486 JOURNAL OF THE SOCIETY OF COSMETIC CHEMISTS ships, stock levels and purchasing problems. It is also vital, but not always appreciated, that the research chemist and the control chemist working in the laboratory must, and should, have a wider knowledge of the overall field of the activities of the company, and in particular the manufacturing department within that company. This is required because working for commercial organisations, for companies competing in a capitalistic field the predominant word and desire is profit. It would be wrong to fight shy of this word, for we all make our living because of it. It is necessary whether on the research side, plant development, production, or in an administrative capacity, to continue to strive to improve the profit picture. This paper endeavours to provide an introduction to various management techniques, philosophies and ideas which impinge on cosmetic chemists, or are required by those men in more administrative positions in our expanding industry today. PRESENT STATE OF INDUSTRY TODAY Over the past ten years the total potential purchasing power of the population has increased substantially faster than the population itself, and during the last ten years the rate of growth of the cosmetic industry in Great Britain has been substantially greater than that of the total con- sumer expenditure. For example, in terms of 1964 manufacturers' prices, total cosmetic sales have increased from about f44,000,000 in 1959 to about oe65,000,000 in 1964, an average annual rate of increase of 8%. Projecting this forward one would expect a cosmetic market of approxi- mately t100,000,000 in 1970 and approaching t150,000,000 in 1975. Therefore, if our companies maintain their share of the market they will have to increase their capacity and their sales. This in turn needs lively and energetic management and an appreciation of the problems by all concerned in the management team. Our industry is not a complex technical one. It requires more of common sense and a logical scientific approach in order to achieve success. Most companies when starting operations in England, whether they are backed by large American corporations or not, start from small beginnings, and it is necessary immediately to view and study the future. If as manufacturing management our company's future is not calculated to the best of our ability, first of all it will never be achieved, and secondly the manufacturing department will either be out-sold by the sales force or expensive stainless steel equipment will be purchased to no avail.

EXPANSION AND MANUFACTURING IN THE COSMETIC INDUSTRY So the first necessity is to plan in moderate detail our future require- ments in terms of space, machinery and personnel. This should be pro- jected forward definitely over a five year period and if large building operations and constructions are foreseen, it should be over a ten year period. Sales estimates can change and the product range will certainly be difficult to gauge, but from market research sources, it is possible to obtain and calculate as pointed out above, the size of the market add to this the internal knowledge within the company and it is possible to accurately gauge the share of the future market. On this must be based manufacturing requirements, and for space and building plan ten years ahead, for machines and equipment two to three years ahead, and for direct labour one year ahead. Bear in mind that our's is a fashion market, a market built on the desires, the dreams, the hopes and many times the indecisions of women. Stocks can be controlled by computers, mathematical models can be applied to the sales estimates, but in the end it is the woman who buys, and the woman has always had the prerogative to change her mind!! Therefore overall flexibility must be built into our operation and plans taken at all times as guide lines only. The comments in this paper will be based on a growing cosmetic manufacturing unit, and will discuss the problems and challenges it presents. In order to group these comments, the production side will be discussed first and then the other departments which are considered part of the manufacturing fi•nction, viz. processing, packaging, quality control, warehousing, inventory control, purchasing, engineering, industrial engin- eering. For the sake of simplicity a small production unit will be taken as one producing up to 25 million saleable units a year, a medium one between 25 and 50 million and a large unit over 50 million saleable units a year. PROCESSING It was stressed earlier that the technical side is not relatively complex this may be chemically correct but from a physical point of view, not quite true. Mixing can be a complex process, and in many cases not a great deal is known on the subject. However, it is usually possible to mix small quantities on larger equipment, and this certainly should be borne in mind in a growing concern. Half ton batches can usually be made on a ton mixer, so scale the equipment accordingly and in line with the future plans. In this manner capital investment over the longer period will pay off, and one will