Value Engineering: Index for Cost Reduction in the Manufacturing Environment

In a highly competitive market, manufacturers seek ways to reduce the cost of manufacturing products to remain in business despite customers' varying demands, ranging from personalised products to mass production. Value Engineering (VE) explores the functional balance between a product's cost and performance by utilising alternative solutions to eliminate waste. This paper aims to assess the current literature in the topic area to gain insight into how the manufacturing industry can apply VE techniques to reduce product costs. It is evident from the literature assessment that VE significantly addresses manufacturing problems through a systematic and structured approach that aims to identify opportunities for cost reduction, quality improvement, and enhanced functionality while improving customer satisfaction. The method optimises the performance of products, processes, and systems. VE principle evaluates manufacturing procedures to optimise workflow, reduce cycle times, and utilise resources effectively. The approach examines product designs to make them simpler, more functional, and easier to manufacture. It locates and fixes flaws, lessens variation, eliminates wasteful practices and surplus inventory, and enhances overall product performance. Furthermore, it promotes cooperative problem-solving techniques and the investigation of alternative solutions to resolve manufacturing bottlenecks. Manufacturers, therefore, can enhance value, efficiency, and competitiveness by implementing VE principles.