THE IMPACT OF UNVEILING HIDDEN COSTS ON COST REDUCTION

Abstract

This dissertation investigates the impact of unveiling hidden costs on cost reduction, focusing on a case study of El Kendi, a subsidiary of MS Pharma. The research is divided into two main chapters. The first chapter provides a theoretical framework, exploring the concepts of cost reduction and the hidden costs approach. The second chapter adopts a practical approach, aiming to identify and measure the hidden costs within El Kendi. This involves evaluating

hidden costs associated with five key indicators: absenteeism, work accidents, turnover, non- quality, and under-productivity. Through this analysis, we demonstrate that El Kendi incurs

significant hidden costs. Our findings suggest that by addressing and mitigating these hidden costs, El Kendi can achieve substantial cost reductions and enhance its overall profitability.