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).
Review of the increasing cost of materials for the 40/50 HP chassis, comparing current costs to pre-war figures.
| Identifier | ExFiles\Box 80\2\ scan0258 | |
| Date | 23th November 1920 | |
| CJ from Wd.{Mr Wood/Mr Whitehead} c. to NJ. c. to Wor.{Arthur Wormald - General Works Manager} c. to Hn.{F. C. Honeyman - Retail orders} c. to Hy.{Tom Haldenby - Plant Engineer} c. to Ef. c. to Hs.{Lord Ernest Hives - Chair} c. to By.{R.W. Bailey - Chief Engineer} c. to Hm.{Capt. W. Hallam - Head Repairs} Cost of Materials. On several occasions within the last nine months the current cost of materials employed in the construction of our 40/50 h.p. chassis has cropped up in discussions and comparisons, not always well-founded, have been made. I think that a review of the circumstances may be helpful and with this object I will endeavour to state the case as it appears to me:- (1) I am informed that the cost of the materials used in the pre-War chassis averaged £196.0.0d. per chassis. No materials for electrical starting and lighting equipment were included in this figure. (2) Our Estimating Dept. inform me that the current cost of material in the chassis, exclusive of materials for electrical starting and lighting equipment, is about £568.0.0d., or almost three times the pre-War cost. I have ascertained by enquiry that this increase is not abnormal. The cost of material and finished parts bought outside for the electrical starting and lighting equipment is about £55.0.0d. The two sums together amount to £623.0.0d. (3) When comparing the cost of materials in the pre-War chassis with the current cost of materials, it should be borne in mind that more expensive materials are being employed for certain parts of the chassis, notably:- Rear Axle Tubes and Axle Box Cross Members of Frame Mild Steel Forgings These items probably account for £20.0.0d. of the increase. (4) The quality of the materials we purchase and employ is generally superior to standard commercial quality and is consequently higher in price. Following are instances of raw materials:- Aluminium. We insist on a very low iron content, with the result that we pay on the average 12% more for our aluminium ingots than standard price. (contd) | ||