企業(yè)成本控制成本降低途徑外文翻譯

1、文獻(xiàn)出處：Barbole A N, Nalwade Y D, Parakh S D. Impact Of Cost Control And CostReduction Techniques On Manufacturing SectorJ. Indian Streams Research, 2013,3(5):1-8.第一部分為譯文，第二部分為原文。默認(rèn)格式：中文五號(hào)宋體，英文五號(hào)Times New Roma,行間距1.5倍。成本控制和成本降低技術(shù)對(duì)制造業(yè)的影響摘要：如今，任何一家公司的生存都是如何管理好其產(chǎn)品/服務(wù)的成本、質(zhì)量和性能。 客戶不斷要求高質(zhì)量和高性能的產(chǎn)品/服務(wù)，同時(shí)，他們希望價(jià)

2、格下降。股東們還要求對(duì)公 司的投資進(jìn)行必要的回報(bào)率。因此，成本已成為一個(gè)殘余。挑戰(zhàn)是能夠在規(guī)定的成本框架內(nèi) 制造或提供服務(wù)。成本管理必須是持續(xù)不斷的改進(jìn)。今天，市場(chǎng)領(lǐng)導(dǎo)者甚至將降本成本作為 戰(zhàn)略要素。他們希望通過(guò)不斷擴(kuò)大成本與競(jìng)爭(zhēng)對(duì)手之間的差距，重新部署資源以實(shí)現(xiàn)盈利增 長(zhǎng)，保持領(lǐng)先地位。本文將重點(diǎn)介紹成本控制和成本降低技術(shù)在目前情況下的影響。關(guān)鍵詞：成本控制，成本降低，制造業(yè)。引言企業(yè)必須生存、成長(zhǎng)和繁榮，成本控制和成本降低都是確保實(shí)現(xiàn)這些目標(biāo)所必需的活動(dòng)。 隨著印度經(jīng)濟(jì)的自由化和全球化的發(fā)展，現(xiàn)在有來(lái)自世界四面八方的激烈競(jìng)爭(zhēng)。面對(duì)這些競(jìng) 爭(zhēng)，成本控制和降低成本就顯得尤為重要。因此，需要研究

3、用于成本控制和降低成本的不同工具和技術(shù)。同樣，我們需要從深入理 解成本的概念開(kāi)始。一旦我們了解了成本的含義、它的可控性、成本產(chǎn)生的主要方面，那么 我們就可以考慮如何控制或降低成本。我們可以根據(jù)其性質(zhì)對(duì)成本進(jìn)行分類，然后我們可以 很容易地知道可以控制或減少的成本。這里更多的強(qiáng)調(diào)的是可控的和不可控制的成本，因?yàn)檫@種成本的分類有助于我們理解我 們可以怎樣去掌控。如果成本可以控制，那么應(yīng)該采取什么方法來(lái)控制;如果不能控制，應(yīng) 該怎么辦。這完全取決于管理層的決定，它是管理會(huì)計(jì)的活動(dòng)。1隨著給定類型的行業(yè)，行業(yè)的成本要素也各不相同。比亞喬車輛Ltd.是一家從事生產(chǎn) 世界級(jí)柴油三輪車和四輪車的制造業(yè)。制造業(yè)

4、在機(jī)器和人力的幫助下，將原材料轉(zhuǎn)化為成品。材料成本在總成本中的貢獻(xiàn)超過(guò) 70%。因此，主要關(guān)注的是這個(gè)行業(yè)的原材料。因此，要更加重視材料成本，需要找出控制 和減少材料成本的可能結(jié)果。在此我研究了各種在Piaggio Vehicles Pvt中使用/應(yīng)用/實(shí)現(xiàn)的工具和技術(shù)。控制和降低 成本。公司有效利用成本控制預(yù)算控制系統(tǒng)，降低價(jià)值工程和質(zhì)量控制。這是對(duì)成本控制和成本降低的不同工具和技術(shù)的研究。在這個(gè)項(xiàng)目中，研究人員已經(jīng)完 成了這個(gè)項(xiàng)目，了解公司的成本意識(shí)，不同的過(guò)程，這些技術(shù)的可用性等。研究目標(biāo)了解成本，成本控制和成本降低的基本概念。研究可用于成本控制和成本降低的各種工具和技術(shù)，以研究制造部門

5、中使用的成本控制 和成本降低技術(shù)，以及在實(shí)施這些技術(shù)后分析組件成本的變化。研究范圍研究的范圍僅限于制造業(yè)，即生產(chǎn)工廠。更重視材料成本。它不包括其他費(fèi)用或間接費(fèi) 用，如薪水，營(yíng)銷費(fèi)用等。文獻(xiàn)評(píng)論成本在商業(yè)中，成本通常是對(duì)生產(chǎn)和交付產(chǎn)品或服務(wù)的努力，材料，資源，時(shí)間和公用事業(yè) 消耗的金錢估值，風(fēng)險(xiǎn)以及生產(chǎn)和交付過(guò)程中的機(jī)會(huì)。成本控制和成本降低企業(yè)必須生存，成長(zhǎng)，繁榮。成本控制和成本降低是確保實(shí)現(xiàn)這些目標(biāo)所必需的活動(dòng)。 隨著印度經(jīng)濟(jì)與全球化的開(kāi)放，現(xiàn)在世界各國(guó)關(guān)切的喉嚨競(jìng)爭(zhēng)已經(jīng)減退。因此，現(xiàn)在有一場(chǎng) 比賽來(lái)確保一個(gè)生存的地方。這增加了成本控制和降低成本的重要性。成本控制成本控制是行政行為對(duì)經(jīng)營(yíng)業(yè)務(wù)的

6、成本進(jìn)行管理，特別是在成本核算方面采取行動(dòng)的時(shí) 候。成本控制是一種功能，它保證了實(shí)際的工作完成后的初衷。這是一個(gè)廣為接受的概念， 即每個(gè)費(fèi)用要素的實(shí)際費(fèi)用應(yīng)在預(yù)算內(nèi)。成本控制被認(rèn)為是在特定環(huán)境中實(shí)現(xiàn)成本目標(biāo)的管 理努力。成本控制不是一個(gè)特定的程序。相反，它是經(jīng)常進(jìn)行的例行活動(dòng)。必須控制成本； 否則，將會(huì)有浪費(fèi)、挪用公款和貪污。檢查這些浪費(fèi)和挪用資源是一項(xiàng)持續(xù)的活動(dòng)。去年，一家企業(yè)進(jìn)行更好的控制并不意味著現(xiàn)在可以放松成本控制。成本控制在很大程 度上依賴會(huì)計(jì)技術(shù)。一些關(guān)鍵的成本控制技術(shù)是責(zé)任會(huì)計(jì)控制系統(tǒng)，標(biāo)準(zhǔn)成本核算，預(yù)算控 制和成本管理比。因此，成本控制包括組織活動(dòng)的例行管理，如浪費(fèi)控制，盜用，

7、工作時(shí)間 的損失，設(shè)置時(shí)間等。成本控制定義表明，一家公司應(yīng)該調(diào)查良好的程序，以了解公司成本不如預(yù)定或預(yù)算成 本的原因。因此，成本控制可以幫助公司確定，如果它真的花費(fèi)比實(shí)際花費(fèi)的多。盡管成為財(cái)務(wù)專家了解成本控制的定義不是至關(guān)重要的，但規(guī)劃和實(shí)際執(zhí)行成本控制技 術(shù)可能是一個(gè)很大的挑戰(zhàn)。高級(jí)管理人員必須對(duì)成本控制軟件有很好的了解，成本控制軟件 是有效成本控制技術(shù)的一部分。成本控制的重要性i）它使公司能夠?qū)崿F(xiàn)其既定目標(biāo)；ii）能夠正確利用公司的資源；iii）通過(guò)保持企業(yè)的 競(jìng)爭(zhēng)能力，確保企業(yè)的生存和成長(zhǎng)；iv）確保組織保持高效。降低成本“降低成本被理解為實(shí)現(xiàn)和永久減少產(chǎn)品制造或服務(wù)的單位成本，而不會(huì)損

8、害其對(duì)使用 目的的適用性”。降低成本是系統(tǒng)地努力通過(guò)消除所有形式的浪費(fèi)和不必要的費(fèi)用來(lái)改善利 潤(rùn)率，而不損害收入的產(chǎn)生。這個(gè)活動(dòng)的一些常用的同義詞是利潤(rùn)提高，成本改進(jìn)和方法改 進(jìn)。但是，無(wú)論使用什么術(shù)語(yǔ)，降低成本的目的是通過(guò)獲得公司所花費(fèi)的每一盧比資金的最 大回報(bào)來(lái)抵消擠壓利潤(rùn)的影響。因此，降低成本不應(yīng)與成本節(jié)約和成本控制混淆。節(jié)約成本可能是暫時(shí)性的，可能是以 質(zhì)量為代價(jià)的。降低成本意味著保留產(chǎn)品的基本特征和質(zhì)量，因此必須局限于制造，管理， 分配和銷售成本的永久和真正的節(jié)省，這是通過(guò)消除浪費(fèi)和不必要的因素形成的產(chǎn)品以及與 之相關(guān)的技術(shù)和實(shí)踐。換句話說(shuō)，通過(guò)使用的改進(jìn)的方法和技術(shù)來(lái)保留產(chǎn)品的基本

9、特征和技術(shù)和質(zhì)量，從而實(shí) 現(xiàn)單位成本的永久性降低。但降低成本的定義不包括減少或減少相應(yīng)政府所產(chǎn)生的支出。行 動(dòng)或價(jià)格協(xié)議的效果。降低成本的定義中涉及的三重假設(shè)可歸納如下：.有一個(gè)成本單位節(jié)約.這種節(jié)約是長(zhǎng)期性的.如果沒(méi)有改善，產(chǎn)品的效用和質(zhì)量不受影響降低成本的重要性i）提高公司的競(jìng)爭(zhēng)能力，從而確保公司的生存，成長(zhǎng)和繁榮ii）通過(guò)不傳遞業(yè)務(wù)本身的低效性，確?？蛻舻暮侠韮r(jià)格成本控制和成本降低的目的i）創(chuàng)造現(xiàn)金用于再投資研發(fā)ii）降低制造成本以保持競(jìng)爭(zhēng)力iii）降低服務(wù)成本以提供額外的服務(wù)iv）提高效率降低成本的原因i）提高公司價(jià)值ii）獲得競(jìng)爭(zhēng)優(yōu)勢(shì)iii）消除不必要的費(fèi)用iv）降低產(chǎn)品或服務(wù)的價(jià)格

10、成本控制與成本降低之間的差異用于成本控制和成本降低的工具和技術(shù)成本控制技術(shù)1）預(yù)算控制2）標(biāo)桿管理3）目標(biāo)成本核算成本控制技術(shù)預(yù)算控制預(yù)算控制是制定預(yù)算，將政策的責(zé)任與實(shí)際與預(yù)算結(jié)果的不斷比較，以個(gè)人行動(dòng)確保該 政策的目標(biāo)，或?yàn)槠湫抻喬峁┮罁?jù)。標(biāo)桿管理該公司正在衡量公司的業(yè)績(jī)，與一流公司的業(yè)績(jī)相比，確定了一流企業(yè)如何達(dá)到這些績(jī) 效水平，并將該信息作為公司目標(biāo)，戰(zhàn)略和實(shí)施的基礎(chǔ)。基準(zhǔn)測(cè)試是將業(yè)務(wù)流程和績(jī)效指標(biāo)與其他行業(yè)的行業(yè)最佳和/或最佳實(shí)踐進(jìn)行比較的過(guò) 程。通常測(cè)量的尺寸是質(zhì)量，時(shí)間和成本。在基準(zhǔn)化過(guò)程中，管理層確定了行業(yè)中最好的公 司，或者在其他類似流程的另一個(gè)行業(yè)中，將所研究的結(jié)果與過(guò)程（

11、“目標(biāo)”）與自己的結(jié) 果和流程進(jìn)行比較。以這種方式，他們了解目標(biāo)的執(zhí)行情況，更重要的是解釋為什么這些企 業(yè)成功的業(yè)務(wù)流程。目標(biāo)成本核算目標(biāo)成本計(jì)算是指產(chǎn)品的設(shè)計(jì)以及用于生產(chǎn)產(chǎn)品的過(guò)程，以便最終可以以成本制造產(chǎn)品， 從而使產(chǎn)品以估計(jì)的市場(chǎng)驅(qū)動(dòng)價(jià)格出售時(shí)可以賺取利潤(rùn)。這個(gè)估計(jì)價(jià)格叫做目標(biāo)價(jià)。成本降低技術(shù)1）價(jià)值分析與價(jià)值工程2）質(zhì)量控制3）業(yè)務(wù)流程再造4）庫(kù)存管理5）成本核算6）工作研究方法價(jià)值分析與價(jià)值工程價(jià)值分析是一種通常在采購(gòu)和方法工程之間共同發(fā)生的活動(dòng)。此活動(dòng)旨在修改材料，零 件和產(chǎn)品的規(guī)格，以降低其成本，同時(shí)降低其原有功能。重點(diǎn)放在產(chǎn)品的價(jià)值上。價(jià)值分析 也被稱為價(jià)值工程。質(zhì)量控制質(zhì)量控

12、制是指必須執(zhí)行的所有這些功能或活動(dòng)，以填補(bǔ)公司的質(zhì)量目標(biāo)。質(zhì)量控制旨在 通過(guò)檢查來(lái)識(shí)別缺陷的根本原因，采取糾正措施，克服未來(lái)生產(chǎn)的缺陷。質(zhì)量控制有助于最 小化檢驗(yàn)和拒絕的成本。質(zhì)量控制是防止缺陷而不是檢測(cè)缺陷的一種方法。最終目標(biāo)是提供 可靠，滿意，經(jīng)濟(jì)的產(chǎn)品。業(yè)務(wù)流程再造對(duì)業(yè)務(wù)過(guò)程進(jìn)行根本的重新思考和激進(jìn)的重新設(shè)計(jì)，在成本，質(zhì)量，服務(wù)和市場(chǎng)速度等 關(guān)鍵的現(xiàn)代性績(jī)效指標(biāo)中取得顯著的改進(jìn)。BPR流程要求對(duì)過(guò)程的基本了解創(chuàng)造性思維擺脫舊傳統(tǒng)和假設(shè)有效利用信息技術(shù)BPR中的步驟1）確定改變部分2）確定再造過(guò)程3）評(píng)估重組的能力（IT&HR）4）了解當(dāng)前流程5）創(chuàng)建新的流程設(shè)計(jì)6）實(shí)施重新設(shè)計(jì)的流程庫(kù)存

13、管理庫(kù)存管理涉及到減少庫(kù)存成本的管理，政策和程序。庫(kù)存管理涉及制定和管理政策，系 統(tǒng)和程序，這將最大限度地減少與庫(kù)存決策和相關(guān)功能（如客戶服務(wù)要求，生產(chǎn)計(jì)劃，采購(gòu) 和流量）相關(guān)的總體成本。成本核算成本核算是現(xiàn)有產(chǎn)品制造階段成本降低的過(guò)程。日本語(yǔ)Kaizen”是指通過(guò)小規(guī)?；顒?dòng) 不斷逐步改進(jìn)，而不是通過(guò)創(chuàng)新或大量投資技術(shù)進(jìn)行大規(guī)?；虼蠓雀纳?。工作研究工作研究是對(duì)改善影響生產(chǎn)力的因素進(jìn)行系統(tǒng)，客觀和批判的考察。它使用方法研究和 工作測(cè)量的技術(shù)來(lái)確保人力和物力資源在進(jìn)行具體活動(dòng)時(shí)盡可能最好地使用。數(shù)據(jù)分析與解釋價(jià)值工程1）后輪轂的價(jià)值工程下表顯示了價(jià)值工程后后輪轂總成本的下降。解釋：實(shí)施價(jià)值工程后

14、，圓錐，螺母，墊圈零件被淘汰。輪轂本身被放置在主軸中。它降低了 盧比的成本。因?yàn)殄F體，墊圈和螺母等部件被消除，而且元件的成本也被消除。2）保險(xiǎn)絲箱的價(jià)值工程它是本地化-線束，早期是從意大利進(jìn)口的（制造商-MTA）現(xiàn)在是與TerminalTechnology 有限公司進(jìn)行本地化的。具有相同的規(guī)格和成本的降低。解釋由于位置的變化，成本降低到38盧比，在那之前它花費(fèi)75.11盧比。3）散熱器風(fēng)機(jī)電機(jī)本地化項(xiàng)目下表顯示了價(jià)值工程在散熱器風(fēng)扇電機(jī)成本中的影響解釋散熱器風(fēng)扇電機(jī)本地化項(xiàng)目：在此之前，他們正在使用意大利M/s電裝機(jī)的風(fēng)扇電機(jī)， 該電機(jī)采用M/sIndrad，Chennai進(jìn)行本地化，具有相同

15、的規(guī)格并降低了成本。140/車輛。結(jié)論在制造單位，其主要成本要素是材料成本。為了降低成本，制造公司更喜歡價(jià)值工程， 質(zhì)量控制，預(yù)算控制等技術(shù)。這種技術(shù)實(shí)現(xiàn)了公司的目標(biāo)，即“低成本制造商”。該文件指出，成本降低技術(shù)現(xiàn)在需要在每個(gè)組織中實(shí)施。本文的目的是找出各階段正在 使用的成本降低和成本控制技術(shù)及其對(duì)材料成本的影響。論文的第二個(gè)目的是找到所有其他 有用的降低成本的技術(shù)。在復(fù)雜的商業(yè)環(huán)境下，當(dāng)銷售減少和不確定時(shí)，每個(gè)企業(yè)都必須盡快采用降低成本的策 略，以避免業(yè)務(wù)蒙受損失。通過(guò)使用該公司已經(jīng)實(shí)現(xiàn)了其“低成本制造商”的基本目標(biāo)。IMPACT OF COST CONTROL AND COST REDUC

16、TION TECHNIQUES ON MANUFACTURING SECTORAbstract:The survival triplet today for any company is how to manage its product / service Cost, quality, and performance. The customers are continuously demanding high quality and better performance products/services and at the same time, they want the prices

17、to fall. The shareholders are also demanding a required rate of return on their investment with the company. Thus, cost has become a residual. The challenge is being able to manufacture or provide service within the stipulated cost framework. Thus, cost management has to be an ongoing continuous imp

18、rovement programmed. Today the market leaders are even pursuing cost-reduction as a strategic Imperative. They want to stay ahead of the market by continuously widening the gap between their cost and that of their competitors and re-deploy the resources for profitable growth. The paper will focus on

19、 impact of cost control and cost reduction techniques in present scenario.KEYWORDS:Cost Control, Cost Reduction, Manufacturing Sector.INTRODUCTION:A business enterprise must survive, grow, and prosper. Cost Control and Cost Reduction both are the activities necessary for ensuring that these objectiv

20、es are fulfilled. With the liberalization of the Indian Economy and Globalization, there is now a cut throat competition from various concerns of the world. As a result there is now a race to secure a place for survival. This has increased the importance of Cost Control and Cost Reduction.Hence it i

21、s required to study the different tools and techniques used for the Cost Control and Cost Reduction. For the same we need to start with understanding deeply the concept of cost. Once we understand the meaning of cost, its controllability, main areas where cost arises, then we can think of how to con

22、trol or reduce the cost. We can classify the cost according to their nature, behavior then we can easily know the cost which can be controlled or reduced.Here more emphasis is on the Controllable and Non-Controllable cost, because this classification of the costs helps us understanding what and how

23、we can control. If the cost can be controlled then what steps should be taken for controlling purpose; if cannot be controlled, what should be done. It is totally depends upon the managerial decisions, and it is the activity of Management Accounting.With the given type of industry the cost element v

24、aries for the industry. Piaggio Vehicles Pvt. Ltd. is a manufacturing industry engaged in producing world-class diesel 3-wheelers and 4-wheelers.Manufacturing industries are engaged in transforming raw material into finished product with the help of machines and manpower. The contribution of materia

25、l cost in the total cost is more than 70%. Hence the main focus is on raw material for this industry. Therefore, more emphasis should be given to the material cost and need to find out the possible outcomes to control & reduce the material cost.In this I studied various tools and techniques used / a

26、pplied / implemented in Piaggio Vehicles Pvt. Ltd. for controlling and reducing the cost. The company effectively utilizes Budgetary Control System for Cost Control, as well as Value Engineering and Quality Control for the Cost Reduction.It is a study of different tools and techniques used for the c

27、ost control and cost reduction. Inthis project researcher has done this project for knowing the companies cost consciousness, its different processes, usability of these techniques etc.OBJECTIVES OF THE STUDYTo understand the basic concept of Cost, Cost Control, and Cost ReductionTo study various To

28、ol and Techniques available for Cost Control and Cost Reduction To study the Cost Control and Cost Reduction techniques used in manufacturing sector. To analyze the changes in component cost after implementing these techniquesSCOPE OF THE STUDYThe scope of the study is limited to only the manufactur

29、ing industry i.eand production plant. The more emphasis is given to the material cost. It does not cover the other expense or overheads like Salary, Marketing expense etc.LITERATURE REVIEWCost:An amount, that has to be paid or given up in order to get something. In business, cost is usually a moneta

30、ry valuation of effort, material, resources, time and utilities consumed, risk incurred, and opportunities forgone in production and delivery of a goods or service.Cost Control and Cost ReductionA business enterprise must survive, grow, and prosper. Cost Control and Cost Reduction are activities nec

31、essary for ensuring that these objectives are fulfilled. With the liberalization of the Indian Economy and Globalization, there is now a cut throat competition from various concerns of the world. As a result there is now a race to secure a place for survival. This has increased the importance of cos

32、t control and Cost Reduction.Cost Control“Cost control is the regulation by executive action of the costs of operating an undertaking particularly where such action is guided by cost accounting.”Cost Control is function, which makes sure that actual work is done to fulfill the original intention.It

33、is a widely accepted notion that the actual costs for each cost element should be within the budget.Cost control is thought of as a managerial effort to attain cost goals within a particular environment. Cost control is not a specific program. Rather, it is a routine activity to be frequently carrie

34、d out. Cost must be controlled; otherwise, there will be wastage, misappropriation and embezzlement.Checking such wastage and misappropriation of resources is a continuous activity.A firm exercising a better control last year does not mean that it has now been relaxed from the cost control function.

35、 Cost control relies heavily on accounting techniques. Some of the key cost control techniques are responsibility accounting control system, standard costing, budgetary control and cost management ratios. Therefore, cost control includes the routine management of the organizational activities, such

36、as controlling of wastage, misappropriation, loss of work time, set up time etc.The cost control definition suggests that a company should investigate good procedures for finding out the reason why the costs of the company are not as per the pre-decided or budgeted costs. Thus, cost control can help

37、 a company determine, if it is really spending more than it should actually spend.Though it is not essential to be a finance expert to understand the definition of cost control, planning and actually implementing the cost control techniques can be quite a big challenge. It is essential for the senio

38、r level managers to have a good understanding of the cost control software which is a part of effective cost control techniques.Importance of Cost Controli)It enables the firm to achieve its defined objectives. ii)It leads to proper utilization of the firms resourcesIt ensures the survival and growt

39、h of a firm by preserving its competitive capability10It makes sure that organization remains efficient.COST REDUCTION“Cost Reduction is to be understood as the achievement of real and permanent reduction in the unit cost of goods manufacture or services rendered without impairing their suitability

40、for the use intended”.Cost Reduction is a systematic effort to improve profit margins by eliminating all forms of waste and unnecessary expense without impairing the generation of revenues. Some commonly used synonyms for this activity are profit improvement, cost improvement, and methods improvemen

41、t. But, regardless of the terminology used, the aim of cost reduction is to offset the impact of a squeeze on profits by getting the maximum return for every rupee of funds spent by the company.Cost reduction, should therefore, not be confused with cost saving and cost control. Cost saving could be

42、a temporary affair and may be at the cost of quality. Cost reduction implies the retention of essential characteristics and quality of the product and thus it must be confined to permanent and genuine savings in the costs of manufacture, administration, distribution and selling, brought about by eli

43、mination of wasteful and inessential elements form the design of the product and from the techniques and practices carried out in connection therewith.In other words, the essential characteristics and techniques and quality of the products are retained through improved methods and techniques used an

44、d thereby a permanent reduction in the unit cost is achieved. The definition of cost reduction does not however include reduction in expenditure arising from reduction or similar govt. action or the effect of price agreements.The three fold assumption involved in the definition of cost reduction may

45、 be summarized as under:There is saving in a cost unitSuch saving is of a permanent natureThe utility and quality of goods remain unaffected, if not improvedImportance of Cost ReductionIt leads to an improvement in the competitive capabilities of the company and thereby11 ensures its survival, growt

46、h, and prosperityIt ensures reasonable prices to customers by not passing on the inefficiency of the business itself Purpose for Cost Control and Cost ReductionTo create cash for reinvest in R&DTo reduce manufacturing cost to stay competitiveTo lower cost of service in order to provide additional se

47、rvices iv)To become more efficientReasons for Cost Reduction i)To increase company value； ii)To get competitive advantage； iii) To eliminate unnecessary expenses iv)To reduce price of product or serviceDifference between Cost Control and Cost ReductionTools and Techniques Used For Cost Control and C

48、ost ReductionCost Control Techniques1) Budgetary Control 2)Bench Marking 3)Target CostingCOST CONTROL TECHNIQUESBudgetary ControlBudgetary Control is an establishment of budgets relating the responsibilities of a policy and the continuous comparison of actual with budgeted results either to secure b

49、y individual action the objective of that policy, or to provide a basis for its revision.Bench MarkingIt is measuring the companys performance against that of Best-In-Class companies determining how the Best-In-Class achieve those performance levels and using the information as a basis for the compa

50、nys targets, strategies and implementation.Benchmarking is the process of comparing ones business processes and performance metrics to industry bests and/or best practices from other industries. Dimensions typically measured are quality, time and cost. In the process of benchmarking, management iden

51、tifies the best firms in their industry, or in another industry where similar processes exist, and compare the results and processes of those studied (the targets) to ones own results and processes. In this way, they learn how well the targets perform and, more importantly, the business processes th

52、at explain why these firms are successful.12Target CostingTarget costing refers to the design of product, and the processes used to produce it, so that ultimately the product can be manufactured at a cost that will enable the firm to make profit when the product is sold at an estimated market-driven

53、 price. This estimated price is called target price.Cost Reduction Techniques1)Value Analysis and Value Engineering ； 2)Quality Control ； 3)Business Process Reengineering； 4)Inventory Management； 5)Kaizen Costing； 6)Work Study MethodValue Analysis and Value EngineeringValue Analysis is an activity t

54、hat typically occurs jointly between purchasing and method engineering. This activity is aimed at modifying the specifications of materials, parts, and products to reduce their costs while reducing their original function. Focus is placed on the value of the product. Value Analysis is also called as

55、 Value Engineering.Quality ControlQuality Control refers to all those functions or activities that must be performed to fill the companys Quality objectives. Quality Control aims at investigating the root cause for defects indentified by inspection and take corrective action to overcome the defects

56、for future production. Quality Control helps to minimize the cost of Inspection and Rejection. Quality Control is an approach to prevent the defects rather than detecting the defects. The ultimate aim is to provide products which are dependable, Satisfactory, Economical.Business Process Reengineerin

57、gA fundamental re-thinking and radical re-design of business processes, to achieve dramatic improvement, in critical contemporary measures of performance such as cost, quality, service and speed to market.Requirement of BPR ProcessFundamental Understanding of the processCreative thinking to break aw

58、ay from old traditions and assumptions Effective use of Information TechnologySteps in BPRState need for change13Identify process of reengineeringEvaluate enablers for reengineering (IT & HR) 4)Understanding the current process5)Create a new process design 6)Implement the reengineered processInvento

59、ry ManagementInventory Management involves administration, policies, and procedures to reduce in inventory cost. Inventory Management involves the development and administration of policies, systems and procedures which will minimize total costs relative to inventory decisions and related functions

60、such as customer service requirements, production scheduling, purchasing and traffic.Kaizen CostingKaizen costing is the process of cost reduction during the manufacturing phase of an existing product. The Japanese word Kaizen refers to continual and gradual improvement through small activities, rat