Free Drinks Continue But No Raises!
March 14, 2007
All Eclipse Enterprise,
We are writing you today to ask you for your help in controlling spending. As Vern & Peg have said, we need to start living within our means. And for us to do that effectively, we need everyone's help. As stock-holders of this company we have a responsibility to ourselves and to this enterprise.
We need to manage our cash just as we do at home. This is the beginning of an initiative to reduce spending, conserve cash and build a positive and disciplined attitude towards managing our expenses. This is our company and we have the opportunity to make a difference now - for our future.
Call to Action:
You know how to do your job in the most efficient manner, how things work and how to make them work better. In the past you may have felt that your opinion has not been heard or accepted. We will listen, that is a commitment to you. We need your ideas and your participation in saving money through productivity, identifying waste, recommending process improvements, and any other creative ways that will help us conserve cash and make us leaner and more productive. Your ideas should be communicated to your supervisor. Supervisors, please escalate these ideas immediately through your Leadership team.
As we gather ideas and suggestions from you, we have decided to implement the following cost control measures immediately.
Immediate Cash Conservation Initiatives:
- INVENTORY CONTROL: An inventory control plan is being implemented to consolidate tools & parts (including free stock & consumables) to prevent waste and loss of inventory. Please watch for a communication from Todd Fierro, VP Production.
- OVERTIME: All overtime must be scheduled and pre-approved by your organization's plant manager or director prior to work being performed.
- MERIT INCREASES: Unfortunately, merit increases for 2007 will not be awarded this year. Individual performance reviews will be postponed until July 2007 to maintain focus on the current task at hand. The payment of merit awards will be reviewed and reinstituted when the company meets its financial goals.
- HIRING: We will only be hiring new employees for aircraft production, engineering support for production, aircraft modifications and post delivery support. All other hiring is suspended until further notice.
-TEMPORARY LABOR/CONSULTING CONTRACTS: Temporary labor will only be utilized in support of line production, post delivery/aircraft modification and engineering operations in support of production.
- PRINTING & COPIES: Please reduce the amount of copies and printed materials - double sided print jobs will help. Today, stop producing color presentations and color copies. They look great but they cost 8.5 cents per copy vs less than 1 cent for black and white. Paper is very expensive; you can make an immediate impact here.
- FOOD: Catered lunches should only be used in support of business discussions which are best served by having lunch served while working. The number of lunches ordered should serve the guests and immediate company participants and not the department.
- BEVERAGES: Eclipse has been very generous and thoughtful in supplying free beverages to all employees. This will continue, however, we ask you to please not misuse this benefit. We are spending $50,000 per month right now on beverages alone!
- TRAVEL: Effective immediately, all company travel requires an approval of your organization's VP and Andrew Kamm, Acting CFO.
- FEDERAL EXPRESS/SHIPPING: FedEx will only be used to support transactions which generate immediate revenue and for critical documents, drawings etc. When FedEx is used it needs to be at the least expensive rate. When not using FedEx, use the US Mail. All departments will be asked to keep a log of their FedEx use. Prior planning when shipping can save money.
Team, we ask again for your help and support. Talk to one another and your supervisors, and bring forward any ideas you have on how we can be more efficient and save costs. We all will have to be self-disciplined in controlling spending. Hopefully these initiatives will make an immediate difference so further measures will not have to be taken.
If we work together and support one another, we will solve this problem
Acting Chief Financial Officer
Vice President, Product Support