Value analysis and value engineering aim to identify the essential functions of a product and provide them at the lowest total cost. This is done through a team-based process that examines all aspects of a product and explores all alternative designs and materials. The goal is to determine if a product's cost is reasonable relative to its usefulness, if a lower-cost design could work as well, and if less expensive materials could be used without compromising quality or function. Savings are achieved through substituting cheaper materials and standardizing components where possible. The process also seeks to optimize product design, manufacturing processes, material usage, and reduce scrap.

1. VALUE ANALYSIS AND VALUE ENGINEERING
1. Comparison :-
Value analysis a systematic application of established techniques to identify the functions of
a product or component and to provide the desired functions at the lowest total Cost. It a
team job requiring lot of discussions and deliberations. The product is considered from all
angles and all possible alternative are explored.
2. Questions asked under value analysis :-
The main questions asked under value analysis are :
Is the Cost vis-a-vis the usefulness of the product reasonable?
Can lower cost design works as well?
Can another less costly item fill the need?
Will loss expensive material do the job?
Does the function contribute value?
Are the features reasonable?
Can Scrap he reduced by changing the design Or material'?
Is there an alternative product/process design which is less expensive?
3. Saving Through Value Analysis:-
Some examples of savings through value analysis are as follows:
Use of new and cheaper materials in place of traditional materials.
Discarding tailored products where standard components can do the job.
Dispensing product features not required by customers doing away with headphone
in a radio set.
Value analysis seeks to develop most favorable product design, process design,
material usage and material mix, scrap content etc.
4. Saving Through Value Analysis :-
Some examples of savings through value analysis as follows:
Use of new and cheaper materials in place of traditional materials.
Discarding tailored products where standard Components can do the job.
Dispensing product features not required by customers e.g. doing away with
headphone in a radio set.

2. Value analysis seeks to develop most favorable product design, process design,
material usage, material mix, scrap content etc.
5. Procedures in Value Analysis :-
There is no standard procedure for value analysis. The stage involved in value analysis
consists of the following.
Ascertaining the needs and wants of customers.
Specifying the functions of products and components.
Determining the appropriate Cost for desired performance. The appropriate for a
particular purpose is the basis of value.
Identifying better alternatives in terms of work procedures work design, product
usage etc.
Comparisons the utility and appearance of the product with those or a competitive
produce and this should be done in details determine whether the use and esteem
function areproperly balanced and the customer is getting his money's worth.
After above comparisons possibilities of substituting its material, parts, process etc.
are analyzed to developbetter alternative.
Thus a product or service is said to have good value if it can give desired performance ta
reasonable cost. For example, the value of brakes ina motor car is very high. Value may
change by Changing either the cost or performance of the product or both.
6. Advantages of value Analysis:-
Value Analysis is a very useful technique. It results in lower costs, lower prices, higher sales
and more profits. In addition to cost reduction, it serves the following purposes.
 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.
 Team spirit and morale are improved.
 Areas requiring attentions and improvements are pinpointed.
 A means for evaluating alternatives and quantifying intangibles is provided.
 Value analysis is applicable to all areas of industrial operations e.g. purchasing
hardware, products, systems or procedures, etc.

3. PRODUCT DEVELOPMENT AND VALUE ENGINEERING
1. Product Design and Development :-
Designing of product involves preparation of drawings, specifications and estimates
concerning the product to be manufactured.
In following factors are considered in product design:
Customer’s requirement:Exact requirement and specifications of customer are to
be found out.
Operator’s Convenience: This factor is considered in product design to avoid
unnecessary and inconvenient movement of operators.
Types of materials: It necessary for the designers to possess upto date information
regarding materials to be used for the product.
Work methods and equipment:Improvements in work methods and equipment
require Changes in stereotyped product design. Such improvements also result in
substantial reduction in the' cost of production. Therefore, designees must keep
abreast of improvements in work methodsand equipment.
Special attention should be paid to style changes in the design of product. Design should be
such to minimize cost and scrap. Before making any design change costs of introducing such
a change and possible benefits accruing therefrom should be considered. Any new design
should be tested on Consumers under actual use conditions before placing it on the market.
Planning a product to meet the exact requirements of the market is known as product
development product development requires products research.
Product design and development is a specialized function involving creation of a new
product for which there is improvement in utility or esteem value or both.
Product design and development is a never-ending or ongoing process and its benefits
become visible in long run.

4. 2. Application of Value Engineering :-
Value engineering is concerned with materials and parts,process,specification; determining
standards foroverallquality and performance.Large manufacturing concern utilizevalue
Engineering. Design Engineering rind costing departments in close co-ordination for
introducing changes in existing products which will introduce better functions at reduced
costs.The product so developed should be acceptable to customers at suitable price.
The value engineering department keeps abreast of the latest developments in
manufacturing methods and techniques including customer’s requirements.
Value Engineering is essentially a service function and is with reducing cost Product without
affecting utility and appealing properties of Product.
Value Engineering work in close collaboration with Design Engineering, Process Engineering,
Costing, Testing and Marketing activities for achieving the desired objective.
3. Simplification of Product:-
Simplification of product refers to the elimination of excessive and undesirable features of
product to eliminate waste and to achieve economy.
The main purpose of product simplification is to improve quality and to reduce unit costs
and prices leading to higher sales. Simplification also includes the reduction or elimination
of undesirable and excessive basic materials used in the manufacture of various products.
Product simplification may offer following benefits:
It eliminates unimportant materials and products leading to less complex
manufacturing.
It makes possible the utilization of special purpose and automatic machines.
It simplifies production planning and supervision.
It leads to lower manufacturing costs and higher sales.
It speeds up delivery to customers.