VALUE ENGINEERING

GROUP MEMBERS IRFAN: SHUMAILA: ANDILIB: SHADAB: ZEESHAN: ROHAN:

ROLL NUMBERS

WHAT IS VALUE ENGINEERING

 IT IS A FUNCTION CREATED, SYSTEMATIC

TEAM APPROACH AND STUDY TO PROVIDE VALUE IN PRODUCT, SYSTEM OR SERVICE.

 OFTEN THIS IMPROVEMENT IS FOCUSED ON

COST REDUCTION, HOWEVER OTHER IMPORTANT AREAS ARE CUSTOMER, PERCEIVED QUALITY AND PERFORMANCE WHICH ARE OF PARAMOUNT IMPORTANCE.

DEFINITION OF VALUE ENGINEERING

 IT IS AN ORGANIZED APPROACH TO PROVIDING THE
NECESSARY FUNCTIONS AT THE LOWEST COST:(FROM THE BEGINNING THE CONCEPT OF VALUE ENGINEERING WAS SEEN TO BE COST VALIDATION EXERCISE, WHICH DID NOT AFFECT THE QUALITY OF THE PRODUCT).

 IT IS AN ORGANIZED APPROACH TO THE

IDENTIFICATION AND ELIMINATION OF UNNECESSARY COST:(UNNECESSARY COST IS COST WHICH PROVIDES NEITHER USE, NOR LIFE, NOR QUALITY, NOR APPEARANCE, NOR CUSTOMER FEATURES.)

BENEFITS OF VE IN ORGANIZATIONS
 LOWERING ORGANIZATION AND MANAGEMENT
COST

 IMPROVED QUALITY MANAGEMENT  SIMPLIFY PROCEDURE  MINIMIZE PAPERWORK  LOWERING STAFF COST

WHERE VALUE ENGINEERING HELPSu

 IMPROVING CAREER SKILLS.  SEPARATING | SYMPTOMS} FROM | PROBLEMS}.  SOLVING ROOT CAUSE PROBLEM AND CAPTURE
OPPORTUNITIES.

 BECOMING MORE COMPETITIVE BY IMPROVING |

BENCHMARKING} PROCESS.

HOW VALUE ENGINEERING IS APPLIEDu

 TECHNIQUES GOVERNED BY STRUCTURED
DECISION MAKING PROCESS TO ACCESS VALUE OF PROCEDURE OR SERVICES.

 IF UNSATISFACTORY, JOB PLAN IS FOLLOWED.  8 PHASES: 1.) ORIENTATION. 2.) INFORMATION. 3.)
FUNCTION. 4.) CREATIVE. 5.) EVALUATION. 6.) RECOMMENDATION. 7.) IMPLEMENTATION. 8.) AUDIT.

WHAT IS VALUE ANALYSIS AND VALUE

MANAGEMENT


VALUE ANALYSIS: IT IS AN ORDERLY 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, EQUIPMENT, TOOL , A SERVICE OR A METHOD OF WORKING. VALUE ANALYSIS, ALSO CALLED FUNCTIONAL ANALYSIS WAS CREATED BY L.D. MILES.

VALUE MANAGEMENT: VM IS A PROBLEM SOLVING

TOOL THAT CAN REDUCE COST WHILE MANUFACTURING, IMPROVING, PERFORMANCE AND QUALITY REQUIREMENT. ( SAVE INTERNATIONAL)

VALUE ANALYSIS(REMEDIAL PROCESS)

 WHAT WENT WRONG  IT IS AN APPLICATION OF SET OF TECHNIQUES TO

AN EXISTING PRODUCT WITH A VIEW TO IMPROVE ITS VALUE.

WHY FAVOR VALUE ENGINEERING

 UNIVERSAL APPLICATION  SUPPORTING ALL EXISTING TECHNIQUE(PROBLEM
SOLVING TECHNIQUES)

 TEACHABLE METHODOLOGY  USEFUL BY EMPLOYEES AT ALL LEVEL  IMPROVES STUDY SUCCESS RATE  PAYS FOR ITSELF

PERCEIVED PROGRAM IMPACT:

ACTIM
 IMPROVED

FEAR  UNOBLIGATED
FUNDS SIGNALS POOR PERFORMANCE WORKLOADS. DEMANDS ON LIMITED MONEY. DILUTES OPERATIONAL PERFORMANCES.

PRODUCTIVITY SAVE MONEY

 ENCOURAGE

 INCREASE

SUGGESTIONS GENERATE LCC SAVINGS. ENCOURAGE STUDIES

REASONS FOR UNNECESSARY COSTu

 LACK OF IDEA

 LACK OF INFORMATION  TEMPORARY CIRCUMSTANCES  HONEST WRONG BELIEF  HABITS AND ATTITUDES

FUNCTION OF SPACE
THE WHOLE BUILDING

OFFICE: CENTRALIZE STAFF

AUDITORIU M: OCCUPANTS

CAFETERIA: FEED PEOPLE

WHAT IS VALUE
 COST+ PROFIT= PRICE  VALUE IS=
ALL FUNCTION/COST

FUNCT ION

COST

WHAT IS VALUE
 THE LOWEST COST TO ACHIEVE A FUNCTION DETERMINE BY
COMPARISON
COMPARISON

HISTORICAL DATA PERSONAL EXPERIENCE VALUE=

UTILIT Y

PRICE

METHODS TO FIND FUNCTION OF PRODUCT

 |WHAT DOES IT DO.?}  THE BASIC FUNCTION OF THE PRODUCTION TO
BE SELECTED

 DISMANTLED PRODUCT