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Purpose
The purpose of this case is to provide an introduction to the understanding of value analysis and the decision making process involved.
Discussion
Part of the decision making process for AGE will involve careful analysis of quality, economic, and reputation factors that will have a tremendous impact on their company if the proper decision is not made. In discussing this case the following should be kept in mind:
When considering the use of a product or service stemming from value analysis work, it should be considered an upgrade. It is not and should not be something that will reduce quality. It should improve it and make it a more economic process.
Question 1:
What are the advantages and disadvantages of using waferboard?
Comment:
Waferboard is less expensive. It is a much more consistent material than plywood, as far as having no core voids and knotholes, which makes it easy to work with. Because of its makeup, the waferboard also tends to be much more weather resistant than the plywood. All this seems to confirm is that it is a quality product, but there is still the big drawback that it is a new product in the industry. Another disadvantage of the waferboard is its appearance. It doesn’t have a finished appearance, as does plywood. It also resembles a type of board used by the industry for nonstructural items, known as particleboard. This in itself creates an image problem with the individual home buyers because most home buyers are not familiar with waferboard. They are accustomed to seeing nice, clean looking plywood. This could create a negative attitude toward the builder as having poor quality that leads to a bad reputation.
Question 2:
If AGE Builders does not use waferboard, does it risk falling behind competition?
Comment:
This depends on whether the industry has accepted the use of waferboard as a standard. AGE will have to do research to see if the product...