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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).
Comparing steel prices, quality, and rejection rates from various suppliers like Firths and the Alloy Steel Association.

Identifier  ExFiles\Box 148\5\  scan0259
Date  21th December 1937
  
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BY.1/G.21.12.37.

a percentage drop on Firths price.

There is an 8% advantage on the Open Hearth Steel in favour of Alloy Steel Association's price.

Comparing now the actual price we pay for our steel from Firths, which includes a thorough inspection of all bar material, allocation of casts to suitable sizes of bar and billet according to analyses, high to big material, low to small sizes, and a preferential treatment giving us the first call on their capacity.

I find we pay for this a fixed price of 5% on the £37. 18. 7d. quoted above.

As to the value of this examination, I found from enquiry from Mr. Haigh (the Manager of the Bar and Billet Department) that on 1500 tons passed through 152 tons were rejected, a figure of 10.2%. It is clear that the 5% allowance for examination justifies itself.

If we adopted Open Hearth steel there would be a saving of 10% in the Alloy Steel Association's price against Firths, but this would be accompanied by a marked increase of rejections in forgings made from the billet and machined parts as made from the bar, and I much doubt that the forgers would quote figures for 'Open Hearth' steel any lower than they would electrically made steel, as the former would result in more forgings rejected.

Comparing now prices as obtained from the drop forging firms, and giving the forgers a free hand in buying their steels, the saving was in each case :-

Hughes Johnson approx. 4%.
Deritend Stamping Co. " 8%.
Bretts. Stamping Co. " 3%.

These figures confirm my conclusions in this connection outlined above, as the Deritend Co. who show 8% drop are notoriously unreliable from the point of view of parts returned.

(b). 5% Casehardened Nickel. (35% Total).
This is a steel which we cannot afford to consider in any but its electrically produced variety, as the increased slag inclusions resulting from 'Open Hearth' production is liable to cause trouble on the hardened and ground working surfaces.
  
  


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