Excerpt from Shoe Factory Efficiency
Since manufacturers sometimes ai-e at a loss to know whether or not they are making the best possible use of the floor space at their disposal. Careful investigations are made and the untiring efforts of the superintendent are enlisted. Frequently the concerns in doubt go outside and employ the services of men whose business it is to study, devise and improve systems with an eye to greater productiveness. This latter course is a very profitable investment, providing the men engaged are thoroughly conversant with the pecular problem of producing shoes.
It is very natural that shoe manufacturers should want to know exactly where they are at, inasmuch as the field of competition is extremely keen and the margin of profit small. The race is, indeed, for the sure-footed no less than for the fleet-footed. A few suggestions may clear the situation. For instance, a manufacturer may perceive in advance that the price of materials is going to rise and in this case he is confronted with the problem of "stocking" up. Now, unless he knows down to a cent what it costs him to make his product and unless he is informed down to a square foot as to how much room it requires to move the work through to completion, he cannot wisely venture into the market and place heavy orders with a feeling of clear confidence. Lacking such precise knowledge of hi.3 own business he fails into the habit of waiting and considering, with the result later of buying materials at advanced cost. Many manufacturers take long chances and they stand to win or lose, but those be.
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