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Value Analysis and Engineering Overview

This document outlines value analysis and value engineering. It defines value analysis as a systematic process to review existing product designs to compare the required customer functions at the lowest cost while meeting performance and reliability needs. The objectives of value analysis are listed as cost reduction, improved effectiveness, an organized approach, and reducing unnecessary costs without affecting quality or features. The steps for carrying out value analysis are established as establishing objectives, considering a cross-functional team, analyzing the supplier's process, decomposing product characteristics, brainstorming alternatives, evaluating costs, selecting the best alternative, and implementing changes.

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anjali
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6 views10 pages

Value Analysis and Engineering Overview

This document outlines value analysis and value engineering. It defines value analysis as a systematic process to review existing product designs to compare the required customer functions at the lowest cost while meeting performance and reliability needs. The objectives of value analysis are listed as cost reduction, improved effectiveness, an organized approach, and reducing unnecessary costs without affecting quality or features. The steps for carrying out value analysis are established as establishing objectives, considering a cross-functional team, analyzing the supplier's process, decomposing product characteristics, brainstorming alternatives, evaluating costs, selecting the best alternative, and implementing changes.

Uploaded by

anjali
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

VALUE ANALYSIS

&
VALUE ENGINEERING

GROUP MEMBERS:

Raghav Agrawal
Divya Ahuja
Karishma Alwani
Anjali Bajaj
Ruchita Bhatia
Sumer Bhatia

INTRODUCTION
Worth to you
Value =
-----------------Price you pay

The concept of value analysis was


developed during World War II by
Lawrence D. Miles of General Electric
Company.

WHAT IS VALUE ANALYSIS


?

DEFINITION
Value Analysis can be defined as a
process of systematic review that is
applied to existing product designs in
order to compare the function of the
product required by a customer to
meet their requirements at the lowest
cost consistent with the specified
performance and reliability needed.

OBJECTIVES

Value Analysis is an effective tool for cost


reduction and the results accomplished are far
greater.
It improves the effectiveness of work.
It is an organised approach to a problem.
It is value applied at the design stage itself.
It reduces unnecessary cost,obvious & hidden
which can be eliminated without adversely
affecting quality,efficiency,safety & other
customer features

STEPS FOR CARRYING OUT


VALUE ANALYSIS

Establish the objectives([Link] reduction)


Consider a team for marketing,sales,production
etc)
Analyze the production process of the supplier
company.
Decompose various characteristics of purchase
product.
Hold a creative brainstorming session to explore
all alternative possibilities.
Sort the ideas to establish the cost of each.
Select the best alternative.
Develop a plan for implementing the change.

PHASES OF VALUE
ANALYSIS JOB PLAN
SELECTION & ORIENTATION
ANALYSIS
RECORDING IDEAS
SPECULATION
INVESTIGATION
RECOMMENDATION
IMPLEMENTATION

BENEFITS TO BE ACHIEVED BY VALUE


ANALYSIS

Better purchasing technique.


Better suppliers & manufacturing methods.
Lower operating cost.
Standardization & re-evaluation.
Substitution & packaging.
Better material handling.
Better inventory control.
Lower maintenance & overhead cost.
Increased customer satisfaction.

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