IMPACT OF COST CONTROL AND REDUCTION MEASURES ON THE PERFORMANCE OF PUBLIC SECTOR ENTERPRISES: WITH SPECIAL REFERENCE TO ITI RAE BARELI UNIT

Abstract

The purpose of the research project titled "Impact of Cost Control and Reduction Measures on the Performance of Public Sector Enterprises: With Special Reference to ITI Rae Bareli Unit" is to investigate the connection that exists between efficient cost management practices and the overall operational and financial performance of public sector enterprises (PSEs) in India. At a time when government-owned businesses are confronted with increasing levels of competition, technological advancement, and pressures to improve efficiency, it has become absolutely necessary to undertake stringent cost control and cost reduction measures in order to guarantee both sustainability and profitability. The Rae Bareli Unit of Indian Telephone Industries (ITI), a major telecommunications manufacturing firm, is the subject of this research. The purpose of this investigation is to evaluate the impact that various cost management approaches have on the Rae Bareli Unit's productivity, profitability, and long-term competitiveness. The purpose of this research is to examine the influence that budgetary control, standard costing, variance analysis, lean manufacturing, and value engineering have on the organization's cost efficiency and performance results. The study analyses financial records, production data, and management reports. According to the findings, systematic cost management ensures that financial plans and budgetary restrictions are adhered to, whereas proactive cost reduction initiatives, such as the optimisation of processes, the modernisation of technology, and the elimination of waste, contribute to gains in performance that are sustainable. Furthermore, the findings indicate that businesses who have integrated cost management systems demonstrate greater resource utilisation, increased profitability, and expanded capability for decision-making. However, the study also finds restrictions that frequently impede the efficient adoption of cost-saving strategies in public sector firms. These constraints include bureaucratic delays, inflexible procurement procedures, and restricted management autonomy. A balanced and continuous approach to cost management and cost reduction may greatly improve the financial health and operational performance of public sector enterprises (PSEs) like ITI Rae Bareli, according to the findings of the study, which indicates that this method works. Through the cultivation of a culture that emphasises accountability, innovation, and efficiency, public sector firms have the opportunity to better align themselves with the needs of modern industry and to sustain their relevance in an economic climate that is highly competitive