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PROBLEMS...that's the
challenge facing new NCB transport chief
E. V. IVIOLYNEUX
NEW times—new methods. The National Coal Board is at this moment putting just such a precept into practice to avoid having—in Lord Roben's words—"more harness than horse". On April 1 this year a major stage will have been reached in reorganizing the management structure of Britain's largest industrial concern, currently employing around 413,000. By then a five-tier management will have been replaced by a three-tier system based on 17 new-style areas.
Transport has likewise been subject to close scrutiny and reappraisal by top-level NCB study groups. In the process the transport organization of big commercial concerns has been examined. As a result the Board decided to set up a new department to be known as the "road transport service", with Mr. E. V. Molyneux as its director as from January 1 this year.
NCB has 4,250 vehicles, 4,500 drivers and mates, 700 repair men and about 100 non-industrial transport staff.
But what of the problems such a sizeable fleet must inevitably create and of the plans to resolve them? To find the answer I went along to interview Mr. Molyneux at Hobart House, London headquarters of NCB.
I first asked this 50-year-old chief of a huge civilian fleet how he responded to this change of hats after 33 years in the Army terminating as a brigadier in the Directorate of Army Maintenance at the Ministry of Defence.
There were both differences and similarities in the two roles, Mr. Molyneux contended. In the Army, one had to assess each task in relation to the job on hand. Cost was, as in all spheres, important but it was secondary to achieving the prescribed objective.
In civilian transport, such as that of the Coal Board, the elements of service and cost were more evenly balanced. He was therefore pleased that the Board had chosen the title of road transport service for the new department he now headed. It underlined the basic purpose of its existence—to serve the many activities of the Board with the road transport they required.
But was not this setting up of a new road transport department at variance with the policy of reducing NCB's five-tier management structure to three-tier?
Not so, Mr. Molyneux contended. The top-level reappraisal of NCB's main functions of production and marketing which led to the new administrative three-tier structure for the coal industry had thrown up a "few loose ends". It was coincidental, therefore, rather than as a direct result of administrative reorganization, that the road transport service had been set up.
Significantly, road transport was now represented at top-management level of NCB, with himself, as director, being answerable to the Board member for marketing, Mr. Derek Ezra. It was no longer a Cinderella service. Moreover, with changes already taking place in NCB structure, it was psychologically opportune to make any improvements in the road transport set-up now, rather than as an apparent afterthought.
Concurrent with the creation of the 17 "new" areas within NCB, each area road transport manager will carry far greater responsibility than formerly. While solely responsible for the day-to-day running of road transport in his area he will have functional responsibility to Mr. Molyneux.
Each will be in charge of 200 to 800 vehicles, with a salary of £2,000 plus, according to the size of his particular area. Such is the size of NCB that each of the 17 areas, on average, employs over 20,000 with a corresponding level of production and transport requirements.
If 17 area transport managers now in the process of being appointed were to take over greater responsibility than ever before, what was to be the function of the top administration of road transport?
Mr. Molyneux's reply was specific and comprehensive. Having determined, after extensive survey, that there was a need for a new road transport service department, the Board chose the man to head it, issued him with a directive and told him to get on with it.
Mr. Molyneux itemized the requirements and responsibilities of his department:— 1. Efficient operation and administration of the Board's fleet of commercial vehicles.
2. Introduction of uniform costing system.
3. Liaison with the Board's industrial relations department on wages and conditions of road transport staff.
4. Garages and servicing.
5. Repair of vehicles, at area, central or outside garages. 6. Hiring and requisitioning of vehicles.
7. Rationalization and standardization of the NCB fleet.
8. Stimulation of the development of vehicle design in consultation with users and manufacturers.
All in all an impressive list, But, day in day out efficiency in transport operation can largely depend on decisions—at ground level—on what is, or is not, a reasonable demand on a transport service. All the more so when 4,000 vehicles and more are involved. With these thoughts in mind I questioned Mr. Molyneux as to what yardstick NCB used in making such decisions.
It was the responsibility of the road transport service to provide the user departments of NCB with the vehicles they required, Mr. Molyneux replied. It was not within his province to restrict that demand. But his department could advise as to the best type of vehicle for a particular job.
But the ultimate solution to obtaining an equitable balance oetween acceptable levels of service and efficiency lay in the nfluence of a costing system throughout the fleet. It was sigtificant that introduction of such a system came second only to :fficiency in the list of requirements.
His department, Mr. Molyneux continued, had to show a return on its assets and accordingly made a hiring charge to user departments in a similar manner to charges rendered by an outside haulage contractor.
A recommended costing system was being operated in four ireas as an experiment. From the results so far obtained, he added, t would be not far short of the general costing policy to be applied o road transport operation throughout the Board.
We then discussed maintenance and vehicle replacement policy. previously there had been no overall policy at national level m vehicle selection, purchase and maintenance. It would therefore )e necessary for him to make an early assessment of the scope ind calibre of existing maintenance facilities as a first step in -ationalization.
Within NCB at present, Mr. Molyneux explained, maintenance vas carried, out at three types of establishment. First there were he workshops primarily concerned with road transport. Then here were workshops chiefly involved in the maintenance of nining machinery, with road transport work taking on a minor role. Thirdly, some vehicle maintenance work was done at outside garages.
Mr. Molyneux disclosed that he was examining the comparative effectiveness and cost of these three methods of providing maintenance and how they would fit in to the pattern of the 17 areas. He was, as yet, uncommitted, but decisions in this sphere must inevitably have a bearing on vehicle selection.
As with other concerns, NCB had to limit capital expenditure to funds available which could influence policy on hiring of both vehicles and maintenance facilities. Moreover, where this was done in appropriate circumstances, maintenance facilities might be provided more economically for two or more operators through the more efficient use of skilled labour and equipment.
A weakness of the previous NCB road transport organization had been the lack of liaison on research. Understandably NCB's major structure was related to the siting of the coalfields, which excluded large consumer areas such as London.
Therefore, in the past, there had been the possibility that there was not as full an exchange of ideas on coal vehicle development effected by distributors in such areas as there might have been. Moreover, Mr. Molyneux emphasized, co-ordination of ideas on vehicle design for use throughout the whole sphere of coal production and marketing could lead to both a better and cheaper vehicle.
"Wherever one looks there are problems", said Lord Robens recently about the coal industry. How aptly these words fit the challenge facing Mr. Molyneux in his new job. The sheer size of NCB is one aspect.
Likewise the capacity to transfer 20,000 men to alternative jobs in one year alone (1966) is indicative of the extent of the change NCB is now undergoing. And inevitably the road transport service must be directly affected by the changes in both the demands on its facilities and in the means of meeting these demands.
For 33 years, in war and peace, Brigadier E. V. Molyneux, OBE, MC, has lived a life of change dictated by Army assignments in charge of transport throughout the world. So problems arising from changes within NCB appear to him as another challenge to be surmounted. And throughout our interview it was evident to me that the newly appointed road transport chief of NCB knew what makes road transport operation "tick"—whether military or civil.