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Santa Fé railway yards, Los Angeles.

is 10 per cent., while at 67 per cent. 000 in these premiums on their labor. efficiency the bonus stops. Foremen are Has it paid to expend this large paid a bonus on the basis of the average amount in this unusual way? Yes, it has efficiency of their men, and superintend paid and it has paid well. For not only ents are similarly rewarded on the basis have there been no strikes on the Santa of the foremen's efficiency.

Fé since its introduction and strikes The results of this bonus plan were at cost money—but the net cost of locomoonce seen in the increased interest of the tive repairs for a year has been reduced men and the greater amount of work from five and one-half millions to four they turned out. Last year the Santa Fé and one-half. In a period of three years, employees received the sum of $1,250,- during which from $200,000 to over a



Time required: five minutes per car for two men.



million was paid out in bonuses, the rooms all along the line, and there is a entire system made net savings of over model hospital system to care for them $5,000,000, or nearly $2,000,000 a year. when they are ill or injured. On retire

Under the old method one man at ment at the age of sixty-five pensions of $3.50 a day finished one pair of tank $20 to $75 a month are granted them, wheels on the machine lathe a day. according to their former wage and Under the new method one man handles length of service.

length of service. Altogether the men two pairs of tank wheels and a pair of of the Santa Fé feel they are having a trailers in a day.

fair deal, and they are satisfied with their Besides increased pay the men treatment. A strike on that system is provided with reading and recreation now considered impossible.






When on March 20, 1905, efficiency day of the year. Some of the companies work was begun in the matter of loco- are willing that the plan should be tried, motive repairs an enumeration was made but others demur, sticking to old methof all locomotives and the sum of their ods, though they are only staving off detentions in the Topeka shop, a total of the inevitable. 1,735 days for fifty-six locomotives. A On a lesser scale than that of the year later, by applying rigid rules of Santa Fé, efficiency work has been tried efficiency the sum of detentions had sunk on the Southern and Union Pacific, and to 254 days and a larger number of loco- has shown excellent results. It will not motives had been repaired.

be long before all the lines of the great In some instances greater economies Harriman system will introduce these were effected than were

inethods, but the objecattempted. When Mr.

tions of wise old master Kendrick called Mr.

mechanics will first have Emerson's attention to

to be overcome. the high average of loco

Under its progressive motive repair cost it was

president, Mr. L. F. seen that in 1904-5 it

Lowe, the Delaware and amounted to $4,165 for

Hudson system has made each engine. Mr. Kend

marked improvements by rick wanted the cost re

the introduction of effiduced to $3,165 for each

ciency methods. The engine. Mr. Emerson

Erie system, which had cut it down to $3,037.

been much run down, The miles run between

has also tried the plan, locomotive failures on a

particularly in the matter difficult division was in

of coal consumption. On creased from 4,377 in

à certain watched loco1902 to 20,000 in 1909.

motive it was found posIn the matter of car

sible to cut down the repairs the introduction

fuel bill over sixty per of efficiency principles

cent. An effort is being has worked wonders of

made to standardize this economy. Simpler proc

performance, and though esses for doing things

it may not be successful have been devised. For THE FATHER OF EFFICIENCY IN

a big saving is bound to example, the oiling of



Frederick W. Taylor. trucks has been simpli

The advanced mechanfied by the use of a com

ical practices of the pressed air machine. By the old hand Union Pacific have resulted in considermethod it took a man an hour to oil the able savings, and so have those of the trucks of a car; now it takes two men Northern Pacific, the New York Cenonly five minutes.

tral, the New York, New Haven and Such men as Louis D. Brandeis, H. L. Hartford and the Boston and Maine. Gantt, and Charles B. Going, who have But Mr. Brandeis, the most enthusiastic closely observed the methods pursued by of all the disciples of Taylor, the "Father Mr. Emerson in his efficiency work on of Efficiency,” will never rest content the Santa Fé, are enthusiastic in its until he has induced all the railroads of praise. It was the study of this work the country to try the improved meththat led Mr. Brandeis to make the offer ods. Brandeis is not doing this so much to the railroads that were threatening for the railroads as he is for the people, rate advances that he would save them for whom he has made many a good a million a day and charge nothing for fight. He believes with H. L. Gantt the service. Mr. Brandeis' intention was that with increased freight rates come to employ Mr. Emerson as the head of increased prices, that with increased a general school of efficiency that would prices come higher cost of living; with save the roads the sum mentioned every higher cost of living comes a demand for empty bobbin from the shuttle and put in a new one and how he tied the knot. This study resulted in fixing as a standard task the number of picks a loom should throw, eliminating all unnecessary delays. A substantial bonus was offered for the accomplishment of this number on each loom. This stimulated individual activity. Those weavers who could not make a good showing were taught by the best operators, and in a short time there was an average increase of output from the looms of eighty per cent! The average wages were increased forty per cent., while the actual wage cost for each piece of cloth produced was only sixty per cent. of the former wage cost.


In a pillow case factory where Gantt introduced his methods of efficiency and his bonus plan, similar results were obtained and, better still, it was found that in twenty-eight cases of goods furnished before efficiency work was begun the average number of imperfections to each case was 4712. In eleven cases after the efficiency work was started the average number of imperfections found in each case was less than one! This great improvement was made in a few weeks after Gantt went into the factory.

Like results were obtained by this master of efficiency in a packing-box

factory, in a bleachery and in other inSECURED EFFICIENCY IN A HOSTILE SHOP.

dustrial plants. Harrington Emerson, whose ability was promptly Going back to Taylor and his steel recognized by President Ripley of the

work, let me quote a few paragraphs from a report of Assistant Superintend,

ent R. J. Snyder of the Bethlehem Steel higher wages and with higher wages Company: comes higher cost of production, involv- “One of the best results has been the ing another increase of prices, and the moral effect upon the men. They have cycle thus repeats itself.

had it placed in their power to earn a This same Gantt, whose economic very substantial increase in wages by a philosophy I have boiled down into the corresponding increase in their producforegoing language, is in himself a walk- tion capacity, and this has given them ing cyclopedia of efficiency methods. the feeling that the company is quite Not long ago he was engaged by the willing to reward the increased effort. president of a cotton mill company to They display a willingness to work right solve the problem of making its labor up to their capacity, with the knowledge more efficient. He put in trained ob- that they are not given impossibilities to servers with stop watches to stand by perform. the most skillful weavers and study all "The percentage of errors in matheir motions in detail, a practice recom- chinery has been very materially reduced, mended by Taylor. The observer learned which is unquestionably due to the fact just how the skilled weaver started and that in order to earn his bonus a man stopped his loom, how he removed the must utilize his brains and faculties to


Santa Fé.




my brick

the fullest extent. He has thus no time scientific efficiency has demonstrated for dreaming, which was no doubt, the many things. For instance, it has been cause of many errors.

found that in one kind of labor in order "Breakdowns are less frequent. The to be most efficient a man must have men work up to their capacity and now 27 units of rest for every 100 that he obtain from the machines the product works. I tell my men when there is they are capable of turning out."

nothing for them to do, to sit down and In the matter of yard labor Mr. Tay- rest. It has been found that the most lor saved the Bethlehem Company fifty efficient load for a shovel is 2172 pounds, per cent. of the cost of the removal of and that in carrying weights, 92 pounds material and made many other savings. is the proper amount. This was the Frank B. Gilbreth

weight which I set is now considered one

for brick carriers to of New York's fore

handle and had most efficiency

"packets" designed to perts. He takes con

carry this weight. tracts for the con

“In wall work I use struction of bridges

what I call non-stoopand other structures

ing scaffolds for the and produces marvel

bricklayers. I find that ous results from his

a man will do better methods of labor

and quicker work management, based

where he is not comon what he calls his

pelled to stoop over to "motion studies,"

lay brick. Also I have made in his own

brick "packet" actual experience in

placed in a handy various trades he has

position by a cheap learned and also from

man, so that the accurate observations

bricklayer need waste of the work of others.

no time. I have taught Mr. Gilbreth uses

men how to pick up stereoscopic views of

brick and mortar with various operations

both hands at the showing the men how

same time instead of A MAN WH0 Does Not BELIEVE IN WASTING the work should be

using one at a time done. Beside these he L. F. Lowe, President of the Delaware and as most of them for

Hudson Railway. has books of details

merly did. for them to study.

“The care of the "On one occasion,” he says, “I had health of men has been one of my to drive a lot of piles in quicksand. I studies. I don't believe in the old drivwanted to get the work done as rapidly ing and sweating system. I believe in as possible. I raised the pay of all the the new non-perspiring way, advocated men 25 cents a day, from $1.75 to $2, by Taylor, of whom I am a close disciple. with the understanding that in return The drive or military system is going they were to do the work in the manner out. Instead of that we are introducing I described to them. Then I employed the more humane, the more practical and a boy at $11 a week to stand on the bank the more economical method of rewardwith a stop watch and a pencil to keep ing a man for good work and not making a record of the work done by each gang. a shirking, cringing time-server of him. Where the work had previously required Yes, men must be well-fed and well4.28 minutes for each trip of the bucket rested. I find it cheaper to feed them out of the hole, after I had standardized free rather than to let them eat at boardthe method in this manner, it required ing-houses." only 2.21 minutes, or a reduction of Mr. Gilbreth stimulates the ambition almost one-half.

of his men in various ways. Once he “The study which has been given to had a lot of Swedes, Russians, Irish and



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