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- Decreasing costs
- Increasing profits
- Improving quality
- Expanding market share
- Saving time
- Solving problems
Using resources more effectively
Value Analysis
VA is an step by step approach to identify the
functions of a product, process, system or service; to
establish a monetary value for that function and then
provide the desired function at an overall minimum
cost without affecting any of the existing parameters
like Quality, Maintainability, Productivity, Safety and
other Performance characteristics.
Value Engineering
Value Engineering is where the value of all the
components used in the construction of a product from
design to final delivery stage are completely analyzed
and pursued.
Origin
Value Engineering began at General Electric Co. during World War II. Because
of the war, there were shortages of skilled labor, raw materials, and component
parts. Lawrence Miles and Harry Erlicher at G.E. looked for acceptable
substitutes. They noticed that these substitutions often reduced costs, improved
the product, or both. What started out as an accident of necessity was turned
into a systematic process. They called their technique as “Value Analysis”.
In the year 1954, US Navy Bureau of ships adopted same technique in their
effort at ‘cost avoidance’ during the design stage and saved millions of dollars.
They named it as “Value Engineering”. VE follows thought process that is based
exclusively on “function”, i.e. what something ‘does’ not what it is.
DIFFERNCE BETWEEN VALUE ANALYSIS AND
VALUE ENGINEERING
WHY? HOW ?
GIVE LIGHT FACILITATE VIEWING LIGHT THE BULB
HOW ? HOW ?
Information
Function
Creation
Evaluation
Recommendation
Implementation
Audit/Follow up
Orientation
Will it work?
Is it less costlier than the present design?
Is it feasible to implement?
There are four techniques associated
with this phase:
7. Implementation:
To execute the proposed/ accepted changes list down all the
activities and fix up the time frame for each. Make the
entire team responsible for all the activities.
8. Audit / Follow up:
The answer was that it caused the small part to become a “name
plate”, which imposed certain costs and restrictions on its
manufacture and procurement.
Instructions by stylist:
to take out the red pointer and use polished stainless steel.
the red arrow was not good, that it caused the product to look more
like a toy and less the mature and he never had liked the red color