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Having clarified some of the basic issues, in the context of the rural situation, let us now look at the types of projects S and T can be applied to. Types of Projects: 1. Cost Reduction Cost reduction is one of the primary applications of S and T. Cost reduction extends the availability of an existing service or product to a wider cross section of the people. The benefits from S and T are immediately applied and because the scale of operation is already big, the savings are multiplied many times over. Success in such projects also boosts the morale of the people doing the work. There are no extension or marketing problems. This is as important for government services as for private enterprises, small or big. Henry Ford had a concept that the difference between the cost of the end product and the cost of materials that go into it represents the scope for new technological development. If a motorcar costs Rs. 1 lakh and the cost of materials is only Rs. 20,000, the difference of Rs.80, 000 indicates the scope for better technology to reduce the prices and increase the market size. The other valuable concept we could take from Henry Ford, is his model T. If you want to reduce the cost and make it available to a larger population, stick to the main function and strip away the decorations. Another type of cost reduction comes from a radical change in design-reduction exercise. Value analysis is a useful technique in cost reduction projects. 2. Improving Productivity Improving productivity is another useful activity often allied to the cost reduction objective. But it is much more important than cost reduction itself. Improving productivity usually has an exponential effect. Unfortunately, it always gets a low priority in India. When we look for a labour intensive project, we need not, but we tend to use labour unproductively. Such programmes can be counter < Rural Development Through Education System 207
