“Once famous and profitable brands like Premier Padmini, HMT Watches, Jawa Motorcycle have closed down because at some point their expenses were more than the revenue. It is not easy to overcome these problems of increasing prices. The best way is to practice cost reduction which is not cost cutting or downsizing but a systematic and disciplined way to reduce value of inputs or maximise the outputs” said, Ninan P Chandy, Managing Director, Delta Eta, Cost Reduction Consultant.
He was speaking at a workshop and training programme organised by CII Mysuru on ‘Cost Reduction at the Operation Level’ at a private hotel recently.
The objective of the workshop was to help the participants to get an overview of the concept “Cost Reduction” where Ninan Chandy covered topics such as realising the importance and benefits of implementing cost reduction at operational level, tools to analyse problems, applying the concept of cost reduction to reduce product cost and space consumed, learning the drivers & inhibitors of cost and to plan and effect changes in a systematic and disciplined way with a focus on improvement thereby bringing down costs, be it in the workplace, home or society.
N Muthukumar, Chairman, CII Mysuru said: “The productivity level in India is low. Manufacturing industries in foreign countries especially Europe and US, with the same amount of man power and machineries are coming out with more production and profits. It is not because of our people’s inefficiency but our system is inefficient. Apart from this, we have also become lethargic and we have our own legacy.”
U K Shenoy, Vice President (Works), JK Tyres, called upon employees to work hard and earn profit in every shift as it was difficult to survive in this competitive world. He also mentioned that as there was no price variation for rubber since last three years, JK Tyre managed to have good business. He encouraged participants to acquire knowledge on technologies as much as possible to meet the challenges in today’s competitive world.
Participants from various industries across the state took part in the workshop.