Dinesh Divekar
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Hi, I am working as admin in one ofthe IT company.How can I reduce the cost in operations without demotivation of employees.Can you suggest me. Uma
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I am working as admin in one ofthe IT company.How can I reduce the cost in operations without demotivation of employees.Can you suggest me. Urgent:huh:

even i m working in one reputed co.... I have sent following mails to employee to control the cost you can impliment the same :
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Dear All,

Lets all of us, take some initiative to control following cost in our branches:

Printing Cost:
  • All printers in branches to be made printing in Duplex (both sides of paper) mandatory. Option to print one side should be done only where required - (If your facing any problem, contact IT engineer immediately or log IT call in ehelpline on green page)
  • Reuse brown or even mail envelopes from bills, letters, etc), i.e. Packaging is reused to package things within the offices
  • Think twice before printing documents. If document or data can be kept in hard disk, no need to print and file
  • Before printing check the document in Print Preview section
  • Use back pages of obsolete documents or scratch papers for printing nonsensitive, draft or interoffice communication. These obsolete documents can also be used as Mini note pads or note cubes within the department.
Courier Cost:
  • Multiple covers sent to one location should be clubbed in a single envelope and let the cover be addressed to FO in the location who will redistribute as per the names in the covers inside the main envelope.
  • Do not send any personal couriers
Stationery Cost:
  • Make sure all the exit employees submit all their stationery back to reception (at FO), we can recycle the same, to reduce our stationery cost
  • Reuse recovered paper clips, fasteners, folders and envelopes (If it is in good condition)
  • Binders, box files and pocket files are all reused by placing new labels on the spine
Electricity Cost:
  • During the day, when sales team is out on the field, Split AC's can be put 'OFF' depending the requirement or kept "ON" with round robin basis.
  • Turn off computer monitors when on break-in or not in use
  • All toilets lights must be turned off when not in use
Other cost:
  • Do not waste paper cups / Tissue Rolls
We need all of your support & co-operation to control daily / monthly consumption & expenses in your branches.
Jayshree Vasavada
Regional Administration
I Have Gone Through Theabove Which Is A Very Practical In Cost Cutting Exercise.
In Addition To The Above I Would Like To Suggest Following At Organisational Level.
1.resort To Outsourcing Of Jobs Which Is Very Effective Cost Reduction Tool.
2.if Your Org. Is Bigger And Uses Number Of Direct Telephone Lines Consider Epabx With Isdn-pri Shcme Which Works Out Cost Effective. Any Epabx Seller Will Explain The Benefits.
3. Fpr Electricity Saving Use Electicity Saving Equipment Available In The Market. Also Use Cfl Bulbs In Place Of Conventional Lighting.you Will Also Help A National Cause.
4. Some Org. Have System Of Frequent Structured Meetings Of Executives Or Managers Or Staff On Weekly, Monthly Bases. The Experience Is That These Meetings Cost A Lot And Produce Very Little. Instead Other Communication Modes Can Be Used To Convey Or Get Feedback Cutting Down The Number Of Meetings.
5. Encourage Innovative Lateral Thinking Among The Employees Over B.p.r. At All Levels And You Will Receive Very Practical And Effective Suggestions.
6. Travel Costs Can Be Controlled By Encouraging Train, Bus Travel Instead Of Air, Wherever Possible.
7. Always Work Out Input To Output Ratios For Each Activity Or Process And Let Employees Concerned Know About Them.

These Could Be The Best 7 Habits Of Highly Effective People.
PFA Ajith

Attached Files
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File Type: pdf Cost Cutting.pdf (906.4 KB, 4071 views)

Some other ideas for cost cutting could be-
1. Reduction in mobile or phone reimbursement entitlements. Proper communication is required for the same, as each employee also must understand the need of the hour.
2. Picnics, get togathars etc to be immediately checked.
3. All Travels to be justified and approved by highest authority especially air.
4. The disposable glasses to be replaced by Glass tumblers for water consumption for optimisation.
5. Five Days week, for effective reduction in operational cost viz. power, fuel, stationary, pantry, transport etc, may be with extended hours of weekdays to compensate working hours loss, if required.
Dear All

Due to slowdown in the business of the Company, Everybody has to curtailed down the cost of each expense to minimum extent.

In this regard, we suggest some of the following measures to be implemented immediately:

1. Tea to be served to the employees once in a day in the afternoon.

2. Electricity charges attributable to Air Conditioners to be reduced to half of current usage. This should be implemented by way of maintaining AC temperature at 24 degrees and above also wherever, possible by switching off ACs.

3. Everybody has to make limited use of lights/fans and switch them off before leaving the work place/office. In showrooms, if any suggestion is there for reducing the electricity bill (e.g. by using CFL bulb) without affecting sales, then such suggestion should be informed to GM.

4. Reduce the factory water as well as Drinking water wastage .

5. All petty cash expenses to be reduced at least by 25%.

6. Henceforth, travelling by Car shall require prior permission of General Manager. Monthly bus/train pass to be used instead of auto/car hire charges.

7. Business travel to be planned properly and it should be subject to prior approval of General Manager and travel expenses to bring down at essential level.

8. Unnecessary Xeroxing, stationery, printing to be avoided and also papers should be reused wherever possible. While printing use “eco” mode. ( contact IT dept. if you don’t know to set “ eco mode”)

9. All Computers especially monitors to be set on power saving mode after 5 min. idle time. ( IT dept has to ensure)

10. Unnecessary telephone & internet usage to be avoided.

11. All the amenities of the Company to be used only for official purpose.

12. Production and Maintenance of each location should ensure the proper utilization of machineries and equipments with 100% efficiency with view to reduce cost.


Hiiiiii Ajith, Your Cost Cutting pdf is amazing,evryone shud go through it once,it’ll make clear the existing situation of Cost Cutting. Thanks, Shweta
Dear Uma,
There are various suggestions to control costs. Thanks to the participants.
I have devised a training programme whereby my concentration would be on controlling the invisible cost. The title of the programme is "Managing Economic Slowdown through Invisible Cost Control".
It is a 2-day training programme suitable for junior and middle level managers. You can arrange training programme for the staffs of your company. Please confirm your e-mail ID and I shall mail you the details of the training programme.
Dinesh V Divekar
You can go lean - Its is best proven technology. Toyota is least affected by economic slowdown.
Scoop: US Japanese car-makers still doing well despite recession
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