The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

il ey = 1 di ay al [Practical Ways to Cut in’ Carqo Handling Wi Vite ——-vhHMa AY yt") "0 fe Conducted by H.E.SSTOCKER i oi Ces rofitable Ship Operation May Depend on Cargo Handling Methods HIS subject was discussed at Tiers in the paper presented be- fore the 1930 meeting of the So- ciety of Naval Architects & Marine Engineers, also in a paper before the Society of Terminal Engineers. It has also been discussed in part in articles in MARINE REVIEW, the first of which appeared in September, 1929. Ships’ port time saved is more im- portant in most cases than a reduction in stevedoring costs. This is not a matter of opinion, it is a question of fact. The tests of whether port time exceeds a proper amount is determined first, by comparing with similar or comparatively similar operation; sec- ond, by a thorough analysis of com- parative methods to ascertain if pres- ent methods can be changed in such a manner as to make possible a profit- able reduction in port time. A thorough analysis can be made of all the details of the operation and also the alternative plans suggested. Many errors in business judgments arise from a failure to look at all aspects of the case. The facts obtained should be set down in a manner to bring out the essential points. Study Each Plan in Detail A brief describing each plan in de- tail is of the greatest possible assis- tance in making a thorough analysis. A person may think that a thorough analysis has been made. However, Such an analysis should be written de- 50 By H. E. Stocker scribing the operation step by step, concisely trying to cover every point with care. It is surprising how much is developed by this method of analysis that would otherwise be overlooked. The written analysis is useful in arriving at a plan of action which will produce the maximum profit. One essential point is to get the best bal- anced expenditure and profit. Writing out plans of operation en- forces fact thinking and honest minded facing of realities. To obtain the best profit results, every problem in man- agement should be analyzed without prejudice or desire for personal ad- vantage. Prejudiced or superficial studies can be as destructive to operating effi- ciency, accuracy of cost competitions and agreeableness of human relations, as superficial studies of a civil engi- neer can be dangerous for the safety and permanence of a bridge. Another method in attacking a prob- lem of this character which has proved successful is to submit the al- ternative plans to criticism of cap- tains, mates, the traffic department and anyone else who may contribute either facts or new ideas which will help to arrive at the most economical plan of operating the ships. It is often found that employes in incon- spicuous poSitions are in reality ex- perts on some particular subjects. Oc- casionally valuable information can be obtained from outsiders—equip- ment, salesmen, marine trade papers MARINE REVIEW—September, 1932 and engineers. Trust and receptiveness to ideas and criticism are the keynote of good management. Balancing Outgo and Income The primary function of a financial budget is to maintain a proper balance between financial requirements of a business or a part of a business. Ade- quate profits are best attained by spending money where it will do the most good. That can be determined with a fair degree of accuracy only by a carefully developed plan to which the name budget is given. Operating under a budget, all expenditures are made with reference to all other ex- penditures. Regardless of how much an expenditure may be justified, in and of itself, by a department head, the expense is not authorized until the expense is studied with reference to the request of all other parts of the business. In the same way a written analysis Should be made of every alternative plan for the operation of a fleet of ships to avoid accepting a plan that will fail to yield the maximum profits. This does not mean that business judgments are entirely avoided and the amalysis does everything. This method of attacking problems of ship operation is only an additional tool and assists in avoiding errors in judgment. Port time can be expedited in vari- ous ways: First, improved methods and facilities that may be provided