Strategic Cost Management and Quality Optimization in Hat Manufacturing: A VA/VE Analysis Approach.

Efficiency, Productivity, and Production layout are crucial metrics to the company’s operations. However, several complexities are found in hat manufacturing, leading to unavoidable dilemmas. Observations at a hat company revealed several critical issues such as insufficient manpower causing productivity problems, workers juggling multiple roles leading to delays, lengthy travel times between stations, delays due to defects and machine malfunctions, and inefficient production methods. To address these issues, engineering methods shall be utilized. This study employed industrial engineering tools such as the fishbone diagram for cause and effect analysis in 5Ms and Pareto chart to identify significant potential problems in the company that can impact operations. The study aims to improve manpower, layout, hat production, eliminate delays, and ensure sufficient supply and storage for fixtures and equipment in the manufacturing company utilizing ProModel Software. The techniques used in process optimization, product quality, and cost reduction are Time and Motion Study and function cost matrix. This study proposes methods for product, process, and cost management in the hat manufacturing company. The results show a total cost savings of 39.2% in the function cost matrix. In the time and motion study and ProModel simulation, the current yield results in 67 cycles and the proposed 81 cycles. The VA/VE approach helps in reaching optimum results for the company’s efficiency with a comparison of cost and process improvement. Utilizing tools like Value Analysis and Value Engineering (VA/VE) has played a major role in achieving the necessary improvements that the company will benefit from in the long term. Directions for future study include producing new research that will explore further alternative methodologies for existing industry problems. [ABSTRACT FROM AUTHOR]