain materials unless he is responsible for them. 2. Wastes are lessened, since additional material called for is noted and the cause investigated. 3. It notifies the store-keeper in advance what ma- terials will be needed. 4. It lessens the accounting, since it eliminates the handling of individual requisitions. 5. It enables the men in charge to keep close watch on all material. UTILIZATION OF MINE SUPPLIES 67 A modification of the above plan is one where materials such as oil or waste are issued, which cannot be allotted to any particular job. A certain amount of such ma- terial is issued to each man every week and no more given to him, without explanation, until the next dis- tributing day. The needs of each particular case must be studied and the amount to be issued set accordingly. Another modification of the Budget Method is used by large mining companies for Extraordinary Expenses. Extraordinary Expenses are those which exceed a mini- mum amount fixed by the officers of the company. If it is estimated that the cost of a new job, repair, improve- ment, construction, or additional equipment, amounts to more than this fixed minimum, the approval of the general manager and the general superintendent is re- quired. The method of handling these items is to make out at the mine, an estimate, which gives details, and forward copies of this to the officers concerned for their investigation and approval. (e) Reports of Consumption of Supplies. In order to know where and when to place restrictions on the issuance and consumption of materials, and in order to obtain data from which to study material con- sumption of the different jobs or workmen, the manage- ment must determine standards of consumption for dif- ferent kinds of work. Daily reports are usually required from the timbermen, drillers, enginemen, etc., as to how much timber, pow- der, oil, etc., they used that day. Fig. 17 shows a form of report for timbermen. Other reports are made out 68 THE EFFICIENT PURCHASE AND in a similar manner. One of the office men compiles these reports on forms for the month's supply. At the end of the month, these are totaled and the cost THE BEX MINING CO. Timberman's Report Date n'rlnrlf Kl^ft Level Kt.npc <^r Drift Caps Sills Posts Stulls Butt Caps Ties Lagging Sprags Ladders Planks, ft. Cribbing Remarks Timberman FIG. 17. entered. Figs. 18 and 19 show forms for the monthly compilation of such reports, for timber and powder. Figs. 20 and 21 show forms for noting the supplies used on engines and a record of coals consumed. The amounts are entered daily from the individual reports. The UTILIZATION OF MINE SUPPLIES 69 card, or page, is usually made large enough to show a month's consumption. THE REX MINING CO. Timber Report. Month oj W1 I 1 5 rs 03 ! 1 ^ Butt Caps 1 Lagging i Planks-Ft. Cribbing Remarks 1 2 S U - J ' '- ; "- ' - *=i * _ == ==: FIG. i 8. THE BEX MINING CO. Powder Report T*vel Moni hnf 191 Place. I jl 1 VsPowder Ibs. 1 Powder 100 % Ibs. A 1 1 Remarks 1 2 3 " FIG. 19. Timber Records. In mines where considerable tim- ber is used, special methods of keeping track of this have been adopted. For a large mine, this problem is 70 THE EFFICIENT PURCHASE AND UTILIZATION OF MINE SUPPLIES a difficult one. Timber is usually placed as the work progresses, re-timbering is a frequent occurrence, and the age of any particular set of timber, the cause of its failure, and many other items that are of value to the manager, soon become hopelessly confused. Where tim- bering or re-timbering is done on contract and payment made every two weeks, it is imperative that some meth- od of recording and posting timber sets be adopted. The THE REX MINING CO. Coal Record s 1 1 L ^ Si I 5) "5 ^> S) 3 1 I 5 1 4 On Hand at First of Month 12.-) 45 274 Amount Received During Mo. 200 500 Tnf.nl, fnn.K 32o 545 Amount Consumed During Mo. 280 271 4,' >74 FIG. 21. following is a description of a method used especially for drifts, but it can easily be extended to embrace all timbering : Every stick of timber, after being set in the mine, is blazed with a carpenter's hatchet, and the date of set- ting punched thereon with a set of steel figures and then painted over with a coat of wood preservative paint. The head timberman on his final round, just before the end of the shift, does this marking, and at the same time fills out a blank form as shown by Fig. 22. The sheets are kept on file by levels, and the totals brought down and posted by the book-keeper. Old timbers re- THE EFFICIENT PURCHASE AND g i 7 ^ s 3 S ^ a 1 PLAN 1 | g a 5 5 i Ch Cb ^ ^ H 1 fe; STULLS . Dimension P 1 | | ^ ?. i , 5 f ^ i P9 I i e i 8 i 1 3 menston 3 Q 1 s 1 "1 S o Q 1 2 ! i 1 ' 9 UTILIZATION OF MINE SUPPLIES 73 set are marked a second time. The original date is left intact, so that when a set of timber is finally re- moved, the individual timbers which compose the set practically tell their own history and age. " Lost " Material. A careful inspection of some of our mines will show that large amounts of old but per- haps re-usable timber, tracks, switches, pipes, wires, etc., are apparently " lost " in the old workings or aban- doned parts of the mine. In some cases this amounts to a serious figure, but apparently the management is not aware of this. It certainly would be time well spent to keep a closer account of this material. Practically a debit and credit ledger system could be used for this. The mine could be divided into different parts, and a regular charge account kept for each part. When any material is moved to this part, the part should be charged with it. When material is removed, the part should be credited. In this manner one could keep a careful record of materials underground, and the time con- sumed to keep such a record would certainly be well spent, since it would be of considerable aid to prevent materials from getting " lost." Graphic Charts. Some concerns make elaborate graphic charts which show the consumption of sup- plies. Material costs are usually computed per ton of ore mined or treated, and these material costs per ton plotted, together with the date of consumption. In some places, charts which show the total consumption of materials are in vogue, while in other cases a chart is made for each important item. The chart method is merely an easy method of showing consumption 74 THE EFFICIENT PURCHASE AND records at a glance without the need of going through a mass of statistical figures. Some concerns gather elaborate statistics, but seldom put these to actual use. A manager is more likely to make a study of a good chart than of a mass of figures. In a chart, one can see abnormal conditions of consumption at a glance, and center the analysis on these, rather than analyzing long lists of figures where the maximum of these show normal consumption, and only once in a while an ab- normal figure is indicated which may pass the eye with- out notice. Abnormal points on a chart, whether they indicate an unusual excess or unusual minimum of con- sumption, should be noted, and an investigation made as to the reason why they diverge from the normal. Such an investigation will often result in a general re- duction of consumption. Graphic charts are also of use in the Reports to the Board of Directors or to the Stock- holders, since they are a condensation of statistical figures. The evil of too many reports and statistics is also recognized. Some superintendents or managers spend considerable time each day reading reports of labor and material consumption, when their time might well be occupied with other work. The following is a funda- mental law of management: " Arrange the work in such a manner that no high priced man does work which a lower priced man can do." In order to comply with this law, the Exception Principle can well be put into use in the study of reports and charts. This principle is based on the fact that high officials need only inves- tigate exceptional cases. A manager need not feel worried when he knows that everything is working under UTILIZATION OF MINE SUPPLIES 75 normal conditions. Only in cases when conditions be- come abnormally high or low should he need to inves- tigate. Charts according to the Exception Principle are made in the following manner: A chart is plotted which shows times and units of con- sumption or output. By a study of the past records, one determines the normal figures, and draws a heavy line across the chart to represent this normal. This is the base line from which the abnormals diverge. The foreman's zone is indicated by a line above and below this base line, and parallel to it. As long as the con- sumption or output curve remains in the foreman's zone, the report need go no further. The next zone would be that of the superintendent; then a zone for the manager, and perhaps one for the president. If the curve enters the superintendent's zone, the report is shown to him; when in the manager's zone, it is also for- warded to him. The limits of these zones are arbitrary and depend upon the value of the consumption or out- put plotted, and the need of investigation by higher officials when abnormals show. Fig. 23 shows a chart made on this principle for powder consumption per foot of drift, and it will probably make the method clear. One can readily see that this method has many uses. (/) Methods of Preventing Waste. Records of Equipment. It is to be recommended that all companies keep a complete record of their machines and equipment. A good method is one where each ma- chine and piece of equipment is given an inventory number, and a full record is kept which gives the entire 7 6 THE EFFICIENT PURCHASE AND General Managers Zone Supfs Zone Foreman's Zone I, 5 6 7 8 9 10 11 12 18 Ik \$15 I" 17 18 19 20 SSI Pounds per Foot \ UTILIZATION OF MINE SUPPLIES 77 history of the piece. A simple card record may be used. A card is made out for each piece of equipment. This card has the same number as the one affixed to the represented item. Such a card should show from whom the item was purchased, the date of installa- tion, the original cost, the cost of installation, cost of Mn.rMnr A7h Dcpt. Description Total Boiifihtof P.O. Date Cost Installed No. Cost F'ght > Remarks Year Dep. 2^ l rovcm""t d s Nature of Improvements Date Order No. FIG. 24. improvements or betterments, and the depreciation as inventoried each year. The rear of the card may show repair and maintenance charges, so that the compara- tive efficiency of each machine may be shown. Fig. 24 illustrates such a card. Another plan is one where a drawing is made of all power houses, shops, etc., which show the exact location of each machine or piece of equipment. The items are numbered, and the number placed on the article itself and on the drawing. A key to the numbers is placed on the drawing. In addition to this, the card record 78 THE EFFICIENT PURCHASE AND is also used for detailed informations. Such a drawing alone presents considerable information. These inventory records have many advantages. In case of fire, they are of great use in making insurance adjustments. In case of breakdown, there need be no search through old catalogues to get information as to where and from whom new parts are to be ordered. They keep the management informed as to the exact status of the plant. The true value of the equipment, both in total and individual items, may be easily ascer- tained, and the physical assets of the company deter- mined at any time with very little work. Tools. The variety of tools used in and about mines, unless there is a large machine shop in connection, is not very great, but the number of tools is at times very large. One seldom finds an accurate tool record sys- tem in use about mines. Tools, like materials, represent money, and the same laws which apply to materials, also apply to tools. A general law is, that when a tool is not in use, it should be kept in some proper place. The place for tools not in use is the tool-room. Tools that are used constantly must be kept in a place convenient for the workmen. The location of these places depends entirely upon the working conditions of each individual case. A large bulk of the tools can be kept in a central tool-room. The tools should be so arranged in this room that anyone can find them, even if he is a comparative stranger in the room. The records must be so arranged that the man in charge knows at all times when tools are out, and in whose possession they are to be found. Since the variety of tools used in mining work is not UTILIZATION OF MINE SUPPLIES 79 great, it is not difficult to arrange such a room. How- ever, when a large machine shop is run in connection, the problem becomes more complicated. Tools in the tool-room should be kept in good con- dition. The workmen should be relieved of the re- sponsibility of caring for their own tools. This should be a separate function. A workman cannot do efficient work unless his tools are in first-class condition, and the management should take this responsibility upon their shoulders. There should always be a plentiful supply of tools, so that a workman should at no time fail to ob- tain one when needed. The workman should be re- sponsible for the tool after he has received it, but there should be no unnecessary trouble to get it. For the average mine tool-room, a simple method of arrangement as to classes and groups will be sufficient. Proper racks or boxes should be made for each kind of tool. Equally as important as to be able to find a tool in the tool-room is the ability to tell where the issued tools are. A simple but efficient method is one where a workman is provided with a set of brass checks stamped with his number. When a tool is issued to the worker, this brass check is put in place of the tool. This check acts as a receipt for the tool, and is not given back to the workman unless he returns the tool. When a work- man calls for a tool which is not on hand, one can soon tell who is using this tool. By this simple scheme, one can keep track of all tools out of the tool-room. When a workman leaves the employ of the company, he must return all checks to the tool-room before he is given a clearance paper. 8o THE EFFICIENT PURCHASE AND Besides keeping track of the tools, a system should be in use whereby one can report to the management the kinds and makes of the most serviceable and profitable tools. A good method is one where the date of purchase and the name of the firm which made it, if not already there, is stamped on the tool. Then the tools may be issued under comparison a number of times, and the management can soon tell which makes prove the most efficient and economical. One can also determine the expenses connected with tools, and what workmen are the most economic users of tools. Oils and Lubricants. Some concerns use large amounts of oil and lubricants, and this factor a'ssumes considerable importance at times. Large quantities of oils are wasted by spillage and evaporation. High- grade oils are used where low grades would do as well. Considerable savings in lubricant costs might result where some definite oil system is in use. The floor of the special oil house should be built with a sloping floor, of concrete or cement, with a drain at one end. Any waste oil will then drain to one end where it may be collected in a tank set under the floor. This oil is easily cleaned for re-use by passing it through an oil filter. Drip-pans should be placed wherever practical, and the drip oil cleaned by passing it through this filter. Large concerns find it convenient to make oiling the function of one man or group of men. Enough oil for a shift is distributed to the individual lockers of each oiler. The cans in these lockers are filled by certain men, so that the individual oilers need not go to the oil house for their supply. Time is saved by this method. UTILIZATION OF MINE SUPPLIES 8 1 It also fixes the responsibility on each oiler for the oil allotted to him. The man in charge of the oil house has absolute control of the oil issued, so that he can keep accurate records of oil distribution. Any unused oil is emptied into a surplus can, and when enough has accumulated for a shift's work, it is used. The daily issuing record is kept in the form of a balance record, and may be checked at the end of each month by a physical inventory, since errors in measurement arise by measuring out numerous small quantities each day. Timber. The results obtained by the telegraph, tele- phone, and railroad companies in the preservation of poles, ties, and piles, has caused the preservation of tim- ber to become more and more common in recent years. However, little has been done as regards mine timber. Enormous amounts of timber are used in and about mines and the study of preservation of such timber should be made an important subject. The U. S. De- partment of Agriculture and the Forest Service have conducted some experiments and gathered statistics on timber preservation. Several bulletins and circulars have been issued. By far, the greater amount of ex- perimenting and application has been done in Ger- many and many articles have been published on that subject. Because of the rapid decay of timber, especially in coal mines, the artificial preservation is of great impor- tance, and as the price of wood is increasing day by day, it will soon become necessary to take rigorous steps in that direction. Conditions in most coal mines are such 82 THE EFFICIENT PURCHASE AND as to favor the growth of wood-destroying fungi. If the bark is peeled from the timbers, protection is offered against damages caused by insects, but the only remedy for decay is the impregnation of some liquid which is poisonous for the fungi. The following is a brief resume of the general methods. Only, to date, satisfactory preservatives for mine timber are discussed. The three general methods of applying the preser- vative are: 1. Brush Treatment. This method has several dis- advantages. (a) It is difficult to cover completely all of the timber and to fill all checks and cracks. (6) The preservative will not penetrate deeply. The cost of application by this method is cheap, but little or no advantage is gained. The cost of treatment is likely to be higher than the saving which results from a prolonged life. 2. Open Tank Method. The timber is immersed in the solution in large tanks, for a suitable length of time. Some remarkable results have been achieved in the tests. The economic success of the practical appli- cation will depend upon the cost of the preservative. 3. Closed Tank Method. The greatest impregnation is obtained by this method, and where large amounts of timber are to be treated, it is to be recommended. The wood is placed in a cylinder, and first subjected to a high vacuum. This rapidly seasons the wood. Then the solution is sucked into the cylinder, and when filled, a high pressure is applied by means of an air pump. The timber is removed, and the water of the solution UTILIZATION OF MINE SUPPLIES 83 allowed to evaporate, which leaves the salts fixed to the fiber. Creosote is commonly used to treat timber used for telegraph and telephone poles, piles, and railroad ties. For timber to be used underground in mines, it has some serious disadvantages. It has a bad effect on the eyes and skin of the miners, has a piercing and disagree- able odor, and many men decline to work in places where the timber has been so treated. It increases the fire risk. The timber is greatly increased in weight. As regards the prolongation of life, creosote is a good preservative, but because of the above disadvantages, it can hardly be considered in the treatment of timber for mining purposes. The knowledge on the subject to date would seem to advocate but two kinds of preservatives, viz.: bichlo- ride of mercury and sodium fluoride. The fluoride is not applied pure, but is mixed with other salts. Wol- man's experiments have produced a suitable mixture. Both of these are strong and effective salts, and but small quantities need be injected into the wood. The Wolman mixture is economic as regards price and efficiency. It is applied hot, and when great quantities of timber are to be treated, the vacuum and pressure method should be used. The bichloride of mercury is usually used in the open tank method. The practical applications of these methods show that it is possible to economically treat mine timber, and where the timber problem is an important one, they certainly should be investigated. The following formula can be advantageously used 84 THE EFFICIENT PURCHASE AND to compare the economic values of treated and un- treated timber: r c A = c -(,-rr-.' where ' C = initial cost of timber, per unit (treated or un- treated). r = rate of interest. n = life of timber in years. A = initial cost of timber plus a sum, which at the end of n years will accumulate enough inter- est so that a new unit of timber can be bought with this interest. As an example, assume that untreated timber, now in use, cost 10 cents per cu. ft., and that its life is 2 years. How much can we afford to spend for treatment in order to double the life of the timber? Rate of in- terest 5 per cent. Solution: A = $0.10 - ^ * $1.125. (i-o.os) 2 -! Hence, if C' is the total cost of treated timber per unit, $1.125 =C'- ? ^. , (i-o.o 5 ) 4 -i from which C' $0.176. Therefore, $0.176 less $0.10, the initial cost of timber, equals $0.076, equals the amount we can afford to spend per cu. ft., for treatment. Pipe Lines. In arid regions, the problem of pipe protection against alkaline soils becomes a serious one. UTILIZATION OF MINE SUPPLIES 85 In some regions the percentage of chlorides and sul- phates in the soil is quite high, and although the pipes are heavily coated with asphaltum paint, they corrode rapidly and pit-holes develop. It is obvious that a protective coating which will double or triple the life of a pipe is an important factor. In the investigation of this problem, a number of coverings have been developed. Various kinds of as- phaltum paints have been used without any very great success. Pipes covered with crude oil after being placed in a ditch immediately rilled with earth were found to soon lose the oil covering by reason of its soaking into the sand or soil. The metal was left as badly exposed to the alkali as without a preservative. Quick setting, bituminous enamels, if heavily applied, give fair results. But these cannot be successfully applied to a moist pipe or when the temperature of the pipe is below 60 degrees F. The enamel, although applied heated, soon becomes chilled and is hard to apply. The most successful method, and one extensively used for large pipe lines, consists in covering the pipe with especially prepared roofing paper. This paper is made by running the deadening felt through a mill and plung- ing it into a number of baths of hot asphaltum, so that the fibers are thoroughly impregnated with the as- phaltum. In some cases, asbestos papers are similarly treated. The paper is wrapped spirally about the pipe. It can be obtained in any desirable width from 3 to 12 inches, and from 50 to 100 feet in length. The pipe is coated with hot asphaltum and before it has had time 86 THE EFFICIENT PURCHASE AND to set, the wider strips are wound spirally over the as- phaltum. The crack which is left between each wrap of the wide strip is coated with hot asphaltum and a batten, or 3-in. strip, wound on to cover it. At the joints, 3- in. strips are stuck together with asphaltum and are wound around the pipe at either side of the collar, un- til a shoulder is built up flush with the outer circumfer- ence of the collar. The sleeve and shoulder thus built up are coated with hot asphaltum and the whole cov- ered with a i2-in. strip of paper. The last strip is bound on with wire, as are the ends of the paper which are wrapped spirally. The advantages of wood pipe for water transportation are somewhat offset by the liability to rapid decay. When a wood pipe is thoroughly saturated with water, and not exposed to the air, its life is lengthened. Pipes covered with clay help to bring about this condition. Clay holds moisture, and thus means continuous and thorough saturation of the wood at the surface of the pipe. Moist clay is not a good culture bed for the growth of fungi that cause decay. Prevention of Corrosion of Iron and Steel. Steel is being used more and more every day for buildings, structures, and equipment. The decay of iron and steel by corrosion is more rapid than that of wood, if natural agencies are allowed to act on them. On the preven- tion of this decay, depends the permanency of the work. The size and consequent high cost of such structures make it a duty to preserve them from decay. The technical preservation of iron and steel presents a great many separate problems, each one of which has UTILIZATION OF MINE SUPPLIES 87 special considerations, and requires different treatment. The protection of the great bulk of finished iron and steel products, must inevitably remain a paint problem, and the discussion will be limited to this phase. A general statement which regards corrosion is as follows: " Water is necessary before corrosion can take place, since this is the medium which contains or supplies the hydrogen ions which are necessary for the interchange with iron. In order to prevent rusting, you must either exclude water entirely, or have some substance present which will prevent the formation of hydrogen ions. The only way in which this problem can be solved is by the application of a paint which will protect the iron, by being absolutely impervious to water, or one which contains in itself some substance which can produce the passive state." In the painting of iron or steel, the surface should be most carefully cleaned from all scale, rust, dirt, etc., and the paint should be applied in dry weather. No paint- ing should be done in wet or freezing weather. When, for any reason, it is necessary to repaint, the repainting should be done on clean surfaces absolutely free from all rust, paint skins, dirt, etc. It is not sufficient to apply a new coat over an old paint surface under which traces of corrosion appear. The new paint may cover the old surface and adhere firmly thereto, but the cor- rosion goes on underneath just the same. Any single variety of paint cannot fulfill all purposes for- which protective paints are used. Inhibitors are substances which restrict or repress corrosion. An in- hibitive priming coat should always be placed between 88 THE EFFICIENT PURCHASE AXD the steel surface and the rust-stimulating pigments. This inhibitive coating consists of compounds of the chromes, zinc oxide, white lead, red lead, willow charcoal, etc. Over this priming coat, the air and moisture ex- cluding coats can be safely applied. Large amounts of galvanized iron are used for siding and roofing purposes. In order to secure the proper adhesion of paint to this, several different methods of preliminary treatment are used by painters. Vinegar, acid salts, ammonia, sal soda are generally used. The object is to produce a slightly roughened surface to which the paint will adhere. As a matter of fact, this can be done away with by the use of a primary coat of a sharp-toothed, silicious pigment, ground in varnish. This should be well brushed onto the metal, and serves for the purpose of cementing the pigment to the zinc. Any subsequent coats of paint may be applied. Bituminous coatings undergo certain changes under the action of sunlight and air, hence their successful application has been confined to cases in which sunlight is excluded. They are used for painting pipe lines, smoke stacks, tunnel work, and piping generally. By mixing lime with hot coal tar, a valuable mixture has been produced for pipe dipping. Baked japan coat- ings are much in use. They are compounds of high grade asphaltic gums, such as gilsonite and elaterite. The material to be coated is generally heated and then dipped into the hot mixture. Properly refined coal tar makes a good covering, es- pecially for metal surfaces which are subjected to the ac- tion of corroding gases. Crude coal tar should never be UTILIZATION OF MINE SUPPLIES 89 used, since it contains elements which make it unsuit- able for use as paint. A satisfactory paint is produced by cutting moderately hard pitch with about three- fourths of its volume of light oils. Such paint may be applied cold and will dry in a comparatively short time. The protection of iron in underground workings is a difficult problem. Seepage drippings may be of an extremely corrosive nature. The moisture is apt to be rich in chloride and other corrosive electrolytes. These salts act to remove paint coverings. As pre- viously stated, a properly refined coal tar, treated with lime, is well adapted for certain conditions. Water tanks should be painted on both the inner and the outer surfaces. A good mixture for such a purpose consists of 25 Ibs. dry red lead, 5 Ibs. litharge, 5 Ibs. iron oxide, one gallon boiled linseed oil, and one gallon of turpentine. Three coats are usually given. In recent years the substitution of metal supports for underground workings to replace timber has been much discussed, and in some cases put into effect. The appli- cation of economic principles to the use of such metal supports, demands that the length of life be as long as can possibly be obtained. True economy will require the painting of all steel for underground operations with one shop coat of good paint and with at least one field coat. Steel should not be painted with carbon paints in whose manufacture sulphuric acid has been used. The use of improperly refined and untreated coal tar products should, therefore, be avoided. Natural car- bons, such as graphite, and the hydrocarbons, such as asphalt and gilsonite, may be recommended for second QO THE EFFICIENT PURCHASE AND coat work if properly ground and mixed with a good vehicle. Red lead, although not absolutely inhibitive, has been demonstrated in all kinds of exposures, to be a first-class pigment. The oil in which it is mixed should be pure, and the raw is better than the boiled. Steel mine supports should be painted at the shop with one coat of red lead and raw linseed oil, mixed in a pro- portion of 15 Ibs. red lead and 2 Ibs. of asbestine, to a gallon of pure, raw linseed oil, with sufficient japan drier to work well under the brush. A field coat of first-class graphite paint is then applied. For a detailed discussion of this subject one should refer to the Transactions of the American Society for Testing Materials. Fuel Consumption. At most of the metal mines, the fuel item is one of great importance. Because of the temporary character of most of the mining enterprises, the boiler and engine equipment is not, in all cases, of as high a type as in permanent industrial plants. As- suming, however, that all factors have been taken into consideration in the purchase and erection of this equipment, there still remains the great difference in fuel consumption when boilers are fired by unskilled and negligent firemen and when fired by trained, first- class firemen. This side of the problem only will be discussed. Losses due directly to the improper firing of the boiler are: 1. Heat carried away by the stack gases. 2. Losses caused by incomplete combustion. 3. Loss of fuel through the grate. UTILIZATION OF MINE SUPPLIES 91 4. Unburned fuel carried beyond the combustion chamber in the form of soot and smoke. Coal may clinker and slag, which stops the admission of the right amount of air through the grate. This re- sults in the formation of CO instead of CO 2 , and only one-third of the heat generated by perfect combustion will be obtained. Some firemen use a heavy fire bed, so as to make the interval between firing quite long. This gives them longer periods of rest. Some firemen turn the fire upside down and mix much ash with the white hot coal, every time they use the slice bar. The ash melts, and by the time it has reached the grate, it has cooled and formed slag or clinker which increases the resistance of the fuel bed. Every fireman should understand that just as much fuel can be wasted by an excess of air which comes through uneven and too thin fires, as through an open furnace door. For a given boiler, quality and size of fuel, and intensity of draft, a certain depth of fuel will give maximum efficiency. Too thin a fire results in an excess of air, and too thick a fire in a deficiency. The economy is lowered in either case. On account of the number of conditions upon which the proper thickness depends, it can only be determined for a particular case by actual test. In general, with natural draft, fine sizes of coal necessitate thin fires, since they pack so closely as to greatly restrict the draft. Thin fires require closer at- tention to prevent holes being burned in spots, and re- spond less readily for sudden demands for steam, but have the advantage of letting the air required pass through the grate; whereas thick fires often require air Q2 THE EFFICIENT PURCHASE AND to be supplied above the grate to insure complete com- bustion. Thick fires require less attention and hence are preferred by firemen. Where sufficient draft is available, thick fires are more efficient than thin ones, as the air excess is more readily controlled. In order to secure good fuel economy, the following points should be adhered to: 1. Large lumps should be broken, as they do not ig- nite properly, and their presence causes holes to form in the fire which allow the passage of too much air. 2. Ash pits should be kept bright at all times. If they become dark, it is evident that the fire needs cleaning, which if not done will cause imperfect com- bustion and smoke. Ashes should not be allowed to accumulate in the ash pits, as they not only shut off the air supply, but may cause the grate to be burned. 3. In firing the coal should not be landed all in one heap, but it should be spread over as wide a space as possible as it leaves the shovel. 4. The fresh coal should be placed from the bridge wall forward to the dead plate, and not more than three or four shovels added at a charge. Where only a small capacity is required, firing by the coking method is the best. * The fresh coal is placed at the front of the fire, and pushed back and leveled when it becomes coked. 5. One side of the boiler should be fired at a time, so that the other side, which contains the bright fire, will ignite the volatile gases from the fresh charge. 6. The fire should not be allowed to burn down dull before charging. If this is done, it will result in a smoky stack and an irregular steam pressure. UTILIZATION OF MINE SUPPLIES 93 7. No holes should be allowed to form in the fire. If one forms, it should be filled by leveling, and not by a shovelful of fresh coal. The fire should be kept even and level at all times. 8. The fire should be carried as thick as the draft will allow. If the draft is poor, a thin fire will be in order; if strong, a thick fire should be carried. 9. The draft should be regulated by the bottom or ash pit doors, and not by the stack dampers. If the stack damper is used, it tends to produce a smoky stack. The closing of the ash pit door decreases the capacity to burn coal. 10. A good general rule is to fire little and often, rather than heavy and seldom. The former means economy in fuel and a clean stack, while the latter sig- nifies extravagance in fuel, and a smoky stack. General. In the preceding paragraphs, on methods of preventing waste, the most important items of a general nature were discussed. There are still other items of extreme importance about which no general statements as to application or consumption can be made, but each has its own peculiar characteristics and features which must be studied separately for each case. To discuss these in detail is beyond the scope of this article. Among such items of importance are the explosives. The amount and quality of explosive to be used to ob- tain the most economic results varies with each instance. There is a best amount and a best quality for each case, but that can be determined only by actual tests. No specific rules will hold for all cases. Where no tests are 94 THE EFFICIENT PURCHASE AND made, high-grade explosives may be in use where a lower grade would do just as well; also, a large quantity may be used where a small quantity might render good results. This, without a doubt, is an important sub- ject, and the time consumed to make specific tests would be time well spent. Another item which will bear investigation is that of illumination. At stations and main haulage ways, this problem has been satisfactorily solved by the use of electric lights. However, in stopes and other workings, where the miner carries his own light, one is confronted with the economic consumption of candles or carbide. Where the issuance of candles is not strictly regulated, there may be considerable waste because of the following: 1. Too many candles burned at once. 2. Unburned, or only -partly burned, candles allowed to become covered with debris and thus become lost. 3. The hiding of candles for future use, which, how- ever, may be forgotten and thus lost. 4. Actual theft of candles. These leaks can be avoided by a study of the require- ments for each case, and the issuance regulated accordingly. Carbide lights are coming more and more into use, particularly since these lamps 'are now made with a hafted holder, which resembles that of the candlestick. Better light is given, and the light is thrown where it is wanted. Some companies, which have made tests and where the use of carbide lights has been made compul- sory, claim that in the long run carbide is more eco- nomical than candles. UTILIZATION OF MINE SUPPLIES 95 Still another economic consideration is the re-use of old materials, and the sale of unusable materials, either new or old. As examples which we have observed, we may cite the use of old rails for ties or reinforcements; the cleaning of soiled cotton waste and its re-use for purposes where an absolutely clean waste is not essential. Every mine has its quota of discarded material which might be put to some use or sold to an advantage. Training and Loyalty of Workmen. Where no records of material consumption are kept, the management can- not determine whether or not a workman is an econom- ical and efficient user of tools and materials. When the workman discovers that no records are kept by the man- agement, he will become careless in the use of materials, since he knows that he can obtain additional amounts without trouble or quizzing. He will know that he will not be rewarded if he takes especial care to prevent waste of material, for the management will not know that he is endeavoring to economize. The president, board of directors, and the manager are the brains of the industry. If they fulfill their proper functions, they will directly control the policies of the company in every important factor of its activity. The personal ideas of these men permeate throughout the entire works. If the care and consumption of materials are allowed to drift along in a haphazard, and often dangerous, manner, this state of affairs is directly charge- able to the management. They alone are responsible for the operations of the concern and it is entirely within their control to alter these conditions. Where the highest official of the company considers the material 96 THE EFFICIENT PURCHASE AND factor an unimportant one, it will likewise be so con- sidered by the manager, superintendent, foremen, shift- bosses, and workmen. This atmosphere of careless- ness, often unconsciously created, will invariably lead to a condition of wastefulness and inefficiency through- out all the operations. Operation deals entirely with the human element. The degree of efficiency betterment will depend almost entirely upon the training, intelligence, and loyalty of the workers. This point is being more and more con- sidered every day. Where we have a group of loyal, first-class men, the material expense will be much lower than where we have a group of untrained, dissatisfied workers. A high state of efficiency will cause an eco- nomic use of materials. There is less waste where the work is carefully planned out in advance by men who are especially trained to handle the function of planning. The materials and tools must be in the standard condition as prescribed by this planning, when they are delivered to the workers of the operating department. The method of applying the material and using the tools should be carefully specified, and, whenever possible, these instructions given in writing. The bosses should be relieved of many of their functions, and their main function should be that of teacher and helper to the workmen. A man cannot efficiently utilize materials unless he is trained in the best methods. The best methods should be determined by the management and these taught to the workers by the bosses. Unless the relationship between bosses and workers is changed to one of teacher and pupil, we UTILIZATION OF MINE SUPPirfcS\ : ' 97 cannot reach the highest state of efficiency. We can- not obtain this relationship, nor can we get a worker to follow carefully a specified set of instructions, unless both he and the bosses in actual charge of the men are paid extra for the special effort. Men who continu- ally work in a haphazard and careless manner soon become fixed with this habit, and unless some special inducements are offered to comply with a new method, they will not break themselves of the habit. Even where the " drive method " is used, the worker will only conform to the new instructions as long as he is under personal supervision and as soon as this is with- drawn, he will lapse into his old habits. In order to fix the habit of using less wasteful methods, and to obtain co-operation, we must give the worker an extra induce- ment. To summarize: In order to reduce wastes of material due to the human factor, we must have: 1. All work carefully planned out in advance. 2. Specifications as to the best materials and tools to be used. 3. Carefully drawn instructions of how to use and apply the tools and materials. 4. Materials and tools must be delivered to the worker in the standard condition specified. 5. Competent instructors to teach and aid the worker to follow these instructions. 6. Individual records of each worker as to results. 7. Extra pay when work is carried out as per instruc- tions. 359.1 SJL UNIVERSITY dF CALIFORNIA LIBRARY