Cost-to-worth value engineering analysis of manufacturing industries in Akure South LGA, Nigeria

Abstract

The production operations in our industries today have some of their components contributing to the cost instead of making additional contribution to value. The areas of labour, inventory, material purchase, maintenance, energy and quality in Nigerian manufacturing industries were investigated. The result of the investigation shows that the area of labour shows a very good savings, while energy has the highest values, followed by inventory and maintenance. Material purchase and quality are a little bit above normal worth. As the savings in labour gives the companies' advantages, it adversely affects the labours that are paid far less than their normal worth. Suggestions were made for the companies to make additional savings.

Keywords: cost-to worth, value engineering, manufacturing industries

Nigeria Journal of Pure and Applied Physics Vol. 4(1) 2005: 16-24