Name Roll No. Ayush Dixit 2012005 Steffi Fernandes 2012022 Seema Popat 2012068 Mukesh Singh Rajput 2012033
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.
What is ValueThe minimummoney which hasto be expended inpurchasing ormanufacturing aproduct to createthe appropriateuse of esteemfactors.
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 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.
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.
Implementation of ValueAnalysisIdentifying the function:- Primary. Secondary. Evaluation of the function by comparison :- Basic question “does the function accomplish reliability at the best cost “ Develop Alternatives.
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.
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.
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.
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.
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.
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?
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?
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
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.
Original Information Innovation Evaluation Choice Implementation ReviewPhase Phase Phase Phase Phase Phase Phase
1. Product Design and Development1. Factors considered in product design :- Customer’s requirement. Operator’s Convenience. Types of materials. Work methods and equipment.
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 developments. Service function. Desired objective.
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.