Reduce the Rate of Cost for the Input Used to Produce the Output

Use the same type of input and the same activities, but pay less for the unit of input employed in producing the output. A reduction in rate is equivalent to a reduction in the number of inputs for the same ICD. For example, if a person who makes $10 per hour could produce the same amount of output as a person making $20 an hour, the substitution of the $10 person for the $20 person in the process would be equivalent to cutting the number of people required to do the work by 50%.

C. Change the components of the rate of costs to reach a lower total rate:

Sometimes it is possible to break the price of a purchase into its component parts. Then the company may seek to substitute a less expensive component for a more expensive component to reduce the effective rate the company pays on its purchases.

Minimum performance required for the stndard rate:
Raise minimum performance required for the standard rate

No.	Industry SIC	Year	Notes
1	2721	1986	To save costs, Time seeks for the Guild to allow a reduction of benefits for part-time employees.
2	2721	1986	To save costs, Time is seeking a number of concessions from the Guild, including an increase in the workweek from 35 to 40 hours with no extra pay.
3	2721	1986	To save costs, Time is seeking a concession from Guild allowing an abolition of severance pay in dismissals for cause.
4	3500	2006	Germany sees job gains due to the increased flexibility by Europe's labor. Under the new labor deals forged with management, HAWE Hydraulics workers in Germany rely more on so-called "slide-time" accounts, which allow them to bank extra hours during busy periods and trade them in for pension credits, cash, or time off during slower periods. The practice has become more common in the German industry in the past five years. The work week now can vary from 29 to 42 hours, allowing HAWE to react quickly to its erratic work flow while reducing overtime costs.
5	3711	2005	BMW is opening a new factory in Leipzig, Germany despite the fact labor costs for auto workers, at $42 per hour, are the highest in the world. The company's decision was based on winning unprecedented labor flexibility from German unions. For example, line workers will toil Saturdays without extra pay. The labor agreements will allow BMW to boost the use of its plant and equipment by 40% without incurring overtime charges, compared with plants without such leeway. When the new factory in Leipzig is humming at full capacity, the savings achieved by not having to pay overtime could reach 20% of the plant's total payroll costs.
6	3711	2005	BMW is opening a new factory in Leipzig, Germany despite the fact labor costs for auto workers, at $42 per hour, are the highest in the world. The new agreement between BMW and the German union to allow no overtime pay marks a major leap forward. Depending on demand, BMW can run the new facility in Leipzig as many as 140 hours a week without having to pay overtime. By contrast, the company's Bavarian factories pony up 50% extra to workers on Saturday shifts and must negotiate new compensation agreements each time BMW wants to boost or cut production significantly.
7	3711	2006	BMW's strategy in sharing the wealth, listening to even the lowest-ranking workers, and rewarding risk has made it one of the most successful companies in the industry. In 1972, BMW cut its workers in on the profits. It set up a plan that distributes as much as one and a half months' extra pay at the end of the year, provided BMW meets financial targets. In return, the workforce is hyperflexible. Thus, when a plant is introducing new technology or needs a volume boost, BMW workers will even temporarily move from home to help the plant meet production demands. Without paying overtime, BMW can crank up production to as much as 140 hours a week or scale back to as little as 60 hours.
8	3728	1986	At Woodward, workers start working at 7:42 and break off at 4:12. No one breaks for coffee or a smoke, and lunch lasts 30 minutes precisely. Workers must pay for vacations and holidays out of their profit-sharing pool.
9	4213	1998	The unionized LTL carriers developed a concept called flexible work weeks, negotiated by Roadway and Yellow, which enables the companies to avoid paying a premium for weekends if that is part of the "week".
10	4512	2004	As most airlines fight to trim costs, Ryanair is struggling to find the few ounces of fat hasn't already cut. Ryanair has even converted some costs into revenues. Three Ryanair planes are flying billboards for Guinness stout and other products, each generating a one-time, six-figure net gain. Flight attendants are paid commission for on-board food sales, included cups of airline coffee for about $3.50, allowing Ryanair to pay them less in salary.
11	4512	2005	Southwest Airlines is spearheading some of the most aggressive moves that the low-fare king has made in years. It plans to increase capacity at least 10% this year, adding 29 planes to its fleet of 417. Southwest needs healthy expansion to help keep its own unit costs under control. It boasts the richest wages for pilots of narrow-body jets – 38% above those at United Airlines Inc., after that carrier's deep pay cuts. By growing, Southwest averages in new lower-paid employees and spreads its costs over more seats. At the same time, it's pushing for higher productivity from its already highly efficient workers. Southwest's pilots say they're being asked to fly 70 hours a month, up from about 65. Pilots at the traditional carriers average less than 60.

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