VALUE ENGINEERING

ANALYSIS

1)Value Analysis (VA) is also known as VALUE Engineering (VE), Value Assurance and VALUE Management (VM). it is an approach for improvement in the performance of the products, systems or procedures and reduction or elimination of cost, without affecting the function. 2)Value analysis as an organization creative approach which has for its purpose the efficient identification of unnecessary cost, i.e., cost which provides neither quality, nor use ,nor life, nor appearance, nor customer features. VA is normally used in the area like customer service plans in banks, slum development, motivational techniques,Teh

2)Value analysis as an organization creative approach which has for its purpose the efficient identification of unnecessary cost, i.e., cost which provides neither quality, nor use ,nor life, nor appearance, nor customer features. VA is normally used in the area like customer service plans in banks, slum development, motivational techniques, Techniques.

VALUE ENGINEERING JOB PLAN 1. THE JOB PLAN IN FOLLOWING SEVEN STEPS: 2. GENERAL PHASE 3. INFORMATION PHASE 4. FUNCTION PHASE 5. CREATION PHASE 6. EVALUATION PHASE 7. INVESTIGATIN PHASE 8. RECOMMENDATION PHASE

General phase
It is the most demanding phase of a VA job plan. It creates the right environment for successful VA. In this phase , emphasis is placed on human interaction to seek co-operation of the team ton implement VA. Work done on specifics, rather than on generalities. The resistance to change is to be overcome.

Lack of information:
Most people who design a product are quite often not too sure of the real needs of a user and usually over-design the product by providing it with features that the user just does not use. The world is advancing exceedingly fast and new technology, new products, new materials and new processes are coming up almost every day. They create obsolescence in respect of the old processes. Costs which were considered satisfactory yesterday become unnecessary today. In the face of competition the royal road to ruin is to adopt the methods of yesterday to the business of today.

Information phase : here an attempt is made to assess the potential of value improvement. project is studied in detail and all important fact are gathered and considered. in this phase, fact which are in the form of technical specifications or environmental specifications down. development are considered. also, the engineering drawings, production sample, production data are all kept in mind. The cost data and work specifications are secured. consumer preferences are jotted and testing are studied. quantities and scrap are taken in account. a relationship is to be established between cost and specification or requirements.

Function phase:
Here the product is defined in term of its functions, in term of its performance expectations. These functions are corelated with cost and their worth. Most of the times, an attempt is made to define functions with only two words ---A verb and noun. It makes the definition pretty sharp. It introduces an element of rationality into the exercise, by trimming the frills.

Some function Definitions

product Tea cup Light bulb Gas lighter Fan regulator Match box Mirror Brake screwdriver function Hold tea (liquid) Emit light Provide ignition Regulator speed Provide ignition Reflect light Arrest motion Transfer torque

Another technique which is used under this phase is to evaluate function relationship by ranking function in descending order of importance. Simultaneously relative value of their importance determined. Paired comparison method is fairly common amongst researchers. it determines numerical value of various functions. Here pairs of function are compared to know their importance and to assess basic or secondary. Generally a products basic function is one ,but it may possess several secondary functions. Basic function can be restated in more ways than one.

Creation phase
Lack of ideas

Most of use want previously tried out materials, designs processes and procedures. We jump at the first ideas that work and usually do not bother to find out if better methods are possible. These days to give a fillip to creative ideas, brainstorming technique are used. To nurture creativity, positive thinking is established. Creative ideas are also developed by a number

Evaluation phase: Creative ideas generated during the Creation phase are screened for their feasibility, cost effectiveness and practicability at this stage. For this purpose, ideas are further refined or combined together. Cost of all ideas and savings resulting from their implementation are studied. Decision-matrix can be set-up to evaluate on basis of various criteria.

Investigation phase: It is virtual extinction of the previous phase. ideas accepted are here converted into acceptable and workable solution to perform the desired function at the least cost. It may be necessary to standardize, to consult vendors and specialists, and to use specialty products, processes and procedures.

Recommendation phase:

It is the ultimate phase of VA. Finally selected value alternative here in presented for implementation on acceptance. Acceptance is the key to success of VA. Sometimes, acceptance is a result of presentation or a combination of both. All the relevant data is kept before management to enable it to take suitable decision.

Alternatives of job plan:

Instead of the Recommendation phase method we can adopt FAST or DARSIRI, which is an acronym for data Collection (D), Analysis (A), Record of ideas (R), Speculation (S), Investigation (I), Recommendation (R), and Implementation (I) . FAST (Functional Analysis System Techniques)

Fast as VE Technique:
This technique is developed by Charles W Bytheway(1965), FAST is a visual representation of functions and identifies the areas of greatest impact of these function on costs. It is an interaction between function and cost. The following step are followed for construction FAST 1) Use verb and noun for describing functions. 2) These functions are written on small cards. 3) First select the basic function card. : (i) How is the function performed? (ii) Why is it performed? (iii) When is it performed? The logical sequence of function (basic and secondary) generate a critical function path. It consist of only critical functions.

Case study

Data collected function Cost Worth Creative phase

Function, cost current(450 amps) C\section, other conductors and their costs, etc. Conduct Electricity 52 units per cable. 17 Units (steel cable with increased cross section could also conduct at cheaper cost). Ideas to use cast iron, steel, aluminum, Nicro-alloys, silver, etc. generated.

Evaluation After analyzing different ideas aluminum was considered best and investigated regarding its feasibility, economy and related problems like bi-metallic corrosion between aluminum and brass lugs ets. Recomme Aluminum cable of 120mm2 *1.5meters with zinc alloy ndation sleeves and brass lungs recommended. Saving 30 units per cable (57% cost difference between copper and aluminum+ cost increase due to addition of zinc alloy sleeves).=30*50,000; =15 lakh units per year

Organizational Aspects of VA
VA required top management support top management support. The VA also requires team work. The VA function can be organization its size, operations, product-line etc.It can be administered by staff at the corporate office or it may be run on decentralized basis or a balanced combination of both. A decentralized and local VA group is accepted as a helpful service. This is specially effective when manufacturing units are set up on production line basis and are autonomous cost and profit centers. VA however is not as firmly entrenched as marketing, finance and other corporate functions. There are frequent resistance problems to VA. Its endorsement at the top level leads to acceptance at the lower levels. VA is also affected by the management level to which it reports- it must be wide enough to cover all areas affecting the validity of the study, high enough to communicate with decision-making responsible for implementation, powerful enough to communication with decision-makers responsible for implementation, powerful enough to control and take responsibility for

data collection=====function, cost function============furniture cost=========2000RS worth=======chipper than iron just 450RS creative phase========ideas to use fiber instead of iron evaluation===========after analyzing different ideas fiber was considered best recommendation=======fiber is polymer plastic recycle and made in just cost of 450 RS saving===============1550 RS

Benefits from value Analysis

1. A Reduction in cost of existing products or system. 2. Prevention of unnecessary cost in new product