Cost reduction is to be understood as the achievement of real and permanent reduction in the unit cost of goods manufactured or services rendered without impairing their suitability for the use intended or diminution in the quality of product.
Cost Reduction Program
Fields Covered under the Cost Reduction Program
|ABC ANALYSIS OF CUSTOMERS|
|Category||Number of Dispatches||Volume of Sale Covered|
|Customer...A||About 10%||60% to 80%|
|Customer...B||About 20%||20% to 30%|
|Customer...C||About 70%||5% to 10%|