Implementation of Value Engineering for Production Process Efficiency in Metal Stamping Industry

Engineering and Technology Journal e-ISSN: 2456-3358 Volume 10 Issue 12 December-2025, Page No.-8281-8287 DOI: 10.47191/etj/v10i12.28, I.F. – 8.482 © 2025, ETJ 8281 ETJ Volume 10 Issue 12 December 2025, 1 Yordan Christian Artha Implementation of Value Engineering for Production Process Efficiency in Metal Stamping Industry Yordan Christian Artha1, Bambang Septianto2, Ade Ali Ramdhani3, Zamzam Maulana4, Yudi Prastyo5 1,2,3,4,5 Industrial Engineering, Pelita Bangsa University Jl. Inspeksi Kalimalang-Tegal Danas, Cibatu, Cikarang Selatan, Bekasi, Jawa Barat 17530, Indonesia. ABSTRACT: Productivity can be increased by modifying the production process to achieve the best cycle time, but the quality of product doesn’t decrease. This research aimed to increase the efficiency of the metal stamping process in an automotive company by considering the value engineering aspects. Value engineering (VE) is a systematic analysis of the functions of various components and materials to lower the cost of goods, products and services with a tolerable loss performance or functionality. Before the progressive die design changes were made, this automotive company required an additional process machining to produce one of their products, because the result of the progressive dies have not reached the specified quality standards, where the specified product height is 8.5mm ± 0.5 with ironing 7% of the material thickness, while the actual product height achieved 11mm with ironing of 010% at a height of 0-9mm and 40% at a height of 9-11mm. In response to this situation, this company attempted to increase the drawing height by 2.5mm and then cut it with a turret machine, but this process was inefficient. Therefore, researchers made changes to the design of progressive dies to produce products without using the turret machine. In the design of progressive dies, researchers considered several aspects, such as the process sequence within the progressive dies, the material tension during each drawing process, and the ironing of the material. After the design changes, the target ironing 7% of the material thickness was achieved without changing any other dimensions, and it has an impact on reducing the production cost by 10.87%. KEYWORDS: cycle time; metal stamping; dies progressive; turret machine; value engineering; ironing 1. INTRODUCTION The automotive industry is one of the main pillars of the world economy, with fierce competition between countries to dominate the market. Indonesia has successfully entered the list of the top 15 vehicle manufacturers in the world, occupy a competitive position with countries that have long been major players in this sector. Based on data from Organisation Internationale des Constructeurs d’Automobiles (OICA), Indonesia is in 14th position as the largest vehicle industry in the world, with car production of 1.196.664 units throughout 2024. Here are the 15 countries with the largest automotive industries in the world as of 2024. Tabel 1. Countries with the Largest Automotive Industries Country Number of Cars Number of Commercial Vehicles Total China 27.476.886 3.804.706 31.281.592 USA 1.432.615 9.129.573 10.562.188 Japan 7.139.188 1.095.493 8.234.681 India 4.991.413 1.023.278 6.014.691 Mexico 947.726 3.254.916 4.202.642 South Korea 3.849.326 277.926 4.127.252 Germany 4.069.222 4.069.222 Brazil 1.895.020 654.575 2.549.595 Spain 1.918.244 458.260 2.376.504 Thailand 549.752 919.245 1.468.997 Czech Republik 1.452.881 6.011 1.458.892 Turkey 904.513 460.783 1.365.296 Canada 217.344 1.125.303 1.342.647 “Implementation of Value Engineering for Production Process Efficiency in Metal Stamping Industry” 8282 ETJ Volume 10 Issue 12 December 2025, 1 Yordan Christian Artha Indonesia 1.026.976 169.688 1.196.664 Slovakia 993.000 993.000 Source: OICA (Organisation Internationale des Constructeurs d'Automobiles) Meanwhile in the two-wheeled sector, Completely Built Up (CBU) motorcycle exports in ASEAN from January to October 2025 based on data from Association Industri Sepeda Motor Indonesia (AISI), Indonesia’s position is in first place with a total of 458.101 units and part by part of 113.292.768 units. To survive industrial competition, the manufacturing industry in the metal stamping sector is required to increase efficiency in the production process, so it can produce competitive product prices with guaranteed quality, even though there are various obstacles such as press machines, dies, materials, labor and even industry regulations. In the case study that has been conducted, there is one process that is the object of research, namely the production process of a motorcycle component called the Collar T/L Set in an automotive company. The production process of Collar T/L Set generally requires 3 processes, namely progressive stamping, machining with a turret machine and electro plating. Given these conditions, researchers simplified the production process from three processes to two processes. This research aims to obtain an effective production process by maximizing it in the metal stamping process. Therefore, researchers changed the existing progressive die design by paying attention to several important aspects including the sequence of processes in progressive dies, material tension in each drawing process and material ironing. The simplification of the production process carried out by researchers aims to obtain effective production time and lower production costs. 2. LITERATURE REVIEW Value engineering was first introduced by Lawrence D. Miles, an engineer from General Electric Company in 1947. Miles combined various ideas and techniques in developing a methodological approach to ensure the value of a product has an optimum cost and is called value analysis which later after its widespread use became known as Value Engineering (VE). Value engineering is an organized effort directed at analyzing the functions of systems, equipment, facilities, services, and provision of services to achieve significant objectives at the lowest life cycle cost, consistent with performance, reliability, quality, and safety requirements. Value engineering distinguishes and separates the necessary from the unnecessary, where alternatives are developed that meet the needs and eliminate the unnecessary at the lowest cost. Value engineering is the systematic application of a few techniques to identify the functions of an object or service by assigning a value to each existing function and developing several alternatives that allow the achievement of these functions at minimal total cost [8]. Value engineering is an organized, directed, functionoriented team approach to analyzing the functions of a product, system, or delivery process, for the purpose of increasing its value by identifying unnecessary costs and achieving required performance at the lowest project life cycle cost [13]. Value engineering is an evaluation method that analyzes the techniques and value of a project or product involving owners, planners and experts who are experienced in their respective fields with a systematic and creative approach that aims to produce consistent quality at the lowest possible cost, namely with functional limitations and task plan stages that can identify and eliminate unnecessary/unsupportive costs and efforts[5]. Value engineering is a systematic and structured multidisciplinary decision-making process. It involves analyzing functions to achieve the best value for a project by defining the functions required to achieve the desired value and providing these functions at an optimal cost, consistent with the required quality and performance [3]. Value engineering is a systematic evaluation to examine and consider various activity components such as procurement, fabrication, and construction as well as other activities in relation to their costs and functions, with the aim of reducing overall project costs [10]. Value engineering is a method of cost savings using a systematic approach to achieve the best balance of functions between cost, strength, and appearance of a project. The characteristics of value engineering are as follows [16]: a) System oriented b) Multidisciplinary team approach c) Life cycle oriented d) A proven management technique e) Function oriented Value engineering is a low-cost, systematic approach to assessing a project. Value engineering can be used to obtain the following benefits [15]. • Cost reduction • Time saving • Quality improvement • Fix design flaws Three key stages in the design of the offline quality control process, namely System Design (primary design), Parameter Design (secondary design), and Tolerance design (tertiary design) [11]. “Implementation of Value Engineering for Production Process Efficiency in Metal Stamping Industry” 8283 ETJ Volume 10 Issue 12 December 2025, 1 Yordan Christian Artha Ref: SAVE International, 2007 Figure 1. Work Plan Ref: Bechtel’s Value Engineering Handbook, 2000. Figure 2. Potential reduction in production costs from the implementation of VE 3. RESEARCH METODOLOGY To achieve the required function according to the value obtained, value engineering consists of three aspects, namely value, function and cost [16]. a) Value Value can be divided into two: use value and esteem value. Use value reflects the extent to which a product is useful due to its function, depending on the product's nature and quality. Esteem value indicates the product's ability to satisfy its consumers. b) Function Function is the main benefit of a product that is designed to meet practical needs or provide solutions for users. Functions can be divided into three, namely basic functions, secondary functions, and unnecessary functions. The basic function is the main reason the system exists, because if the basic function is lost, the selling value attached to that function will also be lost. Secondary functions are complementary to basic functions, which are needed to fulfill and support basic functions. If the secondary function is removed, it will not interfere with the capabilities of the primary function. Meanwhile, unnecessary functions are anything that is given and does not have any utility value, added value, exchange value or aesthetic value. c) Cost Cost is the sum of all efforts and expenses made in developing, producing, and applying a product. Manufacturers always think about the impact of costs on quality, durability and maintenance because it will affect costs for users. Life Cycle Cost (LCC) is the total cost starting from the initial planning stage until the end of use of a facility. The elements of Life Cycle Cost (LCC) are investment costs, financing costs, operational costs, maintenance costs, change costs, taxes and salvage value. The largest costs that often contain unnecessary “Implementation of Value Engineering for Production Process Efficiency in Metal Stamping Industry” 8284 ETJ Volume 10 Issue 12 December 2025, 1 Yordan Christian Artha Figure 3. Flow process metal stamping Ref: Document PQCS metal stamping company costs include materials, labor and overhead. The relationship between value, cost and function can be formulated as follows: 𝑉𝑎𝑙𝑢𝑒 = Function Cost So, value can be increased by increasing/improving function without increasing the cost of the product/service, reducing costs by maintaining function and reducing the cost of producing it, and a combination of both. Factors that need to be considered in implementing value engineering are as follows: a) Availability of planning data b) Initial cost c) Operational and maintenance requirements d) Availability of materials e) Adjustment to standards f) Impact on users The implementation of value engineering is divided into several stages, namely as follows: a) Information The information stage is an initial stage in the value engineering work plan which aims to obtain a comprehensive understanding of the system, structure, or parts being studied and aims to collect data related to the work items being analyzed, to obtain the work items for which value engineering will be carried out. Some basic principles carried out at the information stage are cost models, cost breakdown and functional analysis. b) Creative Stages to produce various alternatives that can fulfill or carry out the main function. c) Analysis The stage for evaluating the alternatives generated in the creative stage. The evaluation results are used to determine which alternatives are beneficial, allowing for further studies that will offer the greatest potential for cost savings. d) Development At this stage, what is done is to prepare all ideas or opinions to be examined into the initial design (preliminary), create a solution outline, estimated into the life cycle cost of the initial design and with the newly proposed design, then the present value (PV). e) Presentation At this stage, a written or verbal report is made in the form of a percentage, presented to all parties involved in the project. This describes the alternatives that will be selected. f) Implementation When the change is declared successful in terms of function and quality, the change is socialized to the relevant lines to be implemented comprehensively. g) Monitoring Periodic monitoring of the results of changes is carried out, including the quality and smoothness of the process. 4. DATA PROCESSING The flowchart of the Collar T/L Set production process (before improvement) is shown in scheme 1. Then, scheme 2 represents the target improvement, where the turret machining process is no longer used in scheme 2, because this process will be maximized within the progressive metal stamping process. In this condition, there is a simplification of the production process flow with the aim of reducing production costs without lowering the quality of the products produced. Scheme 1 Scheme 2 “Implementation of Value Engineering for Production Process Efficiency in Metal Stamping Industry” 8285 ETJ Volume 10 Issue 12 December 2025, 1 Yordan Christian Artha Figure 4. Design layout Collar T/L Set (existing) Ref: Metal stamping company Figure 5. Actual Layout Collar T/L Set (existing) Ref: Metal stamping company Figure 6. Actual product (existing) Ref: Metal stamping company Figure 7. Standard Dimension by QIS Ref: Metal stamping company Table 2. Reject Collar T/L Set (January – June 2025) Figure 8. Illustration of existing production process Ref: Metal stamping company Table 3. Output Production Collar T/L Set (January – June 2025) Table 4. Machine turret usage (January – June 2025) Figure 9. Fishbone Diagram By using JSC270C material, thickness 1.0 mm, width 29.5mm, pitch 28mm and 110T machine press, the existing die layout is obtained as shown in the following image, As seen in Figure 6, there is ironing of the material at the end of the product, so the metal stamping company make this dimension product higher than standard drawing. To achieve the height and eliminate the ironing area, machining with turret is performed, but this methode make the cycle time decrease and potentially creating many part defects, because the turret process is manually. The defect ratio in the turret process from January to June 2025 was 560 pieces, with a loss value of IDR 600 / piece. Meanwhile, the cost of using a turret machine is IDR 65/ piece. Therefore, the production costs incurred using the turret process (6 months) are as follows, - defective products = 560 x 600 = IDR 336.000 - machine cost = 1.391.595 x Rp 65 =IDR 90.453.675 - total =IDR 90.789.675 From these calculations, an average of IDR 15.131.612/ month must be paid for production costs using a turret machine, with the following details of the production time required: 5. ANALYSIS After researchers collect data over a certain period and understand the data, the next step is to analyze the conditions that occur. The next step is to implement countermeasures to address the root causes found in the fishbone diagram by developing a plan based on the 5W + 1H concept. 8mm 3mm 0.6mm 0.9mm 0.95mm 1.07mm “Implementation of Value Engineering for Production Process Efficiency in Metal Stamping Industry” 8286 ETJ Volume 10 Issue 12 December 2025, 1 Yordan Christian Artha Table 5. Problem Analysis Table 6. 5W+1H Figure 10. New Collar T/L Set progressive dies construction (front view) Figure 11. New Die Layout Collar T/L Set Figure 12. Collar T/L Set design changes Redesigning progressive dies using different calculations for each drawing process in the previous design. Drawing is the process of forming metal from sheet metal into a tube shape. In this case, there are changes in the target achievement of radius, inner and outer diameter and product height in each step to achieve the specified dimensional standards. The limitations in the tooling redesign are the same material type JSC270C thickness 1.0 mm, width 29.5 mm, pitch 28 mm and a 110T press machine. This is implemented so as not to change the gross weight and rate of the machine used. Significant changes to the design occurred in the drawing 1, drawing 2, drawing 3, drawing 4, piercing and burring processes as shown in Figure 12. After the design and machining process are completed, the assembly process is carried out and then trial and error is continued to obtain the appropriate setting parameters, so that the resulting product does not experience changes in quality and the production process runs stably. Samples from the trial results are checked to determine whether the resulting dimensions are in accordance with the repair target or not. The measurement method for the samples is the same as the measurement method used for existing products. From the inspection results, the material thinning results were obtained by 0.03 ~ 0.05 mm, where within good limits is ± 0.07 mm. 6. CONCLUSION Based on research conducted on the production process of Collar T/L Set, researchers can conclude: 1) Radius punch in the tooling design determine the product results, because a sharp punch will increase the bending force required for the drawing process. 2) Radius die in the tooling design affect the forming force. If the die radius is close to the material thickness, the bending force that occurs will be smaller. Conversely, if the die radius increases, the bending force that occurs will be greater. 3) To facilitate the movement of material during the drawing process, a gap is required between the punch and the die, this gap is called clearance. The clearance is 7% to 20% of the material thickness. 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