MANUFACTURE BY ASSEMBLY.
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The Possibilities of Specialization in Component Parts.
TRE QUESTION of what is to be done after the war to meet the hea-vy competition we shall bebound to experience in the world's markets ist' a difficult one to decide, and opinions differ on this as on other matters. That . conditions will have altered both in the world's markets and in the factories here over those which obtained in pm-war times goes without saying. Also there is no doubt that a reorganization and reconstruction of methods will be necessary if we are to hold our own in the world's markets with our competitors, and, so far as a trade in commercial motor vehicles is concerned, particularly with our American competitors.
Single Model Concentration.
Whilst it is true that concentration on 'single models is not so characteristic of the American lorry trade as it is of the American touring car trade, there is reason to believe its adoption as a policy would prove sound. This is particularly the case with firms desiring to produce everything in the British fashion in their own factories. In America, we see already the beginning of the application of this principle to the lorry business in the success -of such cars. as the VimHalfton and in the fact that Ford has standardized a one-ton model.
Yet it may be recalled that in an interview with Mr. Sorensen—the Ford Co. works organizer, who was over here in connection with the M.O.M. tractor—which was published recently in a contemporary, that gentleman stated that, if he were to commence business again with the experience he now has, he would certainly not attempt to manufacture all parts in his own factory, even with the enormous output of that factory as it is to-day, but would, in preference, adopt an assembly proposition. There is much in this point of view, and it deserves the most serious consideration of our constructors, when reconstruction after the war becomes a question for immediate attention.
In America, with the exception of such makes as "The Three P's," where lorries are concerned, there is very little else but assembly work done ; although even these three firms do not make all their parts, but use some ,of the standardized trade components, where they find them equal to the standard of work they have set up. So that it may be said that more or less assembly work is done throughout the entire lorry trade of the States.
It is said appetite grows with what it feeds upon, and certainly, in a matter of this kind, the general adoption of the principle works towards the furnishing of its own supplies. In America, there are dozens of firms specializing on individual component parts. Firms laid out with the best machinery and productive methods concentrate on the production of single things like gearboxes, steering gears, engines, axles, wheels, etc., and even down to such smaller items as pistons and piston rings.
Let us take axles as an example. There is practically one standard of wheel tread universal throughout the States ; therefore any firm desirous of concentrating production' on axles can and does adopt c50 the standard tread, and if the spring pads are made adjustable it has the knowledge that its axle, when produced, will fit any suitable chassis and meet all requirements. Manufacturers—or assemblers—desiring axles can therefore take the proved production of either of the firms producing these things, knowing that they have 'stood the test of time in other hands and that there is no experimental character about the product.
They know, in short, that, if they take the axle of a leading supplier, who has furnished perhaps hundreds of thousands to other -makers, their axle, anyway, will be right, whatever the rest of their machine may be. They know, further, that if :they. should belet down on deliveries, for example, or find that, after all, one particular year's model of the axle adopted has developed a weak spot, they can without any difficulty and loss of time change over to another standard make and continue their production Of vehicles without delay or loss of time.
It is, moreover, usually found that concentration on specialized work such as this results in the car maker being able to purchase the specialized article from its producers at a less 'price than he is able to produce it in his own factory. In addition to which there is no experiment about the cost, as he knows exactly to a penny what the axle or other part is going to cost him. There can be no error of unascertained costs, no leakage in the factory and, as little possible production leakages have not to be allowed for, chassis cost and price to customer are both reduced. In this country we lack this class of organization to a very large extent.
What Britain is Doing.
It is true we have some firms specializing on a few of the smaller parts. Piston rings and pistons, for example, can now be purchased by manufacturers from specialist houses, and one, or two firms are confining their attention to engines ; whilst the beginnings are seen of an attempt by several firms to specialize on components, although for the most part they are all specializing on the full range of components required, rather than, as in America, on a single line of components. Here, we have houses who are announcing, as an after-the-war programme, the supply to the trade of axles, gearboxes, transmissions, steering gears and other things. In America, on a very much larger scale, there are firms who make nothing else but steering gears ; others nothing else but gearboxes ; others again back axles and. others front axles, and so on.
By concentration on one particular class of component, it is natural that the producer of such a line must accumulate a wider knowledge and experience of the construction of that line than if he diverted his attention to half-a-dozen other parts. We feel sure that this type of specialization will grow and will prove a paying line of work. The specialists here on pistons and rings, fa* example, find their factories fully employed, with an increasing demand, and so it will be with firms who will standardize and specialize on other individual pieces. Until they do, we
shall be at a disadvantage with our competitors, and manufacturers will not be GO ready to adopt the purchase of components.
That such purchase and assembly will prove to be otee way of meeting foreign competition we feel sure, and if manufacturers cannot obtain these components at once when the war terminates, they will be wise to purchase them where their competitors purchase them, i.e., in the American markets, until such time as our own markets can supply them in sufficient quantity, or they are themselves in a position to give sufficiently large contracts to justify new firms in entering this branch of trade. So long as the car manufacturer holds off from giving contracts until the component producer can furnish him with components in the quantity and at the price he requires, and the component builder, on the other hand, holds off standardizing on his product until cataracts am big enough to justify it in his estimation, so long will nothing be done.
By buying our components in the markets of our competitors, we start on a level footing with theta, with the addition of transatlantic freightage on complete chassis saved when the European and Eastern markets are considered. In this way we shall be getting on to the business of quantity production withaut delay and at the same time be building up the framework upon which our own component houses can ultimately establish their superstructure.