Hi Friends,
                                              Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do.
                                                  There is just no time to look back, no time to wonder,"Will anyone read these pages?"
                                       With regards,
                                       Hemen Parekh
                                       27 June 2013

Monday, 28 July 1986

ECONOMY (CO-OPERATION) DRIVE

Synopsis: Communication For Productivity
Letters written to some 7500 Workers / Managers / Union Leaders, following a period of strike / Go slow / Murders (1979 - 1987), at Mumbai factory of Larsen & Toubro Ltd. This direct / open / honest communication led to a remarkable atmosphere of trust between Workers and Management, which, in turn, increased productivity at 3% per year (ave). 

28 July 1986

To:

Dear Friends                 

ECONOMY (CO-OPERATION) DRIVE


While  I am  waiting  to be  flooded  with  suggestions  - and decisions -  I took the opportunity  to explain  the "why" and "how" of the  economy drive to  the Works Committee  - on 13th July.

WHY ?

A.  Our profitability has been  declining continuously for the     past few years.





HOW ?

By  increasing all-round  productivity, of  all  resources and inputs.

"Productvity is a Many-Splendoured Thing"


TARGET

1.  Profitability        (PBT   )                       =     to go up to 15%                     
Sales                           (from 7.7% in 84-85)

2.  Wage Bill_________(Powai + Madh)  =     to come down to 15%    
   Stores crediting(at Sales                                 (from 26.0% in 84-85    
Value ) - (Powai + Madh)



I have  distributed some charts/data  to members of  the Works Committee.    If  he   does  not   volunteer  to   share  this information  with you,  go and  ask  him  (during lunch-break-surely  you  do   not  wish  to  waste  one   minute  of  your "productive-time" !).

If you do not  know who represents your  department/section on the Works-Committee,, ask your Foreman/Supervisor.

In the meantime, I have already shown,  to some 50/60 foremen/ supervisors, a film called,

    "PEOPLE & PRODUCTIVITY: WE LEARN FROM THE  JAPANESE".

I will be showing it to the rest within the next 4 weeks.

An in  case you are willing  to stay-back after  working hours in order to  see this film, just phone  cynthia/Manju on extn. no.  497 and   give your  name,  P.S.   no., and  cost-cent re/ department.   As  soon as  I  have  received  20 names,  I  am willing to  show this film to you personally  and discuss with you what we can learn from the Japanese.


H.C. PAREKH

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