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Half cost strategies: ambitious strategies which aim to reduce the costs of specific production processes or value adding stages to 1/N of the previous cost. [7] Examples specifically focussed on the use of suppliers and the costs of goods and services supplied include: Supplier consolidation: see examples in the aerospace manufacturing industry
Cost of poor quality (COPQ) or poor quality costs (PQC) or cost of nonquality, are costs that would disappear if systems, processes, and products were perfect. COPQ was popularized by IBM quality expert H. James Harrington in his 1987 book Poor-Quality Cost. [1] COPQ is a refinement of the concept of quality costs.
In business economics cost breakdown analysis is a method of cost analysis, which itemizes the cost of a certain product or service into its various components, the so-called cost drivers. The cost breakdown analysis is a popular cost reduction strategy and a viable opportunity for businesses.
Companies are focused on cost reduction in case of a recession–but they should be preparing for the recovery that will likely happen. Steve Gallucci, Ira Kalish. October 30, 2023 at 6:42 AM.
Examples of savings as a beneficial outcome include: agreeing a reduction in price, obtaining the same item for less cost; sourcing, or developing a supply of, a lower quality item at a reduced cost, where the item is still fit for purpose; obtaining added value for the same cost, e.g. negotiating extended warranties, additional spare parts etc ...
Typical Lump Sum Contract Structure. A lump sum contract in construction is one type of construction contract, sometimes referred to as stipulated-sum, where a single price is quoted for an entire project based on plans and specifications and covers the entire project and the owner knows exactly how much the work will cost in advance. [1]
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