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, 21 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).        

July 21, 1986

To:

Dear Friends                 

ECONOMY (CO-OPERATION) DRIVE


The first salvo has been fired :

Decision
Aimed at
All recruitment stopped
- Better utilisation of existing manpower (employee-productivity must go up ! )
Stop giving Calendars/Diaries
- Reduce Cost
No more gift-articles
- Reduce Cost
No more greeting-cards (our good wishes are always with them ! )
- Reduce Cost
VPs/GMs to travel by Economy-class
- Reduce Cost
10% cut in car-mileage of Covenanted Staff
- Reduce Cost
Cut down use of
-      Stationery
-      Telex/Telephone
-      Hired cars/office cars
- Reduce Cost
In Canteen
-      Eliminate Overtime
-      Eliminate Wastage
-      Reduce variety/frequency
-      Substitute expensive items (without reducing quality)
-      Increase employee-
-      productivity
       )
-       ) Reduce Cost
       )
If you must travel,
use transit-houses
(instead of hotels)
- Reduce Cost

Decision
Aimed at
Reduce Seminars/Conferences
- Reduce Cost
Stop/Reduce purchase of "indirect or supportive Capital Assets"
- Reduce interest-burden (less money to be borrowed from banks)
Stop purchase of photocopying machines
- Reduce interest-burden
Substitute (proposed) magnetic card attendance equipment with cheaper electro-mechanical equipment
- Reduce interest-burden on borrowed funds
Use "Standard" furniture
- Reduce Cost
Use cheaper quality of paper in all
-      publications
-      printed forms
-      stationery
- Reduce Cost
Cut down copies of newspapers/magazines
- Reduce Cost
Postpone aerial photo of Powai
- Reduce Cost
Switch-off fans/lights/ air-conditioners when not required
- Reduce Cost
Postpone IR study-visits to other companies
- Reduce Cost
Reduce lunches hosted at Lunch cottage
- Reduce Cost
Reduce water consumption by throttling
- Reduce Cost
Apply only one coat of paint to buildings (in place of two)
- Reduce Cost

This list is not the "end" - the battle has only begun!

In the meantime I welcome suggestions from employees on

-      Cost-reduction (without sacrificing desired quality! -  very important)

-      Productivity improvement.

And I request Supervisors and  Managers to encourage employees to come up  to them and share their suggestions  - so that the same are implemented even before they reach me '.

And I request managers to tell me what they have  implemented successfully  in their areas -  so that I  can give these  wide publicity through my letters.  May be others can  do likewise.

"Therefore, with  determination, get up  and fight  - 0 Arjun" (Gita).


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