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).
Design and production problems, discussing the need for more economical production to compete with the USA.
| Identifier | WestWitteringFiles\V\October1930-February1931\ Scan197 | |
| Date | 10th January 1931 | |
| TO. E.{Mr Elliott - Chief Engineer} B. (Mr. R) DY.{F R Danby} HS.{Lord Ernest Hives - Chair} ) (At Le CanadelHenry Royce's French residence.) [Crossed out] FROM R.{Sir Henry Royce} C. to SG.{Arthur F. Sidgreaves - MD} WOR.{Arthur Wormald - General Works Manager} (Mr. C. to Lord Wargrave. C. to Mr. Claremont. DESIGN AND PRODUCTION PROBLEMS. I am quite in agreement with Mr. Hives that the time has come when we must study cost with the greatest possible vigour, and we are all agreed that it is possible to make great economies without loss of perfection, which, as before, must be our very first requirement, but we might sacrifice 1 per cent of perfection for 10 per cent in cost. There is no doubt that many people are, and have been, watching RR. very closely as a standard of perfection etc, and are often trying to make a cheap edition of our work. Naturally they are taking parts from others also: we are not vain enough to think that we are the only good pebble on the beach. We also know that after we have achieved a certain degree of perfection it is very often possible to redesign for economical production without losing much in efficiency, but through want of capacity and the difficulty of changing we do not do so. Generally also we do not get the final requirements until we are well on with production - (also for the reason of having too much in hand.) It must be remembered that we have a great deal of work of a very highly technical character and it must be realised that while we must economise to reduce our establishment charges from their very high ratio to output, we must not reduce our technical capacity. We know that it is possible to do more with the same expenditure but that is not the wasteful part of our expenditure. We are thankful that the aero engine prospects are bright but while these are promising us support we ought to set about trying to make the Company's operations more efficient - i.e. while there is time, and we can, because if we were to save all the direct labour cost our productions would be too costly to compete with USA. Either we have to increase our productions or decrease our establishment charges, because no matter how good our work is technically we cannot expect to get the present prices. So we must look forward that we must part with our productions in the near future for considerably less money, so that to get the present turnover we must be doing 100% more production work. Materials in England are higher in price than USA. This supports my statement that with us it falls still more heavily upon our Co., because the whole country is less efficient. We have always found this forced us into making many things that similar people in USA. bought from specialists. This is still glaringly forced upon us. (1) | ||