Volume-3, Issue-1, January-2019: 172-192 International Journal of Recent Innovations in Academic Research P-ISSN: 2659-1561 E-ISSN: 2635-3040 www.ijriar.com 172 Research Article Cost Reduction as Applied by Furukawa Automotive System in Lima Technology Center Dennis B. Legaspi, Ronel M. Sapungan, De Leon, K.D.M. and Baronia, M.G. Batangas State University JPLPC-Malvar, Malvar, Batangas, Philippines Corresponding Author Email: dr.ronel192025@gmail.com Received: Dec 29, 2018 Accepted: Jan 5, 2019 Published: Jan 9, 2019 Abstract: The study determined the assessment on the cost reduction as applied by Furukawa Automotive System in LIMA Technology Center, Philippines. It aimed to meet the following objectives: determine the profile of the respondents and the profile of management; to assess the extent in the cost reduction scheme applied by the company in relation with the following; defect, overproduction, waiting, non-utilized resources, transportation, inventory, motion and excess processing. The study made used of descriptive- survey method. The researchers considered 60 members of the management of Furukawa Company as the respondents. There was no sampling design used in this research because the researchers choose the total population. The researchers used of a self-constructed questionnaire and used the following tools to treat the data statistically: frequency and percentage, weighted mean and analysis of variance and T- test. The study revealed that the company had average monthly income, five years in the operation, below and average monthly savings percentage. And majority of the respondents were 28-43 years of age, most were female, had a position of senior supervisor and three years in a business service. The study also revealed that the cost reduction was highly applied. However, the respondents profile had no significant difference with the extent of cost reduction scheme used. The study also found out that the length of service has significant difference with the extent of cost reduction scheme used. The researchers recommended that the management should continue using the techniques of Toyota’s DOWNTIME or eight hidden wastes to successfully achieve the company’s goals. Keywords: Cost reduction, automotive system, DOWNTIME, eight hidden wastes. Introduction Business is the life blood of every economy. It is important in every individual because one of its purposes is to help and give sustainable value for stakeholders. Through the presence of manufacturing company, it can help the economy to explore new product and new technology. The development of manufacturing industry to this day still depends on research into manufacturing processes and the development of new products and materials. This ability to manufacture products has a huge bearing on the wealth and the prosperity of a country. Through this business, it can help the country finance programs and public expenses. However, companies often place more emphasis on cutting cost. Usually the major problem is cutting cost because it can quickly decrease returns plus it has a complete and total limit of reducing manufacturing cost. It gives attention to the company to apply cost reduction which is used by reducing expenses to increase profit such as energy conservation, manpower, raw materials, and even the water