Mysuru: Declining prices and increasing costs is the problem faced by all businesses today said Ninan P Chandy, Managing Director, DeltaEta Cost Reduction Consultants Pvt Ltd.
Speaking during the one day workshop and training on ‘Cost Reduction at the Operation Level’ at a private hotel here on Thursday he said, “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. To overcome this problem of increasing prices is not easy. So the best way is to practice cost reduction. Cost reduction is not cost cutting or downsizing. It’s a systematic and disciplined way to reduce value of inputs or maximise the outputs”.
He also mentioned that the objective of this workshop is to help the participants to get an overview of the concept “Cost Reduction”. “The topic which will be touched during the workshop are realizing the importance and benefits of implementing Cost Reduction at Operational Level; learn a tool to analyze problems; applying the concept of Cost Reduction to reduce product cost and space consumed; learning the drivers and 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,” added Chandy.
N Muthukumar, Chairman, CII Mysuru who also spoke on the occasion said, “The productivity level in India is much lower than our counterparts. 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 which is not the same in India. For example, in Europe if 100 people come out with 100 crore business, in India for the same business we will require more than 250 people. It’s not that our people are inefficient, but our system is inefficient. Apart from this we have also become lethargic and we have our own legacy”.
He also mentioned that most of the times we are failing to meet our target. If the target is 100, we are just reaching 50 to 60. “To avoid loss to a company, we should avoid rejecting. Many think that due to rejection of a product, they save money to the firm. In fact it’s a loss to the company. If we start changing our mindset culture into loss elimination and challenging standard, that is the time Make In India will become a reality. China is not the same which was in 2000, they have changed faster. Due to cultural shift among them, in recent time they are able to come out with acceptable quality product which was not the same earlier. Hence to be successful in business we should adopt three mantras focusing on customer, innovation and respecting people.
UK Shenoy, Vice President (Works), JK Tyres said, “It is difficult to survive in this competitive world. Hence, work hard and earn profit in every shift”. He also mentioned that due to the stagnant prize of rubber for the past three years, JK Tyre managed to have good business. He also called upon to acquire knowledge as much as possible to meet the challenges.
Participants from various industries across Karnataka are taking part in the one day workshop.
