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