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).
From F. H. Royce outlining the reasons why the cost of production must be reduced.
| Identifier | ExFiles\Box 180\M6\ img028 | |
| Date | 9th June 1928 guessed | |
| (contd.) (2) Cost of production, starting with the designs to the erection, will have to be reduced because: (1) Mr. Bentley gets us the best price for the work, and we must have an average of £15,000 in orders per month. (2) The money spent in materials and productive wages must bear charges at least 12% and 15% respectively, or we cannot possibly meet our charges. (3) Of the £1 spent, approximately 10/- is for materials, 4/- labour, and 6/- charges. We cannot hope to alter this proportion very much, but we can reduce it by 5% and make a profit, or increase it 5% and have to close the Works. Charges here include getting the order, and unproductive wages. The drawing office and each department should know what sum they must keep within, and Mr. Kenyon be informed of the allowance to each department. Yours faithfully, (Sgd) F.{Mr Friese} H.{Arthur M. Hanbury - Head Complaints} ROYCE. | ||