Synopsis: Communication For Productivity Letters written to some 7500 Workers / Managers / Union Leaders, following a period of strike / Go slow / Murders (1979 - 1987), at Mumbai factory of Larsen & Toubro Ltd. This direct / open / honest communication led to a remarkable atmosphere of trust between Workers and Management, which, in turn, increased productivity at 3% per year (ave).

27 Oct 1986

To:

Dear Friends                        

Keeping Score

The season of cricket-tests have just begun and in the months to come,  test-scores 'will be  discussed  in Powai,  from the start of a match till the end.

There  will be  excitement  everywhere  -  all  throughout the day.  All of  us will identify ourselves with  the Indian team and monitor their  progress.  We will feel  happy, if they are doing well and feel unhappy if they are losing  the game.

All this is very natural - very human.

Then, how come  we forget it when  it comes to playing another game  called  "Economy Drive"?   In  fact,  in  this  game, we ourselves are the players .'

If our  team has a  target, a goal  —  then  someone must keep score.  But  what good  is a  'score' which  is kept  secret  ? Then no one is excited  - no one is motivated  - and no one  is cheering nobody  I  And players  don't like  to play if nobody is cheering them.

So today, I wish to cheer the PGM  Group.

Under  Economy  Drive,  it had  set  some  target  for SAVINGS during the  4 months of June-September 1986.   And here is  the SCORE - CARD  :

		SAVING (RS. - lakhs)
		TARGET	ACTUAL
1.	Material Cost	3.60	2.13
2.	Overtime	1.40	2.71
3.	Power conservation	1.45	1.13
4.	Travelling/Conveyance	0.47	1.90
5.	Economising on Purchases	-	0.14
6.	Other Expenses	0.26	0.51
	TOTAL	7.18	8.52

We also deferred purchase of electrical fittings worth

Rs. 0.87 lakhs.                       

There was also a saving of  Rs. 0.96 lakhs due to reduction in usage of hired-cars (contributed by all groups).

My CONGRATULATIONS to all those who worked for  these savings !

In the meantime,  we in PGM, have set  for ourselves, a target of saving  Rs.  56 lakhs  during the  current year.   And with your co-operation we should be able to exceed that.

I seek your co-operation  in :

- reducing all wastages in the consumption of :

-      water

-      electricity

-      stationery

-      canteen food, etc.

handling  canteen  crockeries  with more  care  to  reduce breakages

improving efficiency  at all levels  by working  harder to reduce cost.

I am quite sure that  other groups too have done well in their drive for economy.   As far as PGM group  is concerned, I will let you  know the score sometime  in Jan  1987 - for the first quarter of 1986-1987.

Mount Kailash  - of  our Profitability  - is somewhere  in  the Himalayas.   Out  of  the  68  drivers  who have  entered   the Himalayan Car  Rally  this week, only  20/25 will  complete  it successfully after a tough ride of 2840 KM.

Will we reach the destination in our  "drive" ?

H.C. PAREKH