RI 3461 Time Study Analyses - Progress Report 1. Quarry Shovel Loading ? Introduction

Profits in the crushed-stone industry, as in any other, represent the difference between selling price and production cost. When consumer demand increases rapidly, as occurred in the crushed-stone industry from 1918 to 1927, selling prices tend to rise. Cost of production usually rises, also, owing to the expense of expanding facilities, searching for and developing new quarries, and purchasing, installing, and operating new equipment. Frequently, also, the inattention of managements to the details of operating costs is responsible for their increase. This is not due to negligence but rather to the necessity of confining attention to the problems involved in producing material to supply orders. When market conditions change and consumer demand becomes stabilized or contracts, the producer r s attention usually is directed to assuring the orders necessary to keep his enlarged facilities busy. Hence, competition increases and soiling prices decline.