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WK #1 (Cost): Management makes Costs Go Down PDF Print E-mail




“Costs go down when ‘Management’ makes them go down, measures cost reduction and makes it important to the organization.


Manager with Paper




















  • In order to achieve "Cost Reduction", there is no substitute for "Management" (Management refers to Senior Management) making it important to the organization.
  • Management must make sure that there are clear systems and reports for measurement that are meaningful to the organization.  Trend analysis is important.

  • Management must meet with the "Cost Reduction Team" regularly to review costs and to give praise for good results or show concern for poor results.

  • Management must "understand" the "cost system" and "costs" well enough that they are not mislead by aberations - good or bad.


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