Cost reduction through value engineering case study on tap switch control assembly

This section summarizes the VE study carried out on tap switch control Assembly used on distribution transformers, as illustrated in fig. The objectives of study were to bring down cost, simplify design and find an alternative to high cost material, without detriment to quality and reliability.

Fig 1. Transformer tap control switch before value analysis

1. The problem Transformer is one of the major products manufactured in a wide range, in national and international markets. In order to improve market and continue to have profit in the high inflation word, VE study was carried out on tap switch control assembly, used on distribution and power transformers. The main function of this unit is to facilitate the adjustment of turn ratio of primary to secondary windings of the transformer. Fig 1 shows the present design of the tap switch control assembly. 2. The objective The objectives of this study were to bring down cost, simplify design, and to find alternatives to high cost material, without detriment to quality and reliability. 3. The team As value engineering is inherently a team task, a group was formed consisting of personnel from all disciplines, such as design, manufacturing, quality assurance, marketing and value engineering to achieve the set goal. Team members were given training to enable them to use valueengineering techniques more effectively and meticulously during the study. 4. The methodology The value engineering study was carried out in a systematic and organized way, as per VE job plan, consisting of information phase, functional analysis phase, functional-cost-worth analysis, creative phase, evaluation phase, recommendations and implementation. These are now discussed. a. Information phase In this phase, team members collected all the relevant information about the items under study. The study of drawings, material specifications, designs, and processes cost, procurement and

quality problems, as also in-house and field complaints were made in detail. The tap switch control assembly is a subassembly used in all distribution and power transformers. It is often required to change the turn ratio of primary to secondary windings of transformers, to adjust b. Functional analysis phase The results of a value engineering exercise, generating good alternatives for achieving the desired functions at optimum cost, mostly depends on how well the functional analysis done. The functional requirement of the tap switch assembly as a whole is analyzed and recorded as below: Verb Facilitates Transmits Prevents Indicates Facilitates Prevents Noun Tap change Rotation Leakage Position Locking Rusting Basic/Secondary Basic Basic Basic Secondary Secondary Secondary

Further, the details of the functions of each component in the assembly were analyzed and listed (annexure B). c. Function-cost-worth analysis In this phase, the team found the worth of each item of the subassembly. After identifying the desired functions of each item, the team established the worth of each item, depending on its essential function. While establishing the worth, the definition of value, i.e., the lowest price one has to pay to reliably accomplish a given function, was used as the basis. The estimated worth was also based on other on other factors such as: State of art The accuracy of the available information Thoroughness of the functional analysis of the item An uncommon amount of commonsense The experience and subject knowledge of team members Critically examining the present design, the following points can be made: 1. The basic function of oil-tight gland (switch boss assembly) is to prevent oil leakage and provide support to the spindle (shaft). 2. Item 12, switch boss, is welded to the transformer tank. It is bigger in size, because it has to accommodate brass plug which has lesser worth (see fig.). 3. Item 13, plug is made out of brass. Its function is to position the oil seal. The cost of the brass plug is about 40 % of the total cost of the subassembly. When compared to its basic function, the worth of the plug is much less. 4. The stopper provided on anodized aluminum plate is made out of brass material to resist corrosion. 5. Spindle is machined in order to get smooth surface where the oil seal comes into contact with it. With the above information the team members analyzed function cost worth of each item of the subassembly and arrived at the value gap in each item, as given in annexure C. d. Creative phase The poor value (hidden cost) areas, identified earlier, were subjected to brainstorming, to find out alternative ways of accomplishing the functions. Criticisms and evaluation are avoided in the brain storming session, to prevent the premature death of potentially good ideas. Even wild ideas were noted down in line with basic VF principles.

During the brain storming session, a large number of ideas were generated for each item to perform the same function. Help was taken from experts who were involved in similar design and process. Vendors were contacted to contribute alternative ideas. In all, 35 ideas were generated for items of the subassembly; these are listed in annexure D. e. Evaluation phase The alternative ideas suggested during the creative phase were refined and analyzed with a view to ascertain, whether they could achieve the desired functions. This was carried out in two stages: In the first stage, all suggestions were studied and those, which could not be adopted because of quality, reliability or other basic reasons, were eliminated, and the others were shortlisted. In the second stage, the ideas shortlisted after first evaluation were critically studied and discussed with the concerned personnel, for feasibility and practicability of production. Thus, the ideas were further shortlisted after first evaluation were critically studied and discussed with the concerned personnel, for feasibility and practicability of production. Thus, the ideas were further shortlisted and assigned for feasibility ranking matrix. For judging the ideas, the following designs were considered: A function B cost C maintainability D quality and reliability E space Each of these design criteria was given a weightage factor. This was carried out as follows: each of the above criteria was compared with others, and depending on their relative importance, three categories were formed, viz. major, medium, and minor. A score of 3,2and 1 respectively was assigned to each of the levels. The details are as follows:

Weight age analysis Major difference Medium difference Minor differences Paired comparison B A B2 B C A2 B2 C D A1 B1 D2 D

Points 3 2 1 E A3 B3 C2 D3 E SCORE 6 8 2 5 1

Example: Note that the function A and quality D are closely connected with the weightage factor 3. Weightage for each criterion A: function 6

B: cost C: maintainability D: quality and reliability E: space

8 2 5 1

The following short listed ideas for the brass for the brass plug were taken for evaluation: a. M.S. cover plate instead of plug to hold oil seal b. Nylon plug c. Internal circlip to hold oil seal d. Handle itself as coverplate for oil seal Feasibility ranking A B C D E Score Rank Design 6 8 2 5 1 ideas A 1/6 2/16 1/2 1/5 3/3 32 IV B 3/18 2/16 2/4 2/10 1/1 49 II C 1/6 2/16 2/4 1/5 2/2 33 III D 2/12 3/24 3/6 2/10 3/3 55 I Note: 2/16 means score of 16 is achieved as 2 x 8 in row of a column of B. Similarly, the shortlisted ideas for other components were also evaluated.

f. Recommendations based on the feasibility ranking of ideas, team members made the following recommendations: eliminate brass plug, and its function has to be obtained by redesigning the handle suitably. Standard bright bars of shorter length to be used without machining O.D. for spindle. Switch boss has to be redesigned to lesser width. Stopper to be redesigned with internal thread and to be made out of aluminium rod.

Fig.2 Transformer tap control switch after value analysis

g. Implementation Fig 2 shows the proposed design of the tap switch control assembly. One prototype was built, as per VE team recommendation and tested for its performance and reliability. Based on the test results, thorough discussions were held with the concerned department, i.e., production shop, design office, quality assurance and sales and servicing, and their comments were obtained. Five more assemblies were made as per the proposed design and sent for field trails. After successful field trials and ensuring that quality and reliability were unaffected, the proposed designs were introduced in regular production.

Benefits of value engineering

1. Cost benefits a. Cost of subassembly before value engineering b. Cost assembly after value engineering (ref. Annexure E for cost benefit on each item) c. Savings per subassembly d. Expected annual savings 2.Other benefits a. simplified design b. reduction in assembly time c. reduction of components and less inventory Annexure A: Bill of material Component No. per Bought or assembly made Handle 1 B.O Spindle Brass plug Switch boss Dial plate Switch stopper Oil seal Hardware Total 1 1 1 1 2 1 B.O B.O B.O B.O B.O B.O B.O material Aluminium casting Steel bright bar Brass (Hex) Mild steel Aluminium plate Brass Rubber Steel Cost per piece 20.00 12.00 67.00 26.00 16.25 4.00 12.00 Cost per assembly 20.00 12.00 67.00 26.00 16.25 8.00 12.00 3.75 165.00 Secondary function-noun Rust Handle Rust Handle Support Rust Spindle Mechanical Leakage Rs 165.00 Rs 85.00 ____________ Rs 80.00 Rs. 96,000.00

Annexure B : function analysis Component Basic functionverb Handle Changes Provides Transmits Spindle Transmits Connects Plug Positions Switch boss Guides Holes

Basic functionnoun Position Grip Rotation Rotation Mechanical Oil seal Spindle Oil seal

Secondary function-verb Prevents Locates Prevents Locates Provides Prevents Guides Connects Prevents

Dial plate Switch stopper Oil seal Hardware

Indicates Restricts Prevents Connects Withstands

Position Over travel Leakage Parts Operative forces

Holds Facilitate Holds Prevents Prevents Reduces Prevents

Dial plate Locking Stopper Rust Rust Friction Rust

Annexure C : function-cost-worth analysis Component Present Functions Functionscost Noun -verb Handle 20.00 Transmits Rotation Changes Position Provides Grip Spindle 12.00 Transmits Rotation Locates Handle Brass plug 67.00 Holds Oil seal Prevents Rust Switch boss 26.00 Holds Spindle Seats Oil seal Dial plate Switch stopper Oil seal Hardware 16.25 8.00 12.00 3.75 Indicates Holds Facilitates Restricts Prevents Connects Prevents Position Stopper Locking Over travel Leakage Parts Rust

FunctionsBS B B B S B S B B B S B B B S

Worth (Rs) 15.00 8.00 6.00 16.00 15.00 2.00 12.00 3.75

Value gap 5 4 61 10 1.25 6 0 0

Annexure D : Through brainstorming Item Ideas generated Handle 1. Cast iron handle 2. Extended boss in handle for positioning the oil seal 3. M. S. fabricated handle, with plating 4. Spindle and handle one piece made of aluminium or cast iron 5. Spindle and handle one piece made of DMC or polymer Spindle 1. Standard bright bar for spindle 2. Short length spindle 3. Made out of DMC 4. Aluminium rod 5. Polymer rod

Brass plug

Switch boss Dial plate Switch stopper

6. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 1. 2. 3. 1. 2. 3. 1. 2. 3. 4. 5. 6.

Bakelite rod M.S. coverplate instead of plug to hold oil seal M.S. plug with plating Plastic plug Nylon plug Internal circlip to hold oil seal Die cast aluminium Hard rubber plug Spring loaded pressure plate Handle itself as coverplate for oil seal Threaded wooden plug Eliminate brass plug from the assembly Dial plate itself as coverplate Lesser boss width Cast iron switch boss Put switch outside the oil Fibre reinforced plastic or plastic painted plate Sticker on tank wall instead of displate Bakelite plate with engraving Mold steel plated stopper Internal threaded stopper Internal threaded aluminium stopper Small dia. Stopper Steel screws instead of special stopper DMC with metal inserts

Annexure E : Benefits Of Value Engineering Tap switch control assembly Items Before VE Rs. Handle 20.00 Spindle 12.00 Brass plug 67.00 Switch boss 26.00 Dial plate 16.25 Switch stopper 8.00 Oil seal 12.00 Hardware 3.75 Total 165.00 After VE Rs. 22.00 8.00 16.00 16.25 2.00 12.00 3.75 80.00