Case Study

Value Engineering : Product cost reduction for Beverage Dispenser

Client: Supplier of Beverage Dispensing and Cooling Equipment USA

Solution: Value Engineering

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Background

Background

A leading US supplier of beverage dispensing and cooling equipment, manufactures and markets a broad line of beverage dispensing solution for soft drink, beer, ice, juice, tea, and frozen as well as a complete line of accessories.

Background

Challenge

The client is looking for a Dispenser that costs less without sacrificing the performance of the existing product. This dispenser is very popular product.

Background

Solution

Onward identified the parts & subassemblies for value engineering. 35 ideas were generated considering the following criteria :
• Redesigned parts considering minimum impact on existing tooling.
• Altered the materials (SS to Sheet metal and Sheet metal to Plastic)
• Redesigned modules, modified shape for manufacturability.
• Reduced thickness.
• Changed manufacturing processes.
• Used Logic/Software compatibility with field units.
Focused on ease of assembly with elimination & integration of parts.
Finally using Pugh matrix, customer had choose the best aspects of the various concepts to produce there product, which is better than the alternatives used initially.

Background

Result

Reduced the overall product cost of the beverage/beer dispenser by 30% and also improving the performance of the dispenser