Happy New Year 2021
Monday, October 06, 2008
Nellaiappan's Column-9: "Cost Reduction"
The most commonly misunderstood concept, in my opinion, but widely used in corporate circles, is “cost reduction”. Other euphemisms/ synonyms for cost reduction are austerity measures, retrenchment, golden handshake, trimming and ETOC (every thing on contract).I have found all these things extremely counter-productive. Cost reduction is definitely not stopping some expenses, curtailing few facilities extended, rationing some entertainment and disowning some responsibilities. It cannot be at the cost of values and ethics.
In one company I know, at the pretext of austerity measures they stopped the daily morning and evening tea to all contract employees. The explanation given was that it was the duty of the contractor and not the company’s. The saving arithmetic was 70 people x 2 times x 365 days x 3 rupees. But the feelings of the 70 people with flesh and blood were completely ignored. There were visible repercussions and the damage caused was heavy, but it was not tangible for the costing department.
The admin people to their credit, allowed all Air Conditioners in the company only two hour operation per day to save money on electricity. The problem was not more of physical but the very idea irritated most of the employees and that became a hot topic for quite some time.
People were making fun out of these austerity measures and have even gone to the extent of recommending half-pant and shirt uniforms for employees, instead of full shirt and pant. One accountant seriously asked why Rs.500 per month was given to a priest for performing weekly 'puja' in company premises and suggested to perform the same by one of the company employees.
One important inference from all the above is an amenity once given if stopped suddenly will have adverse effects and more often that not will be counter-productive. For saving hundreds, you may be losing thousands. Further, it affects the morale of the employees, disturbs their sense of belonging and the grudge they carry in their minds is bound to affect productivity and performance.
One of the unit heads declared in the company’s group meeting that he was ready to retrench 15 employees with immediate effect and with a nod from the top and it was implemented at once. Selected 15 People with 15 to 20 years of experience in the company were asked to leave with short notice. The after-effects of the above incident were a great blow to the management. 50 % of the employees - all good people left the organization without or with short notice. Only employees who had no option remained.
It is proof that such measures could send wrong signals to the other employees like the company is in trouble or the same thing could happen to them in future. So they conclude it is better to leave the sinking ship.
The employee turnover was very high and as a measure to retain the employees the management increased the remuneration package to all its employees. But it was too late and most of the good people had already left the organization. Many people realized their own potential only then, and got good placements. The inferior lot who remained in the organization was rewarded with revision for their inability to move out of the organization.
To fill up the gap created by the resignation of good employees, the company recruited many new ones with high starting pay.
Many public limited companies announced golden handshake to get rid of inefficient employees. Contrary to the expectations, all good employees availed the opportunity and thus weakened further the system in existence.
The feeling of oneness and the family concept is lost in letting work on contract basis. Contract workers always carry a grudge against the company and its employees and at the very first opportunity they ditch both.
There is no compromise in the cost of safety and environment. Any compromise in these two will be detrimental in the long run.
The real cost reduction comes from increased productivity and innovative process changes and modifications. Savings by all other methods are very marginal and if overdone will become counter productive. Here one should remember Parato’s 80-20 principle.
No doubt a saving is a saving however small it may be. But one act of improved productivity will excel hundred such trivial savings all put together. Leaders always look for big leap. Being a leader I hope you will also vouch my statement.
Sunday, October 05, 2008
Self-Improvement-14: "The Grammar of Right Living"
Saturday, October 04, 2008
S&T Watch-29: "Bio-Insecticides"
Courtesy: The Hindu, Madurai, Oct.4, 2008 ("Newscape").
Grateful thanks to The Hindu and Wikipedia, the free encyclopedia.
Letters-42: "Jodhpur Tragedy"
Failure to provide proper security and infrastructure at temples during festivals and later announcing a few lakhs of rupees in the name of compensation have become the habit of governments and authorities. - M.C.Vijay Shanker, Chennai.
2.
Tragedies can be averted if volunteers of Hindu organisations and temple officials spend their energy in guiding devotees. Why not the sangh parivar concentrate more on such issues before fighting forces from outside? Community education on the dos and don'ts while participating in festivals will help avert such ghastly tragedies. Any festival should inculcate a sense of devotion and discipline. - G.Sankara Bhanu, Hyderabad.Courtesy: The Hindu, Madurai, Oct.2, 2008 ("Letters to the Editor")
Eyecatchers-110: "Govt of India bans Smoking in Public Places!"
Smoking affects not only the health of the smoker, but also that of other people who are exposed to it; for Passive Smoking also kills. So banning smoking in public places is a right step and deserves appreciation. The dangers of Passive Smoking can be perused in the Wikipedia article (link provided).
Eyecatchers-109: "International Day of Non-violence"
Thursday, October 02, 2008
Random Thoughts-14: "On Gandhiji"
Not that I think of him on his Jayanthi only; actually his smiling portrait adorns the foyer of our office and daily while entering the office, I mentally offer my respects to him and seek his blessings to live truthfully.
I should like to think that I am moving towards these ideals albeit inch by inch.
Some of his lofty and wonderful thoughts I have posted in my blog, "Role Models and Inspiring Lives". Just a look at them would convince anybody how great and noble a soul he was.
I salute you, Mahatmaji, on this day and may I always keep you in my mind so that inspires me to tread the path of Truth and follow your noble ideals! No matter how many times I fail, I should still pursue these goals till the end, without losing heart.
Detailed Wikipedia article on: "MOHANDAS KARAMCHAND GANDHI": http://en.wikipedia.org/wiki/Mahatma_Gandhi
Full text of Gandhiji's Autobiography, "THE STORY OF MY EXPERIMENTS WITH TRUTH": http://wikilivres.info/wiki/An_Autobiography_or_The_Story_of_my_Experiments_with_Truth
Grateful thanks to Wikilivres and Wikipedia, the free encyclopedia.
Tuesday, September 30, 2008
Nellaiappan's Column-8: "Rotten Onion Concept"
One rotten onion can spoil an entire sack of onions. That’s why vendors when they store onions in bulk, carefully search for rotten onions or ‘about to go rotten’ onions, hand pick and separate them from the lot. Thereby the good onions are saved. Here is some thing for us to learn.In every organization and institution a few such rotten onions always exist along with efficient and loyal lot. If allowed, they could spoil the entire team. The first step in team-building in my opinion is to identify such rotten onions and isolate them from the main stream.
Presence of rotten onions may be due to the climate prevailing inside the organization such as nepotism, lack of growth potential for the individuals, monotony of work, lack of role for individuals in decision making and so on.
We cannot fire them just like that for non-performance. Mending or sending comes only after isolating and putting them in less important or less sensitive area. On the pretext of humanitarian considerations, one need not tolerate disobedience or poor performance. It is contagious.
But there is a major difference between rotten onions and the troublesome people. Most of the members can be mended and made efficient whereas the rotten onions cannot.
I should tell you how I handled a trouble maker in one of my earlier assignments. There the trouble was in the form of a senior operator. He was very talkative and that was the problem. He was one among the ten in the synthetic section of that chemical manufacturing unit. Moreover they were coming in shifts.
As the production was done in batches, the work distribution was not uniform throughout the shift. The work was not continuous for all the 8 hours and different for all the ten at any given point of time.
Our operator was good in mimicry and mono acting and used to start some thing interesting during the shift in a loud voice which made all the workmen to surround him and it invariably ended with some quarrel among them. Ultimately it resulted in loss of productivity.
When I became the synthetic section in-charge the first thing I did was transferring him to extraction section where he has to work alone. He was protesting it at the beginning but there was no option for him.
Slowly he settled in his new work and to everybody’s surprise, he started suggesting modifications in material handling and operational simplification because of his creativeness and loneliness. He became one of our best operators and I recommended a promotion for him. That made us to search for untapped potential within the company.
Every successful Business Corporate injects new blood into their organization to sustain speed and growth. There the reverse of the rotten onion concept has to be applied. Protecting the new young ones from the clutches of the existing old timers is the issue there.
After going through this article my wife said, “Now I understand why they have given you a cabin in your office. I think your management is already aware of this rotten onion concept.”
S&T Watch-29: "Water-propelled cars"
The ERDA has already developed techniques for using hydrogen gas, available in abundance from water, as fuel to run cars and other uses to meet the world's energy crisis likely to arise from the diminishing fossil fuels. Based on the indigenous technology, the system developed by the ERDA for the generation of hydrogen gas would cost just about Rs.three per kilo watt per hour as against Rs.9.3 required for the creation from diesel.
Dr.Grewal said the technology to use hydrogen as fuel for static installations had been fully developed and the ERDA was ready for commercial production,but the technology for using it in moving vehicles could still take some time in developing suitable containers to store gas. Pointing out that storing hydrogen in gaseous or liquid forms would be unviable, he said the ERDA had developed a magnesium-based alloy to use as hydrogen container in solid state,but was yet find an answer to the problem if explosion in the event of even a minor collision in which the hydrogen cylinder could explode like a lethal bomb destroying everything in the range of 200 to 500 meters.
Similar researches was going on the world-over to use hydrogen as an alternative to the fossil fuels and prototype of hydrogen-driven cars had also been developed in some of the countries but the project was not yet ready for commercial production.
The IEEE India Council former chairman, Hasmukh Shah, said some countries had also developed carbon quoting to be applied on the magnesium-based alloy containers to minimise the chances of explosion in the event of collision, but its road-worthiness was yet to be tested. Dr.Grewal said India and the world would have to turn to hydrogen,which was the cleanest green fuel devoid of any pollution.
Excerpt from "Water-propelled cars may run on Indian roads" by Manas Dasgupta, The Hindu, Madurai, Sep.29, 2008.
Grateful thanks to Manas Dasgupta and The Hindu.
Letters-41: "Another Blast"
2. I suppose it is time the Prime Minister realised that there are much more important things to do other than signing the nuclear deal with the U.S. When government is unable to secure even the Capital, how can it protect the rest of India? Every bomb blast is a slap in the government's face. - Divya Velayudhan, Palakkad.
Courtesy: The Hindu, Madurai, Sep.29, 2008.
Grateful thanks to Mr.K.R.A.Narasiah, Ms Divya Velayudhan and The Hindu.
Monday, September 29, 2008
Eyecatchers-108: "Apple Sells Unlocked iPhones"
Courtesy: The Hindu, Madurai, September 28, 2008
Grateful thanks to The Hindu.
Facts & Figures-49: "World Heart Day 2008"
* 1.5 billion people or nearly one in three adults over the age of 25, will have high blood pressure, one of the biggest single risk factors for Carrdio Vascular Disease(CVD), the world's number one killer.
* High blood pressure and CVD are increasing in prevalence, including among the young, and need immediate action and attention.
* World Heart Day, a major heart health awareness campaign now in its ninth year, is run by the World Heart Federation's member organizations in over 100 countries.
* World Heart Day activities include health checks, organised walks, runs and fitness sessions, public talks, stage shows, scientific forums, exhibitions, concerts, carnivals and sports tournaments.
* Cardio vascular diseases have been projected to cause 4.6 million deaths annually in India by the year 2020.
* High blood pressure (Hypertension: >140/90 mmHg) is directly responsible for 57% of all stroke deaths and 24% of all coronary disease deaths in India at an underestimate, there are 31.5 million hypertensives in rural and 34 million in urban populations.
* In the treatment of heart disease alone, non-compliance with drug regimens and inability to change lifestyle is believed to cause as many as 1,25,000 avoidable deaths.
Excerpts from "Know Your Risk of CVD" by Dr.R.Sivakumar, Senior Consultant, Interventional Cardiologist, Meenakshi Mission Hospital & Research Centre, Madurai in The Hindu, Madurai of September 28, 2008.
Wikipedia article on "CARDIOVASCULAR DISEASE":
http://en.wikipedia.org/wiki/Cardiovascular_disease
Grateful thanks to Dr.Sivakumar,The Hindu and Wikipedia, the free encyclopedia.
Friday, September 26, 2008
Eyecatchers-107: "Cows and Horses Freely Roaming in Texas!"
Courtesy: Sam Stark, Harper's Weekly, Sep.23, 2008.
Wikipedia article on "HURRICANE IKE":
http://en.wikipedia.org/wiki/Hurricane_Ike
Grateful thanks to Sam Stark, Harper's Weekly and Wikipedia, the free encyclopedia.
Thursday, September 25, 2008
Facts & Figures-48: "The Chip is 50 years old!"
To quote Dan Nystedt of IDG News Service, “chips are the brains and nervous system of every electronics device around, from computers to iPhones and are finding their way into more devices all the time, including cars and refrigerators, to make them more energy efficient”.
The inventor of the IC, Jack Kilby of Texas Instruments, went on to win the Nobel Prize for 2000. Unfortunately the co-inventor, Robert Noyce, passed ten years before that.
The annual revenue of the IC industry today is $ 300 billion.
Based on “Celebrating the IC’s 50th Anniversary” by Dan Nystedt, IDG News Service, September 12, 2008, which appeared on Network World.(
http://www.networkworld.com/news/2008/091208-celebrating-the-ics-50th.html)Wikipedia article on “Integrated Circuit:http://en.wikipedia.org/wiki/Integrated_circuit
Grateful thanks to Dan Nystedt, IDG News Service, Network World and Wikipedia, the free encyclopedia.
S&T Watch-28: "Space Elevator!"
Eyecatchers-106: "Spilling 3.7 million nickels!"
Wednesday, September 24, 2008
My Friends-1: "Mr.M.Senthil Kumar"
Our friendship deepened during our FASOHD days. He is so affectionate to me he would call me now and then and ask me whether I need any help. He has been helping me in almost all of my ventures. He is a tower of strength to me. I fondly and gratefully remember his great help on the days following my father's death and also during and after my daughter's marriage. My people say I exploit his kindness. Maybe true. Whenever I need any help, I immediately think of him and I do not hesitate to take his help whenever required. I do not know how I am going to repay him for his kindness.
Thank you, Senthil, thank you very much for all your kindness.



