Firestone News (Gastonia, N.C.) /
April 1, 1959, edition 1 /
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There are seven major essentials
in the process of manufacturing
goods^ providing services^ and
placing these at the disposal
of the consumer.
Hfen Vital To Manufacturing
These are the people who use the machines and
materials provided to make the product. The day of
the automatic factory is not yet here and regardless
of the state of mechanization, some men will always
be required. The problems of people in any enterprise
are important, because without satisfied workers who
produce on their jobs, all other efforts toward a prof
itable manufacturing activity will be in vain.
The many problems involved with Men in manufac
turing can'be classified this way: Employment, Train
ing, Health, Safety, Benefits, Services, Labor Rela
In the effort to make the best use of all employees
and to continue the growth and expansion of the
American Way, industry has developed a new depart
ment called Industrial Relations. This new field has
been made necessary by the great changes in the re
lationships between employer and employee, and the
changing picture of industry.
A few years ago, in the not-so-complex days of in
dustry, the manager was boss. His position was un
derstood by his employees. For some reason—now of
ten forgotten—the employee expected the boss to
make money for his company, and if the boss were
not prosperous, there would be no jobs. The public
also recognized that the manager must run his com
pany in his own way, make money for himself, for
how else could the community benefit? Simply, the
boss was a leading citizen and his practices were ac
cepted and approved by the employees and the com
An evolution in industry has brought about a some
what different situation today. There is much debate
over existing conditions. We need to take an honest
look at what the changes have brought about.
The central achievement of the free-enterprise sys
tem under which we operate has been the great rise
in the standard of living to its present level. It is high
when compared with that of the past, and high in
comparison with other countries today.
With only one-fifteenth of the world’s population
and about the same proportion of the world’s area and
natural resources, the United States has more than
half the world’s telephone, telegraph and radio net
works—^more than three-fourths of the world’s auto
mobiles—almost half the world’s radios. The country
Consumes more than half of the world’s copper, two-
thirds of the silk, a quarter of the coal, and nearly
two-thirds of the crude oil. When we think of these
Over-all benefits, our problems become less signifi
Let us remember that Capitalism is an economic
System in which the bulk of the capital is privately
Owned by individuals and corporations. This system
is opposed to ownership by the State, or government.
Information compiled by the New York Stock Ex
change tells us who are America’s Capitalists:
Who Ownw Tlie Shai*e«t
Based on Shares Owned
Joint Accounts 7.5%
Trustees, Institutions, Other 29.3%
Share Owners by Income Groups
Family income under $5,000....31.6% or 2,050,000 people
$5,000 to $10,000 44.4% or 2,880,000 people
$10,000 and over 24.0% or 1,560,000 people
Take a look at some statistical facts concerning
labor in American industry:
A man worked 4.67 hours in order to earn enough to
buy a cotton dress
He worked 75.1 hours to buy a man’s suit
He worked 17 min. to buy a loaf of bread
He worked 24 min. to buy a quart of milk
A man worked 2.5 hours to buy the same dress
He worked 23.2 hours to buy a suit
He worked 6 min. to buy a loaf of bread
He worked 8 min. to buy a quart of milk
Money Necessary To Produce Goods
Money is high on the list of important aspects be
cause it is necessary to any manufacturing operation.
Money is needed to provide plants and equipment, to
purchase raw materials and to meet payrolls. Money
problems in modern industry usually get intertwined
with problems of ownership.
Long-term financing is achieved through ownership
investment of the proprietors, partners, or in the case
of the corporation, the stockholders.
The total increase in the labor force is estimated to
exceed 10 million in the 10 years 1955 to 1965, and over
13 million in the decade from 1965 to 1975. Not only
is it important to consider the growth in the working
force, but it is also important to take into account the
growth in population. Industry, then, has two prob
lems to solve. These are: To provide a sufficient num
ber of new jobs to take increase in the labor force and
the other is to make all jobs, both new and those
already existing, sufficiently profitable to the worker
to take care of the additional number of dependents.
If this second objective cannot be met, our nation will
be faced with a decline in our standard of living.
How much will it cost to take care of these new
workers? For an idea of the cost, let us assume that
each new employee’s job will require the same invest
ment as that required for present workers. This in
vestment is $16,600 per worker as calculated by the
Conference Board for 1957, and almost double what
it was in 1948. If no allowance is made for this upward
trend, it would take $166 billion to provide jobs for the
10 million new workers appearing between 1955 and
1965, and $215 billion to provide jobs for the 13 million
workers seeking jobs between 1965 and 1975.
Where will the money come from? In the past, labor
has been provided with new jobs mainly through the
re-investment of earnings and partly through the
raising of equity capital by selling stock to investors
who were able to save money either from their own
earnings or from dividends received. This makes it
clear that profits are necessary to maintain our
American Industrial Complex.
Machines: A Basic Necessity
Industrial equipment, or machines, is one of the
basic necessities for production of maniifactured
goods. Machines must be up-to-date and must be
adaptable to the program of increasing production, in
order to lower unit costs.
For centuries man has been seeking to replace
or reduce manual work with tools and other devices.
Automation is the continued effort to mechanize
The most important impact of automation will not
be on employment, but on the qualifications and
functions of employees. Large numbers of men will be
required in new, broader and more technical fields.
This increase in the type of workers and the demands
made on them will be the largest of all the social
impacts of automation. So, unemployment will not
be the big problem.
Automation will upgrade the semi-skilled operator
of today, multiplying his income. It will naturally cut
into some fields of employment, but will create others.
The really serious problem is how to upgrade whole
segments of the population in a very short time.
Automation demands close study and analysis by
Materials Become Finished l«o«»ds
An average manufacturing plant spends approxi
mately 60 per cent of its gross income for materials
which go into the finished product. This points up the
interdependence of the various industries. On a recent
metalworking project the Firestone company used the
services or products of some 500 suppliers.
Management Besponsibility High
Prior to the 20th century the words “management”
and “ownership” meant almost the same thing. But
today’s management finds itself facing a multitude of
problems, not the least of which is how to fulfill basic
responsibilities. Manufacturing management has re
sponsibility to the following groups:
Owners of ihe business Customers
Employees General public
Markets Take Goods To Consumer
This has been a discussion almost exclusively about
manufacturing processes and problems. Remember,
though, that all manufacturing would be useless with
out the ultimate sale of the product to customers.
There are five basic processes involved in reaching
and holding markets: Distribution System, Factory
Location, Advertising, Sales Departments, Marketing
Methods l§!eek Ways Of
Methods analyses are conducted for the purpose of
increasing production and reducing costs by making
tasks easier and safer to perform and less time-con
suming. Securing increased productivity and reduced
costs through improvements in methods are used side-
by-side and at the same time with the method of at
taining increased production and lower costs through
Improved methods will enable employees to produce
more goods while working no harder than before and
with fewer worries regarding hazards on the job, and
easier lives through the aid of auxiliary equipment
for difficult and tiresome duties. As tasks are made
easier, skill will be required instead of strength, and
with the increase in skill, wages can be increased.
Fundamentally, every person in an organization is
responsible for being alert to opportunities for im
proving working ways and means. This has been en
hanced partially by the Employee Suggestion System.
The study of methods tends to emphasize just how
complex industry is, and how important it is to un
derstand and solve the problems, if industry is to
survive in the midst of competition.
FLOW OF MONEY & GOODS
CLOCKWISE FLOW—GOODS AND SERVICE ^
COUNTER-CLOCKWISE FLOW—MONEY >
We live in a day of great opportunities which call
for an inspired and crusading spirit on the part of
leaders in industry, business and labor. This challenges
us to find the way, or ways, by which owners, man
agers, financiers, labor, government and the general
consuming public can work in harmony. The goal of
this harmony is to bring about a full and efficient use
of our resources, factories and distribution systems
for greater productivity and high living standards for
Firestone News (Gastonia, N.C.)
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