“Cost cutting is no longer the
solution to sustainable profitability,
the key to success is finding creative
ways to prevent cost.”
“Cost reduction is to be understood as the
achievement of real and permanent
reductions in the unit cost of the goods
manufactured or services rendered without
impassing their suitability for the use that is
intended”- ICWA London.
Achieving the goals of cost
Reducing the cost per unit.
How to reduce cost?
Elimination of waste
Improved Standards of Quality.
Areas of Cost Reduction
Increasing the production volume.
Extension of market and price differentials.
Size of business units.
5.Sales and marketing
Tools and Techniques of Cost
Just in Time approach.
Total Quality Control.
Economic Order Quantity.
Inventory Management and Control.