November 2015
Intermediate to advanced
192 pages
4h 46m
English
Content preview from Value Analysis and Engineering Reengineered
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The Audit Results Phase
CANDY WRAPPER CASE STUDY
During the second through the fourth year (while the original design
was still in supply) actual cost savings realized on 221 tons of the new
design wrapper (49 tons with 50% inking and 172 tons with 25% inking)
amounted to $264,346.00.
e cost savings on the new annual requirement of 175 tons for the
fourth year was as follows:
90% inking $1,192,768.00
25% inking − $963,477.00
TOTAL SAVINGS $229,291.00
Based on those results, the company explored changing the supplier for
further cost savings. e savings on 175 tons of candy wrappers was cal-
culated as follows:
Current European Supplier $963,477.00 ...
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