OPERATING AND ADMINISTRATIVE ECONOMIES
So far, attention has been devoted to the consideration of changes in the broad pattern of the Railways' activities, but the large scope for economies by improving the way in which things are done is not being neglected. It is impossible to describe all the steps which are being taken, but since it is not very convincing merely to mention the matter without giving any details, some of the more important and interesting activities are touched upon below.
Railway costs are, to a predominant degree, incurred on a time basis, over 60 per cent. of the total is the cost of manpower, and the greater part of the remainder is the cost of providing equipment. Costs which are the equivalent of raw material cost in a manufacturing industry are comparatively small. There are, therefore, real opportunities for cost savings by improving the effectiveness with which men and machines are employed. For example, great scope for economy lies in the improvement of utilisation of locomotives, wagons, containers, coaches, cartage vehicles and the staff associated with their use and maintenance.
An important element is maintenance. Maintenance practices are being subjected to much closer control, and, helped by the reduction in the steam locomotive fleet and the elimination of the older types of wagon and coach, the annual burden is already being very considerably reduced.
The workshops are being rationalised and, apart from the fall in the work load which is already taking place and which may be accelerated, this will result in a reduction of £4 m. in standing charges by 1966.
There is considerable scope for the introduction of mechanical handling equipment to deal more efficiently with existing traffics. The assistance of expert consultants in this field has been enlisted to study methods of handling and carrying parcels and freight sundries. Worthwhile improvement, leading to increased efficiency and greater reliability of service, is expected.
Progress is being made in rationalising the multiplicity of specifications for equipment, materials and stores. This should lead to cost reductions on components manufactured in the workshops and price benefits on purchases from suppliers. A saving of only 1 per cent. on purchase prices for materials would represent £1 m. per annum. Reduction in stocks of stores is being actively pursued and, during 1962, the capital tied up in this way was reduced by £15 m.
In 1961, operation of the railway-owned road vehicle fleet cost £22 m. Study of existing operating practices, standardisation, and improved maintenance techniques should reduce the fleet and improve operations and service. In this field also, the help of experienced operators has been sought. Already it has become apparent that any extra cartage arising out of line and station closures can be undertaken without any addition to the total fleet and staff.
In 1957 an agreement was made in regard to manning of diesel and electric locomotives and multiple units. The contribution made by the Unions was of considerable value. The rapid development of the new forms of traction makes it desirable to seek agreement to further progress in the field of train manning, and discussions are taking place.
Maintenance of signalling equipment, production and repair of wagon sheets, creosoting of timber, quarrying, and concrete component manufacture, are all examples of widely diverse activities associated with the railway, which are being subjected to study and thought.
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