Driving Cost Savings Through Value Engineering

A Value Engineering project was done to reduce production costs of a household appliance without compromising quality. Initially, production costs were INR 10 lacs per batch. The team conducted a value analysis with a cross functional team and external SMEs, identifying alternative materials and optimizing manufacturing processes. They collaborated with suppliers to negotiate better rates, reducing costs by 15% to INR 8.5 lacs per batch. This cost saving of INR 1.5 lakhs per batch enhanced profitability and allowed competitive pricing, increasing market share by 10%.