NEW NEEDS IN INDUSTRY

Press, Volume LXXI, Issue 21404, 21 February 1935, Page 9

NEW NEEDS IN INDUSTRY

♦ SCIENTIFIC CONTROL OF | PRODUCTION CO-OPERATION IN THE FACTORY [THE PRESS Special Service.] AUCKLAND, February 20. The need for the closest co-operation between all the different departments in a factory to secure the most efficient output was mentioned by Dr. E. Marsden to-day in an address to the conference of the New Zealand Society of Accountants on New Zealand manufacturing industries. Dr. Marsden also mentioned that the quality of New Zealand manufactures had risen markedly in recent years. "The quality of New Zealand manufactured goods has, during the last 10 years, improved to a very remarkable extent, but the same is true of manufactured goods in all countries," said D.. Marsden. "Some . industries in New Zealand have made, with great difficulty, huge improvements for a largely unappreciative public, while in others, a sluggish industry has failed to respond to repeated prods from dissatisfied customers. It is difficult to generalise; the extent of competition and the absence or presence of protection have been the main factors. The advantage of New Zealand manufacturers in being close to the market with superior knowledge of its requirements has been largely nullified by a too-widespread cynical prejudice against certain local manufactures and the lack of an encouraging spirit of pride in the products jf our own country, while methods of selling often act to the detriment of the local products. In the attainment of cheap quality goods, we are on the whole apt to be old-fashioned with too much faith in the so-called practical, rather than in the newer technique of process control in manufacture. We cling to the old British idea that discipline and practical experience are better than technique. Quality and uniformity depend much more nowadays on exact specification of raw materials and technical control to standards at all stages of manufacture. In most other successful manufacturing countries, the workmen and foremen and management have received education and training and incentive to this end, with some emphasis on Lord Raglan's definition as 'Capacity for absorbing new ideas.'

Brain and Ability "In industry, as in war or economic rivalry of every kind, it is no longer possible to succeed by relying on tradition alone. What is needed is brain and ability—both in touch with the last word in progress. If examples are wanted to prove this—look around. Managers and foremen are chosen too often on their subservience to details laid down by a lay board of directors instead of being chosen to take a constructive part in the whole operation and policy. In the circumstances, the company gets what it pays for. I remember a case, a few years ago, of a secretary-manager who had, owing to complaints of quality brought in by a salesman, arranged for an experimental trial under certain empirically altered conditions. I was called in to endeavour to interpret the results. No record of these altered conditions had been made, temperatures, acid values, etc. I pointed this out to the manager and suggested that the obtaining of the details in the next trial be left to the particular foreman-engineer, whose business it was to know more about such detailed measurements than the secretary-manager in the office. The reply I received was: 'lf we had a foreman who about certain details of manufacture than I do, I would fire him.' I merely quote the example to illustrate the desirability of trained personnel who can work and deduce from facts rather than trial and error and also the absolute necessity of integrating all the brains in a factory with full co-operation to a common end of production manager, cost accountant, and salesman. "Let me illustrate another point I desire to bring out by a further story. I visited a woollen mill and entered into conversation with the secretarymanager. He expressed the opinion in all seriousness that as chemicals only entered into the cost of manufacture to an extent of 1 per cent, any scientific advice could only reduce that 1 per cent, perhaps to $ per cent, and therefore could not be worth the cost. In the same mill the chemicals in bleaching, carbonising, dyeing, etc., were being used in uncontrolled amounts, with a loss in value to the goods very many times their cost, and, not long after, we had a complaint with regard to deterioration of the wool in one of the lines manufactured. The more that science and machinery enter into production the more do manufacture and agriculture need workmen, foremen, and employers who know enough of the fundamentals of science to turn it to good account.

Praise for Research "This example is not an isolated case. I could give many in other industries. How slowly are we learning the principles of process control. Compare the action of several enterprising tanners. They co-operated to form a research association to advise

on technical questions of their industry. After two years, they went on record as follows: " 'That this meeting desires to place on record the valuable assistance given by the research association In, (1> raising the standard of leather produced; (2) raising the efficiency of production; (3) improving the co-op-eration between the tanners and the different branches of the leather consumers. That this resolution be published as an indication to other industries of the benefits to be obtained from the application of research." "The tanners concerned are now employing more than 25 per cent, more men than in pre-slump time and - the quality of their output compares more than favourably with imports. "I presume any of your accountants can go into a business •and assess its profit and loss and the subdivision of its costs. I submit that there is a complementary estimate of the long range prospects of an undertaking and another item in the balance-sheet, namely, the integrated capital value of the experience, knowledge, and progressive team work of the whole of the staff. A good chemical engineer can go into the same industrial concern and from the degree of technical control, the,value of the assets in the brains and initiative of employees and the general progressive attitude, can forecast with almost equal certainty the probable profits five years hence, provided, of course, that the sales force is efficient. "Many industries in New Zealand are awaking to these questions as they have similarly awakened to them in Australia. When this spirit is more generally accepted, then New Zealand industries will compete even more successfully than at present. If we desire to improve industry in New Zealand, we should first give every encouragement in these directions."