This section is from the "Modern Machine Shop Construction, Equipment, And Management" book, by Oscar E. Perrigo. Also see Amazon: Modern Machine Shop Construction, Equipment, And Management.
Or, as is the better procedure, the order when received by the factory manager will be entered in his Order Book and sent to the Production Engineer, or similar official, in charge of the Planning Department, in which all orders for work, drawings, shop operation cards, etc., are issued. This official will issue the Sub-Production Order Card shown in Fig. 217. This order gives the general order number by which this particular work or operation will be identified. It may be issued for a large number of small parts, which are to be made and turned in to the Finished Parts Store Room, from which they may be drawn on requisitions for assembling of erecting; or it may be issued for the making of the number of parts required for the general production order whose number it bears. Several Sub-Production Orders may be issued for work in different departments on the number of the one general order. The blank lines to be filled in this order explain themselves. A similar form is used for assembling, erecting, testing, etc., except that different colors are used, and duplicates are filed in the office issuing them. But caution should always be used lest too many blanks are used and confusion result, as it is much better to make one card or paper blank do as many different things and perform as many different services as possible, even through different departments, each of which may add the necessary endorsement and pass it along. When so used the blanks may need to be of larger dimensions and have appropriate spaces for the several endorsements of the departments through which they may pass.
Fig. 217. Sub-Production Order Card.
When a special machine, attachment, fixture, etc., is to be built the General Manager will issue a Special Production Order of the form shown in Fig. 218. This order is handled in a similar manner to the Stock Production Order, Sub-Production Orders being issued to the various departments concerned. Usually specifications or drawings, or both, accompany it.
Fig. 218. Special Production Order Card.
For such work as the operation of the plant, maintenance and renewal of equipment, maintenance and renewal of real estate, etc., orders under the general name of "plant orders" are issued. They have written or printed upon them the particular work that each class covers, and should be of a distinctly different color from production orders. In numbering all general orders are in one series. This serial number is placed on all sub-production orders and a serial number for the particular class added. Or, the general serial number may be used with a symbol of one or more letters prefixed, as X for experimental work; R for repair work, etc. It is sometimes convenient and practical to prescribe limits for the use of serial numbers. For instance, general production orders may be numbered from 1 to 2000; plant orders from 2001 to 5000; and sub-production orders from 5000 up.
All orders, when the work called for by them has been completed, will be returned to the official issuing them unless there is a specific instruction to the contrary.
All material is "drawn from the store room," whether actually in that room or stored elsewhere, but accounted for as "in store." This will include castings and similar rough stock, as well as purchased parts and small materials; and from the finished parts store room the parts manufactured in the plant. Fig. 219 shows the form for a Requisition for Supplies Card.
Fig. 219. Requisition for Supplies Card.
It will cover all classes of material and supplies. For convenience these cards may be of different colors for the different departments. A carbon copy should be retained by the official signing them, and the original, with the store-keeper's report thereon, sent to the cost clerk. This report will give rates and values of the material issued.
In inaugurating a new cost system, it should be remembered that the first duty is to make a careful examination of the plant in general and of each of its departments, and the methods of manufacturing and cost accounting, as well as of the general and subordinate offices and their existing systems. This examination should be made by an experienced and trained expert, who should make a careful study of all conditions so as to be able to formulate plans and so co-ordinate them as to produce the best results with the least cost and without undue friction between the managing officials and the departments, or between the different departments forming the plant. The importance of this examination, the carefulness with which it is made, the thorough and painstaking study of its conditions and elements, and the accurate deductions made therefrom will in a great measure determine the success of the cost system that is finally decided upon.