The severe financial crisis has forced almost all companies to adopt various cost-cutting strategies. We begin a new series where we outline the measures undertaken by different companies.
Here's how Ashok Leyland employees have helped their company cut costs. Tell us what your company is doing.
Employees of Ashok Leyland, a Hinduja Group company and the country's second largest commercial vehicle manufacturer, have helped the company save Rs 1.67 crore (Rs 16.7 million).
The company had implemented 'GEMBA,' a programme to encourage employees to come out with new innovations, at its Ennore plant in October 2008. Following this, it was able to save money and reduce the inventory level to Rs 90 crore (Rs 900 million) from Rs 120 crore (Rs 1.2 billion) a year ago at this plant, said K Sridharan Balaji, general manager -- manufacturing, Ashok Leyland.
These innovations by employees will conserve Rs 90 lakh (Rs 9 million) each year as recurring savings, including Rs 40 lakh (Rs 4 million) from three projects -- interconnecting cooling towers, endogas chambers and gear machining process, he added.
Around 780 projects were conceived since October 2008 to find ways to reduce the processing time, increase productivity and save energy. Of the total projects, three main projects at its heat treatment shop and gear shop saved around Rs 40 lakh (Rs 4 million).
Is your company cutting costs?
How is your company coping with the financial crisis? What are the cost-cutting measures that have been implemented? How has it affected employee morale?
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