Rolls-Royce Archives
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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).
Cost breakdown and analysis for car body production, comparing labour and material expenses with competitors.

Identifier  ExFiles\Box 161a\1\  scan0063
Date  22th December 1939
  
) 4 (

Conclusion. Cont'd.{John DeLooze - Company Secretary}

(b) Shell £20.
(c) Wings £20. 10. 0.
(d) Trimming. £10. 0. 0.
(e) Joiners. £10. 0. 0.
(f) Painters. £3. 10. 0.
(g) Elec. Wiring. 5/-.
(h) Smiths. £1. 0. 0.

£65. 5. 0d.

When this is deducted from the present material body cost of £135 we are left with total material cost of £69.

WAGES OR LABOUR COST.

A material cost of £69 on a total cost of £135 leaves £66. for labour and overheads and if the latter be 100% on labour a labour charge of £33 per body results.

This was compared favourably with -

Rover wages - £12. 0. 0. per body.
Daimler wages - £15. 0. 0. per body.

It is therefore necessary for the labour to be reduced from £51 to £33.

Ward at present spends £9 wages assembly shell and this charge would not exist with the P.S.C. shell. Therefore £9 wages plus £9 overheads can be deducted from £51 which leaves £33 for labour.

In other words even on the preliminary set up for 10 bodies a week, the labour figure of £33 becomes a possibility if the body is fully tooled. Obviously 5,000 bodies have to be made to pay for the tools.
  
  


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