Quantitative Evaluation of Value Engineering Metrics for Productivity Improvement Through Function and Cost Analysis in Small‐Scale Cooling Units

ABSTRACT The fundamentals of value engineering are presented in this article and can be applied to any small‐scale refrigeration water cooler manufacturing industry. Value engineering is a clever technical engineering approach that is also a cost‐effective way to get the required product function at the lowest possible cost. A case study of a refrigeration water cooling system is conducted, where the value engineering method is used to modify the component design and material. According to the case study, the usage of different hardware components, expensive materials, excessive material size, etc., raises the cost needlessly. The compressor, condenser, condenser fan, evaporator, refrigeration control system, outer body, taps, drain tray, and other components of the water cooler have been chosen, and value engineering is applied to these components to cut costs. The functional coefficient, cost coefficient, and value coefficient are calculated to analyze the correlation between various functions and their associated cost. Through the use of value engineering techniques in refrigeration water cooling systems, cost savings are accomplished.