NTC EMPLOYEES
SUGGESTION SCHEME
SAMRIDHI
“SUJHAV SE SHUBH LABH”
What is Suggestion
Scheme ??
A formal system by which employees
are encouraged to offer ideas for
improving the organisation
Suggestion Scheme - Kaizen
The suggestion Scheme serves as an ideal forum
for bringing about an improvement in the existing
situation or creating a new situation, which helps
reduce costs or increase efficiency, productivity or
simplicity. In pursuit of the Core Values of
innovation, employees are encouraged to initiate
innovative suggestions, which could improve the
existing way of working.
I consider the innovativeness and creativity of the
company’s employees, especially those who are closest to
the processes, products and customers, to be of key
importance to continuous improvement.
Employee suggestion schemes are one of the tools that
facilitate such activity, providing a source of valuable
process-related and organisational innovations.
An employee can help the company lower its operational
costs, while at the same time making the work of the
employees more pleasant, easier, and safer.
If managed wisely, the schemes educate, motivate, and
increase the sense of belonging.
INTRODUCTION
Employees Suggestion Scheme of National Textile
Corporation Limited aims to encourage employee to bring
out their creative potential and ideas that could lead
towards Efficiency improvement, Cost saving, Reduction
in wastage, Improvement in productivity, Energy
Conservation and Financial saving. The scheme aims to
suitably acknowledge and reward the employees for
acceptable and implementable suggestions.
OBJECTIVES OF THE SCHEME
1. To achieve improvement in Production, Productivity,
Utilization, Operational efficiency and reduce Cost of
Production thereby effecting economy
2. An equal opportunity to all employees for constructive
thinking.
3. Recognition for individual ingenuity and creativeness.
4. To encourage and tap creative potential of the employees
towards performance and growth of NTC
5. To make improvement in every sphere of Unit’s activities.
6. To enhance employees’ belongingness through their
participation.
7. Promote Teamwork, Ownership and Accountability at all
levels.
What Isn’t for me????
ELIGIBILITY CONDITION OF
SUGGESTION
1. All employees of the organization posted
in HO/RO/Units/RMD.
2. Suggestions are invited from all areas of
operations.
3. There is no restriction in the number of
suggestions that an employee can give.
TYPE OF SUGGESTIONS INVITED
The scheme generally invites all types of Suggestions,
which will benefit the organization or its employees. More
specifically, the Suggestions should be designed to bring
about:
1.
2.
3.
4.
Productivity enhancement
Improving plant utilization
Cost saving in any area
Reduction of cycle time, machine setting, and
inspection or through put time.
5. Process standardization.
6. Waste reduction/elimination
7. Quality improvement and Defect prevention.
8. Improvements in industrial safety, material handling, housekeeping,
operational efficiency, packing and transportation.
9. Conservation of energy, water and other resources.
10.Inventory reduction
11.Improvement of working condition including health and welfare.
12.Improvement in maintenance and utilization of machines.
13.Result in saving in material including fuel and power etc.
14.Improving ways and means for using indigenous to materials in place of
imported one (import substitution).
15.Simplification of Practices / Procedures / Process.
16.Economy in stationery, office facilities and administration.
17.Improvement of working conditions, communication, facilities & image.
18.Rationalization of work, materials, method etc...
19.Product innovation
20.Any other area which may improve Company’s performance and image
INELIGIBILE SUGGESTIONS:
Suggestions on the following matters will not be considered
for awards under suggestion scheme.
1. Suggestions pertaining to the Company/Govt. Policies.
2. Matters pertaining to any individual
3. Unionized Problems/ Collective bargaining matters.
4. Complaints or Grievances.
5. Suggestions already adopted or implemented.
6. Impracticable/ Non-Implementable suggestions on cost &
technical considerations & non-standard practices.
ADMINISTRATION OF SUGGESTION SCHEME
For the sake of giving thrust to scheme and smooth
processing of suggestions it is envisaged to have a
three tier system. The three tier system is comprised
of
 Suggestion Committees at HO,RO and Unit level.
 Screening Committee at RO level.
 Award Committee at HO level.
The Suggestion Committees will be constituted at different levels as
below
25 SC’S
a) At Unit
The GM (I/C) may constitute committee comprising
General Manager / Unit in charge as
Chairman
All HOD’s
Members
Manager (HR)/COSTING-MIS
Coordinator
b) At RO :
Suggestion committee comprising 5-6 members under the
chairmanship of a GM/DGM level officer shall be constituted and
members from functional areas such as HR, Tech,
Finance/Costing, Marketing, etc.
c) At HO
Suggestion committee comprising 5-6 members under the
chairmanship of a GM/DGM level officer and members from
functional areas such as HR, Tech, Finance/Costing, Marketing,
etc.
1. The suggestion committee will be responsible for
coordinating various activities and maintaining records. The
committee shall meet as often as necessary but at least
once in every month.
2. The committee will compile all suggestions received from
the unit, evaluate it and recommend for implementation.
3. The committee will study the financial and other benefits of
the suggestion before making its recommendations.
4. The committee will be responsible for implementing
accepted suggestions of its own units and also the
recommended suggestions received from other committees
which are duly approved by RO screening committee.
RESPONSIBILITIES OF UNIT/RO/HO SUGGESTION COMMITTEE
 To act as a catalyst for promotion of suggestion scheme in their Area /
Unit.
 To ensure distribution of suggestion forms to employees in hard copy.
 To arrange collection and receiving through appropriate channel.
 To register the suggestions received.
 Scrutiny of suggestions for preliminary acceptance.
 Evaluation / recommendation of accepted suggestions for rewards.
 Get necessary approvals if any for implementing the suggestions from
higher authorities
 Implementation of the suggestions found acceptable.
 Monitoring implementation of accepted suggestion and its savings
 Communicate the accepted suggestions, which are implementable in
other places to all respective units and offices
 Display of accepted suggestions/ Improvement Projects on Boards etc.
2. SCREENING COMMITTEE (Formed at RO level)
ED/OIC
GM/DGM(TECH)
GM(Finance)
GM(MKTG)
SR Manager (Eng.)
M(COSTING)
DGM (HR)/MIS-COST
- Chairman
- Member
- Member
- Member
- Member
- Member
-Coordinator
This committee shall meet once in a quarter or as and when
necessary. The screening committee shall consider all the
suggestions received from respective units under its control
(also from the Regional Suggestion committee)
RESPONSIBILITIES OF SCREENING COMMITTEE
1. To promote suggestion scheme at higher level.
2. To ensure uniform implementation of the scheme at
company level and act as a monitoring agency.
3. Scrutiny and evaluation of suggestion and recommend
for award
4. Evaluation of the Suggestions for rewards
5. Monitor implementation of accepted suggestion at all
units
6. Facilitate implementation of acceptable suggestions
received from various suggestion committees.
3. AWARD COMMITTEE
Chairman-cum-Managing Director
All Functional Directors
- Chairman
- Members
………………….
- Coordinator
This committee will evaluate the accepted and recommended
suggestions and approve the rewards. (Lower limit can be
fixed)
The committee will facilitate for implementation of
suggestions which requires approvals if any.
Meet once in a quarter or as and when required
How does the system operate?
idea
• The suggester writes the idea in the
prescribed form and submit to his
Supervisor / HOD
Supervis
or/ HOD
• He will forward the suggestion to
coordinator of suggestion committee
after checking its validity
Suggestion
Committee
• Meet once in 15 days, evaluate
and recommend for reward and
send to screening committee
Screening
committee
• Evaluate and implement in
other units. Facilitate for
implement. Recommend
to award committee
Award committee: Approve awards after verification. Select suggestions
for implementing across the organization. Promote competition
What to do when I have an Idea?
Pick the Idea form from Supervisor/ HOD/
Coordinator
Fill up
&
Submit to Supervisor/HOD/Co-ordinator
Idea Form
What Happens to my Idea once I
have given it??
Supervisor
check validity,
and send to
HOD
HOD
Idea goes to HOD’s for Comments
What Does the HOD Does?
HOD
HOD studies the idea and writes his comments and then he
forwards to Co-ordinator of Suggestion Committee
What does the Suggestion Committee
do??
Suggestion
Committee
Suggestion Committee sort outs the ideas into Accepted ones
and Rejeceted ones. Accepted ones are chosen for
implimentation. If the suggestions are implimentable at the
unit witout any additional requirements, it is immediately
implimented. Those requires approvals/ investments etc are
send for further process at appropriate level and after
obtaining approval shall be implimented. All the suggestions
after recomendations are send to Screening Committee at RO
level
ScreeningCommittee
What Screening -Committee Does??
Screening
Committee
Screening Committee scrutinizes all the accepted
ideas and submits the selected ideas to Reward
Committee after making recommendations. All
acceptable suggestions are to be implimented in areas
of its control. It will act as facilitator to impliment the
suggestions.
Reward Committee
What Reward Committee does??
Reward Committee
Reward Committee looks all the ideas, studies them and
rewards them.
U
Will
Receive
Appreciation/
Recognition and Cash Award for
selected idea based on saving
potential and merit
DETERMINATION OF REWARDS
The nature and value of the Reward shall be determined based on the
Merit Points accorded to each ‘Acceptable Suggestion’ based on the
following “Evaluation Plan”:
Sl. Parameter
No
Points
(Max.)
1
Originality /Innovation and extend of applicability
15
2
Qualitative Gains (Quality, Safety, Environment etc.)
Improvement in physical work environment
15
3
Monetary Savings (Material, Energy, Man hours,
reduction in wastage etc.)
60
4
Fostering industrial relation or other in tangible
benefits
10
Total
100
Clause 3: 1 point /20,000 Rs saving potential
REWARD
After implementation of the accepted suggestions, the
suggestors will receive necessary award depending upon the
points scored for a suggestion as per the following criteria:
a)
b)
c)
d)
e)
Up to 30 points
30-40 Points
40-60 points
60-80 points
Above 80 points
-Recognition through Appreciation letter
-Certificate +1000 Rs
-Certificate + 50 Rs/point (Max 3000 Rs)
-Certificate + 100 Rs/Point (Max 8000 Rs)
-Certificate + 200 Rs/Point (Max 20,000 Rs)
In case of Intangible gain, where no monetary
gain is achieved, the amount of Award will be
restricted to Rs.1000/- only.
The ‘Appreciation Letter’ shall be issued from
the office of the CMD and Cash Reward can be
disbursed at appropriate level
Largest difficulties in implementing suggestion scheme
Failures with similar programmes in the past
63.0
Lack of involvement and support or resistance from the
management
50.0
Lack of time
41.3
Unfavourable organisational culture
30.4
Lack of financial means for such a programme
26.1
Lack of possibilities to quickly evaluate and implement
suggestions
17.4
Low motivation/involvement of employees
13.0
Lack of involvement and support or resistance from the
management
6.5
Insuficient knowledge about this too
4.3
Others
15.2
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
Reasons for Implementing Suggestion Scheme
Perfecting the company
55.8
Engaging employees
54.1
Savings/cost reduction
37.8
Utilising potential, knowledge and experience of
employees/eliminating the eighth muda
32.0
Improving health and safety/ergonomics
14.0
Practical assistance to employees to help them implement their
ideas
13.4
Developing employee's competencies
12.8
Building or supporting lean/kaizen/ continuous improvement
culture
12.2
Decision of the head office/corporate requirements
6.4
Formalizing the existing system of submitting suggestions
5.2
Improving communication within the company
5.2
Element of a wider programme: lean/kaizen/World Class
Manufacturing
3.5
Decision of the company managing director
3.5
Other
11.0
-
10.0
20.0
30.0
40.0
50.0
60.0
Measures of success
1. Top management participation to implement the
scheme, promote the scheme and most
importantly implementing the suggestion
received
2. Avoid delay in implementing- within prescribed
time limit
3. Target fixing –Parameters to be monitored
• No of suggestion received
• Suggestion/employee/year – (Should be >0.1)
• Total savings achieved and Saving/suggestion
• No of suggestion implemented vs received
4. Must make the above monitoring parameters as
an item of review in performance appraisal and in
all promotions/increments etc.