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).
Financial and production implications of the Goshawk II model and comparing it to Humber models.
Identifier | ExFiles\Box 18\6\ Scan264 | |
Date | 2nd March 1921 | |
-2- times a year. If you will refer to our Minute (1) dated 25/26/2/21 you will see that this figure of £5,000,000 included a yearly Sales figure which includes the cost of Sales, Inspection, Agents etc. which is a non-earning factor, and naturally absorbs a good deal of the interest earned by the turnover at the Works. (b) We consider that if a proportion of the Works was closed the possible economies which we could make in Establishment charges would not compensate, and that it would be, in our opinion, necessary to reduce the capital of the Company, proportionately. (3) If only 750 of Goshawk II were made in a year, by how much would the cost be increased over £1050 in respect of material and labour? Naturally the Establishment charges per chassis must be largely regulated by the total output of all models. Providing that the capacity of the Works was fully employed upon production of all models, and providing we could make a series of 750 Goshawk II without a break in any period of a year, we are of the opinion that the cost would not be materially increased. The reason why there should be no increase in price is on the assumption that the 750 chassis would be produced in one batch and without any break. This would avoid interruption in the machining operations, as it is these interruptions, with the additional cost of setting up etc. which increase the cost, and immediately these 750 chassis were finished the machines involved could be taken off and put on to another job. Re CJ16/E2.3.21. to Hr. (4) If the Works cannot derive any further benefit from the 15HP Humber, in the construction of a third model, please let it be returned to Sales. We think Mr.Royce is mistaken in saying that the Goshawk II is similar in design to the Humber 15HP. We consider it an entirely different class and we suggest that possibly it would be wise for Mr.Royce to see the Humber 15HP, before we send it back to Sales, because it is entirely different in design from the Humber 10HP which Mr.Royce saw. | ||