BUILDING ECONOMICS

COST REDUCTION
&
NBC NORMS

PRESENTED BY:-
PRESENTED TO:-
AR.GEETANJALI KAPOOR CHITESH GARG
GAGANDEEP
ISHA GARG
MEENU
MITTUL ARORA
NAVJOT KAUR
SAHIL CHHABRA
VINAY PRATAP SINGH
 • Cost Reduction is a process, aims at lowering the unit cost of a product manufactured or
service rendered without affecting its quality by using new and improved methods and
techniques. It ascertains substitute ways to reduce the cost of a unit. It ensures savings in per
unit cost and maximisation of profits of the organisation.

• Cost Reduction aims at cutting off the unnecessary expenses which occur during the
production, storing, selling and distribution of the product. To identify cost reduction, the
following are the major elements:

• • Savings in per unit cost.

• • No compromise with the quality of the product.

• • Savings are non-volatile in nature.

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 • Cost Control is a process which focuses on controlling the total cost
through competitive analysis. It is a practice which works to maintain the
actual cost in accordance with the established norms. It ensures that the
cost incurred on an operation should not go beyond the pre-determined
cost.

• Cost Control involves a chain of functions, which starts from preparation

of the budget in relation to the operation, thereafter evaluating the actual
performance, next is to compute the variances between the actual cost &
the budgeted cost and further, to find out the reasons for the same, finally
to implement the necessary actions for correcting discrepancies.

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 Steps in Cost control
• Establishing norms:
The first step in cost control is to set norms or standards
which may serve as yardsticks for measuring performance.
these standards are set on the basis of past performance
adjusted for changes in future and on the basis of studies
conducted.

• Comparison with actual:

The actual cost incurred are compared with established
standard costs to know the level of achievement. The variations
are analysed so as toy arrive at the causes which are
controllable.

• Corrective Action:
Remedial measures are taken to avoid the recurrence of
variation in future and for revision of standards wherever
necessary
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 Key Differences Between Cost
control and Cost Reduction

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 The activity of maintaining cost as per the established norms is
known as cost control. The activity of decreasing per unit cost by
applying new methods of production in such a way that it does
not affect the quality of the product is known as cost reduction.

Cost Control focuses on decreasing the total cost while cost

reduction focuses on decreasing per unit cost of a product.

Cost Control is temporary in nature. Unlike Cost Reduction which is

permanent.

The process of cost control is completed when the specified target is

achieved. Conversely, the process of cost reduction has no visible
end as it is a continuous process that targets for eliminating
wasteful expenses.

Cost Control does not guarantee quality maintenance, however

100% quality maintenance is assured in case of cost reduction.

Cost Control is a preventive function as it ascertains the cost before

its occurrence. Cost Reduction is a corrective action.
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 • Cost control is the achievement of pre- determined targets of costs.
Cost reduction is the achievement of the real and permanent reduction
in costs.

• Cost control tends to assume a static state of affairs and that standard
once set are not challenged.
Cost reduction assumes the existence of concealed potential saving in
the standards or pre- determined costs set for cost control and that
these standards are always subject to challenge.

• Cost control is concerned with predetermining costs, comparing it with

actual costs, analysing the variances and taking corrective measures.
Cost reduction is not concerned with maintenance of performance
according to predetermined targets. it is rather concerned with finding
out new product design, methods,etc

• Cost control is a part of cost accounting function

Cost reduction may be achieved even when no cost accounting system
is in operation

• Cost control lacks dynamic approach to cost improvement

Cost reduction is more dynamic approach to cost improvement
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 Comparison Chart

BASIS OF COST CONTROL COST REDUCTION

COMPARISON

Meaning A technique used for A technique used to

maintaining the costs economise the unit
as per the set cost without lowering
standards is known as the quality of the
Cost Control product is known as
Cost Reduction

Savings in Total Cost Cost Per Unit

Retention of Quality Not Guaranteed Guaranteed

Nature Temporary Permanent

Emphasis on Past and Present Present and Future

Cost Cost

Ends when The pre-determined No end

target is achieved

Type of Function Preventive Corrective

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• ROLE AND IMPORTANCE OF NORMS

• Norms provide safeguards. Although no code can eliminate all

risks, reducing risks to an acceptable level helps.

• Norms have been the primary source for guidance in the

design and construction of building structures for many
decades.

• Norms ensure the economic well being of the community by

reducing potential spread of fire and disease.

• It provides Standards for structure, placement, size, usage,

wall assemblies, fenestration size/locations,

• Norms provide minimum standards for safety, health and

general welfare.
PRINCIPLES FOR DEFINING SPACE NORMS

• BUILDING CODES ARE THE STANDARDS

“CONSERVATION BUILDING CODES” ARE THE KEY
POLICY INSTRUMENT USED BY THE GOVERNMENT TO
LIMIT BUILDING PRESSURE ON ENERGY AND SPACE.

• SPACE NORMS FOCUSES ON LIVING CONDITIONS AND

COMFORT FOR THE OCCUPANTS.

• THESE SERVES AS A MODEL CODE PROVIDING

GUIDELINES FOR REGULATING BUILDING
CONSTRUCTION ACTIVITY.

• THEY EXIHIBIT MINIMUM AND MAXIMUM ROOM SPACE

AND EXITS AND LOCATIONS.
 • Standardisation and Simplification

Simplification is a process of product analysis through which

unnecessary varieties and designs are eliminated.Only a
limited number of grades, types and sizes of the product are
retained.

Standardisation is the second step after simplification

towards interchangeable manufacturing. Having selected the
varieties and grades of the products to be retained as much of
its manufacturing details are standardised as possible.

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 • Since manufacturing involves a large number of
decisions from selection of raw material to the
process used for finishing, standardisation of some
of these items reduce unnecessary repetition of
work.

• Use of standard components reduces inventory

costs, ensures interchangeability and makes future
maintenance easier.

• It also reduces component cost since standard

components are manufactures by mass production
methods and are cheaper.

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 • Selection of standard materials ensures physical
performance and guarantees failure-free
operation. Use of standard methods of production
enables comparisons to be made of the standard
and actual manufacturing time

• The purpose of standardisation is, therefore, on

one hand, efficiency and economy in the use of
human effort and on the other economy of
material varieties and stock quantities and
therefore reduction in cost and increase in
turnover.

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 NBC SPACE NORMS
Social Infrastructure
Transportation Planning: Classification of Urban
Roads NORMS AND STANDARDS
Design Considerations of Urban Roads Education (NBC-2005)
Stude Populat
S.No Road Types Space S. Category ion
Area Other
nt
Standards(m) no Served Requiremen Controls
streng
/
th
unit
t
1. Urban Expressway 50-60
2. Arterial Road 50-80 1. Pre-primary - 2500 0.08ha To be located
near a park
3. Sub Arterial Road 30-50
2. Primary 500 5000 Area per Playfield area
school=0.40HA with a minimum
4. Distributor /Collector 12-30 Class i-v (NB a)School building of18m x 36m to
Roads C- area=0.20ha be ensured for
5. Local Street 12-20 b)Playfield effective play
2005 area=0.20ha
6. Access Street 6-15 )
3. Senior 100 7500 Area per Playfield area
school=1.80ha with a minimum
secondary 0 a)School building of 68m x 126m
area=0.60ha to be ensured for
b)Playfied effective play
Area=1.00ha
c) Parking
Area=0.20ha
 NBC SPACE NORMS

Health Care Facilities (NBC—2005)

Community Open Spaces –NBC
S. Category Population Land Area
no
2005
Served Reqd.
s.n category Area/Population Area reqd. for LIG
Min. o. served
1. Dispensary 1 for every 0.08ha-
15000 0.12ha a) Community open 15% of the area Needs of area
population spaces of layout

1 for every 0.20ha- b) Community open 0.3-0.4ha / 1000 0.3 ha/1000 persons
2. Nursing Home
45000 -100,000 0.30ha spaces persons
population c) Land measuring Shoud be At one place/ or
Capacity 25- >0.3ha reserved pockets
30beds
3. Poly-clinic With 1 for every 0.20ha-
some observation 100,000 0.30ha
beds population

4. Intermediate 1 for every 0.40ha-

Hospital (80 beds 100,000 1.0ha
)category B population

5. Intermediate 1 for every 1.0ha-3.7ha

Hospital (200 100,000
beds )category A population
 NBC SPACE NORMS
• Socio-Cultural Activities (NBC- Miscellaneous ( NBC-2005)
2005) s.no Category Population Land Area
Served Reqd. Min.
S.n Category Populatio Land 1. Aanganwadi 5000 200-
o • Housingn Types.
Served Area 300sq.m
Reqd.
Min. 2. Shopping 5000 1500sq.m
Convenience
1. Community 5000 750sq.m
Shopping
Room
3. Police ,Civil 40,000 0.16ha
2. Sports Activity
Community (NBC-2005)
Hall 15000 2000sq.m Defence
3.
S.no Recreational
Category 100,000
Populatio 10,000sq.
Land Police post 90,000 1.50ha
. Club n Served mArea Police Station
Reqd.Mi 4. Fire 200,000 0.6ha
n. Sub-fire station
1. Neighbourhood 15000 1.50ha 5. Distribution NBC-2005
Play Area Services
2. Residential 5000 5000sq.m
Unit Play Area
 NBC SPACE NORMS
Mix Land –Use (NBC 2005)LIG Housing In Urban
Areas

Saleable
Use zone Residential
Type-A 50% min.

Saleable Work
Places,Schools,Institutions,Shops,Community
Use zone Places,etc.
Type-2 20% Max.

Use zone Non-Saleable

Roads,Padestrian Paths,Drains,Public & Semi-
Type-3 Public Open Spaces 30% max.