Cost Saving and Cost Cutting

Cost Saving

Cost Saving Star of the Quarter!

Give a Cost Saving Idea and the best Idea will be rewarded with Rewards.

Amidst the competitive market conditions in the business world, cost savings becomes a necessity on which the organization can thrive and perform it’s function with ease. Bad Costs with little or no utility must be eliminated to free up resources to be used in full productive capacity. Best costs refer to costs associated with the unique elements of the company, the out of box thinking and its exuding true value to the customers.

Cost cutting is a beneficial act for the organization and its employees. The saved money and resources can be utilised to acquire better infrastructure, It can be put through in developing the working conditions for the employees,and in gathering equipment that can aid individuals accomplish work with less error, rewards and incentives.

Hence, we reward individuals who contribute ideas on Cost Cutting and help in implementing them thoroughly.  

Presented in the following lines,are some of the major aspects of the scheme:-

Purpose of the Scheme:-

The purpose of the scheme is to help the business and increase opportunities for all the employees. The money saved by the organization in executing the cost saving ideas, is invested back in the business.

Cost saving rewards:-

1. a) The Idea Reward (Monthly) – ‘The Idea Reward’ is presented to individuals who have supplied an idea worthy of implementation. Out of all ideas, the best three ideas approved by management as feasible are chosen. The contributing employees will be rewarded with 2 movie tickets.

1. b) Quarterly Actual Cost Saving Reward: The ‘Quarterly Actual Cost Saving Reward’ stands wherein the management reviews all the ideas and checks its implementation in a quarter. The idea which proves to be most cost effective and saves maximum finance in that quarter will be party to the reward. The parameters of Quarterly Actual Cost Saving Reward is set as 5% of money saved, upto 10,000. The reward will be duly paid after the idea has been carried through and the actual savings have been registered.

1. c) The Annual Grand Cost Saving Reward – At the end of the year, the management shall select the best suggestion or idea with implementation and that will be rewarded with  ‘The Annual Grand Cost Saving Reward’. The reward stands tol be 7% of the money saved up to Rs.20,000 in a financial year for the 1st position,5% upto Rs.10,000 for the 2nd position and 3% upto Rs.5,000 for 3rd position.

Cost-Saving Process:-

Timeline :- The expanded timeline for the submission of ideas extends upto the last date of the month then the suggestions (ideas) will be taken into consideration. 

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Access :- All the members of the organization can participate i.e. from the experienced and esteemed Managers of the firm to the budding beginners.

Prizes :- 

As stated above, prizes are categorised into three distinct spheres:-

1.  ‘The Annual Grand Cost Saving Reward’: 7% of money saved annually upto 20,000.
2.  The Quarterly Reward: 5% of money saved quarterly upto 10,000.3% of money saved quarterly upto 5000.
3.  The Idea Reward: 2 movie tickets  

Managers :- 

A Leader from each department shall be appointed whose role would include understanding the policies and communicating them to his subordinates.

Training of the Managers :-

 The leader would be made acquainted with the proper functioning of the scheme throughout the year and would be equipped to deal with challenges during the implementation of this policy .

Team Training sessions :-

Team training sessions shall constitute the appointed leader coaching his subordinates on the workings of the scheme.

The Idea Selection process :- 

The decision as to which idea is considerably best for the organization and will work towards saving the maximum cost shall solely lie on the discretion of the Management. 

Implementation of the idea :- 

The selected idea shall be implemented by every individual of the organization under the guidelines of the leaders.

Prize Distribution :- 

Once the annual savings are calculated during the last stage of the process, all the winners shall receive the due prizes and rewards.

 NOTE: All Nominations shall exclude the Machine improvement, cycle time reduction, kaizens and improvements related to machines.

COST SAVING FORM

खर्च बचत फॉर्म

Employee Name:

Department:

Mobile Number:

Type Of Suggestionसुचनेचा विषय:: Save Money रु ची बचत:□ Make operation more efficient and effective कामात सुधारणा व गतिमानता:□ Increase revenue उत्पन्न वाढ: □ Improve safety सुरक्षता मध्ये वाढ: □ Other इतर :□

Present Situation सध्याची पध्दत :

Suggestions:-(If required, do use separate sheets)माझी सूचना :

Specific actions for improvement (If cost required Pl mention)वरील प्रमाणे बदलासाठी उपाय व खर्च असेल तर त्याचा तपशील :

Benefits Of the Suggestion माझ्या सूचनेपासून होणारा कंपनीचा फायदा:

Suggester Signature:

For committee use::

1.Suggestion Accepted/Not Accepted

2.Committe coments_____________________________________________________________

___________________________________________________________________________________

Suggestion Implementation responsibility with target date__________________________________________

_____________________________________________________________________________

Award details__________________________________________

Signature of committee member:

Sample of the Cost saving suggestions trackers:

Sl No

1

2

Employee Name

Aalok Roy

Manohar Pawar

Department

R & D

Marketing/PPC

Type of suggestion

Save Money

Save Money

Save Money

Make operation more efficient and effective

Increase revenue

Increase revenue

Improve safety

Present Situation

A)For H105 project 47 Existing price is Rs. 23.43,B)Grommet existing price is 8

The rate for dispatching Walunj’s location is 6600 per trip.There are an average of 8 trips per month.Monthly Amount = 52,800.Annual Amount = 6,33,600

My Suggestion

The new suppler can give we 5.50 and 2.5 respectively

We are meeting a new transporter,he can Rate per trip = 6200

Specific action for improvement (If cost required Pl mention)

Nill

Nill

Benefits Of My Suggestion

Per bench, we will get a benefit of Rs 10 lakh.It has 4 benches.This will benefit Rs 40 lakh.

This will benefit Rs 3,200 /monthly & 38,400/yearly.

Suggestion Accepted/Not Accepted

Suggestion implementation responsibility

Target date

Ideal Cost Saving Idea Criteria:-

1)It should be unique.

१)तो अद्वितीय असावा।

2)It should be feasible (Possible)

2)ते शक्य असावे।

3)It should be Relevant.

3)ते आपल्या कंपनी संबंधित असावे।