DSME in large cost cutting exercise

Daewoo Shipbuilding & Marine Engineering (DSME) has plans to cut costs by 624.5 billion won this year to prepare against the global economic crisis and the slump in the overall shipbuilding industry. DSME seeks to firmly establish the ‘OK culture’ both in and around the company, which refers to carrying out all tasks related to reducing costs.

Furthermore, in order to improve the chances of achieving this objective, the company plans to reform its systems starting with the planning stages and provide a wide range of increased incentives to departments that achieve notable results. In particular, DSME will focus heavily on strengthening not only the overall management system, but also all processes within its scope by encouraging efforts towards improving elements that are wasteful and maximizing efficiency in the application of systems and materials.

The firm had already started this process by cutting down on expenditure by streamlining management system to save 20% in purchases and actual surveys resulting in savings of 141.9 billion won. DSME posted more than 13 trillion won in sales this year and has set a target of receiving over $10 billion in orders for four consecutive years.