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).
Inclusion of establishment charges and overheads on standardisation cost sheets.
| Identifier | ExFiles\Box 154a\3\ scan0108 | |
| Date | 9th November 1933 | |
| Hs. {Lord Ernest Hives - Chair} from Wor. {Arthur Wormald - General Works Manager} c. to Sft. {Mr Swift} c. to E. {Mr Elliott - Chief Engineer} c. to By. {R.W. Bailey - Chief Engineer} c. to G {Mr Griffiths - Chief Accountant / Mr Gnapp} /Rb. {R. Bowen} Handwritten notes: x 30mo. LID {A. J. Lidsey} See me /HS {Lord Ernest Hives - Chair} Wor {Arthur Wormald - General Works Manager} 6/R.9.11.33. Hs {Lord Ernest Hives - Chair} 3/MJ.6.11.33. & G2/24/W.7.11.33. Are we dealing with this matter in the correct way ? I had to tackle it in June 1932, when I stated that the figures on the Standardisation Sheets should include Establishment Charges of 150%. I again had to tackle this question in September last. I set out very clearly in my memo of the 12th September how to deal with this matter. It would appear that you are not getting together as I suggested you should do, to consider the best method to be adopted so that in future standardisation sheets would bear cost figures before they are sent out for signature. These cost figures should be based on the experience of the practical side and the experience of the accountancy side. Our net labour should, of course, bear a percentage for overhead charges, and, furthermore, we must not overlook the fact that if we manufacture this pump here, we have 7/6d to put on each one that we make. This appears to have been overlooked until G. {Mr Griffiths - Chief Accountant / Mr Gnapp} pointed it out, which, in itself, shows that it is necessary for all concerned to please get together and agree on figures to be inserted on standardisation sheets. Wor. {Arthur Wormald - General Works Manager} | ||