Bus 630 Final Essay

2376 WordsJul 22, 201210 Pages
Cost Management Edwin Huggins BUS 630 Professor Lewis July 16th, 2012 Introduction Cost management is the process where companies look to control and makes plans for the costs of conducting business. Cost management is looked at on an individual project basis. For cost management to become effective for a company it must be implemented into the company’s business model. When effectively implemented into the company’s business model it will translate into reduced costs of production for products and services, as well as increased value being delivered to the customer. Problems arise in cost management with companies not monitoring or implementing the established cost management plan. One application that can be used with cost management that will give new sources of sustainable cost reductions is teaming LEAN thinking and Six Sigma up with cost management. The case of Mattel Toy Company Robert Eckert CEO is set with several objectives in relation to cost management to ensure the viability of the company through a tough economic climate and for years to come. Cost management with relevance to the workplace would be the new Medicare breakeven initiative for healthcare to survive the current healthcare payer changes. This paper will explore the problematic areas of cost management in relation to real life situations with new techniques that can applied, therein transitioning the companies to a viable state through tough economic times and federal legislation. Lean Thinking and Six Sigma Many companies and industries have adapted the use of Lean and Six Sigma into their business model. This only makes since the main goal for cost management and Lean are to reduce cost and improve quality. These two programs can help drive incremental improvements to the bottom line and include tools that span across a wide range of areas but still lack the area of cost

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