Batch 4 Value Engg.

7/26/2019 Batch 4 Value Engg.

1/27

Value Engineering

BY:

13M117 GOWTHAM

13M118 GURU MANOJ13M119 GURUVISHNU

13M121 HARINI

13M122 HARI SHANKAR


2/27

Defnii!n "n# $e"nin%

Value Engineering is a techniqueapplied to identifying optimum valuesolutions during new productdevelopment.

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i. &e)) e5-en)i/e "&e(n"i/e)6i.!' )"+(if+in% 0'n+i!n"&i* I i)0!+')e# )!&e&* !n .e 0'n+i!n) !0/"(i!') +!$-!nen) "n# $"e(i"&)6(".e( ."n .ei( -.*)i+"& "(i4'e)

A&)! +"&&e# /"&'e "n"&*)i)


3/27

V"&'e n%inee(in% i)

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;i0e+*+&e +!) !(iene#

V"&'e !(iene#

?'n+i!n4")e# "n"&*)i)

?(ee !0 n!($"& #e)i%n (e)(i+i!n) A -(!/en $"n"%e$en e+.ni@'e


4/27

VA;U NGINRING VE and creative method to increase the value of

an item. This "item" can be a product, a system,a process, a procedure, a plan, a machine is anorderly, equipment , tool, a service or a methodof working.

Value Engineering is dened as the

professionally applied, team based, function !oriented, systematic application of recogniedtechniques #function analysis$ which

%.&dentify the "function of a product, process,pro'ect, facility design, system or service,

(. Establish a monetary value for that function,

). *rovide the necessary function #dened by thecustomer to meet his + her requirements$,

.-onsistent with the specied performance and

reliability needed at the lowest &ife cycle costcost over the e ected life .


5/27

V"&'e n%inee(in%

Value and cost

Value 1 2unction

-ost

Value: W." .e -(!#'+ i) !(. ! .e +')!$e(

2unction: (!-e(ie) "n# @'"&iie) !0 -(!#'+

-ost: M!ne* /"&'e !0 $"e(i"&) ')e#6 ;"4!'( in#i(e+ +!))


6/27

n% nee( n%TRMINO;OGY

&n value method terms 3 Value of an item 1 *erformance of its

function + -ost45

Value 1 6 #7$ + 6 #!$ 1 6 #8enefits$ + 6 #-osts$

%.Value greater than %.9, the item is perceivedto be fair or having good value.

(.Value is less than %.9, the item is perceivedto be having poor value.

).:hen an item has a perceived worth that fareceeds the life ; cycle cost, we usuallyconsider purchasing the item.

.0n item that does its function better thananother, has more value. 8etween two items

that perform their function equally well, theone that costs less is more valuable.


7/27

TH VA;U CUATION Value Engineering evaluates a product

utility, esteem and market values, eachof which are dened below 3


8/27

" 'en%inee(in%

T.e !4e+i/e) !0 V"&'e n%inee(in% i) !fn# "n# i$-(!/e !n /"&'e $i)$"+.e)in -(!#'+)6 -(!+e))e) "n# +"-i"&-(!e+)

?in# i$-!("n 0'n+i!n) #efnene+e))"(* /e()') 'n ne+e))"(*0'n+i!n)

?in# "n# i$-(!/e !n &! -e(0!($in%0'n+i!n)

Defne "n# )e%(e%"e .e ne+e))"(*

0'n+i!n) 0(!$ .e 'nne+e))"(*


9/27

! e ! 'n+ !n nn%inee(in%

2unction3 The use of functions and a function ! logic

process to describe needs, purposes andconsequences is at the heart of ValueEngineering.

The use of function ! logic helps people realieand overcome many of the preconceived biases.

2unction allows denition of each task in aprocess or one of its activities in terms of endgoals and not solutions.

*lacing those functions in a decision ! logicdiagram helps reach a common understanding.

&t also helps people see what parts of theirdecisions rely on critical features, and wheredecisions are requiring substantial support tomaintain them #potential value!mismatches$.


10/27

TRMINO;OGY

>i?erent customers will interpret the

value of a product in di?erent ways. The @performance of its functionsA

could include that it is beautiful#where needed$ or it lends an image tothe user + possessor #where desired $

&ts common characteristic is a highlevel performance, capabilities,

emotional appeal, style, etc. relative toits cost.

This can also be epressed asmaimiing the function of product

relative to its cost 3


11/27

! e ! 'n+ !n nn%inee(in%

2unction3

Value analysis denes a "basic function" asanything that makes the product work or sell.

0 function that is dened as "basic" cannotchange.

Becondary functions, also called "supporting

functions", described the manner which thebasic functions were implemented.

Becondary functions could be modied oreliminated to reduce product cost.

Value is not a matter of minimiing cost.

&n some cases the value of a product can beincreased by increasing its function#performance or capability$ and cost as long asadded function increases more than its added

cost.


12/27

NGINRING

2rom a generic point of view, VE

%.Enables people to pinpoint areas that needattention and improvement.

(.*rovides a method of generating ideas and

alternatives for possible solutions toconcern.

).*rovides a means for evaluatingalternatives. .

.0llows one to evaluate and quantifyintangibles and to compare apples withoranges.


13/27

NGINRING

/.*rovides a vehicle for dialogue by allowing large

amounts of data to besummaried in concise form, allowing new andbetter questions to be asked, and using numbersto communicate in an information!searchingmode.

D.>ocuments the rationale behindrecommendations and decisions.

.=aterially improves the value of goods andservices.

F.Th need of knowing Value "4pportunity" &ssues

#low satisfaction+high value$ to know what to


14/27

NGINRING

Value 0nalysis has been successful in several

domains and its application is only limited bythe users creativity.

Bome application areas are ! >efenseG

0utomotiveG 0eronauticalG Boftware

developmentG :ater treatmentG -ivilengineeringG systems and procedures, ventureanalysis, forecasting, resource allocation,marketing, -lient servicesG :ork processesG>ocumentationG 4rganiational developmentG

etc.

Customer satisfaction and value perception !!The most common application of Value 0nalysisis what many have called the "state ; of ; the ;

art " customer satisfaction and value perceptionstudy.


15/27

NGINRING

Cere are some of the ways the study pays o? for

clients3

They need to be competitive on the "8asics" #highsatisfaction+low value$ ; not allowing any weaknessesin, but not investing more than necessary in them. .

They need to dominate the "Value" &ssues #highsatisfaction+high value$. .

They need to know the Value "4pportunity" &ssues#low satisfaction+high value$ to know what to invest infor future growth.

They need to know the "&rritations" #low

satisfaction+low value$ to know where to innovate.


16/27

NGINRING

Identifying At Risk Customers !0 big issuetoday is the so!called "0t 5isk" customer#those likely to defect$.

Value 0nalysis ndings help to determine why

a companys customers are 0t 5isk.

0nd, rms can learn why ma'or competitorscustomers are 0t 5isk so they can be targeted.

increasing Employee Loyalty !Value 0nalysisstudies are conducted amongemployees to identify things they epect fromany company they work for #The 8asics$, things

they value, things that irritate them and thingsthey dont care about.


17/27

NGINRING

New Product + Service Development !Every marketer has been involved in astudy where consumers "say" they are"very interested in trying a new productwhich subsequently fails in themarketplace.

2ailure is often considered the consumersfault whereas it really results from askingthe wrong question.

*eople dont buy what they are"interested" in, they buy what they value.

!e reason most new products fail is t!att!ey don"t provide enoug! #new value# toconsumers$


18/27

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In/e)i%"i!n .")e

S-e+'&"i!n .")e

/"&'"i!n -.")e

De/e&!-$en -.")e


19/27

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(e)en"i!n .")e

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A'#i .")e


20/27

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In/e)i%"i!n .")e:

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"n"&*)i)6 "n# e"$ 0!+') "n# !4e+i/e)

S-e+'&"i!n .")e:

Be +(e"i/e "n# 4("in)!($ "&e(n"i/e-(!-!)"&) "n# )!&'i!n)


21/27

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22/27

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23/27

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RINI;S O? TH VA;U


24/27

RINI;S O? TH VA;UMTHODO;OGY

The philosophy of VE is implemented through asystematic rational process consisting of aseries of techniques, includingG

%. 2unction analysis to dene the reason for theeistence of a

product or its components,(. -reative and speculative techniques for

generating new

alternatives, and

). =easurement techniques for evaluating thevalue of present

and future concepts.

Value 0nalysis is based on the fundamentalprinciple that the

customer is always looking for the best


25/27

V"&'e n%inee(in% A--(!"+. N! )"n#"(# "--(!"+. #i)+')) i. e"$$e$4e()Bub'ect 8asic

question

0nalysis 0nswer

2unction W."

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e&i$in"i!n

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> I) .e +'in% #!ne e+!n!$i+"&&*

i.!' ")e


26/27

V"&'e n%inee(in% A--(!"+.

Bub'ect 8asic

question

0nalysis 0nswer

Iabour

:hich are the

direct labour

costsJ

%$ 0re all the operations necessaryJ

($ :ill alternative operations be

cheaperJ

)$ -an certain assembly operations

be modiedJ

*rocess A(e .e 4e)

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$!#ife#

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27/27

W")e !n(!&

5easons for wastages in industry

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(!-e( in/en!(* +!n(!&

M"e(i"&) $"n"%e$ene+i/e !!(#in"i!n "$!n% #e-"($en)

Batch 4 Value Engg.

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