1. 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

2. 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.