Maruti Udyog to cut costs

NEW DELHI, JULY 16. Maruti Udyog (MUL) has targeted to cut production costs by about Rs. 90 crores in 2000-01 by implementing value engineering methods, MUL managing director, Mr. Jagdish Khattar, said on Saturday.

``The cost reduction target of MUL through value engineering in the current fiscal has been pegged at Rs. 90 crores, substantially higher than the previous year's savings of Rs. 20 crores," Mr. Khattar said at a seminar on enhancing competitiveness through value engineering' here.

Emphasising on the urgent need for cutting costs of products while enhancing their quality, he said the company, an equal venture between the Indian Government and Suzuki Motor Corporation of Japan, had generated 250 value engineering proposals in the first quarter of 2000-01.

Speaking at the seminar, the director (engineering) of State- owned Bharat Heavy Electricals, Mr. M. K. Mittal, said during 1999-2000, the company achieved saving of Rs. 22 crores in the development of products, services and systems by adopting various value engineering measures.

``We have introduced two cylinder designs for turbines which save about 25 per cent in material besides saving space in power stations," Mr. Mittal said, adding value engineering applied to structurals of boilers and condensers have also resulted in substantial savings for the company.

The advisor of Crompton Greaves, Mr. Ranjan Dasgupta, said there was need to have a law for value engineering in India like in the us which makes it mandatory for all companies to have value engineering methods.

- PTI

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