Tear-down analysis as a cost reduction technique

Master of Degree With ThesisTear-Down Analysis As A Cost Reduction TechniqueGürsoy GÜÇDokuz Eylül UniversityInstitute of Social SciencesDepartmant of Accounting and FinanceIn current economic circumstances based on competition, one of theleading issues which enterprises face while surviving and reaching their aims iscost and cost reduction. When cost reduction is evaluated at micro point of view,it leads enterprises to make product by minimum resources and to reachdetermined profit targets. Also when it is evaluated at macro point of view, itcontributes to rise in competitiveness of national economies and to providesustainable economic development. When considered the importance of costreduction at both macro and micro dimensions, sufficent number of methodsand techniques concerning this concept have been developed for achieving costreduction. Target Costing, Value Engineering (Value Analysis), Kaizen Costing,Outsourcing and Just In Time Production are the cost reduction techniques andmethods in literature that have been most commonly used and efficiencyproved.Tear-Down Analysis takes place in literature in addition to the methodsand techniques that have been presented above. Tear-Down Analysis is aexternal cost reduction technique and this technique focuses on competitorsproducts. Given information concerning Tear-Down Analysis, the efficiency ofthis technique at cost reduction has been shown by a model suggestion at thisstudy.1. Cost Reduction2. Cost Reduction Techniques3. Tear-Down Analysis4. Reverse Engineering