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).
Letter from Morris Motors discussing the cost breakdown of a 25HP engine and their purchasing advantages.
| Identifier | ExFiles\Box 128\1\ scan0336 | |
| Date | 27th May 1938 | |
| MORRIS MOTORS LTD. MORRIS (Regd Trade Mark) TELEPHONE: COVENTRY 4051. TELEGRAMS: MORENGINES, COVENTRY. BY APPOINTMENT LORD NUFFIELD CHAIRMAN OLIVER BODEN, O.B.E. VICE-CHAIRMAN ENGINES BRANCH GOSFORD STREET, COVENTRY. J.{Mr Johnson W.M.} SHAW MANAGING DIRECTOR YOUR REF: Rm{William Robotham - Chief Engineer}2/R.{Sir Henry Royce} OUR REF: WRB/RJE. Handwritten notes: 110H SWDL{Len H. Swindell} Can we get a cost balance out for the Morris engine Rus W.A.Robotham, Esq., Messrs. Rolls-Royce Ltd., DERBY. 27th May, 1938. Dear Robotham, Many thanks for your letter of May 24th. To give you an exact list of the parts which we buy out finished would mean that we should have to send you a complete engine specification marked up accordingly. I can, however, give you a figure which will serve your purpose. We pay £13. 10. 0d for all raw material for one 25HP engine. The cost of all bought out finished parts is £11. 13. 0d. In other words, 46% of the cost of all material delivered to the factory is spent on bought out finished parts. If you work out the same figure for your own job and compare it with this, I think it will enable you to get a satisfactory comparison on a "man hours" basis. I have considered your second question very carefully, but I think it is very questionable whether Leslie would gain any useful information by this suggested visit. Please believe that this is not an attempt to avoid giving away secrets, because the whole point is that we don't possess any. Any buying advantage which we have over other firms is a question of quantities, prompt payment, and goodwill generally. These points are not controlled to any extent by the Buyer in person. I am certain that our Mr.Knight would be the first to admit that he operates in exactly the same way as any other experienced and honest Buyer. He receives drawings from the D.O., sends them out for quotation, and accepts the lowest tender, always assuming that the Firm is reliable, and has the necessary output capacity. -contd- | ||