Value Analysis

Value Analysis and Value

Engineering
Can be defined as an organised and
systematic approach to provide the
required function at the lowest cost
consistent with specific performance,
quality and reliability.

Concept of Value

1)

Use Value

2)

Esteem value

Steps in Value Analysis

1. Collect data about cost function,customer
needs, history, future developments.
2.Develop alternative designs.
3. Ascertain the cost of the alternative.
4. Evaluate the alternatives.
5. Recommend and implement the best
solution

Factors Influencing Product

Design or Redesign
Customers perspectives
- Functions
- Aesthetics
- User friendliness
- Esteem associated with
possession

Contd . . . .
Organisational perspective
- Intrinsic cost of Material
- Intrinsic cost of Labour
- Replacement, Exchange and
Disposal

Methods of Value Analysis

Eliminate parts in operation.
Simplify parts in operation.
Substitute alternative materials.
Use standard parts in materials.
Relax manufacturing tolerances.
Use standard manufactured parts.
Eliminate unnecessary design features.

Change Design to Suit Manufacturing

Buy if cheap than make.
Use pre-finished materials.
Use pre-finished parts.
Rationalize product range.
Substitute labour cost manufacturing
process
Rationalize and standardise low cost
purchased parts.
Eliminate material waste.

Phases of Value Engineering

Orientation
Information
Functional
Speculation/Creation
Evaluation/analysis
Recommendation
Implementation
Audit follow up

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