Value Engineering Pom

Value Engineering ByJyoti Sinha (B08011) Nabendu Kar (B08017)

Agenda

• • • • •

What is Value engineering? Brief History What is value? Applicability Value Methodology -Pre-workshop - Workshop -Post Workshop

• FAST • Benefits/Weakness

• Value Engineering (VE), also known as Value Analysis, is a systematic and function-based approach to improving the value of products, • What is Value engineering? projects, or processes. • It is a function-oriented, systematic team approach to providing value in a product or service.

• Brief History

• Began at GE early 1940’s • 1947 - Value Analysis - Lawrence D. Miles - “Father of VM”

• 1954 - Value Engineering - U. S. Navy

• Value is a personal perspective of your willingness to pay for the performance delivered by a product, process or project. • What is value?

VALUE = What we get out of something What we put into it

• To Increase Value F F F

F

C

C

REDUC E

C INCREAS E

C MAINTAI N

• Construction projects. • Applicability

• Manufactured products. • Business systems and processes.   • Service organizations.

• How is it Applied? • Methodology – PRE-STUDY – VALUE STUDY • Information Phase • Function Analysis Phase • Creative Phase • Evaluation Phase • Development Phase • Presentation Phase

– POST-STUDY

• How is it Applied?

• Information Phase - Review project data - Prioritize strategic issues - SWOT Analysis - Determine Value Study Expectations - Visit Site or facility

• Function Analysis Phase - Identify the project functions - Classify project functions - Function Analysis System Technique (FAST) - Value Index

• How is it Applied?

• Creativity Phase - Generate alternate ideas that may improve value. - Brainstorming, Check Lists, & Other Techniques

• Evaluation Phase

- Rank & Rate IDEAS - Select IDEAS for Development

• How is it Applied?

• Development Phase - Create Cost-Benefit Analysis - Produce Support Material - Generate Implementation Plan

• Presentation Phase - Present Study Results - Compare the study conclusions with Information and Function Analysis - Ensure all relevant data available - Create an anticipated implementation plan

• How is it Applied?

• Complete Changes

• Implement Changes

• Monitor Status

• Function need be defined as Verbs and Nouns. eg

C

Active Verbs Generate Convert Information Receive

• Function Analysis

Nouns Signal

Data

• FAST (Function Analysis System Technique) - A logic diagram to describe how a system works.

- Classical FAST model - Hierarchy Function model - Technical FAST model - Customer-Oriented FAST model

FAST Example HOW KILL MICE

WHY POISON MICE

EAT POISON

•Spray Poison •Eat Bait Trap Mice •Inject Poison •Drink Bait Electrocute Mice •Step on Poison•Smell Bait Shoot Mice •Eat Poison Gas Mice •Shoot Poison Drown Mice Use Snake Poison Mice

EAT BAIT •Attract Mouse •Trap Mouse

ATTRACT MOUSE

• Benefits

• Decreasing costs • Increasing profits • Improving quality • Expanding market share • Saving time • Solving problems • Using resources more effectively

C

• Weakness

• Dependent on the quality of information • VE is not time oriented, but, product oriented. • many misunderstandings and biases -”It cheapens the product without

improving it.” - “VE is only used for cost reduction.”

Potential Savings from VE No engineering Change Revision

Document Revision Re-Test/Re-qualification

Drawings Released

Tooling Changes

Net Savings from VE Total Cost of VE Implementation

VE Implementation beyond this point results in a net loss.

Concept

Design

Engineerin g &Productio n Release

Production

Value Analysis is a continuous process

•

Thank you