Case study for Task $2$

LightUp UK is an engineering company that manufactures torches. The company is reviewing the types of torches it manufactures that aren't selling well, including their dynamo torch.

Tom Wright works in the company and has been asked to carry out a value analysis exercise on the dynamo torch.

$1$ Information phase

Tom starts by writing down the cost and price of each unit of the product

$\backslash$table$[[$Table $1$ Cost and price per unit of the dynamo torch$],[\backslash$table$[[$Cost$],[($the amount it costs the company to$],[$manufacture each torch$)],[$Value$],[($the price each torch is sold at$)]]]]$

Tom then gathers some information from customers about whether they think the torch is 'good value'. He finds out that there may be an issue with the dynamo mechanism inside the torch: many customers say that it breaks easily. Next, Tom investigates the processes used to manufacture the torch. He identifies some value$-$added activities and non$-$value$-$added activities, as well as the costs associated with them

$\backslash$table$[[$Table$,-$ad$,\backslash$table$[[$ded activities fo$],[$Cost per uni$]]],[$Activities$],[$Value$-$added,Machining,$0\mathrm{.}25$