| [forwards deleted]
From: CIMT::MARIANO 9-DEC-1992 11:46:09.29
To: @SFCE,GRIFFIN,GUILLEMETTE,CRBOSS::MARGARIT,CRBOSS::GARCEAU
CC: MARIANO
Subj: DISCRETIONARY SPENDING
[forwards deleted]
DIGITAL INTERNAL USE ONLY Document
I N T E R O F F I C E M E M O R A N D U M
Date: 04-Dec-1992 02:34pm MST
From: Jack Smith
SMITH.JACK AT A1 at CORA @
CORE
Dept: S.V.P. of Operations
Tel No: 223-2231
TO: See Below
Subject: DISCRETIONARY SPENDING
On Tuesday evening, December 1, the Spend Smart! Program brought
together a group of senior level managers in a working session
designed to generate recommendations to reduce discretionary spending
for the remainder of Q2 and for the second half of FY93.
Attached are the short-term discretionary spending actions and policy
changes which came out of that session and are to be implemented
immediately.
I want to commend every individual involved in this effort for their
leadership in developing these recommendations. Their recognition
that behaviors must change if we are to generate immediate
discretionary spending benefits in support of a return to profitable
operations is key to our success.
This is a good first step. We need to maintain the momentum and
rapidly finalize the recommendations and actions for further
discretionary spending reductions to benefit Q3 and Q4. Shortly, I
will distribute the entire list of short-term (Q2) and long-term
recommendations.
Please ensure that this message is distributed to all individuals in
your organizations.
DISCRETIONARY SPENDING ACTIONS
TRAVEL
- All air, car, hotel and group travel reservations must be
reserved only through Digital's authorized travel agencies. The
Travel agencies will direct you to Digital's vendors for air,
car, and hotel discount programs, as well as to related
policies. If you find alternatives that are more
cost-effective contact your travel representative, who will
ensure those opportunities become available to everyone.
- Reimbursement for authorized incurred expenses will be at
levels in policy guidelines. Excess travel spending will be
disqualified.
- Business travel will be charged to American Express and Diners
Club (vendors in the U.S.) corporate charge cards. Advances
will be limited to $25.00 per day for domestic travel and
$50.00 per day for international travel.
EXTERNAL TRAINING
- Eliminate the use of outside facilities in the Greater Maynard
area for the delivery of internal training and other meetings
and conferences. With the establishment of a new auditorium in
Parker Street, the existence of amphitheaters at many sites in
Massachusetts and New Hampshire, and the recent refurbishment
at PKO3, we have a number of internal facilities that can
address this need.
ADVERTISING
- The Advertising Group has canceled several planned media
placements for the remainder of Q2.
SOFTWARE ACQUISITION
- The following policies are being developed for approval:
A. IM&T and Finance coordinate an inventory of existing
Break-The-Seal (BTS) software applications in all cost
centers.
B. A process is put in place by IM&T for redistribution of
excess BTS through DIAL.
C. DIAL can be accessed by users for any BTS request.
D. The sole supplier for North America BTS needs will be
800-Software.
In the interim,
1) Stop all purchases and orders for "Internal Use" third-party
Break the Seal (BTS) software applications for PC's, Portables
and Workstations.
2) DecDirect and Purchasing are to cancel all "Internal Use"
orders for third-party BTS software.
OFFICE SUPPLIES
- It would appear we have major cost reduction opportunities in
the office supplies area. I have asked for recommendations in
30 days. In the meantime, full stop on all purchases of office
supplies. Vendors should be notified not to ship to current
PO's. I'm sure we can tough our way through this until
recommendations are reviewed in 30 days.
POSTAGE
- Stop all overnight mail except when required to support
customers and revenue generation, e.g. proposals, parts, etc.
FACILITIES
- We are evaluating several cost-reduction proposals regarding our
overall facilities commitment. Until these are implemented,
freeze all facilities-related capital expenditures.
HOME EQUIPMENT
- We are reviewing the policies and procedures on the use and
control of equipment used at home. Until those are approved and
published, stop equipment going to employee's homes. Critical
requirements will be met only with V.P. approval.
- Stop all purchases and leasing of non-Digital personal
computers.
CONSULTANTS/AGENCY/CONTRACTORS
- As already published on Nov. 30, all new or renewal requirements
for Consultant, Agency, and Contract resources must have
Operating Group V.P. approval and my approval. There are three
exceptions to this new approval requirement:
1. Consultants directly engaged in revenue projects.
2. Direct manufacturing resource requirements.
3. Facilities support personnel.
ELECTRONIC PURCHASING
- As previously published in my memo dated Nov. 30, vendors
holding blanket purchase orders are to be notified immediately
to hold all shipments to Digital. Revaluation and notification
of how to proceed will be forthcoming by the end of Q2.
DIGITAL INTERNAL USE ONLY Document
Distribution:
Terry Fink ( FINK.TERRY AT A1 at CORA @ CORE )
Win Hindle ( HINDLE.WIN AT A1 at CORA @ CORE )
Martin Hoffmann @CORE ( HOFFMANN.MARTIN AT A1 at CORA @ CORE )
BOB PALMER ( PALMER.BOB AT A1 at CORA @ CORE )
John Sims ( SIMS.JOHN AT A1 at CORA @ CORE )
Jack Smith ( SMITH.JACK AT A1 at CORA @ CORE )
ADRIANA STADECKER ( STADECKER.ADRIANA AT A1 at CORA @ CORE )
BILL STEUL ( STEUL.BILL AT A1 at CORA @ CORE )
BILL STRECKER ( STRECKER.BILL AT A1 at CORA @ CORE )
BERARD @RDVAX@VMSMAIL
Larry Cabrinety ( CABRINETY.LARRY AT A1 at CORA @ CORE )
Caldwell @Share @vmsmail
BOBBY CHOONAVALA @AKO
Charles Christ @CORE ( CHRIST.CHARLES AT A1 at CORA @ CORE )
Russ Gullotti @CORE ( GULLOTTI.RUSS AT A1 at CORA @ CORE )
Win Hindle ( HINDLE.WIN AT A1 at CORA @ CORE )
Martin Hoffmann @CORE ( HOFFMANN.MARTIN AT A1 at CORA @ CORE )
Bill Johnson ( JOHNSON.BILL AT A1 at CORA @ CORE )
Jim Liu ( LIU.JIM AT A1 at CORA @ CORE )
Frank McCabe ( MCCABE.FRANK AT A1 at CORA @ CORE )
McCluney @MEMIT @VMSmail
Ed McDonough ( MCDONOUGH.ED AT A1 at CORA @ CORE )
MULLARKEY @MEMIT@VMSMAIL
Person @rdvax@vmsmail
DICK POULSEN @GEO
DICK POULSEN ( POULSEN.DICK AT A1 at CORA @ CORE )
John Sims ( SIMS.JOHN AT A1 at CORA @ CORE )
PETER SMITH @GEO
Jack Smith ( SMITH.JACK AT A1 at CORA @ CORE )
BILL STEUL ( STEUL.BILL AT A1 at CORA @ CORE )
BILL STRECKER ( STRECKER.BILL AT A1 at CORA @ CORE )
Walker @MEMIT @VMSmail
Don Zereski ( ZERESKI.DONALD AT A1 at CORA @ CORE )
ROB AYRES @CORE
Fran Barton @GEO
Lyn Benton @CORE ( BENTON.LYN AT A1 at CORA @ CORE )
Frank Binder @CORE ( BINDER.FRANK AT A1 at CORA @ CORE )
Ross Brown @MSO
Rich Butler @OGO
Clark @SSVAX @vmsmail
cohen @ssgv01 @vmsmail
Giorgio Corsi @GEO
Cotter @Wecare @vmsmail
ROBERT R. EVERETT ( EVERETT.ROBERT AT A1 at CORA @ CORE )
Dick Farrahar ( FARRAHAR.DICK AT A1 at CORA @ CORE )
Terry Fink ( FINK.TERRY AT A1 at CORA @ CORE )
Dick Fishburn ( FISHBURN.DICK AT A1 at CORA @ CORE )
Flanagan @ssvax @vmsmail
Sam Fuller ( FULLER.SAM AT A1 at CORA @ CORE )
Greenfield @ssvax @vmsmail
Robert Griffin ( GRIFFIN.ROBERT AT A1 at CORA @ CORE )
G_WILLIAMS @ASABET@VMSMAIL
TEDDY HOPSON ( HOPSON.TEDDY AT A1 at CORA @ CORE )
Karen Howard @OGO
Karen Kupferberg ( KUPFERBERG.KAREN AT A1 at CORA @ CORE )
Jerry LoPorto @AKO
Vikkee Love ( LOVE.VIKKEE AT A1 at CORA @ CORE )
GEN NARUI ( NARUI.GEN AT A1 at CORA @ CORE )
Werner Oppliger @GEO
BOB PALMER ( PALMER.BOB AT A1 at CORA @ CORE )
Carol Reid @MLO
BRUCE J RYAN @CORE ( RYAN.BRUCE J AT A1 at CORA @ CORE )
Dave Spratt @CORE ( SPRATT.DAVE AT A1 at CORA @ CORE )
ADRIANA STADECKER ( STADECKER.ADRIANA AT A1 at CORA @ CORE )
BRUCE STEELE @MLO
GERRY UVA @MLO
Maurice Vanderpot @MLO
Tony Wallace @MRO
MARY LOU WELCH ( WELCH.MARYLOU AT A1 at CORA @ CORE )
Steve Whitney @AKO
Pat Adams @AKO
AUMAN @ISLNDS @VMSMAIL
Rob Ayres @CORE
STEVE BEHRENS @AKO ( BEHRENS.STEVE AT A1 at CORA @ CORE )
LYN BENTON @CORE
FRANK BINDER @MSO
BLOOM @SSVAX @VMSMAIL
ROSS BROWN @MSO
OLLIE BUTLER @GAO
RICK BUTLER @OGO
CHRISTENSEN @MILPND @VMSMAIL
DORA CHU @MSO
CHWALEK @SSVAX @VMSMAIL
BOB COHEN @MLO
GIORGIO CORSI @geo
COTTER @WECARE @VMSMAIL
Andy Dagostino @AKO
DRAB @POWDML @VMSMAIL
DICK FARRAHAR @CORE
FLANAGAN @SSVAX @VMSMAIL
FLINN @POWDML @VMSMAIL
RON GLOVER @MSO
GRAVES @IAMOK @VMSMAIL
GREENFIELD @SSVAX @VMSMAIL
G_WILLIAMS @ASABET @MRGATE
Bill Hadney @AKO
DOUG HAMMOND @MLO
CHARLES HOLLERAN @CORE
KAREN HOWARD @OGO
JOHNSON_R @ICS @VMSMAIL
Dave Kristof @MSO
KUPFERBERG @CSGDEC @VMSMAIL
Murvin Lackey @CORE
JERRY LOPORTO @AKO
Peter McGovern @AKO
VIN MULLARKEY @CORE
OLEARY @ISLNDS @VMSMAIL
WERNER OPPLIGER @GEO
JOHN PACY @MSO
PAUL @POWDML @VMSMAIL
PBROWN @CTHQ1 @VMSMAIL
RAMEAKA @ROLAID @VMSMAIL
CAROL REID @MLO
Geoff Sackman @MLO
JOHN SIMS @CORE
Dave Spratt @CORE ( SPRATT.DAVE AT A1 at CORA @ CORE )
Bruce Steele @MLO
BILL STEUL @CORE
JACK TRACY @AKO
LEO TRAINOR @OGO
GERRY UVA @MLO
BILL VANATTEN @MRO
MAURICE VANDERPOT @MLO
TOM VANHUBEN @BXC
TONY WALLACE @MRO
To Distribution List:
John Livelie@SQF,
Alex MacDonald@SQF,
SWARAN UPPAL@SQF,
Bill Gilpin@SQF,
Arun Kamat@SQF,
GILLIAN COYLE@SQF,
Louise Sharp@SQF,
Ken Chick@SQF,
James Hamilton@SQF,
Tom Dunne.@SQF,
Stuart Campbell@SQF,
Mark Iannarelli@SQF,
Tommy CROOKSTON@SQF,
Angus Davie@SQF,
BRUCE HARRIS@SQF,
Gil Murray@SQF,
Andrew Weatherhead@SQF,
Catriona Sarkis@SQF,
Mark Robertson@SQF,
FRANCES WATSON@SQF,
Callum MacDonald@SQF,
Jacqui Olley@SQF,
Ron Fox@SQF,
Jill Hanlon@SQF,
Graeme Hutcheon@SQF,
Tracy Watson@SQF,
Brad Connor@SQF,
Bri Jones@SQF,
derek holland@SQF
Author:
Date: 09-Dec-1992
Posted-date: 09-Dec-1992
Precedence: 1
Subject:
VMSmail To information: @DIST:SQF_CIM
Sender's personal name: It's no fun, being an illegal alien 09-Dec-1992 1533
To Distribution List:
ABROWN@SCOAYR@VAXMAIL,
NAME: Sheena Addison <ADDISON.SHEENA AT A1KIRKTN at SQFMTS at SQF>,
NAME: Colin Barr <BARR.COLIN AT A1KIRKTN at SQFMTS at SQF>,
NAME: Neil Barrass <BARRASS.NEIL AT A1KIRKTN at SQFMTS at SQF>,
NAME: ALAN BELL <BELL.ALAN AT A1KIRKTN at SQFMTS at SQF>,
NAME: Bob Bienkowski <BIENKOWSKI.BOB AT A1KIRKTN at SQFMTS at SQF>,
BLOCK@TOLKIN@VAXMAIL,
NAME: Derek Collins @SQF <COLLINS.DEREK AT A1KIRKTN at SQFMTS at SQF>,
DICKHUT@CNTROL@VAXMAIL,
EAMONN REAY @GAO,
esplin@tolkin@vaxmail,
EUGENE ANSELL @REO,
GAVIN@CHIPS@VAXMAIL,
GKYLE@SCOAYR@VAXMAIL,
NAME: Mark Hagan <HAGAN.MARK AT A1KIRKTN at SQFMTS at SQF>,
NAME: DAVID HAINING <HAINING.DAVID AT A1KIRKTN at SQFMTS at SQF>,
NAME: David Haist <HAIST.DAVID AT A1KIRKTN at SQFMTS at SQF>,
IMACKENZIE@SCOAYR@VAXMAIL,
JIM LYNN @DBO,
JOHN HARHEN @GAO,
NAME: Cath Jones <JONES.CATH AT A1KIRKTN at SQFMTS at SQF>,
LAFLEUR@TOLKIN@VAXMAIL,
NAME: John Livelie <LIVELIE.JOHN AT A1KIRKTN at SQFMTS at SQF>,
NAME: Steven Lyall <LYALL.STEVEN AT A1KIRKTN at SQFMTS at SQF>,
LYALL@PSDVAX@VAXMAIL,
LYNN ST AMOUR @GEO,
NAME: Alex MacDonald <MACDONALD.ALEX AT A1KIRKTN at SQFMTS at SQF>,
NAME: Sandy Mackay. <MACKAY.SANDY AT A1KIRKTN at SQFMTS at SQF>,
MCKEE@TOLKIN@VAXMAIL,
NAME: angela mclaughlin <MCLAUGHLIN.ANGELA AT A1KIRKTN at SQFMTS at SQF>,
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MICHAEL QUINN @ILO,
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NAME: Gordon Proudfoot @SQF <PROUDFOOT.GORDON AT A1KIRKTN at SQFMTS at SQF>,
NAME: Allan Robertson <ROBERTSON.ALLAN AT A1KIRKTN at SQFMTS at SQF>,
NAME: Norman Ross <ROSS.NORMAN AT A1KIRKTN at SQFMTS at SQF>,
NAME: Allan Russell <RUSSELL.ALLAN AT A1KIRKTN at SQFMTS at SQF>,
SGREEN@SCOAYR@VAXMAIL,
NAME: LARRY SPEARS. <SPEARS.LARRY AT A1KIRKTN at SQFMTS at SQF>,
STUART GRANT @VLO,
NAME: Jim Sweet @SQF <SWEET.JIM AT A1KIRKTN at SQFMTS at SQF>,
aarmour@scoayr@vaxmail,
amccabe@scoayr@vaxmail,
antonellis@scoman@vaxmail,
aulds@cim2ni@vaxmail,
bainsworth@scoayr@vaxmail,
barbara cofsky @mlo,
bashby@scoayr@vaxmail,
bduffy@scoman@vaxmail,
benard@chipbz@tolkin@vaxmail,
bhaughton@scoayr@vaxmail,
blanchard@jupitr@vaxmail,
bob janssen @alf,
browne@tolkin@vaxmail,
burke@chipbz@tolkin@vaxmail,
butler@obsess@vaxmail,
cadieux@tolkin@vaxmail,
catkins@tolkin@vaxmail,
coffey@asdg@vaxmail,
coffey@cntrol@tolkin@vaxmail,
cohen@tolkin@vaxmail,
coleman@chipbz@tolkin@vaxmail,
colin allan @bro,
colin finlayson @geo,
crowley@tolkin@vaxmail,
daggett@islnds@vaxmail,
dave lawrence @ayo,
dbolster@scoayr@vaxmail,
demartino@scoman@vaxmail,
dick mcbride @ayo,
dmentzer@elmago@vaxmail,
don weymouth @ogo,
dsmillie@scoayr@vaxmail,
dury@bigq@vaxmail,
edtl@scoman@vaxmail,
eric reed @gao,
falvella@tolkin@vaxmail,
fred obrien @ayo,
golato@scoman@vaxmail,
goulet@scoman@vaxmail,
gross@asdg@vaxmail,
gsmyth@scoayr@vaxmail,
gutierrez@scoman@vaxmail,
hallinan@tolkin@vaxmail,
harry mcknight @geo,
hart@cntrol@vaxmail,
horst mischke @kbo,
htroute@scoayr@vaxmail,
hugh macnab @ayo,
hyer@skye@vaxmail,
iain rodger @ayo,
ian gillingham @ayo,
ian thorburn @ayo,
intrieri@cntrol@vaxmail,
isharp@scoayr@vaxmail,
jane roche @mso,
jaworski@packer@vaxmail,
jgleeson@macnas@vaxmail,
jim farragher @geo,
jim mccluney @mlo,
joseph impellizeri @mlo,
joshi@scoman@vaxmail,
kennedy@tolkin@vaxmail,
kielty@yield@vaxmail,
kshovelin@scoayr@vaxmail,
kurt benedini @unt,
leitch@oracle@vaxmail,
levine@tolkin@vaxmail,
lex alexander @ayo,
lidington@may09@vaxmail,
mangiafico@cntrol@vaxmail,
matthews@axis@vaxmail,
max ferro @vlo,
mcdonough@bigq@vaxmail,
mike barry @mlo,
mike titelbaum @mlo,
molloy@tolkin@vaxmail,
mulholland@scoman@vaxmail,
murphy@tolkin@vaxmail,
nass@tolkin@vaxmail,
nonnemaker@scoman@vaxmail,
nordengren@tolkin@vaxmail,
obutler@macnas@vaxmail,
oscilowski@packer@vaxmail,
otenti@scoman@vaxmail,
pdonovan@msbcs@vaxmail,
peloquin@scoman@vaxmail,
peter miller @geo,
pmccallum@scoayr@vaxmail,
pomiansky@obsess@vaxmail,
prickett@obsess@vaxmail,
rdodd@ayou16@scoayr@vaxmail,
rgill@macnas@vaxmail,
richard raya @kbo,
robin urry @bro,
shaoul@cntrol@vaxmail,
sherman@sofbas@vaxmail,
sieber@scoman@vaxmail,
smalanskas@scoman@vaxmail,
small@tolkin@vaxmail,
stuart grant @vlo,
tbrennan@macnas@vaxmail,
tom tracey @mlo,
ward@tolkin@vaxmail,
weinberger@cntrol@vaxmail,
wesley@cntrol@vaxmail,
wilson wright @ayo
|
| Here is an update that I found to .11, I assume that it was to
clarify the original memo (which I did not have a copy of thanks).
I guess this (.11) is the memo talked about, if so one might assume
by the attached, equipment can be used for DEC work at home?
Thanks for all the help so far. Steve
I N T E R O F F I C E M E M O R A N D U M
Date: 11-Dec-1992 02:06pm EST
From: STEVE BEHRENS @CORE
BEHRENS.STEVE AT A1 at CORA @ CORE
Dept: ASSISTANT CORPORATE CONTROLLER
Tel No: 244-6561
TO: See Below
Subject: DECEMBER 8 DISCRETIONARY SPENDING MEETING
Attached are the following items from the Dec. 8 Discretionary Spending
Meeting:
1) Report of Work Groups
2) Revised Proposal list
- Clarification of Home Equipment and IEG proposals.
Item 14
Item 16
Item 26
- Relocation included.
Item 40
Please call if you have any questions, changes, etc.
DECEMBER 8 MEETING
WORK GROUP NOTES
GROUP 1
Leader: Bill Van Atten
Triads: U.S. Field, Corp. Operations
Cost Leaders: Telecom - P. Brown/M. Endry
Agency/Contracts - M. Vanderpot
External Training - A. Zimmerle
- Reviewed status of U.S. Field "42 Point" discretionary spending
action plan.
- Reviewed additional help needed to implement proposals
ISSUE DRIVER
1. Need help on process and policy for M.Vanderpot
implementing Contract/Agency New and J. Finn, Dora Chu
Renewals - Total U.S.
2. Provide guidelines to help select P. Brown/M. Endry
appropriate method of conferencing for
their needs. (Voice, Desktop, Full Motion Video)
3. Need line-of-sight to international G. Loporto
Relocation.
4. Stop all Relocations. Exceptions need
approval of JFS direct reports.
5. Need Telecom expense reduction plan ASAP. P. Brown
6. New Proposal: reduce material that is
available to employees through Publication
& Circulation Services.
7. Stop all External Training. A. Zimmerle
DECEMBER 8 MEETING
WORK GROUP NOTES
GROUP 2
Leader: Rich Butler
Triads: Europe, GIA, Services
Cost Leaders: Travel - J. Flinn
Relocation - R. Johnson
Office Exp.- M. Lackey
Memberships/Subscriptions - M. Lackey
Legal/Audit- F. Binder
- Reviewed Services discretionary spending actions.
- Reviewed Europe and U.S. Relocation status.
Expense Spending Implementation Bus. Unit Open
Category Action Status Driver Issues
EUROPE
All Communicate Done Finance Follow-up
J. Smith memo Purchasing to ensure
delivery
Travel Implement policies. Ongoing Operations
Negotiate Pan-Euro
Avis deal. Done Purchasing
All Commodity Partly in place
purchasing $60M FY93
management. target. Purchasing
Facilities Consolidation In progress Purchasing,
PM&S
U.S. RELOCATION
Policy 20% ($13M) Under policy
Revisions committee review.
Target Q3.
Runzheimer 60% Part of policy
Revision review.
120 day $450K Q2-Q3
Relo. Receivables.
DECEMBER 8 MEETING
WORK GROUP NOTES
GROUP 3
Leader: Bob Paul
Triads: Software, Engineering, Marketing
Cost Leaders: Facilities,
Postage, Int. Freight - D. Hammond
Software Acquisition - B. Paul
Adv., Trade Shows, Promotion - C. Holleran
Employee Prizes/Awards - R. Glover
Expense Spending Implementation Bus. Unit Open
Category Action Status Driver Issues
**************************** Q3 - Q4 *************************************
Storage Take inventory Immediate Finance
Warehouses of Warehouses Facilities
-??- - owned+leased Distribution
Disposition contents
with appropriate
Spend Smart! rep.
Home Equip. <-CLARIFICATION->
Can only use DIAL
equip. (without
V.P. approval)
Competitor's <-CLARIFICATION->
Equipment Is OK w/V.P. exception
approval for labs.,
engineering, test.
IEG Stop all shipments, -Immediate -Take inventory
P.C.s, orders for internal -V.P. exception -Refer to DIAL
Terminals, use. -All new orders
Office peripherals, from DIAL
etc.
Don't stop DIAL, -Emphasize
STOP I.E.G. Idle Asset
awareness.
Software Communication!
Awareness of
copyright laws:
- don't copy, etc.
[Group 3 Continued]
Facilities Mothball 4-5 bldgs. Immediate -Behavior change
in New England -Don't make move
before Q4. just so people
are next to each
-Even if we own other --
-Use restructuring (e.g. contiguous
to right. space)
[Jim Magaldi]
Revisit change -Issue directions.
in paper saving.
Take N.R.E. -$1M->$50M (Non-Recurring Engineering)
with Engineering. -Get list
New Business -Push out
-Renegotiate
-Cancel
Leverage of
supplies.
DECEMBER 8 MEETING
WORK GROUP NOTES
GROUP 4
Leader: Jim Flanagan
Triads: Mass Storage, GIS, Manufacturing
Cost Leaders: Materials, Outbound Freight - J. McCluney
Home Equipment - J. Pacy
Idle Asset Mgt. - Tony Graves
- Reviewed status of Mass Storage discretionary spending actions.
- Key message to Cost Leaders and Triads:
"Obtain needed information from systems. Reporting milestones
promised for Q3 are the solution (Rameaka, Galloway). Do not channel
requests for information to the business units. They must not be
diverted from managing the business."
Discretionary Spending Recommendations
December 1 Meeting
I. THOSE HAVING Q2 AND LONG TERM IMPACT
ANNUALIZED FURTHER ACTIONS
SPENDING CATEGORY Q2 SAVINGS SAVINGS REQUIRED TO
(I.E., TRAVEL) (SHORT TERM) (LONG TERM) DRIVER IMPLEMENT
1. Agency/Lowest air $1.5M $5.1M Air programs Operating mgr
fare Employee support
Participation Enforcement
Mgmt reports
2. DEC Hotel Prog. $0.6M $2.0M
3. DEC Car Program $0.5M $1.5M
4. DEC Corp. Charge cards/ $1.0M Charge Cards
$10 receipts
5. Enforce TVL policy $6.3M
6. Coach Class Travel $1.2M - Policy
To/from Europe - Approval
Latin/S. America PDC/ASC
-Communications
7. Frequent Flyer $8.3M
------ ------
Travel Total $2.6M $25.4M
===== ======
8. Ext. Training - 1 $100K $2.5M Zimmerle
Eliminate use of external facilities for internal training.
9. Advertising $353K(1) $30-40M(2) Holleran
(1) Cancel ad programs. Review with CBU managers Q3 and beyond.
Set new targets with CBU.
(2) To be decided 12/14.
10. Software Acquisition $1M $60M Paul, et al.
1) Stop all purchases for "Internal Use" 3rd party BTS software ...
2) Consolidate and renegotiate 3rd party software agreements ...
11. Office Supplies $? $? Lackey, et al.
Stop all new purchases through Q2.
12. Postage $TBD(1,2) $TBD Hammond
(1) Stop all overnight mail except parts/customer proposals.
(2) Eliminate (US) employee distribution. Use interoffice mail.
TBD 12/7
13. Facilities $TBD(1) $70-100(2) Hammond
(1) List under separate cover specific actions.
(2) Mothball space. Freeze all capital expenditures. Central approval
at geography levels.
14. Home Equipment $? $? Pacy, Benton
Put hold on all new home equipment. Criticial reguirements to have V.P.
approval; only DIAL eqpt. w/o V.P. approval. Review dial-in reimbursement
and service maintenance. Stop purchase of non-DEC personal computers --
policy review underway.
15. [Now part of item 26.]
16. Agency/Contract $? $? Vanderpot
All new or renewal requirements for consultant/agency/contract resources
must have Operating Group V.P. approval. There are 3 exceptions. Refer
to memo from JFS dated Nov. 30 for details.
17. Electronic Purchasing$? $?
Immediately notify vendors holding blanket P.O.s to hold all shipments to
Digital.
II. THOSE HAVING LONG TERM IMPACT - NEED FURTHER ANALYSIS
ANNUALIZED FURTHER ACTIONS
SPENDING CATEGORY Q2 SAVINGS SAVINGS REQUIRED TO
(I.E., TRAVEL) (SHORT TERM) (LONG TERM) DRIVER IMPLEMENT
18. Fewer Legal Entities $0 $200/400K Mann, Behrens
19. Review IBM Patent $0 $3M+ Myrick, Siekman
Agreement
20. Renegotiate fees $0 ?? Steul, Hoffmann
with Legal+CPA firms
21. Materials - 1 $0 $>60M Van Leuvan, McDonough, Smith
Agree and action the Q3/4 Demand Plan by Product.
22. Materials - 2 $0 $10M Auman
Review all major contracts in Q3 for savings beyond current component
standards reduction commitments - 15%+.
23. Materials - 3 $? $50M Reidy, Auman
Defer receipt of components by 1 week and sustain throughout year.
Tie this to customer requirements and prod.-critical components.
One week of purchases is approx. $50M out of the year.
24. Idle Asset Mgt.- 1 $? $? Graves
Continue redistributing $90M+ of idle assets this year. Q1/2 has achieved
$424M.(?)
25. Idle Asset Mgt.- 2 $? $? Graves, Reidy
Accelerate sale and disposal of excess and obsolete inventories.
26. IEG Capital Process $? $? Pacy, Benton
Ensure IEG cuts get agreed and accelerated in line with Jack Smith
direction. Current plan reduced from $781 to $381M @MLP worldwide for
rest of year. Proposal forthcoming to cut further.
27. Freight $0 $? Nealon, McCluney, McDonough
Use of 3rd party vendors for distribution activity in U.S.
28. Materials - 4 $? $? McCluney, Behrens
Review T+C of A/P
29. Materials - 5 $? $? Strecker, McDonough
Product rationalizaton ...
30. Materials - 6 $? $? Strecker, McDonough
Component Standardizaton ..
31. Materials - 7 $0 $? Strecker, McDonough, Lackey
Business practices and policies
32. Rotation & Consign. $? $? Kupferberg, et al.
Assign clear accountability and responsibility for creation/need for R/C.
New metrics.
33. Ext. Training - 2 $? $? Zimmerle
Reduce cost of tuition reimbursement ..
34. Ext. Training - 3 $? $? Zimmerle
Eliminate redundant skill development programs internally.
35. Ext. Training - 4 $? $? Zimmerle
Establish guidelines, etc., to minimize use of external training.
36. Reduce spending 25% across the board. Williams
Recommendation changed to "adherence to Plan - publish - discipline, etc."
37. Telecom - 1 $? $? Brown
Cellular telephone billing - reduce costs by setting better rates.
38. Telecom - 2 $? $? Brown
Increase use of video-conferencing. Brown/Flinn to discuss including
question on travel authorization form for V-Conf. alternative.
39. Employee Awards $TBD(1) $TBD(2) Glover
(1) Consider deferral for balance of Q2. 48 hr. decision.
(2) Review recommendation with Mullarkey prior to 12/15, to begin Q3.
40. Relocation $225K(1) $13-16M(2) Johnson
(1) Notify employees that Relocation Advances outstanding >120 days are due
and payable by 12/18/92, or corrective action will result.
(2) Domestic: revised policies to be implemented on 1/1/93 will reduce
costs 20-25% -- "Incented employee self sale program", Runzheimer program,
20 services reduced to industry benchmark level.
Distribution:
TO: ALAN ZIMMERLE @ALF
TO: TONY WALLACE @MRO
TO: TOM VANHUBEN @BXC
TO: MAURICE VANDERPOT @MLO
TO: BILL VANATTEN @MRO
Use the RDL option to see remainder of distribution lists.
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