Industrial Digest and Commodities & Finance Volume 1, PT. 2 (Paperback)

This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1922 edition. Excerpt: ... and the most accurate method of predetermining labor costs is by the use of time-study data. The use of time-study data in estimating involves going into a great many details of the prospective job which in ordinary estimating are covered by blanket charges. The blanket method of charging is a hit-and-miss method, sometimes resulting in too high a price and just as frequently in too low a price. It has been found by actual experience that the use of detailed time-study data is more than justified in this period of close competition. As an illustration of the method, the time required for punching tee and angle bars can be reduced to a few simple elements which are added together to determine the total time required for punching the number of pieces required. This total time multiplied by the number of workmen required gives the total labor hours for the operation. The average hourly wage rate paid is used in computing the labor cost. Since the actual wage rates do not vary much from the average, this method proves satisfactory. If the prospective order is landed, the shop is required to turn out the job within the time limits set. This is where the detailed time set forth in the estimate sheet proves valuable. A blanket figure means nothing to the shop unless it is broken down into a definite number of hours for each operation. Another very important use for the detailed estimates is the determination by the planning department of the approximate labor required to complete the job within the promised time. The number of men to keep on the payroll can be determined with more exactness than is otherwise possible. Applying Depreciation Rates A METHOD for determining the true status of assets and the proper application of depreciation rates...