Value Engineering as a Leverage in Cost Competitiveness - A Case Study
Value Engineering as a Leverage in Cost Competitiveness - A Case Study Abstract The Value Analysis Method can identify both ways to decrease manufacturing cost and technical modification to a product based on both the manufacturer's viewpoint (an engineering approach) and the customer's perspective (a marketing approach). Based on a thorough examination of a product's existing cost, the technique allows for the study of options for lowering production costs. The purpose of this article is to look at how to use the Value Analysis Method in the manufacture of electrical motors, with a focus on flameproof motors. The authors classified flameproof motor functions into four categories: (a) strongly undervalued functions, (b) strongly overvalued functions, (c) somewhat under/overvalued functions, and (d) proportionally valued functions (by the manufacturer). As a result, data on manufacturing costs is given by a local (Romanian) manufacturer. It investigates the method's pot...