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).
Economics of in-house development versus buying out parts, specifically concerning Armstrong Dampers.
| Identifier | ExFiles\Box 148\5\ scan0255 | |
| Date | 14th December 1937 | |
| Hs.{Lord Ernest Hives - Chair} from Rm.{William Robotham - Chief Engineer} 1260 Rm{William Robotham - Chief Engineer}14/R14.12.37. ARMSTRONG DAMPERS. With reference to HPS{Horace Percy Smith - Experimental Factory Mgr}3/VS.{J. Vickers}28.10.37., we attach two notes from Leslie relative to this subject. As he points out, if advantage were taken of the work which has been done, we might expect to pay for our development in 17 chassis, and, thereafter, save some thousands per year. Personally, we agreed to the development of the damper in this manner, because it seemed to be the only economical way of obtaining the required results. It seems to us that, until we can quote wages and material figures for engines, gearboxes, suspensions, etc. (i.e. parts we have got to make) that compare favourably with Rovers and S.S. Jaguars, it is difficult to justify dissipating our energies on parts if the right article can be obtained at a low cost from proprietary manu-facturers. We always have teething troubles with a new design, whether we or someone else make it. At present, however, it is fair to say that S.U. and Stromberg car-buretters, Marston radiators, Aerolite pistons, Borg & Beck clutches with Thermoid lining and Smith instruments are perfectly satisfactory articles. We admit the petrol pump is a black sheep, but the Autovac was wonderfully reliable. Briefly, everyone would like to make as much of the chassis as possible in the Works, but it is still more important to make a profit. Of the two prosperous firms we are envying at the moment, Jaguars buy out everything except the body, Rovers twice what we do. We, therefore, suggest that an overhead is fixed for bought out parts, and that if we decide to make them it should be on a fair competitive price basis. Rm.{William Robotham - Chief Engineer} | ||