Employees Suggestion Scheme


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A seminar done at Kutch Saurashtra Productivity Council, Rajkot, India on 25th Sept. 2010

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Employees Suggestion Scheme

  1. 1. Employees’ Suggestion Scheme Excellence unLimited, Rajkot
  2. 2. Rig Veda says … Excellence unLimited, Rajkot “ Aa No Bhadra Kratavo Yantu Vishwatah” “ Let us receive good thoughts and ideas from all directions” means
  3. 3. Excellence unLimited, Rajkot <ul><li>Good ideas are not dependent upon – </li></ul><ul><li>Education </li></ul><ul><li>e.g. Kabir, Tulsi, Meera, Narsinh Mehta </li></ul><ul><li>or Arya Bhatt did not attend schools, </li></ul><ul><li>Age </li></ul><ul><li>e.g. Sant Gyaneshwar died at age of 23, </li></ul><ul><li>Adi Sankaracharya and Swami Vivekanand </li></ul><ul><li>died at age of 32, </li></ul><ul><li>Physical condition </li></ul><ul><li>e.g. Helen Keller was deaf, dumb and blind. </li></ul><ul><li>So, let us not shy away from inviting ideas from </li></ul><ul><li>young, illiterate/semi-literate and physically weak. </li></ul>
  4. 4. Excellence unLimited, Rajkot <ul><li>Employees’ ideas are very important, as - </li></ul><ul><li>They have real knowledge </li></ul><ul><li>because they work at grass root level, </li></ul><ul><li>They encounter the problems </li></ul><ul><li>and they have probable solutions, </li></ul><ul><li>They come from different background </li></ul><ul><li>hence, management gets another perspective. </li></ul>
  5. 5. Excellence unLimited, Rajkot Inviting and using employees’ suggestions is very proven and widely adopted mechanism for improvement since long, all over the world.
  6. 6. Excellence unLimited, Rajkot <ul><li>The first recorded suggestion program was implemented </li></ul><ul><li>in 1770 by the British Navy. It was to give safe way </li></ul><ul><li>to express ideas of solders without fear of punishment. </li></ul>Origins <ul><li>The first physical box to collect ideas appeared at </li></ul><ul><li>William Denny & Brothers shipyard in Scotland in 1880. </li></ul><ul><li>In 1892, NCR became the first US company to implement </li></ul><ul><li>a company-wide suggestion program. The concept was the 'hundred-headed brain', developed by CEO John Patterson. </li></ul><ul><li>Suggestion boxes became popular in the manufacturing </li></ul><ul><li>sector in WW II and the post-war years. They became </li></ul><ul><li>part of the total quality movement and an integral part </li></ul><ul><li>of cost, safety and quality improvement initiatives. </li></ul>
  7. 7. Excellence unLimited, Rajkot International Labour Organisation promotes this mechanism under its Factory Improvement Program (FIP). Government of India, under its Ministry of Labour and Employment, through Director General, Factory Advice Service and Labour Institutes( DGFASLI ), promotes this, and every year, declares 28 Vishwakarma Rashtriya Purashkars ( VRP ). Employees’ Suggestion Scheme
  8. 8. Excellence unLimited, Rajkot Famous implementing World Companies to name a few …
  9. 9. Excellence unLimited, Rajkot Famous implementing Indian Companies to name a few …
  10. 10. Excellence unLimited, Rajkot Helpful voluntary Indian Organisation <ul><li>INSSAN is the   professional support network dedicated to assisting </li></ul><ul><li>organisations to create, maintain and reinforce their </li></ul><ul><li>Employees Suggestion Scheme. </li></ul><ul><li>INSSAN is managed by a team of Suggestion Scheme Practitioners </li></ul><ul><li>with hands on experience and is the only Indian Professional Body in this field. </li></ul><ul><li>INSSAN works with organisations in all areas of Indian Industry </li></ul><ul><li>both in the private and public arena in manufacturing, financial and </li></ul><ul><li>services sector, and it maintains close links with sister associations overseas. </li></ul><ul><li>INSSAN operates a country wide consultancy services providing guidance </li></ul><ul><li>and advice relating to the implementation and development </li></ul><ul><li>of Employee Involvement Programmes. </li></ul>
  11. 11. Excellence unLimited, Rajkot Companies having Suggestion Schemes are office bearers and members, like Tata Power, M & M, Godfrey Phillips, BPCL, RCF, IPCA Lab., Siemens, Kansai Narolac, Escorts Tractors, Dalmia Cement, L & T, SAIL, BHEL, ITC, Munjal Shova, Caparo Engineering, Special Steels, Phillips India, Tata Steel, etc. Helpful voluntary Indian Organisation It has three operating Chapters at Delhi NCR, Tamilnadu and Jharkhand, and a fourth Chapter in Western Region has been recently inaugurated on 25 th July, 2010, covering Gujarat, Maharashtra, Goa and Madhya Pradesh. It regularly publishes a Bi-monthly INSSAN Bulletin. For more information, visit www.inssanorg.com
  12. 12. Excellence unLimited, Rajkot ESS is Mutually Beneficial to Employer and Employees
  13. 13. Excellence unLimited, Rajkot How do we start a Suggestion Scheme In our organisation ?
  14. 14. Excellence unLimited, Rajkot Cash the flash
  15. 15. Excellence unLimited, Rajkot “ Suggestion Scheme” is a very methodical tool Process Typically, the process involves workers writing their suggestions on a predefined format and placing it in a box that is easily accessible. A designated employee empties the box/es regularly, preferably once a week, and lists all suggestions. A committee then decides which suggestions to implement and acknowledges to Suggestor. Due recognition and rewards are given to suggestors.
  16. 16. Excellence unLimited, Rajkot For value added suggestions - Format <ul><li>It should consists of 3 parts – </li></ul><ul><li>What is current method for existing </li></ul><ul><li>process, </li></ul><ul><li>What is new improvement suggested, </li></ul><ul><li>What benefit will arise </li></ul>
  17. 17. Excellence unLimited, Rajkot ESS typical Block Diagram Receiving suggestions Listing Screening Non-useful Semi-useful Useful ROI & Action plan Implement & Reward Further evaluate
  18. 18. Excellence unLimited, Rajkot Typical ESS Process Flow Diagram
  19. 19. Excellence unLimited, Rajkot What is a Suggestion ? a) Increased Production, Higher Productivity or improvement in Products or their design; b) Improvement in methods, machinery, equipment or tools and layouts process and procedures; c) Reduction of Costs, wastes or spillage; d) Reduction in the frequency of idle time or repairs and maintenance of machinery, equipment or tools; e) Improvement in working environmental conditions including removal of hazards to health and possibilities of accidents; f) Increase in the utility, quality, yield or output of products; g) Conservation of materials, energy or time in processes or their utilization for better purpose; h) Import Substitution; i) Any suggestion, which is beneficial to the Company. Any idea / Suggestion related to -
  20. 20. Excellence unLimited, Rajkot What is a not Suggestion ? Any idea / Suggestion related to - <ul><li>All problems of planning, capital intensive schemes </li></ul><ul><li>or works development and management in their sense; </li></ul><ul><li>b) Govt. policies and other activities beyond the control of the management; </li></ul><ul><li>c) Complaints and grievances, additional facilities / benefits/ amenities; </li></ul><ul><li>d) Collective bargaining matters / management policy matters; </li></ul><ul><li>e) Suggestions without solution; </li></ul><ul><li>f) Suggestion simultaneously initiated by and in line with </li></ul><ul><li>the management thinking; </li></ul><ul><li>g) Common idea floating around; </li></ul><ul><li>h) Routine maintenance and normal services. </li></ul>
  21. 21. Excellence unLimited, Rajkot Measures “ If you want to manage, you have to control. If you want to control, you have to measure.” Measurements will show whether you are efficient and effective in Scheme implementation.
  22. 22. Excellence unLimited, Rajkot Efficiency Measures <ul><li>Suggestions / week, </li></ul><ul><li>Suggestions / month, </li></ul><ul><li>Suggestions / year, </li></ul><ul><li>Suggestions / employee / year, </li></ul><ul><li>No. of recognition / rewards granted, </li></ul>Effectiveness Measures <ul><li>% Suggestions implemented, </li></ul><ul><li>ROI, </li></ul><ul><li>No. of gainful process changes, </li></ul><ul><li>/ $ Saved, </li></ul><ul><li>Waste reduction, </li></ul><ul><li>Accident reduction, pollution reduction, </li></ul><ul><li>Cycle time reduction, </li></ul><ul><li>Improved customer satisfaction etc. etc. </li></ul>
  23. 23. Excellence unLimited, Rajkot Benchmark figures <ul><li>Toyota has started implementing Suggestion Scheme </li></ul><ul><li>since 1950 and has achieved following measures </li></ul><ul><li>last year – </li></ul><ul><li>1 Million ( 10 Lakhs ) suggestions / year, </li></ul><ul><li>37 suggestion / employee / year, </li></ul><ul><li>% Suggestions implemented = 87 %, </li></ul><ul><li>Saving = $ 2000 / employee / year </li></ul><ul><li>( = 1,00,000 / emp. / yr. ) </li></ul>(Published 1991 )
  24. 24. Excellence unLimited, Rajkot Indian Benchmarking Suggestion Scheme Performance Source : INSSAN Bulletin 2003 (avg. of 22 companies) Item All India Average Best –in-Class Tata Steel Idea / person 2.7 39.97 ( TVS Suzuki ) 4.1 Employee Involvement 64% 100% ( NTPC, TVS ) 53% Accepted/ Generated 67% 100% ( TVS, Maruti, BEL ) 21% Implemented/ Accepted 95% 100% ( TVS, BEL, BHEL ) 72% Savings in Rs. / Employee 32016 1,86,764 ( Maruti ) 1286
  25. 25. Excellence unLimited, Rajkot Other useful reading -
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  27. 27. Excellence unLimited, Rajkot