CHEM-TEXTS
Page 2 | Vol. No. 7
FROM THE FACTORY MANAGER
DEAR FELLOW EMPLOYEE:
The past month or so I have been busy reviewing plans for our 1971 operating budget. If I were to share those costs in detail with you, I’m sure you would be discouraged by the ever-increasing cost of doing business.
Looking beyond the wage and benefit increases granted in the recently completed master contract negotiations, giving consideration to continued merit recognition of salaried personnel and improved salary employee benefits, we face added costs in terms of raw materials, supplies and utilities.
For example, the electric company has asked the Public Utilities Commission to grant a 10% rate hike. The water company has requested the Commission for approval to increase its rates by 25%. Regulations coming into effect in 1971 on the use of low sulfur fuel point to record oil prices for operating our boilers. Increased spending for pollution abatement will add to an already burdened budget.
Realizing that increased costs cannot be merely passed along to the customer, because in reality its the value of the product to the customer that sets its price in the market place, it is apparent that we can’t meet 1971 costs with old-fashioned ideas and methods.
We need new imagination and creativity directed toward greater productivity, higher quality, and, in general, excellence and efficiency in every phase of our work. We need the individual and group dedication to face these challenges as “our jobs”, not as “this is your job, that’s my job”. As I see it, everyone of us is on the first team, there is no “second string”, it’s up to all of us to “really put out” all of the time.
Sincerely,
[Signature]
JAROY Returns 10% On $1.00
[IMAGE: Photo showing Mary Kevit, left, named JA secretary of the year, shows Jaroy financial report to Joann Niski, president, as advisors Ted Lainas, left, and Jim Brown look on.]
By Jim Brown and Ted Lainas
Jaroy, Inc., Uniroyal Chemical’s sponsored Junior Achievement Company completed a highly successful year. The company returned a 10 cent dividend to all stockholders after paying taxes, salaries, wages, raw materials’ cost, office rent and costs for manufacturing equipment.
The company completed its operations last month and sent the dividend plus the original $1 stock purchase to each of its stockholders, a 10% return on their investment. Included in the stockholder’s report were the board of directors, a liquidation report, an organization chart, a sales report and an operations and balance statement. Sales for the firm amounted to $586.
At the Junior Achievement annual dinner, Jaroy was voted runner-up “Company of the year.” Mary Kevit, the secretary of Jaroy, was voted “Secretary of the year”; and June Murray was voted runner-up for “Sales Vice President of the year.” These awards represented a distinctive honor since the competition included officers from 35 other companies in the Naugatuck–Waterbury area.
Jaroy’s officers, who led the firm to a successful year consisted of a woman management team, juniors and seniors at Naugatuck High School.
Advisors to Jaroy, Inc. were Jim Brown and Ted Lainas.
Computers Help Keep Customers
[IMAGE: Kirk Kirkendall, now plant dispatcher, codes information on a bill of lading which will be keypunched for computerized freight payment system, while Mike Banik watches. On phone is Ray Frank, plant traffic manager.]
by Ray Frank
Computers at EMIC are now helping us to select the best way to ship our products to improve customer service by prompt delivery of their orders.
The new computerized system determines the cost of the shipment; pays the freight charges to conform with ICC regulatons; and reduces transportation costs. ICC rules require payment of freight bills within 4 days if shipped by rail, and 7 days if shipped by truck.
On outbound freight, the computers type the hundreds of checks previously handled individually by the accounts payable department.
Each month the “think” machines provide vital information to the sales, accounting and traffic departments on customers’ purchases, products sold, and the pounds ordered. The system also gives a monthly and a year-to-date record of the tonnage and revenue of each carrier. The computers also catch duplicate payments of freight charges.
Feeding accurate statistics to the computer is essential to schedule shipments promptly and selection of the proper carrier.
[IMAGE: George Holzer checks accuracy of statistics to be fed to computer.]
Responsible for coding the bills of lading are Al Juliano and Jim Sadik. George Holzer, recently transferred from the plant’s traffic department to EMIC feeds the coded cards into the computer which types the freight payments and memorizes the information for future use.
Use of the computers is another step forward to improve customer service and to reduce shipping costs to stay competitive in the chemical market.
[IMAGE: The stack of checks on Charlie Terninko’s desk will be made out by the IBM computer. Don Turner, standing, watches Charlie make out one of the hundreds handled by the accounting department.]
Almost everyone knows some of Parkinson’s Laws, including “expenses always rise to meet income.”
Along comes The Peter Principle which includes “every person rises to his level of incompetence.”
There is also Murphy’s Law which states “if anything can go wrong–it will.”
Safety On And Off The Job
[IMAGE: Even the great Casey Stengel didn’t last 20 years as a manager. But Bob Shortt, safety manager for the Chemical plant, has managed in the Little Leagues since 1950. Above, Bob gives first aid treatment to one of his star players, practicing safety off the job. (photo by M. Makoski)]
