Cyclopedia of Commerce, Accountancy, Business Administration, v. 02 (of 10)

by American School of Correspondence

In a plant manufacturing small machines or a kind of product which is shipped in small quantities, it is obvious that the Shipping Room must be convenient to the point from which these goods are to be taken by railroad cars, by boat, or by teams. If most of the shipping is of large machines or articles which must be handled by cranes, the railroad tracks will be run into the erecting building, and the machines loaded there, in order to avoid the expense of extra handling and moving them. This is the arrangement shown in Fig. 1. In this case the shipping room may be in the Administration Building, so as to be convenient to the other office departments. In some kinds of business it is convenient to have the shipping room and general storeroom near each other, as there is considerable business done in each that is quite closely related to the other.

The Iron and Brass Foundry is usually located at some distance from the manufacturing buildings, in order that the latter may be as free as possible from the annoyance of smoke and dust. It is connected with the other departments by the system of shop and yard tracks, and the railroad siding track passes through one end of the building as a matter of convenience in shipping castings. There is also a branch track running along the side of the foundry building for the purpose of delivering coke, coal, moulding sand, pig iron, scrap iron, and other foundry materials.

It should be noted that the buildings shown in the plan are located in a compact mass, with considerably less than the usual yard room. In this instance, however, the plan was so drafted to economize space on the drawing. It is the law in some European countries that not over 50 per cent of the area of a manufacturing site shall be covered by roofs. Such a law would be of much value in this country, to prevent the crowding of buildings to such an extent as to be unhealthful to employees.

While factory buildings are frequently erected of from three to to six floors, the modern tendency is to reduce the number of floors in all shops and manufacturing buildings; and in the case of machine shops, a large majority of them are built of only one floor. Some, however, have wide galleries at the side, by which considerable second-floor space is added; while the central portion remains open to the roof, and supplies ample space for the accommodation of the overhead traveling crane, as well as the necessary added height needed for erecting large machinery.

Foundries are necessarily built of a single floor, although there are several in different parts of the country where moulding rooms are located as high as the third floor. This latter arrangement is usually made for brass moulding, rather than for iron moulding.

Organization of a Manufacturing Plant. Having the design of the plant, and assuming that the required buildings have been erected in accordance with this plan, the next step will be to organize the management both in a general way and also as relates to the various departments usually necessary to inaugurate the business of manufacturing.

As the scope of this treatise covers only the shop and its management, we need not take up the commercial organization of the company by which it is capitalized and maintained. We shall therefore consider the General Manager as the head of the organization, and proceed to examine the methods usually adopted for the division of authority and responsibilities from him to the actual workmen at the bench, at the machines, and on the floors.

The chart shown in Fig. 2 illustrates the plan of the organization. Nearly all minor officials and office employees, such as bookkeepers, clerks, stenographers, etc., are omitted from this chart, to avoid confusion and to simplify the understanding of the organization plan and its numerous details.

The General Manager has a personal Assistant, and, for his commercial affairs, the service of a commercial Accountant and a Cashier. Other office employees are similar in number, duties, and responsibilities to those in the usual commercial office.

By referring to the chart, it will be seen that the organization is divided into two distinctly different parts. First, that of production or manufacturing proper; and second, that of selling or marketing the output produced.