Abstract

Efficiency, Productivity, and Production layout are crucial key metrics to the company’s operations. However, several complexities are found in hat manufacturing, experiencing unavoidable dilemmas. This study aims to use Value Analysis/Value Engineering to optimize production processes by utilizing function cost matrix in both product and processes. In addition, this paper aims to improve manpower, present layout, productivity, and eliminate delays in the production processes using Pro Model Software. The results show 39.2 of total cost savings in the function cost matrix. Moreover, ProModel results shows 67 cycles for the current processes, while the proposed 1 and 2 provide 80 and 81 cycles, respectively. The VA/VE helps in reaching optimum results for the company’s efficiency with the given comparison of cost and process improvement. Utilizing Value Analysis and Value Engineering (VA/VE) has played a major role in reaching the necessary improvements that the company will benefit in the long term. Future works of this study may explore other variables such as marketing and advertisement of the product, future researchers can analyze the marketing process of hats and apply statistical method such as the regression analysis to understand the impact of different variables and assess the outcomes involved,  this method can help determine the value of ad spending and marketing spend on revenue.