Connector Cost Control Based On Value Engineering

The continuous progress of science and technology brings down the prices ofelectronic products. As one of the major manufacturers of electronic connector industry, FCompany is facing of demand for price reductions. And at the same time, it also have toface increased labor costs caused by the environmental impact of lack of work in Chinamainland and the rising raw material price cost impacted by bulk materials fluctuations ininternational market. A reasonable and effective cost control method can keep FCompany’s ability to continue to maintain its leading position in the fiercely competitivemarket.This article analyzes the cost of F Company’s conenctors. Though the example ofDual stacked USB3.0connector, it uses ABC method to choose main factors affecting thecost of the connector as VE major objects. Use FD method to reconfirm and verify thechosen objects through value and functional analysis. In order to prevent FD method notaccurate enough, use DARE and basis points methods to further determine the shieldingshell and plastic framework as VE objects and calculate the target cost. Then collect andselect the best VE cost control plans. After implementation the improvement plans, verifyproduct performance by reliability test and evaluate economic benefits by costrecalculating. Use the double screening criteria of product performance and economicbenefits to evaluate the effectiveness of the program.Based on value engineering method, this article is doing critical connector costanalysis, cost control program, and verified by an example, to find a solution to the highcost of the connector causes and improvement measures. It plays an exemplary role onthe F Company connectors’ costs reducing and product competitiveness enhancing.