I visited at the company where my friend works in Pimpri, Pune area to understand the cost control initiatives they have implemented in the organization.
All lights & Air conditioners were off. People were working very silently putting their head in either some registers or on screen of computer. The climate was so silent. I asked my friend, “It seems that there is power shutdown, but you must have generator back up” He replied back,”We have taken the target of energy saving. From 8.30 am to 1.00 pm & 3.30 pm onwards, air conditioners are not allowed.”
I went in wash room. I struggle to get the switch to light. You must be aware about the fish like soap normally used in washrooms. Only the head of the fish was tied. I asked the officeboy why only the head of fish soap is tied. “Sir, this is cost cutting, boss told us to cut the soap in two part and use. Cost control sir!”
Officeboy brought snacks to eat. He brought it in piece of newspaper. “What is this?” I asked.
“Sir Pohe, “
“Poha? On newspaper?”
Friend smiled, “We have decided not to use plates as it required washing and also unnecessary manpower, water and detergent.”
“Then why not paper dishes?” I asked.
“We are not increasing unnecessary overheads; hence we decided to use newspaper or used drawing papers for this purpose. We have strict policy for paper usage, accordingly to the policy any paper should be used at least five times.”
“What will you do with these oily newspapers afterwards?” I sarcastically asked.
“Office boy collects it. Once in a day, all the collected papers are put in boiler for burning for heating water. The water is supplied to canteen for washing their utensils.” This can be best example of environmental aspects in EMS certification. What a great use of sources? Great contributions!!
I decided to spend some more time to understand the terrific cost saving ideas. When I was interacting with the friend, one customer came. He had a discussion with vendor development guy seating just behind us. He wrote minutes of meeting. As meeting completed, my friend ask me to follow them. I went. The customer was so happy to know that the officer was accompanying him to see off. Vendor development officer gave the minutes copy to the customer and pointed towards photocopying shop in front of the gate of the company. I asked my friend, “What he did?”
“We do not take Xerox in our company. We get it from customer.” He replied.
“Why? don’t you not have Xerox machines?” I asked.
“We have the Xerox machine, but taking one Xerox is an altogether different project. Lot of approvals is required. There are two machines. One is in the cabin of our HR head and another is in plant in plant in-charge cabin. If we ask to take the Xerox in morning to the office boy, he brings it in afternoon. Not his fault.”
“I will introduce you to our internal audit officer, who checks all the bills, vouchers and without his recommendations nobody gets money.” Friend
He introduced me with internal audit officer. The big maps of Pune, Maharashtra were put on the wall behind him. He had also the scale for measurement.
I asked him how he supports the cost control initiatives.
“When somebody claims local conveyance expenses, I just check the distance in map, from his home to the visited customer or company. I measure the distance on map, converts to km and pay as per the KM.” He explained me.
“What’s about lodging and boarding?” I asked.
“We have a policy, if somebody goes out for official purpose in and around Pune; lunch allowance is Rs. 15 per person. Outside is Rs. 30/-. In fact we are trying to reduce it. For lodging we encourage people to stay at their family or friends house.”
“Your efforts for controlling costs are fantastic.” I smiled and commented.
“After my recommendations all the vouchers goes to MD for sanction.” He told.
“Does he object on the amount recommended by you?” I again sarcastically asked.
“Sometime.” He innocently replied.
After meeting this great internal audit officer, I thought that there is no point to see another cost control measures.
“Vinod, I will forward my CV, please check if you have something for me in your organizations or references.” My friend told me.
“Why? Are you looking for a change?” I asked, “
“Yes, Management may go for downsizing and I do not know what will happen to me.” He replied back.