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

• What is Value engineering?

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

• Began at GE early 1940’s • Brief History

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

• What is value?

• To Increase Value F

F

F

F

C

C

C

C

REDUCE

INCREASE

MAINTAIN

• Construction projects. • Applicability

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

• How is it Applied? • Methodology PreWorkshop

– PRE-STUDY – VALUE STUDY • Information Phase • Function Analysis Phase

Workshop

• Creative Phase • Evaluation Phase • Development Phase • Presentation Phase

PostWorkshop

– POST-STUDY

• How is it Applied? PreWorkshop

Workshop

PostWorkshop

• 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? PreWorkshop

Workshop

PostWorkshop

• 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? PreWorkshop

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

• Presentation Phase Workshop

PostWorkshop

- 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? PreWorkshop

Workshop

PostWorkshop

• Complete Changes

• Implement Changes

• Monitor Status

• Function need be defined as Verbs and Nouns. eg

C

Active Verbs

Nouns

Generate Convert Receive

Signal Information Data

• Function Analysis • 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 Trap Mice Electrocute Mice Shoot Mice Gas Mice Drown Mice Use Snake Poison Mice

WHY POISON MICE

EAT POISON

•Spray Poison •Eat Bait •Drink Bait •Inject Poison •Step on Poison •Smell Bait •Eat Poison •Shoot Poison

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
o engineering Change Revision

Document Revision Re-Test/Re-qualification

Drawings Released

Tooling Changes


et Savings from VE

Total Cost of VE Implementation

VE Implementation beyond this point results in a net loss.

Concept

Design

Engineering &Production Release

Production

Value Analysis is a continuous process

•

Thank you