Hr & Administration
Learning & Teaching Fellow (retired)
There are many aspects of cost reduction in respect of HR.
1. The cost of hiring can be minimised. You are aware that there are several options for hiring
Advertisements/ Head Hunters/ Job sites/ Campus recruitments/ Employee referrals etc. You need to choose the best option and minimise the cost incurred.
2. If you are using a travel operator you need to optimise the utilisation of the cabs.
3. If printing and stationery is under HR then you need to control cost there too.
4. You have to control attrition because everytime you hire a new employee it will increase cost.
5. You have to optimise the cost of training.
6. If you have a canteen you have to exercise better control over it.
7. Likewise in HR & Administration the list goes on endlessly.
8. In production there are several factors like this to reduce cost.
a. The machine utilisation must be maximised, no machine should lie idle.
b. Scrap should be minimal.
c. The cycle time to produce the material has to be improved continuously.
d. Running the Diesel generator set should be optimised.
e. Energy conservation measures will bring about cost saving. Options Solar lamps to conventional lamps etc.,
f. The breakdown of machinery has to be minimised. The time taken to repair the machinery should be minimal and the time interval between two breakdowns should be maximised.
g. Men utilisation should be maximised by improving planning.
h. Work in Process should be minimised.
i. First pass yield must be maximum.
j. On time delivery must be maximum to avoid penalties for delayed deliveries if applicable and increase freight cost to look for alternate modes of dispatch (Air freight Vs lorry transport)
k. The quality of incoming material should be perfect to prevent re-work.
l. Like this the list goes on endlessly.
Each department is given objectives on factors relating to Cost, time, quality and quantity.
The factors PQCDSM has to be under control to be cost effective.
P - Productivity
Q - Quality
C - Cost
D - Delivery
S - Safety
M - Morale
In case you need any further help please feel to write to
17th December 2010 From India, Madras
n v r naidu
18th December 2010 From India, Hyderabad