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Value Engineering for Product Development

The document discusses improving product development through value engineering. It outlines a value engineering methodology that involves a multi-functional team identifying a product's functions and constraints, generating alternative methods to achieve those functions, fact-finding on costs, and selecting alternatives through judgment and technical review to reduce costs while meeting requirements. The methodology aims to achieve cost-effective results, improve competitiveness, and reduce risks.

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snilkanth
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32 views11 pages

Value Engineering for Product Development

The document discusses improving product development through value engineering. It outlines a value engineering methodology that involves a multi-functional team identifying a product's functions and constraints, generating alternative methods to achieve those functions, fact-finding on costs, and selecting alternatives through judgment and technical review to reduce costs while meeting requirements. The methodology aims to achieve cost-effective results, improve competitiveness, and reduce risks.

Uploaded by

snilkanth
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 PDF, TXT or read online on Scribd

Improving Product Development with Value Engineering

A Framework for Synergy, Collaboration, Exploration, Discovery & Innovation

Customer / Consumer Value


Customer/End-User = Value What the customer got What it cost the customer

Product, Delivery, Service, Fast Response, Programs,

got =

Merchandising, Credit, Relationship, Accuracy, Reliable Information, Problem Solving, Technical Assistance, Sales Person/Rep, Cheerfulness, Sympathy

cost =

Price, Problems, Hassle, Time, Confusion,


Misunderstanding, Fear, Frustration, Unnecessary Repeat Phone Calls, Processing Deductions, Returnable Product.

Product Design Influence


Product design accounts for only 5% of a products total cost, however, it dictates about 70% of the products total accounted manufacturing cost. Cost % Influence % 50% 70%

30% 20% 15% 5% Material Overhead 5% Labor 5% Product Design

Customer / Consumer Focused Value Engineering


Multi-Functional Team approach Methodology for solving problems and/or reducing costs Achieves cost effective results and avoids unnecessary costs Improves performance of products, processes and services Improve competitiveness Reduce risks and increases possibility of success

Customer / Consumer Focused Value Engineering


Converting User Requirements into Physical Products

User Demands

Function Definition
Products & Parts Function

Design

Physical Properties

Functional Properties

Value Engineering Methodology


Function
Creative Problem Solving

Cost

Value Engineering Methodology


Function
Creative Problem Solving
Identify Function Identify Opportunity Cost Reduction

Cost

Value Engineering Methodology


Function
Creative Problem Solving
Identify Function Criteria & Constraints Identify Opportunity Fact Finding Cost Reduction Obtain Costs

Cost

Value Engineering Methodology


Function
Creative Problem Solving
Identify Function Criteria & Constraints Alternate Methods Identify Opportunity Fact Finding Ideation Cost Reduction Obtain Costs Compare Costs

Cost

Value Engineering Methodology


Function
Creative Problem Solving
Identify Function Criteria & Constraints Alternate Methods Ideas vs. Criteria Identify Opportunity Fact Finding Ideation Judgement & Selection Cost Reduction Obtain Costs Compare Costs Evaluate Cost

Cost

Development of Ideas

Value Engineering Methodology


Function
Creative Problem Solving
Identify Function Criteria & Constraints Alternate Methods Ideas vs. Criteria Identify Opportunity Fact Finding Ideation Judgement & Selection Cost Reduction Obtain Costs Compare Costs Evaluate Cost

Cost

Development of Ideas Technical Review Team Review

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