employees suggestion scheme

Employees’ Suggestion Scheme

Excellence unLimited, Rajkot

Rig Veda says …


“Aa No Bhadra Kratavo Yantu Vishwatah”

“Let us receive good thoughts and ideas from all directions”

means


Good ideas are not dependent upon –• Educatione.g. Kabir, Tulsi, Meera, Narsinh Mehta or Arya Bhatt did not attend schools,• Agee.g. Sant Gyaneshwar died at age of 23, Adi Sankaracharya and Swami Vivekanand died at age of 32, • Physical conditione.g. Helen Keller was deaf, dumb and blind.

So, let us not shy away from inviting ideas fromyoung, illiterate/semi-literate and physically weak.


Employees’ ideas are very important, as - • They have real knowledge because they work at grass root level,• They encounter the problems and they have probable solutions,• They come from different background hence, management gets another perspective.


Inviting and using employees’ suggestionsis very proven and widely adopted mechanismfor improvement since long, all over the world.


•The first recorded suggestion program was implemented in 1770 by the British Navy. It was to give safe way to express ideas of solders without fear of punishment.

Origins

•The first physical box to collect ideas appeared at William Denny & Brothers shipyard in Scotland in 1880.

•In 1892, NCR became the first US company to implement a company-wide suggestion program. The concept was the 'hundred-headed brain', developed by CEO John Patterson.

• Suggestion boxes became popular in the manufacturing sector in WW II and the post-war years. They became part of the total quality movement and an integral part of cost, safety and quality improvement initiatives.


International Labour Organisationpromotes this mechanism under its Factory Improvement Program (FIP).

Government of India, under itsMinistry of Labour and Employment,through Director General, Factory AdviceService and Labour Institutes( DGFASLI ), promotes this, and every year, declares 28Vishwakarma Rashtriya Purashkars ( VRP ).

Employees’ Suggestion Scheme


Famous implementing World Companies

to name a few …


Famous implementing Indian Companies

to name a few …


Helpful voluntary Indian Organisation

•INSSAN is the professional support network dedicated to assisting organisations to create, maintain and reinforce their Employees Suggestion Scheme.

•INSSAN is managed by a team of Suggestion Scheme Practitioners with hands on experience and is the only Indian Professional Body in this field.

•INSSAN works with organisations in all areas of Indian Industry both in the private and public arena in manufacturing, financial and services sector, and it maintains close links with sister associations overseas.

•INSSAN operates a country wide consultancy services providing guidance and advice relating to the implementation and development of Employee Involvement Programmes.


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 inauguratedon 25th July, 2010, covering Gujarat, Maharashtra, Goa and Madhya Pradesh.

It regularly publishes a Bi-monthly INSSAN Bulletin.

For more information, visit www.inssanorg.com


ESS isMutuallyBeneficialto Employerand Employees


How do we start a Suggestion SchemeIn our organisation ?


Cash the flash


“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.


For value added suggestions -

Format

It should consists of 3 parts –• What is current method for existing process,• What is new improvement suggested,• What benefit will arise


ESS typical Block Diagram Receiving suggestions

Listing

Screening

Non-useful Semi-useful Useful

ROI & Action plan

Implement & Reward

Further evaluate


Typical ESS Process Flow Diagram


What is a Suggestion ?

a) Increased Production, Higher Productivity or improvement in Products ortheir design;b) Improvement in methods, machinery, equipment or tools and layoutsprocess and procedures;c) Reduction of Costs, wastes or spillage;d) Reduction in the frequency of idle time or repairs and maintenance ofmachinery, equipment or tools;e) Improvement in working environmental conditions including removal ofhazards 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 utilizationfor better purpose;h) Import Substitution;i) Any suggestion, which is beneficial to the Company.

Any idea / Suggestion related to -


What is a not Suggestion ?

Any idea / Suggestion related to -

a) All problems of planning, capital intensive schemes or works development and management in their sense;b) Govt. policies and other activities beyond the control of the management;c) Complaints and grievances, additional facilities / benefits/ amenities;d) Collective bargaining matters / management policy matters;e) Suggestions without solution;f) Suggestion simultaneously initiated by and in line with the management thinking;g) Common idea floating around;h) Routine maintenance and normal services.


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.


Efficiency Measures

• Suggestions / week,• Suggestions / month,• Suggestions / year,• Suggestions / employee / year,• No. of recognition / rewards granted,

Effectiveness Measures

• % Suggestions implemented,• ROI,• No. of gainful process changes,• / $ Saved,• Waste reduction,• Accident reduction, pollution reduction,• Cycle time reduction,• Improved customer satisfaction etc. etc.


Benchmark figures

Toyota has started implementing Suggestion Schemesince 1950 and has achieved following measureslast year –

• 1 Million ( 10 Lakhs ) suggestions / year,• 37 suggestion / employee / year,•% Suggestions implemented = 87 %,• Saving = $ 2000 / employee / year ( = 1,00,000 / emp. / yr. )

(Published 1991 )


Indian Benchmarking Suggestion Scheme PerformanceSource : 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

employees suggestion scheme

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