Application of Value Engineering for Cost Reduction of Household Furniture Product - A Case Study
Value Engineering is a proven management technique that can make valuable contributions to value enhancement and cost reduction in furniture industry. A case study of furniture industry is discussed in which the material size of the product is changed according to the value engineering methodology. M/s Gayatri Industries, Sangli (Maharashtra) has been manufacturing different types furniture products and supplying to local dealers and customers directly. This paper introduces how to apply theories and methods of Value Engineering in the industry. Value engineering with its different phases can be implemented in any product to reduce the cost. The material is chosen such that the cost is reduced without affecting the value of the product and its design. To find the best possible alternative from the choices, we have used the tools such as Function analysis, Functional Evaluation and Decision Matrix, which gives the most appropriate results.