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Case Study On Value Engineering: Lesson 10

This document presents a case study on using value engineering to reduce the cost of a divan (household furniture). It describes the functional analysis of the divan's parts, creative ideas to simplify the design, and an evaluation of alternatives. Two alternatives were tested - changing the pipe gauge and reducing board thickness. Both provided weight and cost reductions while maintaining customer satisfaction. The recommended alternatives saved 14.61-19.60% per product. Value engineering was successfully used to lower costs without compromising the divan's design or value.

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244 views16 pages

Case Study On Value Engineering: Lesson 10

This document presents a case study on using value engineering to reduce the cost of a divan (household furniture). It describes the functional analysis of the divan's parts, creative ideas to simplify the design, and an evaluation of alternatives. Two alternatives were tested - changing the pipe gauge and reducing board thickness. Both provided weight and cost reductions while maintaining customer satisfaction. The recommended alternatives saved 14.61-19.60% per product. Value engineering was successfully used to lower costs without compromising the divan's design or value.

Uploaded by

arun
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Lesson 10

Case Study on Value Engineering


Dr. Inderdeep Singh
Department of Mechanical and Industrial Engineering

1
Case Study of
Household Furniture (Divan)

• A case study of furniture industry M/s Gayatri Industries,


Sangli (Maharashtra)
• Item to be Studied : A Divan

2
Steps followed during VE

• Functional Analysis Worksheet is prepared for the different


parts of the product.
• Functional Evaluation is done of each part
• Numerical Evaluation Sheet is prepared
• Creativity Worksheet
• Selection of alternative is done through Decision Matrix
• Finding and Recommendation
• Conclusions

3
Functional Analysis of Parts of Divan

4
Costing of different parts
Functional evaluation of different parts

Major Performance-3
Medium Performance-2
Minor Performance-1
Creative phase
The following ideas were generated during this phase :
1. Make the design simpler
2. Use the wheels for movement
3. Make it in powder coating
4. Reduce the thickness of the board
5. Use waste pieces of required size in some places
6. Reduce the size of the board in same places
7. Reduce the gauge of the pipe
Function-Cost-Worth-Analysis

8
Function-Cost-Worth-Analysis
Evaluation phase
• Parameters
a) Rigidity b) Light Weight
c) Durability d) Appearance
• Alternative –I Change gauge of
material (Pipe) Weightage of the Parameters
• Alternative –II Reduce thickness of Board
(Wherever Required)

10
• Evaluation matrix
for existing and
proposed

11
Recommendation phase
• Cost Benefit Matrix

12
Implementation phase
• The samples as per alternative-I & alternative-II were
manufactured and are tested with the customer.
• Reports were found to be satisfactory for both alternatives
• In Alternative-I and Alternative-II, weight reduction was
found with cost reduction.
• The proposal was put up to the management / finance
department for approval

13
Conclusion and Future scope
• Value engineering was used for the cost reduction without
the change in the product design & its value.
• The total saving incurred per product by the implementation
of above recommendations are 19.60% for alternative-II and
14.61% for alternative-I.
• In future, furniture product design can be modified so that
the value of the product can be enhanced.
• Other Industrial Engineering techniques can be used for
further improvement in the product.
14
Reference
• Chougule Mahadeo Annappa, 2014, Application of Value Engineering for
Cost Reduction of Household Furniture Product - A Case Study,
International Journal of Innovative Research in Science, Engineering and
Technology, 3, 16577-83.

15
Thank You

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