Manufacturing & Engineering Professionals |
Construction Planning & Management |
Project Management ++ |
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Activity:
793 views;
last activity : 07 06 2010 20:18:09 +0000
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Cut cost on tarvel, parties & perks
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Cut top management Salaries
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Cost reduction by Energy Savings
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No to Cost cutting
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By managing 3ms
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Improvement through Productivity
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Business & IT Innovation & Solutions
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Cutting Down Expenses For company & self
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Review, Revise, Review, Revise (The Budget)
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Manage to time of works & workhours , company travelling cut, also cut exhibition cost, cut sales party cost
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Production/Marketing and Sales
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Reduce Resue Recycle and repair - Education across the supply chainm
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Outsource & cost cutting
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Out Source your requirements
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Look at outsourcing IT
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Plan changes
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Value addition
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Save on whatever possible....
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reduce pay scale
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We need to realize the situation.
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We need to realize the situation.
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Hire interns
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It's Possible
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Unpaid holidays
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Sacrifice half salaries to overtake recession
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Sacrifice half salaries to overtake recession
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Increase Holidays
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Redeployment of manpower
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Reduce Resue Recycle and repair - Education across the supply chainm
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Awareness to all whomever think to support their company
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Being More Agile
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Motivate each and every member of the company to co-operate in this very time.
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How companies can go about cutting cost during economic slowdown
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Think that you are the owner - Profit or Loss will effect you any way.
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Multipurpose employees
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Companies should restrict business
travel, cut down on grand lunches, & extra perks in these tough times. Employees will also understand, the need for such measures in these tough times and will co-operate.
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I support your idea
I agree to the point of controlling cost on Travell and Parties...
We can see that the employees who has approval of flight travel has come to First AC travel, also there has been a cap on various allowances..
I would also say that first companies need to identify the areas where they are spending unnecessarily.Mostly they need to cut on their travels as top executives generally travel bu business class which costs a big amount to the company.
Secondly they can reduce the increments that they are providing to their employees and the lavishing parties that they are used to celebrate their successes.
In all they need to cut costs on their travels, parties, and increments.
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Let the top management bear the brunt first. They earn much more than the lowest
wage earner in a company in good times, they should be the ones who take the
first blows when the times go bad. Top management should normally cut
their salaries, followed by the next layers in strict sequence and only
finally, will the lowest wage earners be asked if they too would
volunteer to reduce their salaries......
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yes i aggree on this but the same time the mangement also shar on the loss
I think its a great & really feasible idea, the cost cutting should start from the top management. Also, the remuneration of the top executives will be much higher than the middle & lower management employees. This move can help in reducing the lay off of employees. I hope all companies take this forward and avoid lay offs and keep the economy going.
At the good times of business they are earning the much more than they deserve.............instead i think other peoples should be praised in terms of perks in good times........
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A greater cost reduction impact can be achieved by instilling awareness
of energy saving measures like turning off the printer when not in use
or keeping the tea vending machine off during certain times of the day....
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There is huge potential of cost cutting by energy saving. We can go for short term solution like working from home, use lighting with timer circuit etc. These are many such things which can be done. However, these are things dependent type of industry, location of work, country etc. Best this is to do a study or investigation by autonomous energy manager. This will give us a specific solution for our case.
Other thing is long term things like building an energy saving offices, use energy efficient electrical equipments, use latest technology etc. Again it is related to type of industry, location of work, country etc.
Operation cost of a company with 200 employees is 10 Lakh per month.
If we save energy by shutdown/switch off monitors/pc and unnecessary lights, the operation cost will come down.
That too in Karnataka, Electricity prices are highest in the country.
This is really a great idea that companies should practice. We could save nearly 15-20% energy costs by implimenting energy saving initiatives across our company.
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The cost cutting is a tactical measure we need to think of company in terms of strategic growth. I hope rather than cost cutting we can think in terms of the cost distribution how good we follow the process and trim down ineffeciencies and zero defect manufacturing, This will make all the sector of the persons happy employees, customer and also the market. So i believe rather than cost cutting lets think in terms of effeciency and make the cost a reasonble one. I hope this helps
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By managing Man , Material and Machinery properly the production increases automatically. |
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I fully agree with bhim that man, material and machinery are the three importtant things that can reduce the costs.
Many time it is seen that people engaged for a perticular job don't perform their job properly.People don't pay proper attention about Material purchased to be used and mechinary goes running without any production. So Man, Material and Mechinary should be managed properly.
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First of all we have to study the cost heads after that we have to find out major cost factor then we can make improvement plan to reduce cost.
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It is right because no two organization can be identical, their wastages, resources, strengths will be different. Therefore the organisation has to see its cost heads first and then improving thru kaizens is good idea.
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Hi All Most of us have put across all the valid points. Company wants to do the same business revenue but wants to reduce the cost. So all of us have given various option. Which will lead to cost saving but we need to keep in mind the company does not want to lose the revenue if it is flowing. So with reduce human capital, opertional perks, travelling perks, motivation perks, but still we are expected to perform the job better and to generate more ROI. This were I feel we need to have IT innovation or solutions which is unique or address the ways to stop the leakage of revenue, reduce the expenses/cost incurred by using the technology more efficent. Also this will work, only if the mindset also needs to change. So it bolis down, Change in Mindset (Innvoation in Business Process & IT process) Note: Now it is common for most of the companies to adopt yo Blue Ocean Strategy to capture the market or business. |
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First of all the present situation to be explained to each and every one of the company. It is necessary to cut all extra expenses like Parties, entertainment, outings, advertisements, etc Secondly curtail the allowances like extra benefits, get togethers etc Thirdly slab wise curtail the salary, promo etc (bypost phoning it) By giving all hikes/promo only litterally |
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This also correct. Cut down the expenses. Our groups hire costs analyzes to review each year our spending and to cut costs. Last cut saved over 90 % of expenses in a plan that took 2 years to exercise. It takes time and experience to know what to cut and when. Your staff wont be any help due to ax sharpening affects.
We found our current suppliers would meet the others 'wholesale pricing' .It was amazing to see just how much extra money we wasted in small areas. added together, the numbers showed flexibility, which allowed us to strategically maneuver out from under painful contracts, that reduced business flow. Find weathered mentors and always look outside the box.
You have a responsibility to your customer to adapt, in all times. Once your company runs in the green , your company position as elevates quickly in your company to the top. It is amazing and very eye opening, from personal experience.
One thing you must sell off is your ego.......
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We always work under the preconcluded norms and while we review and revise the budget carefully we will be able to identify so many cost cutting points which we will feel appropriate year after years. If difficult better review the budget on the basis of following
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Manage to time of works & workhours , company travelling cut, also cut exhibition cost, cut sales party cost
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Manage to time of works & workhours , company travelling cut, also cut exhibition cost, cut sales party cost , teses are the idea of cutting cost during economic |
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also cut to toper salary & cut of directors salary & traveling cost
also cut to toper salary & cut of directors salary & traveling cost
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The biggest contributors for cutting cost during economic slowdown or otherwise are: 1. Reduce Cost of Production.Find out which element is contributing more towards cost of production then the standard industry norms and trim down that element. 2. Increase sales of Value added products which gives you higher NSR or Contribution.Even if your overall sales reduces the % sales for products giving higher NSR/Contribution should be increased. All other factors like travel expenditure , reduction in salary,misc. administrative expenditure are more for publicity sake and not actually meant for serious consumption. |
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My dear friends have mentioned every thing that needs to happen when there is recession . One of the other ideas which they have forgotten would be to reduce the costs of your products selling in the market and this can be done through innovative ways like reducing costs in packaging, practising sustainability among our supplier and see that they save on costs on their companies like eneergy water waste so that they can get profits which can be puped back while making our products . Products must be affordable to the consumer during recession and the main reason for this is price |
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Definitely Ramesh i support you.Reducing the cost of your product to make it affordable for the customers will go a long way in retaining and attracting new customers during recession.But one thing i would like to discuss is don't you think reducing the price means you will also have to degrade the quality somewhat and that will not be a good idea to follow.
Want to cut cost, think about reusing. Company/organisation should make sure that the material that can be reused should be reused rather than just spending more on materials.
Ramesh great way to reduce/ cut cost during economic slowdown ... +++++
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Outsource the non-productive and the secondary functions these are generally in the vicinity of the top bosses, management support functions. They can share the secretary, etc. Reduce the number of employees on direct payroll and include most of them as consultants, who would be paid on the work done. Increase the variable component of the salary, revisit the salary structure. Go for compulsory no. of holidays unpaid to the employees. Sourcing of your raw materials, intelliggent sourcing and favourable terms of payments. Cut down on perks, allowances. |
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1. All repetitive tasks to be contracted out 2. Maintainence and Operations to contract out to experts
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If the support systems or the back office that supports your field employees, supervisors and accounting function have traditionally been all in-house, you may be adding to your company with the expense and risk of maintaining a network of computers and peripherals which is unnecessary. New advances in telecommunications make it not only possible, but attractive, to outsource large chunks of your IT systems through data warehousing, vendor management and many other areas.
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If companies maintain a 5yr and a 10yr forward plan, then when the slump happens or thing go differently than planned then make adjustments on each plans to work through the down time to maximize or maintain Stock Holder's value.
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Cost can effectively reduced by devising means to add more value.
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Saving on variable costs and consumables can add drastically on cutting cost for a company.... |
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by reducing benifits of employees not by terminating. reduce the pay scale and don't add additional employees, and get work done with present employees.
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We need to realize the situation. If we are able to understand the situation then surely we will act according to demand, So very 1st its necessary to understand where we are? and what are the region behind that? And how a individual can contribute!
If we understand our contribution then definitely we can help an organization and things will move smoothly in +ve direction even during economic slowdown. |
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We need to realize the situation. If we are able to understand the situation then surely we will act according to demand, So very 1st its necessary to understand where we are? and what are the region behind that? And how a individual can contribute!
If we understand our contribution then definitely we can help an organization and things will move smoothly in +ve direction. |
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I feel companies should hire students in a work experience program, which is a great option if company has full of experienced players. Students get great mentorship
and companies get low cost help...
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As old says that there are two ways to surive with money..either earn it more or save it as much as possible..it is similarly applied to any kind of organisation..Senior managers may have to cut their organisation expenses or earn more revenues. And they can do so by encouraging employees towards innovative ideas for new products or existing one. There are no. of employees who could have turned this recession period into opportunity gaining period. Such as Narayan Murthy of Patni. |
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Recession is a good time to trim the workforce and cut the additional
costs borne by the company. Pay-less or unpaid holidays is one of the methods to
cut cost. Even though companies are making profit, it can take
advantage of the recession to cut additional costs and work force...
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IT people has enjoyed profit of their organisation and its time to take part of the loss in their organisation. IT people has earned lot for their luxuries life. So its not a matter to sacrifies half of their salary for three to four months will not affect their life. After the end of recession, they will be feeded with promotion and appraisal. Eventhough its not a promise, let's employee can sacrifice for their organisation. |
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IT people has enjoyed profit of their organisation and its time to take part of the loss in their organisation. IT people has earned lot for their luxuries life. So its not a matter to sacrifies half of their salary for three to four months will not affect their life. After the end of recession, they will be feeded with promotion and appraisal. Eventhough its not a promise, let's employee can sacrifice for their organisation. |
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In india many companies have six day working week. insted of loosing good employees by cutting job we can encourage them to take extra planed and unpaid holiday every week. ie employee will have to work for 5 days and employer have to pay for six days(including weekly off) this way we can bale to deduction of four days salary cost per employee by rescheduling our production targets and works.
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Frezing on the recruitments and redeployment of the manpower into the department where the need is felt.
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My dear friends have mentioned every thing that needs to happen when there is recession . One of the other ideas which they have forgotten would be to reduce the costs of your products selling in the market and this can be done through innovative ways like reducing costs in packaging, practising sustainability among our supplier and see that they save on costs on their companies like eneergy water waste so that they can get profits which can be puped back while making our products . Products must be affordable to the consumer during recession and the main reason for this is price |
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I feel the first thing we need to make understand (Awareness)our employees that how bad our business trend has been affected and we need to get the idea from them by cost reduction in various aspect like continous improvement Ban all the vechile facility ,entertainment ,Extrra items in food,Extra wages and Over time works Secondly Enery saving will help to support the economy of the company like By switch off the lights and computers whareever not necessary at all the times, Thirdly by analysing the performance of the each employee and kick out the employee with Zero output Send home the High paid salaried employees with Zero contribution towards the success of the company try to reduse the Casual labour and trainees whare ever no supportive |
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supporting your internal needs of your staff builds loyalty. Sure some staffing measures can be reduced, but work load and performance will decrease, and have a negative impact adding to your already growing problem
You can make things more affordable, kill the soda machine to our programing divisions, and all NOC staff. We replaced with coin fed machine, and cold and hot water, and added coffee which was cheaper and just as "affective".
We found out they still had to have the mass dew and atmosphere to get code, period. We buy them 3 litter bottles instead of expensive 16 ounces at a time. They save more money now and still get their needed perk.
If you trim too much, you can make it so your company can not handle its clients, and the self destruct sequence has been started.................
a ceo from the trenches of the world
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In india we see a lot of time and money being spent on project management .. I dont say that we sloud get out of it but we need to find out a way to cut the bureaucracy and get to the real work
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Each and every member of the company should consider the whole company as the family. In the end, it is mental motivation that will make the workers more entusiastic and they will co-operate in every major step that the company takes-whether it is salary cut or work overload.
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Dear friends, All of you have given wonderful ideas, I think in companies where work is not enough, the employees should be allowed to go on for long leaves, working should be reduced to 6 hours a day or 3-4 days a week. The balance hours can be utililized when the situation improves. Many companies are using this slow down time to give trainings to their employees Seniors are training juniors in areas where they feel that juniors are lacking critical skills. Moreover diversification in related areas is still a good option because there are still many areas where the impact is not killing. |
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Profit or Loss starts with saving in Kidy Bank...........to............ Mega Acquisitions. Cost cutting need not be only monitory watch, it can be even Time Management, Effective communications, Healthy work culture......... the list goes on.
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In difficult economic market times, we are all trying to do more with less, so we can apply this same thinking to our staff also. Maximum productivity from each employee is one option. One way to approach this challenge is to identify workers that can serve in multiple roles and eliminate downtime while they are waiting on another key task in the critical path of construction to complete.
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