The Significance Of Value Analysis And Value Engineering In United Foam Plc, Ilorin

STATEMENT OF RESEARCH PROBLEMS
    Since organization needs to present products that are of value to the customer for them to be profitable, every organization is in a need to achieve this. But the problem here is that not all organization has what it takes to provide the necessary product design that will culminate to value to the organization.
Lack of innovation product design which is part of value engineering is lacking in organization. Also inability to identify alternative to indentified function of a product is a problem faced by most organization in their production process. If there is no alternative to identified function, it will be difficult to reduced cost without sacrificing the value to be derived by the customers. Therefore cost reducing is an essential criterion of public limited companies in Nigeria for been profitable and Value Engineering remains a technique for achieving this goal of cost reduction and profitability in Public Limited Companies.
1.3    OBJECTIVES OF THE STUDY
This study is undertaken in order to explore the academic relationship between classroom theory and what is practically obtainable in bottling company having chosen the project topic.
As assessment of the application of value analysis and value engineering in cost reduction “(A case study of United Foam Public Limited Company, Ilorin),
1.     To investigate those factors that are responsible for unnecessary     cost of an item in an organization.
2.     To identify the benefits that can be derived from the implementation of effective value analysis programme in an organization.
3.     To investigate what should be the role of purchasing in value analysis programme in an organization.
4.     To identify those areas in which value analysis is applicable; that well result into cost reduction to the overall goal of organization.
5.     To cause top management to realize that value analysis should really be everybody business. In one sense, maximum potential can be realized from a values analysis programme only if management properly takes these potential resources.
1.4    SIGNIFICANCE OF THE STUDY
In view of the huge expenditure on purchase of materials used in industries, it becomes imperative for the implementation of value analysis techniques to reduced cost of production in industries. It is the impact of this study to make a viable and importance rectification so as to determine alternative ways of obtaining same quality materials or items but at a reduced cost.
•     It is also the significant of this study to accuse consciousness to the benefits of effective value analysis program in organizations.
•     The project will also show how purchasing as a member of value analysis team is involved in value analysis programme.
•     This project is also aimed at reviewing the way cost is being reduced by the use of value analysis techniques in an organization.
•     The study is also undertaken in partial fulfillment of the National Board for Technical education and the Kwara State Polytechnic Ilorin, for the award of HND in purchasing and supply.
•     Finally, it will remain as a data bank for future researchers.
1.5    SCOPE OF THE STUDY
This study is supposed to cover Unifoam Industries, but as a result of the researcher being a student, faced with so many work in school which involves lectures & studying for the final exams and writing of this project at the same time and due to time constraints this research work will be focusing on the very department in Unifaom company Ilorin“ that will make impact on the subject matter and these departments are as follows: Purchasing production, Quality control, Accounting, Design and Engineering Departments.
1.6    RESEARCH QUESTIONS
To achieve the objectives of the study, the following research question are necessary, notable among them are;
1.     Is value analysis an effective technique in respect to cost reduction programme?
2.     Does value analysis lead to a drastic cost reduction in products and services in industries?
3.     Does purchasing play a vital role in value analysis programme?
4.     Do those involved in product design; have enough time to critically examine possible alternatives materials and processes?
5.     What has firms benefited from the application of value analysis programme?