One of the main responsibility of a management is to find out the areas in which the excess costs may be reduced. Following are the main cost reduction areas:
1. Product Improvement
* Quality of a product
* Wastage minimization
* Proper designing of a product
2. Production Method And Layout Management
* Material handling system
* Layout management
* Time and motion study
* Standardization
* Modernization of plants and equipments
3. Marketing Areas
* Distribution channels
* Advertisement media
* Promotional Schemes
* Packing styles
* Transportation arrangement
4. Administrative And Financial Areas
* Purchase of supplies
* Reward punishment system
* Accounting system
* Financing alternatives
1. Product Improvement
* Quality of a product
* Wastage minimization
* Proper designing of a product
2. Production Method And Layout Management
* Material handling system
* Layout management
* Time and motion study
* Standardization
* Modernization of plants and equipments
3. Marketing Areas
* Distribution channels
* Advertisement media
* Promotional Schemes
* Packing styles
* Transportation arrangement
4. Administrative And Financial Areas
* Purchase of supplies
* Reward punishment system
* Accounting system
* Financing alternatives
