Case Study

Food Processing Equipment Fabricator - VA/VE

Situation

  • Market leader in the manufacturing of food processing equipment and solutions
  • Innovation is one of their key focus areas when bringing product to market and this manufacturer looked for new methods to bring cost effective ideas into their designs
  • Management had tasked the team to reduce the overall cost of one of their products and to learn the Value Analysis/Value Engineering methodology for use on all future design projects

Actions

  • Reduced the overall cost through a product teardown and addressing various design criteria, including serviceability, manufacturability, and purchasing
  • Aligned product design to “voice of the customer”
  • Analyzed the subsystem using FAST diagram and functional cost analysis prior to brainstorming and developing new ideas to improve the design and lower the overall cost

Results

  • Realized 35% cost reduction by eliminating functions that were not critical to he customer 
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Argo, Inc is a global operations consulting company dedicated to implementing lasting performance improvements with offices in Chicago (US), Germany and Canada and an active presence in more than 20 countries. Specialties include: Lean Transformation, Six Sigma, Kaizen, Revenue Enhancement, Product & Process Innovation, Sales Effectiveness, Value Pricing, Supply Chain, Strategic Procurement, Network Optimization, Transportation & Logistics, Working Capital, VA/VE, Pre/Post Merger Integration, Training.