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Value Analysis & Value Engineering

This document discusses value analysis and value engineering. It defines value as the ratio of function to cost. The objective of value analysis/engineering is to increase value and decrease cost by understanding a product's functions, components, costs, and importance. It aims to maximize usage, minimize waste, and get the highest value for money by finding alternative designs/materials that reduce costs while maintaining or improving quality and customer satisfaction. The methodology involves identifying the product/functions, examining costs/alternatives, and recommending optimal designs.

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Milind Trivedi
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500 views21 pages

Value Analysis & Value Engineering

This document discusses value analysis and value engineering. It defines value as the ratio of function to cost. The objective of value analysis/engineering is to increase value and decrease cost by understanding a product's functions, components, costs, and importance. It aims to maximize usage, minimize waste, and get the highest value for money by finding alternative designs/materials that reduce costs while maintaining or improving quality and customer satisfaction. The methodology involves identifying the product/functions, examining costs/alternatives, and recommending optimal designs.

Uploaded by

Milind Trivedi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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VALUE ANALYSIS VALUE ENGINEERING

VALUE IS GIVEN AS VALUE = FUNCTION/COST TYPES OF VALUES USE VALUE ESTEEM VALUE COST VALUE EXCHANGE VALUE TIME VALUE PLACE VALUE

1. 2. 3. 4.

5.
6.

IMPROVES PROCESS

THE

VALUE

OF

A PRODUCT OR

IMPROVES TO THE COMPONENTS BY EITHER REDUCING THEIR COST OR INCREASING THE VALUE OF THE

MAXIMIZE THE USAGE OF THE PRODUCT AND MINIMIZE THE WASTE OF THE PRODUCT

VALUE
FUNCTION VALUE ANALYSIS

NEED

Function How?

Component What?

Value How important?

cost How much? C

The objective is to increase value and decrease cost by understanding functions and components

DATA COLLECTION ANALYSIS RECORD OF IDEAS SPECULATION INVESTIGATION RECOMMENDATION IMPLEMENTATION

IDENTIFICATION OF PRODUCT

IDENTIFICATION OF DESIRED QUALITY LEVEL OF PRODUCT

IDENTIFICATION OF THE SYSTEMS AND SUB-SYSTEMS


IDENTIFICATION OF FUNCTIONS

ASSIGNMENTS OF WEIGHTAGES

Cont

ISOLATE FUNCTIONS

IDENTIFY ALTERNATIVE MEANS

IDENTIFY ALTERNATE COMPONENTS AND MATERIALS RECOMMEND MEANS OF ACHIEVING OPTIMUM VALUE

IMPLEMENT RECOMMENDATION

NATURE OF THE PRODUCT BE USED TO THE MAXIMUM EXTENT

WASTAGE CAN BE REDUCED


THE ORGANIZATION CAN BRANCH OUT TOTAL VALUE FOR THE MONEY CAN BE GAINED BACK

AVOID MAKING GENERALIZATIONS AND SUPERFICIAL STATEMENTS


COLLECT, DETERMINE AND EXAMINE ALL COSTS INVOLVED MAKE USE OF INFORMATION FROM THE BEST POSSIBLE SOURCES.

THE PROCESS OF DETERMINING THE VALUE OF A PRODUCT OR SERVICE DURING THE VARIOUS PHASES OF PRODUCT LIFE CYCLE (PLC) REDUCE COST PER UNIT VALUE EXAMINES THE DESIGN, UTILITY, VALUE LEADING TO MAKE THE BUY DECISION

DETERMINE THE BEST DESIGN ALTERNATIVES REDUCE COST IMPROVE QUALITY, INCREASE RELIABILITY AND AVAILABILITY, AND CUSTOMER SATISFACTION IMPROVE ORGANIZATIONAL PERFORMANCE AND EFFECTIVENESS REDUCE IMPORT CONTENT REDUCE MAINTENANCE COSTS.

METHODOLOGY

PRIMARY FUNCTION

SECONDARY FUNCTION

OPTIONAL FUNCTIONS

PRE-STUDY EFFORTS STUDY EFFORTS POST STUDY EFFORTS

ADDS VALUE HIGH RETURNS CAPITAL AND LIFE CYCLE COSTS. PERFORMANCE / PRODUCTIVITY / QUALITY DECISION-MAKING CAPABILITIES BY PRESENTING ALTERNATIVE SOLUTIONS TO A PROBLEM PROMOTE AND MANAGE CHANGE EXCELLENT ALIGNMENT TOOLCONTD

TIME TO MARKET / IMPROVES PROJECT SCHEDULES

VALUE ENGINEERING SHOULD BE PERFORMED AS EARLY AS POSSIBLE BEFORE COMMITMENT OF FUNDS. THE APPROACH DEPENDS ON TEAM WORK, CREATIVITY CONCEPTS

THANK YOU

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