Plate XXXVIII.THE LAUNCH OF H.M.S. "ARGYLL."(See page 101.)Larger image
Plate XXXVIII.
THE LAUNCH OF H.M.S. "ARGYLL."
(See page 101.)
Larger image
Long experience has enabled the firm to set equitable standard times for many operations, and there was from the beginning the guarantee that this standard would notbe altered unless entirely new machines were introduced to greatly influence the rate of production. Now if a workman requires the full time, or more than the time set as a standard for a job, he is still paid his full-time wage as under the old conditions: but should he complete the work in less than the standard time, his rate of wage per hour is increased in direct proportion to the saving in time; the shorter the time taken, the greater the rate of bonus. The bonuses earned range as a rule from 20 to 30 per cent. over the time-rate wage. To quote actual cases, a workman who saves 26 hours on a job for which the standard time is 134 hours, increases his wage for the fortnight by 14s., while the money saved to the employer is only 2s. 9d. He who saves 30 per cent. on the time adds 21s. to his fortnight's wage.
Such reduction in the time taken is not attained at the expense of efficiency; the premium job is carefully inspected, and unless it is of the highest standard the bonus is forfeited; so that the workman is continuously careful to avoid any risk which will result in the loss of the reward for his extra work. The reduction in time taken is, in a large measure, due to the exercise of foresight and ingenuity on the part of the workman. He is ever on the alert to ensure that he will not be kept waiting for material to enable work to progress. The machine-man makes certain that before one unit is out of his machine the casting, forging, or bar for the next is alongside. This is further facilitated by a man in each shop whose only duty is to see that there is a supply of work for every tool. Encouragement is always accorded to those who suggest modifications to increase the output from any machine. Again, in the erecting of engines, considerable economy has been attained, owing to similar foresight being exercised to ensure that each unit is machined before it is wanted by the erector.
To the employer also there is gain in the increased production, from a given number of machines and men, for a constant establishment expenditure—rent, rates, taxes, etc. While the wage paid to the men is increased, there is a reduction in the cost of production, which of itself encourages capital expenditure on improved methods and appliances. Concurrently with the adoption of the bonus system there has been a great increase in the cutting speed of tools, which has also augmented the rate of production. This "speeding-up" is partly due to the fitting of new machines, to the substitution of forged steel machine-cut gear for cast spur-wheels, to the strengthening of lathe headstocks, to wider belts, to the application of reversible motors to some machines, and to quicker return speeds.
Some indication may be given of the increased economy resulting from the bonus system and from the "speeding-up" of tools, as compared with the former system, with slower speeds and piece-work rates. A typical job, which had formerly occupied eighty hours, was, after experience, given a standard time of sixty hours. When first carried out under the bonus system the time actually taken was forty-five hours, the labour cost being reduced from £2 13s. 4d. at piece-work rate to £1 17s. 6d. under the bonus system, while the wage of the worker was increased by 2d. per hour. Subsequently, a repeat of this job was machined by the same man, who, having confidence that the time allowed would not be reduced, finished the work in thirty-nine hours, saving twenty-one hours on the standard time, reducing the cost to £1 15s. 0d., and increasing his rate of pay by 2.8d. per hour. Other comparisons might be given to show the advantage over the piece-work. In successive fortnights after the introduction of the system, the percentage of time saved on the time taken on piece-work in one department steadily advanced from16 per cent. to 47 per cent., and ultimately the pay of the men per hour was increased 75 per cent., while the saving to the employer was 50 per cent.