Introduction

Define cost Explore various Present a

reduction and its techniques and successful
importance. strategies.
case study.

Highlight the Encourage

benefits and businesses to
challenges. take action.
 What is Cost Reduction?
Cost Reduction Defined Why it Matters

Cost reduction is the

practice of identifying,
analyzing, and
implementing measures to
lower an organization's
operational and production
expenses while
maintaining or improving
its products or services.
• Enhance profitability
• Ensure
competitiveness
• Enables efficient
resource allocations
 Cost Reduction Techniques

Standard Costing Value Analysis Budgetary Control

Establishing cost Assessing the Managing budgets

standards and value of to control and
comparing them components and reduce costs.
to actual costs. materials in
products.
Cost Reduction Strategies

Outsourcing Process Improvement Automation

Delegating non- Streamlining
Implementing
core functions to and optimizing
technology to
specialized business reduce manual
providers. processes. labor and errors.
Successful
Background
Cost GreenClean Ltd., a leader in eco-friendly cleaning products, needed to
Reduction reduce costs while upholding sustainability commitments.
Case Study

Strategies
1.Eco-Sourcing Materials: Sourced sustainable raw materials, reducing costs.
2.Automation: Invested in automation, cutting labor expenses and waste.
3.Lean Manufacturing: Implemented lean principles for process efficiency.

Results
•Cost Savings: $1.8 million in a year. Conclusion
•Increased Sales: Competitive pricing led GreenClean Ltd. shows how cost reduction
to a 30% sales boost. can align with sustainability goals, resulting
•Sustainability Maintained: Reduced the
in financial and environmental success.
carbon footprint by 20%.
 Benefits of Cost Reduction
Increased Profitability
More revenue translates into higher profits.

Improved Competitiveness
Lower costs allow for competitive pricing.

Better Resource Allocation

Funds can be invested in growth and innovation.
 Challenges in Cost Reduction
Maintaining Quality
Reducing costs should not compromise quality.

Lack of Resources
Initial investments and expertise may be needed.

Resistance to Change
Employees may resist process changes.
In conclusion, cost reduction is vital for business success. By
understanding its definition, techniques, strategies, and the potential
benefits and challenges, organizations can make informed decisions
to improve their financial health. We encourage businesses to take
action and explore cost reduction opportunities. Thank you for your
attention.
THANKYOU
Name : Dipesh Talreja
Roll No : 150
Subject : Management
Accounting 305