Most of the organizations in the world has an element of waste. In normal organizations, this waste is almost 40-45% of the total cost. This includes overstaffing, under utilization of staff, wasteful expenditure, unused machinery, inefficient process, duplication of work, buying unwanted stuff, excess inventory, splurging on marketing etc etc. Even our own household is no exemption.
Excellent organizations know this and makes a conscious effort to cut WASTE and not cut Cost. These organizations have a waste of around 20-25%. Imagine an organization with a total annual cost of KD 100,000. The profit is KD 10,000. The waste is KD 40,000. Even if the waste is reduced from 40% to 30%, the additional profit is KD 10,000 which is a 100% increase on the bottom line.
Government of India has 80 ministers, comprising of Cabinet Ministers & Ministers of State. These Ministers of State (those without independant charge) number around 30. They are supposed to be allocated specific work that will reduce the burden of the Cabinet ministers apart from giving them experience to step on to the shoes of the cabinet ministers at a later stage on getting sufficient experience.
A few days ago these 30 ministers met the Prime Minister. The reason?? They dont have any work. This means they are wasting their time at considerable expense to the tax payers. Their grouse is that the Senior Ministers are not allocating any work and all these bright young lads have is a Ministerial office, bungalow, big staff, a car with beacon and no work. This is a criminal waste.
A country like India do not need 80 ministers. Each minister costs the tax payer crores and crores of rupees directly. Then there is the indirect cost of these guys indulging in massive corruption. We need at best 25 ministers totally. Many ministries can be clubbed together and should be. It is time PM had a look at cutting this waste.
Once he has done it, then he should turn to the IAS cadre, and other Government sector and see how much waste is there in the system. The Government service have a waste of nearly 85% in India.
Let this be our Republic Day resolution. And we can start cutting waste from there itself. Scrap RD parade. It is the biggest waste!!
