Back Kostensenkung German Reducción de costos Spanish کاهش هزینه Persian Réduction de coût French Költségcsökkentés Hungarian Kostenreductie Dutch Снижение затрат Russian 降低成本 Chinese

Cost reduction

Cost reduction is the process used by organisations aiming to reduce their costs and increase their profits, or to accommodate reduced income. Depending on a company’s services or products, the strategies can vary. Every decision in the product development process affects cost: design is typically considered to account for 70–80% of the final cost of a project such as an engineering project[1] or the construction of a building.[2] In the public sector, cost reduction programs can be used where income is reduced or to reduce debt levels.[3]

  1. ^ Barton, J. A. et al., Design determines 70% of cost? A review of implications for design evaluation, Journal of Engineering Design, Volume 12, published 1 March 2001
  2. ^ Designing Buildings Wiki, Cost control in building design and construction, last updated 15 August 2021, accessed 11 September 2021
  3. ^ McKinsey & Company, A smarter approach to cost reduction in the public sector, published 8 June 2018, accessed 19 April 2024

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