Use of Value Analysis Technique for Cost Reduction in Production Industry A Case Study

摘要

This paper present the basic fundamental of Value Analysis that can be implemented in any product to optimize its value. A case study of a Universal Testing Machine (UTM) is discussed in which the material, design of components is changed according to the value engineering methodology. In the present case study, it is observed that the unnecessary increase in cost is due to the use of expensive material, increase in variety of hardware items and thereby increasing the inventory and so on. Therefore we have selected some components from UTM and we have applied Value Analysis technique for the cost reduction of the some components of UTM.