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).
Cost comparison analysis of wages to material ratios for Rover and Bentley 12.HP chassis production.
| Identifier | ExFiles\Box 111\2\ scan0276 | |
| Date | 4th December 1937 | |
| Rm{William Robotham - Chief Engineer}/Gry.{Shadwell Grylls}5/AP.4.12.37. 800 COMPARISON OF R.R. AND ROVER COSTS. Rover's figure on the 12.HP. chassis of wages/material is .113 The Bentley figure is .65 The parts which Rovers buy out and we make ourselves which are Brakes, Camshaft-Bearings, Exhaust, Frame, Petrol Tank, Dampers, Air Silencer, Crankshaft-Bearings, Electrical Equipment, Prop. Shaft, Radiator and Castings cost us in wages £50. If we bought these out at the same price as they cost us including 200% Overheads our wages material ratio would be reduced from - 160/245 - (.65) to 110/395 or .28 We estimate from their profit that the Rover over-heads are 250%. If Rovers made as much of their car as we do at our overheads, their labour material ratio would be .113 X 65/28 X 35/5 = .305 Two possible ratios for Bentley 50 are:- (1) 104/181 = .58 (2) 100/150 = .65 Rm{William Robotham - Chief Engineer}/Gry.{Shadwell Grylls} | ||