What is the role of Value Engineering in Packaging?« Back to Questions List

What is the role of Value Engineering in Packaging?
Posted by Dev sharma
Asked on February 10, 2018 8:15 am

Let’s unfold the term Value Engineering step by step by first understanding the meaning of Value.

What is Value in the context of Value Engineering?

Here value is a direct relation between utility and costs. In short, to have increased value, either increase the utility of the product / service or reduce cost. Something like productivity.

And Value Engineering is a methodical observation of the utility of the product / service in order to improve its value.

When applying VE in packaging, one needs to understand following things:

1. Past data related to cost, quality and functioning of packing of the product selected for VE.

2. The product and its behaviour with respect to atmosphere and handling conditions. For e.g. a brittle product like glass may not need rust prevention, but may need soft packing to protect it from physical damage, whereas a machined steel may need protection from rust and scratches. Some products are even susceptible for vibrations.

3. How the product is going to be stowed and handled in transit? We cannot expect handlers to take care of the product like baby during multiple transits and handling!

4. What is the mode of transportation? Road, Sea, Rail, Air???

5. What are the storage conditions during transit and at the destination? In closed shed or open to air? In cases, the product lies in packed condition even for years and sometimes in rough weather conditions!

6. Most importantly “The Perceived Value” of the product from customer’s eyes. Few customers don’t like to have even a small scratch on their product while few customers are ok with rejection at receipt end as far as the cost of rejection is less than the cost of packaging.

Once you have gathered above information, then the role of VE starts and it follows below steps:

1. Overall analysis of past data and other gathered information.

2. Breaking the functions into various category and cost associated with each function.

3. Assessing the relation between function and its associated cost.

4. Identifying the big sharks and further detailing of those functions, if possible. It could be overdesigned packing, improper utilization of space, multiple handlings, wrong handlings, inadequate understanding of end users, etc.

5. Work on the alternate functions to balance the costs or sometimes, just re-negotiate the costs.

6. Document the analysis for future purpose or horizontal deployment.

Posted by Holisol
Answered On February 10, 2018 8:17 am