Scheme of Cost Reduction

Abstract

The Cost Reduction Scheme (1961), initiated by the Committee on Plan Projects, outlines strategies to minimize costs in developmental planning, particularly for underdeveloped nations. The scheme emphasizes efficiency in planning, execution, production, inventory, and personnel management, alongside administrative and procedural reforms. Key measures include detailed project requirement assessments, economic analysis, work-study techniques, optimized inventory via A-B-C Analysis, balanced staffing, and streamlined administrative procedures. By adopting systematic and innovative approaches, the scheme aims to counteract inflation, improve productivity, and ensure efficient utilization of resources, contributing to economically sustainable development.