ABSTRACT

 The research work centers on the impact of cost reduction scheme on the profitability of manufacturing finds. it involves investigating the various strategies by which cost could be reduced and the problems affecting the effectiveness of such strategies. Various literatures were reviewed with references. cost reduction technique involves a deliberate measured built into a system operations and of production with the aim of lowering the total cost of production or operation while still maintaining the same if not quality products produced or services rendered. The technique are value analysis, work study, organization and method, quality circle, just in time etc. the manufacturing finds used for this research work are: Best Aluminum company limited, Ibeto Cement Company Limited, Port-Harcourt Flour Mill, Wilson's food and confectionaries. The data collected were primary and secondary data. The primary data which is the questionnaire administered to the firms and also personal interviews conducted while the secondary data are journals, textbooks, and other publications. The population derived from the four firms is one hundred (100), the sample size was derived from the population by the use of a sampling tool called the taro yamani formula, and the sample size derived is eighty (80), also the sampling techniqi.e used was judgmental. Eighty (80) questionnaires were distributed and seventy (70) were returned duly filled and completed. The hypotheses were analyzed using the Clii4 square method. One of the major findings is that cost reduction scheme make tremendous impact on the profitability of manufacturing firms. Based on the findings, the researcher made recommendations, one of which is Seminars, Symposia, and Workshop should be held for management personnel in order to enable the company update its knowledge of cost reduction scheme.