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).
Letter discussing production scheduling, material ordering, and managing increased workload to improve turnover and capital efficiency.
| Identifier | ExFiles\Box 180\M6\ img027 | |
| Date | 9th June 1928 | |
| 2/H/28 John 21/9/28 "ELMSTEADHenry Royce's home in West Wittering", WEST WITTERINGHenry Royce's home town. Copy to Mr. Claremont. " " Allcock. " " Hulley. 9th. June 1928. Messrs Bentley, Coley, & Kenyon. ROYCE LTD. MANCHESTER. Dear Mr. Bentley, Coley, Kenyon, Regarding the increased quantity of work I think our chart should be arranged to start with the orders in hand - say £40,000 - at the end of March 1928, and go up to an addition of £180,000 to the end of next March- i.e. £15000 per month. Regarding the work in progress it would appear that we ought to find the approximate time taken to produce each part, and make a schedule. We ought to order materials for the various parts to be delivered at the proper date, according to the date the work is due for completion. All parts should be ordered to be delivered on the date they are required, either as raw material or finished articles. If they are delivered before the date they are due they ought not to be invoiced until the proper time. This is to reduce the required capital, and prevent us starting on the work until it is necessary to meet the customers requirements. In fact we should not be encumbered in the Works, and the materials should not be issued from the Stores, except under special circumstances to keep men and machines busy. It would appear from the value of the work in progress (not stock) that the average time for starting a job would be about 5 months before the time of completion. This is too long. One imagines that when you start on producing, say, a standard 25 ton crane, or any other similar job taking about the same time it should be completed in the Works in between 2 and 3 months. Unless we do this, and increase turnover, we shall have insufficient capital, so that when an order is received the progress man should make a chart of when he requires his material, and we should work as a team to give him the materials, neither before or after the correct date. You will say that I am idealising, but I expect it would be necessary to occasionally grant a tolerance of several weeks, but at the moment it is several months; I believe therefore 4 or 5 times too long. (1) | ||