ECONOMY (CO-OPERATION) DRIVE - I

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).

Hemen Parekh