. Factory and industrial management . consideration. In 1887 a profit-sharing system was devised to take the place ofthe contract method. This profit-sharing scheme was based on whatthe management considered a liberal piece-price for producing thefinished work ; this was an arbitrary assumption, based, of course, ona long series of records of the previous cost of the same or similarwares, and this piece-price so fixed on work delivered constituted thedepartments credit. Against this credit the labor cost, files, wasteand oil, and small tools and special tools maintenance were charged;if the ch
. Factory and industrial management . consideration. In 1887 a profit-sharing system was devised to take the place ofthe contract method. This profit-sharing scheme was based on whatthe management considered a liberal piece-price for producing thefinished work ; this was an arbitrary assumption, based, of course, ona long series of records of the previous cost of the same or similarwares, and this piece-price so fixed on work delivered constituted thedepartments credit. Against this credit the labor cost, files, wasteand oil, and small tools and special tools maintenance were charged;if the charges footing was less than the credit footing,—as it was, Ibelieve, in all cases,— the difference was credited to the department asprofit gained, and one-half was divided among all workers in that de-partment in a flat percentage on wages earned, the company takingthe other half. These contracts were made for from three to fiveyears without variation in piece-rates ; the foremen were paid at day- 4o8 SUCCESSFUL SHOP PIERCING THE KEY BOWS. rates from $4 to $6, and the workmen were paid sometimes day-ratesand sometimes piece rates. The highest gain was as much as thirtyper cent, of wages, which gave every man, foreman and workmanalike, a 15 per cent, addition to his wages at the end of a year. Incase of a foreman who had been a contractor and had made $3,000 ayear, and who was, under the profit-sharing system, rated at ^5 perday, or, say, $1,500 a year, the 15 per cent, gain would give him$1,725 for his years pay, instead of, say, $3,000, which he inighthave made under the contract system. Common hands, making, say$500, would have $75 added, making their total pay $575. Thefaults of this system are the long periods between divisions of gain,and the small incentive to close application on the part of the fore-men. It was abandoned as a general policy in 1893, although profit-sharing was continued in one case up to August, 1895. The method now in use for reducing
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Keywords: ., bookcentury1800, bookdecade1890, booksubj, booksubjectengineering
