The document discusses value engineering and value analysis. It provides an overview of value as a combination of quality, efficiency, price and service. It defines value engineering as an organized procedure to efficiently identify unnecessary costs. The origins and objectives of value analysis are described, including techniques like the matrix and MISS methods. The value engineering process involves collecting information, defining functions, creating alternatives, evaluating alternatives, developing the best alternative, and implementing the alternative. Both disadvantages like being time consuming and expensive, and advantages like being a powerful scientific tool are covered.

1. {
VALUE
ENGINEERING
POM PRESENTATION
TEAM 12
• Veeranna
• Vinutha
• Vishal
• Prashant

2. Value – Combination of
 Quality
 Efficiency
 Price
 Service
Ensuring ultimate economy and satisfaction of
purchaser.
Meaning of Value..

3. Value = Function (Utility)
Cost
Mathematical Expression
of Value..

4. COST VALUE
USE VALUE
ESTEEM VALUE
EXCHANGE VALUE
Types of Value..

5. Organized procedure for efficient
identification of unnecessary cost.
Value Engineering..

6.  Began at General Electric Co. during World War
II.
 Shortages of
skilled labour,
raw materials,
component parts.
 G.E. looked for acceptable substitutes.
 Substitutions often reduced costs, improved
product, or both.
 VALUE ANALYSIS
Origin..

7.  Saving and cost
 Quality Promotion
 Import substitution
 New Products & Product Design
 Time Consideration
 Standardization
Objectives of Value Analysis

8.  Matrix
 MISS
• Modification
• Improvement
• SubDivision
• Substitution.
Techniques..

9. Procedure..
Collect relevant
information
Define different
Func.
Create diff.
Alternatives
Evaluate the
alternatives
Develop the best
alternative
Implement the
alternative
Identify the product

10.  Based on specific scientific theory
 Rigorous technique
 Need expert knowledge
 Time consuming
 Expensive
Disadvantages..

11.  Powerful Tool
 Scientific Tool
 Keep management update
 Use of resources
 Creative ability
 Proper atmosphere
 Import substitution
 Applicable to all stages
Advantages..