Cost benefit analysis by value analysis in manufacturing industry - a case study Online publication date: Thu, 01-Sep-2022
by Jagdeep Singh; Harwinder Singh; Surjit Kumar Gandhi
International Journal of Business Process Integration and Management (IJBPIM), Vol. 11, No. 1, 2022
Abstract: Value analysis is one of the most effective, promising and rewarding modern techniques available to identify and eliminate unnecessary costs in design, testing, manufacturing, construction, operations, maintenance, procedures, specifications, and practices. The aim of this study is to reduce costs of critical products of manufacturing industry of Northern India using seven standard steps of value analysis. Data collection before and after implementing value analysis has been analysed. Finally, the research carries out empirical analysis of the financial/non-financial benefits incurred from value analysis of critical products. Following the seven core steps led to savings of Rupees 99 per pump, which is 28.2% of the pump cost. Average annual savings are Rupees 2.4 lakhs, for an average pump production of 2,400 units per annum.
Online publication date: Thu, 01-Sep-2022
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