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40 Forging - S tamping - Heat Treating
Under "value" the entire number of classifications
are purposely shown and it will be noticed, as explained
earlier, electric power circuit, fuel oil piping
and trays and barrels are not shown in this productive
flepartment, but are charged respectively to the electrical,
furnace and stock handling departments.
The next step is to divide the three forging department
assets into groups or production' centers.
Because of the class of our work our three types of
units are made up of steam hammer, press, foundations
and furnace; board hammer, foundation and
furnace; upsetter, foundation, motor and furnace.
There are several units charged with two furnaces
and in the case of board hammers all presses are
grouped in the cold trim department, whether physically
located there or in the board shop. Here again
the appraisers noted to which unit each press, foundations,
furnace and upsetter motor belonged, making
it easy to arrange the items together. The land,
buildings and miscellaneous equipment in these three
departments can be distributed over the groups on
percentage bases and depreciation figured in the same
manner as before. These depreciation figures per
group and per department can be used in overhead
distribution as desired, but since there has been considerable
public discussion on this point, we will be
glad to explan our system to anyone interested, as our
overhead rates contain only earned depreciation and
therefore automatically take care of irregular operation.
The results of the asset distribution as outlined
above furnish plenty of information for the ourpose
of charging different departments with expenses
which vary in accordance with asset value, but in
order to arrive at hourly interest rates per hammer
it is necessary to distribute the indirect or non-productive
departments so that the entire value may be
borne by production centers. Our steam hammers,
board hammers and upsetters constitute our producing
departments and therefore they must receive their
share of all the other departments in proportion to
availability. This distribution is obtained by what is
known as the step methods. First, the electrical department
is charged to all others on the basis of connected
horsepower. The boiler plant is divided into
one portion for manufacturing and another for heating.
The value for manufacturing is charged on the
basis of service rendered (a percentage figured out
by our engineering department on the basis of steam
used per hour by each department) and the heating
is distributed in accordance with square feet of radiation.
The remaining departments, including die and
blacksmith, are taken care of in a similar manner with
the exception of cold trim, which is charged entirely
to the board shop.
The indirect departments now shown with the
steam hammers, boards and upsetters can be charged
to their respective groups by the use of various percentages.
For instance, that portion of the electrical
department charged to upsetters can be distributed
on the basis of connected horsepower per upsetter
group, while in the steam and board shops it can be
charged on the basis of weight produced per hour per
group. After the total investment has been distributed
to the production centers the interest is figured on
the total of each group and is then divided by the
number of probable yearly hours per group. One of
our production centers made up of two hammers of
February, 1925
the same size has a total reproductive valuation of
$230,000 after complete distribution has been made as
outlined. On a single shift basis each of these machines
should run 1,550 hours per year, making 3,100
hours for the group. At 6 per cent the interest per
year is $13,800, which when divided by 3,100 hours
results in an hourly rate of $4.45 for this particular
size and type of machine. The exact multiple of this
figure to use must of course be left to the individual,
.but by comparing possible yearly sales with total investment
it will be found that 6 per cent on the investment
is equivalent to a little over one-half that per
cent on sales.
A. D. F. I. Elects President
Mr. S. 1. Marshall, president and treasurer of the
Endicott Forging & Manufacturing Company, Endicott.
X. V.. was elected president of the American
Drop Forging Institute for the ensuing year at a meeting
of the institute held at
the Seaview Country Club,
Absecon, N. J., January 6
and 7.
Mr. Marshall has been
active in the work of the institute
during the past year
and it was largely through
his efforts that the many
splendid papers presented
at the Industrial Meeting
held in Pittsburgh last October
were secured.
In 1915, Mr. Marshall organized
the Endicott Forging
& Manufacturing Company,
and for 10 years prior
S. J. Marshall t0 tHat was secretary and
treasurer of the Globe Malleable
Iron & Steel Company. He was also connected
with H. II. Franklin Manufacturing Company of Syracuse
for three and a half years.
The retiring president, Mr. M. E. Pollak, president
of the Pollak Steel Company, Cincinnati, Ohio, devoted
a great amount of effort to revive interest in
the work of the Institute, which was reorganized early
last year. That his efforts were successful is indicated
by the substantial increase in membership during
his presidency. The office of the institute is located
at 1001 Union Bank Bldg., Pittsburgh, Pa. Mr.
W. T. Johnson is secretary, Mr. Donald McKaig,
treasurer, and Mr. J. M. Wright, general counsel.
Quenching Media for Heat Treating
The Bureau of Standards, Washington, is determining
the predominating factors in aqueous quenching
solutions, so that predictions can be made as to
the solution and its concentration. Motion pictures
of samples, during actual quenching, on which regular
cooling curves are being obtained, have been taken
by using a suitable glass quenching tank. Apparatus
is now being designed and built for pressure quenching
as a means of getting increased rates of cooling
for given solutions, and for making emulsions of oil
and water without the use of air.