Dear All, We are working on cost reduction. Kindly suggest. Regards, mili
From India, Vadodara
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23From India, Vadodara
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Until and unless we know your expenses pattern, how can we suggest cost reduction? You can concentrate on manpower optimization, transport, telephone, mobile, travel, stationery, etc.
Regards,
Kamesh
From India, Hyderabad
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Regards,
Kamesh
From India, Hyderabad
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Dear Sir, We are automobile sector. We have already started working on manpower optimization, transport, telephone & Mobile, Travel, Stationery etc. mili
From India, Vadodara
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From India, Vadodara
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I would recommend you to look into the Lean management concept. That's the best way one can reduce organizational waste. I would personally suggest searching for some Lean Management case studies so that you can understand how an organization effectively implements Lean Management.
Try the 'HOTELHRM' website for Lean Management case studies.
Thank you.
From India
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Try the 'HOTELHRM' website for Lean Management case studies.
Thank you.
From India
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Sub-Cost Reduction
These are some ideas on cost reduction:
1) Find out space management in your company - whether it was benevolently used, calling for unnecessary electrical charges on account of lighting, air conditioning, and fans, etc.
2) Find out whether any telephone connections are in excess.
3) Streamline private calls made from the company's telephone by staff.
4) If the company is incurring any costs on OD activities, find out which of the activities are less effective or productive, weed them out.
5) Explore the possibility of organizing staff birthday celebrations as a common function once a month rather than celebrating each individual employee's birthday.
6) In this era of electronic communication, you can save a lot of stationery. Therefore, purchase only such stationery which is essential for their preservation in physical form like agreements/contracts.
7) Explore the possibility of pooling cars for executives.
8) Ask the employees to switch off lights and fans whenever they leave their seats for lunch or leave their place of work. Similarly, lights in the washroom can be switched off when not in use.
B. Saikumar
HR & Labour Law Consultant
Chipinbiz Consultancy Pvt. Ltd
Mumbai
From India, Mumbai
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These are some ideas on cost reduction:
1) Find out space management in your company - whether it was benevolently used, calling for unnecessary electrical charges on account of lighting, air conditioning, and fans, etc.
2) Find out whether any telephone connections are in excess.
3) Streamline private calls made from the company's telephone by staff.
4) If the company is incurring any costs on OD activities, find out which of the activities are less effective or productive, weed them out.
5) Explore the possibility of organizing staff birthday celebrations as a common function once a month rather than celebrating each individual employee's birthday.
6) In this era of electronic communication, you can save a lot of stationery. Therefore, purchase only such stationery which is essential for their preservation in physical form like agreements/contracts.
7) Explore the possibility of pooling cars for executives.
8) Ask the employees to switch off lights and fans whenever they leave their seats for lunch or leave their place of work. Similarly, lights in the washroom can be switched off when not in use.
B. Saikumar
HR & Labour Law Consultant
Chipinbiz Consultancy Pvt. Ltd
Mumbai
From India, Mumbai
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Further to optimum utilization, one member has aptly suggested adopting Lean management. Lean management is nothing but:
1. Reduction of non-conformances
2. Waste elimination
3. Project partnering or alliancing with stakeholders
4. Training
5. Value mapping
6. Enforcement of HSE standards
7. Empowerment of frontline supervisors
Pon
From India, Lucknow
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1. Reduction of non-conformances
2. Waste elimination
3. Project partnering or alliancing with stakeholders
4. Training
5. Value mapping
6. Enforcement of HSE standards
7. Empowerment of frontline supervisors
Pon
From India, Lucknow
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Excellent post there.
Mili, what exactly is the mandate for you? What are the deliverables expected from you? Objectives? KPIs? Let me know, and maybe I could help you.
To give you some background, I am a Lean Management Consultant Grade A under the Government of India.
From United States, Daphne
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Mili, what exactly is the mandate for you? What are the deliverables expected from you? Objectives? KPIs? Let me know, and maybe I could help you.
To give you some background, I am a Lean Management Consultant Grade A under the Government of India.
From United States, Daphne
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Hi Mili,
Cost reduction does not fully mean that you concentrate on items like switching off the lights, AC, etc., but to enhance productivity to maximize profits. You may reduce costs by "increasing efficiency to maximize profits," and I feel that Lean Methodology is the best tool available to support any organization (e.g., Mfg, Service, etc).
For your reference:
When do I use Lean?
The ideal time to begin utilizing Lean principles is after your key business processes have been defined and before a Six Sigma project pool has been developed. Value Stream Mapping identifies which method of improvement will achieve the greatest results immediately. Some business processes need to be leaned before applying Six Sigma to eliminate variation. Others require a complete redesign or the development of a new process using Design for Six Sigma (DFSS).
Find attached the diagram - Lean Valuestream.
From Saudi Arabia, Jiddah
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Cost reduction does not fully mean that you concentrate on items like switching off the lights, AC, etc., but to enhance productivity to maximize profits. You may reduce costs by "increasing efficiency to maximize profits," and I feel that Lean Methodology is the best tool available to support any organization (e.g., Mfg, Service, etc).
For your reference:
When do I use Lean?
The ideal time to begin utilizing Lean principles is after your key business processes have been defined and before a Six Sigma project pool has been developed. Value Stream Mapping identifies which method of improvement will achieve the greatest results immediately. Some business processes need to be leaned before applying Six Sigma to eliminate variation. Others require a complete redesign or the development of a new process using Design for Six Sigma (DFSS).
Find attached the diagram - Lean Valuestream.
From Saudi Arabia, Jiddah
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