Cost Reduction by Improving the Engineering and Operation Design Department

Abstract

This research paper focused on how reducing the lower expenses instead of one of the largest expenses provide the most cost reduction in Bechtel Plan Machinery, Inc. (BMPI). The fundamental objectives of this research is the improvement of the use of the resource BPMI specifically in the area of Engineering and Operation Design Department to have the maximum cost reduction. Different techniques were applied to investigate the sources of cost. As a result of the investigation and the major findings, some cost reduction recommendations and business plan were provided, which are predicted to aid in the improvement and monitoring of the right use of resources of this department. Key Terms ⎯ Design Phase, Improvement, Up front Cost, Use of Resource.