“The Methods of Industrial Management.”

— Hugo Diemer

A committee of the American Society of Mechanical Engineers made an extensive canvass in the fall of 1912 to determine what were the new elements in modern management as well as what the committee designated as the regulative principles of industrial management. The committee confirmed Adam Smith's statement made in 1776 in his Wealth of Nations, in which he held that the application of the principle of division of labor was the basis of manufacture. The committee also agreed with Charles Babbage, who in his work entitled Economy of Machinery and Manufacture written in 1832, added another principle, namely the transference of skill.
1921, p. 10
Factory organization and administration, 1910

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Hugo Diemer9

American mechanical engineer 1870–1937

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“The Methods of Industrial Management. — A committee of the American Society of Mechanical Engineers made an extensive canvass in the fall of 1912 to determine what were the new elements in modern management as well as what the committee designated as the regulative principles of industrial management. The committee confirmed Adam Smith's statement made in 1776 in his Wealth of Nations, in which he held that the application of the principle of division of labor was the basis of manufacture. The committee also agreed with Charles Babbage, who in his work entitled Economy of Machinery and Manufacture written in 1832, added another principle, namely the transference of skill.”

Hugo Diemer (1870–1937) American mechanical engineer

(1921, p. 10)
Factory organization and administration, 1910

“The prominent element in present-day industrial management to be: the mental attitude that consciously applies the transference of skill to all the activities of industry.”

Hugo Diemer (1870–1937) American mechanical engineer

(1921, p. 10); Diemer quotes the ASCM committee
Factory organization and administration, 1910

“Management of an industrial company must be giving targets to the engineers constantly; that may be the most important job management has in dealing with its engineers.”

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Source: Made in Japan (1986), p. 168.

“Engineers, scientists, and statisticians have, until recently, been the groups chiefly interested in activity called quality control. These technologists have been primarily concerned with the technical methods which have become associated with the subject. They have applied these methods to a number of industrial quality problems.
Excellent results in improving quality and in reducing costs are now being reported from these applications. These reports have generated growing interest by industrial managers in the potentialities of quality control as a business method.
What, management is asking, is meant by the term "quality control"? Is there anything really new about it? What are the quality-control activities? What is the proper organization for quality control? How much does the program cost, and what benefits can result from it? Is quality control good only for mass production? May it be useful in a job shop as well? How do statistical methods fit into the quality-control pattern? What does quality control mean to the foreman, to the design engineer, to the salesman? How is quality control introduced to a company?”

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“Cybernetics is still headline news, and increasingly we hear about its applications to new fields of scientific and industrial endeavour. Stafford Beer's new book Cybernetics and Management is an admirable account on the relation that exist between cybernetics and the problems of management in industry [and]… covers a range of applications that have not previously been dealt with in print.”

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“It… has long been realized by those engaged in the work of installing scientific management, that transference of skill is one of the most important features(*)… The importance of transference of skill was realized many years ago. Studies in division of work and in elapsed time of doing work were made by Adam Smith, Charles Babbage, M. Coulomb and others, but accurate measurement in management became possible when Mr. Taylor devised his method of observing and recording elementary unit net times for performance with measured allowance for fatigue.
It is now possible to capture, record and transfer not only skill and experience of the best worker, but also the most desirable elements in the methods of all workers. To do this, scientific management carefully proceeds to isolate, analyze, measure, synthesize and standardize least wasteful elementary units of methods. This it does by motion study, time study and micro-motion study which are valuable aids to sort and retain all useful elements of best methods and to evolve from these a method worthy to be established as a standard and to be transferred and taught. Through this process is made possible the community conservation of measured details of experience which has revolutionized every industry that has availed itself of it.”

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Source: The present state of art of industrial management, 1913, p. 1124-5 ; (*) See Primer of Scientific Management, F. B. Gilbreth, p. 56; Psychology of Management, L. M. Gilbreth, chap. 8; Motion Study, F. B. Gilbreth, p. 36.

“The theorists of scientific management seem to think that the most subtle methods are indispensable for physical measurements, but for psychological inquiry nothing but a kind of intuition is necessary.”

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Source: Psychology and Industrial Efficiency (1913), p. 53

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Harold Wilson (1916–1995) Former Prime Minister of the United Kingdom

Leader of the Opposition

“The Methods of Industrial Management.”

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Hugo Diemer9

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