{"id":3653,"date":"1947-08-01T01:00:00","date_gmt":"1947-08-01T01:00:00","guid":{"rendered":"https:\/\/www.rbc.com\/en\/about-us\/history\/letter\/august-1947-vol-28-no-8-standards-in-business\/"},"modified":"1947-08-01T01:00:00","modified_gmt":"1947-08-01T01:00:00","slug":"august-1947-vol-28-no-8-standards-in-business","status":"publish","type":"rbc_letter","link":"https:\/\/www.rbc.com\/en\/about-us\/history\/letter\/august-1947-vol-28-no-8-standards-in-business\/","title":{"rendered":"August 1947 &#8211; Vol. 28, No. 8 &#8211; Standards in Business"},"content":{"rendered":"<div id=\"layout-column-main\">\n<p class=\"boldtext\">It is a long time since a Greek philosopher                     remarked that men cannot hope for success in life without                     a knowledge of standards, but it is just as true today, as                     it was 2,400 years ago. <\/p>\n<p> Standards help the school pupil, the beginner at work, the                     master craftsman, the shop foreman, the general manager and                     the president; they guide professional men and statesmen;                     they are of use to everyone in judging sports, work and goods                     for sale. <\/p>\n<p> There are people who rebel. They don&#8217;t like this or that                     rule, though a million others may approve it. If every rule                     and convention and standard objected to by someone were wiped                     out, there would be a state of confusion worse than that in                     Alice&#8217;s Wonderland, where people made up their own rules as                     they went along. <\/p>\n<p> Many volumes have been written on every phase of standards.                     These have set up new aims, clarified old ideas, and built                     ideals of high principles yet to be attained. This short article                     is designed to draw attention to only one kind &#8211; the kind                     useful in producing, buying and selling. <\/p>\n<p> Standards perform two functions: they enable us to identify                     goods and grades, thus buying with greater certainty of getting                     value for our money, and they enable the producer to make                     more goods with the same effort and investment, thus spreading                     commodities over a wider area at prices within the reach of                     more people. <\/p>\n<h3>What Is A Standard?<\/h3>\n<p> A standard is something established by authority, custom                     or general consent, a unit of measurement of some sort, against                     which an actual object or deed may be judged. The standard                     is something &#8220;right&#8221; or &#8220;correct&#8221; or &#8220;conforming to justice.&#8221;                     Standards are set for the basic units of length, weight and                     energy. There are standards for the nutritive value of food,                     the use of drugs, and safety in the preparation and packing                     of canned goods. Makers agree on standard dimensions of parts                     which must fit together, such as a light bulb and its socket.                   <\/p>\n<p> There are standards of identity, quality and quantity. The                     first describe the characteristics a product must have in                     order to be called by that name; quality standards measure                     the commodity against a mark indicating perfection; and quantity                     standards assert, for instance, that cans and jars must contain                     such-and-such proportions of fruit and liquid. When                     you buy silverware with a full-length picture of Britannia                     on it, you know that you are buying silver of the period 1697-1720                     which has 11 ounces 10 pennyweight of fine metal to each 10                     pennyweight of alloy. <\/p>\n<p> Dimensional standards have been reduced to very close limits.                     A wonderful technical accuracy, provided by expensive machinery                     operated by skilled workmen, cuts and grinds and fits adjustable                     parts true to the ten-thousandth of an inch. How different                     this is from the yard-length standard which was set by                     King Henry I in 1101, when he decreed that a &#8220;yard&#8221; should                     be the length of his arm! <\/p>\n<p> As we have moved along in mechanical knowledge, we have                     continued to trail in our wake some standards which would                     not be logical according to our present knowledge, but which                     are so woven into the web of our lives that they cannot be                     dispensed with. We measure steam and electric energy by horse                     power, and electric light by candle power. But new ways of                     measuring have been devised. For example, the United States                     Bureau of Standards broadcasts standard frequencies and standard                     time continuously from station WWV. These signals provide                     a common unit of frequency measurement both in the radio spectrum                     and the audible range, and a standard one-second time                     interval. This standard is checked astronomically, so that                     the error is less than one part in ten million. One practical                     use of the standard audible frequencies might be in tuning                     a piano. The tuner would carry his portable short-wave                     receiver to the job, and, using the standard frequency corresponding                     to A above middle C from the WWV broadcast, he could tune                     the piano to agree precisely with any other standard instrument.                   <\/p>\n<h3>Why Set Standards?<\/h3>\n<p> There are two ways of standardizing: we may standardize                     ourselves to unalterable facts around us, or we may standardize                     the outside facts. Some animals stay where they are in winter                     and grow thick fur to keep out the cold; others suit the climate                     to their taste by picking out the weather they want and migrating                     to where it is. <\/p>\n<p> There is no better example of standardization than in nature.                     Organized life would be impossible without it. Some persons                     may point to the wide differences between animals, birds,                     fish and plants, but it should be noted that within each species                     there is the most minute agreement of structure and function.                     If human beings were not standardized in their anatomy, there                     could be no surgery, because the surgeon would not know where                     to look for an organ. <\/p>\n<p> Upon this standardized basis there is built a great diversity                     of appearance, a circumstance which provides a hint for standardization                     in production and commerce. One of the most important characteristics                     of merchandise from the sales viewpoint is attractiveness.                     Nature shows that this need not be sacrificed when standardization                     is adopted. All the working parts, upon which efficiency depends,                     may be cast in the same mould but dressed in different ways.                     When a firm has the reputation of producing a dependable article                     which works according to a high standard of efficiency and                     length of service, then it does not have to stress this aspect                     of its goods, but can concentrate upon the competitive attractions                     of pattern and &#8220;frills.&#8221; <\/p>\n<p> Standardization is the key to mass production. In this sense                     it means using the same design to make parts so that they                     can be assembled readily into a completed product. The more                     standardized the product, the more continuous the operations;                     and the larger the scale of production within limits, the                     more cheaply and plentifully can goods be turned out. <\/p>\n<h3>Benefits Of Standards<\/h3>\n<p> In times of peace, standardization may mean that the manufacturer                     will have less capital tied up; greater volume of production,                     with lower costs; more efficient inspection and consequently                     better customer satisfaction; reduced accounting, record and                     office cost; and a more even flow of production providing                     improved service to purchasers in quality and in promptitude                     of delivery. It is obvious that a standard way of assembling                     a watch or an automobile will give better returns in terms                     of quantity and quality than a haphazard way. The problem                     &#8211; one of the most interesting facing manufacturers &#8211; is to                     know when to change the pattern. How far can the manufacturer                     of a washing machine go in keeping up with engineering progress                     and popular fancies without bankrupting himself by scrapping                     expensive tools? <\/p>\n<p> There are many benefits to the consumer through standardization.                     Let us start with one commonplace which is not enough emphasized                     &#8211; the fact that developments in science and technology which                     simplify production make it possible to place on the market                     many different commodities at a wide spread in prices, making                     them available to a broad range of customers. These buyers                     are given great freedom of choice, and even if they cannot                     buy all that they see they can select the items which will                     give them the greatest satisfactions. <\/p>\n<p> It is said that we could increase the purchasing power of                     our incomes by 25 per cent or more if the buying methods of                     individuals were as well developed as our methods of production                     and distribution. It cannot be denied that a more careful                     selection of goods on the basis of their ability to satisfy                     specific wants would go a long way toward increasing the real                     income of any family. This would mean a change from emotional                     and uninformed buying to buying according to standards in                     terms of price, value and usefulness. That there is such a                     trend is evidenced by the increasing demand for information                     about the quality of products. Even if a woman buys a dress                     mainly for its style, she will be put out if it shrinks so                     badly on its first cleaning that she cannot wear it. <\/p>\n<p> Consumers cannot write specifications of what they want                     in the way of radios, typewriters, or clothing, and then call                     for bids, but they can have their own ideas of what they desire                     and check these against the standards of the products on the                     market. &#8220;They will naturally wish to know: What quantity do                     we get? Will it do what I want it to do? Is it efficient?                     Is it safe to use as I intend to use it? What is its worth                     relative to other things? <\/p>\n<p> Any housewife can illustrate the pertinence of these questions.                     She cannot standardize her work in the kitchen unless the                     things she uses are standardized. The ingredients of a cake                     must be so uniform that a level teaspoonful from one package                     today will give the same result as the same quantity from                     another package of the same brand yesterday. The housewife                     must know what to expect of her electric apparatus in the                     way of load-bearing and performance. She cannot test                     every article bought, and so she must rely upon the standards                     of the manufacturer. <\/p>\n<p> It must be said that standards are only useful insofar as                     they are intelligently used by the consumer. A camera of a                     high technical standard may take wonderful pictures for the                     man who knows how to use it, while for an amateur it may be                     no better than a box with a pin-hole in it. Automobiles                     are built to certain standards, but one need only stand at                     a street corner to see how standard equipment can be abused                     by non-standard use. <\/p>\n<h3>Standard Sizes<\/h3>\n<p> Standardization can remove hazards and exasperation in other                     fields than those of quality and function. Take sizes, for                     example. Few persons wish to have their clothing standardized                     like uniforms, but everyone would welcome a uniform way of                     describing sizes. Ten years ago the United States Bureau of                     Home Economics measured 147,000 children, and as a result                     revealed that height and girth of hip are the best indicators                     of a child&#8217;s size, though age had been used from time immemorial.                     Under a standardized size-by-measurement system                     of buying clothes, fitting can be based on facts instead of                     such guess-work as &#8220;Judith is eight, but I think she                     takes an age ten.&#8221; <\/p>\n<p> This matter of intelligent sizing can be of economic worth                     to manufacturers and retailers. When size is taken for granted,                     because purchasers can rely upon a simple standard, the manufacturer                     can emphasize style and quality which are better selling points;                     he can operate with greater efficiency and lower costs, and                     consistent use of the same set of standards will promote trade                     confidence. The retailer&#8217;s stock will keep its appearance                     better, because there will be fewer try-ons and less                     handling. There will be fewer returns, not only to retail                     stores but to mail order houses. <\/p>\n<p> Next to sizes, since we are talking about clothing, wearing                     qualities, colour fastness and shrinkage resistance are important.                     It has been suggested that textile manufacturers, shirt makers,                     retailers and laundrymen should get together to establish                     a standard for, say, men&#8217;s shirts. Specifications set by a                     standard laundering method could be imprinted on the shirt,                     indicating that it would take ten, twenty, thirty or more                     launderings. <\/p>\n<p> Standards are important particularly to producers and tradesmen                     who take a long-term view of their businesses. They realize                     that customer satisfaction is the best builder of future sales.                     Consequently, people in business are realizing more and more                     the necessity of giving purchasers adequate information upon                     which to base judgments of value and usefulness. <\/p>\n<p> With top management aware of the need for high standards,                     and craftsmen working under the best practicable conditions,                     more will be accomplished through the state of mind permeating                     the plant than by all the gauges, instructions and inspections                     that can be devised. A man who knows the highest standards                     and best methods in his job, and has professional pride and                     a sense of craftsmanship, will not care to fall short of the                     best results. This was exemplified by the reputation won by                     the livery companies of the City of London. The Goldsmiths&#8217;                     Company received its powers of assay in 1327, and the &#8220;hall                     mark&#8221; of the Goldsmiths&#8217; Company is still of world-wide                     recognition on gold and silver plate. <\/p>\n<h3>Qualities Of Standards<\/h3>\n<p> Standards need to be simple, rational, permanent yet flexible,                     and definite. We need to translate all standards, contents                     of packages, warranties and warnings into language which can                     be understood by the consumer. Uniform grade names are wanted,                     so as to give consumers the information regarding quality.                   <\/p>\n<p> Standards must be choosen with care, because they tend to                     become permanent and in some fields might incline to freeze                     progress. It would be difficult to change such standards as                     weights and measures, the gauge of railway track, and the                     gauge of screw threads, though many of them could be improved                     if change were possible. Within an industry itself there is                     a different criterion. Standard machines and designs and methods                     are merely the best that are known at the time, and are subject                     to change whenever better tools and methods can be found.                     The standards in which the consumer is most interested &#8211; those                     of quality in the finished product &#8211; should have a permanence                     that can be relied upon. <\/p>\n<h3>Movements For Standards<\/h3>\n<p> Many movements which have been started toward creation of                     standards in various fields have succeeded well. Some are                     associated with trade interests, others with professional                     groups, and still others have no connection except with the                     welfare of consumers. In the first group are trade associations,                     better business bureaus, retailers&#8217; bureaus of standards,                     and magazine &#8220;institutes&#8221;. In the second group are such organizations                     as medical associations. In the third group are consumers&#8217;                     clubs and various women&#8217;s groups. <\/p>\n<p> After the first world war the Canadian Standards Association                     was set up by the Canadian Manufacturers Association, professional                     engineering societies and representatives of industry. It                     fixed standards which have been accepted in the electrical,                     metallurgical, and building and construction fields. The Canadian                     Engineering Standards Association was formed to co-ordinate                     the efforts of producers and consumers for the improvement                     and standardization of engineering products, to promote the                     general adoption of engineering standards, and to register                     distinctive marks and names applicable to materials or products                     which are in accordance with standards. Publication this summer                     of the Fifth Edition of the Canadian Electrical Code, Part                     1, is evidence of continuous work on nation-wide standards                     in the wiring of buildings and the installation of electrical                     apparatus. The National Office Management Association, which                     has branches in several Canadian cities, has set up a committee                     to consider standards in office furniture, paper, forms, records                     and procedures, supplies and business machines. <\/p>\n<h3>Canadian Standards Division<\/h3>\n<p> Canada, which was the first country to have special legislation                     for canned foods, has this year taken another step in standardization                     by setting up a Standards Division within the Department of                     Trade and Commerce. This Division has to do with standards                     for size and quality of commodities not already regulated                     by other government departments, and the &#8220;Canada Standard&#8221;                     symbol it will authorize (&#8220;CS&#8221;) will represent that the goods                     so marked conform to the requirements established under provisions                     of an Act of Parliament. Establishment of this Division means                     that specifications for textiles, clothing and household equipment,                     for example, may be set up, and manufacturers who meet the                     standards may use the national trade mark. The standards will                     be determined by the National Research Council, and &#8220;CS&#8221; will                     be a guarantee as to quality, size, quantity and genuineness.                   <\/p>\n<p> In introducing the new Division, the Deputy Minister of                     Trade and Commerce warned against expecting tremendous changes                     all at once. Adoption of standards will be purely voluntary                     and will come about as a result of agreement between manufacturers                     or because of consumer demand. &#8220;An essential part of the plan,&#8221;                     he said, &#8220;is to have such an enthusiastic acceptance on the                     part of buyers that there will be a real demand for products                     made to the prescribed specifications.&#8221; <\/p>\n<h3>Grading Of Goods<\/h3>\n<p> This new Division may establish grades for any commodity                     falling within its jurisdiction, and recommend methods of                     designating the grade. Many goods already are graded according                     to quality, and the grade is marked on the container or the                     article. This plan has several advantages. Buyers are informed                     in regard to the articles offered, and misunderstanding is                     prevented. Producers of high class merchandise are protected                     against the competition of poorer products. <\/p>\n<p> Beef, butter, fruit and other foods are graded under regulations                     established by the Dominion Department of Agriculture, and                     complete information is included in a booklet entitled &#8220;Buy                     By Grade&#8221; available free from that Department. <\/p>\n<p> Besides the satisfaction of knowing the quality of goods                     sold by grade, the housewife has the advantage of being able                     to select food economically. She may decide, knowing what                     the various grades mean, whether she should pay the extra                     amount for a higher grade, or whether a lower, cheaper grade                     will do for the purpose she has in mind. Some, of course,                     may suffer from what Dr. Paul Agnew, Secretary of the American                     Standards Association, called an inferiority complex which                     compels them to buy the most expensive grade always. This                     may appear laughable to practical-minded people who recognize                     that there is no sense in buying canned whole fruit if the                     purpose is to put it through a squeezer, but it is no joke                     to the producer. It is, as Dr. Agnew says, a good thing that                     the retail trade does a job of &#8220;softening this emotional situation                     for us by blurring for our vision the harsh grading lines                     which the wholesale market finds useful.&#8221; <\/p>\n<h3>Labeling Standards<\/h3>\n<p> A considerable number of manufacturers include useful information                     about the product on their labels. Purchasers are inclined                     sometimes to confuse grade marking with trade marking. These                     are not the same, though hundreds of manufacturers have established                     their trade marks as sure-enough grade marks. These firms                     have demonstrated the advantage of making the brand name or                     other designation a symbol of high standard merchandise, and                     it is not uncommon to hear people say &#8220;If it&#8217;s So-and-so                     (brand name) it&#8217;s OK.&#8221; Such a reputation built for a brand                     or trade name is worth many thousands of words of high-sounding                     phrases which convey no real information. <\/p>\n<p> It is not a simple thing to decide what information to include                     on a label. A statement of physical or chemical content which                     would be quite clear to an expert might mean nothing to the                     ordinary buyer, and it is difficult to translate technical                     data so that it will mean the same thing to all consumers                     and not be misleading. In some cases it is hard to get all                     members of an industry to agree on a standard form of language.                     The word &#8220;pure&#8221; may mean in various uses: free from blemish,                     unadulterated, sheer, or simply &#8220;good&#8221;. <\/p>\n<h3>Advertising Standards<\/h3>\n<p> Somewhat similar difficulties meet the manufacturer in advertising.                     It is axiomatic that if consumers are to get a maximum of                     satisfaction from their expenditures they should have an opportunity                     to appraise the probable satisfaction that will attend their                     choice. Consumers need advertising as a directory of up to                     the minute information about goods. Without advertising, large-scale                     production, wide distribution, low prices and a high standard                     of living would be impossible. But advertising performs its                     function only when it is educational, a broadcaster of news,                     and a dependable guide. <\/p>\n<p> Thoughtful consumers welcome precise, specific information                     about the product&#8217;s qualities and performance. They need all                     the facts which will help them to judge what is the best value                     for the money and most suitable for their needs. It is quite                     possible that greater attention to the making known of quality                     standards and durability of goods might contribute a vitalizing                     element to the advertising technique of concerns willing to                     be specific in telling qualities which their goods possess.                   <\/p>\n<h3>Standardization Difficulties<\/h3>\n<p> It would be strange if there were no difficulties in the                     way of setting up and operating standards. Even nature makes                     mistakes in carrying standardization too far. Having found                     how to reproduce things in great numbers, nature proceeds                     without reserve: look at the way dandelions, grasshoppers,                     bud worms and rabbits multiply. Each is perfect to its own                     standard, but there are too many of them. The fault is not                     in the idea of standardization, but in its use. <\/p>\n<p> Some persons fear regimentation. They confuse different                     aspects of things. Every man is standard, every tree is standard,                     and yet no two men and no two trees are exactly the same.                     It is inconceivable that Canadians should ever tolerate being                     fed alike, housed alike, clothed alike, but they might welcome                     standardization in the sense of a guarantee of certain specific                     qualities attaching to food, houses and clothes. <\/p>\n<p> A man will stand having his suit standardized as to the                     number of pockets and the number of buttons, but he wishes                     to choose his material and his right of decision as to the                     finer points of cutting and fitting. &#8220;His wife&#8217;s clothes are                     apparently standard only in the distance her skirt must be                     from the floor:&#8221; remarked K. H. Condit in an article in the                     Annals of the American Academy of Political and Social Science                     away back in 1928. (Around that time the height was hovering                     between 15 and 17 inches; fashion designers say that this                     fall&#8217;s late afternoon dress hems will be 10 inches from the                     floor). <\/p>\n<p> Freedom of choice and changing styles provide the greatest                     safeguards against useful standards degenerating into regimentation.                     Standards present facts upon which people can exercise judgment,                     but their judgment is moved by their desires. When consumers                     are willing to pay for variety and uniqueness there is no                     fear of manufacturers going too far in standardization. The                     consumer is not merely a customer: he is a compendium of biology,                     psychology, economics and many other sciences and some of                     the arts. A makeup like that does not lend itself readily                     or willingly to regimentation. <\/p>\n<\/p><\/div>\n","protected":false},"author":0,"featured_media":0,"template":"","categories":[1],"rbc_letter_theme":[],"rbc_letter_year":[27],"class_list":["post-3653","rbc_letter","type-rbc_letter","status-publish","hentry","category-uncategorized","rbc_letter_year-27"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>August 1947 - Vol. 28, No. 8 - Standards in Business - RBC<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.rbc.com\/en\/about-us\/history\/letter\/august-1947-vol-28-no-8-standards-in-business\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"August 1947 - Vol. 28, No. 8 - Standards in Business - RBC\" \/>\n<meta property=\"og:description\" content=\"It is a long time since a Greek philosopher remarked that men cannot hope for success in life without a knowledge of standards, but it is just as true today, as it was 2,400 years ago. Standards help the school pupil, the beginner at work, the master craftsman, the shop foreman, the general manager and [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.rbc.com\/en\/about-us\/history\/letter\/august-1947-vol-28-no-8-standards-in-business\/\" \/>\n<meta property=\"og:site_name\" content=\"RBC\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"18 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.rbc.com\\\/en\\\/about-us\\\/history\\\/letter\\\/august-1947-vol-28-no-8-standards-in-business\\\/\",\"url\":\"https:\\\/\\\/www.rbc.com\\\/en\\\/about-us\\\/history\\\/letter\\\/august-1947-vol-28-no-8-standards-in-business\\\/\",\"name\":\"August 1947 - Vol. 28, No. 8 - Standards in Business - RBC\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.rbc.com\\\/en\\\/#website\"},\"datePublished\":\"1947-08-01T01:00:00+00:00\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.rbc.com\\\/en\\\/about-us\\\/history\\\/letter\\\/august-1947-vol-28-no-8-standards-in-business\\\/\"]}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.rbc.com\\\/en\\\/#website\",\"url\":\"https:\\\/\\\/www.rbc.com\\\/en\\\/\",\"name\":\"RBC\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.rbc.com\\\/en\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"August 1947 - Vol. 28, No. 8 - Standards in Business - RBC","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.rbc.com\/en\/about-us\/history\/letter\/august-1947-vol-28-no-8-standards-in-business\/","og_locale":"en_US","og_type":"article","og_title":"August 1947 - Vol. 28, No. 8 - Standards in Business - RBC","og_description":"It is a long time since a Greek philosopher remarked that men cannot hope for success in life without a knowledge of standards, but it is just as true today, as it was 2,400 years ago. 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