From: Rakesh Kumar - Roll No 108 Sharmila - Roll No 135 M.

Srinath - Roll no 146 Srivatsan R - Roll No 147

The concept evolved from the work of Lawrence Miles who, in the 1940's was a purchase engineer with the General Electric Company (G. E. C)

What is Value?

Relationship between the defined function the customer requires and the costs incurred to provide that function. Cost Value Use Value Esteem Value Exchange Value

Any cost that can be removed without impairing the essential

Quality Performance Customer requirements Reliability Maintainability Marketability Schedule

Value Engineering is
Reliability Maintainability Producibility Human Factors Parts Availability Cycle Time Quality Weight Reduction

Save Money

Save Time

Build Teamwork

Why Value Engineering?

Satisfy customer

Improve Quality

When is VE used?
Existing part/product cost is very high Existing technology is old/complex and new alternatives are available Need to release a cheaper product Need to cut down manufacturing cycle time/cost Improve organization performance Reduce cost on existing projects, processes and services.

Improving quality

Increasing profits Decreasing costs Effective Resource Utilization Expanding market share

Successful results are dependent on the quality of information brought to the VE workshop for evaluation Product oriented and not time oriented. Thus improvements in production activities are not readily recognized Misunderstandings

cheapens the product without improving it only used for cost reduction

Can it eliminated without affecting function or reliability? Is its cost more than the benefits? Does it do more than required? Is there something better with which to do the job? Can it be made by a less costly method? Can a standard item or specialty product be used? Could a less costly technique be used? Should different tooling be used? Can someone else provide it at less cost?