Note: See respective sections for more details Cost Management model 1. Reduce quality costs 2. Reduce cycle time Cost Management 3. Eliminate non-value adding activities 4. Eliminate waste Note: See respective sections for more details

Cost management Vs cost cutting Most of the organizations have wrong notions about cost. They confuse cost management with cost cutting measures.It is extremely important to understand that cost management is different from cost cutting. What is required by the organizations is efficient cost management as depicted in the above figure and not cost cutting. Many times organizations who have taken resort to cost cutting have faced serious quality problems.