INDUSTRIAL PROGRESS AND HUMAN ECONOMICS By James Hartness 1921 Extra Copies On Request Address all communications relative to industries to Commissionerof Industries, Montpelier, Vermont. This book is published by private funds _Fellow Citizen_: Vermont's natural resources have been set forth in Statepublications, not adequately, but nevertheless, in wellprepared publications. Supplementing such publications this book deals with our humanresources, showing the way by which our greatest resource--humanenergy--can be most effectively employed. It uses the welfare ofman as the yardstick of measure rather than treating the subjectsunder the head of natural resources. At the present time the productive power of a day's work variesgreatly throughout the country. It reaches its highest point wherethe most efficient implements and machines are used; where thereis a high degree of special ability acquired by each executive andworkman, such as has been attained in our highly specializedmanufacturing industries, many of which may be found in ourneighboring states. The upbuilding of such organizations is onlyin its infancy. There is now a natural drift away from congestedcities to adjacent states where plants and homes may be spread outover larger areas. The personal side of this to each man is the supreme need of abetter understanding of human economics; that is, he must know thebest way to use his own energies, and since he must work incooperation with others he should also know what constitutes themost effective and successful organization. As a skilled worker, as a scientist in some branch of the work, as an executive incharge of some department, as a manager, investor or banker, hemust keenly sense the conditions on which progress is made. This book is written for the progressive young man as well as allthose directly or indirectly interested in industrial development. It is at once a text book and a reference book, for, as a workmanor executive advances he will find need of information on many ofthe points herein set forth. If the book has no immediate interest to you, please pass it alongto another. Faithfully yours, [Signature: James Hartness] _Governor_. FOREWORD. The purpose of this book is to indicate the natural way toincrease our industrial development. To accomplish this there isset forth an outline of an industrial policy. This policy relatesto procedure and methods for starting and managing industrialplants. It conforms to our economic conditions and offers the safest andeasiest course. While it is written to create more desirable industrialestablishments within the state and to increase the vitality ofthe existing plants, it is distinctly a guide for the individual, for it facilitates the progress of the man as well as that of thestate. It is a practical policy that stimulates and energizes theindustrial spirit and at the same time, directs our energies alongthe easiest road of progress in personal and state development. It sets forth certain fundamental principles that apply broadly toall activities, but specifically to manufacturing and the meansand methods that must be employed to win in the industrialconquest. To the investor it provides the best measure by which he canestimate the economic soundness and prospects of an enterprise. Itgives confidence in right projects, making money available forthings that are right, and reducing the hazard of investments byeliminating the badly or indifferently managed organizations andthose founded on unsound policies. To the men in an organization it is also of great value, for by itthey can estimate their own prospects for progress. They risk notonly their earning power but their chances for personaldevelopment. Their chances in acquisition of high degree ofability and in advance from position to position also depends uponthe policy of management and success of the enterprise. The lossof opportunity of any of these men really transcends the loss ofmoney, for it involves the loss of personal development and allthat that means. It is obvious too that the management of each organization will beof a more successful type when the entire personnel grasps theessentials of industrial development. When these essentials are understood and recognized as standardsof measure there will be less conflict between the investors andthe managers. Then it will be possible for managers and all othersto use all of their energies wholly for progressive work ratherthan using a large part of their time and energy explaining eachmove to the investors. Managers need the support and confidence of the investors. Everyday requires a firm adherence to a definite policy. Nothing lessthan the firmest determination will hold an organization to a truecourse. With a division of opinion, the natural drift is away fromthe standards on which modern success depends. Not only is itnecessary to have these principles understood by investors, butalso by all whose opinions will in any way affect the spirit ofthe men in the organization. The whole scheme, as it is set forth, is true to the fundamentalsof human economics, for it provides ways by which the energies ofmind and body are used most effectively. It brings a progressivegrowth and creates in each the greatest productive capacity. Sothat, as individuals and as a state, we will produce the greatestvalue for a given amount of labor. It is the only way by which we can compete with other states andcountries. It is the natural and inevitable way for Vermonters totravel. CONQUEST OF PEACE. Before the war Vermont and the nation were approaching a seriouseconomic crises. The war has accentuated the gravity of thesituation, but has also demonstrated certain human characteristicsthat can be enlisted to correct our course. We found during thewar that we were ready to take heroic action whenever an occasiondemanded it--that there was a solidarity of purpose of our people. This characteristic must now be invoked. We must meet theconditions that confront us by unity of public opinion and teamwork. The conditions that confront us do not involve the possibility ofimmediate invasion of our country by a hostile nation, but theycarry a burdensome penalty if we fail to take the right action. Happily we are not required to risk our lives or even work harder, but we must recognize the plain facts that we are not sharing inthe general economic progress of our neighboring states. In war the nation that wins the victory imposes a burden of tax onthe conquered nation. In the conquest of peace the victoriousnations also impose a burden on the losers. This burden is just asreal as the burden imposed by war, for in both cases the losersare paying tribute to the winners. This applies to states, tocommunities, to families and to men. The situation calls forprompt attention and concerted action by the people of our stateand country. In the conquest of peace success comes to those people who producethe greatest value with a given expenditure of energy, or, inother words, to the people who at the end of a day's, a year's ora life's work can measure their return in the largest value. Dollars constitute our measures of value for they are our mediumof exchange of our products of labor. If, to accomplish the sameresult, the man with inferior implements must work harder than theman with the best implements, it is very easy to see who has topay tribute to the other in the market where values are comparedand payment made for values. Owing to the advance that has been made both in invention ofimplements and methods and in the organization of workers, thereis now a marked difference in the value of the product of a day'swork. A study of this situation shows the supreme need of actionthat will direct our energies as individuals and as a state in away that will bring the largest value for a day's work. We must choose with care our work, our equipment and our methodsof combining our efforts. There must be team work within eachindustrial plant and each plant must be in tune with the wholecompeting world. As a people we have not lagged behind, in fact we have beenleaders in many important branches, but our enterprise has knownno state boundaries, and many of our men and women have gone toother states. Hence, while as a people we have been leaders, as astate we have been lagging behind the more active industrialstates. Vermont is very close to the most highly developed industrialcenter on the face of this globe. These centers, throughcoordination, invention and choice of work, have been able toproduce greater values per man per day. Men with the spirit ofindustry and a practical knowledge gained by experience in thesehighly developed centers go out from such centers and build upother industrial centers wherever the best opportunity appears. The nearest places to these centers are the most natural fields inwhich to start new organizations. But when no cooperating spiritis found near at hand, these carriers of industry go till theyfind better places. Many have traveled past Vermont because wewere busy in other lines and our money was being sent to otherstates for investment. Many of our own men left the town ofWindsor during the last sixty years, and from this one town therehas been built a number of important industries in other statesnotably in Massachusetts and Connecticut. It is not necessary to assume that the industrial spirit hasspread under the guidance of man or just by chance as these men ofpractical knowledge and enterprise have drifted. It may be thatthe successful new centers were merely a few of thousands ofattempts in other places. Our problem is to study the conditionsunder which these industries thrive and then see how we canestablish these conditions. In this way we will be acting in harmony with the natural drift ornatural law, if you prefer, and this is one of the purposes ofthis book. VERMONT FAVORABLY LOCATED. Our nearness to these industrial states give us an advantage overmore remote states, but it is not sufficient in itself to bringour share of industrial expansion. Nevertheless it is one of thegreatest advantages and constitutes one of the strong points onwhich we base our faith in our plan for greater industrialdevelopment. The next element to nearness to existing plants is the spirit andunderstanding of the people. Vermont has the best spirit ofindustry but has not the fullest conception of industrial life andopportunity. It is this purpose of setting forth the principles ofdesirable industrial life that constitutes the next step. When these principles are understood, we will improve the chancesfor the acquisition of local industries through the coming ofothers from nearby states or by the establishment of new plants bysome of our own people who are already well qualified to carryforward such enterprise. But whether it is brought about by theseor any other means, the basic principle on which successfulindustries are built must be known and must constitute the policyof organization and management. The principles set forth are basic. They constitute the necessaryaddition of the practical knowledge of invention, management andgeneral business knowledge gained in existing plants. Industrial life calls for the best that is found in brain, enterprise and ability and should have every possible aid andcooperation. Furthermore it should be protected from impracticalpromoters, impractical managers and obstructive theorists. It is actual work and accomplishment that counts. The workers andthose who lead and cooperate with them should not have theircombined efforts handicapped by those who have never done actualwork or who have never been performing an essential service. Indifference and misdirection are our greatest enemies in times ofpeace. These hinder our growth and if allowed to exist, willultimately lead to our becoming a subservient people. We are all ready to accept these facts but may differ as to thebest ways to use our energies. We are already making good progress in various branches ofagriculture, granite and marble work, and in various branches ofmanufacturing of wood, textiles and metal, but a direct comparisonwith our manufacturing states shows that we do not bring into thestate an adequate return for our labor. Many of our young people migrate to more remunerative kinds ofwork in other states, and as already stated some of theseVermonters have led in the creation and upbuilding of greatindustrial establishments. There are now many good chances to create new and energize ourexisting industries. Some may ask why should we consider other industries when we canfind many good opportunities in our present enterprises. Theanswer is that our people drift away to other states to get intothese industries for there they have discovered that the bestchance to produce a large value for a day's work is where bestimplements are used and where there is the best organization ofworkers. They have found that in some respects we are lagging behind in theuse of best methods and best implements. OUR PROBLEM. Without going further into the analysis of the conditions thatconfront us, it is obvious that an increase in the size and numberof desirable industries is an object worthy of our attention andefforts. We have clearly in mind that more money flowing into the statewill improve our entire economic situation. Taxes, markets, population, schools, opportunities for Vermonters and generalimprovement in all values and interests. The next thing to do is to get an industrial policy that willguide us in our course as individuals, managers, engineers, manufacturers, investors, progressive workers and as citizens. Theidea must precede action and the action must precede results. Thetrue idea will bring results of like character, hence the need ofthe fullest knowledge on which to form the idea. A simple outline of a desirable industry may be drawn through thefollowing points: First: An ideal industry is an organization in which the energiesof mind and body are most effectively employed. Second: Since man is something more than a physical body, his workmust be one in which he feels an interest and satisfaction. Third: Since there are various kinds of implements to aid man inhis work, a successful organization should use the most effectivetype. Fourth: Since man is a creature of habit and functions mosteffectively when he has acquired skill through experience, eachone in the workshop and office should be experienced in hisparticular branch of the work. Fifth: Since the high skill of men is attained through repetitionof operations, the management must subdivide the work into classesin which each man can become highly proficient. Sixth: Just as there is an individual skill and ability acquiredby the individual, so there must be a group skill built up. Thegroup skill is acquired by the coordination of the energies of allthe workers so that the work flows naturally and evenly fromworker to worker with the minimum hindrance. This coordinationtakes place naturally through experience. It only needs commonsense supervision and a protection of the workers from theimpractical interference of faddists. HAVE FAITH IN VERMONT. Travelers through the west, particularly on the coast statesbring back the story of optimism that seems to be characteristicof the enterprising people who migrated west in the early days. This spirit of optimism is not found in all parts of our country, and yet it is of high value. In New England for instance, in eachstate there is a state pride, but perhaps not to the extent thatwe find in the larger cities and in the west. Here we are moreinterested in the success of our various branches of activities. Vermonters have been notably free to go beyond state boundaries inthe acquisition of trade or profession and in practice, butoptimism, which is the parent of enterprise, has an excellentchance for existing in our state. The early history of industrial development shows it followedalong the avenues of transportation--seaports and lakeports andrailways. With the railways the industries spread to other states, notably Ohio, Indiana, Illinois and Michigan. Now there is settingin a readjustment and the time is ripe for Vermonters to use someof their spirit of enterprise within the boundaries of the oldstate. Goods may be shipped to the best market from the top of ourhighest mountain at lower cost than it could be shipped from someremote competitors. There is every angle favorable except the fullknowledge of the situation and the elements on which industrialsuccess can now be achieved. The coming and use of machinery has been a most potent force indetermining the economic rating of city and state, and it is inthis respect that Vermont has now its great opportunity, and it isin the field in which invention, the use of machinery, the rightmethods of building up an effective group of workers that there isthe surest reward for the energy put forth by investors, organizers and workers. If you have grasped these facts; continue to study the elements ofthe plan; fit yourself as an experienced worker or executive insome branch of the work; see that the scheme of work is one thatcan successfully compete with other producers; then put your wholeself into the work. If you wish to get the plan into your own consciousness andaction, tell it to others. Become a practical booster of the plan. It fits the future. It fits today. Be a Booster. It is right. It pays. OUR INDUSTRIAL POLICY. We must endeavor to establish desirable industries. The mostdesirable industries are those in which there is an opportunityfor development of all the workers and a chance for the greatestnumber to find the best opportunity to acquire special skill andspecial ability. In such industries there should be the open doorof progress so that those who are qualified for advancement can goforward from position to position with no barrier other than theirown mental or physical limitations. Special ability, skill and team work are only acquired by longspecialized practice. These qualities constitute the most valuableassets on which to create a new concern. Very elaborate systems have been designed for controlling the flowof the work through the plant and the division of the variousactivities between men and departments, but the real effectivecoordination must grow out of the actual working conditions of theworkers. This natural evolution of the group's effectiveness as asingle organization is one of greatest importance. The impracticaltheorist coming into an old plant will start in at once torearrange the order of things irrespective of both the grouphabit-action and the habit-action of each man. Changes must be most sparingly made, with the full knowledge thatanything that interferes with the habit-action of the workers is aserious hindrance. All people concerned, whether as executives inthe industry, or as investors, must remember that in a growingindustry, individual skill as well as group skill of the wholeorganization greatly improves with continued action. Under theprocess of continued action the average man can make a fairshowing and with a reasonable degree of moral support will makegood, while without it the ablest man will have a hard time andeven fail if he is forced to accept changes that disturbcontinuity of action. The management must conform to the best world practice inengineering, industrial life, individual welfare and economics. Itmust have every element of organization kept in best condition. The spirit of the group is of great importance, for theorganization goes forward on the congenial nature of each man'sprofession or work. Each man's energies, both mental and physical, must be employed constructively with the minimum disturbance. Hisenergies must be concentrated on his own particular work. Thisconcentration applies to all workers and executives. This plan isbased on the fact that, through continuity of attention andapplication to a given work, man acquires a special aptitude. Italso recognizes that each man on the face of the earth, from thetramp along the railroad to the most highly developed scientistand executive, has a special knowledge and special ability that hehas acquired by experience. It is needless to say that in competition with the whole worldthere must be alertness every day in the guidance of details ofmechanism and business, and that it is not by the gatheringtogether of a group of men at the end of the year or even once amonth or once a week that business can be effectively managed; itis a continued application to the work every day and every hourthat counts. There should be no absentee management. The men who manage must bein close touch with the work and the workers--not merely throughwritten or oral reports, but by actual observation. Travel, study and observation of other connections and work arenecessary, but the home must be with the industrial plant and thatmust be the prime interest. LIMITATIONS OF MAN'S PROGRESS. It is not contemplated that all men will become managers oroffice men. Such positions are not of a kind that is satisfactoryto many of our ablest men. Some are happiest in work in which theyacquire great skill. They are disturbed and made uncomfortablewhen required to solve mental problems. Some of the greatestachievements have been wrought by such men, who have been highlyhonored in the past and such men will have more recognition astime goes on, for we are coming to understand the fact that wemust depend on such men for special ability in the form of skill, whether it is in the surgery, mechanics, art or any other branchor division of work or the professions. Such men are not talkersand do not force themselves into spectacular positions. To saythat there is no progress for the surgeon if he cannot becomemanager of the hospital, nor for the skilled worker if he cannotbecome manager of the industrial plant, would not be in keepingwith facts for we know that such men have made the greatestcontribution to the world's welfare. This plan of individual progress should not be disturbing to theworker who has come to a standstill. It is the ideal toward whichwe must work. It can never be wholly attained, but such a policywill make a vast difference with the prospects of all workers andin the success of industrial organizations. PROTECT THE INDUSTRIAL SPIRIT. Industries and the workers should be protected from incompetentmanagers, investigators and impractical theorists. Industries and the workers go forward by actual work, not onmanipulation of stocks, bonds, laws and schemes to wreck or boostfor temporary gain of some one interest. In general it is safe to have faith in the honesty of the workersand those who cooperate with them--at least we can start with theassumption that honesty and square dealing are not monopolized byother professions. If we will remember that an industry has a vitality the same as aman, that its life can be destroyed by an ignorant investigatorwith a probe poking into every nerve and muscle, we will makeVermont a more natural place for industrial development andprogress. The attitude of the workers and the general public should becordial instead of antagonistic for every desirable industry is anasset of great value. In theory and law an industry belongs to the stockholders, atleast it is for the stockholders to elect the board of directorswho through practical officers manage the business; but, as amatter of actual fact, to the man who has the best job in theworld for himself right in that organization, the life of theorganization is of greater importance than it is to any one of thestockholders. In the same sense the existence of the industry isof greater value to many others in the organization and in thecommunity than it is to the stockholders. Hence, anything that interferes with the success of theorganization injures many people. WHAT IS NOT AN INDUSTRY. Perhaps it will be well to state first what does not constitutean industry. Power, transportation facilities, fine buildings, fine machinery and a group of skilled workmen, a complete officestaff and an elaborate system of fad management do not constitutean industry. Such an aggregation might be likened to a cargo shipall ready for service excepting that it lacks a captain andnavigating officer and some one to determine what kind of a cargoto take, where to go and how to get there. The greatest value of an industrial plant that has everything buta work to do and a leader to determine its major policies, lies inthe skilled workers and able executives in work and office. Thebuildings and machinery come next in value, but the whole thing isworthless without the idea and the vision. "DEAD" ORGANIZATIONS. In all cities we can see "dead" organizations. Many of thesecompanies that are actually "dead" seem to have life in thembecause they continue to move, but in many instances the motion isonly due to the momentum of a push that was given years ago. A "dead" organization may show signs of life in its gradual growthin size, but its real character is to be seen in the extent towhich it is departing from specialization or by the continued useof antiquated methods and buildings. The departure from specialization is generally due to either lackof courage to discard obsolete designs or to an inclination toconsider the business from the selling end only. It takes courage to discard an old model and it also takes courageto refuse to build some new invention. The indifferent management carries the old and takes on the new. This policy covering many years creates a condition that is farremoved from the specialization plan. The management that views everything from the selling side of thebusiness is also inclined to go on indefinitely increasing theline of goods manufactured. The drift away from specialization may not be disasters today ortomorrow, especially, if there are no competitors who arespecialists, but the inevitable result will be the burial of the"dead" organization when a real competitor comes into the field. The calamity of the existence of "dead" industrial organizationsis something more than the ultimate loss to the stockholders, itis the deplorable stagnation in which the workers find themselveswith their progress blocked by lifeless management. SOME INDUSTRIAL HOWS, WHYS AND WHATS. How groups of men achieve the highest results in expenditure ofgiven energy. What is necessary to establish such conditions. What are the most desirable opportunities. What are desirable industries. Why the need of building up habit-action. How a group of men, through team work, acquires a group habit- action bywhich their product greatly exceeds the product of the same number ofmen working without cooperation. How the individual ability and skill, as well as the group abilityand skill is only to be acquired by repetition that establisheshabit-action. Why repetition of operation is essential to acquisition of skilland special ability. What are the boundaries that divide the Jack of all Trades, thespecialist and the victim of an overdose of repetition work. Why industrial managers should know the cardinal principles ofinvention, of industrial engineering, industrial management, industrial relations and the human factor in engineering and inthe industries. Why a plant may be growing in size and paying dividends and maystill be dead so far as the spirit of enterprise is concerned. Why some men try to manage industrial plants regardless of thecardinal principles of progress of workers and the state. Why the ideal conditions for the workers and executives can onlybe found in an industrial establishment that can successfullycompete with others. These "whys", "whos" and "whats" are of importance to all andsuggest a line of thought and interest in this industrialdiscussion. NEW INDUSTRIES. The first men to function in the creation of new industries arethose who are already well grounded by long experience in somespecial form of industry. The new organizations must have men wellqualified to direct each of its branches. In general it may be stated that a new organization must startwith a superior article to manufacture and the elements of asuperior organization. Sometimes it is possible by invention aloneto win without the aid of the modern plan of specializedorganization. On the other hand, the success may be attained bysuperior organization without a superior article to manufacture, but in general it is better to combine all of the possiblebeneficial factors in a new organization. Organizers should know the market possibilities. If possible, theproduct should be sold directly to the user. The contact with theultimate user is of supreme importance in the development of theinvention and the organization. In dealing through a sellingagency the manufacturer is not in control of the whole business. The selling agent dictates the policy of the whole business. Hedictates the policy of the manufacturing plant from the sellingagent's needs and that seldom fits the manufacturing conditions. The selling department generally demands many changes in productand wide range of articles of manufacture, while the manufacturingconditions require that special skill and ability that can only bedeveloped by continuity of action of a given kind, and thisrestricts the range of produce. If the head or one of the heads of a proposed organization knowsthe market condition and knows what can be done in the sale of anew article, then the question of invention and manufacture can besafely left to those who have been well grounded in suchprinciples. That leaves only the question of the financialarrangements. The method of forming a stock company under the laws of Vermont isvery simple and people are generally well disposed to invest inthe stock of the new company providing the men at the head areknown to be competent--the inventor as an inventor, the businessman as a business man and so on all the way through. The standardsof measure of each one of the men and the standards of measure ofconducting the business are set forth in other chapters. At thistime it is sufficient to say that getting the capital is theeasiest part of the job. The real work is the preliminary work ofacquiring experience and devising plans. A plan to create a new industry does not call for disloyalty tothe employer, for as a rule it is very foolish to attempt tocompete with an established organization excepting on somebusiness that gives the new organization an advantage by one ormore of the following points: invention, simpler product, simplermethods, a higher degree of specialization, a more effective anddirect scheme of sales or a better spirit of personnel. One of the essential things for the business man--if the businessman is not the inventor--is to grasp the fact that his success istied up to the inventor. The inventor is needed in the developmentall the way through, not only in guiding the form of themanufactured article, but in a large degree by dictating theprocess by which the article is to be manufactured. The inventorusually needs curbing to keep him from disturbing his own marketby the creation of newer forms, but these matters are treatedunder the chapter of invention. The principle element to set forth now is that it is a waste oftime and money for a few business men to buy a patent or aninvention and then dispense with the service of the inventor. Theyare merely going to sea without a navigator. On the other hand itis equally true that the inventor must consider the business sideof the problem and do all in his power to devise effective meansto facilitate the process of manufacturing. The point to be made here is that there is no chance to win inthis game by sharp practice. It is only through work and thecombined work and energy of all the men in the organization thatanyone can win. INVENTOR'S PROPORTION. In the machine tool industries, one-third of the interest in theplant is given to the inventor. This, to the average investorappears to be an unfair proportion, but it is one of those casesin which the broadest vision is necessary, and a glance at theearning power of such organizations as well as the prestige of theinventions, will bear out the wisdom of the general plan insimilar industries. The plan, however, should not be considered as something thatboosts only one man or one group of men. If there is any attemptto exploit labor, the plan is wrong. The scheme must befundamentally right so that each man coming into the workshop orthe office of business finds there his best opportunity to developand receive his best return for the use of his energies. It is hoped that succeeding chapters will build up confidence inthe scheme that will make it possible for men to see the way toprogress in this line, to have faith in each other and to knowthat their ultimate success will come through a spirit ofcooperation, concentration of attention and energies of each manto his own special work so as to attain highest ability and lastbut not least, the complete coordination of all in one safe, saneindustrious organization. MANUFACTURERS AND NEW INDUSTRIES. One of the forces that operates against increase in the number ofindustrial establishments is the fact that we do not realize theneed of human progress in our plants. Men should progress from jobto job until they reach their best achievement. Some gain theirgreatest success in some manual work in which they acquire greatskill and others go on to executive positions and even graduate tojoin other organizations or to start new industries. We fail to see this fundamental law regarding the growth of themanufacturing organization, and seldom realize the prime necessityof the fundamental law relating to specialization. We overlook thefact that stagnation in place of progress of the men in the plantis deadly to the organization, and feel that if we get anextra-efficient man in a certain position that he must be kept thereregardless of his own opportunity for advancement. We fail to realizethat progress all the way through the organization, should beencouraged--that while man is distinctly a creature of habit, his mindas well as his body must be considered, and that only by changes of aprogressive nature does he develop most favorably. Too often a manufacturer is opposed to the creation of otherorganizations by men from his own organization, when, as a matterof fact, it would be a great deal better for his own institutionif he would encourage the growth of other plants that can becreated by his own men. HABIT ACTION, BASIS OF SKILL AND PROFICIENCY. We have many text books on the subject of industrial finance, ofengineering, of invention, of industrial management, and all thesebooks are written on the assumption that the human being knows hisown kind. A study of our failures seems to reveal, however, thatwe have misunderstood the human being. For instance, while we know that skill and experience isinvaluable, we make our mistake by underrating its value, or toooften we limit its application to the hand worker. We say thatskill of the pianist, the surgeon, the workman must be acquired bypractice. We know that in many trades a workman must spend three, four or more years as an apprentice, and at least the same numberof years is necessary of actual specialized practice in almost anydepartment of work, but we overlook the fact that that specialskill or that special ability on which modern success is basedmust be acquired under certain conditions. The oriole builds a nest unlike the robin's nest. Each isqualified in its own work. We know that these birds would besorely handicapped, and would probably be downright failures inproviding nests in season for eggs, if each were required to workto plans and specifications of the other bird's nest. Our fundamental error in understanding our own kind seems to liein the fact that we fail to recognize that man is a creature ofhabit to an extent not quite equal to that of the lower animals, but nevertheless to a degree that positively stands in the way ofany man who tries to create or manage an industry without givingdue value to this one element. Another way to say all this is that we must recognize experienceis necessary--experience not only for the worker but for each onein the organization. The effect of this characteristic of habit action is so profoundthat any disturbance in a plant due to changing the position ofbenches or machinery or changing the character of the worksorely interferes with man's efficiency. On account of thischaracteristic the degree to which man's energies are mosteffectively employed goes in direct proportion to the degree inwhich there is a minimum of changes in the character of the work. The importance of this will be realized when we consider thequestion of competition, for that, in the last analysis, constitutes the measure of success. Now, if we extend the plan of acquisition of special ability toembrace men in office as well as in the workshop we have coveredthe whole subject and have said nothing more than that it isnecessary for all men in the office as well as in the workshop tohave a special ability that has been acquired by experience. If it is as simple as this, why the need of saying it? The need isbrought about by the painful fact that one of the characteristicsof habit action is to continue on without change even after themind has apparently recognized that a change should be made. Success comes not from the mere _word_ knowledge of thesethings, but through action. SPECIALIZATION. Of the many elements on which industrial development depends, thequestion of specialization looms large. Under the general term "specialization" we include all plans andmethods of work by which the scope of activity of man isconcentrated. The highest degree of skill of artist or worker is attained byconcentration of energies to a restricted range of work. It isthrough practice that the skill is acquired. The highest skill andhighest ability is attained by the degree of interested attentionand number of repetitions of a given kind of work. Other things being equal, the practice, combined with keenness ofinterest, makes the most successful man in a given profession orwork. Repetition of operation becomes an automatic (habit) action inwhich man accomplishes the most work for a given expenditure ofenergy. These two results--proficiency and easy performance--are ofgreatest value, but repetition of action, like nearly all goodthings, is not without its drawbacks. An overdose of one kind ofwork with a limited range of action frequently leads to dullingthe senses. This stultifying effect produces a most undesirableresult. The harm begins when there is a loss of interest in thework, for it is through the interest that the progress is made. The dividing line between the good and bad results varies withdifferent types of men. The simplest tasks may become of intense interest to the scientistand he may achieve great success in a work that to others seemsmonotonous drudgery. But with all its drawbacks it still is thebest way for man to work and while we must labor to eliminate thecondition of drudgery, we must face the plain fact thatcompetition between men, industries, states and nations makes itabsolutely necessary to specialize. Specialization by the men and groups of men will determine thequestion of superiority of advance in science, industry, commerce, general wealth and welfare, as well as military strength in thetime of war. While we have clearly before us the degrading effects ofrepetition of distasteful tasks; we must not ignore the otherextreme. The opposite condition is the employment of energies of mind andbody in ways that cannot produce high degree of ability. With suchdesultory use of energies, a day's work is of relatively smallvalue, and there is no progress. Of the two extremes we find the most prevalent to be thescatter-brain and scatter ability type. The industries of the higher type lead in providing the bestimplements and in organization of best team work by which eachworker produces the greatest value for a given expenditure ofenergy. The essential bearing Of these facts is that the worker as well asthe business man should compare his work with the work of otherswith whom he is in competition. In these days of long distance transportation our competitors inthe market may be a long distance away. If it is in agriculture, the question of climate, soil and degreeto which highly efficient implements can be used, are importantfactors. If it is in the professions we must see how we can acquire thegreatest proficiency and opportunity. This again involves thequestion of the extent to which we must specialize. The measure then of success is the value of our services ascompared with the services of others. One of the important problems in industrial management is theextent to which specialization should be practiced. On one hand we see the ill effects of a routine repetition wherethere has been an overdose of repetition--one that has gone beyondthe beneficial point--and on the other hand, we find that thegreatest achievements in the sciences and professions have beenwrought by those who have concentrated in a way that has giventhem a higher development. Unfortunately in many of theindustries, the development of machinery has gone forward with thesole end in view of dollars and cents, disregarding the effect onthe worker. This is to be found in some of the industries in which originallythere was an opportunity for the worker to have a keen interest inhis work. Mention is made of this situation as it comes about withcertain stages of development of the manufacturing processes. Itis unfortunate and something that the engineers and managersshould endeavor to eliminate. We have very few of such industries in Vermont; they can broadlybe classed as undesirable industries. The fact that there are suchindustries should not in itself drive us from the scheme ofworking by which men specialize. We should, however, see to itthat the degree of repetition of operation goes only to thebeneficial extent. Our greatest trouble in Vermont has been thewasteful scattering of each man's energies over a variety oftasks. Competition with the outer world makes it absolutely necessarythat we use our energies in the most effective manner; that mosteffective manner is the one by which through repetition andexperience we acquire skill and ability. The important matter todecide is the degree to which we can specialize. This degreevaries with the work and the individual. To an alert and activementality routine work becomes drudgery, while to the oppositetype, mental work is annoying. In an industry, men gradually fitin with the most suitable work. Each man's job should be one thatis best for him. Nothing has been said thus far regarding the invention of newforms of articles to manufacture, or of new methods of machineryfor manufacturing articles. These elements and many others arenecessary in order to complete a successful plant, but thefundamentals embraced in a statement regarding the habit-action ofman represented by special ability and skill acquired byexperience, and the habit-action of the group acquired in the sameway, constitutes a measure in determining the way at ninety percent of the cross roads in industrial progress. Anyone undertakingthe creation of a new organization or the management of a goingconcern must grasp these facts. The value of experience, if acquired in an industry where suchfundamental principles have been recognized, should be given thehighest rating. Experience, however, in an industry where theenergies of men were not most effectively employed and where therewas not a recognition that the effective employment of man'senergies require a general development of mind and body up to theman's capacity, cannot be counted as wholly good unless, throughforce of purpose, there is the strength to adopt a new path. [Footnote]INDUSTRIAL MANAGEMENT. [Footnote text: A revision of material originally under title ofHuman Factor in Works Management by James Hartness, published byMcGraw-Hill Publishing Co. , New York. ] The navigator in preparing for a voyage carefully examines each ofhis instruments. He must know the present error of his chronometerand its rate of change, and its general reliability as indicatedby its past record. He must also know errors in his compasses foreach point, and he should have the fullest information regardingthe degree of reliability of every other means on which hissuccess depends; and, last but not least, he must accuratelydetermine his starting-point or point of departure. In taking up the subject before us we will do well to follow hisexample. In doing so, our task will be to examine two principal elements:one, the means on which we depend for interpreting the informationthat is available; and the other, the source and character of theinformation. The means may be considered analogous to the navigator'sinstruments, and is no less a thing than the brain or mentalmachinery; and the information is simply the world about us asseen in the existing things, such as machinery, methods, popularnotions, textbooks, etc. , all of which may be classed asenvironments, and may be considered as analogous to the charts andother publications of our worthy example. Like the mariner, we must determine the degree of reliability ofall these sources of information and our means for interpretingobserved facts. When we have ascertained this we will know what allowance to makefrom the "observed" to get the actual facts. With this knowledgewe will be able to accurately determine both our starting-pointand best course. The importance of considering our own minds will be seen when werealize that every new fact taken in must in a measure conform tothe previous ideas. If some of these old ideas are erroneous, themind must be more or less ready to discard them. It is verydifficult to dislodge deep-seated convictions. Contradictory ideasare not assimilated. Only one of them is actually accepted. Evenwhen to the objective reasoning they seem false, they frequentlycontinue to control our actions. Since we are loaded with the popular ideas which we have absorbedfrom our environment, it will be well for us to begin bycritically examining our environment and the process by whichideas have been taken in. This may enable us to put out some ofthe erroneous views, and perhaps more firmly fix the true ideas;thereby preparing the mind for a more ready acceptance of whatotherwise would be barred out as contradictory. We shall not go deeply into the psychology of the subject, as itwill not be necessary to go contrary to or beyond the well-knownfacts. We shall not try to locate the man or refer to him as the ego orinner man. We shall simply say that we know that we can use ourbrains to think on any subject, and we can use our senses tocollect information regarding any chosen subject. Our senses and mental faculties can be directed to consider oneelement in a business, and for the moment be unmindful of the manyother elements. In other words, we can to a certain extent manageour mental processes. Just as a horse can be managed, so may wemanage our brains. A driver may carefully control the expenditureof energy and the course traveled, or he may throw the reins overthe dash and allow the horse to go his own gait and route. In thesame way we may manage or mismanage our brains. Good Results with Moderate Effort. A faster pace will not be advocated, for the present gait isoverstrenuous. We hope, however, to point out a way by which goodresults may be obtained with, moderate effort. If, in the past, the brain has been found wanting, we should notlose confidence in its reliability until we have seen how it hasbeen managed. Under some conditions its interpretations are absolutely correct;in fact, under all conditions that would be called fair in testingother kinds of mechanism. Unfortunately, these conditions have not always existed. Opinionsregarding important matters have been formed when accuratementation has been impossible. Physical Condition of Worker. If the use of the machine induces either an adverse mentalattitude or physical condition of the worker, it will sooner orlater be adverse to the economic success of the machine. We have indicated some of the problems and have suggested thewell-known method of mental control for this purpose. A keenobserver of men and machinery may not require as much of theso-called practical experience; another may need many years ofactual work. The practical experience in the various departments of machineconstruction, its sale and its use, is undoubtedly almostabsolutely necessary for the average man in this work. Its value is primarily to give an opportunity to see things inactual operation. The shop affords an opportunity to see how amachine stands up to its work, where it is weak, and a thousandand one points that can best be seen in actual operation. Butthere is still another phase that is comprehended more readily bythe practical experience, and this applies to the variousdepartments of business as well as to the works. It is theknowledge of the men and their mental make-up and attitude. A keen observer soon realizes that successful life in themachinery world will not come easily to any one who lacks a goodunderstanding of others in the field. Capacity for New Ideas. The assimilating capacity of the industrial world is the realgauge of the progress which should be indulged in. This capacityto take in new ideas and to work by new methods is not the same inall beings, and it is not the same in all organizations. There areways by which it may be measurably increased. New views are morereadily digestible if presented by enthusiastic advocates, as thisstimulates an interest. Any attempt to forcibly inject new ideasonly results in indigestion. The assimilating capacity of an industrial organization can begreatly increased by any scheme that awakens an interest. Thecontrolling policies should include advance in efficiency andgenerally in the quality of work turned out, but this advanceshould not involve a break in the output. It mould be based on aknowledge of the whole business. In other words, it should notonly pay in the long run, but if possible it should pay from themoment it goes into effect. We have said that all changes should be of the digestible kind, and the feeding process should not be a stuffing process; that theingestion should not exceed the digestion. We have also brieflymentioned the importance of keeping the digestion tuned up to thebest speed by having the organization in a condition to mostreadily take in changes. That we must make some allowance for inertia of thought and habitin all mortals goes without saying, but the exact amount to beallowed is very difficult to estimate. Successful management depends on the degree with which a man canestimate the receptivity of other beings with whom he deals. Thisknowledge of receptivity should include the thought and action ofmen all the way from the unskilled worker to the directors, andalso that of all men in other organizations in any way affected byhis organization. Just as food is more digestible if agreeable to the palate, sothis receptivity or assimilating power may be increased bypresenting new ideas and methods in agreeable form. A fullrealization of the effect of this inertia of thought and habitmakes the great efficiency of specialization more comprehensible. It is this human side that is the key, and if we do not act infull accord with it we will probably be working against a greathandicap. The inertia works two ways. It hurts a progressive man just asmuch to be tied to a work that requires no brainwork as it hurts asleepy member to be disturbed by progressive talk. Money not the Only Dividend. The major policies of management that should be known to theinventor are those which have been adopted to make the businesspay. Not necessarily to pay in dollars and cents today, but to payin every sense, and in the long run, in dollars and in otherthings. It cannot pay in dollars if the other things are missing. By otherthings are meant good organization built on best conditions ofmind and body for each of the beings included in the organization. On such things the stability of the organization depends. No matter how much the manager of a business may wish to run itfor other things exclusively, or for dollars exclusively, he willfind that one is not attained without the other. He is forced torun a business for the dollar if he wishes to make an idealorganization for each member of the human family included in it. And vice versa, he must work toward best conditions for all theworkers if he wishes to protect the capital invested by making astable and fairly long-lived organization. This statement is inserted here to clear away doubts as to thereal value or necessity of "making a business pay, " and to make itclear that no thought is to be tolerated of any scheme ofmanagement adverse to the real interest of the workers. The men selected for each of the various positions should be menwho are fitted to fill these very positions. This does not meanmere physical and mental fitness; it means each position should befilled by one who wants it, one who knows he is "better off" in itthan in any other place he can find. Dissatisfied men are burdens. It is better to have each position filled by a man who is barelycompetent to fill it than to have it filled by a man who shouldhave a much better position. Of course, this is the ideal, and all moves should be made in thisdirection whenever it is possible. As a rule, it is easier to findmen on this basis than to find men who are bigger than the office. This scheme leads to more promotions in the organization and has astimulating effect on all concerned. Right Placing of Men. The management's chief business should be to take man as he isfound on earth and place each one where he will accomplish thebest results for both the organization and himself. Barring the disgruntled, the uncongenial and the habituallyinattentive, almost all men may be and should be profitablyemployed, the prime requisite being reasonably close attention tobusiness. The thoughts must not habitually wander away from thework. Intrigue disappears when the management quits looking for it, andassures everybody, by the general method of conducting thebusiness, that there will be no chance to oust this or that man. That each man will be retained in his place if he will but givereasonable application to the general interest of the organizationand the particular work of his office. The management does not "manage" if it perpetually changes itsmen. It should bolster up the man who lacks self-confidence; itshould puncture false ambitions, and it should use men as they arefound in the organization. It should not be inclined to "go backon" a man who has blundered or who has been found lacking inunderstanding. It should not be over-ready to embrace a stranger just because hisfaults are not known. The financial hazard of a business enterprise is greatly minimizedby using men as they are found, and properly placing them at workor in offices for which they are qualified. Unimportant Details. We can neither regulate the complexity of our environment nor thenumber of problems which we must settle within a given time. But we can improve the conditions very much by avoidingoverconcentration on unimportant details. The brain's best timeand energy should be reserved for our own immediate problems; itshould not be hampered by details of others. The various officers of an industrial organization should know theins and outs of the thinking machine on which they depend forguidance. With such knowledge each brain will give the greatestresults, and without such knowledge the best brain may beuntrustworthy. One of the important characteristics of the mind is its tendencyto lose sight of everything except the subject in mind. One dangeris dodged by jumping into another which we have not seen. Bothdangers were plainly in sight to any one who had not concentratedon one of them. In the regular every-day business life, we seem to have ample timeto consider each problem. But in reality our great length of timeis offset by a great number of elements to consider, and a moreprofound effect of long continued teaching or molding of ourenvironment. For years engineers have concentrated energies on the steam-engineof the reciprocating type. The master-minds have made importantimprovements in the design, and many have given up their entireexistence to the science of analyzing the effects of eachvariation in conditions of working the steam. Our textbooks, our teaching, our observation all concentrated ourattention on this type. For some reason Gustav deLaval, followed by C. A. Parsons andNikola Tesla, broke away from this spell, and we have the steamturbine engine. These individuals are endowed with master-minds, but the task of producing the turbines was probably no greaterthan the task of others in improving the reciprocating type. In one case a great step has been taken. In the other, we have anexample of men of undoubted ability laboring hard for entirelifetimes with relatively small gain. This example applies to more than the inventors' world. It hasmany parallels in the cold business management of a manufactoryand in any one of its departments. Business management requiresthe same kind of reasoning and getting away from the spell ofenvironment. But this phase we shall consider later under anotherhead. The point to be brought out here is the effect of the spell ofenvironment in magnifying the importance of existing views andmethods, and the deceptive part this trusty brain plays in bindingus to unnecessarily hard work. Cure for Mind Wandering. The mind should not be allowed to wander, for wander it will if itis not rationally directed. It should be furnished with someinterest, either in the form of study that is taken up out ofworking hours, and which can be permitted to occupy the mind whilework of the habit kind is being done, or, if it is not a study, there should be some wholesome interest or pleasure. Music to some furnishes this need. Music heard in the home orelsewhere will sometimes occupy the mind during working hours whenthe work is of a monotonous character. In some instances music hasbeen provided during a certain part of the day, just for this needof workers who are employed in an occupation that in itselffurnishes no mental nourishment. But these extreme cases do not represent the vast majority. Theyapply only to the needs of the mind of those engaged in a work inwhich they can awaken no interest. Nearly all kinds of work offera chance for the average man to get interested directly in thework itself. Such an interest soon bears fruit in the results aswell as in the comfort of the worker, and it is this phase onwhich we must depend for making specialization comfortable andprofitable to the worker. It is this phase that is whollyoverlooked by those mentioned above who have seen or felt the joyof work that comes to one who rambles into a new field. We fail tosee that the same kind of mental pleasure may be obtained whileworking along the natural and efficient lines of habit, and thatin one case we have had pleasure at great expense of wastedenergy, and in the other case we may have made a true progress forourselves and others by moving along the rational way. The Manager's View. The important duty of weighing up these various views devolves onthe management, and its action should be in accordance with thecomplete and corrected view. It must consider the subject from atop viewpoint, and must then act. The manager keeps in mind that the machines must be built, purchased, and used by human beings, so he carefully studies theirpeculiarities. He knows that change of thought or habit requirestime. In looking over the history of one of the companies engaged inmachine building, we find that the cost of the labor has beenlowered to about one-fifth of the original. In view of this andthe fact that a very slight change in model sometimes involves atemporary increase in the cost of labor three-fold or more, we seegood reason for reluctance in making changes, even though we knowthat two or three years later the labor cost may drop as low asthat previous to the change in model. The inventor, the promoter, the salesman, and the oversanguinemanager do not always foresee such things. The manager sees the enthusiasm with which the sellingorganization hails the new model. He realizes that they know thefaults of the previous type, and he also knows that no one knowsthe faults of the new, but he lets it go. Some enthusiasm must behad, even if it be dearly purchased. He knows there will be many atroublesome delay due to the newness, even if the whole schemeproves very much better than the previous type. This manager knows that his business success rests on the facilitywith which the machines are satisfactorily built, the readiness ofthe buyers, and, last but not least, the facility with which theproduct is used. The facility with which the product will be used, to his mind, is almost beyond overestimation. Sub-division of Work. The division of work into separate operations makes it possible todivide the subject into relatively small sub-problems. Thisdivision of the subject itself brings it within the capacity ofthe lesser brains and makes it very much easier for a brain ofgreater power. In other words, the subdivision of work makesplaces in which all mental equipments may be used. It is of no benefit to any one to keep the problems difficult bymaking each man think out a process for accomplishing each one ofa great variety of operations, when the work may be so dividedthat it is only necessary for him to think of just one little partof the whole. And we should not befog the issue by saying thatthis is degrading. Some of the greatest scientists that the world has known haveconcentrated attention to the smallest conceivable part of thisworld, pieces so small that the microscope alone revealed them tothe eye. There is a chance for the thinker in most any of theseplaces that have grown out of this process of finest subdivisionof work. The hardship comes only when the mind cannot getinterested in the work. In many cases this is undoubtedly due to amisfit, but in most cases it seems to be due to a false notionthat there is nothing there of interest. The subdivision of work must go on. If hindered in any one plant, industry or nation more than in others, the result will be a lossto that one, and on the other hand, the one that carries it to themost efficient point will become the most powerful. This subdivision develops greatest dexterity and skill, as well asthe keenest comprehension of the ways and means of attaining agiven end. And this dexterity of operation is more easily carriedon than is the fumbling uncertainty of the work of the moreprimitive type. Care in Applying New Theories. The manual worker's energies are so absorbed in the physical tasksthat he is annoyed by any suggestion to change his method. If hewere given the position at a desk he would probably be interestedin the progressive schemes for betterment of methods of work ormanagement of business. Bearing this state of affairs in mind, it behooves the progressiveman to approach the problem of applying his theories in a verycareful manner. He must realize that the men in various parts ofthe work are under stress of every day's requirements that makesit very difficult to intelligently take up any new scheme ofprocedure. Many an ideal doctrine is a beautiful thing in theorybut of little value if its introduction requires an immense butunavailable energy to put it into practise. He must realize that it is the doing of work that counts and thatthe men who are doing things must not be annoyed. All plans forbetterment must conform to the assimilating power of the men andmust not cut off their food in time of change. In other words, thenew plans should be so matched on to the old methods that thechange to the new will not interrupt the production. We have seen that the most efficient way to use man's energies isto allow him to follow habit lines of thought and action, and thatthe highest efficiency is reached when these habits are habits ofconcentration of attention and are restricted to the smallestvariety of work. Progressive Energy. Progressive energy is so valuable that it needs no praise at thistime. We have had its value stated so often that it is actuallyover-rated in the average mind. Not that it has been over-valued, but that the reiteration has obscured the importance of otherqualities. There should be a greater appreciation of the value ofenergies that are wholly employed in accomplishing results by oldmeans and methods. Progressive energy, when it is kept within certain bounds, is aprime asset of an industrial organization. It is like a wholesomeamount of labor to man; it may be drawn upon without loss, and itsuse actually strengthens its source. But when it is not wiselykept in control it only annoys and interferes with real progressand real accomplishment of results. The only way to get work done is to let the worker move alonghabit lines. The only way to progress efficiently is to make thenew ways and means lead off gradually from those in use. The progressive man who actually directs work along such lines isthe most valuable to the world. The one who ignores the "moment ofinertia" is a disturber, whether he is a director or a "hewer ofwood and carrier of water". The man who is doing the real work in the world is not theso-called progressive. He is one who points out newer or bettermethods which may be easily established by a gradual exchange ofold habits for new ones. Profit by Experience. In considering ways and means for efficient management ofindustrial organizations, it is not necessary to commence at thebeginning of each plant. The method of dealing with the problemsof existing plants is also applicable to new organizations, for anew organization is only new in a limited sense. It uses men ofexperience. It uses existing machines and implements. It followsexisting methods of conducting business and in the generalmanagement of its affairs. Even the so-called new method which may be the center around whichthe so-called new business is built contains very little that isnew. The newest things in the ordinary industrial world containmany old and well-known elements. The very use of a so-callednew method or machine as a center around which to build anorganization is in itself so old that it is a confirmed habit withus to be lured on to investing in such things by the statementthat some new process or means is to be employed. A really new thing that calls for wholly new ways and new meansfor manufacture is almost inconceivable. The nearer we approach tonewness in the industrial world the thinner becomes the ice onwhich we are moving. Therefore, let us know that when we advisefollowing habit lines in all moves in management of an existingorganization we imply that the same course should be taken inestablishing a new company or organization. In both cases we should employ existing ways and means, experienced men and well-tried implements. Both old and new shouldbe conducted along the usual line in conformity with the state ofthe art, the habits of the workers, and other conditionsindigenous to the locality. Any scheme of going contrary to theexisting customs and usage must be entered into with fullknowledge of the great need of patience, force and courage tooffset the barrier of inertia. Dissipation of Energies. This tendency to dissipate energies by wandering into other fieldsis not confined to the worker; it is a most common tendency ofbusiness men. A manager of an industrial establishment has tocontinually combat his tendency to divert the energies of theorganization along new lines. He knows from past experience howdearly bought is each new method that is introduced into hisorganization. He knows for example that it would make all of hismen tardy at the plant in the morning if at the hour of arising hehas issued a request for each man to dress by carefully thinkingout each move. He knows that the day's work would never be welldone if he asked each one to think before acting. Even conversation comes under the law of habit. It must follow theline that has been carefully thought out. We all know that when a man talks on subjects with which he is notfamiliar his words carry little weight. The so-called spontaneous utterances that seem so full of life andare apparently the product of flashed thought are either thewelling up of some subconscious ideas quickly reconstructed to fitthe situation or they are a haphazard jumble either meaningless orconveying an unintended impression. They are generally in thehumorous line and frequently make an impression that was notanticipated by the utterer. The really useful talk and work is the result of wholesome habitof thought and action. Tying up Capital in Stock in Process of Construction. The amount of capital tied up in raw material supplies, stock inprocess and finished product should not be greater than that whichis necessary to get the greatest output per dollar of investment. In the machinery-building world there is no such thing as a steadylong-lived demand for any machine. Hence the proposition to builda locomotive or printing-press by methods employed in watch orsewing-machine manufacture is entirely ill-timed at least. For this reason the stock in process must not necessarily beconsidered insufficient if it appears to be on the hand-to-mouthplan. The dividing line between excessive and insufficient stockmust be drawn in each individual case. Raw material should be purchased in reasonable quantities with dueregard to the price which varies with quantities but there shouldalways be a regard for the amount of capital used for thispurpose. Any excess represents just that much extra capitalunnecessarily risked in the business. There should be a constant supply of material throughout theentire work. The stock in process should flow through the plant ina rapid but thin stream. The quantity should be no greater thanabsolutely necessary to insure a steady supply for all of theworkers, including the assembling and selling workers. An excessive stock of this or that piece, or of all pieces, meansthat much capital idle, and it also tends to slackness ofmanagement. Frequently it is the outcome of carelessness. A slip-shod management that disregards this point will use no carein purchase of material or in putting in the shop orders. All thatis needed is to just hurry forward the stock that "happens" to be"out", and at the same time allow the accumulation of the unneededstock to go on unchecked. Immense storerooms for keeping finished stock are shown withpride, unmindful of the fact that every dollar's worth ofunnecessary stock on the shelves in the stockroom, every dollar'sworth of unnecessary work in the plant, represents idle money andfaulty management. If this money is to be retained in the business, the system shouldbe changed so that the money will be put where it will bring thebest return. The excessive stock in process is sometimes an outcome of blindprogressiveness--the blindness that fails to see that there is asmuch money tied up in stock in process and in finished product asthere is in the entire machinery equipment. An adaptable equipment facilitates keeping down the amount tied upin stock in process. The modern plant should take advantage ofthese modern methods and machines which tend toward profitable useof capital. Such machines are highly developed and true to thecontrolling ideal of adaptability and largest output per dollar ofinvestment. Cost of the Product. The practice of disregarding the profit, when considering changesin machine equipment, is the natural outgrowth of the separationof the mechanical and the business departments. The changes in the equipment are usually determined by themechanical department, and this is done with particular regard forthe quality of work and the cost per piece. The relation betweenthe profit and the net labor cost is not considered. The cost of the product of the average machinery-building plantmay be divided into three nearly equal parts: the material, thelabor, and the burden; or, in four equal parts, if a reasonableinterest charge is made for the use of the capital invested. The material is the iron, steel and other material that entersinto the construction of the machine, and it is taken in thecondition in which it usually comes to the machine shop. The burden includes all expenses and salaries necessary for themaintenance of the business. About one-half the amount paid for labor goes to the men who runthe machine tools, and the other half is paid to workmen who dothe other work, such as handwork, assembling, transporting, etc. Therefore, the cost of machining is either one-sixth or one-eighthof the total cost. On top of the net cost of the product there should be a profit. Ifit is not there, the sooner something happens the better. If it isthere, then it is proportioned to the volume of the output. Therefore, both the size of the output and the labor cost shouldbe kept in mind. The size of the profit per unit of output is not generally knownto the mechanical departments. But even if it is not known, thereis no reason for their being uninformed as to the importance oflarge output for cost of the plant. Largest Profit Per Dollar Invested. One of the most satisfactory policies of management is that whichtends toward getting the best return or profit per dollar ofinvestment. We shall not refer to the quality of the product, the design, orany other elements which affect the good name and standing of thebusiness, for it goes without saying that no business can bemaintained where these are disregarded. The point to be broughtout here is that, These thing being equal, the best scheme ofmanagement for profit is one that puts the capital where it willdo the most good. The above statement is one with which all will agree, butstrangely enough there has been a tendency to tie up capital inways that actually throttle the output of the entire business. Furthermore, this is frequently done by increasing the portion ofthe investment that is irrevocably tied to the existing product, thus not only reducing the earning power of each dollar invested, but also increasing the hazard by tying the capital to the presentproduct, which soon may be unsuited to the market demand. One of the most common errors in this respect is the one thatregards the reduction of the labor cost as the paramountconsideration. Reduction in labor cost has been the war-cry. The pay-roll hasbeen talked about so much that it has seemed to become the wholething. A man who declares that the labor cost per piece is not themost important element is at once branded as an advocate ofold-fashioned methods. It is needless to give assurance that there is no intention todisregard the labor cost. The net cost per piece is a veryimportant element, but it should neither eclipse the question ofprofit per dollar invested, nor the risk of the capital tied up. What is the gain if the means for reduction of the net labor costreduces the profit more than the saving in labor? If doing soresults in an actual loss of profit, why is it done? We can readily see that the overhopeful managers may disregard therisk of the money invested, but we cannot see why the relativeimportance, or rather unimportance, of the labor cost should be sodisregarded. The machine tools in a plant usually determine its character. Thischaracter is not one that can be quickly changed, but everyaddition to the equipment does change it for better or worse. Usually the installation of a new machine is hailed as aprogressive move, just because the new machine works better thanthe old, but its effect may be very bad. It may be changing thecharacter of the plant adversely to the interests of allconcerned. Therefore, the controlling spirit should see to it thateach move is made on a basis that is economically sound. It is in these changes that the scheme of management has a chanceto make a great difference in the earning power of the entirebusiness. If too large a proportion of the total available capital is tiedup in the machine equipment, the business is handicapped. There isa right amount which bears a certain relation to the totalrequired to carry on the enterprise. With a given amount of capital for machine equipment, the outputof the plant will be seriously throttled if the net cost of laborper piece machined is allowed to become the controlling element. The Workers Help Bring Success. The inventor, the officers, and mayhap the foreman, taken alltogether, do not and cannot make a successful machine or businesswithout this supplemental work or ideas that come from actual workof all workers. This new kind of knowledge should not take away a man's courage;on the contrary, it should give him a true sense of value ofexisting, "going" things. With this knowledge he can confidentlyand earnestly push a machine that is the product of a goodorganization. He will know the great value of much experience andpractise of each of the many men in the organization. He willneither kill the business by half-hearted indorsement, norincrease the hazard of investment by urging this or thatmodification. Nor will he advocate this or that machine beingadded to a line that is already too great. The invention, the general organization, the proper direction ofthe business, are essential to success. But without thatorganization which is only obtained by actual, thoughtfulexperience of the men who do things, all the knowledge andindustry of the leaders are utterly useless. This knowledge produces a new kind of confidence that has greaterfaith in the existing and running things than in the claims forsomething that has not had the development of practice. It is theconfidence that knows that the right fundamental ideas and thepolicy of "sticking to one thing" will accomplish the bestresults. This is not a doctrine of optimism that holds there is no inferiormachine. The "best" implies the existence of the inferior. Innearly all lines there are many grades from the best to the worst, but the loss of faith in the relative value of a machine is mostcommonly due to a lack of full knowledge of the other types, andit is this kind of loss of courage, confidence, or whatever it maybe, that this chapter is intended to offset. Have Faith in Your Products. What has been said regarding the optimist, the pessimist, and thevacillating man, from the designing and manufacturing point ofview of a machine business, applies with equal force to thebusiness organization. The business is pushed forward by men who have confidence in theproject and in the product. If these men lose their faith in theirown business, they not only lose their usefulness as pushers andmanagers, but they become drags on the industry, and remain sountil restored to normality. The hazard of investment is greatlyincreased by such conditions. Instances without number have been observed in which men who havebeen successful have become unsuccessful through loss ofconfidence due to acquiring the "dangerous half-knowledge. " The man who has acquired the dangerous half-knowledge should takea post graduate course in some institution where men are treatedby all the most powerful agencies known to science. There may beno institutions of this kind in existence, but the great need willdoubtless bring the establishment of many. The men who have lost faith in their own machinery should be toldthat no company can survive the effects of weak-kneed advocates. Any company is better for a certain amount of aggressivecompetition. Any company can stand more or less opposition fromits friends the enemy, but no company can continue to exist underthe blighting effects of the men who have lost this confidence inthem or their product. The post graduate course for restoration of the near-wise manshould include educational means of all kinds. The means should beespecially adapted to the need of each student or patient. There might be a phonograph in each room, which should work allnight and all day. This machine should repeat over and over a fewshort sentences like the following: "The only perfect machine is the one you do not know. " "Study the machines offered by your competitors, just to get thesame degree of knowledge of the 'other' machines--not for thepurpose of slandering or even mentioning--but just to restore yourconfidence in the relative value of your own machine. " "Don't try to get back your belief that your own machine isperfect--that has gone forever--only look at the other machinesand learn that your own is the best. " This kind of confidence will not be exuberant, but it will havemarked efficiency in the cold gray world in which you are to againtry your strength. Specialization. We find that in keeping with the trend toward specialization, themachine shop is now manned and directed by specialists, whoseclose application to the technical science of their respectivespecialties has in a degree obscured other elements with whichtheir interests should be coordinated. Among these we generallyfind the so-called human element. This feature of specialization, which is the natural result of concentration and undividedattention to the work in hand, has entailed a string ofconsequences that has lessened the spirit of fellowship andco-operation. The workman in the old machine shop was known as a machinist, anapprentice or a helper. The machinist trade required skill atbench, vise and forge, and in the operation of the lathe andplaner. It also required a general knowledge and resourcefulnesswhich enabled the machinist to make good with the meagerfacilities. The large specialized shop of today was not known. Today the machine shop is filled with a variety of machines whichhave grown out of the original types. Each shop's equipment isselected to serve the needs of that shop, and since each shop hasa special purpose, its equipment seldom includes the full range ofmachine-shop machinery. Today the work flows through the machine shop in lots of largenumbers of pieces of a kind, and each machine, as well as eachworker, is kept at one kind of work and usually at one simpleoperation. The worker in the machine shop of today is no longer known as amachinist, because that term does not cover the presentrange of positions. Even the term "all-round machinist" is nolonger satisfactory. Specialization has made so many divisions in the work that it hasresulted in developing men for special branches, so that today wehave relatively few men who can skillfully operate for instancethe engine lathe and planer. Even if there are those who ever hadthat ability, most of them have lost it through disuse. The workers are now designated by many names indicating theirspecial work. The all-embracing term machine shop is divided into departmentsfor drafting, designing, accounting, production, flow of workcontrol, cost accounting and many other divisions. Each calls forexecutives and workers having special titles. The subdivision of work has resulted in each executive and workeracquiring a high degree of ability and skill for work of his kind, and it keeps each one doing the highest class of work for which heis qualified so that his time is not wasted in the simpleroperations which can be performed by men of lesser ability. We can readily see the economic gain that accrues when the workerbecomes more efficient; first, though the greater skill acquiredas a result of fewer operations to perform, and second, throughthe use of the highly developed special machines, for then he isable to produce a greater value for a given expenditure of effort. We can also see the gain that results from specialization by theexecutives, for each one's attention is concentrated to themanagement of a smaller range of work; but the average mortal hasnot yet reached the point of accepting the fact that to someextent there should be a division between mental and physicaltasks. It is needless to say that no one in these days wouldsuggest even a possibility of a general division of the work alongthe line between the abilities of the brain and hand and in thesedays of construction and operation of intricate mechanisms likeelectric and telephone instruments and machinery, aeroplane, automobiles, railroad machinery, machine shop machinery, army andnavy machinery, from the smallest instrument and small arms to thebig machines like the battleship. The need of the man in whom iscombined the ability of brain and hand transcends any possibilityof our meeting the demand. But specialization does require bothkinds of division. The one that divides along the line betweenmental and physical tasks provides great opportunities for thosemen who have special ability at either the mental or physicaltasks. It is undoubtedly true that the greatest achievements havebeen attained by those who have been unable to combine the greatmental and physical ability. Such men by nature and preference aremost fitted and most comfortable in the positions in which thereis a greater proportion of use for either the brains or fingers. Every student of this subject early recognizes that the man at thephysical task should not be unnecessarily distracted by the vexingproblems of planning and directing the work. In some way this doesnot seem to fit a democracy, but rather seems to lead towardautocracy. However, let us keep in mind that specialization isessential, not only at each physical task, but at the tasks atwhich there may be expended a combination of the mental andphysical, and also at those tasks that are wholly mental, and thata division should be made to get the best results from the wholeorganization. While it may seem autocratic to leave to one groupthe determination of the methods of work, and to another the taskof doing the work, the fact remains that this is an element ofspecialization. That which seems so objectionable to a man with analert mind, is not so objectionable when he realizes that many menof the highest type are happiest when given a chance to work outtasks unembarrassed by problems of procedure. While this has beenone of the great tragedies of industrial life, when square pegshave been put in round holes, it is one of the most importantquestions that an engineer has to consider. The human view will make us all labor towards the completeelimination of degrading tasks, by changing machinery andprocesses so as to fit the various types of men available. Throughit all, we must see to it, that our scheme of work is true to thefundamental law of specialization, and that we recognize thatthere must be some division between the physical and mental tasks, and that this does not necessarily lead away from democracy. Infact, we must recognize there are two extremes. At one extreme wefind the ideal of a highly specialized organization in which thegreatest value in quality of work and quantity of output ispossible through a complete co-ordination of the work of all typesof men, each at his own kind of work, in which each can excel; andthe other extreme in which we find a general disorganization whichreturns us to the primitive condition in which man's energies weremost inefficiently used. Such a state is the natural result ofanarchy, and it is a state that would leave this or any othercountry an easy prey to a country in which specialization existed. One means team work of great wealth-producing capacity, and theother a state in which the struggle for mere existence would besevere. The salvation of the world will be worked out if there is at leastone well disposed nation that stands firmly for specializedindustrial organizations. This will result in both industrial andmilitary supremacy--for it is now well known that militarysupremacy cannot exist without the highest types of machinerybuilding shops. Such a nation could dominate all others and could ultimately checkthe disorganizing activities of the well-intentioned butshortsighted reformers. The higher form fits our highest civilization and nationalsecurity, and the other is a direct step toward chaos. Nevertheless there is almost a stampede of sentiment againstspecialization and its product--the large industrial organization. This stampede has taken many of our otherwise well informedpeople, and now we are seeing its extreme effect in theiconoclastic fever that is raging in Russia and elsewhere. We know that the individual, the industry or the nation thatspecializes will produce the greatest results with a givenexpenditure of energy, and we know that all this plan ofspecialization requires a co-ordination of the work of all. There should be brought about through specialization the highestdegree of ability on the part of the executive officers, as wellas the highest skill of the workers, and each man should have thesatisfaction of knowing that no one on the face of the globe canexcel him at his specialty, and furthermore that his energies areexpended in the best way to produce value. Many men have already realized this ideal. Many industrialorganizations have also attained it in a very high degree, and while there was a trend of some of the nations towardspecialization before the war, there was developed in America aspirit of antagonism toward the large units that had grown up as aresult of this specialization. Not that specialization wasobjectionable, but that industrial supremacy of an organizationwas thought to be a distinct menace. Since it is in these specialized industries that the individualshould find his best opportunity to produce the greatest wealthfor a given expenditure of effort, such organizations should bemaintained and all others should be gradually changed over so asto make the most economical use of the man power of the nation. We have found by experience that industrial organizations aresuccessful if they specialize. We have handed down to us thesaying that "The Jack of all trades is master of none". Our brainsaccept these statements, we recognize them as facts, but owing toone of the irrational traits of the human being, it is onething to believe and another to practice. It is one thing tosuperficially know that it is important for us to specialize asindividuals, and it is quite another matter to bring ourselves toact in conformity with this fundamental law. The great economic gain or advantage possessed by the FordCompany, and many of the other companies in this country, is notdue to the fact that they have selected a wonderful model that issuperior to others in every way, but it is based on the fact thatspecialization makes it possible for the various officers andworkers to become the foremost men in their respective offices. Specialization of an industry becomes effective only when each mancontinues at a given job or work. Shifting men about the plant isharmful, excepting in so far as it may be good to promote men fromposition to position to fit the development of the men and theindustry. The plant can be wrecked by changing men from positionto position without changing the product. It can also be, wreckedby changing the form of its product in fact any change, whether itis a change of the product or a change of the men, whichinterferes with the continuity of operation of a man along habitlines is an economic loss to that organization. We have stated that each man should specialize in order to producethe greatest value for a given expenditure of energy--thatspecialization of the industries is necessary. That each man has some special knowledge that fits hisenvironment. That the skilled worker has a special knowledge for his duties. We have pointed out the need of a closer relationship between thespecialists. That they are all interdependent and must cooperate. In setting forth the importance of the worker we must remember theequal importance of every other member of a well-balancedindustry. Lay directors and even lay chief officers are not necessarily amenace or even burdens, if they have a fair conception of humannature and the importance of each element in an organization, andthe full necessity of coordination of all. They should know, however, that every man should be paid first incash and second in honor, appreciation, esteem, good willinspiration, commendation for his good work and good qualities, careful consideration of his troubles and a genuine knowledge thathis interests are being justly considered. INVENTION The following chapter is given in its original form as a lectureto the Engineering Society of the Stevens Institute of Technology. Its value in furnishing a side-light on the subject of habit, towhich the preceding chapters have been more directly applicable, lies in its emphasis on the importance of the inventor (ordesigner, if you prefer) having clearly before him at all timesthe effect of habits of thought and action both in himself and inall others. These modes must be both conserved and combated inhimself when building up favorable mental state. He must build onhabit in order to have his mind continue in its application to achosen subject, and he must combat any tendency to follow habitlines of thought that may have been established by observation ofthe older forms or methods. His inventions must be of a kind thatwill be readily made, sold, and used by men whose habits ofthought and action he cannot readily change. This should be of value not only to the designer, but also tothose who direct or co-operate with him. In designing the parts of a machine, the need of trimming here andthere, of giving up this or that ideal form just to get thingstogether, must be seen and done unflinchingly. And in the same waythe whole scheme must be made to conform to the economicconditions. If the machine under consideration is like a machine tool, and isto be offered for sale, then the manufacturing, selling, and usemust be taken into account. In machine-tool design a wholly newinvention is an exceedingly rare thing, and a successful newmachine is still more rare. We must remember our own tendency to follow precedent, and we mustmake an effort to see the problem in its natural form withoutbeing misled by the solutions evolved by others. Be Practical. The toughened idealist may not look or act like an idealist, but in reality his idealism is one of the practically-wiseconstruction. He allows his memory to hold all that is helpful ofthe past, both of the blunders or successes. The dreamer who has been toughened by experience is one who letshis rational brain have control. He ranks next to the stalwartknight of the eraser, because he has the courage to arrest theendless tinkering of design in order to get something done. Hewill not let the family freeze while he is thinking up some grandscheme of sawing and splitting wood by magic. A most cursory glance at the machinery in use in the world willshow that the work has been done by imperfect machines. A study ofthe design of any machine brings out the innumerable shortcomings. If we see a machine that seems perfect, it is perfectly safe toset it down in black and white that we do not fully comprehend it. It is safe to say that the only perfect machine is the new modelthat is to be tried very soon. With these facts in mind it does not require very much courage togo ahead with an imperfect design, but unfortunately thesethoughts will not stay in the mind of the average designer. Theyare crowded out by the flood of ideas for still furtherbetterment. That is why it is just to give high rank to the manwho had courage to go ahead and build, even when he realized thefaults of a design. Perhaps one of the aids to this action is the knowledge that theapparent opportunity to improve a design may only be apparent. Inreality the change is only a change, and is no betterment, a verycommon outcome of such ideas. The knowledge of the great array offailures of such "improvements" is wholesome and helpful to bearin mind. The Inventor Sees Opportunities to Improve. The inventor, from his point of view, sees the great needand opportunity to improve the design of the machine beingmanufactured. He sees that the big machines are nothing butenlarged editions of the early and smaller ones. He knows thatwith a change of size there should be a change of design. He knowsthat although a granite rock weighing a few tons will not be keptsuspended in air by a heavy wind, a small part of the same rockwill be carried away by a breeze, and may be kept suspended by avery slight current of air. He knows that the small particle ofgranite has a greater superficial area in proportion to itsweight. He sees on every hand that a change of dimensionsfrequently entails a change of design. He also sees the opportunity to effect a great saving by buildingthe large machine for its special service, and not on the exactlines of the smallest model. The failure of the management toadopt his plans seems nothing less than unreasonableness to theinventor, for like other mortals he is a trifle slow at graspingthe fact that no two beings have exactly the same point of view orthe same quality of sight. Another inventor sees a chance to make further improvements and heis disturbed because there is a ban on changes. He feels that themechanical success of his previous work should be a sufficientguarantee of the economic advantage of the last proposed plan. If an attempt is made to show him that the ban on changes isabsolutely necessary from an economic point of view, it is foundthat the reasoning does not get the same reaction in his mind asin that of the manager. To him the great advance of the new schemefully warrants the temporary expense. Improvements May Be Disasterous. Improvements should be sparingly made. Any improvement thatrequires a change in construction or operation may be disasterousfinancially. This may all seem extremely pessimistic. But it is only seeminglyso. Experience shows it to be the true view. If it is true, then the machine designer should know it. A mereknowledge of mechanism is insufficient for him. A large businessexperience cannot be purchased, and his success should not becontingent on the business ability of another. He should know howa machine should be designed, and should not depend too heavily onthe views of the business men who have not a clear knowledge ofthe technical problem. Perhaps some of you may feel that there are many other problems tobe encountered before you will meet these which I have set forth. But we should remember that the mind holds some of suchimpressions a very long time. It holds them below the threshold ofconscious thought, and under ideal working conditions it bringsthem above it when they are needed. If you have caught my meaning you will not be weakened inenthusiasm for new work, but you will be protected in a measureagainst some of the reaction due to disappointment. There is agreat field for earnest workers, and it is easy to become one byworking on the lines set forth. Natural Fitness. One of the first questions that arises in the mind of one whointends to undertake machine design is, what constitutes naturalfitness for it. There seems to be no positive basis on which todetermine in advance a natural fitness for this work, but thereare certain temperamental characteristics that undoubtedly havemuch to do with the success. The temperament should be one favorable to continuity of thoughtalong a given line, as well as one that will by nature take anintense interest in the subject. If these characteristics are missing, it may be due more to thedistracting interests that in these days crowd in upon the mind, than to a lack of natural aptitude. The absorbing interest, however, is essential, and it may be developed by conforming towell-known principles of orthodox psychology. Self-torture or harddriving is not nearly as helpful as a strong inner purpose to keepthe chosen subject in the real center of conscious thought. The subject that comes to mind when there is a lull in the outsidedemands on the attention, or one that is insistent on takingpossession of the mind, even when other matters are objectivelymore in evidence, --that subject is the one that holds the centerof the inner attention. That is the controlling idea or purpose. Ordinarily, it is some diversion; occasionally, the hauntingbugbear of some unfinished work or obligation. If the mind isdominated by such ideas or any other than the real problem inhand, the individual is seriously handicapped. When a problem of machine design is undertaken, the mind must makeit the real center of attraction. To one having an averageendowment for such work, this is not a difficult task, but to getthe best results it should be rightly undertaken. Repeated Thinking. A chosen subject is brought, with some lasting effect, to thecenter of attention by repeatedly bringing it into the mind at themoments of lull in the pressure of other affairs. The astronomerswait for the moment of best seeing, and the designer must wait forthe actual psychological moment. The best seeing condition for the astronomer is due in a smallmeasure to his own physical condition, and in a large measure toatmospheric conditions, but the most opportune time forclear-headed vision of the designer is due mostly to his ownphysical and mental condition. Probably no two men have their minds equally affected by theirenvironment or their physical condition, but the fact that thereis a most favorable time and condition for such thought and workshould continually be borne in mind. Without this a man withnatural endowment may try his wings at flight at an inopportunetime, and if he fails he may be firmly convinced that he was nevermade for flying. This undoubtedly applies equally well to other kinds of work. Itmay not be strictly true of a perfectly normal man (if there besuch a creature), but it is truly applicable to many workers inthis and similar kinds of work. This phase is mentioned in order to make clear, not only how adesigner should work, but the thought that should be keptuppermost in the mind of one who is trying to do this work. The physical condition is more or less dependent on the mood, andto a great extent the mood is dependent on the condition of thebody. The strenuous gait is seldom the best, and, of course, theextremely indifferent one is of little value. The best for theaverage man is one born of a quiet environment, with mind and bodyin a fairly restful condition, or still better, in a rested andfresh condition. Concentrating Attention. The quiet end of the day is almost as good for clear thinking asthe early morning, especially if the day has not been overstrenuousand the activities have been gradually tapered off. There are many instances that would seem to show that thestrenuous gait is the best, but nearly all of these evidences arequestionable. When finally simmered down, the good work done underhigh pressure is frequently due to latent ideas that were theproduct of quiet thinking. The mood and the dominant idea may bepredicated as necessary. As already stated, the habit of thought most favorable for thepersistence of a single group of ideas is attained by the practiceof switching the attention back to the desired subject. This should be done at the opportune time. The subject should notbe forced on a tired mind. It should not be taken in as a painfulduty, but it should be made the one thing of interest. Reallyvaluable results can only come along the line of the dominantthought. All other work lacks directness. It follows precedent toan unnecessary extent. Interest Must be Awakened, Not Forced. Another way of saying all this is that the designer must getinterested in the particular problem, and he must have an interestthat crowds out all other thoughts, even thoughts of similar work. It is useless, however, to say, "get interested in the work, "unless we suggest a way to awaken interest. Surely, we know thatinterest does not come at mere bidding, and that it cannot beforced by hard work. But it can be induced by an easy process in anormal being, providing he has not already too firmly establisheda set of habit thoughts of another kind. The normal being, by persistent intention, can establish thedesired thought habits by returning the preferred group of ideasto mind. Interest is awakened by this comparatively easy process, and when a genuine interest exists, the actual work follows as anatural result, and it is a pleasure instead of a drudgery. This is not intended as preaching in any sense; but only to bringto mind facts known to all, with the view of implanting thesefacts in the mind of the machine designer. Some designers have done excellent work with no thought ofpsychological problems. But in this more strenuous age it seemsbest to take advantage of every aid to the desired end. The intricacy of mechanism has reached such a state that newdesigners are almost overwhelmed with the mere thought of tryingto comprehend the existing machines. But with the advance of theworld of machinery, there has been a better comprehension of theworking of the "thinking machine", and we must take advantage ofthis knowledge in order to win out. It is particularly needful nowto study its most efficient use. We are getting to the point wheremental energy saving methods should be used. It is not necessary to go beyond the bounds of orthodox sciencefor schemes for getting the best results from a given mind. Wehave known for centuries that men tend to habits of thought aswell as action, --that thought habits are like ruts, and these areencountered wherever the mind travels, and these ruts bring themind back to a certain central group or community of groups ofideas. Establishing Useful Ruts. The real secret of success is in establishing ruts of a usefulkind, ruts with switches that may be operated by the mind at will, or that work automatically when the mind would otherwise wander. Since even fleeting thoughts are germs of acts, it takes no greateffort or self-torture if we will but understand the processes andsmoke out the undesirable germs, and allow and encourage thegrowth of the preferred groups of thoughts. This may be called alazy man's way of doing things, but it is the way to conserve themental and physical energy, and it gets results. In saying that the problems of the work in hand should comeautomatically and agreeably into the mind when there is a lull inthe impressions being made by other things, it is not theintention to convey the meaning that one must have no otherinterests. The mind gets its clearest view by the scheme already mentionedfor creating interest, viz. , by repeatedly bringing it back to thesubject whenever it is found wandering. The best view for invention is that which reveals the most naturalway for accomplishing the purpose for which the machine is wanted. It should not be born of precedent. It should not follow the linesthought out by other designers. It readily discovers the obsolete features in existing machines, features that were required in other days but have no use now. Such things remain there just because later designers havefollowed blindly. All designers follow more or less. We have shown the great need offollowing the set habits of users, but we should make a distinctattempt to get back to nature; that is, to see just what is bestfor the purpose, and to get the most direct and natural means. Ifthis is too much of a task, just hunt for the obsolete features. Above all things, we must not try to follow another's work. We toooften follow unwittingly and to our misfortune even when we try tokeep out of the rut. Machine designers who have done original work will tell us that itis easier to do good work by striking out on new lines than it isto follow the work of others, or even to tinker over some of theirown inventions of other years. It requires more ability to take upthe work of another and change it, than to start out in someoriginal scheme. The machine builder knows that the success of any machine dependson the clear-sightedness of his designer and the oneness ofpurpose of all the heads of all the departments devoted to theconstruction, sale, and oversight of the running machines in thehands of the users. And last but not least, in these days ofsupremacy of specialization, he knows that success comes only tothe largest group of men organized for this particular kind ofwork. All Men are Human Beings. One of the first things we learn in the works or office is thatall men are really human beings. The second one is that themeanest one is only so because of certain physical or mentalconditions that are the direct result of natural law. Usually itis not necessary to drag in heredity, for we find ample cause inhis environment, within our range of vision. As a rule, a good understanding of men insures a wholesome regardfor them, while failure to understand the other fellow (or theequivalent, the failure of the other fellow to understand us) maybring out many things that make us feel that he is not one whosefeelings or interests should be considered. To any one that has had experience in the shop and a fairlywell-rounded business and financial experience in this particularfield of work, the other fellow is invariably a good fellow wheneverthere is a chance for a fairly complete understanding. If we can accept this statement tentatively, and follow it up by adetermined purpose to actually feel it, then we have obtainedsomething by the royal process that would have otherwise requiredmuch time and perhaps some unpleasant experiences. This knowledge is essential to success in designing machinery. True, many have been successful with a very different attitude, but engineers of the future must see to it that as many of thephases are as favorable as can be made so. Regarding the absorption of the knowledge of working mechanism inthe works this is greatly facilitated by a wholesome relationshipwith other workers, and it is greatly handicapped without it. Therefore, it is one of the cardinal points for the machinedesigner to get thoroughly acquainted with others in the work soas to know their likes and dislikes, as well as the mechanicalneeds. The favorable features in machine designs are: directness ofmechanism for the purpose; its simplicity and its efficiency; itsadaptability to the habit of thought and action of makers andusers. The obstacles to its success are any of the features it may havethat cannot be readily comprehended by those who are to build, sell, buy, and use these devices. It is of little value for realsuccess for a machine to be one that is readily understood by adraftsman or manager, or that it is one that may be made toperform wonders in the hands of a skilled expert. The real economic success depends on the number of machines thatwill be used. The number of machines that will be used depends onthe readiness with which the real workers take hold and manipulatethe machine. To get a true conception of the value of a machine, it isnecessary to look at the showing of a business engaged in itsmanufacture. In estimating the value of a machine-buildingbusiness for this purpose it is customary to speak of its "goodwill. " Easiest Way to Improve. Inventions of complete novelty and of great economic value haveattained success going in opposition to this principle ofconformity to the habit of the world. But the easiest way is todirect improvements and inventions along lines that are the mostreadily assimilated by the minds of the beings to be considered, and this may be said to be one of the master-keys to economicsuccess. The work of building the first model of a new machine may be underthe direct supervision of the inventor, and if only one machine isto be made, the inventor can follow it wherever it is used. Bypatience and industry he may instruct some one in the use of it, but in these days there is no chance for a great economic successin making just one machine, or in fact any machine for which thereis not a large market. Hence, we will confine our attention tomachines made in such large quantities that the completesupervision of manufacture, sale, and use is beyond the capacityof one person. For all such machinery the design must more or less conform to thethought and habits of work of all concerned. Some of the mostdirect designs have failed to meet with success just because theinventor did things in an unusual way. The unusual way is a blindway, and is difficult to find. In some instances it amounts to noway at all, for it is never used. If a radical change in design is to be made, the new machineshould be one that will be the most readily understood. Obscureparts or unusual means should be avoided. If moving parts must be covered, some way should be provided forconvenient observation. It is the obscure departure that is themost troublesome, and it is the obvious thing that offers theleast resistance to progress. There is a chance to progress by obvious devices, and suchprogress is enjoyed by all, from the makers to the users. Itstimulates their weak but wholesome appetite for progress. Technical View Insufficient. But whether the clear view of the designer is due to peculiarfitness for seeing such things, or to proper application, the factremains that this clear view of the technical side is insufficientin itself. The man with the clear view must also realize thatothers do not get the same view. He must know that the mindautomatically takes in things of interest to it and wards offothers. Even when the individual apparently tries to comprehendsomething in which he has no special interest, it only results ina superficial mental impression, one that has no appreciableeffect on the actions. This failure of mankind in general to grasp the advantages of anew mechanism as it appears on paper is only a slight part of thetroubles to be encountered by a progressive designer. He has to contend with habits of thought and action of all thehuman beings affected by the new machine. This includes the entiregroup of men in the manufacturing plant in which the machine mustbe made, the business organization both in this plant and the onein which it is to be used, and, after all this, the greatestobstacle of this kind is to be met in the man who uses themachine. For it is in his hands that a machine must prove itsvalue. When we consider the inertia of mind and body, it is trulymarvelous that there has been any progress in machine design. Infact, if the machine-building trade were in retrogression, withonly a few new men being taken in there would be little or noexcuse for making machine tools of new design. The older workerswould get along about as well without the improved machines. This is not said in a spirit of fault finding. It is a great factthat we should grasp if we are to design machinery successfully. It is difficult for the man of sanguine temperament to reallyaccept this view, and it is also hard for one who is continuallysearching for knowledge. But it must be appreciated, and all workmust conform to this principle, if it is to be pushed forwardalong the lines of easiest progress. Accepting this view is no barrier to progress. It will notultimately delay the work of a reformer if he is induced to act inaccordance with this principle. It only prevents a wreck. The knowledge of the force of habit of man should therefore beused in two ways: First, when the designer is trying to make the most naturalmachine for the purpose. Then he must overcome his own tendency tofollow precedent. Second, when considering the kind of a machinethat can be easily made, sold, and used, he must give dueconsideration to the inertia of others, for their inertia hecannot hope to quickly change. Reformers in this world generallyhave a hard time whenever they under estimate the inertia of men'sminds and bodies. A designer of machinery, by close application to his tasks, shouldobtain a clearer view than it is possible for others to possess, of the way a machine should be designed, made, and used. It is notnecessary to assume he has a better brain. An ordinary mindapplied to a given subject sees it more clearly than an abler mindwhich has not considered the subject with the right interest. Inventions Should Not Mix With Details. In first working out the mechanical schemes no energy should bewasted in trying to make the sketches correct in proportion. Thevery functioning of the brain along the draftsman's line shifts itaway from the inventive mood. The exact drawing frequently showsthe necessity of change in general scheme, but that is only one ofthe after-steps. The fundamental idea is the starting-point, and must be sketchedout as fully as possible without losing the very frail thread ofthought. A clear view of the scheme is not to be obtained on demand. Theschemer must wait in patience, as the astronomer waits for steadyair, and, like the astronomer, he must have every facility inshipshape. The clear view is only clear to the watching eye. The coast-wise skipper in making a fog-bound harbor will see abuoy through a slight shift in fog, while a landsman might look invain. The wanderer in the happy dreamland of mechanical scheming mustnot be looking for complete drawings, specifications, and workingmodel of the invention he wishes to bring into the breathless andwaiting world. He must be looking through the mist of thethickened senses as the skipper looks through the fog. The buoyand the scheme may be never so faintly shown, but yet withsufficient clearness to give a positive guide for the course. Inventive schemes cannot be forced by strenuous effort. Sucheffort may result in slight refinements of a given type, but neverwould have invented the DeLaval or Tesla turbine. It is not my purpose to belittle the great work that has been donein improving existing machines, for this, after all, is the realgreat work that must be done. It is the work to which the worldowes its greatest debt for progress in material wealth. Furthermore, it is a phase that must be considered in connectionwith every invention before that invention can become of value toany one. But just now we must consider how the inventor must workwhile dreaming out the fundamental ideas of a mechanical scheme. The clear view of a mechanical scheme is more likely to come aftera good night's rest, particularly if the schemer has retired withthe problem in mind. There are times when invention comes undersevere stress, hard physical work, and mental anxiety, but themost usual time is after a sleep which refreshed mind and body. After this the inventor brings his scheme to the drafting board, to patent office, to factory, and to the market, and in each casehe encounters barriers. Designing by the Square Foot. The ordinary work of machine design, in which well-known parts aregrouped to accomplish a given end, without much thought ofattaining anything approaching the best, --such designing is likepainting a fence, so many square feet of paper should be coveredper day. But the real higher type of work cannot be measured inthis way. It requires the forethought, the close application, thekeen interest, and the comfortable idea building. Designing by the square foot is, however, a good preparation, andmany a good brain has been developed by such work. The importance of designing a machine to meet all the conditionsnecessary to success from a mechanical and business standpoint isfully recognized by every one. But the grouping of the ideas inthe mind while working out the various phases must not be hamperedby the bewildering picture of all of these problems, eachdemanding consideration at every move. The phase in hand must havethe concentrated attention, and the best conditions for itssolution. The harmonizing is an after-process which must be worked out by aseries of compromises after the various component elements havebeen almost independently considered. Problems to Consider. In taking up the problems of design of a machine, there will befound an almost endless number of elements to consider. Thestrictly mechanical problem of the best machine for the purposenever stands alone. What is the measure of the best machine? How much can be spent onits design and construction? How much work is to be done? Anendless variety of questions at once crowd into the mind foranswer. It is doubtful if all the elements could ever be tabulated in anyform that would be a positive guide in shaping the final result, but in a general way the designer should make a fairly good guessat the kind of standard toward which he should work. There are, doubtless, men capable of carefully weighing the almostinfinite number of variants, but such men usually lack theintuitive scheme of work, on which the inventive side of adesigner depends. For the ordinary mortal the best process of working is to keep avague picture of the whole requirement in mind while concentratingon some one phase. When the inventive qualities are to be called into use, theeconomic side, the business side, the manufacturing, the selling, the personal profit in cash or glory, all these must be absolutelycrowded out of the center of the mental picture. Even fleetingthoughts of other elements seem to prevent the inventivefunctioning of the mind. In like manner the problems of manufacturing, selling, patents, business organization, must each be given a separate consideration. The interval between taking up the various questions should beas wide as possible. The mind seems to require a previous noticeof days or weeks or more in order to take up any one of theseproblems, at least, with any hope of success. The Hero of the Eraser. The drafting board may show that no such arrangement of parts canever be made, that the whole scheme must be altered to make itpractical. A real hero is required for the work of juggling theelements of a drafting board. He must have patient endurance andsufficient strength of character to use the eraser heroically, forthe eraser is mightier than the pencil in the drafting-room. Thereare a thousand valiant knights armed with pencils to one stalwartpusher of the eraser. In the drafting-room the work of harmonizing must go on;compromises must be made between the ideal scheme of the dreamerand the requirements of the manufacturing and selling departments. Next to the noble knight of the eraser comes the idealist who hasbeen toughened by experience in the cold world. The idealist aims to design and construct a perfect machine. He isencouraged in his work by seeing a little clearer each day, month, and year of the time spent in the right kind of application to hiswork. He knows that the work of last year is faulty, that thisyear's work seems nearly perfect, excepting for a certain slightchange that has just entered his mind. He cannot think of allowingany machine to be made without this later improvement. He is inclined to the optimistic view, his memory works best onthe good work of the past, and is extremely poor in holding afreshthe view of previous mistakes.