This document discusses value analysis and value engineering techniques. It provides information on value analysis procedures and steps. Key aspects covered include defining value, dividing value into different types, advantages of value analysis, and the implementation process. Value engineering is presented as a management approach to saving costs from a value perspective.
Value Management concentrates on the actual needs of the user to focus its resources. It is different to cost-cutting exercises, which achieve economies by using less or cheaper materials.
The Value Management approach involves the use of creative techniques, combined with the latest technical information on materials and construction methods.
Value Engineering is a technique for determining the manufacturing requirements of a
product/service; it is concerned with its evaluation and finally the selection of less costly
conditions. VE is a process for achieving the optimal result in a way that quality, safety, reliability
and convertibility of every monetary unit are improved.
Here theory of Value Engineering along with case study of UTM is presented.
Value Management concentrates on the actual needs of the user to focus its resources. It is different to cost-cutting exercises, which achieve economies by using less or cheaper materials.
The Value Management approach involves the use of creative techniques, combined with the latest technical information on materials and construction methods.
Value Engineering is a technique for determining the manufacturing requirements of a
product/service; it is concerned with its evaluation and finally the selection of less costly
conditions. VE is a process for achieving the optimal result in a way that quality, safety, reliability
and convertibility of every monetary unit are improved.
Here theory of Value Engineering along with case study of UTM is presented.
Value Analysis (VA) is a tool (technique or method) that is used for improving the value of a product or a process of understanding its constituent components and their associated costs. It aims at finding improvements to the components by reducing their cost and increasing the value of the functions of a product or a service.
A critical advantage to using a VA is its potential for reducing costs, which is a benefit that permeates all advantages of the system.
A VA breaks-down a product or service into components, it enables you to analyze each component on its own, evaluating its features and functions in detail efficiency and effectiveness.
A Framework for Synergy, Collaboration, Exploration, Creativity, Discovery & Innovation. A Team activity to balance need, function & cost.
bsauter@workbench20.com
www.workbench20.com
This presentation is about Value Engineering and contains:
1.History of VE
2.Value Concept
3.What is Value Engineering?
4.Implementation of VE in our project
5.Principle and Purpose of VE
6.Case Study
7.Conclusion
Practical Application of Value Engineering in Capital ProjectsPMA Consultants
One of the significant challenges owners, designers, and contractors face is the proper application of value engineering on their projects. This presentation provides an overview of the value engineering job plan, function analysis system technique and discusses a case study so participants can apply value engineering to their projects.
This presentation is about Value Engineering and contains:
1.History of VE
2.Value Concept
3.What is Value Engineering?
4.Implementation of VE in our project
5.Principle and Purpose of VE
6.Case Study
7.Conclusion
Value Analysis (VA) is a tool (technique or method) that is used for improving the value of a product or a process of understanding its constituent components and their associated costs. It aims at finding improvements to the components by reducing their cost and increasing the value of the functions of a product or a service.
A critical advantage to using a VA is its potential for reducing costs, which is a benefit that permeates all advantages of the system.
A VA breaks-down a product or service into components, it enables you to analyze each component on its own, evaluating its features and functions in detail efficiency and effectiveness.
A Framework for Synergy, Collaboration, Exploration, Creativity, Discovery & Innovation. A Team activity to balance need, function & cost.
bsauter@workbench20.com
www.workbench20.com
This presentation is about Value Engineering and contains:
1.History of VE
2.Value Concept
3.What is Value Engineering?
4.Implementation of VE in our project
5.Principle and Purpose of VE
6.Case Study
7.Conclusion
Practical Application of Value Engineering in Capital ProjectsPMA Consultants
One of the significant challenges owners, designers, and contractors face is the proper application of value engineering on their projects. This presentation provides an overview of the value engineering job plan, function analysis system technique and discusses a case study so participants can apply value engineering to their projects.
This presentation is about Value Engineering and contains:
1.History of VE
2.Value Concept
3.What is Value Engineering?
4.Implementation of VE in our project
5.Principle and Purpose of VE
6.Case Study
7.Conclusion
Chapter 3 JIT, Value Added and Waste .docxadkinspaige22
Chapter 3: JIT, Value Added and Waste
Elimination
Part1- What is Just-In-Time (JIT)?
Continuous Improvement is a basic and important concept in modern manufacturing,
and it is a cornerstone of JIT and TOM. However, it is a very general and open-
ended concept. Another important element of the modern manufacturing and service
operations is the concept of VALUE_ADDED
Just-in-time (JIT) is an approach to manufacturing which aims to increase “value-
add” activity and eliminate waste by providing the environment to simplify and
perfect processes within an organization. Just-in-time manufacturing means
producing the necessary items, in the required quantities at the appropriate time.
JIT can deliver significant improvements in operating efficiency. Having raw
materials arrive at a manufacturing facility, just in time to enter the production
process allows an organization to minimize the amount of inventory it must hold
and store. It also minimizes the potential cost of obsolescence, which can arise due
to change in product specifications, customer demands, etc..
Putting the JIT concept into practice means a reversal of traditional thinking with
regard to managing a manufacturing process flow. In conventional production
processes, units are transported to the next production stage as soon as they are
ready. In JIT, each stage in the production process looks back to the previous stage
to pick up the exact number of units needed. Product (and services) are pulled
through the process driven by demand from customers, rather than the traditional
approach where product and services are pushed forward based on planned
schedules.
A)-The benefits associated with Just In Time Manufacturing
While the prevailing view of JIT is that of an inventory control system, it is much
more. JIT is an operational philosophy which can deliver a broad range of benefits.
Examples of the benefits associated with implementing a JIT process:
– The production of high quality, high reliability products that customers want,
resulting is satisfied and loyal customers.
– The delivery of products which match the rate that the customers require.
– Optimized manufacturing process lead-times.
– Minimized and eliminated waste of labor, material and equipment.
– All activity having a defined purpose towards meeting customer needs.
– Continuous reductions in process and equipment set-up and change-over times.
– The elimination of unnecessary inventory and improved inventory management
and control.
– Continuous reductions in supplier lead times.
– Ongoing significant improvements in organizational productivity and efficiency.
B)-IS JIT applicable only to Manufacturing?
The concepts of Just In Time are applied to all value creating organizations. While
JIT originated in .
2. Name Roll No.
Ayush Dixit 2012005
Steffi Fernandes 2012022
Seema Popat 2012068
Mukesh Singh Rajput 2012033
3.
4. Value Analysis
1. Cost reduction technique.
2. Organised creative approach.
3. Main focuses.
4. Birth – Second World War.
5. Recent years -
• Value Engineering.
• Molecular Engineering.
• Vertical Thinking.
5. What is Value
The minimum
money which has
to be expended in
purchasing or
manufacturing a
product to create
the appropriate
use of esteem
factors.
6. Division Of Value
1. Use of functional Value.
2. Esteem Value.
3. Cost Value.
4. Exchange Value.
7. 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.
8. 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.
9. Implementation of Value
Analysis
Identifying the function:-
Primary.
Secondary.
Evaluation of the function by comparison :-
Basic question
“does the function accomplish reliability at the best cost “
Develop Alternatives.
10. Value Analysis Steps
1. Gather Information.
2. Measure Performance.
3. Analyse Functions.
4. Generate Ideas.
5. Evaluate and Rank Ideas.
6. Develop and Expand Ideas.
7. Present Ideas.
11.
12. 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.
13. Value Engineering
Value and cost
Value = 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.
14. 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.
15. Value Engineering
Requirement of a product
Use.
Esteem.
It is essential to be considered how much to
be added in order to sell the part.
The reasonable price of a product can be
obtained by comparing with a comparative product.
16.
17. Value Engineering Approach
No standard approach – discuss with team
members.
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?
18. 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?
19. 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
20. 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.
21.
22.
23. Original Information Innovation Evaluation Choice Implementation Review
Phase Phase Phase Phase Phase Phase Phase
24.
25. 1. Product Design and
Development
1. Factors considered in product design :-
Customer’s requirement.
Operator’s Convenience.
Types of materials.
Work methods and equipment.
26. 1. Product Design and
Development
2. Design.
3. Planning.
4. Specialized function.
5. Visible in long run.
27. 2. Application of Value
Engineering
Overall quality and performance.
Work together to reduce cost.
Latest developments.
Service function.
Desired objective.
28. 3. Simplification of Product
1. 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.