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DSME in large cost cutting exercise

Seoul: Daewoo Shipbuilding & Marine Engineering (DSME) disclosed on Thursday that it 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 heighten favorable outcomes, the company plans to reform its system from its planning stages and provide a wide range of increased incentives to departments that achieve notable results.
In particular, DSME will weigh heavily on strengthening not only the overall management system, but also all processes in the industry by lending efforts towards improving elements that are wasteful and maximizing efficiency in the application of the system and materials.
The firm had already started its movement to down goods by 20 percent last May, adopting a curtailed management system to save 20 percent in purchases and actual surveys, managing to post 141.9 billion won in reduced costs.
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. [06/02/09]

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