Eliminate Waste and Improve Productivity COST REDUCTION PROGRAM

Employee Involvement Program

BAD Program The Buck-A-Day campaign is a 30 day campaign that encourages employees to submit ideas about how to save money in and around their own jobs OMDS, Inc. provides the entire system and all of the materials and instructions an organization needs to implement the program using its own staff. The cost to the organization is based on the number of employees it has. Materials and the total program plan are shipped to the customer to implement the campaign

The concept behind this cost reduction program

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If an organization with 1,000 people decides to try to reduce costs by Php 1,250,000 a year, the work is normally done by staff personnel. This is because the average individual cannot relate to Php 1,250,000, primarily because he or she has never seen that much money. However, if 1,000 people decide that each person should cause something to happen on his or her own job that saves a minimum of Php50 each of 250 working days in a year, the result is the same — the organization will reduce expenses by Php 1,250,000. Essential expenses like wages and benefits leave little room for reduction. There are, however, many peripheral expenses that can serve as well to

reduce total costs and increase effectiveness. Often these items go unnoticed because they are not thought to be significant enough. The way to achieve these voluntary savings is through the creation of a receptive climate that will involve everyone in a concerted effort. The climate of cooperation and acceptance that surrounds Buck-A-Day is as important as the ideas themselves. It is this atmosphere that allows ideas to become cost-savings realities. The same people who last month may have ignored requests for cooperation are now enthusiastic and team oriented. Things get done faster than ever before. Communication on all levels becomes open and bottlenecks are unplugged. The Employee is the Key The communications portion of the Buck-A-Day program is light, low-key and just slightly off-beat. It provides a sense of fun and a refreshing change of pace from the normal work routine. The employee realizes that he or she is the key to the success of the program and feels justifiably important. It's a Bottom-Up Program Instead of the normal top-down edict, Buck-A-Day is a bottom-up program designed to improve communication, boost morale and increase cooperation. By focusing on a seemingly modest goal (save a Buck-A-Day), the program places cost reduction into a new perspective. As a result, managers and others who normally have primary responsibility for eliminating unnecessary costs are stimulated to pursue major cost improvement objectives with even greater vigor. It Creates a Sense of Awareness Buck-A-Day frequently uncovers important new areas where savings can be achieved. It also expedites pending decisions on worthwhile cost-improvement projects that have been in limbo for too long. And perhaps best of all, the Buck-A-Day campaign gives everyone a sense of awareness about cost reduction that lasts well beyond the 30 days of program activities.

Buck-A-Day Program Operation Buck-A-Day stresses the fact that every employee can help reduce expenses and improve productivity. Any employee who submits an idea during Buck-A-Day is rewarded with a specially designed coffee mug. It's a Simple Program to Run Program operation is deceptively simple. For a week or so before the actual program begins, a teaser campaign of footprints, posters and paycheck stuffers warns employees the BAD guys are coming. Not until Friday of teaser week do employees learn that the BAD guys are here. On the Monday following teaser week, employees are told more about the program through a series of informal meetings led by their department head or section supervisor who uses flip-charts and other communication aids provided as part of the program. Then, one by one, the supervisor distributes "BAD IDEA" cards.

There are Lots of Rewards To help sustain employee interest after teaser week, there's a plethora of booster materials: more cards, posters, streamers, a weekly newsletter and scoreboards for comparing the performance of individual groups or departments. There are also rewards: every employee who contributors a BAD idea gets a coffee mug with your company name and the inscription "I had a BAD idea." The second idea earns a rubber buck. Every Friday, names of the week's participants are tossed into a hat and a random drawing determines that week's SUPER BAD GUY. He or she receives the Buck-A-Day version of the OLYMPIC gold medal — the gold finished medal hangs from a red, white and blue ribbon. Recognition and lots of fun for the weekly lottery winner. Interest in the program is maintained and gathers momentum with the recognition given each participant. Wanted posters, newsletters, award mugs and the weekly lottery all help to stimulate participation and reinforce the appreciation shown to the e employees for their cost saving ideas.

The Impact

The immediate impact of the program is in uncovering relatively simple savings, such as small steps that can cut down on materials or time needed for a particular activity The emphasis is on cost saving ideas that can be easily implemented and have an immediate payoff. In most cases, the ideas submitted relate directly to the employee's own job and can be put into effect without a lot of time-consuming evaluation. Once the employee is effectively motivated to seek out unnecessary paperwork, expenses, scrap, rework or waste, he or she normally doesn't have to roam too far afield to find it. The idea is to get people to consider each job and ask themselves: "Is there a better, less expensive way to do it?"

COST REDUCTION PROGRAM Eliminate Waste and Improve Productivity

Cost Reduction Campaign: Buck-A-Day

Quantity of Participants Price per Participant

50 - 99 Php 2,450 100 – 499 Php 2, 100 500 – 999 Php 1, 960 1,000 - 2,499 Php 1, 750

Additional Locations

2 - 4 Php 17, 500 Includes: • Software to manage the campaign and measure results is included as

part of the purchase price. • The coffee cup is generic for orders less than 100 participants. • A cup is provided for each employee. • Client is provided all materials. • No charge for additional materials. • Shipping is additional

Organization Management & Development Systems Inc. 301 Armon’s Bldg. Kamias cor. Anonas Sts., Quezon City

Phones: 927-8525 / 920-7975; e-mail: info@omdsinc.com; www.omdsinc.com