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OPERATIONS MANAGEMENT
Name                      Roll No.   Ayush Dixit           2012005   Steffi Fernandes          2012022   Seema Popat   ...
Value Analysis1.   Cost reduction technique.2.   Organised creative approach.3.   Main focuses.4.   Birth – Second World W...
What is ValueThe minimummoney which hasto be expended inpurchasing ormanufacturing aproduct to createthe appropriateuse of...
Division Of Value1.   Use of functional Value.2.   Esteem Value.3.   Cost Value.4.   Exchange Value.
Advantages of Value Analysis   It leads to improvements in product design so that, most    appropriate products are produ...
Procedure of Value Analysis   There is no standard approach or procedure   Ascertaining the needs and wants of customers...
Implementation of ValueAnalysisIdentifying the function:-    Primary.    Secondary. Evaluation of the function by comp...
Value Analysis Steps1.   Gather Information.2.   Measure Performance.3.   Analyse Functions.4.   Generate Ideas.5.   Evalu...
Value Engineering   Value engineering is a total of management    which approaches the question of saving cost    from th...
Value Engineering                 Value and costValue = Function           Cost Value: What the product is worth to the c...
Value Engineering               Suggestion schemes   Suggestion scheme facilitates the work of    value engineering team....
Value Engineering              Requirement of a product   Use.   Esteem.      It is essential to be considered how much ...
Value Engineering Approach  No standard approach – discuss with teammembers.  Subject   Basic question    Analysis        ...
Value Engineering Approach Subject          Basic question                           Analysis                  Answer Labo...
Waste Control   Reasons for wastages in industry   Obsolescence   Surplus   Scrap   Role of Management in waste contr...
Input-Output Analysis   Systematic study of production structure.   Predict total production of each year.   Production...
Original   Information   Innovation   Evaluation   Choice   Implementation   ReviewPhase         Phase        Phase       ...
1. Product Design and        Development1.   Factors considered in product design :-       Customer’s requirement.      ...
1. Product Design and   Development2.   Design.3.   Planning.4.   Specialized function.5.   Visible in long run.
2. Application of Value   Engineering   Overall quality and performance.   Work together to reduce cost.   Latest devel...
3. Simplification of Product1.   Elimination of undesirable features.2.   The main purpose is to improve quality and to   ...
Value analysis and value engineering
Value analysis and value engineering
Value analysis and value engineering
Value analysis and value engineering
Value analysis and value engineering
Value analysis and value engineering
Value analysis and value engineering
Value analysis and value engineering
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Value analysis and value engineering

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Value analysis and value engineering

  1. 1. OPERATIONS MANAGEMENT
  2. 2. Name Roll No. Ayush Dixit 2012005 Steffi Fernandes 2012022 Seema Popat 2012068 Mukesh Singh Rajput 2012033
  3. 3. Value Analysis1. Cost reduction technique.2. Organised creative approach.3. Main focuses.4. Birth – Second World War.5. Recent years - • Value Engineering. • Molecular Engineering. • Vertical Thinking.
  4. 4. What is ValueThe minimummoney which hasto be expended inpurchasing ormanufacturing aproduct to createthe appropriateuse of esteemfactors.
  5. 5. Division Of Value1. Use of functional Value.2. Esteem Value.3. Cost Value.4. Exchange Value.
  6. 6. Advantages of Value Analysis It leads to improvements in product design so that, most appropriate products are produced . High quality (value) is maintained. All-round efficiency is achieved by eliminating waste of various types. Cost savings provide a measure for judging managerial effectiveness. New ideas are generated and incorporated. Teams spirit and morale are improved. Areas requiring attention and improvement are pin pointed.
  7. 7. Procedure of Value Analysis There is no standard approach or procedure Ascertaining the needs and wants of customers. Specifying the function of products and components. Determining the appropriate cost of desired performance. Identifying better alternatives in terms of works procedures.
  8. 8. Implementation of ValueAnalysisIdentifying the function:- Primary. Secondary. Evaluation of the function by comparison :-  Basic question  “does the function accomplish reliability at the best cost “ Develop Alternatives.
  9. 9. Value Analysis Steps1. Gather Information.2. Measure Performance.3. Analyse Functions.4. Generate Ideas.5. Evaluate and Rank Ideas.6. Develop and Expand Ideas.7. Present Ideas.
  10. 10. Value Engineering Value engineering is a total of management which approaches the question of saving cost from the point of view of ‘value’. Requires co-operation of all functional departments. In large organisations, there are value engineering teams having full time jobs.
  11. 11. Value Engineering Value and costValue = Function Cost Value: What the product is worth to the customer. Function: Properties and qualities of product. Cost: Money value of materials used, Labour & indirect costs.
  12. 12. Value Engineering Suggestion schemes Suggestion scheme facilitates the work of value engineering team. The scheme helps in the changes of value engineering and makes it implementation easier.
  13. 13. Value Engineering Requirement of a product Use. Esteem. It is essential to be considered how much tobe added in order to sell the part. The reasonable price of a product can beobtained by comparing with a comparative product.
  14. 14. Value Engineering Approach No standard approach – discuss with teammembers. Subject Basic question Analysis Answer Function What functions 1) Is there any possibility of elimination? are performed? 2) What alternative methods are available? Material What is the 1) Can alternative material be used? material 2) Can the specification be amended? specification? What quantity of 1) Is the size or weight of material material should excessive? be used? 2) Can the quality be reduced? 3) Will a cheaper material serve the same purpose? 4) Is the cutting done economically without waste?
  15. 15. Value Engineering Approach Subject Basic question Analysis Answer Labour Which are the 1) Are all the operations necessary? direct labour 2) Will alternative operations be cheaper? costs? 3) Can certain assembly operations be modified? Process Are the best 1) Are all the operations necessary? Processes being 2) Will alternative operations be cheaper? used? 3) Can certain assembly operations be modified? Standardizatio Are the materials 1) Can the materials be standardized? n or components 2) Can a number of product use standard standard? (common) parts? 3) Can methods be standardized?
  16. 16. Waste Control Reasons for wastages in industry Obsolescence Surplus Scrap Role of Management in waste control Proper inventory control Materials management Effective Co-ordination among departments
  17. 17. Input-Output Analysis Systematic study of production structure. Predict total production of each year. Production structure of all the industries are to be grouped together. Output material of 1 sector becomes input raw- materials for the other.
  18. 18. Original Information Innovation Evaluation Choice Implementation ReviewPhase Phase Phase Phase Phase Phase Phase
  19. 19. 1. Product Design and Development1. Factors considered in product design :-  Customer’s requirement.  Operator’s Convenience.  Types of materials.  Work methods and equipment.
  20. 20. 1. Product Design and Development2. Design.3. Planning.4. Specialized function.5. Visible in long run.
  21. 21. 2. Application of Value Engineering Overall quality and performance. Work together to reduce cost. Latest developments. Service function. Desired objective.
  22. 22. 3. Simplification of Product1. Elimination of undesirable features.2. The main purpose is to improve quality and to reduce unit costs.  Reduce cost and prices.  Reduction of undesirable materials.3. Benefits.

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