6R Cost Reduction Strategy – A Success Story of Bhel (Hyderabad)

Abstract

Embark on a captivating exploration of the challenges encountered by BHEL—a case study of it’s one of the major unit - Heavy Power Equipment Plant in Hyderabad that unfolds the narrative of overcoming a historic downturn in order book and revenues. This journey showcases the successful implementation of the robust “Strategy-6R” cost reduction approach, with the Finance function playing a pivotal role, achieving an impressive 46% reduction in expenses over five years through meticulous analysis and collaborative efforts across departments. The article underscores the crucial support from top management and illuminates the profound impact of sustainable practices, strategically positioning BHEL for enduring long-term success.