Copy of Value Analysis and Value Engineering

VALUE DIFFERENT THINGS TO DIFFERENT PEOPLE
STEP BY STEP APPROACH

TO REDUCE COST SUBSTANTIALLY

WITHOUT SCACRIFYING CUSTOMER RELATED PARAMETERS VALUE ANALYSIS EXAMPLE: FUNCTIONAL VALUE
AESTHETIC VALUE
EXCHANGE VALUE
ESTEEM VALUE
COST VALUE VARIOUS VALUES CONSIDERED 1. DECREASING COST, SAME LEVEL OF PERFORMANCE
VALUE= PERFORMANCE
COST

2. ENHANCING PERFORMANCE AT THE SAME COST
VALUE= PERFORMANCE
COST VALUE MONEY'S WORTH COST RELIABILITY DIFFERENT
PERSPECTIVES VALUE ANALYSIS
&

VALUE ENGINEERING GLASS BOTTLE PLASTIC BAG COST & PERFORMANCE RELATIONSHIP TO VALUE 3. DECREASING COST AND INCREASING PERFORMANCE
VALUE= PERFORMANCE
COST

4. BOTH PERFORMANCE AND COST INCREASING. BUT PERFORMANCE INCREASE FASTER THAN THE COST.
VALUE= PERFORMANCE
COST COST & PERFORMANCE RELATIONSHIP TO VALUE LACK OF FUNDS REASON FOR UNNECESSARY COSTS LACK OF
RELEVANT
INFORMATION OUTDATED
TECHNOLOGY GOVT.
POLICIES HONEST &
WRONG BELIEFS APPLICATION OF VALUE ANALYSIS CAPITAL
GOODS MAINTENANCE,
REPAIRS FINISHED ITEMS MISC.
ITEMS SUB-
CONTRACTED
PARTS RAW & SEMI
FINISHED GOODS PACKING
MATERIALS VALUE
ANALYSIS 2002 March (cc) image by jantik on Flickr GROWTH STAGE DEVELOPMENT STAGE MATURITY STAGE WHEN TO APPLY VALUE ANALYSIS VALUE ENGINEERING VE IS AN ANALYTICAL, STEP-WISE
ORGANIZED, CREATIVE TEAM-APPROACH
TO EXAMINE ALL THE FACETS OF COST & FUNCTIONS
OF A PRODUCT/EQUIPMENT/ SYSTEM
TO IDENTIFY AND ELIMINATE UNNECESSARY COSTS Example: Single cylinder Refill inside Cap Closing lid Cylinder parts 1. HELP TO SATISFY THE CUSTOMER

2. COST PREVENTION

3. MOTIVATES EMPLOYEES TO COME OUT WITH CREATIVE IDEAS

4. BALANCE THE COST AND PERFORMANCE APPLICATION PHASES ORIENTATION DIFFERENCE BETWEEN VALUE ANALYSIS AND VALUE ENGINEERING VALUE ANALYSIS VALUE ENGINEERING (cc) image by anemoneprojectors on Flickr * APPLICATION –MANUFACTURING STAGE. * AT ITS DESIGN STAGE. * ALL FACTORS COME TOGETHER
WORKERS, SUBCONTRACTORS, ENGINEERS. * IT IS ALWAYS DONE BY A SPECIFIC
PRODUCT DESIGN (ENGINEERS) TEAM. * IT MAY CHANGE THE PRESENT STAGE
OF THE PRODUCT OR OPERATIONS. * THE CHANGES ARE EXECUTED AT
THE INITIAL STAGES ONLY. * IT REQUIRES KNOWLEDGE & EXPERIENCE. * IT REQUIRES SPECIFIC TECHNICAL KNOWLEDGE. CASE STUDY TATA’S SUCCESS THROUGH VALUE ENGINEERING SUPREME EXAMPLE OF VALUE ENGINEERING:
TATA NANO BY MAKING THINGS SMALLER AND LIGHTER
ENGINE:
STEERING SYSTEM:
DESIGN:
COMPETITIVE BUYING :
REGULAR BULBS:
TYRES:
NEGOTIATION WITH SUPPLIERS : SPEED OF GETTING AN EFFECTIVE DESIGN INTO THE MARKET

RELIABILITY AND DURABILITY OF THE PRODUCT

LOW OVERALL COST

ENHANCED QUALITY AND COMPLIANCE

DIFFERENTIATION BY CREATING PRODUCT DESIGNS AS PLATFORMS

TO MAKE A PROFIT AND SURVIVE CONCLUSION BENEFITS OF VALUE ENGINEERING For Your Attention .... VALUE ANALYSIS & VALUE ENGINEERING 1. PRANALI SAWANT
2. ADITI SONVADEKAR
3. PRANALI PEWEKAR
4. MINAL VAJE
5. DIPTI NADKARNI
6. RUTH SERREAO 28
46
18
54
04
29 NAME ROLL NO. Ring Steel Hook Refill Original pen Spring BENEFITS OF VALUE ANALYSIS 1. MEET OR EXCEED STANDARDS

2. FOSTER A TEAM APPROACH

3. IMPROVES PROJECT’S PERFORMANCE

4. VALIDATE PROJECT’S SCOPE EVALUATION INVESTIGATION CREATIVE FUNCTION INFORMATION AUDIT/FOLLOW-UP RECOMMENDATION