Abstract

In complex projects, products and services requiring the talents of many people, unnecessary costs and redundant functions may sometimes be introduced or costs duplicated. However, economic growth necessitates improved quality of existing products and development of quality management of new product design for customer satisfaction at minimum costs. Value Engineering is a technique organized for identifying and removing unnecessary costs without compromising the quality and reliability of the design. The technique is aimed at delivering to the user/customer of a product the expected functions at lowest cost. This paper discussed the concept of value engineering, its job plans and the effective implementation with reference to an electronics component (control knob) as a case study. With critical evaluation of the electronics control knob, saving per piece of 56.06 percent with total annual saving of #I,110,000 was achieved. Production cycle time per piece was reduced by 9.5 minutes while there was greater reduction of manpower in the production process. The result showed that the increase in productivity did not result in any adverse effect on the quality of the product. The paper also confirmed that the success of the VE process is due to its ability to identify opportunities and remove unnecessary costs while assuring quality, reliability, performance, and other critical factors that meet or exceed customer's expectation.