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VALUE ENGINEERINGVALUE ENGINEERINGANALYSISANALYSIS

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1)Value Analysis (VA) is also known as VALUE1)Value Analysis (VA) is also known as VALUEEngineering (VE), Value Assurance and VALUEEngineering (VE), Value Assurance and VALUE

Management (VM). it is an approach for improvement inManagement (VM). it is an approach for improvement inthe performance of the products, systemsthe performance of the products, systems

or procedures and reduction or elimination of cost,or procedures and reduction or elimination of cost,without affecting the function.without affecting the function.

2)Value analysis as an organization creative approach2)Value analysis as an organization creative approachwhich has for its purpose the efficient identificationwhich has for its purpose the efficient identification

of unnecessary cost, i.e., cost which provides neitherof unnecessary cost, i.e., cost which provides neitherquality, nor use ,nor life, nor appearance, nor customerquality, nor use ,nor life, nor appearance, nor customerfeatures. VA is normally used in the area like customerfeatures. VA is normally used in the area like customerservice plans in banks, slum developmentservice plans in banks, slum development, motivational techniques,Teh, motivational techniques,Teh

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2)Value analysis as an organization creative2)Value analysis as an organization creative

approach which has for its purpose the efficientapproach which has for its purpose the efficient

identification of unnecessary cost, i.e., costidentification of unnecessary cost, i.e., cost

which provides neither quality, nor use ,nor life,which provides neither quality, nor use ,nor life,nor appearance, nor customer features.nor appearance, nor customer features.

VA is normally used in the area like customerVA is normally used in the area like customer

service plans in banks, slum development,service plans in banks, slum development,

motivational techniques,Techniques.motivational techniques,Techniques.

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VALUE ENGINEERING JOB PLAN

1. THE JOB PLAN IN FOLLOWING SEVEN STEPS:

2. GENERAL PHASE

3. INFORMATION PHASE

4. FUNCTION PHASE5. CREATION PHASE

6. EVALUATION PHASE

7. INVESTIGATIN PHASE

8. RECOMMENDATION PHASE

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General phaseGeneral phase

It is the most demanding phase of a VAIt is the most demanding phase of a VA

job plan. It creates the right environmentjob plan. It creates the right environment

for successful VA. In this phase ,for successful VA. In this phase ,emphasis is placed on human interactionemphasis is placed on human interaction

to seek coto seek co--operation of the team tonoperation of the team ton

implement VA. Work done on specifics,implement VA. Work done on specifics,

rather than on generalities.The resistancerather than on generalities.The resistanceto change is to be overcome.to change is to be overcome.

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Lack of information:Lack of information:

Most people who design a product are quite often not tooMost people who design a product are quite often not toosure of the real needs of a user and usually oversure of the real needs of a user and usually over--designdesignthe product by providing it with features that the user justthe product by providing it with features that the user justdoes not use.does not use.

The world is advancing exceedingly fast and newThe world is advancing exceedingly fast and newtechnology, new products, new materials and newtechnology, new products, new materials and newprocesses are coming up almost every day.They createprocesses are coming up almost every day.They createobsolescence in respect of the old processes. Costsobsolescence in respect of the old processes. Costswhich were considered satisfactory yesterday becomewhich were considered satisfactory yesterday become

unnecessary today. In the face of competition the royalunnecessary today. In the face of competition the royalroad to ruin is to adopt the methods of yesterday to theroad to ruin is to adopt the methods of yesterday to thebusiness of today.business of today.

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Information phase :here an attempt is made to assess the potential of value

improvement. project is studied in detail and all important fact are

gathered and considered. in this phase, fact which are in the form

of technical specifications or environmental specifications down.

development are considered. also, the engineering drawings,production sample, production data are all kept in mind.The cost

data and work specifications are secured. consumer preferences

are jotted and testing are studied. quantities and scrap are taken

in account. a relationship is to be established between cost and

specification or requirements.

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Function phase:Function phase:

Here the product is defined in term of its

functions, in term of its performance

expectations.These functions are co-

related with cost and their worth.

Most of the times, an attempt is

made to define functions with only two

words ---A verb and noun. It makes thedefinition pretty sharp. It introduces an

element of rationality into the exercise, by

trimming the frills.

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Some function DefinitionsSome function Definitionsproduct function

Tea cup Hold tea (liquid)

Light bulb Emit light

Gas lighter Provide ignition

Fan regulator Regulator speed

Match box Provide ignition

Mirror Reflect light

Brake Arrest motion

screwdriver Transfer torque

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Another technique which is used under thisAnother technique which is used under thisphase is to evaluate function relationship byphase is to evaluate function relationship byranking function in descending order ofranking function in descending order of

importance. Simultaneously relative value ofimportance. Simultaneously relative value oftheir importance determined.their importance determined.

Paired comparison method is fairly commonPaired comparison method is fairly commonamongst researchers. it determines numericalamongst researchers. it determines numerical

value of various functions.Here pairs of functionvalue of various functions.Here pairs of functionare compared to know their importance and toare compared to know their importance and toassess basic or secondary. Generally aassess basic or secondary. Generally aproducts basic function is one ,but it mayproducts basic function is one ,but it maypossess several secondary functions. Basicpossess several secondary functions. Basic

function can be restated in more ways than one.function can be restated in more ways than one.

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Creation phase

Lack of ideas

Most of use want previously tried out materials,designs processes and procedures. We jump at

the first ideas that work and usually do not

bother to find out if better methods are possible.

These days to give a fillip to creative ideas,brainstorming technique are used.To nurture

creativity, positive thinking is established.

Creative ideas are also developed by a number- -

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Evaluation phase:

Creative ideas generated during the Creation phase are

screened for their feasibility, cost effectiveness and

practicability at this stage. For this purpose, ideas are

further refined or combined together. Cost of all ideas

and savings resulting from their implementation are

studied. Decision-matrix can be set-up to evaluate on

basis of various criteria.

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Investigation phase:It is virtual extinction of the previous phase. ideas

accepted are here converted into acceptable and

workable solution to perform the desired function

at the least cost. It may be necessary tostandardize, to consult vendors and specialists,

and to use specialty products, processes and

procedures.

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Recommendation phase:Recommendation phase:

It is the ultimate phase of VA. Finally selected value

alternative here in presented for implementation on

acceptance. Acceptance is the key to success of VA.

Sometimes, acceptance is a result of presentation or a

combination of both. All the relevant data is kept before

management to enable it to take suitable decision.

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Alternatives of job plan:Alternatives of job plan:

Instead of the Recommendation phaseInstead of the Recommendation phasemethod we can adopt FAST or DARSIRI,method we can adopt FAST or DARSIRI,which is an acronym for data Collectionwhich is an acronym for data Collection

(D), Analysis (A), Record of ideas (R),(D), Analysis (A), Record of ideas (R),Speculation (S), Investigation (I),Speculation (S), Investigation (I),Recommendation (R), and ImplementationRecommendation (R), and Implementation(I).(I).

FAST (Functional Analysis SystemFAST (Functional Analysis SystemTechniques)Techniques)

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Fast as VE Technique:Fast as VE Technique:This technique is developed by Charles WThis technique is developed by Charles W

Bytheway(1965), FAST is a visual representation ofBytheway(1965), FAST is a visual representation offunctions and identifies the areas of greatestfunctions and identifies the areas of greatestimpact of these function on costs. It is animpact of these function on costs. It is aninteraction between function and cost.interaction between function and cost.

The following step are followed for constructionThe following step are followed for construction

FAST

FAST

1)1) Use verb and noun for describing functions.Use verb and noun for describing functions.

2)2) These functions are written on small cards.These functions are written on small cards.

3)3) First select the basic function card. :First select the basic function card. :

(i)(i) How is the function performed?How is the function performed?

(ii)(ii) Why is it performed?Why is it performed?(iii)(iii) When is it performed?When is it performed?The logical sequence of function (basic andThe logical sequence of function (basic andsecondary) generate a critical function path. Itsecondary) generate a critical function path. Itconsist of only critical functions.consist of only critical functions.

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Case studyCase study

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Data

collected

Function, cost current(450 amps) C\section, other

conductors and their costs, etc.

function Conduct Electricity

Cost 52 units per cable.

Worth 17 Units (steel cable with increased cross section could also

conduct at cheaper cost).

Creative

phase

Ideas to use cast iron, steel, aluminum, Nicro-alloys, silver,

etc. generated.

Evaluation After analyzing different ideas aluminum was considered

best and investigated regarding its feasibility, economy and

related problems like bi-metallic corrosion between

aluminum and brass lugs ets.Recomme

ndation

Aluminum cable of 120mm2 *1.5meters with zinc alloy

sleeves and brass lungs recommended.

Saving 30 units per cable (57% cost difference between copper and

aluminum+ cost increase due to addition of zinc alloysleeves .=30*50,000; =15 lakh units er ear

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Organizational Aspects of VAOrganizational Aspects of VAVA required top management support top managementVA required top management support top management

support.The VA also requires team work.The VAsupport.The VA also requires team work.The VAfunction can be organizationfunction can be organization its size, operations,its size, operations,productproduct--line etc.It can be administered by staff at theline etc.It can be administered by staff at thecorporate office or it may be run on decentralized basiscorporate office or it may be run on decentralized basisor a balanced combination of both. A decentralized andor a balanced combination of both. A decentralized andlocal VA group is accepted as a helpful service.This islocal VA group is accepted as a helpful service.This is

specially effective when manufacturing units are set upspecially effective when manufacturing units are set upon production line basis and are autonomous cost andon production line basis and are autonomous cost andprofit centers. VA however is not as firmly entrenchedprofit centers. VA however is not as firmly entrenchedas marketing, finance and other corporate functions.as marketing, finance and other corporate functions.There are frequent resistance problems to VA. ItsThere are frequent resistance problems to VA. Itsendorsement at the top level leads to acceptance at theendorsement at the top level leads to acceptance at the

lower levels. VA is also affected by the managementlower levels. VA is also affected by the managementlevel to which it reportslevel to which it reports-- it must be wide enough to coverit must be wide enough to coverall areas affecting the validity of the study, high enoughall areas affecting the validity of the study, high enoughto communicate with decisionto communicate with decision--making responsible formaking responsible forimplementation, powerful enough to communication withimplementation, powerful enough to communication withdecisiondecision--makers responsible for implementation,makers responsible for implementation,powerful enough to control and take responsibility forpowerful enough to control and take responsibility for

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data collection=====function, cost

function============furniturecost=========2000RS

worth=======chipper than iron just 450RS

creative phase========ideas to use fiber instead of iron

evaluation===========after analyzing different ideas fiberwas considered best

recommendation=======fiber is polymer plastic recycle and

made in just cost of 450 RS

saving===============1550 RS

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Benefits from value AnalysisBenefits from value Analysis

1.1. A Reduction in cost of existing productsA Reduction in cost of existing products

or system.or system.

2.2. Prevention of unnecessary cost in newPrevention of unnecessary cost in newproductproduct