BIRLA VISHVAKARMA MAHAVIDYALAYA

DEPARTMENT OF CONSTRUCTION ENGINEERING & MANAGEMENT

VALUE ENGINEERING (5CM43)

Case Study on Implementation of Value Analysis in Civil

Instrument Manufacturing Process
Presented By:
Parakhiya Shyamal (19CM805)
Sunetra Datta (19CM806)
Phanse Ashish (19CM807)
Parikh Jeet (19CM808)
INTRODUCTION TO VALUE ANALYSIS

 Value Engineering (VE) and Value Methodology are the two important constituents of Value
Analysis.
 It is a methodical implementation of various tools and techniques by a multidisciplinary team.
 The team recognizes and categorizes the functions of a product and help in developing the
alternative cost effective product with its value. In present day world, each one needs the
desired product with best quality within the cost-effective zone.
 In this paper a case study is discussed showing implementation of Value Analysis principle in
sub-assembly hydraulic Jack having a quality issue, used in compression testing machine
INTRODUCTION

 Value Engineering establishes the relationship between worth and cost of a product by
analysing its functions to determine the best value.
 When a product performs its required functions consistently at a lowest life cycle cost while
maintaining the quality, it is termed as best value of that product.
 It has been proved that Value Engineering capable of reducing costs by 25% to 45% or even
more without affecting its quality.
 With the rapidly increasing modernization, customer needs new designs and technologies to
perform its tasks.
 The value analysis/value engineering plays a vigorous role in the improvement of quality
without compromising on value of the equipment. Now a day’s organizations could only
stand on quality and functionality of the product.
10 BASIC PRINCIPLES BY L.D. MILES FOR VALUE ANALYSIS
 Does the use contribute to value?
 Is it cost proportionate to its usefulness?
 Does it need all its features?
 Is there anything better for the intended use?
 Can a usable part be made by a lower cost method?
 Can a standard product be found that will be usable?
 Is it Made on proper tooling – considering quantities made?
 Do materials, reasonable labour, and profit total its cost?
 Will another dependable supplier provide it for less?
 Is anyone buying it for less?
CASE STUDY ON AIMIL Ltd.

 Aimil Ltd. is a civil instrument manufacturing company, located in New Delhi. It is an

ISO 9001: 2008 certified & NABL Accredited Laboratory for Testing & Calibration as
per ISO/IEC/IS 17025:2005 in various parameters.
 The purpose of this case study is to closely view implication of Value Analysis on its
civil instrument manufacturing assembly.
 To have in depth analysis case study has been done as per the co-relation with
requirements of quality level and productivity rate of plant.
CASE STUDY ON AIMIL Ltd.

 Aimil Ltd. being a civil instrument manufacturing company, their products range from
various domains of civil engineering.
 They manufacture instruments for testing materials like, Concrete, Soil, Asphalt,
Bitumen, Cement, Mortar, Sand, Aggregates, Tiles, Rock and other equipment required
by laboratory.
 So it becomes essential to narrow down our scope of study to understand the effect
of application of VA on company.
INSTRUMENT SELECTION PLAN
INSTRUMENT SELECTION PLAN

 Thus it is identified that to achieve complete customer

satisfaction, it is necessary to study the concrete testing
instruments as they contribute to almost 42% of sales and
also receives most complaints (52%).
 In concrete section, Compression Testing Machine (CTM)
is the most important instrument.
 The next step is to analyse the complaints received from
customers of CTM.
 It is evident from the given bar
chart, that most of the complaints
are received for the leakage from
Hydraulic Jack Assembly.
 Thus we have narrowed down our
scope from various categories to a
instrument assembly and then to a
sub assembly – Hydraulic Jack.
FUNCTIONAL ANALYSIS OF HYDRAULIC JACK

 To understand the problem, it is required to first understand the machine by general

components of the machine. Compression Testing Machine basically consist of three
main parts:
a) Load Frame consist of Hydraulic jack, spacer & platen set.
b) Digital Indicator for read the load reading.
c) Pumping Unit for converting the pressure into
load by hydraulic jack.
 Creativity Phase
This phase requires a certain amount of creative thinking by the team. All rules of
brainstorming are allowed, and criticism was needed to be avoided. The main idea highlighted
during the discussion was to develop a new design of jack assembly which could eliminate
the root cause.

 Evaluation Phase
Here the VA team considered all the ideas developed during the creative phase with their
viability & gave them ranking. Irrelevant ideas were disregarded and those ideas that
represents the greatest potential for cost savings & improvement were selected for the
implementation.
 Development Phase
In this phase, design of jack assembly had many problems so it
was decided to develop a new design which could eliminate
the mentioned problems. Thus, hydraulic jack assembly was
changed to avoid the leakage problem.
In earlier process, three metallic rings with bucket seal were
used for oil leakage while in new design these were replaced
with Ram seal & Teflon ring for preventing the oil leakage. The
new design was also simple to manufacture and more efficient
in its function.
 Presentation Phase
After the successful implementation of the new design, its effects were analysed through
feedback obtained from customers and through sales figure. Thus, in this phase the effects of
the change applied are presented to analyse the implementation of Value Analysis.
INCREASE IN COST SAVINGS DUE TO VALUE ANALYSIS
RESULTS AND DISCUSSION

 It is evident from this case study that application of Value Engineering is one of the
important factors to improve the performance and profit of an organization.
 It results in significant improvement in quality and reliability of the products by eliminating
the unnecessary problems associated with that product while manufacturing.
 Advantages includes increase in overall production, reduced manpower, reduced wastage
sequential reduction of the cost.
 With the decrease in the cost there should be increase in the value of the product.
 In this final phase of value analysis overall saving of the product have been calculated, these
tables are known as cost cutting calculation sheets.
CONCLUSION

 Through this case study we identified the following benefits of applying Value Engineering.
a. Speed of getting an effective design
b. Reliability and durability of the product
c. Low overall cost
d. Enhanced quality and compliance with minimal costs
e. Differentiation by creating product designs as platforms.
f. Some basic & direct benefits such as material saving, reduction in labour cost, reduction in
production time.
g. Fewer inventories and increased overall efficiency.
REFERENCES

 PunitK.,2017, “Implementation of Value Analysis in an Indian Industry: A Case Study”,

International Journal of Theoretical and Applied Mechanics, vol. 12, pp. 33-48.
THANK YOU