VALUE ENGINEERING

ANALYSIS

1)Value Analysis (VA) is also known as VALUE

Engineering (VE), Value Assurance and VALUE
Management (VM). it is an approach for improvement in
the performance of the products, systems
or procedures and reduction or elimination of cost,
without affecting the function.
2)Value analysis as an organization creative approach
which has for its purpose the efficient identification
of unnecessary cost, i.e., cost which provides neither
quality, nor use ,nor life, nor appearance, nor customer
features. VA is normally used in the area like customer
service plans in banks, slum development, motivational techniques,Teh

2)Value analysis as an organization creative

approach which has for its purpose the efficient
identification of unnecessary cost, i.e., cost
which provides neither quality, nor use ,nor life,
nor appearance, nor customer features.
VA is normally used in the area like customer
service plans in banks, slum development,
motivational techniques, Techniques.

VALUE ENGINEERING JOB PLAN

1. THE JOB PLAN IN FOLLOWING SEVEN STEPS:
2. GENERAL PHASE
3. INFORMATION PHASE
4. FUNCTION PHASE
5. CREATION PHASE
6. EVALUATION PHASE
7. INVESTIGATIN PHASE
8. RECOMMENDATION PHASE

General phase
It is the most demanding phase of a VA
job plan. It creates the right environment
for successful VA. In this phase ,
emphasis is placed on human interaction
to seek co-operation of the team ton
implement VA. Work done on specifics,
rather than on generalities. The resistance
to change is to be overcome.

Lack of information:
Most people who design a product are quite often not too
sure of the real needs of a user and usually over-design
the product by providing it with features that the user just
does not use.
The world is advancing exceedingly fast and new
technology, new products, new materials and new
processes are coming up almost every day. They create
obsolescence in respect of the old processes. Costs
which were considered satisfactory yesterday become
unnecessary today. In the face of competition the royal
road to ruin is to adopt the methods of yesterday to the
business of today.

Information phase :
here an attempt is made to assess the potential of value
improvement. project is studied in detail and all important fact are
gathered and considered. in this phase, fact which are in the form
of technical specifications or environmental specifications down.
development are considered. also, the engineering drawings,
production sample, production data are all kept in mind. The cost
data and work specifications are secured. consumer preferences
are jotted and testing are studied. quantities and scrap are taken
in account. a relationship is to be established between cost and
specification or requirements.

Function phase:
Here the product is defined in term of its
functions, in term of its performance
expectations. These functions are corelated with cost and their worth.
Most of the times, an attempt is
made to define functions with only two
words ---A verb and noun. It makes the
definition pretty sharp. It introduces an
element of rationality into the exercise, by
trimming the frills.

Some function Definitions

product

function

Tea cup
Light bulb

Hold tea (liquid)

Emit light

Gas lighter
Fan regulator
Match box
Mirror
Brake
screwdriver

Provide ignition
Regulator speed
Provide ignition
Reflect light
Arrest motion
Transfer torque

Another technique which is used under this phase is

to evaluate function relationship by ranking function
in descending order of importance. Simultaneously
relative value of their importance determined.
Paired comparison method is fairly common
amongst researchers. it determines numerical value
of various functions. Here pairs of function are
compared to know their importance and to assess
basic or secondary. Generally a products basic
function is one ,but it may possess several
secondary functions. Basic function can be restated
in more ways than one.

Creation phase
Lack of ideas

Most of use want previously tried out materials,

designs processes and procedures. We jump at
the first ideas that work and usually do not
bother to find out if better methods are possible.
These days to give a fillip to creative ideas,
brainstorming technique are used. To nurture
creativity, positive thinking is established.
Creative ideas are also developed by a number

Evaluation phase:
Creative ideas generated during the Creation phase are
screened for their feasibility, cost effectiveness and
practicability at this stage. For this purpose, ideas are
further refined or combined together. Cost of all ideas
and savings resulting from their implementation are
studied. Decision-matrix can be set-up to evaluate on
basis of various criteria.

Investigation phase:
It is virtual extinction of the previous phase. ideas
accepted are here converted into acceptable and
workable solution to perform the desired function
at the least cost. It may be necessary to
standardize, to consult vendors and specialists,
and to use specialty products, processes and
procedures.

Recommendation phase:

It is the ultimate phase of VA. Finally selected value

alternative here in presented for implementation on
acceptance. Acceptance is the key to success of VA.
Sometimes, acceptance is a result of presentation or a
combination of both. All the relevant data is kept before
management to enable it to take suitable decision.

Alternatives of job plan:

Instead of the Recommendation phase
method we can adopt FAST or DARSIRI,
which is an acronym for data Collection
(D), Analysis (A), Record of ideas (R),
Speculation (S), Investigation (I),
Recommendation (R), and Implementation
(I) .
FAST (Functional Analysis System
Techniques)

Fast as VE Technique:
This technique is developed by Charles W Bytheway(1965),
FAST is a visual representation of functions and identifies
the areas of greatest impact of these function on costs. It
is an interaction between function and cost.
The following step are followed for construction FAST
1) Use verb and noun for describing functions.
2) These functions are written on small cards.
3) First select the basic function card. :
(i) How is the function performed?
(ii) Why is it performed?
(iii) When is it performed?
The logical sequence of function (basic and secondary)
generate a critical function path. It consist of only critical
functions.

Case study

Data
collected

Function, cost current(450 amps) C\section, other

conductors and their costs, etc.

function

Conduct Electricity

Cost

52 units per cable.

Worth

17 Units (steel cable with increased cross section could also

conduct at cheaper cost).

Creative
phase

Ideas to use cast iron, steel, aluminum, Nicro-alloys, silver,

etc. generated.

Evaluation After analyzing different ideas aluminum was considered

best and investigated regarding its feasibility, economy and
related problems like bi-metallic corrosion between
aluminum and brass lugs ets.
Recomme Aluminum cable of 120mm2 *1.5meters with zinc alloy
ndation
sleeves and brass lungs recommended.
Saving

30 units per cable (57% cost difference between copper and

aluminum+ cost increase due to addition of zinc alloy
sleeves).=30*50,000; =15 lakh units per year

Organizational Aspects of VA
VA required top management support top management support. The
VA also requires team work. The VA function can be organization its
size, operations, product-line etc.It can be administered by staff at the
corporate office or it may be run on decentralized basis or a balanced
combination of both. A decentralized and local VA group is accepted
as a helpful service. This is specially effective when manufacturing
units are set up on production line basis and are autonomous cost
and profit centers. VA however is not as firmly entrenched as
marketing, finance and other corporate functions. There are frequent
resistance problems to VA. Its endorsement at the top level leads to
acceptance at the lower levels. VA is also affected by the
management level to which it reports- it must be wide enough to
cover all areas affecting the validity of the study, high enough to
communicate with decision-making responsible for implementation,
powerful enough to communication with decision-makers responsible
for implementation, powerful enough to control and take responsibility
for the administration and assignment of VA group.

data collection=====function, cost

function============furniture
cost=========2000RS
worth=======chipper than iron just 450RS
creative phase========ideas to use fiber instead of iron
evaluation===========after analyzing different ideas fiber
was considered best
recommendation=======fiber is polymer plastic recycle and
made in just cost of 450 RS
saving===============1550 RS

Benefits from value Analysis

1. A Reduction in cost of existing products
or system.
2. Prevention of unnecessary cost in new
product