Cutting Costs in the Printing Industry. —A Case History
| Date | 01 May 1982 |
| Published date | 01 May 1982 |
| DOI | https://doi.org/10.1108/eb057252 |
| Pages | 14-14 |
| Author | Jack Cox |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
Cutting Costs in the Printing Industry
—A Case History
by Jack Cox
Mike Baker, Personnel Manager of the Evening Gazette in
Middlesbrough, first learned of QED Industrial Motiva-
tion when he read one of their advertisments in the Finan-
cial Times. A couple of points caught his eye—the
guarantee of substantial savings on existing costs and the
invitation to a champagne breakfast. Being a typically
cautious Yorkshireman, he thought carefully for several
seconds before picking up the phone.
A few days later he met Bill Robb, the Regional Director
of this unusual company. Over a Bucks Fizz and a couple
of bangers Robb explained how QED worked and men-
tioned a few of the benefits which had been enjoyed by
every company which had used the scheme. Every com-
pany? Yes, that's right and, with a guarantee against the
agreed savings target not being reached, it all sounded a bit
too good to be true. Could this really be a scheme where
you actually couldn't lose?
QED,
the brainchild of its founder and Managing Direc-
tor, Nick Thornely, has been operating for over five years
and has successfully carried out over 300 projects which
have resulted in total savings in costs and overheads of
more than £10 million. The theory behind the scheme is
that the people who are actually doing the job are best able
to suggest practical ways of reducing costs—and thereby
increase profitability, their own contribution to the com-
pany and their own job security.
If an organisation employing 1,000 people decides that it
must reduce its costs by £250,000 a year, the planning and
the action is normally handled entirely by the manage-
ment. This is partly because it is their traditional respon-
sibility to make such decisions and partly because the
average individual just can't relate to £250,000. As a result
he or she doesn't feel involved. However, if each one of
1,000 people is motivated to change something in his or her
working environment, and if the change results in the sav-
ing of just one pound for each of the 250 or so working
days in a year, then the organisation will reduce its costs by
£250,000 and the cuts will have been made by improving
efficiency rather than by laying off employees or holding
back on wage increases. Hence the initials QED—Quid
Each Day—all very logical.
A significant drop in overheads would be of great
benefit to all companies but that benefit would be further
enhanced by the fact that the cuts would have been made
as a direct result of the co-operation and involvement of
everybody in the company—thinking, discussing and
working together with a common aim. This degree of per-
sonal involvement on the part of all the employees was of
particular interest to Mike Baker who suggested that if the
level of interest and enjoyment which QED generates
throughout each campaign was, in fact, as high as Robb
claimed then it would be that achievement alone which
would demonstrate the company's skill and prove their
success. The input of suggestions by the client's employees
and the resultant cost-cutting would simply follow as an in-
evitable consequence.
By now the Fizz was flat and the sausages soggy but the
idea-was obviously worth looking into. There were clearly
going' to be problems and the first two that came into Mike
Baker's mind were the selling of such a novel idea to his
senior management and then to the workforce. In the
event, the management felt at first, as he had, thai it all
sounded a bit far-fetched but they conceded that it was a
well-tried plan with a remarkable record of success so, if it
worked for everybody else, there didn't seem to be any ob-
vious reason why it shouldn't work for the Evening
Gazette. They had another look through the brochure
which set out the details of the scheme fairly clearly and,
they had to admit, rather convincingly. So it was decided
to have an initial meeting and go into the whole business
more thoroughly.
Save a quid each day—QED!
When Bill Robb arrived in Middlesbrough, he already
knew a fair bit about the newspaper industry in general
and the Thomson Organisation in particular and he was
pretty confident that he could get a fairly high target lor
savings effected in the first 30 days. The co-operation of
the trade unions, very strong in his industry, would he
significant but the benefits to be derived in their members
were so evident that he expected—and later recieved —their
full help and co-operation.
The meeting went well, early scepticism was fairly soon
dispelled and the decision was made to go ahead. The trade
union representatives very quickly grasped the potential
advantages of QED, as opposed to the alternative methods
of cutting costs, and agreed to co-operate both by keeping
news of the project in confidence until it was launched—an
important factor if the launch were to have full im-
pact—and in participating actively while the campaign was
running.
When the project was completed everybody agreed that
the results, in terms of savings effected, were much better
than had been anticipated and the side effects much more
beneficial and widespread. It is estimated that suggestions
and actions taken during the first 30 days will generate sav-
ings in costs which will exceed £12,000 in the first full year,
and thereafter as well of course. Mike Baker, looking back
over the campaign, has no doubt at all that it was a suc-
cess.
There had been some cynicism before it had been
launched but not much, maybe five or six doubters out of
500 people, but no-one he had met after it was all over was
in any way critical.
Mike also felt that the one-week "teaser" campaign,
designed to arouse curiosity about the impending project,
had been particularly well thought out and had been highly
successful in creating a high level of anticipation by the
time the purpose and details of the scheme were revealed.
There was no doubt that the long-term reduction in costs
was immensely appreciated by the management; everybody
had enjoyed the competitive aspect of the scheme; morale
and certainly been boosted; and people felt that they had
really achieved something worthwhile in working together
and successfully reaching the target. In short, it had been
fun.
The address of QED Industrial Motivation is 53 High
Street, Thornbury, Bristol BS12 2AR.
14 INDUSTRIAL MANAGEMENT + DATA SYSTEMS
To continue reading
Request your trial