As per the current business scenario, the product costs reduction is one of the important activities, crucially playing a vital role in everywhere particularly, all sectors of business activities and manufacturing industries on the way to satisfy all the classes of customers, around the world.
The product costs reduction is the strategy of reducing the total manufacturing cost of the product without affecting the quality and starts with the purchase of raw material and ended with the finished product to the maximum possible extent, at regular intervals.
The total manufacturing cost of any finished product is the sum of the actual cost derived for every single activity that practically carried out or required to convert the raw material into a finished product till reaching the supply end with most safe and secure.
The product costs reduction is an important strategy must be implemented in every manufacturing industry on time, without any fail, with the highest priority because, the difference of cost reduced will ultimately reflect the utilization of source and state of the global economy.
The product costs reduction is the strategy can be almost successfully carried out in several ways or methods however which all are grouped under two account heads PCRMA (Product Costs Reduction through Managerial Activities) and PCRTA (Product Costs Reduction through Technical Activities) and operates under two different heads of the departments, in parallel.
The product costs reduction can be achieved through the effective managerial activities such as study, estimate, evaluation, finding sources, buying, recruitment, training, controlling different expenses, selling, transport, insurance, etcetera.
Similarly, the product costs reduction can also be achieved through the efficient technical activities such as analysis, study, comparison with previous data’s, introducing improved versions of methods of processes and hi-tech facilities, training, etcetera.
Generally, the ultimate results obtained by the product costs reduction through technical activities will be much higher than the results due to the reduction through the managerial activities since, the involvement of technical activities are more.
At the outset, to achieve the product costs reduction, it is important to identify the managerial activities and technical activities to be executed, in prior and ensure the key certainties such as budget, period, net benefits, etcetera.
VEL CONSULTANCY and the group of VEL CONSULTANCY feels proud to inform that we are successfully doing Product Costs Reduction, followed by the systematic procedure to the industries, manufacturing different products and different business for the past two decades would like to be a part of success of every client from any part of the world and expecting more opportunities to serve, the best.