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Management Programme
ASSIGNMENT
SECOND SEMESTER
2012
MS-05: MANAGEMENT OF MACHINE & MATERIAS
S!"oo# o$ Management St%'e(
INDIRA GANDHI NATIONA OPEN )NI*ERSIT+
MAIDAN GARHI, NE DEHI . 110 0/
MS-05
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ASSIGNMENT
Co%r(e Coe : MS - 05
Co%r(e T't#e : Management o$ Ma!"'ne( an Mater'a#(
A(('gnment Coe : MS-05TMASEM - II 2012
Coerage : A## 3#o!4(
Note: Answer all the questions and send them to the Coordinator of the Study Centre
you are attached with.
1. Explain the concept of Systems Life-Cycle.
2. How should an orani!ation "alance the different desin characteristics in a new
product# Ela"orate.
$. %efine &o" %esin. Explain the important factors to "e considered for &o"
desinin.
'. Ela"orate your understandin a"out Areate (roduction (lannin.
). %efine *alue Enineerin and Analysis. +hat are the ,arious methods for *E
and *A# Explain one of these methods with an example.
. +rite short notes of the followin.
a Learnin Cur,e
" Acceptance Samplin
c Assem"ly Line /alancin
d 0aterial equirement (lannin
e Standardi!ation and *ariety eduction
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E6#a'n !on!e6t o$ #'$e !7!#e 'n o6erat'on(
management8
19 Intro%!t'on
E,ery orani!ation has an o"ecti,e or o"ecti,es and oals to achie,e. 3hese o"ecti,es
and oals achie,in can "e possi"le only when manaement orani!in the a,aila"lerecourses in a suita"le structure with a plan. 3he whole process of achie,in o"ecti,es
li4e plannin5 orani!in and implementation and correction process "y means of
feed"ac4 "rin toether "y operation manaement. 3he physical resources li4e space5machinery5 money and men who orani!e those physical will ta4e maor role in the
operation manaement.
29 '$e !7!#e !on!e6t
Life cycle concept is applied in operational manaement for any production system
which ta4es input and produces some out put "y usin some process. 3he productionsystem may "e mass production5 "atch production5 &o" shop production or unit
manufacture or proect. 3he different production system is applica"le to process of
production depends on the type of product we produce and the ,olume of the process weuse to produce the oods. 3he whole process of operation form "irth to death of a
production system can "e ,iewed as definite Life cycle.
3he life cycle concept of any product is similar to any life cycle of a li,in "ein.
3he maor staes in the life cycle concept are 1 %e,elopment 2 6ntroduction or /irth $7rowth ' 0aturity ) %ecline or %eath.
3he similar Life cycle concept we can apply to any product in production system. 3he
concept also shows the product life influenced "y the external en,ironment and o
throuh the ,arious staes in its life cycle. 3hrouh out the cycle the whole process ofoperation manaement is applied on the production system to maintain to sustain loner.
3he in e,ita"le situation due to the en,ironmental influences li4e people taste5 interest
there is always new "orn of other production system
8iure A1-1 (roduct Life Cycle Concept
3he life span of each stae of a product may ,ary from a few months to years. 8or anexample5 within no time some products reach rowth stae as soon as they were
introduced in the mar4et. 9ow we will discuss a"out each stae of the product life cycle.
291 Dee#o6ment
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3he de,elopment stae can "e a protracted stae and will in,ol,e acti,ities such as
desin5 plannin5 costin5 test mar4etin5 etc. 3he costs are hih5 with no earned re,enue.
(romotion for awareness may commence in ad,ance of introduction of the product to themar4etplace.
292 3'rt" or Intro%!t'on (tage;
3his is the stae where a product will "e introduced after initial decisions li4e selection5
technoloy selection5 location and layout desin of production facility after study of,arious aspects of "usiness unit in transpiration and raw material5 manpower resources
a,aila"ility etc. 3his is the stae we call it as /irth stae of the product.
29< Gro=t" (tage
After introducin the product the next stae for any product is loo4in for rowth. 3he
rowth is stae is ,ery critical in the operation manaement. 3he 4ey of success is lyin
in this stae. How we ta4e this product to people or how people will ha,e the feel ofnecessity of the product depends on the efficient mar4etin strateies of the manaement.
Sometimes the time ta4in to reach to rowth stae will "e faster "ecause of theuniqueness of its usae when compared with its competitor:s products. 0aor efforts are
required at this stae to push with all possi"le strateies in an ethical manner.
29> Mat%r't7 (tage
;nce the product is esta"lished5 the product life cycle enters into the maturity stae. Atthis stae orani!ation ta4es feed"ac4 from ,arious roups of users and impro,e the
product usa"ility with add on features and introduce different models without chanin
the "asic applications. 3his is the stae where "usinesses will "e exposed more to theexternal competiti,e mar4et which initiates the new comers with similar products wherethey will ta4e off the mar4et or share the mar4et which causes the oriinal product
"usiness orani!ation will o for further impro,ements or for a new product line.
Sustaina"ility of this stae depends on the factors li4e the manaement:s ,iews5 how fastthey reconi!e their product o"solesced and how fast new comers ta4es o,er the mar4et.
295 Deat" (tage9
As discussed a"o,e in maturity stae5 in case "usiness manaement could not predict the
impact of the new product rowth and lac4 of ta4in necessary chanes in the product
desin5 the product life cycle enters into the decline or death stae5 which leads to theorani!ation merin with new companies or liquidation or sale.
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desin and production. 3he initial cost may "e hiher at rowth stae5 "ut if we 4now that
the product sustains loner in the mar4et in future5 we should o ahead with considera"le
in,estments 4eepin the future mar4et in mind. 3he decision policy throuhout the lifecycle should "e maintained in the operational manaement of such "usiness opportunity.
>9 Con!#%('on
As we discussed in the a"o,e section5 any "usiness orani!ation will ha,e their product
life cycles. 3he operation manaement of the orani!ation should always 4eep watchinthe new trends of people:s taste or requirements5 the a,aila"le latest technoloy and
competitor:s new proposals so that necessary actions can "e ta4en in ad,ance to decrease
the rowth stae and increase the span of the maturity stae. 3he type of operationaldecisions and selection procedures all depends on the product of any orani!ation plans
to de,elop or introduce into the mar4et.
What is Job Design? Meaning
Job designmeans to decide the contents of a job. It fixes the duties and responsibilities of the job, the methods of doing the job and the
relationships between the job holder (manager) and his superiors, subordinates and colleagues.
Job design also gives information about the qualifications required for doing the job and the reward (financial and non-financial benefits) for
doing the job. Job design is mostl done for managers! jobs. "hile designing the job, the needs of the organisation and the needs of the
individual manager must be balanced. #eeds of the organisation include high productivit, qualit of wor$, etc. #eeds of individual
managers include job satisfaction. %hat is, the want the job to be interesting and challenging. Jobs must not be made highl specialised
because the lead to boredom.
Importance of Job Design
Job design is a ver important function of staffing.If the jobs are designed properl, then highl efficient managers will join the organisation.
%he will be motivated to improve the productivit and profitabilit of the organisation. &owever, if the jobs are designed badl, then it will
result in absenteeism, high labour turnover, conflicts, and other labour problems.
A well defined o" will ma4e the o" interestin and satisfyin for the employee. 3he result is
increased performance and producti,ity. 6f a o" fails to appear compellin or interestin and
http://kalyan-city.blogspot.com/2011/07/what-is-staffing-meaning-factors.htmlhttp://kalyan-city.blogspot.com/2011/07/what-is-staffing-meaning-factors.htmlhttp://kalyan-city.blogspot.com/2011/07/what-is-staffing-meaning-factors.html8/12/2019 MS - 05 - 2012
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leads to employee dissatisfaction5 it means the o" has to "e redesined "ased upon the
feed"ac4 from the employees.
/roadly spea4in the ,arious factors that affect a o" desin can classified under three heads.3hey are1@@) - ichard 0. /urton /Fre ;"el
>2??' - ichard D. %aft
>2??1 - alph Dilmann
>2??) - 3he 3ricord 0odel- %esinin oranisations from a +hole Systems
(erspecti,eB2
e'tB C"ara!ter'(t'!( o$ e$$e!t'e organ'?at'ona# e('gn
Some systems are effecti,e and efficient whereas others are not. Successful systems may"e attri"uta"le to the s4ill exercised in desinin the system or to the quality of
manaement practised durin operations5 or "oth. Successful systems are characteri!ed
"y their simplicity5 flexi"ility5 relia"ility5 economy5 and accepta"ility.B$Simplicity5flexi"ility5 and relia"ility tend to "e a function of desin5 whereas economy and
accepta"ility pertain to "oth desin and operations. 9umerous relationships exist amon
these characteristicsG for example5 simplicity will affect economy and possi"ly relia"ility.
0oreo,er5 manaement must reach a compromise "etween economy and relia"ility5 and"etween technical efficiency and orani!ational climate. 3he "alance reached will
determine whether short- or lon-run o"ecti,es are optimi!ed.
S'm6#'!'t7
An effecti,e orani!ational system need not "e complex. ;n the contrary5 simplicity indesin is an extremely desira"le quality. Consider the tas4 of communicatin information
a"out the operation of a system and the allocation of its inputs. 3he tas4 is not difficult
when components are few and the relationships amon them are straihtforward.Howe,er5 the pro"lems of communication multiply with each successi,e stae of
complexity.
3he proper method for maintainin simplicity is to use precise definitions and to outline
the specific tas4 for each su"system. 3otal systems often "ecome complex "ecause of thesheer si!e and nature of operations5 "ut effecti,eness and efficiency may still "e achie,ed
if each su"system maintains its simplicity.
F#e'@'#'t7
Conditions chane and manaers should "e prepared to adust operations accordinly.
3here are two ways to adust to a chanin operatin en,ironment< to desin new systems
or to modify operatin systems. An existin system should not "e modified toaccommodate a chane in o"ecti,es5 "ut e,ery system should "e sufficiently flexi"le to
interate chanes that may occur either in the en,ironment or in the nature of the inputs.8or example5 a company should not use the same system to "uild missiles as it uses to
"uild airplanes5 nor the same system to sell insurance as the one oriinally desined to
sell maa!ines. Howe,er5 it should "e possi"le to modify an existin system to producedifferent si!es5 ,arieties5 or types of the same product or ser,ice.
http://en.wikipedia.org/w/index.php?title=Organizational_Adaption_Model&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Raymond_E._Miles&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Raymond_E._Miles&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Charles_C._Snow&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Charles_C._Snow&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Richard_M._Burton&action=edit&redlink=1http://en.wikipedia.org/wiki/B%C3%B8rge_Obelhttp://en.wikipedia.org/w/index.php?title=Richard_K._Daft&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Ralph_Kilmann&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=The_Tricord_Model&action=edit&redlink=1http://en.wikipedia.org/wiki/Organizational_architecture#cite_note-1http://en.wikipedia.org/w/index.php?title=Organizational_architecture&action=edit§ion=3http://en.wikipedia.org/wiki/Organizational_architecture#cite_note-multiple-2http://en.wikipedia.org/w/index.php?title=Organizational_Adaption_Model&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Raymond_E._Miles&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Charles_C._Snow&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Richard_M._Burton&action=edit&redlink=1http://en.wikipedia.org/wiki/B%C3%B8rge_Obelhttp://en.wikipedia.org/w/index.php?title=Richard_K._Daft&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Ralph_Kilmann&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=The_Tricord_Model&action=edit&redlink=1http://en.wikipedia.org/wiki/Organizational_architecture#cite_note-1http://en.wikipedia.org/w/index.php?title=Organizational_architecture&action=edit§ion=3http://en.wikipedia.org/wiki/Organizational_architecture#cite_note-multiple-28/12/2019 MS - 05 - 2012
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A practical system must "e well desined "ut it cannot "e entirely riid. 3here will
always "e minor ,ariations from the eneral plan5 and a system should "e a"le to adapt to
such chanes without excessi,e confusion. 3he ad,antaes associated with ha,in aflexi"le system will "ecome more apparent when we consider the difficulty of
administerin chane.
Re#'a@'#'t7
System relia"ility is an important factor in orani!ations. elia"ility is the consistencywith which operations are maintained5 and may ,ary from !ero output >a complete
"rea4down or wor4 stoppae to a constant or predicta"le output. 3he typical system
operates somewhere "etween these two extremes. 3he characteristics of relia"ility can "edesined into the system "y carefully selectin and arranin the operatin componentsG
the system is no more relia"le than its wea4est sement. +hen the requirements for a
particular component such as an operator ha,in unique s4ills are critical5 it may "e
worthwhile to maintain a stand"y operator. 6n all situations5 pro,isions should "e made
for quic4 repair or replacement when failure occurs. ;ne ,alid approach to the relia"ility-maintenance relationship is to use a form of construction that permits repair "y replacin
a complete unit. 6n some tele,ision sets5 for example5 it is common practice to replace anentire section of the networ4 rather than try to find the faulty component. elia"ility is
not as critical an issue when prompt repair and reco,ery can "e instituted.
E!onom7
An effecti,e system is not necessarily an economical >efficient system. 8or example5 the
postal ser,ice may 4eep on schedule with mail deli,eries "ut only "y hirin a larenum"er of additional wor4ers. 6n this case5 the efficiency of the postal system would "e
reduced. 6n another example5 in,entories may "e controlled "y usin a comprehensi,esystem of store4eepin. Howe,er5 if the cost of the store4eepin were reater than thepotential sa,ins from this deree of control5 the system would not "e efficient. 6t is often
dysfunctional and expensi,e to de,elop much reater capacity for one sement of a
system than for some other part. /uildin in redundancy or pro,idin for e,ery
continency usually neutrali!es the operatin efficiency of the system. +hen a system:so"ecti,es include achie,in a particular tas4 at the lowest possi"le cost5 there must "e
some deree of trade-off "etween effecti,eness and efficiency. +hen a system:s o"ecti,e
is to perform a certain mission reardless of cost5 there can "e no trade-off.
A!!e6ta@'#'t7
Any system5 no matter how well desined5 will not function properly unless it is accepted
"y the people who operate it. 6f the participants do not "elie,e it will "enefit them5 are
opposed to it5 are pressured into usin it5 or thin4 it is not a ood system5 it will not wor4properly. 6f a system is not accepted5 two thins can happen1 the system will "e
modified radually "y the people who are usin it5 or >2 the system will "e used
ineffecti,ely and ultimately fail. Inplanned alterations in an ela"orate system can nullifyad,antaes associated with usin the system.
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e'tB D'$$erent'at'on an Integrat'on
A "asic consideration in the desin of orani!ationsis di,idin wor4 into reasona"le
tas4s >differentiation while i,in simultaneous attention to coordinatin these acti,itiesand unifyin their results into a meaninful whole >interation. 3wo uidelines may "e
followed in roupin acti,ities3he common manaer can coordinate them throuh the formal hierarchy.B'
+hen units neither ha,e similar orientationsnor share their acti,ities5 the tas4 of
roupin "ecomes more difficult. 8or example5 when units are similar in nature and
function "ut are also relati,ely independent5 the manaermust "ase his decision on the
most appropriate way to roup acti,ities accordin to his past experience.B'
A difficult tas4 associated with system-su"system determination is to esta"lish proper
"oundaries of operations. 3he more specific and distinct the oals of the operation5 the
easier it is to set "oundaries. ;ther factors such as the influence of the en,ironment5 the
a,aila"ility of men and machines5 the time schedule for desinand operation5the costofalternati,e desins5 and the particular "iases of the desiners must "e considered when
esta"lishin "oundaries.B'
e'tB T"e ro#e o$ management
%esinerswith imaination ha,e the "est chance to roup people and machines intowor4a"le com"inations ha,in the reatest efficiency and effecti,eness within the
reconi!ed constraints. Certain characteristics should "e desined into an effecti,e and
efficient system simplicity5 flexi"ility5 relia"ility5 economy5 and accepta"ility.B)
At this point5 the desiner must determine what has to "e done to achie,e the stated
o"ecti,e>s and how the total tas4 can "e di,ided into meaninful units. ;f the many
possi"le com"inations5 one must "e selected as that which satisfies the decision criteria
"etter than the other alternati,es. ;f course5 the "alance "etween technical efficiency andthe human factors that determine orani!ational climate should "e included in ma4in
this decision. 3he e,entual success or failure of the proect is somewhat predetermined "ymanaement:s attitude and the relationship "etween the desiners and those who mustimplement the process.B)
3he systems approachsuests a new role for manaement. 6n the traditional ,iew5 the
manaer operated in a hihly structured5 riid system ha,in well-defined oals5 clear-cut
relationships5 tiht controls5 and hierarchical information flows. 6n the flexi"le >or opensystems ,iew5 the orani!ationis not static "ut is continually e,ol,in to meet "oth
http://en.wikipedia.org/w/index.php?title=Organizational_architecture&action=edit§ion=4http://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Organizational_architecture#cite_note-Lawrence_Lorsch-3http://en.wikipedia.org/wiki/Orientationhttp://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Organizational_architecture#cite_note-Lawrence_Lorsch-3http://en.wikipedia.org/wiki/Designhttp://en.wikipedia.org/wiki/Business_operationshttp://en.wikipedia.org/wiki/Business_operationshttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Organizational_architecture#cite_note-Lawrence_Lorsch-3http://en.wikipedia.org/w/index.php?title=Organizational_architecture&action=edit§ion=5http://en.wikipedia.org/wiki/Designerhttp://en.wikipedia.org/wiki/Organizational_architecture#cite_note-Johnson1-4http://en.wikipedia.org/wiki/Organizational_architecture#cite_note-Johnson1-4http://en.wikipedia.org/wiki/Systems_approachhttp://en.wikipedia.org/wiki/Goalhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/w/index.php?title=Organizational_architecture&action=edit§ion=4http://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Organizational_architecture#cite_note-Lawrence_Lorsch-3http://en.wikipedia.org/wiki/Orientationhttp://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Organizational_architecture#cite_note-Lawrence_Lorsch-3http://en.wikipedia.org/wiki/Designhttp://en.wikipedia.org/wiki/Business_operationshttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Organizational_architecture#cite_note-Lawrence_Lorsch-3http://en.wikipedia.org/w/index.php?title=Organizational_architecture&action=edit§ion=5http://en.wikipedia.org/wiki/Designerhttp://en.wikipedia.org/wiki/Organizational_architecture#cite_note-Johnson1-4http://en.wikipedia.org/wiki/Organizational_architecture#cite_note-Johnson1-4http://en.wikipedia.org/wiki/Systems_approachhttp://en.wikipedia.org/wiki/Goalhttp://en.wikipedia.org/wiki/Organization8/12/2019 MS - 05 - 2012
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external and internal chanes. 3he manaer:s role is to de,elop a ,ia"le orani!ation5
cope with chane5 and help participants esta"lish a dynamic equili"rium. Leonard Sayles
has expressed the manaer:s pro"lem as follows>> :>> > ?>> >> =>>
%eleant Costs:
6egular production cost @>5unit
Inventor carring costs @>5unit5month
3ubcontracting costs @=>5unit
&iring costs @>5wor$er
9iring costs @>>>5wor$er
8eginning wor$force level :> wor$ers
apacit per wor$er units5month
Initial inventor level A>> units
losing inventor level >> units
L"&"L P%'D(C)I'* #)%A)"+,
9ind the requirements for the period of the plan and produce theaverage amount needed per month to meet the plan.
9irst determine the average requirements per month2
'vg. requirements B total re-!irements . opening in/ 0 closing in/
number of periods
'vg. requirements B (?>>> - A>> C >>)5= B ;>> units5period
3teps2
1. Dnter the production data2. etermine hire5fire to get to production level desired$. 4pdate inventor levels
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'. oes the inventor run out - If it does recalculate average productionneeded and go to step
). alculate totals for each categor. alculate costs
L"&"L #)%A)"+,
Period 1 2 3 4 5 6)otal
%e-/ 1777 1277 1577 1877 1977 1677 8777
Prod/
In/;77ire
#!b/
osts2
1. 6egular production costs22. Inventor carring costs2$. &iring osts2
%1%'/ 13%32 EEEEEEEEE
C=A#" #)%A)"+,
0roduce exactl what is required ever period. &ire and fire to adjust monthl production to monthl requirements. %he first and last period production levels are adjusted to account for
opening inventor and closing inventor requirements.
Period 1 2 3 4 5 6)otal
%e-/ 1777 1277 1577 1877 1977 1677 8777
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Prod/
In/;77ire
#!b/
Costs:
. 6egular production costs2:. Inventor carring costs2. &iring osts2;. 9iring osts2
%1%'/ 13%3 2 EEEEEEEEEEEEE
Int!itie Mixed< #trategy
- %rial and Drror to find a good solution
- 4se Dxcel to model the problem and test the impact of different solutions
- 8uild the model using proper structure with $e variables at the top and a
summar of $e results immediatel below.
>inding 'ptimal #ol!tions (sing Linear Programming
- 'ggregate planning problems can be solved optimall using linear programming(/0).
- Fiven the constraints on requirements, production capabilities, allowedwor$force changes, overtime and subcontracting limits plus all relevant costs /0will find an optimal solution to the problem which minimi+es total costs.
.*a#%e eng'neer'ng*a#%e eng'neer'ng>*E is a systematic method to impro,e the ,alue of oods orproducts and ser,ices "y usin an examination of function. *alue5 as defined5 is the ratio
of function to cost. *alue can therefore "e increased "y either impro,in the function or
reducin the cost. 6t is a primary tenet of ,alue enineerin that "asic functions "epreser,ed and not "e reduced as a consequence of pursuin ,alue impro,ements.B1
http://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Value_engineering#cite_note-0http://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Value_engineering#cite_note-08/12/2019 MS - 05 - 2012
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*E follows a structured thouht process that is "ased exclusi,ely on function5 i.e. what
somethin does not what it is.
*alue enineerin is also referred to as ,alue manaement or ,alue methodoloy>*05 and ,alue analysis >*A.B'*E is a"o,e all a structured pro"lem sol,in process
"ased on function analysisunderstandin somethin with such clarity that it can "edescri"ed in two words5 the acti,e ,er" and measura"le noun a"ridement. 8or example5
the function of a pencil is to ma4e mar4s. 3his then facilitates considerin what elsecan ma4e mar4s. 8rom a spray can5 lipstic45 a diamond on lass to a stic4 in the sand5 one
can then clearly decide upon which alternati,e solution is most appropriate.
e'tB T"e o@ P#an
*alue enineerin is often done "y systematically followin a multi-stae o" plan. Larry
0iles: oriinal system was a six-step procedure which he called the ,alue analysis o"
plan. ;thers ha,e ,aried the o" plan to fit their constraints. %ependin on the
application5 there may "e four5 fi,e5 six5 or more staes. ;ne modern ,ersion has thefollowin eiht steps6n ,alue analysis ,alue is not ust another word for costma4e permanent mar4s +hat is the main function# >ma4e mar4s5 write lines
+hat is the method5 material or procedure that was used to reali!e the main
function# >a raphite stic4 and wood
+hat are the correspondin secondary functions# >transfer raphite to paper and
facilitate holdin the raphite
+hat does the item cost and how can we distri"ute the cost of reali!in the main
function into each secondary function#
Comparin these costs to an item of a similar function5 how much should each
function and the total cost#
>3his example5 the pencil5 is already a hih ,alue item.
. +HA3 6S *ALIE A9ALOS6S A9% *ALIE E9769EE697# *A = *E is
an orderly and creati,e method to increase the ,alue of an item. 3his
quotGitemquotG can "e a product5 a system5 a process5 a procedure5 a plan5 amachine5 equipment 5 tool5 a ser,ice or a method of wor4in. *alue Analysis =
*alue Enineerin is defined as :the professionally applied5 team "ased5 function -
oriented5 systematic application of reconi!ed techniques >function analysiswhich 6dentify the quotGfunction of a product5 process5 proect5 facility desin5
system or ser,ice5 Esta"lish a monetary ,alue for that function5 (ro,ide thenecessary function >defined "y the customer to meet his = her requirements5Consistent with the specified performance and relia"ility needed at the lowest 6ife
cycle cost >cost o,er the expected life. And thus 6ncreases customer satisfaction
and adds ,alue to the in,estment.
@. +HA3 6S *ALIE A9ALOS6S A9% *ALIE E9769EE697# *alue
analysis in,ol,es identifyin product function >s relatin to cost and price
analysin the desin and construction with an eye for eliminatin elements not
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contri"utin to function. Some desiners thin4 *A undermines ood desin. 6f the
desin was sound the start *A is redundant. Oet desins and technoloy chane.
Sound5 inno,ati,e desins ae and "ecome uncompetiti,e - ri,als catch up.emem"er car windscreens are today lued into place "y ro"ots >adhesi,e
technoloy.
1?. 3HE *ALIE EPIA36;9 *alue analysis is e,aluates a product utility5esteem and mar4et ,alues5 each of which are defined "elow < Itility ,alue Q how
useful = functional the product is seen to "e. Esteem ,alue Q the ,alue that
customer = user i,es to product attri"utes5 not directly contri"utin to utility "utmore relatin to aesthetic and su"ecti,e ,alue. Esteem issues and functionality
should not "e o,erloo4ed or compromised. 0ar4et ,alue Q what mar4et is
prepared to pay for the product. 0ar4et ,alue N Itility ,alue R Esteem ,alue
119 O3ECTI*ES OF *A T"e *A *E o@e!t'e( '( to $'n an 'm6roe on a#%e
m'(mat!"e( 'n 6ro%!t(, 6ro!e((e( an !a6'ta# 6roe!t(9 F'n 'm6ortant $%n!t'on( . e$'ne
ne!e((ar7 er(%( %n - ne!e((ar7 $%n!t'on( F'n an 'm6roe on #o= 6er$orm'ng $%n!t'on(9
De$'ne an (egregate t"e ne!e((ar7 $%n!t'on( $rom t"e %nne!e((ar7 $%n!t'on( an t"ere@7
!reat'e#7 ee#o6 a#ternat'e mean( o$ a!!om6#'("'ng t"e ne!e((ar7 $%n!t'on( at #o=er tota##'$e !7!#e; !o(t9
FAST TECHNI)E
As 6 wrote in 6ntroduction to methodoloy5 the 8AS3method or the 8unction Analysis
System 3echnique5 is a method used "y the enineer to transform the product ser,icesfunctions to technical functions. 3he method proposes an interroati,e approach to find
solution "y findin responses to the famous questions What?When?and How?. 6n the
present article5 6ll try to explain the concept of 8AS3.
&rinciple
6t is an other functional anlysis method that helps to descri"e and to interpret complex
systems. 6t starts "y a principal function that will "e decomposed to component functions5
that can "e also decomposed to elementary functions. 3he analysis o from the 0ore
7eneral >07 to the 0ore %etailed >0%. 6t adapts an interroati,e approachHow#
8rom 0% to 07 < it helps to ustify the choice used to construct the solution.
>+hy#
raphical construction
3he method has a raphical representation. 3o represent a function we use a rectanlecontainin a ,er" descri"in the function. 3he flow of information is an arrow5 it can "e