From the Rolls-Royce experimental archive: a quarter of a million communications from Rolls-Royce, 1906 to 1960's. Documents from the Sir Henry Royce Memorial Foundation (SHRMF).
Analyzing cost savings on body production, focusing on the economics of using tools.
| Identifier | ExFiles\Box 144\4\ scan0015 | |
| Date | 12th February 1940 | |
| - 2 - In each case the figure represents a body produced with our existing quality of head cloth, leather, etc., etc., and painted and trimmed in any colour to suit the customer's requirements. It will at once be observed that the very appreciable reduction of £155 has been brought about on the B.V. body. That we may proceed logically with further economies, it is necessary to know how this saving has been effected. 2. ECONOMIES EFFECTED DUE TO THE USE OF TOOLS. As we have previously pointed out, the tools only apply to the wings and shell, and the cost of these items in any case represents something less than 25% of the total cost of the body. The actual parts affected by the Motor Panel's tools when made by hand cost £72. 2. 6d. and when made with tools cost £67. 17. 8d., the tool cost being absorbed in 500 bodies. Therefore, the actual saving due to the tools on the first 500 bodies amounts to £4. 14. 10d. and for all subsequent bodies, (the whole of the tool cost having been absorbed on the first 500) amounts to £20. 10. 6d. However, on the first 500 bodies, which are the ones we are talking about, only £4. 14. 10d. of the total reduction of £155 is due to the Motor Panel's tools. On certain items, now that Ward has got Motor Panel's costs, he is prepared to demonstrate that he could have made the tools himself and produced the parts for a lower figure than by using the Motor Panels organisation. This is a very interesting point. These figures have demonstrated that part tooling to the extent of £7,000 in quantities below 500 is barely worth while. In quantities of 1,000 however, it produces a reduction in cost of somewhere about 27% on the parts which the tools affect or 5% on the total body cost. | ||