Value analysis is a systematic process for reducing costs without compromising quality. It was developed at General Electric after WWII due to shortages. Value analysis identifies the function of a product/service and ensures that every cost contributes proportionally to the function. It has seven phases: selection, analysis, recording ideas, speculation, investigation, recommendation, and implementation. Value analysis provides benefits like reduced costs, improved profits and customer satisfaction.
1: Value Analysis provides great turnaround in the operations of the businesses.
2: Use Value Analysis to analyze and understand the detail of cost for specific situations.
3: Use it to find a focus on key areas for innovation.
4: Use it in reverse (called Value Engineering) to identify specific solutions to detail problems.
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 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
1: Value Analysis provides great turnaround in the operations of the businesses.
2: Use Value Analysis to analyze and understand the detail of cost for specific situations.
3: Use it to find a focus on key areas for innovation.
4: Use it in reverse (called Value Engineering) to identify specific solutions to detail problems.
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 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
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.
Application of Value Engineering in Construction Projectsnitinrane33
Value Engineering is a proven management
technique that can make valuable contributions to value
enhancement and cost reduction in construction industry.
Value Engineering is one of the most effective techniques
known to identify and eliminate unnecessary costs in product
design, testing, manufacturing, construction, operations,
maintenance, data, procedures and practices. The
methodology is composed of three main stages. The first stage
is the Pre-Study of the Value Engineering. The purpose of
this stage is to plan and organize the value study. Value
Engineering is the systematic application of recognized
techniques that identify the functions of the product or
service, creatively establish the worth of those functions, and
provide only the necessary functions to meet the required
performance at the lowest overall cost. Value Engineering
focuses on accomplishing the required functions at the lowest
overall cost. It helps in eliminating or minimizing wastage of
material, time, and unnecessary cost, which improves value to
the customer. The second stage is the Value Study which is
the core of Value Engineering study and it is composed of five
phases, the Information phase, Function Analysis Phase,
Creative Phase, Evaluation Phase and the Presentation phase.
All phases and steps perform sequentially. Such sequence of
the methodology is expected to assist in logical and systematic
flow of the process to achieve the targets of the VE study. The
third stage is the Post Study. The objective during post-study
activities is to assure the implementation of the approved
value study change recommendations. In this study, how the
principles of Value Engineering are applied in construction
projects is explained, and by taking case study on residential
building as the sample project, practices of Value
Engineering in this project are described.
A Study Report on Value Analysis and Value Engineering (VAVE)Avijeet Suryavanshi
This Project Report presents the basic fundamental of value engineering that can be implemented in any product to optimize its value. A case study of L&T Technology Services is discussed in
which the material, design of components is changed according to the value engineering methodology. In the present case study, it is observed that the unnecessary increase in cost is due
to the use of expensive material, increase in variety of items and thereby increasing the inventory and so on. Therefore, selected some components and applied value engineering technique for the cost reduction of these components.
Value Engineering is an effective tool in identifying areas where cost reduction can be achieved.
In order to effectively do this, various approaches in specific areas of focus are discussed in this report.
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Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
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Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Basic phrases for greeting and assisting costumers
Value Analysis Value Engineering & Business Process Reengineering
1. Presented By :
Devanshu Sharma ( 131417)
Sakash Agrawal (131419)
Sudhir Kumar (131421)
T. Hari Kumar (131449)
Harsha Vardhan (131429)
2. INTRODUCTION
Value = Worth you get
----------------
For the price you pay
Value Analysis was developed after WW-II in USA at General Electric
(GE) in 1947. Because of WW-II, there were shortages of skilled labor,
raw materials, and component parts at GE.
Lawrence D. Miles, Jerry Leftow, and Harry Erlicher at GE looked for
acceptable substitutes. They noticed that these substitutions often
reduced costs, improved product, or both. This led them to the
discovery of a systematic process for cost reduction without
compromising on the desired quality of products. They named their
process as “VALUE ANALYSIS”.
3. WHAT IS VALUE ANALYSIS
Value Analysis is an effective tool for cost reduction and the results accomplished
are far greater.
It improves the effectiveness of work.
It is an organized approach to a problem.
It is value applied at the design stage itself.
It reduces unnecessary costs, obvious and hidden which can be eliminated
without adversely affecting quality, efficiency, safety and other customer
features.
DEFINITION - Value Analysis can be defined as a process of systematic review that
is applied to existing product designs in order to compare the function of the
product required by a customer to meet their requirements at the lowest cost
consistent with the specified performance and reliability needed.
4. CLASSIFICATION OF VALUE
Value can be divided into the following classifications :-
Use or Functional Value: The properties and qualities which accomplish a use,
work or service.
Esteem Value : The properties, features or attractiveness which cause us to
want to own it.
Cost Value : The sum of labour, material and various other costs required to
produce it.
Exchange Value : Its properties or qualities which enable us to exchange it for
something else we want.
5. OBJECTIVES OF VALUE ANALYSIS
To provide better value to product/service
To improve the company’s competitive position
To ensure that every element of cost
Labour
Materials Suppliers and
Service contributes proportionally to the function of the product .
To achieve continuous performance/ cost/quality improvement.
To eliminate unnecessary cost.
6. APPLICATION OF VALUE ANALYSIS
1) Capital goods – plant, equipment, machinery, tools, etc.
2) Raw and semi-processed material, including fuel.
3) Materials handling and transportation costs.
4) Purchased parts, components, sub-assemblies, etc.
5) Maintenance, repairs, and operational items.
6) Finishing items such as paints, oils, varnishes, etc.
7) Packing materials and packaging.
8) Printing and Stationery items.
9) Miscellaneous items of regular consumptions.
10)Power, water supply, air, steam & other utilities (services).
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. For many of the world’s leading companies, including names like Hewlett
Packard, Sony, Panasonic, Toyota, Nissan, and Ford, VA process of design
review has provided major business returns.
The key to realizing these returns is through using knowledge of:
the customer requirements,
the costs of the product,
manufacturing process &
the costs associated with failures due to poor or inadequate product
design.
All these inputs to VA process are vital if decisions regarding product and
process re-design are to yield lower costs and enhanced customer value.
9. What is it? (a pencil)
What is it used for? (writing)
What is the main function of this product? (making marks, writing)
What is the method, material or procedure that was used to realize
the main function? (a graphite stick & wood)
What are the corresponding secondary functions? (transfer graphite
to paper and facilitate holding the graphite)
What does the item cost and how can we distribute the cost of
realizing the main function into each secondary function?
Comparing these costs to an item of a similar function, how much
should each function cost and what must be the total cost?
Important Note
Focus your VA on the main function, because, during the analysis, the
secondary functions may change. The group/committee/team may
choose different secondary functions to realize the main function.
11. # Stage Description
1.
SELECTION &
ORIENTATION
To select those critical areas where a potential for cost reductions is expected.
Use the common Pareto’s ABC analysis.
General scope, restrictions and aims of the study is defined.
2. ANALYSIS
Examine the data at a VA group/team meeting.
Record the minutes of each brainstorming session.
Apply the Tests for Value.
Propose further action.
3.
RECORDING
IDEAS
Write down the minutes of analyses meetings and circulate them to group/team
members for further queries.
It includes the agenda for the next meeting.
4.
INNOVATION/CREA
TIVITY
Arrange team meetings in order to discuss the ideas analyzed and any new
information obtained.
Think upon practical measures for reducing costs and increasing value.
12. # Stage Description
5. EVALUATION
Investigate suggestions for reducing costs and to make them practical and
acceptable to client management.
Obtain definite prices and costs in order to estimate cost reductions accurately.
6. RECOMMENDATIONS
Recommend cost reductions to client management.
Present the recommendations in a comprehensive report.
Recommend a member to act as an implementation consultant for VA
recommendations.
7.
IMPLEMENTATION&
MONITORING
Implement the recommendations accepted by the company management.
Monitor the results as suggested in VA report.
Jot down the feedback of the management upon completion of VA assignment.
13. CONCLUSION
Value analysis is a technique with immense possibilities, and systematically
employed, it can achieve great economies and increased efficiency.
Although good results have been obtained in several individual cases in some
industries, only a large scale and systematic application of this technique in all
industries, and in defense production, can result in substantial economies on a
national scale.
To conclude, we can say that benefits of value analysis include,
Reduced production cost,
Materials and distribution cost,
Improved profit margin,
Increased customer satisfaction.
14. VE and creative method to increase the value of an item.
This "item" can be a product, a system, a process, a
procedure, a plan, a machine is an orderly, equipment ,
tool, a service or a method of working.
Value Engineering is defined as 'the professionally
applied, team based, function - oriented, systematic
application of recognized techniques (function analysis)
which -
1. Identify the "function of a product, process, project, facility
design, system or service,
15. Uses:
• Value Engineering (VE) has been used to refer to the design stage or before
the fact.
• Value Engineering (VE) approach is used for new products, and applies the
same principles and techniques to pre-manufacturing stages such as
concept development, design and prototyping.
• Value Engineering (VE) is a powerful Change Management and Problem
Solving' tool with over a century of worldwide application track record.
• VE is used to create functional breakthroughs by targeting value mismatches
during product, process, and project design.
16. A product goes through 3
stages
1.Developmental
2. Growth
3. Maturity before being out of date.
17. Function in VALUE Engineering
Function:
Value analysis defines a "basic function" as anything that
makes the product work or sell.
A function that is defined as "basic" cannot change.
Secondary functions, also called "supporting functions",
described the manner which the basic function's were
implemented.
Value is not a matter of minimizing cost.
In some cases the value of a product can be increased by
increasing its function (performance or capability) and
cost as long as added function increases more than its
added cost.
18. APPLICATIONS OF VALUE ENGINEERING
From a generic point of view, VE
1. Enables people to pinpoint areas that need attention and
improvement.
2. Provides a method of generating ideas and alternatives for possible
solutions to concern.
3. Provides a means for evaluating alternatives. .
4. Allows one to evaluate and quantify intangibles and to compare
apples with oranges.
Some application areas are - Defense; Automotive; Aeronautical;
Software development; Water treatment; Civil engineering; systems and
procedures, venture analysis, forecasting, resource allocation,
marketing, Client services; Work processes; Documentation;
Organizational development;
19. Function analysis
Creative and speculative techniques
Measurement techniques
Value Analysis
Value
Essential parameter
Analyze process
PRINCIPLES OF THE VALUE METHODOLOGY
20. Phase I - SELECTION PHASE:
Group of 4-6 members is formed.
Members should be from equivalent levels.
Team must be interdisciplinary.
Commitment for the implementation.
Outside facilitator can be inducted.
One of the members should be an expert.
Team members must have an open mind.
21. Phase II - INFORMATION PHASE:
Functions are classified into "basic" & "secondary“
Accurate marginal cost data is needed.
Gather all the information
Identify and define the components
Ask for detail of costs.
Collect too much information than collect too little.
Attitude must challenge traditional assumptions.
Cost function matrix or value analysis matrix
Select for value improvement analysis
22. VE At Job Plan
Preparation
Information
Analysis
Creation
Evaluation
Development
Presentation
Follow-up
23.
24. Business Process Reengineering
Business Process Reengineering involves changes in structures and in
processes within the business environment. The entire technological, human,
and organizational dimensions may be changed in BPR.
Information Technology plays a major role in BPR as it provides office
automation, it allows the business to be conducted in different locations,
provides flexibility in manufacturing, permits quicker delivery to customers
and supports rapid and paperless transactions.
In general it allows an efficient and effective change in the manner in which
work is performed.
25. LPG has created instability and intensive competition in the business environment.
Competition is continuously increasing with respect to
• Price
• Quality and selection
• Service
• Promptness of delivery.
This competition has intensified because of:
Removal of barriers
International cooperation
Technological innovations
All these changes impose the need for organizational
transformation, where the entire processes, organization climate and organization
structure are changed.
26. Reengineering is the vital rethinking and radical (major/thorough) redesign of
business processes to achieve dramatic improvements in critical modern measures
of performance such as cost, quality, service and speed.
Process is a structured, measured set of activities designed to produce a specified
output for a particular customer or market. It implies a strong emphasis on how work
is done within an organization. “
Business processes are characterized by three elements:
the inputs, (data such customer inquiries or materials),
the processing of the data or materials (which usually go through several stages
and may necessary stops that turns out to be time and money consuming) and
the outcome (the delivery of the expected result).
The problematic part of the process is processing. BPR mainly intervenes in the
processing part, which is reengineered in order to become less time and money
consuming.
27. An example of a business process:
Credit card approval in a bank.
An applicant submits an application. The application is reviewed first to make sure
that the form has been completed properly. If not, it is returned for completion. The
complete form goes through a verification of information.
This is done by ordering a report from a credit company and calling references. Once
the information is verified, an evaluation is done. Then, a decision (yes or no) is
made. If the decision is negative, an appropriate rejection letter is composed. If the
decision is positive, an account is opened, and a card is issued and mailed to the
customer.
The process, which may take a few weeks due to workload and waiting time for the
verifications, is usually done by several individuals.
28. An example of BPR application.
A typical problem with processes in vertical organizational structure is that customers
must speak with various staff members for different inquiries.
For example,
If a bank customer enters into the bank determined to apply for a loan, apply for an
ATM card and open a savings account, most probably must visit three different desks
in order to be serviced.
When BPR is applied to an organization the customer communicates with only one
person, called "case manager", for all three enquiries.
If his loan is rejected the case manager explains the reason
and if it is passed:
29. while the loan application team was processing the loan application, the case
manager "triggered"
the account team to open a savings account and
the ATM team to supply the customer with an ATM card.
The customer leaves the bank having
a response for his loan application,
a new savings account and
an ATM card,
And all these without having to move around the desks for signatures and
documents.
All the customer's requests were satisfied at the same time in parallel motion.
30. Assuming a customer calls the company to ask why his order has not yet arrived to its
premises.
"Let me transfer you to the accounting department to check if the order was
invoiced" responds the telephone operator.
The customer must explain his problem to the accounting department again. "We
had invoiced your order, but I don't now if already shipped to you. You need to call
the logistics department, unfortunately I could not transfer you since they are
located in another city".
The customer calls the logistics department and explains the situation again.
The logistics manager responds "that although the order should have been
distributed to you, I haven't yet received the order from them in the production
department".
"Please hold on a minute, I will try to talk to them to find out what happened".
31. The inventory manager tried to help out the situation, since he felt that the customer
was getting aggravated from the other side of the phone.
After a while he said "Sir I am sorry, it is the finish department's fault. Somebody had
forgotten your order in the finish storage. I will have it send out to you as soon as
possible."
After this odyssey the customer was seriously considering whether he would place
another order.
So in these types of cases the golden rule is:
THE CUSTOMER MUST SPEAK WITH ONE PERSON, the case manager.
All internal controls are the responsibility of the order processing team.