In a factory manufacturing standardized articles in continuous operations, the requisitions might ema nate from the stores department, since this is the de partment charged with keeping the factory supplied with material. All requisitions for indirect material or supplies would also naturally originate in this de partment.
There are many shops where all of the three classes of work just outlined are carried on. In such cases, requisitions for the purchase of materials might prop erly originate from several sources. It is necessary, however, even in such factories, to see that this authority is centralized and that only reliable and intelligent officials are given authority to make out requisitions for the purchase of goods of any kind. Furthermore, no matter where the requisition may originate, it should pass thru the hands of the store keeper so that he may use whatever material he may have on hand, or use up other material that may be substituted. Dead stores are, perhaps, the most un productive form of capital investment; yet a casual examination of almost any large storeroom will show an amazing amount of this sort of material, much of which could be used up if proper care were exercised.
The particular form of the material requisition is not important, but whether issued by the foreman, or by the order department, it should, of course, bear all the information needed to identify the material with the work or purpose for which it is intended. If the order is for a particular job the requisition should give the job number, the time when the material will be needed and all other particulars regarding the physical and chemical characteristics which it must possess. In large enterprises the material requisi tions are made in multiple, one copy being retained by the official issuing them, one going to the storekeeper and one going directly to the purchasing agent.
Copies may be sent to other officials, cases varying according to the exact system in use.
7. Standard specifications.—The material requisi tions, whether for direct or indirect material, should be based on standard specifications if possible. Suc cessful purchasing involves care in regard to quality as well as price. One kind of oil, for instance, may
not be as good as another at the same price, for the 'purpose in mind. The purchasing agent should, therefore, be fully informed by those issuing the requi sition, concerning the requirements for any desired article. When an accurate statement has once been made of the material required for any job, this descrip tion should be retained as a standard. In some cases the kind and quantity of material required is noted on the drawing itself and thus a permanent record is made; in other cases the material record is made on a specially prepared form, and carefully filed. Not only does this procedure assist accurate buying but it also makes possible accurate comparison of ma terial costs on different shop orders, and allows the interpretation of comparative costs to be made much more intelligently.
Besides the service which the engineering de partment, or any similar planning department, can render in making up accurate material requisitions, it can also often save large sums by using standard ma terial and material on hand instead of ordering special material. Special material, if not used for the pur pose for which it was originally intended, is likely to become obsolete, and in such a case a loss is incurred that might have been saved by careful planning. Such losses are chargeable to production costs. They in crease, therefore, the burden, or shop expense, on every article manufactured, since, generally speaking, it is not possible to allocate these losses to the particu lar job on which the loss occurred.
Standardization of material and supplies should not be confined to the actual production of marketable goods, but should extend to every department of the business. The purchasing of office furniture and fixtures seems to be peculiarly susceptible to the vagaries of personality; the variety of desks, filing cabinets, and stationery to be seen in most large offi ces is certainly bewildering. Standardization makes possible the purchase of larger quantities of each class of articles, and thus insures lower prices and reduces not only the interest on permanent investment but also the number of items that go into the expense ac counts.