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December, 1925
Substantial Savings Made.
Forging - Stamping - Heat Treating
As shown in Tables I and II, the total first cost of
an original set of nickel die blocks is $353.15. These
particular die blocks are usually resunk three times
thereafter at a cost which is equivalent to the labor
and overhead expense of making the original set of
die blocks; the additional annealing and planing cost
when resinking being about equal to the additional
cost of machinery when the die blocks are first made.
Adding the cost of the three resinkings, the total
cost for a set of dies over their entire period of service
is $1,105.04.
The total cost for the carbon steel blocks, including
the three resinkings, is $988.16 over the entire
period of life. With a set of the nickel steel blocks
an average of 37,000 forgings for each sinking is obtained,
or a total of 148,000 forgings during the life
of one set of blocks. The carbon steel blocks last for
a total of 60,000 forgings. To obtain 148,000 forgings
with a set of the nickel alloy die blocks, therefore,
costs $1,105.04. For the same number of forgings
using carbon steel blocks, the cost is $2,437.46. The
saving effected by one set of nickel alloy die blocks
for this job is $1,332.42, which is a reduction in cost
of 54.6 per cent.
A saving in changing labor is effected because
each time a set of die blocks is replaced in a hammer,
an average of 2y2 hours labor is required. The saving
has been determined on the basis that the dies
are changed out of the regular working hours of the
hammer. However, occasionally these changes mean
lost machine time when they have to be made during
working hours, and, because the carbon steel blocks
have to be renewed more than twice as often as the
nickel blocks, there is another saving due to the latter.
Figures Do Lie—Sometimes
While it is the custom to price drop forgings per
piece rather than per pound and which per piece basis
the writer heartily approves—still it is well to roughly
translate them to a mental pound price, that we may
have a better perspective of them.
Some of us have recently become so befogged
with the maze of figures, methods, processes and differentials
left us by the scientific management era
and we have been so busy chasing the elusive minor
elements of Old Man Overhead, that we have overlooked
the fact we are sometimes pricing our product
at net figures that work out less than the pound price
of castings.
If you can make and sell drop forgings in small
quantites at prices less than the basic quantity price
of malleable, or even gray iron in some cases, then
go to it, and stay with it, because this is not intended
for you.
Recently in attempting to analyze some offered
prices, in defense of some current prices that were
challenged as being exhorbitant and apparently so
when compared with the offered prices, it developed
that the offered prices were but one or two cents
more per pound more than the current market rate
of the steel specified for them—and this on quantities
of one thousand only. Others developed that alloy
steel drop forgings including normalizing, were being
offered at less than the large quantity basic rate
of malleable, and barely over the market price per
pound of the steel.
When this was shown to the prospect, even he
readily saw the apparent discrepancy and requested
that the offered figures be checked. The reply was
at some length, entirly academic, laying great emphasis
on how carefully every detail of the estimated
cost of every proposed operation was prepared, computed,
stressed with its proper departmental burden,
and the administrative burden applied as moderately
as conditions would permit, etc., etc. But if the Super-
Accountant who had prepared that cost and price,
had gone at it in the old fashioned way, of saying
the piece will weigh so much and take so much to
make one, which at so much per pound for the stuff
(the market price of the steel) he would have found
that up to this point he cost would have exceeded the
price he offered even before getting into the basic
items of direct forging and die expense and aside
from whatever burdens, overheads or other such details
that should be added, irrespective of what you
call them or how or why or to what extent if any
you apply them—of course if it was contemplated to
use bargain or liquidated steel then this is another
matter—but we have seen so many such, and on such
a large range of possible sizes, grades, qualities and
quantities of steel that might be required—then possibly
those fellows have discovered a perpetual source
of such material.
Definite figures and specific cases have been purposely
avoided herewith (although they can be afforded
in abundance)—simply to distinguish this article
from one, which might have any inference or
formula as to how you should figure your estimates
or price your Stuff, other than to suggest that after
you have completed your acre or so of figures, to
stand off, look at the piece, say—how much will it
weigh; how much will I get for it; how much per day
will I get for the use of the hammer and crew; how
much will I get for the whole job—rather than to
gamble your dollars and possibly your business and
your future on those verified cost analyses or with
whatever title your Exalted Comptrollership dignifies
them.—The Old Man.
A. S. S. T. Sectional Meeting
The Winter Sectional Meeting of the American
Society for Steel Treating will be held at Hotel Statler,
Buffalo, on Thursday and Friday, January 21 and
22, 1926.
The first meeting of the newly elected directors
will be held at Hotel Statler the day preceding the
opening of the Sectional meeting.
Chairman G. J. Armstrong of the Buffalo Chapter
has his committees actively at work making arrangements
for the meeting and all indications point to
another successful meeting. Chairman Armstrong
has appointed the following committees:
Publicity Committee—Chairman, B. L. McCarthy,
O. W. Mueller, F. G. Moore. Dinner Committee—
Chairman, G. J. Armstrong, W. J. Gamble. Entertainment
and Arrangements—Chairman, O. W. Mueller,
F. B. Lounsberry, W. H. Blocksidge, D. Bell, F. G.
Brost, C. R. Pafenback, F. C. Burkardt, R. E. Sherlock.
Finance Committee—Chairman, B. Clements,
B. D. Wells. Registration Committee—Chairman, B.
L. McCarthy, W. S. Miller, F. L. Weaver.
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