Industrial Engineering

UNIT –II

Method study

Prepared By Prof. Shinde Vishal Vasant

Assistant Professor

Dept. of Mechanical Engg.

NDMVP’S Karmaveer Baburao Thakare

College of Engg. Nashik

Contact No- 8928461713

E mail:- shinde.vishal@kbtcoe.org

Website:- www.vishalshindeblog.wordpress.com

17/01/2017 1 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Work Study

• The systematic examination of the method of

carrying on activities so as to improve the

effective use of resources and to set up standards

of performance for the activities being carried out.

17/01/2017 2 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

• It is a generic term for those techniques, method study

and work measurement which are used in the

examination of human work in all its context. And

which lead systematically to the investigation of all the

factors which affect the efficiency and economy of the

situation being reviewed, in order to effect

improvement

OR

• It is that body of knowledge concerned with the

analysis of the work methods and the equipment used

in performing a job, the design of an optimum work

method and the standardization of proposed work

methods.

17/01/2017 3 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Work Study

• Work study has contributed immeasurably to the

search for better method, and the effective utilization

of this management tool has helped in the

accomplishment of higher productivity.

• Work study is a management tool to achieve higher

productivity in any organization whether

manufacturing tangible products or offering services

to its customers.

17/01/2017 4 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Work Study

• Method study

• It is the systematic recording & critical examination

of existing and proposed ways of doing work, as a

means of developing and applying easier and more

effective methods and reducing cost

• Work measurement / Time study

• It is the application of techniques designed to

establish the time for a qualified worker to carry out

a specified job at a defined level of performance

17/01/2017 5 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Objectives • To analyze the present method of doing a job,

systematically in order to develop a new and better method

• To measure the work content of a job by measuring the time required to do the job for a qualified worker and hence to establish standard time.

• To increase the productivity by ensuring the best possible use of human, machine and material resources and to achieve best quality product/ service at minimum possible cost

• To improve operational efficiency

17/01/2017 6 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Benefits of work study

• Increased productivity and operational efficiency

• Reduced manufacturing costs

• Improved work place layout

• Better manpower planning and capacity planning

• Fair wages to employees

• Better working conditions to employees

• Improved work flow

• Reduced material handling costs

17/01/2017 7 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Benefits of work study

• Provides a standard of performance to measure

labour efficiency

• Better industrial relations and employee

morale

• Basis for sound incentive scheme

• Provides better job satisfaction to employees

17/01/2017 8 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Scope of work study

17/01/2017 9 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Scope of work study

• Method study and work measurement are closely linked to each other as both are associated with work study.

• Method study reduces the content of job and work measurement investigates and reduces ineffective time associated with job with establishment of standard time.

• This results into efficient working operations leading to increase in productivity of that process

17/01/2017 10 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Work Study Procedure SELECT

RECORD

EXAMINE

DEVELOP

MEASURE

DEFINE

INSTALL

MAINTAIN

17/01/2017 11 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Work Study Procedure

17/01/2017 12 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

INFLUENCE OF METHOD & TIME STUDY IN

PRODUCTION ACIVITIES

17/01/2017 13 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Method study • Systematic recording and critical examination of

existing and proposed ways of doing work, as a means of developing and applying easier and more effective methods and reducing cost

• Work methods analysis or method study is a scientific technique of observing , recording and critically examining the present method of performing a task or operation with the aim of improving the present method and developing a new and cheaper method.

• It is also known as method improvement or work improvement.

17/01/2017 14 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

• Its aim is to find best possible manufacturing procedure

that requires least time and less fatigue to worker.

• Used to analyze

• Movement of body, people, or material

• Activities of people & machines

• Method study is a technique to reduce the work

content mainly by eliminating unnecessary

movements by workers, materials, or equipments.

17/01/2017 15 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Objectives of method study

• To study the existing proposed method of doing any

job, operation or activity

• To develop an improved method to improve

productivity and to reduce operating costs

• To reduce excessive material handling or movement

and thereby reduce fatigue to workmen

• To improve utilization of resources

• To eliminate wasteful and inefficient motions

• To standardize work methods or processes, working

conditions , machinery, equipments and tools.

17/01/2017 16 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Advantages of method study

• Work simplification

• Improved working method ( cheaper method)

• Better product quality

• Improved work place layout

• Improved equipment design

• Better working conditions

• Better material handling

• Improved work flow

17/01/2017 17 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Advantages of method study

• Less fatigue to the operator

• Optimum utilization of all resources

• Higher safety to work men

• Shorter production cycle time

• Higher job satisfaction

• Reduced material consumption and wastages

• Reduced manufacturing cost and higher productivity

17/01/2017 18 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Method Study Procedure

SELECT

RECORD

EXAMINE

DEVELOP

DEFINE

INSTALL

MAINTAIN

17/01/2017 19 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

• Procedure to accomplish method study, called "SREDIM" shall be as follow:

• Select: the job or operation that needs improvement,

• Record: all facts, how work is done by chart methods,

• Examine: every aspect of the job by asking; what, why, where, when, who and how

• Develop: review ideas, eliminate, simplify, combine, re-arrange, make new method which more safe, chart new method, submit for approval,

• Install: the new method, consider best time to introduce, convince all, train users,

• Maintain: check frequently, match results, correct deviations.

17/01/2017 20 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Method Study ( Steps)

• Select job/process to be examined & observe

current performance

• high process cost, bottlenecks, tortuous route, low productivity, erratic quality

• Record & document facts

• activities performed

• operators involved - how etc

• equipment and tools used

• materials processed or moved

• Apply critical examination - challenge job components & necessity (purpose, place, sequence, method).

• Develop alternative methods & present proposals

• Document as base for new work system

• Install, monitor (slippage) & maintain 17/01/2017 21 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Recording techniques

Recording techniques for Method Study

Charts

Macro Motion charts

1.Operations Process Chart

2.Flow Process Chart

3.Two Handed Process Chart

4.Multiplle Activity Chart

Micro Motion charts

SIMO Chart

Diagrams

1.Flow Diagram

2.String Diagram

17/01/2017 22 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Method Study Symbols

17/01/2017 23 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Process Chart Symbols

Indicates the main steps in a process, method or procedure.

Usually the part, material or product concerned is modified or

changed during the operation.

2.Inspection

Indicates an inspection for quality and / or check for quantity

1.Operation

3.Transport

Indicates the movement of workers, materials or equipment from place

to place

17/01/2017 24 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

4.Temporary Storage or Delay

Indicates a delay in the sequence of events : for example, work waiting

between consecutive operations, or any object laid aside temporarily without

record until required.

5.Permanent Storage

Indicates a controlled storage in which material is received into or issued

from a store under some form of authorization; or an item is retained for

reference purposes.

6.Combined Activities

Indicates a controlled storage in which material is received into or issued

from a store under some form of authorization; or an item is retained for

reference purposes.

17/01/2017 25 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

E

X

A

P

M

L

E

S

Figure:

Example

17/01/2017 26 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Process Charts Used In Method Study

Outline process chart:

An outline process chart records an overall picture of the

process and records only the main events sequence-wise. It

considers only the main operations and inspections.

Operation process chart:

The basic process chart, called an operation process chart, is

understood as a graphic representation of the points at which

the materials are introduced into the process and of the

sequence of inspections and all operations except those

involved in materials handling. It includes information

considered desirable for analysis such as time required to

carry out the operation and the location.

17/01/2017 27 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Flow process chart:

Flow process charts are graphic representations of the

sequences of all operations, transportation, inspections, delays,

delays and storages occurring during a process or a procedure

and include information considered for analysis such as, time

required and distance moved.

The flow process chart could be of two types namely,

(i) Flow process chart material or product type.

(ii) Flow process chart machine type or equipment.

Two handed process chart:

In this chart, the activities of a workers’ or operators’ both hands or limbs are recorded chronographically.

17/01/2017 28 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Multiple Activity Chart:

In this chart, the activities of more than one subject worker,

machine or equipment are recorded on a common time scale

to show their inter-relationship.

Flow diagram:

The flow diagram is a drawing or diagram drawn to a scale to

show the relative position of a machine or equipment, jigs and

fixtures, gangways or aisles and shows the path followed by

materials or machines.

String diagram:

It is scale plan or model on which a string or a thread is used

to trace and measure the path of workers, material or

equipments during a specified sequence of events.

17/01/2017 29 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

SIMO chart:

These indicate the basic motions consisting of three parts,

viz.,

(i) When the motion begins.

(ii) The nature of the motion.

(iii) When the motion ends.

The simultaneous motion cycle chart (SIMO) is a type of

two handed process chart in which the micro motions of

both hands are recorded.

17/01/2017 30 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

1.Operation Process Chart

• Also called Outline process chart

• Bird’s eye view of whole process

• Records only major activities and inspections

• Uses only two symbols i.e. operations & inspection

• Constructed by placing symbols one below another

• An operation process chart is a graphic representation of the

sequence of all operations and inspections taking place in a

process.

• Uses:-

• Visualize sequence of operations & inspections in process

• Know where operations selected fits into the entire process

17/01/2017 31 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Procedure Followed In Preparing The Chart

1. Write title at the top of the chart.

2. Begin the chart from the right hand side top

corner.

3. Represent the main component at the right

extreme.

4. Represent the sequence of operations and

inspections by their symbols. Connect them by

vertical flow lines.

5. Record the brief description of the activity to the

right side of the symbols.

17/01/2017 32 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

6. Note down the time for each activity to the left of the

symbol.

7. Number all operations in one serial order. Start from

the right hand top (from number 1).

8. Similarly number all inspections in another serial

order (starting from 1).

9. Continue numbering, till the entry of the second

component.

10. Show the entry of purchased parts by horizontal

lines.

17/01/2017 33 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Operation Process / Outline Process Chart:

example : manufacture of electric motor

17/01/2017 34 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

17/01/2017 35 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Outline Process Chart For Plywood Manufacture

17/01/2017 36 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Flow Process Chart • A flow process chart is a graphical representation of

the sequence of all the activities (operation,

inspection, transport, delay and storage) taking

place in a process.

• It is the detail version of outline process chart

recording all the event.

• Process chart symbols are used here to represent the

activities.

17/01/2017 37 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Guidelines For Making A Flow Process Chart

1. The details must be obtained by direct observation—charts must

not be based on memory.

2. All the facts must be correctly recorded.

3. No assumptions should be made.

4. Make it easy for future reference.

5. All charts must have the following details:

(a) Name of the product, material or equipment that is observed.

(b) Starting point and ending point.

(c) The location where the activities take place.

(d) The chart reference number, sheet number and number of

total sheets.

(e) Key to the symbols used must be stated.

17/01/2017 38 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Type of flow process charts

1. Man/ Worker type flow process chart

This flow process chart records what the worker does.

2. Material type flow process chart

This flow process chart records how the material is

handled or treated.

3. Equipment type flow process chart

This flow process chart records how the equipment or

machine is used.

17/01/2017 39 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Standard formats used for flow process chart

17/01/2017 40 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Example: Collection of materials from store (Man Type)

17/01/2017 41 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

17/01/2017 42 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Machine/ Equipment

Flow Process Chart:

17/01/2017 43 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Two-Handed Process Chart (or) Right Hand,

Left Hand Chart

• It is the process chart in which the activities of two

hands of the operator are recorded.

• Motions of both hands of worker are Right hand-Left

hand chart recorded independently.

• It shows whether the two hands of the operator are

idle or moving in relation to one another, in a

timescale.

• It is generally used for repetitive operations.

17/01/2017 44 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Two-Handed Process Chart (or) Right Hand,

Left Hand Chart

• Operation: Represents the activities grasp, position, use, release

etc. of a tool, component or material.

• Transport: Represents the movement of the hand or limb to or

from the work or a tool or material.

• Delay: Refers to the time when the hand or limb is idle.

• Storage (Hold): The term ‘hold’ is used here instead of storage.

This refers to the time when the work is held by hand.

• The activity ‘inspection’ by hand is considered as an operation.

Hence, the symbol for inspection is not used in this chart.

• Two-handed process chart can be used for assembly, machining

and clerical jobs.

17/01/2017 45 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

• The objective of this investigation is to eliminate or

reduce the unwanted motions and to arrange the

remaining motions in a best sequence.

• A two-handed process chart is made up of two columns in

which the activities of the left hand and right hand and the

appropriate symbols are respectively recorded in

sequence.

The activities of the two hands are inter-related by

aligning the symbols on the chart so that movements

by both hands appear opposite to each other.

Additional columns can be designed to record the

activities of the other parts of the body whenever

necessary.

17/01/2017 46 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

17/01/2017 47 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

LEFT HAND RIGHT HAND

Hold Letter

Reach for pen

Grasp pen

Carry pen to

paper

Sign letter

Return pen to

holder

Release pen in

holder

Move hand back

to letter

Task:- Signing a letter

17/01/2017 48 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

17/01/2017 49 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

•A Chart in which the activities of more than one item are

recorded on a common time scale to show their inter-

relationship.

•Man machine chart is the type of multiple activity charts.

•TYPES:

• Man - Machine chart: One man handling one job or

one machine.

• Man - Multi machine chart: One man handling a

numbers of machines.

• Machine Multi - man chart: A group or gang doing

collectively one job as in riveting.

• Multi – Man - Machine chart: A number of persons

working on a computer system.

Multiple activity chart

17/01/2017 50 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Multiple Activity Chart • In it, the activities of more than one item, worker,

machine or equipment are recorded on a common time

scale to show their inter relation ship.

• It is used when a worker operates a number of machines

at a time. It is also used when a number of workers jointly

do a job.

Why:

Multiple Activity Charts are very useful tool for understanding

the flow of work in a cyclic process and as a consequence

understanding which resource is controlling the overall progress of

the work.

The tool can be used to model different scenarios to determine the

optimum mix of resources for the work.

17/01/2017 51 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Purpose of Multiple Activity Chart

• To detect the idle time on machine and workers

• To optimize work distribution between workers

and machines.

• To decide no. of workers in a group.

• To balance the work team

• To examine the activities.

• It is used for recording the complex movements

of material or men.

• Used to find out the most economical route.

17/01/2017 52 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Application Of Multiple Activity Chart

• Plant repair & maintenance.

• Job construction.

• Planning team work.

• It is used to check whether the work

station is correctly located.

17/01/2017 53 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Time Operator Machine 1

Washer

Machine 2

Dryer

# Sec Load clothes & detergent in

machine 1

Being loaded Idle

idle Run Idle

- Remove clothes from machine 1

Being unloaded Idle

- Load clothes into machine 2 Idle Being loaded

- Load clothes & detergent into

machine 1

Being loaded Run

- Idle Run Run

- Remove clothes from machine 2 Idle Being unloaded

- Hang clothes Idle Idle

Multiple activity chart for doing three loads of laundry

17/01/2017 54 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

55

17/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Micro Motion Study

• Suggested by Frank Gilbreth.

• Technique for recording and timing an activity.

• Divides human activities in a group of movements or micro

motions (called therblings).

•Helps to find best pattern of movements for an operator that

consumes less time and requires less effort.

Steps involved

• Filming the operation to be studied.

• Analysis of the data from the film.

17/01/2017 56 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Use of films in micro motion study

Main advantages of films over visual methods are:

• Permit greater detailing than eye observation

• Provide greater accuracy than pencil, paper and stop watch

• More convenient

• Provide a positive record

• Help in the development of the work study person.

17/01/2017 57 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

• Based on the idea that human activity can be divided

into movements or group of movements (therbligs)

according to the purpose for which they are made.

• The therbligs cover movements or reasons for the

absence of movement.

• Each therblig has specific color, symbol and letter for

recording purposes.

• Therbligs refer primarily to motions of the human body

at the workplace and to the mental activities associated

with them.

17/01/2017 58 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

2. Movie Camera.

EQUIPMENT REQUIRED

1. 16 mm film. 3. wink counter.

Exposure meter. Motion picture projector with screen 17/01/2017 59 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

• It is dealing with the:

• Movement of man who is working, not

machine

• Study of micro motion of body parts and hands

• Gilbreth describe 18 motions known as

therblig.

Therblig-Gilbreth Chart

17/01/2017 60 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

17/01/2017 61 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Micro-motion Study Therbligs

Search (SH) – attempt to find an object using eyes or hand

Find (F) – mental reaction at end of search

Select (ST) – choose among several objects in a group

Grasp (G) – grasp an object

Hold (H) – hold an object

Transport loaded (TL) – move an object with hand and arm

Transport empty (TE) – reach for an object

Position (P) – position object in defined location

Assemble (A) – join two parts

Use (U) – manipulate a tool

Disassemble (DA) – separate multiple parts that were previously joined

Inspect (I) – determine quality of object

Pre-position (PP) – position object for next operation

Release load (RL) – release control of an object

Unavoidable delay (UD) – waiting due to factors beyond worker control

Avoidable delay (AD) – worker waiting

Plan (PN) – decide on an action

Rest (R) – resting to overcome fatigue 17/01/2017 62 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

17/01/2017 63 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

SIMO CHART • “SIMO” stands for simultaneous-Motion Cycle chart. It is

one of micro motion study devised by Gilbreth

• It presents graphically the separable steps of each pertinent

limb of the operator under study.

• It is an extremely detailed left and right hand operation

chart.

• It records simultaneously the different therbligs performed

by different parts of the body of one more operators on a

common time scale.

• The movements are recorded against time measured in

“Winks” (1 wink= 1/2000 minute). • These are recorded by a “Wink Counter” positioned in such

a location that it can be seen rotating during filming

process.

17/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 64

17/01/2017 65 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

66

SIMO chart format:

(SImultaneous MOtion cycle chart)

17/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Recording Techniques - Diagrams

67

Indicates the path of movement

Study of traffic & frequency over different routes of

plant

Identification of back-tracking & obstacles during

movements

Study of different layout plans & select optimal

layout

17/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Flow Diagram

1)Layout of w/p is drawn to scale

2)Relative positions of m/c tools, work benches, etc

are marked

3)Path followed by the subject under study is traced

by drawing lines

4)Each movement is serially numbered and

indicated by arrow for direction

5)Different colors are used to denote different types

of movements

17/01/2017 68 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

A flow diagram is essentially a flow process chart drawn to:

1. Show the layout of a facility.

2. Show the flow of work through that area

3. Show overcrowding areas, crossing worker paths, total travel.

4. Identify how layout can be redesigned to reduce travel, motion, collisions, etc.

5. Store materials near where they are used.

6. Increase efficiency and safety.

17/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 69

70

17/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

String Diagram

71

String/Thread is used to measure the distance

Records the pattern of movement of a worker

working within a limited area during a certain

period of time

Repetitive movements can be conveniently

traced

17/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

String Diagram 1)Layout of the w/p or factory is drawn to scale on a soft board

2)Pins are fixed into boards to mark the location of work

stations,

3)Pins are also driven at the turning point of the routes

4)A measured length of thread is taken to trace the movement

(path)

5)The distance covered by the object is obtained by measuring

the remaining part of the thread and subtracting it from the

original length

17/01/2017 72 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Applications

1) It is used for recording the complex movements of

material or men.

2)Back tracking, congestion, bottlenecks, under

utilized paths are easily found out.

3)It is used to check whether the work station is

correctly located.

4)Used to record irregular movements.

5) Used to find out the most economical route

17/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 73

17/01/2017 74 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

17/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 75

Value engineering and Value analysis

• Value analysis originated from second world war due

to the shortage of essential material.

• Lawrence D Miles was the first to develop the

technique and name it.

• Value Analysis is one of the major techniques of cost

reduction and control. It is a disciplined approach

which ensures the necessary functions for the

minimum cost without diminishing quality, reliability,

performance and appearance.

17/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 76

• According to Society of American Value Engineers

(SAVE) “Value analysis is the systematic application of recognized techniques which identify the function

of a product or services establish a monetary value

for the function and provide the necessary function

reliability at that lowest overall cost.”

• Value analysis is an organized approach to identify

unnecessary costs associated with any product,

material, part, component, system or service by

analysis of function and efficiently eliminating them

without impairing the quality functional reliability or

its capacity to give service.

17/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 77

• In the field of value investigation, value refers to

economic value, which itself can be sub-divided into four

types as cost value, exchange value, use value and esteem

value.

• “Cost Value” is the measure of sum of all costs incurred in producing the product. The ‘cost value’, therefore is the sum of raw-material cost, labour cost, tool cost and

overheads expended to produce the product.

• “Exchange Value” is the measure of all the properties, qualities and features of the product which make the

product possible of being traded for another product or

for money.

17/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 78

• “Use Value” is the measure of properties, qualities and features which make the product accomplish a

use, work or service.

• “Esteem Value” is the measure of properties, features, attractiveness graphic packaging and the like which

increases sales appeal or which attracts customers and

create in them a strong desire to own the product.

17/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 79

17/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 80

Value Engineering

• Value Engineering (VE) is defined as an organized effort

directed at analyzing the functions of systems, equipment,

facilities, services, and supplies for the purpose of achieving

the essential functions at the lowest life-cycle cost

consistent with required performance, quality, reliability

and safety.

• Value engineering (VE) is systematic method to improve

the "value" of goods or products and services by using an

examination of function.

• Value Engineering is an organizational creative approach

for the purpose of identifying of unnecessary cost.

• Unnecessary cost are that which provides neither quality,

nor use, not appearance, not life and customer features

17/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 81

When is VE used ?

• Value Engineering is used to determine the best design alternatives for Projects, Processes, Products, or Services

• Value Engineering is used to reduce cost on existing Projects, Processes, Products, or Services.

• Value Engineering is used to improve quality, increase reliability and availability, and customer satisfaction .

• Value Engineering is also used to improve organizational performance.

• Value Engineering is a powerful tool used to identify problems and develop recommended solutions.

17/01/2017 82 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

Six steps in value engineering

Information

Phase

Creativity

Phase

Evaluation

Phase

Planning

Phase

Reporting

Phase

Implementation

Phase

Clearly identify the problem(s) to be solved, and gather

information on the background, functions and

requirements of the product, process, or system.

Brainstorm ideas on how to improve the high cost,

broken, or inadequately performed key functions.

Screen ideas for acceptance, score remaining ideas on

a scale and group ideas into categories. Develop

design scenarios, and selection criteria. Rate and rank

ideas.

Plan how to sell ideas to management, identify key

recommendations, plan management presentation.

Give oral presentation to management, or develop

written report.

Get management approval, make management plan,

make assignments, implement, follow-up. 17/01/2017 83 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK

17/01/2017 PROF.V.V.SHINDE NDMVP'S KBTCOE NASHIK 84