Show y yI i I American Industry on More Efficient Paths I INDUSTRY Y NOW RATES CONSUMPTION CON CON- FIRST AND THEN BASES OPERATIONS ACCORD ACCORD- The past several years in many ways have been momentous in this country's economic history For we have made a number ot of economic discoveries which have added Immeasurably immeasurably im- im measurably to our proficiency an and 1 prosperity as a nation We Ve began to make these discoveries eries back In 1921 1021 followIng that disastrous postwar debacle which for a time played havoc with trade and industry It If an individual has real strength ot of character he will wUl profit from disaster It has been thus with us as a people we have profited from the things learned during the depression of several years since CART BEFORE THE HORSE One ot of the fIrst things which we learned was that the the busIness world had been putting the cart Defore De- De fore the horse Our genius for pro pro- a genius never equaled by any nation had bee given such free reign during and Imm after the war war that business men came ver very near to forgetting that such a creature as the consumer existed The main problem was to produce s gooi-s goos and then more goods with little thought as to how these goods were to be disposed of When the economic crash came In 1921 business men suddenly began began be- be gan to realize that the buying public pub pub- lie lic would not continue to buy generously generously gen gen- for an indefinite period In Inthe inthe the face ot of skyrocketing prIces And then they realized that they had been blen basIng their operations upon faulty premises The sole end of aU all production is consumption as a noted economist econom- econom Dut Jut it many years ears ago Con Con- is paramount in the economic eco ceo scheme of things For unless goods are aie needed and desired unless un- un less people can purchase these goods gools production is a mere waste ot of time Of course we are told that over a long period of time there Is no such things as overproduction Excessive production is however possible temporarily and can for the time being much economic eco ceo damage A BETTER RELATIONSHIP A big lesson this country has hap learned during the past few years then Is that consUmption of prime importance and that pro pro- should be geared to con con- not consumption to pro pro- This lesson has caused our business leaders to keep production in better relationship than formerly former former- ly with consumption As a consequence there has been no piling up of surplus stock ot of late Business has kept its inventories inventories tories down One factor which has aided this program has been the development ot of called so-called hand mouth to all along the line Une Retailers Retailers Re- Re and wholesalers have been replenishing their stocks oftener and in smaller quantities Manufacturers Manu Manu- have been buying raw materials In the same way This development has been largely made possible by a wonderful improvement improvement improve improve- ment in transportation facilities mouth Hand buying has also done much to alleviate seasonal problems In manufacturing industries industries indus indus- tries by develing out production peaks and valleys STIMULATING CONSUMPTION It must not be supposed however however how how- ever that because producers have kept their operating schedules In iii I closer alignment with consumption I of goods that they have been content content con con- tent to let consumption run its OWn OWr I course More than ever before have efforts been made to stimulate the i purchase of through goods adver adver- instalment plans more direct di di- approach to the consumer I by many other methods Indeed Industry industry In- In could not with its tremendous dous capacity let consumption run run I its own course For unless the industry in in- of this country can keep its it 3 wheels revolving at a rapid pace I it t cannot make a fair profit on th the i money invested in its tremendous 3 capacities for producing Thus we Wi I have learned new methods of men mer- C S It is in the productive end of b business however that the most s startling changes ot of recent years h have ave come about I INCREASED PRODUCTION And most striking perhaps of all t these hese industrial changes has been t the he remarkable improvement in the p productive efficiency of labor S Studies conducted during the past y year ear by the United States department department depart depart- ment ot of labor show this improvement improve improve- m ment ent as It occurred in a number of l leading industries Percentage increases in- in c creases in productivity over 1914 w were ere as follows in 1925 Automotive Automo- Automo t tive ive industry per cent cement manufacturing per cent Iron a and nd steel production 49 3 per cent f lour flour milling 39 per cent leather p production per cent sugar refining reining re- re f fining ining per cent paper and p pulp manufacturing per cen cent t. t b boot oot and shoe manufacturing per p er cent A goodly measure of this i improvement has come within the p past ast three or four years rears O OUTPUT PER WAGE DOLLAR Right along this same line has b been een the tremendous increase In manufacturing per wage dollar According to an index constructed construct construct- e ed d by Bigelow Kent Willard Co ot of Boston the ratio ot of increase i in n production to increase in manufacturing manu manu- f payrolls since 1919 amounted to well over per cent i In n This indicates that while high wages have been maintained production has been pushed to an even higher level or that although L wages are at their highest poInt more production per wage dollar than ever before is being obtained Then there has been the efficiency of Industrial management manage manage- ment in eliminating waste in materials mate mate- rials nials in the ot of products products prod prod- and in En standardization STANDARDIZATION In connection with this process I ot of standardization and tion no better statement of what ii it i Is s intended and desired to accomplish PUsh can be m made de than that ot 01 Secretary of Commerce Hoover the chief opponent of waste in in in- industry Says Says- Secretary Hoover One of the major attacks upon I Industrial IndustrIal i and waste t lies ies in standardization and simpli- simpli By standardization w we i secure a positive approach through the establishment t ot of defInite notation nota nota- tion in dimensions quality and performance performance per per- ot of materials and machInes which must be accompanied by the development ot of tests to be applied in the determination of the fulfillment fulfill fulfill- fulfillment ment of these standards By simplification simplification sim- sim we secure a negative approach tip tip- through elimination of tie fhe least necessary varieties dimensions dimen- dimen or grades of materials and products The usefulness of standardization and simplifIcation is not limited in the application to materials and machines but is applicable applicable ap- ap to business practice such as specifications and warehousing financial shipping t and other docu docu- ments And uniformity in SUCh specifications reinforces the demand demand de- de mand for tor ston standardized and simpli tied products THE SAVINGS EFFECTED The economic savings by the adoption ot of standards and simpli are enormous The ef- ef are a To facilitate repetitive manufacture giving mass production production tion through concentration on fewer few few- er en varieties thus d decreasing the cost Of manufacture b To focus demand on specific varieties and enable manufacturers ers s to produce for stock in otherwise other other- wise dull seasons and thus reduce intermittency y in both labor and equipment c By- By such general action the smaller businesses are given the opportunities of repetitive manufacture manu manu- facture and thus enabled to hola their own in competition agaInst large production units d Greatly reduce volume or Inventories required in the tho distribution distribution dis- dis trades Ce c More positive competition Cf f More reliable standards as I to quality and service The following table shows results result attained since the development ot 01 commerce in 1921 established a cooperative co- co opera operative ve O aid id in n br nging about the simplification of tion The table shows simplified simplified- practice recommendations accepted by the producers concerned and are oni a few rew of many other instances which could be cited practIce Simplified recommendations accepted Reduction In Per varieties Cent Items From To tien Vitrified paving brick revision con 66 65 4 94 Beds spring and mattresses mat mat- tresses se 79 4 95 Mf Metal seath lath ath 1 24 51 Asphalt penetrations 58 18 9 87 57 lintel chinaware 77 Flies Files and rasps 1351 Oil U 65 Rough emil and smooth smooth- face ue brick b 75 2 97 Common brick U 44 1 98 95 Range boilers ise 13 90 i Woven wire Ire fencing liS 69 60 87 57 Woven n wire fence packages packages pack pack- ages 2072 07 93 Milk lIIk bottles and caps 78 75 10 87 07 Red blankets sIZes IS 78 1 12 85 8 Hollow building tile 36 19 8 45 Structural slates for tor plumbing and sanitary purpose 84 54 Roofing slates time terms 93 55 45 51 Blackboard slate slab heights and sizes 25 90 first revision I 1 tools n 47 Asbestos paper sizes width weights of rolls 14 11 5 U 45 Asbestos sIzes UlI messes 10 5 50 Steel barrels and drums 66 24 4 64 Brass Bruss lavatory and sink traps trap 1114 72 94 Plow bolts isso 1500 sis H 41 beds beds- Length ss 13 i 1 97 57 wIdth 34 91 SleIght Height 44 4 1 97 Scot Hot water storage tanks 10 14 53 Steel reinforcing bars cross sectional area 40 0 11 73 Cotton Cotlon duck widths and weights 60 94 34 80 50 Steel sheet redon re- re don isis 1819 85 15 En naves ves trough troug-h and conductor conductor con con- ductor pipe Ii 1 IS 1 24 weight 9 7 22 2 Loaded shells first revision usa 1755 57 Concrete building units unite length width and height of blocks tile brick 24 80 50 Cafeteria and lunch lunchroom lunchroom room chInaware 73 This article has merely pointed out in sketchy fashion a few tew of the numerous high lights or of Industrial industrial Indus Indus- I trial progress during during- the past few years These high lights however serve well to show the newer more efficient paths in which Industry Is' Is treading |