The General Manager has a personal Assistant, and, for his commercial affairs, the service of a commercial Accountant and a Cashier. Other office employees are similar in number, duties, and responsibilities to those in the usual commercial office.
By referring to the chart, it will be seen that the organization is divided into two distinctly different parts. First, that of production or manufacturing proper; and second, that of selling or marketing the output produced.
In this case the production division is by far the most numerous and complex. This, however, is not always the case - as, for instance, in the case of a manufacturing concern selling its product through local agents. Frequently the territory over which sales are made is divided along state lines, and a District Agent appointed for each state. These, in turn, appoint the Local Agents. This necessitates an organization of hundreds of local agents, supervised by state or district agents, and these in turn by a General Agent. Thus a very large organization is built up for disposing of the product.
Another plan is the employment of Traveling Canvassers, each having a certain territory to cover, who make their reports to either state or district agents, or to the general agent located at a central point - sometimes at the factory, but not necessarily so.
As competition becomes stronger and net profits smaller, the problem of marketing the product becomes more and more important; greater and more complex selling organizations are necessary; and the expense of selling increases. The advertising organization, or what has come to be known as the Publicity Department, is a most important adjunct to the modern manufacturing business; and large amounts of money are annually expended in its maintenance.
In the case under consideration, the selling of the product is in charge of a Sales Manager, who has as his office staff the Publicity Manager; the Preliminary Engineer,and the draftsmen and estimators who assist him; the General Salesman, who is in reality the personal assistant to the Sales Manager; and the Credit and Collection Clerk.
The Publicity Manager, sometimes called the Advertising Manager, has charge of all advertising of whatever kind, demonstrations at expositions and at agencies, and, in fact, all work that may be properly comprised under the term "publicity" - that is, keeping the public informed as to the product of the company and its adaptability to meet the needs of the public in the special lines it manufactures.
The Preliminary Engineer is in charge of such engineering matters as are necessary upon new work, or work upon which the Sales Manager desires to estimate. It frequently happens that considerable designing and drawing are necessary in this connection, previous to definite orders being given or contracts signed. It often happens that the product of the concern must be changed in certain details so as to adapt it to the uses of various customers, to the different local conditions under which it is to be used, and to the various purposes for which it is to be used. In case an order is given and contracts signed, the preliminary drawings thus produced become a part of the transaction, and are used by the Production Department in getting out the machinery to fill the order.
The purpose of the Credit and Collection Office is to canvass the financial standing of customers and prospective customers; to make collections when necessary to do so; and generally to advise the Sales Manager on these important matters. The official in charge of this office is frequently called the Credit Man, and must be a person of peculiar ability in his special line in order to protect the concern from fraud, imposition, and financial losses when dealing with customers of commonly unknown or doubtful financial ability and standing.
The Production Division is under charge of the Factory Manager, who has for his personal assistant a Production Engineer or Superintendent, who plans the productive scheme of the factory and supervises the departmental distribution of the work and the shop operations necessary for the routine work upon it. In a large manufacturing establishment, the Production Engineer will be at the head of a considerable force of draftsmen and clerks comprising what is sometimes called the Planning Department, which arranges all operations, shop routine, time schedules, premium rates, and similar matters. The Factory Manager will also have the usual office assistants, and have direct control of the Purchasing Department, the Time and Cost Department, the General Store-Room, and the Shipping Room. In some concerns the Time and Cost Department is a part of the Planning Department, as the records of this department cover nearly every kind of information required for the Time and Cost systems.
All other departments of the factory are divided into two general classes. The first comprises the general departments, as follows:
The Engineering Department, or Drafting Room. The Experimental and Development Department.
The Power Plant, for both the generation and the distribution of power. The Iron and Brass Foundries.
The Carpenter Shop (including sometimes the Flask Making and Repairing Departments).
The Paint Shop and Painters' Supply Room.
The Transportation Department for shops and yards.
These are under the supervision of the General Superintendent, who has charge of all mechanical matters except those strictly pertaining to production or to the actual manufacturing of the product.
Fig. 8. Chart Showing Official Channels of Communication and Authority from Superintendent to Workmen in a Typical Manufacturing Establishment.
The second general class is that of Production, and will ordinarily consist of the following departments:
The Planing Department, including shaperns and slotters.
The Drilling and Boring Department, including vertical, horizontal, and radial drills and boring machines.
The Heavy Turning Department, including lathes of less than 24-inch swing.
The Milling Machine Department, including horizontal, vertical, and special milling machines, profile machines, etc.
The Gear-Cutting Department, for the making of all classes of gears.
The Grinding Department, including cylindrical, disc, and surface grinding.
The Polishing Department, which includes polishing, buffing, etc.
The Assembling Department, in which parts (usually comparatively small) are assembled in groups of related parts and stored, pending the final erection of the machines.
The Erecting Department, in which the entire machine is erected and usually tested, and inspected, receiving the final painting and other finishing work ready for shipping.
Should the character of the product be such as to require it, there will be also a Plating Department, usually located adjoining the Polishing Department.
This class of departments will be under the direct supervision of the Production Superintendent.
Each department is in charge of a Foreman, who is responsible for the discipline, the work, and the efficiency of the force under him. Frequently the department is large enough to require one or more assistant foremen. Under these may also be Gang Bosses, each of whom will have a small force of employees, called gangs, for whose work and efficiency he is responsible.