Crompton Greaves' Operations Overhaul

CGL's efforts seemed to have paid off initially as between 1990-95, CGL doubled its turnover crossing the Rs 1000 crore mark. Productivity went up from Rs 6 lakh per man per year to Rs 12 lakh. Profits also increased by six times. There was a 30% reduction in the total number of workers needed because of the increased efficiency. However, CGL did not retrench any workers and instead redeployed them where necessary. The time spent by employees on training also went up from 1% to 3%.

Since CGL assured job security to the workers, the union agreed to productivity increases of 38% in 1991, and a further 20% in 1994. There were significant positive changes in the attitudes of the workers as well as the management. While skilled workers began contributing in routine tasks (such as unloading of material) if required, they were also given sufficient authority (such as to refuse to use inferior materials.) The management also began measuring managerial efficiency based on certain internally decided parameters. The efficiency was found to have gone up from 23% to 51% during the same period. The unit also began using information technology to further improve its efficiency.