Lesson 11

Product Design using Value Engineering

Function-Cost Relationship-I
Dr. Inderdeep Singh
Department of Mechanical and Industrial Engineering

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 Cost-Function relationship
S.No Component Function B S Cost %(cost/total)
(Rs)
1 Lead Make Mark B 0.50 10
2 Wood Protect lead S 1.00 20
3 Metal cap Hold eraser S 0.25 5
4 Eraser Remove marks S 0.75 15 60
5 Shaping of wood Provide grip S 0.50 10
6 Printing Display S 0.50 10
information
Price of pencil= Rs 5/-
Profit 1.50
Total 5.00 2
 Function-Cost Relationship Study of
Household Furniture (Divan)

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

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

• 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.

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 Steps followed during VE

• Functional Analysis Worksheet is prepared for the different

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

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Functional Analysis of Parts of Divan

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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

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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)

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• Evaluation matrix
for existing and
proposed

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 Recommendation phase
• Cost Benefit Matrix

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 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

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 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.
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Thank You