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Cost Reduction through Value Analysis & Value Engineering
A Case Study
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Value Engineering is a function oriented, systematic team approach and study to provide value in a product, system or service. Often, this improvement is focused on cost reduction; however other important areas such as customer perceived quality and performance are also of paramount importance in the value equation. Value engineering techniques can be applied to any product process procedure system or service in any kind of business or economic activity including health care, governance, construction, industry and in the service sector. Value Engineering focuses on those value characteristics which are deemed most important from the customer point of view. Value Engineering is a powerful methodology for solving problems and/or reducing costs while maintaining or improving performance and quality requirements. Value Engineering can achieve impressive savings, much greater than what is possible through conventional cost reduction exercise even when cost reduction is the objective of the task. In this work value analysis implemented to Gearbox housing and expected results will be reduction in weight and cost also saving in energy.
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