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Cost Saving - An original item is replaced with an alternative item having less price than the original item without any compromise in the specification, quality and purpose.
Cost Reduction - Reducing the cost by reducing the quantity or requirements or using cheaper materials.
Cost Effectiveness - Benefits recieving from a product or item is more when comparing its cost.
Cost Reduction is to reduce purchase of items that will not affect our budget cost that could only suffice to our project. While Cost saving meaning the reduce of unncecessary expenses that are not really needed to our project cost. Cost effectiveness are expenses that are suppose to needed to our project even thoiugh its a break-even earnings. Since your already committed to your client, the Company.
Focus on the idea of reducing costs as a provision that gives a false reduction of cost only .. It is necessary to link the cost and the cost of production (the unit of currency / output), which is known as the term productivity .. It is necessary to focus on the idea of raising the cost of cost and not reduce costs in general and hence the decline Real-world domination.
Cost Saving : to plan and execute the work in a way that would cost us less than what was budgeted
Cost Reduction : to eliminate and reduce the cost of resources , in order to meet the budget or committed cost .
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