Application of Value Analysis and Value Engineering for Cost Reduction of Global Pumping Unit

Abstract

At present, the competition in Indian retail market for fuel dispensers is leading to a constant battle for an adequate market share. The Indian retail market for fuel dispensers is favouring the lowest bidder. Recent tenders have seen aggressive bidding from all the bidders, which leads to price war between different organizations. Value analysis and value engineering are the concepts, which help in understanding the correct path to proceed with improvements, which will ultimately result in higher customer satisfaction or we can say increased market shares. A case study of Global Pumping Unit is taken for the research, in which the design of components with removal of excess material and change in material have significantly reduced cost of whole pumping unit using VAVE methodology. In this study, a total of three components namely rotor, pump body and stator housing were taken to apply VAVE which resulted in 30, 4 and 10% of cost reduction.