Cost Control and Cost Reduction Techniques

Mr. Elaiyaraja  A1 , Mr. Harish S2

1Mr. Elaiyaraja A, Assistant Professor, Panimalar Engineering College, Chennai - 600123

2Mr. Harish S, Student, Panimalar Engineering College, Chennai - 600123

ABSTRACT:This study explains how cost control and cost reduction methods are used by organization a company involved in plastic injection mould manufacturing. In this industry, managing costs is very important because expenses like raw materials, labour, electricity, machine maintenance, and overheads directly affect the company’s profit. The main aim of the study is to understand how the company controls these costs without affecting the quality of the final product. For this purpose, both primary data (through employee interaction and observation) and secondary data (from company records, reports, books, and journals) were collected for a period of five years from 2020–2021 to 2024–2025. To analyse the data, different financial and analytical tools such as cost sheet analysis, break-even analysis, cost percentage analysis, cost–benefit analysis, return on investment (ROI), payback period, trend analysis, and cost saving analysis were used. These tools helped in understanding the cost structure and identifying areas where expenses can be reduced. The study clearly shows that material cost takes the largest portion of total cost, making it the most important area for cost control. At the same time, managing labour cost, power consumption, and overhead expenses also plays a key role in improving profitability.Keywords: Cost control, cost reduction, plastic injection moulding, material cost, labour cost, overhead management, profitability, waste reduction, automation, productivity.