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Conference 7.286::digital

Title:The Digital way of working
Moderator:QUARK::LIONELON
Created:Fri Feb 14 1986
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:5321
Total number of notes:139771

1258.0. "How can we save money expeditiously ???????" by 2CRAZY::QUINN () Fri Nov 02 1990 17:08

    I want to know why it is so hard to save money even at a time when
    we have to. 
    
    Hello to all,
        
          Oct. 29 I submitted a proposal that to date I have spent 5.3
    hours on. In it I suggested the savings of about $ 66,435 over five
    years or 1,107.25/mth. in power, maintenance and floorspace cost.
    
          Currently, a project has been undertaken that will allow the
    logistics support centers to issue a repair credit for DEC material 
    once destined for scrap. I devised a plan whereby the project manager
    would purchase newer SA600's (RA90's) instead of SA482's (RA82's )
    from IEG. The result will be a 29% increase in user capacity (about
    10 MILLION blocks), a 66% decrease in lab footprint, and a 79% decrease
    in power consumption. At DECservice rates, cost of maintenance drops
    33%. The savings would allow for the purchase of an additional SA600-HA
    in just 2 years. AN ADDITIONAL 4.8 GIGA-BYTES OF USER CAPACITY.
     
          The intention is to modify the existing CAR to purchase SA600's
    at 86,400 and save 4,600 right away on the face value of the CAR for
    this project. The SA600's would be delivered to the MIS lab here and
    be installed. The required RA82's would then be deinstalled and shipped
    to their respective locations (4). This could happen in one night not
    affecting the users. The repair sites would recieve fully functional 
    RA82's that have been serviced by IN-DEC previously and are at the
    latest FCO level. The carrying cost for the less-than-full book value
    RA82's would be less which would translate into a higher repair credit
    and a lower contract cost to the benefit of our customers.
    
          THE PROBLEM:  The problem we are faced with is working within the
     matrix, whereby we have an established approval loop that has blessed
    and approved the expenditure of 91K for RA82's. I am working to affect
    positive change for the benefit of the MIS lab, the project and DIGITAL.
    I have been told that a CAR must be issued to approve this expenditure
    by CSL. Since a non-purchase mandate has been extended the approval of
    this CAR in the CSL chain is not likely. This will most likely last until
    the users begin to voice displeasure and miss mail messages due to disk
    space. I do not believe that we have the time available for the complete 
    approval loop to be completed and for an immediate expenditure 
    justification to be approved.  
    
      To date I have spoken with 8 people regarding this action that agree.
    I do not see why we can not modify the existing CAR to reflect the new
    cost savings idea and make one or maybe two phone calls to affect this 
    change and DO THE RIGHT THING to ensure the success of my company and 
    yours !!!!!  I think that this is one way to cut operational cost and
    increase productivity per employee, thereby advantageously impacting
    the bottom line.
                    
           Please suggest ACTION  !!! If you would like I will send a copy 
    of this proposal directly to you. 
           
     Call me at 275-3186, Email @ CUSSVC::QUINN, home @(603)432-3746
    ANYTIME !!! 
    
    Thanks ,      Dave Quinn
    
                    
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1258.1I don't think you need permission to do thisMAZE::FUSCIDEC has it (on backorder) NOW!Fri Nov 02 1990 18:1317
re: .0

I guess I don't understand your local bureaucracy.  No Capital Appropriation
Request I've ever filled out called out exact part numbers.  The only times
I've ever had to go back through the signature loop was if I didn't have
enough money on the CAR.  Changing the IEG order only required me to give 
them a call (confirming the change with electronic mail).

I've changed orders many times in order to improve delivery because my 
first choice wasn't currently available.

Since you aren't going to overspend your CAR, why don't you just phone up 
IEG and make the change?  (The IEG folks will tell you the availability of 
the parts you want to substitute, and the scheduling impact of your 
proposed change.)

Ray
1258.2 EFFICIENT PROCESSES THRIVE ON ACTIVE TEAMWORK 2CRAZY::QUINNMon Nov 05 1990 10:1519
    Hi Ray,
    
        I have been told by an individual at a much higher level than mine
    that this action would violate the CAR approval process. I suppose it
    would be much easier to say nothing and make the change, but I would 
    then be forced to ask myself why there is an approval loop in the first 
    place. I believe we have one so that the people involved know what is 
    going on in their organizations. 
        If everyone in the corporation were to make changes to CARs due to 
    time constraints aren't we then appeasing the system and not getting 
    what we need on time as advertised ? I think that if we are adamant 
    about what we need and when we need it we will help manufacturing,
    finance, shipping, purchasing, service delivery, sales, engineering,
    business planning......etc. work together more fluently. For this 
    reason I applaud this individual for making a solid case and hopefully
    uncovering a problem to which there is an absolute solution.
    
    I think all of our organizations need to work together as a team and 
    identify problems such as this that exist. 
1258.3COOKIE::LENNARDTue Nov 06 1990 15:256
    Please take this in the context that it is intended....but a 65K
    savings in five years simply isn't worth pursueing.  65 Million
    maybe.
    
    Our corporate administrative tail (or head...or whatever) is that it
    costs us more than 65K to not do anything.
1258.4Little fish live in big rivers too !!2CRAZY::QUINNTue Nov 06 1990 17:4527
    RE: .3
    
     Understood. What happened to a penny saved is a penny earned ? My
     intention in starting this note was to try and spark some thought 
     when developing and implementing projects not to just suggest this 
     particular case. If 100 project managers were able to save 65K over
     5 years each that would be a hefty chunk (6.5M) and a boon to the
     corporation. 
     For the purposes of this note I am looking at the matrix as a bunch
     of small streams that converge in a mighty rush whose only goal is 
     to get to the ocean. Once the convergence takes place, it is not 
     possible to alter the thundering waters without a lot of effort. We 
     need to find a way to combine the streams at their starting points
     in order to ensure a smooth course that benefits all of the
     inhabitants that otherwise would not be able to survive.
     Also, the level of rushing water is not ever constant. It is
     controlled by the amount of supply from the source. Therefore if
     you can achieve control points for supply the balance at convergence
     is much easier to attain during dry spells. This in a like manner
     to business helps to alleviate the possibility of dry spells from
     occuring. 
    
     I say to go with the small wins as often as possible and let the bean
     counters tally the score. The big ones don't happen every day.  
         
     Please say more...............DQ
    
1258.5BUNYIP::QUODLINGDon't blame me, I didn't vote...Wed Nov 07 1990 10:4113
   I tend to agree with the author of .3 (Cookie::lennard) While we need to be
   cautious with spending, I think there is a current state where we are being
   "Penny wise, pound foolish" and are nickel and dime-ing our selves down a
   hole.
   
   I think that reaction that the field has shown to the expressed necessity
   for a minor downsizing of the corporation, during a short period of
   economic quiescence, has been over-reacted to, and this is being observed
   by our customers who perceive it as a state of panic, not sound business
   controls...
   
   q
   
1258.6Uniform small wins = big winsSVBEV::VECRUMBADo the right thing!Fri Nov 09 1990 17:0414
re .3

>   Please take this in the context that it is intended....but a 65K
>   savings in five years simply isn't worth pursueing.  65 Million
>   maybe.
>   
>   Our corporate administrative tail (or head...or whatever) is that it
>   costs us more than 65K to not do anything.

On the other hand, even $10 saved per employee (apologies for U.S. currency
provincialism here) is $1,250,000 per year. $100 per employee is $12,500,000.
Economics of scale is a two-edged sword.

/Peters