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Cost
Cutter #1
Talk to Your Employees
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The
most powerful source of new ideas, cost cutting suggestions
and good advice may come from your current employees. A
very rich man who owned multiple businesses worth mega-millions
once got an idea from his janitor that saved him more than
$500,000.
Perhaps 3% of
American businesses have a meaningful suggestion system
in place. CertainTeed, a small roofing materials manufacturer,
saved over $15,000/yr from one employee suggestion. EliLilly
saved $700,000 the first year from a suggestion to recover
and recycle a solvent. El Pollo Loco, a restaurant chain,
saved millions when they got down off the roof and into
the kitchen when trying to meet EPA requirements. American
Airlines bought a new Boeing 757 with money saved from employee
suggestions.
Make a real commitment
to continue a serious suggestion system. Give the system
a dynamic name. Ask specifically for cost-cutting ideas.
Offer rewards and recognition for implemented ideas. Put
an employee group in charge of screening ideas and responding
quickly to every idea with sincere appreciation. Pay awards
equitably. Keep accurate records. You will glean gems over
time.
Employee
Involvement Association: 1735 N Lynn St #950, Arlington,
VA 22209-2022; 703-524-34424, Fax 703-524-2303. $220/yr
member-ship; seminars, guidebooks, newsletter.
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