COST CONTROL AND COST REDUCTION TECHNIQUES IN PUBLIC SECTOR ENTERPRISES: A CASE STUDY OF ITI RAE BARELI UNIT

Abstract

The purpose of the research project named "Cost Control and Cost Reduction Techniques in Public Sector Enterprises: A Case Study of ITI Rae Bareli Unit" is to investigate the methods and procedures that were used by the Rae Bareli unit of the Indian Telephone Industries (ITI) in order to effectively control operational expenses and improve financial efficiency. The management of costs and the reduction of costs have become essential components of organisational sustainability, particularly in public sector enterprises (PSEs), in light of the growing competition, the progression of technology, and the demand to maintain profitability. This research investigates the current cost structure of ITI Rae Bareli, highlighting important cost drivers such as the acquisition of raw materials, the utilisation of labour, the manufacturing processes, and administrative expenditures. According to the findings of the study, there is a distinction between cost management, which is centred on adhering to pre-established standards and budgets, and cost reduction, which is aimed at obtaining lasting savings through better efficiency and innovation. The efficacy of the procedures that are currently being used for cost control is evaluated in this study by collecting data from financial records, conducting interviews with management staff, and analysing production reports. The report emphasises a number of methods that are utilised by the firm, including budgetary control, standard costing, variance analysis, and value engineering, as significant procedures. In addition, the research analyses the ways in which contemporary methods, such as lean manufacturing, process automation, and supply chain optimisation, might further improve cost efficiency. Despite the fact that ITI Rae Bareli has a comprehensive system of cost management in place, the findings show that there is great room for improvement in areas such as the reduction of waste, the utilisation of energy, and the modernisation of processes. After conducting the research, the researchers came to the conclusion that incorporating systematic cost reduction initiatives in conjunction with efficient cost management systems has the potential to significantly enhance the overall financial performance and competitiveness of public sector organisations.

Keywords: Cost Control, Cost Reduction, Public Sector Enterprises, ITI Rae Bareli, Budgetary Control, Value Engineering, Efficiency, Financial Performance.