Monday, October 8, 2007

Cost Reduction

Why are things so sluggish in big organizations? As students we do a lot of activities in our colleges, which are parallel to what the industries do. For example, I am working on an assignment of modifying an electronic circuit (which is an intelligent brake control of automotives) in order to reduce its cost. I belong to a service provider company in India which has posted me in USA at the client company location for this assignment. I have a couple of suggestions to achieve the goal. These are nothing but some slight modifications similar to what we used to solve in our engineering classes while solving numerical problems. My company sent me here in USA bearing all the cost to do these slight modifications which an engineering undergraduate does in his classroom as simple problems. Worse, with these ideas I am waiting for multiple levels of approvals so that it can be implemented or rejected. It has been one week since I am waiting for the team members and the manager to assemble for a meeting to discuss my idea. I know that if they accept it, it does not end there. It will go to the design team and from there god knows where for approvals. My concern is, why does it take such a long time to do a small thing in a big organization?

Actually, my company will be happy if it takes more and more time. Because they will get more and more hourly billing for my work. But it is a definite loss for the client company. Well, my job here is to try and reduce the cost of the product by modifying the design, but I think, if they become a little more efficient in execution of works, co-operation and communication among the various departments, they can reduce a lot of cost. Alas! I can not give this feedback for cost reduction here as it is against the interests of my company.

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