180 APPLYING EFFICIENCY PEINCIPLES
In order to reach a decision, it is necessary first to
determine the proper standard time for the sawyer
alone; then to determine the Correct Method, or Standardized
Operation, for the stock sawyer and helper
working together; and then to determine the standard
time for the two working together. It can be assumed
that, as the general application of the Principles
of Efficiency takes effect throughout the plant, actual
time on the operation will, on the average, equal the
standard time. The standard times determined then
furnish a basis for estimating the cost of the operations
by either method of working.
It will be noticed that the total cost of wages and
bonus is increased by the proposed division of labor;
but that, when burdens are included, the total cost is
reduced by the division. The reality of saving on the
burden would probably depend on whether there was
work enough to occupy both sawyer and helper to full
capacity. If there were, so that output would be increased
by employing the helper, the overhead would
be carried by a larger volume of product, and there
would be a real saving in burden. If the output could
not be increased, the saving in burden would probably
be fictitious. This indicates that the division of labor
should be practiced if the plant were working at full
capacity; that the profit of the division would decrease
as volume of production fell off; and that, if
the plant were working at or below 66 per cent of capacity,
it would be more profitable to use the sawyer
without a helper.
In other words, if the plant were working 60 hours
a week at fuU capacity, it would pay to divide the
cross-cutting operation by giving the sawyer a helper;
but if production should fall off to the capacity of a