PROJECT SYNOPSIS OF

“COST CONTROL/REDUCTION”

PROJECT UNDERTAKEN AT

SYNERGY INDUSTRIAL SERVICES PVT. LTD.

SUBMITTED BY
MR. SOURINDRA NATH MAITY
ROLL NO- RG/2018/1013631/CL

GRADUATE DIPLOMA IN MATERIALS

MANAGEMENT

IN

INDIAN INSTITUTE OF MATERIALS

MANAGEMENT
 ITEM PARTICULARS REMARKS
Name of Student MR. SOURINDRA NATH MAITY
Roll no. of student RG/2018/1013631/CL
Address for 343, Garia Gardens, Prakriti Abasan,
2nd Floor, Flat No- B-23,
correspondence
Garia, Kolkata-700084
Telephone
E-mail Contact- 9088776414

Mail id- sourindranathmaity@gmail.com

Name of Guide
Designation
Address

Proposed title of project Cost control/reduction

(i) Value Analysis

Problem under study ii) Method Study

(i) Value Analysis- Value analysis is an

approach to cost saving that deals with product
design. Here, before buying any equipment or
materials, a study is made as to what purpose these
things serve? Would other lower- cost design work
as well? Is there a cheap material which can serve
the same purpose? So, value analysis is a procedure
which specifies the function of products or
components, establishes appropriate costs,
determines the alternatives and evaluates them.
Thus, the objective of value analysis is the iden-
tification of such costs in a product that do not in
any manner contribute to its specification or func-
tional value. Thus, it is the process of reducing the
cost without sacrificing the predetermined
standards of performance. It is a supplementary
device in addition to the conventional cost
reduction methods. Value analysis is closely related
Scope to Value Engineering. It is very helpful in industries
where production is done on a large scale and in
such cases even a fraction of savings in cost would
help the firm significantly.

ii) Method Study- Method Study is a

systematic study of work data and critical
evaluation of the existing and proposed ways of
undertaking the work. This technique is known as
work study and organization and method Work
study helps to investigate all factors which enable
the management to get the work done efficiently
and economically. The prime objective is to
analyses all factors which affect the performance of
a task, to develop and install work methods which
make optimum use of human and material re-
 sources available and to establish suitable
standards by which the performance of the work
can be measured. Method study aims at analyzing
and evaluating all those conditions which influence
the performance of a task. It is the creative aspect
of work study.

Name of the Organization ~

M/S Synergy Industrial Services Pvt. Ltd.

30/1, Ballygunge Place
Kolkata - 700019,
India
Website: - www.synergyispl.com
Works ~
WBIIDC Growth Centre, Kalyani-741 235

Synergy Industrial Services Pvt. Ltd. started in 1996

to offer ‘TOTAL BELT MANAGEMENT’ services to
the users of Material Handling Systems in India. Its
services encompass delivering top quality Conveyor
Brief background Belts, Spillage control conveyor accessories, Steep
Angle Belt systems, portable Belt Vulcanizing Press,
Belt Changing Equipment and Design &
Engineering Solution related to Belt Conveyors.
Today Synergy delivers products & services to
Global companies like Tata Steel, ThyssenKrupp,
Takraf-Tenova, FLSmidth, McNally Bharat, Larsen
& Toubro and Indian companies such as National
Thermal Power Corporation, Grasim Industries,
TRF, Elecon, HINDALCO to name a few.
Synergy’s basic philosophy is to obtain Total
Customer Satisfaction through transparent
business practices.

Methodology In this paper we intend to approach the advantages

of the use of VA. We will start by describing the
methodology of its application and the evolution of
the method. It is highlighted the importance of
creating a value culture in the organizations and the
VA contribution for the conventional systems. The
importance of VA in cost control and reduction.
Techniques to be follow for Value Analysis:
1. 1. Work in Specifics
2. 2. Obtain All Available Costs
3. 3. Seek Information from the most Authentic
Source
4. 4. Evaluate Function by Comparison
5. 5. Discuss with Specialists and take Advantage of
their Expertise Knowledge
6. 6. Use Real Creativity
7. 7. Consult your Suppliers for New Ideas
8. 8. Use Standard Parts Whenever Possible
9. 9. Identify and Overcome all Road-Blocks
 In this paper we also intend to approach the
contribution of Method Study in the field of cost
control and reduction. Method study is the process
of subjecting work to systematic, critical scrutiny
to make it more effective and/or more efficient. It
is one of the keys to achieving productivity
improvement. It was originally designed for the
analysis and improvement of repetitive manual
work but it can be used for all types of activity at
all levels of an organization.
The process is often seen as a linear, described by
its main steps of:

▪ Select (the work to be studied);

▪ Record (all relevant information about that
work);
▪ Examine (the recorded information);
▪ Develop (an improved way of doing things);
▪ Install (the new method as standard
practice);
▪ Maintain (the new standard proactive).
Although this linear representation shows the
underlying simplicity of method study, in practice
the process is much more one of repeated passes
through the sequence of steps with each
dominating at a different stage of the
investigation.

The cyclic process often starts with a quick, rough

pass in which preliminary data are collected and
examined before subsequent passes provide and
handle more comprehensive and more detailed
data to obtain and analyze a more complete
picture

Conclusion/ The two techniques cost control and cost reduction

are used by many manufacturing concerns to
Recommendations diminish the cost of production. Cost reduction
has a larger scope then cost control as cost
reduction is applicable for all the industries, but
cost control is applicable only to the industries
where pre-optimization of the cost which is not yet
incurred is possible. Cost control works as a road
map for the organization to incur costs as per the
set standards. On the other hand, cost reduction
challenges the established standards by decreasing
the cost and increasing the profit.
There is always scope for a company for its cost
control and reduction. In this project we will
discuss the mentioned techniques of cost control
and reduction and will analysis them to see how
the techniques are applicable in the field of cost
control and reduction and how the techniques will
help the organization for its cost control and
reduction.
Approved/Not
approved
Comments/Suggestions