The role of strategic cost management and technological innovation in cost reduction

Abstract

 Economic units strive to adopt modern concepts of strategic cost management techniques and implement technological innovation to improve the quality of industrial processes and reduce costs, particularly environmental costs. One such strategic technique is lean production, which focuses on minimizing waste to maximize customer value and keeps pace with technological advancements in production systems to increase profitability and improve economic performance for the purpose of achieving economic growth and sustainable development. This research aims to reduce or eliminate waste generated from environmental pollution and its associated costs through the concept of lean production and its tools, as implemented in a distribution and transportation company affiliated with the Ministry of Oil. The most important conclusion is that using technological innovation in lean production and manufacturing achieves a reduction in environmental waste.