Tex Plastics have developed systems to help you reduce costs

27th July 2020

Having a systematic method for looking at costs means continually exploring opportunities for cost reduction, through careful, systematic analysis.

The time necessary to analyse a product’s cost can be reduced, and the key to any quick ‘value engineering’ is to leave as much of the core product the same changing either the manner in the way it is procured, manufactured, or sold. This circumvents the need for a lengthy or complex product re-qualification.

The Tex Plastics Value Engineering Process

An important aspect of Tex Plastics Value Engineering Process lies in its ability to respond with timeliness, flexibility, and creativity. It can be used for new or existing programs, all phases of a project, and for organisational processes. Value Engineering can be used to improve quality, achieve lower costs, assure compliance, improve efficiency, build teamwork and reduce risks.

Parts Value Engineering Methodology

Value engineering began at General Electric Co. during World War II. Because of the war, there were shortages of skilled labor and raw materials. This meant how things were done needed to be challenged to find a more efficient way. Value engineering is a recognised design engineering technique involving critical examination and analysis of the design of a component with reference to its functional value.

Cost pressures will only increase in a post COVID-19 economy

Today companies need to have a systematic method to help lower product cost for many commercial reasons. Many times requests to reduce product cost result from external factors and require quick response. In fact, these requests can often appear to be ad hoc. Reasons for the request vary. A competitor introduces a lower-priced product and thus squeezes your product’s margins. Overly enthusiastic sales forecasts fall below expectations and product revenues barely cover fixed costs. Even more common, a supplier raises its price and these costs cannot be passed along as price increases to your customers.

Find out how we can help you drive waste out of your plastics injection moulded parts and associated supply chain