The Hindu Business Line : Meet on tackling high non-value addition expenses

INFORMATION technology, healthcare, tea, jute, and healthcare sector outfits are ones which have a high expenditure on non-value addition activities according to Dr Sadhan Ghosh, organising secretary of the third Indian Congress on quality, environment, energy and safety — an annual event organised by the Centre for Quality Management System, which is installed at the Jadavpur University.

Dr Ghosh said that every year companies lose thousands of rupees by spending on activities, which have non-value addition. "The conference addresses such issues which often result in huge avoidable expenditure leading to closures," he said. Studies conducted by CQMS have shown that on an average there can be five to 20 per cent cost savings through elimination of non-quality expenditure.

Pointing out that companies from these sectors might have benefited from the sessions at this national congress, Dr Ghosh said that unfortunately, many companies in sectors such as jute and foundry were in no position to do so. However, in general, major private sector corporates such as Hindustan Lever, Reliance and the Tatas have so far chosen to skip the meeting.

Mr Aloke Mukherjee, Chairman of Flakt India, who is also on the organising committee said that major public sector companies such as ONGC, IOC were sending their representatives to this conference which would begin on February 5.

While Mr Mukherjee was hopeful that there would be a last minute surge in participation from companies including some of the major private sector ones, one of the organisers speaking on conditions of anonymity said that such a conference would have attracted more attention had it been organised outside this region.

Dr Ghosh said that a CEOs' meet has also been organised as part of this three-day conference. The meet would be an experience sharing forum among the organisation. Companies which have confirmed their participation at this session include the certification agency TUV, NEEPCO, IOC, HPC, GRSE and Webel.

The congress would also coincide with the announcement of the institution of CQMSJU-business excellence models under which awards would be given in four main categories of industry - small scale, big industries and government departments, educational institutions and sector specific wards to industries with a turnover between Rs 10 crore and Rs 200 crore. The companies would be judged on basis of their performance in all spheres and not only on the basis of their financial performance, Mr Mukherjee said.