This Presentation Is About Value Engineering & It Covers Following Topics ;
1. Concept Of Value Engineering
2. History Of Value Engineering
3. Aims/Purposes/Objectives Of Value Engineering
4. Steps/Phases/Procedures Of Value Engineering
3. Value Engineering:
It is method of improving value of product that project produces.
It applies to everything because every project has function.
Mostly , it takes place after the completion of design process.
Value is calculated as ratio of function to cost.
Value = Worth/Cost = Function ( Utility ) / Cost
4. History:
The concept of value engineering started in 1940 at General Electric
CO.
This was during second world war , when there was shortage of
materials & skilled labor.
Therefore Lawrence Miles , Harry Erlicher , Jerry Leftow & other
engineers launched effort to make concept systematic.
A process which not only reduced cost of production but also
provided better performance is known as value analysis.
Name was suggested by engineers.
6. Job Plan:
Value engineering is often done by following steps;
Lawrence Miles original system was based on 6 step procedure ,
which he called value analysis job plan.
Modern Version has 8 steps.
These are discussed as;
7. 1. Orientation Phase:
Identify issues.
Arrange issues.
Draft scope & objectives.
Establish evaluation factor.
Determine study team.
Collect data.
Prepare for value study.
8. 2. Information Phase:
All team members participate in determining true needs of project.
Areas of high cost or low worth are identified.
3. Functional Phase:
Functional analysis outlines the basic function of product using noun
& verb.
e.g boil water as in case of battle where boil is verb & water is noun.
9. 4. Creative Phase:
This step requires certain amount of creative thinking by team.
A technique that is useful for this type of analysis is brainstorming.
This stage is concerned with developing alternative.
5. Evaluation Phase:
In this step , value analysis team judge ideas created/developed
during construction phase.
The value analysis team ranks the ideas.
Ideas that represent greatest potential for cost saving &
improvements are selected for development where as irrelevant ideas
are disregarded.
10. 6. Development Phase:
The team develops selected ideas in to proposal with sufficient level
of documentation to allow decision makers to determine if proposal
should be implemented.
7. Presentation Phase:
This phase is actually presenting best alternative to those who have
authority to implement the proposed solutions that are acceptable.
11. 8. Implementation & Follow Up Phase:
I. Develop an implementation plan.
II. Execute plan.
III. Monitor plan to completion.
During this phase , management must assure that approved
recommendations are converted in to actions.