SAVING ACTIONS ® – innovation focused on workforce
Did you know that savings between 15% and 30% of a particular cost category can be achieved just by exploiting the workforce’s “sleeping” knowledge ?
At ValueCreation have designed a kind of short interventions that can easily produce savings between 3% and 15%. To quote some examples:
• Small electronics factory in Catalonia: 90,000 euros in unused material in stock.
• Retailers in Castilla La Mancha: 22% in electricity consumption by ‘Saving Actions’ group (30 companies).
• Electric Company: 800,000 euros saved by linemen thanks to suggested more rational use of materials and time.
Some large companies successfully apply this formula: Lucent Iberswiss, Daimler Statoil are textbook cases. But, but most times we witness isolated actions due to a crisis or closure.
Then there’s the classic case of Toyota, which has made out of this practice the philosophy of the company and one of the pillars of its corporate culture. And while many companies have implemented their methods and quality circles, few have really achieved the level of Toyota.
Finally, at many midsized Scandinavian companies, participation of staff in innovation processes is common and yields good results. So good, that sometimes innovation focused on workforce is part of the union collective bargaining. It is actually relatively simple to achieve significant savings with employees.
At ValueCreation we have successfully done through small projects structured in three steps:
1 – First session: diagnosis with management and employees to identify 10 saving measures for immediate implementation.
2 – Monitoring plan.
3 – Second session: check real implantation, organizational problems and other sources of delay. Develop a strategic action plan of 10 saving measures .
A month later, third session: Tracking and control immediate savings. Design in a joint management-employee workshop 10 improvement projects to be deployed by cross department and cross hierarchy teams.