VALUE ANALYSIS / VALUE ENGINEERING
“Value Analysis is the systematic application
of recognized techniques which identify the function of a
product or service, establish a monetary value for the
function and provide the necessary function reliability at
the lowest cost”
“Value Engineering is the application of exactly the same
set of techniques to a new product at the design stage”
DFM: An Example
(a) The original design (b) Revised design (c) Final design
Assembly using One-piece base & Design for push-and-snap
common fasteners elimination of fasteners assembly
AIMS
Simplify the product
Use (new) cheaper and better materials
Modify and improve product design
Use efficient process
Reduce the product cost
Increase the utility of the product by
economical means
Save money or increase the profits
WHEN TO APPLY VALUE ANALYSIS
• Company’s products show decline in sale
• Company’s prices are higher than those of its
competitors
• Raw material’s cost has gone up suddenly
• New designs are being introduced
• The cost of manufacturing is rising disproportionate to
the volume of production
• Rate of return on investment has a falling trend
• The firm is unable to meet its delivery commitments
PERFORMANCE (Utility)
VALUE = ---------------------
COST
VALUE:
The designer equates the value with Reliability;
Purchase person with price paid for the item;
Production person with what it costs to manufacture and
Sales personnel with what the customer is willing to pay.
Types of Value:
Cost Value
Exchange Value
Use Value
Esteem Value
Cost Value
It is the summation of labour, material, overhead and all other
elements of cost required to produce an item or provide service.
Exchange Value
Exchange value refers to the price that a purchaser will offer for
the product, the price being dependent upon satisfaction (value)
which he derives from the product.
Use Value
It is also known as the function value. The use value is equal to
the value of the functions performed.
Esteem Value
It involves the qualities and appearance of a product which
attract persons and create in them a desire to posses the product.
Value Engineering Procedure
1. Blast (i) Identify the product
(ii) Collect relevant information
(iii) Define different functions
2. Create (i) Different alternatives
(ii) Critically evaluate the alternatives
3. Refine (i) Develop the best alternatives
(ii) Implement the alternatives
Standards are at the base of all mass production.
Standards convey the sense that there are only certain
specific sizes made and sold.
Standards are carefully established specifications for
products, materials, etc.
Standardization is one way, which leads to economical
products.
Standardization is the process of established standards
or units of measure by which extent, quality, quantity,
value, performance, etc., may be compared and
measured.
Advantages of standardization for
1) Design department
2) Manufacturing department
3) Marketing department
4) Production planning section
5) Purchase store section
6) Quality control section
7) Supervision
8) Costing
Disadvantages of Standardization
9) Reduction in choice because of reduced variety and loss of
business
10) Changes in public taste seriously affect a company producing only
standardized product range
Application of Standardization
a) Finished products, e.g., cars and television
b) Subassemblies and components, e.g., auto-electric bulbs, bolts, nuts, screws,
etc.,
c) Material Standardization, e.g., direct materials
(steel rods, aluminium ingots, copper wires etc.,) and indirect materials (oils and
greases)
d) Production equipment Standardization, e.g., machine tools, presses, welding
equipment, etc.,
Simplification is concern with the reduction of product
range, assemblies, parts, materials and design.
Simplification removes the superfluous. It degreases
variety of sizes; for example a garment factory making tea-
shirts in sizes 16,1614 ,1612 ,1634 ,17,1714 , etc., can eliminate
superfluous sizes such as 1614 , 1634 , 1714 , etc., and thus
simplify his production line.
Interchangeability or interchangeable manufacture
means that any standardized component will
assemble correctly with any mating component,
both being chosen at random.
Ex: Spark plug, V-Belt, Tyre etc.,
CONCURRENT ENGG.
Performing different steps of a project in
parallel, would complete the project more
quickly then executing the steps sequentially,
one after the other
Concurrent Engineering
Defined
• Concurrent engineering can be defined as the
simultaneous development of project design
functions, with open and interactive
communication existing among all team
members for the purposes of reducing time
to market, decreasing cost, and improving
quality and reliability
TOOLS
TOOLS FOR
FOR CONCURRENT
CONCURRENT ENGINEERING
ENGINEERING
Design for Assembly (DFA)
Design for Manufacturing (DFM)
Quality Function Deployment (QFD)
Failure Mode Effects Analysis
(FMEA)
CAD/CAM/CAE Systems
DESIGN FOR ASSEMBLY (DFA)
Design for Assembly (DFA) is a set of procedures for reducing the number of parts in an assembly,
evaluating methods for assembly and determining an assembly-sequence.
DESIGN FOR MANUFACTURE (DFM)
Design for Manufacture (DFM) describes designing a product so that it can be produced easily and
economically. DFM identifies product design characteristics that are easy to manufacture, focuses on
design of component parts that are easy to fabricate and assemble, and integrates product design with
process planning.
QUALITY FUNCTION DEPLOYMENT (QFD)
Quality Function Deployment may be defined as a system for translating consumer requirements into
appropriate company requirements at every stage, from research through product design and
development, to manufacture, distribution, installation and marketing, sales and service.
FAILURE MODE EFFECT ANALYSIS (FMEA)
FMEA is a structured analysis for identifying ways & methods in which the product or processes can fail
and then plan to prevent those failures. FMEA is a proactive tool for reducing defects and non-
conformities.