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 analysis discussing economies of scale for the B.V. car body and the target for an £800 car.
| Identifier | ExFiles\Box 144\4\ scan0016 | |
| Date | 12th February 1940 | |
| - 3 - 3. OTHER ECONOMIES EFFECTED ON B.V. Referring back to Page 1. We have so far demonstrated that out of a total reduction in cost of £155 between B.11. and B.V. bodies only £4. 14. 10d. is due to the money spent on tools with Motor Body Panels. On going through Ward's figures it is clear that the remaining economies of £150. 5. 2. are only possible due to economies effected in - (a) Labour. A steady flow of 10 chassis per week, all to be fitted with exactly similar bodies, enables an efficient organisation to be envisaged and also an increase in the amount of semi-skilled labour that can be employed. (b) Material. Ordering material in sets of 500 has a slight effect on cost reduction. The saving is rather greater than might be judged from Page 1. since on the B.V. body a number of pieces which used to be made in the factory on B.11. are now bought out in a fabricated condition and so transferred from Labour to Material. 4. SUMMARY. (a) Spending £7,000 on tools will reduce the price of the body 5% after the first 500 have been made. (b) Putting bodies through in batches of 500 and at a steady rate of 10 per week, will reduce the price of the body almost 40% if Ward's estimates can be substantiated in production. 5. THE £800 CAR. In Rm.{William Robotham - Chief Engineer}1/MH.{M. Huckerby}11.11.39 the first target was to make an £800 car and for this to be possible, Park Wards had to sell a body to R.R. at £225. | ||