cost-optimization

Vocabulary Word

Definition

Cost-optimization is the process of adjusting company's strategies, operations, and budget to lower costs as much as possible while maintaining quality. It's like finding a balance between maintaining quality and minimizing costs in a business.

Examples in Different Contexts

Cost optimization in financial planning involves analyzing and adjusting spending to ensure maximum efficiency and value. A financial planner might say, 'Cost optimization is about more than just cutting costs; it's about spending smarter and achieving better returns on investment.'

Practice Scenarios

Aerospace

Scenario:

The construction of our new satellite model seems pricey. Let's explore strategies to limit the increased costs.

Response:

We could cost-optimize by designing more fuel-efficient models.

Business

Scenario:

The project is going over budget. We need to consider ways and strategies to keep expenditure in check for the remaining phase.

Response:

For cost-optimization, we could look into utilizing cheaper suppliers without affecting the product quality.