. American engineer and railroad journal . rial10 per cent, less engines will be turned out. There will, ofcourse, be no opportunity to reduce the general expenses, andas a matter of fact more foremen will be required to teach thenew men. The account will therefore stand: Materials $172, Ten per cent, less wages paid to direct labor. 44, expenses 90, Total $307, An apparent saving of 4, Total $312, But if we consider output, another story is told: Output 450 engines, costing each—■ For materials $ For direct labor For general expenses 201.
. American engineer and railroad journal . rial10 per cent, less engines will be turned out. There will, ofcourse, be no opportunity to reduce the general expenses, andas a matter of fact more foremen will be required to teach thenew men. The account will therefore stand: Materials $172, Ten per cent, less wages paid to direct labor. 44, expenses 90, Total $307, An apparent saving of 4, Total $312, But if we consider output, another story is told: Output 450 engines, costing each—■ For materials $ For direct labor For general expenses Total $ Put the two results side by side: Per Cent Cost Before Wages Were Reduced. $ Per Cent, ofDirect Cost After Wages Were Reduced, $ Per Cent ofDirect Both the employer and employes are losers. If, on the other hand, the matter of materials is first con-sidered, it will be found that by following such methods asdescribed in the preceding section of this article it will be. 100 FIG. 33. ATTACHMENT ON SHEAR FOR CUTTING BRAKESHOE KEYS TO SHAPE. Decembee, 1906. AMERICAN ENGINEER AND RAILROAD JOURNAL. 465 possible to make a very considerable saving in this item, andas the amount is so much greater than that paid for directlabor a small percentage would be equal to quite a large per-centage of the direct labor charge. Within certain limits the greater proportion of the generalexpense will remain about the same regardless of the output,and it is therefore, of course, advisable to increase the out-put to a maximum, making the charges against each enginedue to this item a minimum. By improving the efficiency ofthe tools and machinery the output can readily be increasedwithout increasing the expense as indicated by the resultsaccomplished at Topeka. Assuming that the workman willco-operate to cut out unnecessary losses and wastes, if he isgiven an incentive, that the amount of increase of his paydepends upon his individual
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