Question

Cost reduction and cost control techniques

Answer 1

Hi There,

Cost control involves the following steps and covers various aspects of management. It has to be brought in the following manner:

(i) Planning:

Initially a plan or set of targets is established in the form of budgets, standards or estimates.

(ii) Communication:

The next step is to communicate the plan to those whose responsibility is to implement the plan.

(iii) Motivation:

After the plan is put into action, evaluation of the performance starts. Costs are ascertained and information about achievements is collected and reputed. The fact that the costs are being reported for evaluating performance acts as a prompting force.

Answer 2

1 - Planning the Project Budget. ...
2 - Keeping a Track of Costs. ...
3 - Effective Time Management. ...
4 - Project Change Control. ...
5 - Use of Earned Value.