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Value Analysis and Value Engineering
Value Analysis and Value Engineering
VALUE ENGINEERING
THE WORLD SCENARIO
VE IN USA
1947 1954 1959 1990s 1955 1959 1965 1973 1990s 1965 1979 General Electric Asbestos Affair Department of Defence Save Established Most organised sectors practising JPC sent troop to USA to search Cost Control VA Program started SJVE established Boost to VE during Oil Crisis Practically all organised sectors practising No organised effort VE Directorate INVEST established Few organisations following in low key Need of the hour
VE IN JAPAN
VE IN INDIA
APPLICATIONS OF VE
Automobile Industry. Heavy Electric Equipment Industries Ship Builders Railways & Heavy Vehicles Mfr. Electrical & Communication Machinery Mfr. Fabrication Industries Process Industries Metal, Fibre, Food, Chemical & Steel Architectural & Construction Firms and also All Service Sectors
DEFINITION
VALUE ENGINEERING : VE is an analytical, Step-wise, organised, creative team-approach designed to examine all the facets of cost & functions of a PRODUCT/EQUIPMENT/ SYSTEM to identify and eliminate unnecessary costs which are incurred in: non-essential USE QUALITY APPEARANCE LIFE/RELIABILITY CUSTOMER FEATURE Some Close Cousins of VE Over a period many other terms or methodologies have evolved based on the same functional approach but laying emphasis on some specific type of objectives. Some of these terms do not even use the term Value. For example: Value Management Value Assurance Zero Based Budgeting Business Process Re-engineering etc.
VALUE ANALYSIS
(Quality) Worth Value = ----------Cost What is it? What does it do? What must it do? How can its functions be performed for less Provide user-required functions at lowest cost
Aims
PRINCIPLES OF VE
User-First Attitude Functional Approach Team Approach Creative Approach
Two elements necessary to implement the value methodology are: 1. The "problem" is describable in function terms. 2. The alternate approaches to achieve the functions are a valid consideration. When organisations establish value programs, the most commonly cited objectives are: 1. To extend the use of resources by eliminating unnecessary cost, without sacrificing necessary quality. 2. To foster timely adoption of economically advantageous change. 3. To enhance cost effectiveness. 4. To offer value added product or service to customer. REASONS FOR POOR VALUE Poor value creeps into almost any product or a system, however well designed, during design and development. Alternatively, later in manufacture, distribution or use. There are many causes of such poor value: 1. Lack of information 2. Decisions based on wrong beliefs 3. Habitual thinking 4. Negative attitudes 5. Reluctance to seek advice 6. Shortage of time 7. Changing technology 8. Lack of a yardstick for measuring value 9. Old specifications 10. Poor human relations Change may threaten security In a professional sense, many designers believe that it is their responsibility to provide the most economical product for the client. A change
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recommended to save money indicates that the old way is uneconomical, or represents poor value. It is human nature for the decision-maker to feel that change is a threat to his security. The decision-maker naturally tends to feel that changes suggested to him cast a bad reflection on his original decision. VALUE ENGINEERING BASICS JOB PLANS The basic framework for conducting a value study is the Job Plan. Value Engineering is a systematic approach and it has a well-considered job plan that needs to be adhered to maximise the effectiveness of the technique. A typical job plan is given below: Selection of the project and the team members Collection of Information Function identification and analysis Creation idea generation Evaluation of ideas Investigation of alternative solution Final recommendations and presentation The above plans provide a systematic and orderly approach to conducting a study. The plan includes both analytical and creative phases. Each phase has its rules that are designed to increase the effectiveness of the phase.
3. FUNCTION PHASE Define the functions Evaluate functional relationships 4. CREATIVE PHASE Establish positive thinking Develop Creative ideas 5. EVALUATION PHASE Refine and combine ideas Establish costs on all ideas Develop alternative ideas for functions Evaluate by comparison 6. INVESTIGATION PHASE Use company and industry standards Consults vendors and specialists Use specialty products, processes and procedures 7. RECOMMENDATION PHASE: Present facts Present costs Motivate positive action
INFLUENCE OF SELECTION OF TIME ON VE APPLICATION Two important factors influencing time for VE application are: 1. The magnitude of the savings likely 2. The degree of receptivity of the environment in which VE is to be applied. Every cause of poor value that is identified provides an opportunity for solution and an area for VE effort. Value Engineering may be applied repeatedly at any point in the life cycle, as new information and details are produced. However, the further you are in the life cycle phase, the smaller the cost reduction potential, and the greater the investment required to implement.
VE EMPHASIS
VE studies during this phase are directed at: Furnishing inputs needed to ensure the most economical decisions to achieve the functions sought. achieving low total cost of ownership (rather than just low acquisition cost) VE studies during this phase add value by analysing and developing alternatives for the following: Essential requirements Technical characteristics Design tasks VE studies during this phase are limited to: Eliminating unnecessarily restrictive detail and eliminating items not necessary. Redesign effort at this stage cannot be economically accomplished due to the implementation costs involved. VE studies during this phase result in: Extension of an item's life Reduced repair costs Savings in energy and other operating costs Reduction in the number of supply items in stock. VE can be performed both internally and by the contractor/vendor.
and other segments of his organisation. People problems are usually more difficult to resolve than technical problems. It is best to prevent them before they start. THE TEAM It has been shown that the optimum size for a team is five persons, supported on a part-time basis by other elements of the organisation or outside experts and consultants. The composition of the team should be mixed and multi-disciplinary. Individual work experience or background in the technology involved for the particular study is important, but not to the exclusion of those who have no background in the study subject. A mix of talent is desired to achieve different points of view and disassociation with the subject of the study. Emphasis should be placed on using the best talent available. Involve people who are directly affected by the problem in arriving at the solutions. Human relations play an important part in the successful conduct of a study. THE TEAM OPERATIONS Sometimes the team members are temporarily reassigned from their normal duties to work full time on the value study, with the expectation that the group will dissolve when it finishes its work. There is one distinct disadvantage to the full-time team study. This type of study usually compresses the time available for thought and incubation of ideas. Another approach to team operations that is often more acceptable to management is the full time team that works on a part time basis over a longer period of time. Regardless of the method employed the team as a whole should perform the function analysis and the development of ideas, and all should agree upon the final selection of recommendations. FUNCTION ANALYSIS Generally intense need and desire to reduce costs is often equated with the act of reducing quality or making sacrifices in requirements down to just above the limit of tolerability, chopping frills. According to Miles both use functions and aesthetic functions are important as they serve the needs of the customer and should be part of the value analysis process. It is, however,
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important to determine when an aesthetic function is required, and when it is superfluous. Function analysis is a system to show exactly what one gets for his money. It responds directly to the needs of the owner. There is often a difference in point of view in performing function analysis depending upon who you are. Are you a designer or manufacturer of a product or are you a user of a product? What could be basic function to one person might not be basic function to another. Basic function of a product can change with the time and the end purpose for which it is used. In searching for a proper classification of function, the value analyst can find a clue in why he wants it. VE methodology brings more objectivity to analysis of functions. The methodology primarily concentrates on the use value of the "work" or "sell" functions. However, aesthetic functions can become basic when desire becomes as strong as need. Assessment of aesthetic functions is a subjective matter, but the systematic approach adopted in VE for function analysis helps group acceptance for these aesthetics functions. There are four aspects of economic value: VALUE ASPECT Use Value Esteem Value Cost Value Exchange Value RELATION TO FUNCTIONS: Need Want or Desire Cost to achieve desirables Worth
2. ESTEEM VALUE
Properties that make ownership of an object desirable
3. COST VALUE
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Properties, which are sum of labour, material, overhead and other costs required to produce something
4. EXACHANGE VALUE
Properties of an object that make it possible to procure other items by trading
DEFINITIONS:
Goal
A goal is a desired state of affairs. Goal statements are usually of value to the highest-level management. Goals tend to be restated over time.
Objective/Purpose
Objective is a definition of the benefits a program plan is intended to accomplish. Impact of a program is measured against these objectives. Purpose is often used in place of an objective.
Operation
An operation is the unit of work necessary to contribute to the objective. Operation means action.
Function
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A Function is an action usually described by a verb and a noun without identifying a specific method of performing an action. A function often would describe a method of performing a preceding function.
Method
Method is the type of work required to accomplish the operation. The specific method of performing a Function/action is frequently recorded within the description of a subsequent function/action.
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Dependent Function
Dependent function is a function that depends on another function for its existence. This function comes in to existence when a specific method is selected.
Independent Function
Independent functions existence does not depend upon one or more other functions for its existence or on the method selected to perform those functions.
Basic Function
A function, which describes the principal action, that must be performed. It is independent of all other functions being considered.
Support Function
Support function is a function, which assists a critical function in doing its job so that it may be done in a reliable and acceptable manner.
Preceding Function
It is a function, which comes before or to the left of another function in the FAST diagram.
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Thought Provoking Questions, helpful in FAST diagramming: Problem Statement Higher level logic (H) 1. What subject or problem shall we discuss? 2. What are we really trying to do when we -------------------------------? 1. What higher level function has caused -------------------------- to come into being? Higher level and critical H&C Critical Path Logic (C) 4. Why is it necessary to - ------------------ -------? 5. How is ------------------------ actually accomplished or how is it proposed to be accomplished? 6. Does the method selected to -------------------cause any supporting functions to come into existence ? 7. If we did not have -----------------------------, would we still have to perform the other functions listed ? 8. When we ---------------------------in the manner conceived, does it cause the apparent dependent functions to come into existence ? 9. What or who actually ----------------------------?
ALLOCATING COST TO FUNCTION Where an item serves but one function, the cost of the item is equal to the cost of the function. However, in most cases, an item serves more than one function. When this occurs, the cost of the item must be prorated to each function.
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VALUE TESTS To determine satisfactory/unsatisfactory value 1. Does it contribute to value? 2. Is it proportionate to its usefulness? 3. Does it need all its features? 4. Is there anything better for the intended use? 5. Is any one buying it for less? 6. Can a useable part be made by a lower cost method? 7. Will another dependable supplier provide it for less? 8. Don't material, reasonable labour, overhead, and profit total to its cost? 9. Is it made of proper tooling, considering quantities used? 10.Can a standard product be found which will be usable
Key Questions: What? When? How? Why? Where? Who? RELATING VALUE TO WORTH When elements of utility can be quantified in monetary units, we call them elements of worth so that they can be related to their corresponding elements of cost. Function worth is the least cost to provide a given function. The worth of a function is usually determined by comparing the present design for performing the function with other methods of performing essentially the same function. The rule is to determine the cost of functional equivalent based upon the way it was accomplished previously. To aid in determining worth, one might ask the following series of questions: 1. What is the cost of achieving the basic function as the item is presently designed? 2. Do you think the performance of the basic function should cost that much? 3. If no, what do you consider would be a reasonable amount to pay for the performance of the function (assuming for the moment that the function is actually required) if you were to pay for it out of your own pocket.
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4. What is the cost of achieving this function if some other known item is used? 5. Is this a common, easily accomplished function or one that is rare and difficult to achieve? 6. What is the price of some item that will almost but not quite, perform the function? In determining worth, the key rule to be remembered is that worth is associated with necessary function or functions and not with the present design of the item or system. Some value specialists give worth only to basic function, automatically letting the worth of secondary functions zeros. This view is taken because to some, secondary functions only exist because of the design solution used to satisfy the basic functions.
CREATIVITY
Creativity is the development of ideas new to the individual, not necessarily new to someone else. It is the one basic element in the value methodology that singles out effective VE performance by bringing one closer to the attainment of optimum value. It takes creativity to discover alternate designs, methods, systems or processes that will accomplish the basic functions that need to be performed. The creative approach is appropriate when there appears to be either no solution or more than one solution to a particular problem. The creative approach is an idea-producing process specifically intended to generate a number of solutions, any of which will solve the problem at hand. Although all solutions may work, one is the optimum among them. The creative process is a mental process in which past experience is combined and recombined (frequently with some distortion) to form a new combination, which will satisfy some, need eventually. The creative process is that process which the mind normally follows in seeking a solution. It involves the follow steps. ORIENTATION: Defining the problem to be solved, and selecting the approach that should be taken to solve it. PREPARATION: Information gathering and fact-finding.
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IDEATION: Production of alternative solution to the problem. INCUBATION: Sorting and combining the information, and slowing the pace to invite illumination. SYNTHESIS: Bringing all the ideas together into a complete whole. VERIFICATION: Evaluation of the proposed solution or resulting ideas.
MENTAL BLOCKS TO CREATIVITY There are mental attitudes or influences, which serve to retard or block the creative process. These blocks are categorised as habitual, perceptual, cultural or emotional in nature. One can enhance creative ability try specially counteracting them, once recognising that they exist through selfevaluation.
BLOCKS TO CREATIVITY
1. HABITUAL BLOCKS Continuing to use "tried and true" procedures although new and better ones are available. Rejection of alternate solutions which are incompatible with habitual solutions. Lack of a positive outlook, lack of determined effort, conformity to custom, and reliance on authority. 2. PERCEPTUAL BLOCKS Failure to use all the senses of observation. Failure to investigate the obvious. Inability to define terms. Difficulty in visualising remote relationships. Failure to distinguish between cause and effect.
3. CULTURAL BLOCKS Desire to conform to "proper" patterns, customs or methods. Over-emphasis on competition or on co-operation.
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The drive to be practical above all things and being too quick to make immediate judgements. Belief that all indulgence in fantasy is a waste of time. Having confidence and faith only in reason and logic. 4. EMOTIONAL BLOCKS Fear of making a mistake or of appearing foolish. Fear of supervisors distrust of colleagues and subordinates. Over-motivation to succeed quickly. Refusal to take any detour in reaching a goal. Inabilities to reject decisions, which are adequate but which, are suboptimum. These
FACTORS THAT MAKE AN INDIVIDUAL"CREATIVE." factors can be developed through effort and concentrated practice. FACTORS CONDUCIVE TO CREATIVITY ARE;
PROBLEM SENSITIVITY Being aware, that problem exists. IDEA FLUENCY Being able to produce ideas in copious quantities. FLEXIBILITY Being open-minded and adaptive in the approach to problem. ORIGINALITY The ability to produce a great number of new and unique ideas. CONSTRUCTIVE DISCONTENT Dissatisfaction with existing conditions with an attitude of mind, which seeks to improve the conditions. This type of person usually asks why and how. OBSERVATION Alertness to the environment. FACILITY AT COMBINATION The ability to combine and recombine information in a variety of ways. ORIENTATION Development of proper frame of mind toward creativity. MOTIVATION The mustering of the necessary energy to work toward a goal and achieve it.
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PERMISSIVE ATMOSPHERE The environment in which new ideas are encouraged. EVALUATION Evaluation may be accomplished either by the generating group or by an independent group. Normally, value teams use at least the following five criteria/factors as a rough screening process for the first idea judging: . State-of-the-art of the idea . Cost to develop the idea . Probability of implementation . Time to implement . Potential benefit The above five factors are scored by the team on a 1 to 10 scale with 10 being the score for least cost, least time, most benefit, highest probability of implementation, and most current state-of-the-art. It is most important in conducting a screening step that no ideas be discarded without being scored. Scoring will be difficult and it will be subjective. The team should try to anticipate all of the effect, repercussions, and consequences that might occur in trying to accomplish implementation of one idea as a solution. This probing should result, in a sense, as a measure of sensitivity to problems, which might be inherent in changes, caused by the new idea. Here are some questions to ask. 1. Will the idea work? 2. Can it be modified or combined with another? 3. What is the saving potential if it does work? 4. What are the chances for implementation? 5. What might be affected? 6. Who might be affected? 7. Will it be relatively difficult or easy to make the change? 8. Will it satisfy all the users needs? 9. Is there enough time to implement it? The answers to these questions will vary depending upon the Objective of the value study and the time frame and resources available. All criteria /factors are not equally important. Their relative importance is accounted for using a Weighted evaluation technique. This practise in VE
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and is specially suited to selecting alternatives that optimise criteria and factors not readily measurable by cost such as, aesthetics, safety, time, quality, etc. THE IMPLEMENTATION PLAN An important strategy in selling an idea is the preparation of a fully developed implementation plan. An effective implementation plan answers these questions: 1. How should it be implemented? 2. What should be changed and in what sequence? 3. Who should do it? 4. How long should it take? 5. Is any deadline required? 6. What is the implementation cost? 7. What are the consequences of delay? SELLING THE IDEA Presentation of VE idea should always be made in written form. Yet, the oral presentation of study results often clinches the decision. The content of the report to management must be clear and concise. VE proposal reports should contain sufficient discussion to assure the reviewer that: Item/system performance is not adversely affected. Supporting technical information is complete and accurate. Potential savings are based on valid cost analysis with break-even and return on investment. The change is feasible.
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However nothing herein precludes the submittal of VECPs where the contractor considers that the required functions and characteristics could
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be combined, reduced or eliminated as being non-essential or excessive to the satisfactory performance of the work. The govt. desires to benefit from the experience and knowledge of its contractors in the area. New Materials Industry Standards New Techniques New Processes MANAGEMENT RESPONSIBILITIES : Asst. Sect. Of Defence (Installation And Logistics) Dy. Asst. Sect. Of Defence (Equip. Maint. Readiness) Alongwith Defence supply Agency. Through : Eliminating Goldplating In Specifications Refining Requirement Calcutations. Increasing Use Of Excess Inventories. Reducing No. Of Sizes/Varieties Of Items Stocked. Incentive Contracting. Terminating Contracting. Terminating Unnecessary Operations.
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18%
Questioning Specifications
(D)
15%
(D)
12%
(D)
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Modify? Magnify?
Minify?
Substitute?
Re-arrange?
Reverse?
Combine?
Basic Wants?
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C. Design 1. Does the design do more than the specifications require? 2. Is it designed to be made on existing manufacturing equipment which will not allow a design which would perform its function in a more simple way? Why? 3. What alternatives were considered? 4. Why were alternatives rejected? 5. Within the device are there any secondary design solutions to primary problems? Design apologies? 6. Is the present design overlay similar to its predecessor? Should it be? 7. In what stage of maturity is design? 8. What has been the design and development history? D. Special requirements 1. Is a severe environment involved? 2. What special performance or operating characteristics required? 3. Are there special requirements relative to installation? Maintenance? Testing? Safety? 4. Are special treatments, finishes, and/or tolerances required? E. Materials 1. Are special, hard-to-get or costly materials specified? 2. What alternative materials were considered? Why were they rejected? 3. Are the ;materials used difficult to handle, process, or work? Are they hazardous? 4. When was the material specified? Have new materials been developed which would perform the function for less cost? 5. Is storage of the material a problem? F. Manufacturing 1. 2. 3. 4. How are the component parts made? Why? Who makes it? Vendor or In-plant? Have Cost Visibility forms been completed? Who else makes it or something similar?
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5. Are there any particularly costly operations required in its manufacture? What do they result from? High labour? Expensive equipment? Tooling? Indirect materials? 6. What quantities are required per unit? Per year? Per production order? 7. What will be the Economical Order Quantities (EOQ)? 8. What tolerances are important? 9. What are potential sources? 10.What elements contribute to high cost? 11.What methods, machines, process are used? G. Miscellaneous 1. Are there any special problems associated with handling, packaging, storing, or transporting the item? 2. Have costs been divided between work and sell functions? II. SPECULATIVE PHASE CHECKLIST This checklist of questions can provide new points of view. To gain the most from such a list, twist each question around until it applies to you problem. A. Marketing concept 1. How closely does the product fit true customer needs? 2. Does it have too many features (secondary functions) i.e. features that the user really does not want? 3. How much of the design is the result of custom, tradition, or opinion? 4. Are there several distinct customer needs, one of which might be considered a separate market and be satisfied by a simplified version of the present design? 5. Does the product still have a market? 6. What have been the largest customer complaints that the sales people are aware of?
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B. Design (a) Idea stimulators 1. Has the problem or basic function been defined? 2. If all specifications could be forgotten, how else could the basic function be accomplished? 3. Can the design be changed to eliminate the part? 4. Could a standard part be used? 5. Would special parts be more economical? 6. If the part or feature is to improve appearance, is its cost justified? 7. Can the design be altered to simplify the part? 8. Can it be made safer? 9. Would a less expensive material perform reliably? 10.Have all ideas been written down? 11.Is the principle of operation still appropriate in view of recent technical advancements? (b) Eliminate parts or finishes 1. Change another part to perform its function. 2. Check accessory items and features, possibly the need for them no longer exists. (c) Combine functions 1. Incorporate functional forms into one part to replace a separate part or second operation. 2. Change design of part to perform function of several parts. (d) Change physical shape of parts 1. Reduce the size or thickness. 2. Reduce scrap or skeleton. 3. Reduce operation by changing shape.
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(e) Substitute materials or finishes 1. Aluminium for brass and vice versa. 2. Use Zn - Cu - Be instead of brass. 3. For larger die cast parts, check aluminium. 4. It may cost less than Zinc. 5. Powder metals for machined metals. 6. Die casting for machined parts. 7. Plastics for metals. 8. Lower grade critical materials for higher grade. 9. Machinable steels for less machinable steels. 10.Plated steels for other steels and vice versa. 11.Brass for nickel silver. 12.Metallised materials for fabrics. 13.Zinc for nickel and vice versa. 14.Preplated steel. 15.Breprinted steel. 16.Steelclad with aluminium. Stainless, monel etc. 17.Fibreclad steel. 18.Rubberclad steel. 19.Embossed metal. 20.Expanded metal. 21.Silicones. 22.Nylons. 23.Micalex, etc. (f) Simplify it 1. Put all the tapped holes into one part-eliminate them from others. 2. Use available fastening devices and eliminate tapping entirely. 3. Challenge secondary punch press operations or secondary screw machine operations or other secondary operations. 4. Make the parts straight instead of curved straight fittings cost less than elbows. 5. Dont plate copper parts which are later painted. 6. When blind holes are needed. Show minimum depth with notation, Dont drill through, rather than specifying depth limits. 7. Use squared ends grounds ends double the cost the spring. 8. Instead of two tapped holes for set screws at 90 put set screws one top of the other in the same hole.
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9. Avoid underouts on moulded plastics to eliminate mould cycles and slower machine cycle. 10.Question chrome plating or polishing on screw heads. 11.Question unusual machined surfaces. It may require secondary operations to obtain them. 12.Consider pal-nuts to eliminate nuts and lockwashers on light parts. 13.Stamp the nut impressions into the part-eliminate fastening devices. 14.Dont bend it. 15.Use a miniature casting in lieu of several small assembled a stampings. 16.Use square instead of rounded corners on stampings. 17.Use roll pins to eliminate reaming. (g) Alter it so high speed method can be used 1. With a slight change, perhaps it can go on a header or upsetter. 2. Make it of round or flattened wire on a wire forming machine rather than a complicated terminal. 3. Strike the slot in the screw instead of sawing it. 4. Design parts for die cast threads. A small flat in the parting line claimants flash difficulty. 5. Drill and tap small parts in the strip before cutting apart. 6. When cross drilled screws or bolts are needed, design so that random drilling is permissible. 7. Make irregularly shaped parts of assembled laminations thin enough for stamping to avoid costly machining jobs. 8. Eliminate insulting sheets, strips, punching and welding operations by making a composite moulded parts for electrical applications. 9. Instead of long screw-machine parts for fitter housing, etc., use flared copper tubing and a small internal flare nut. 10.Mould gears from powdered iron to save cost of machining the teeth. If extra strength is needed, impregnate the iron with copper. 11.Use permanent mould iron castings for lower cost and better quality. 12.Use projections and resistance weld in one operation rather than spot-weld one spot at a time. 13.Consider magnesium-it machines twice as fast as aluminium and five times as fast as steel. 14.On thin gears-alter for punching instead of broaching.
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(h)Alter design so that standard parts or materials may be used. 1. Design around standard rivers, eyelets, washers, spacers, etc. 2. Speciality vendors provide standard materials in many classes. For example, use standard terminal boards, standard switch contact blades, standard contact blade spacers, etc. 3. Design for standard bushings-dont make it necessary to cut them off. 4. Instead of fabricating terminals, buy them from a specialist in parts made from tubing. 5. Try Johnson weld nuts for resistance welding to sheet metal. They cost less than half the price of most others. 6. Use stamped weld nuts for even lower cost. 7. Use standard sizes for raw material to avoid extras in cost. (i) Determine where the design might be altered for automated assembly 1. Dont use a complicated terminal when simple flattened wire applied by an automatic stapler would do as well. 2. Dont have springs pressing against all of the assembly parts. 3. Dont assemble concealed parts between plated. Make up some sub-assemblies which are made openly and snapped together. (j) Redesign to use lower cost processes and fabrication techniques. 1. 2. 3. 4. 5. 6. 7. 8. 9. Consult the Value Control Design Guide. Refer to manufacturing processes check list in this section. Impact extrusions. Adhesive fastening. Epoxy resin castings for plastic parts. Printed circuits for copper wire and soldered circuits. Ultra-sonic or gold welding. Machine assembly. Do the operation in tumbling barrel. If the parts are too heavy and too precise-mount them on fixtures in the barrel and let the abrasive mixture flow through them. 10.Use automatic dial tapping machines. 11.Dip in paint rather than spray.
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12.Design parts for barrel plating rather than hooking in still tank. 13.Use multi-slide machines to eliminate secondary operations. 14.Stamp parts in punch press rather than hand stamp. 15.Use tubular rivets rather than solid rivets which have to be peened over slowly in a high speed hammer. 16.Lithograph or print rather than etch. 17.Permanent mould rather than sand cast. 18.When desired, actually reduce the size of the shank on a screw by a special thread roller arrangement. (k) Use a higher cost material, which, by its nature and properties will afford a simplified design lower cost assembly. 1. Consider fixture heat-treated beryllium copper, when phosphor bronze wont quite do the job. Eliminate adjusting labour. 2. Use silicones - for innumerable benefits and savings. 3. Make the whole tip and support from silver tip and brass support. Eliminating welding may offset the cost of additional silver. 4. Use Micelle in flux paths. High permeability may save many laminations. 5. On very small parts with intricate forming use stainless to eliminate plating cost. 6. For high temperatures and high dielectric strength use Teflon to produce various savings. 7. Use brass instead of steel on very small screw machine parts. The saving in labour more than offsets the increased material cost. C. Manufacturing (a) Use other methods of fabrication 1. 2. 3. 4. 5. 6. 7. 8. Fabricate it. Die cast it. Extrude it. Permanent mould cast it. Roll and weld it. Roll form it. Lost wax casting. Miniature casting.
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9. Miniature casting on wire, cord, tape or rod. 10.Miniature casting automatically with inserts. 11.Elecro-forming. 12.Low cost, low quality stampings. 13.Fabrication from copper or brass tubing. 14.Powder metallurgy. 15.Refer to the additional and more detailed checklist of speciality products and processes. (b) Miscellaneous lower costs 1. Use a good sampling method instead of 100 percent inspection. 2. Make an entire sub-assembly smaller reducing material accordingly. 3. When buying adjacent parts from a vendor, have them preassembled if practicable. 4. Dont spend money for sizing if supplementary operations are necessary anyhow. 5. Make as many parts as practicable on a particular job of identical raw material. 6. Design part and tools to hold scrap in machining to a minimum. 7. Use carbolic. 8. Hopper feed parts in assembly. 9. Provide proper tooling to eliminate need of expensive labour. 10.Conveyors to facilitate material handling. 11.Avoid complicated equipment that requires continuous scrutiny and maintenance. (c) Survey the purchasing with the buyer 1. Are the available highly specialised low cost suppliers being used? 2. Have the suppliers engineers been given sufficient facts and pressed for suggestions which would produce equivalent performance at lower cost? 3. Has the buyer taken advantage of the know-how of other purchasing units using larger quantities of similar materials? 4. Should some minor changes suggested by the supplier which afford lower cost material, be considered further? 5. Are parts obtained in best economical lot size?
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D. Dont be stopped If your project seems to have slowed prematurely before results are accomplished, keep in mind the basic philosophy. There is a lower cost way to get equivalent quality, only as yet it has not been thought of. It is important not a waste time going around in mental circles. If progress towards lower costs seems stalled some of the following or similar actions must be taken. 1. Select a well-qualified vendor-put the problem up to him and press him to produce. Get me information and a new idea from him. 2. Break the problem down into tow or three specific but smaller problems and assign each to a qualified specialised vendor for solution. 3. Talk it over with the project engineer again. Jointly agree that a hypothetical 20 per cent of the cost must be removed and study with him how to start. 4. Determine how similar hobs are being done in other areas of your company. 5. Determine how competitors are doing it. 6. Counsel another company buyer who may have a similar problem. 7. Find in your company a proponent of ;the idea and foster it through him. 8. Talk about it to a man in one of the laboratories-tell him the problem-get some ideas form him. 9. Discuss it with the Standards group. Frequently they have assisting information. 10.Take it over with a man in manufacturing. 11.Mentally review all of the new processes and products reviewed in trade magazines for their applicability. 12.Make a quick list of a dozen or hundred suggestions no matter how impractical some of them seem-them study the list. 13.As part is studied-imaging that you are forbidden to use it. How then would the job be done? 14.If it is big enough, talk it over with the boss. 15.Dont accept first effort-challenge further endeavour Value Analysis pays off after the first answer is no.
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III. HUMAN ENGINEERING DESIGN CHECKLIST At several stages during the development of equipment it is useful to review the human engineering requirements. The following CHECK LIST can be used for this purpose. 1. System design. (a) Is it quire clear that functions assigned to a man cannot be done more efficiently by a machine (or vice versa)? (b) Is there provision for monitor system performance, and for giving the operator adequate feedback information? (c) Have the implications for maintenance been clearly appreciated? (d) If data-sensing is assigned a human operators, has the most appropriate use been made of visual, auditory, or combined sensory displays? (e) Are human time-large in the system acceptable? (f) What time is allowed for decision-making? (g) How much learning-time is required for the human task? Could aiding or quickening be introduced to reduce training-time and improve system performance? (h) Have training devices been considered as an integral part of the system or as separate requirements?
2.
Environment. (a) Is the space provided around the equipment adequate for operators and maintainers? (b) Is the operators seating and working symptom, may suitable for prolonged periods of operating, as in watch-keeping tasks? (c) What lighting is required in compartments to ensure efficient operations? Have steps been taken to avoid sources of glare and unwanted reflections? (d) Is special care necessary to avoid extremes of temperature and inadequate ventilation? (e) Should steps be taken to reduce noise in the working environment? (f) In considering the design features for operation and maintenance, will the system ever be in motion and if so, has this been taken into account?
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3. Communications (a) Are the requirements for communication between System operators clearly defined? (b) Will ambient noise in the compartment interfere with voice communications? Can visual communications be introduced without overloading the operator? (c) Is position identification provided if there are two voice channels? (d) Have all steps been taken to maximise intelligibility on vile channels? 4. Dials, indicators and displays (a) Are the sensory capacities of human operators adequate for the tasks imposed? (b) Do any displays carry more information then is really required? (c) Is the information displayed in the most directly usable form, or does it require interpretation? Does the same man have to report and interpret? (d) Are the displays compatible with associated control tasks? (e) Are the scale marks and number systems, etc. on dial displays suitable for reading under operational conditions? Is the contrast between displays lettering etc., and the background as great as possible? (f) If there are several displays, have they been properly gouged? (g) If cathode ray tubes are used, have special precautions been taken to ensure suitable lighting? (h) Do essential displays include a means of indicating when they are out of order?
5.
Controls. (a) Has the correct control-display relationship been provided? Do both controls and displays move in expected directions? (b) Are the control forces required well within the capacities of human operators? (c) Has the best type of control been provided for the particular task? Does it meet speed and accuracy specification ? How has the optimal control sensitivity been determined? (d) Are limb supports provided for sensitise operation?
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(e) If one operator has several controls, on which principles have they been grouped? Is each one within the operators normal reach? Is there space for each to be handled as required? Could some tasks assigned to the hand be transferred to the foot? 6. Console design (a) Have the dimensions been matched to the physical characteristics of the operators? (b) Have postural requirements been accounted for, and the need for, operators to relax? Can all displays be seen, and controls be reached, without forcing the operator into uncomfortable postures? Are parallax errors eliminated? (c) Are maintenance controls and displays segregated from the those used for operational purposes? (d) Have the optimal areas been utilised to locate an operators display and control? Do the hands mask any display whilst they are operating controls? (e) Are all controls and displays correctly related and clearly identifiable? Are they suitably grouped? (f) Is the lighting for a console appropriate? Has proper care been taken to obtain a good distribution of brightness and colour contrasts?
7. Accessibility and maintenance (a) Are working conditions for the maintainer the best possible as regards (a) Lighting , (b) Ventilation and (C) posture? (b) Can maintenance work be conducted without interference to operation? Has segregation of maintenance equipment been considered? Are there requirements for preventative periodic) control required? (c) Can the performance of the equipment be adequately monitored and measured? (d) Can definite components be rapidly replaced? Are components with high failure rates the most readily accessible?
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(e) Can components be readily identified and located by reference to handbooks or maintenance cards. (f) Is any removable chassis part too heavy (i.e. greater than 30 lb.) or awkwardly-shaped to be lifed manually and carried? Are special slinging and carrying facilities advisable? (g) Can maintenance work be carried out without special tools? Is there room to manipulate controls and tools in various parts of the equipment? Is there space for the development of necessary test instruments? 8. Safety. (a) Have adequate precautions been taken to protect the operator from all hazards? (Electrical, mechanical, chemical, radiation, not and cold surfaces)? (b) Have the dangers to maintainers of encountering the above hazards been minimised? Are there instructions or warning notices to acquaint maintainers with these possible dangers? (Should special instructions be promulgated more widely?) Have special protective clothing or insulated tools been considered? (c) Do the precautions take into account operation during motion if this possible? Are guards provided against moving machinery? IV. LOWER COSTS, BETTER VALUES CHECKLIST This convenient checklist tells where to look, what to do, when analysing values? 1. Prepare a complete cost list of labour, material and annual requirements for all parts or apparatus. List merchandise loss and maintenance figures where amount appears significant. 2. Determine where cost reduction is indicated: (a) Labour (b) Material (c) Merchandise Loss (d) Maintenance of Tools Machines 3. Investigate the following cost reduction possibilities:
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I. Design (A) Eliminate parts or finishes 1. doubtful function or duplication of function exists (a) Reduce number of screws (b) Reduce number of rivets (c) Eliminate washers of insulators (d) Eliminate leads by rewiring (e) Eliminate components (f) Eliminate brackets (g) Finish not required. B) Combine function 1. Incorporate functional forms in one part to replace a separate part or second operation. 2. Change design of part to perform function several parts. (C) Change physical shape of parts 1. 2. 3. 4. Reduce size Reduce thickness Reduce scrap or skeleton Reduce operations by changing shape/
(D) Liberalise tolerances and / or design requirements consistent with functions. Eliminate unnecessary requirements. Change form engineering to shop or unlimited requirements. (E) Substitute materials or finishes 1. 2. 3. 4. Aluminium for brass and vice versa. Plated steel for other steels and vice versa. Machinable steels for less machinable steels. Brass for nickel silver.
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5. Lower grade critical materials for higher grades. 6. Powdered metals for machined metals. 7. Plastics for metal and vice versa. 8. Die castings for machined parts and vice versa. 9. Metalised materials for fabrics. 10. Zinc for nickel and vice versa. 11. Enamel for plating and vice versa. (F)Use commercial parts or apparatus 1. Substitute standard commercial parts or apparatus for own design and vice versa. 2. Substitute special commercial parts or apparatus for own design and vice versa. 3. Substitute standard commercial parts or apparatus for special commercial parts or apparatus and vice versa. (G) Substitute high production, low cost parts for low production, high cost parts. 1. Screws, rivets, eyelets, terminals, etc. (H) Redesign to utilise improve fabrication processes. 1. 2. 3. 4. 5. 6. Impact extrusions. Epoxy resin castings for plastic parts Printed circuits for complex wire and soldered circuits. Adhesive fasting. Ultra-sonic or gold welding. Machine assembly.
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II. Fabrication (A) Eliminate unnecessary operations 1. Deburring. Redrilling Polishing. Reaming. Adjusting, detailing, etc. (B) Combine operations 1. 2. 3. 4. 5. 6. 7. Progressive punch and dies Dial feed machines. Special attachments for screw machines and punch presses. Conveyors operations Special multiple operation machines. Multiple parts tool. Produce parts of more than one design in same tool.
(C) Substitute facilities 1. 2. 3. 4. Machine operations for hand operations. Power screwdrivers for other types. Automatic detail or inspection machines. Higher production machines. a) Screw machines with higher spindle speeds. b) Higher RPM presses.
5. Automatic feeds for second operations 6. Separates scrape from parts at operation. 7. Clean automatically at operation. III. Miscellaneous (A) Reduce expense supplies 1. 2. 3. 4. substitute tool of longer life to reduce unit cost. Utilise less expense tool. Provide for tool repair or reclamation. Specify procedures for use of tools and other expense supplies:
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(a) Dressing grinding wheels, correct mixtures and amount of cutting oils and tool lubricating oils, etc. 5. Reclaim expense supplies: (a) Oils, diamond dust, gloves, wiping clothes etc. (B) Reduce plans service costs 1. Steam 2. Compressed air (a) Intermittent air for part ejection and automatic air shut-off when machine is stopped. 3. Water (fresh and/or recirculated) 4. Electrical power (a) Unnecessary illumination, stopping equipment when not in use. 5. Industrial gas. (C) Materials handling 1. Conveyorising (a) Transfer conveyors between machine and/or operations, etc. 2. Bulk handling (a) Tank storage and pneumatic transfer of materials, etc. (D) Packaging 1. 2. 3. 4. Cheaper packing materials. Automatic packaging. Automatic stamping/labelling. Bulk packaging or palletising
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(E) Inspection 1. Reduce inspection by use of control charts. 2. Review ampling plans and process averages with a view to reducing inspection effort. 3. Use indicator type gage for better control of the process. 4. Combine operations in one gage to reduce inspection effort. 5. Reduce walking time of inspectors. (F) Tool, Machine and plant design. 1. Specify simplest mechanism to perform job 2. Design for ease of maintenance. (G) Maintenance (tool and machines) 1. Specify preventive maintenance where indicated (a) Periodic cleaning of conveyors (b) Specify length of run for tools before tool sharpening and/or/repair when indicated. 2. Use of automatic lubrication facilities or devices for stock and/or machines. 3. Check facilities for adequate capacity. 4. Change design of tools and/or machines to remove maintenance trouble sports. (H) Look for cost reduction through: 1. 2. 3. 4. 5. 6. 7. 8. Lower office costs Better inventory controls Improved traffic operations Improved methods Standardisation Improved quality of purchased parts Make or buy Improved purchasing techniques.
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VALUE ENGINEERING
( A Unit Based Programme For Whirlpool of India Limited)
PROGRAMME SCHEDULE
DAY & DATE Day 1 August 25 , 03 Day 2 August 26 , 03 Day 3 August 27 , 03
th th th
SESSIO N FN AN FN AN FN
TOPIC Introduction To Value Engineering Function Identification And Analysis Creative Idea Generation And Refinement Integration Of Ideas And Their Evaluation VE Project Identification & Data Collection
FACULTY:
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