You are a cost management manager in a production field how can you reduce cost of the produces (for examples: home appliances products)?

It can search for other sources of raw materials at a lower price with the quality required

Cost management could be addressed in any or a group of the following approaches:

- Cost of raw material and components through competitive suppliers or through mastering mass production concepts

- Product development to reduce its cost while maintaining the other aspects of qality and functionalities.

- Business process optimization to eliminate any waste in the business processes

- Increase the effeceincy of the work force

- Optimize the nergy mix and consumption

increase  QC . 

Decrease Energy Cost . 

Decrease Row matrerial Cost .

Reduction in Manufacturing Cost .

Five main area you must take in your consideration:

1- Manufacturing cost control , manage and reduction.

2- Product cost reduction.

3- Energy cost control and reduction.

4-7 Deadly wastes.

5- Decrease wasts and defects.

I am agree with you, thanks

Agree with Mr. Mohammad Tohamy

Cost management devided into tow approaches:-

Fixed cost include:-land,rent ,salaries,...

Variable cost include:-admenistration cost,cost of raw materials,transport cost and so..

Raw material is one factor from the factors of production..thus all competitors always share the same raw materials sources(mobility of raw materials resources)..-

To compete your competitors U must develop unique capabilities that your competitors are unable to imitate like reduce the administration cost by introducing new technology or qualify your employees and give them good knowledge about the production process or make good value delivery network by intimacy with transporters,suppliers retailers...ect.