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This article includes a list of general references, but it remains largely unverified because it lacks sufficient corresponding inline citations. (November 2011) (Learn how and when to remove this template message)
Cost reduction is the process used by companies to reduce their costs and increase their profits. Depending on a company’s services or product, the strategies can vary. Every decision in the product development process affects cost.
Cost reduction strategies
- Supplier consolidation
- Component consolidations
- Low-cost country sourcing
- Request for quotations (RFQ)
- Supplier cost breakdown analysis
- Function cost analysis / Value analysis / Value engineering
- Design for manufacture / Design for assembly
- Reverse costing
- Cost driver analysis
- Product benchmarking
- Design to cost
- Design workshops with suppliers
- Competitor benchmarking
- Barrett R. Crane. "Cycle time & cost reduction in a low volume manufacturing environment". MIT DSpace. hdl:1721.1/11020.
- Apichart Jearasatit. "Using a total landed cost model to foster global logistics strategy in the electronics industry". MIT DSpace. hdl:1721.1/60836.
- Bryan K. Parks. "Cost and lead time reduction in the manufacture off injection molding tools". MIT DSpace. hdl:1721.1/12092.