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Submitted in partial fulfilment of the requirement for the award of

Degree of

Master of Technology


Submitted By

Undertaken at



JULY 2015


Myself, Rohit Kumar take this opportunity to express my profound gratitude and deep
regards to my guide Mr. Sukhvir Singh Dhaiya for his exemplary guidance, monitoring
and constant encouragement throughout the course of training I had undertaken in JBM
(VA-VE Department). The blessing, help and guidance given by him time to time shall
carry me a long way in the journey of life on which I am about to embark.I am also
obliged to staff members of JBM (VA-VE Department) for the valuable information
provided by them in their respective fields. I am grateful for their cooperation during the
period of my assignment.

This is certified that Project Work entitled YIELD IMPROVEMENT submitted by Mr.
Rohit Kumar for the partial fulfillment of the M.TECH 5yr Degree (Seventh Semester)
offered by Sri Guru Granth Sahib World University, Fatehgarh Sahib, Punjab during the
academic year 2015-2016 is an original work carried out by the student under my
supervision, and his work has not formed the basis for the award of the any Degree.

Signature of Supervisor




Figure No.

Figure Name

Page No.





JBM GROUP began its journey of excellence in 1983. The organisation commenced operations
as a manufactures of LPG cylinders for the Delhi NCR region. Moving strength to strength
assisted with experience and knowledge JBM group entered the automobile industry in 1985. In
1986 the group signed a joint venture with Maruti Suzuki India Limited for the manufacturing
of sheet metal components and assemblies.
Headquarters at Delhi NCR, JBM group is a diversified conglomerate with presence in
automotive, engineering and design services, renewable energy and education sector.

JBM Group is a focussed, dynamic and progressive organization with value added products,
services and innovative solutions. The group has diversified portfolio to serve in the field of
automotive, engineering and design services, renewable energy and education sectors and has an
infrastructure of 35 manufacturing plants, 4 engineering and design research centres across 18
locations globally.
With turnover of US $1.2 billion, JBM Group has broadened its horizon by focusing on quality
delivery, solutions approach, product development processes, flexible manufacturing systems
and contract manufacturing.
JBM Group is primarily a tier 1 supplier to the automotive OEM industry and caters services to
esteemed clients that include Ashok Leyland, Bajaj Auto Ltd., Fiat, General Motors Corporation,
Honda, Hero, JCB, Mahindra, Maruti Suzuki, Renault, Nissan, TATA, Toyota, TVS, VolvoEicher, Volkswagen and many more,
The Group has alliances with more than 20 renowned companies globally and the associations
include Arcelor Mittal, Cornalgia etc.
Products and Services
To modernise the facilities and improve its expertise, JBM Group is driven by higher
performance, reduced-wastage and quality products, which are produced with the finest
technology and are aligned with the manufacturing capability to match the customer needs.
We believe in creating high-quality automotive products and sub-systems by focusing on its high
values, higher performance and highest quality products.
The Groups leading edge products include:

BIW Parts and assemblies

Chassis and Suspension parts.
Cross Car Beam / Cross Truck Beam
Cross Members
Exhaust Systems
Fuel Filter
Fuel Tanks
Heat Shields
LPG and CNG Cylinders
Shaped Blanks

Skin Panels
Steel Fasteners
Tailor Welded blanks
Tools, Jigs and Filters
Tubes and Tubular Manipulations
Wheel assembly
List of Companies of JBM Group
ANS Steel Tubes Ltd.
Arcelor Neel Bank Pvt. Ltd.
FJM Cylinders Pvt. Ltd.
Indo Tooling Pvt. Ltd.
Jay Bharat Maruti Ltd.
JBM Auto Ltd.
JBM Cadmium Pvt. Ltd.
JBM Industries Ltd.
JBM Kanemitsu Pulleys Pvt. Ltd.
JBM MA Automotive Pvt. Ltd.
JBM Ogihara Automotive Ltd.
Neel Auto Pvt. Ltd.
Neel Industries Pvt. Ltd.
Neel Metal Products Ltd.

Neel Metal Products Ltd.

Neel Metal Products Ltd. (NMPL) is the fastest growing Company of JBM Group with high-tech
plants at various locations in India. NMPL has earned a leading position in industry with
facilities available in press lines up to 1200 tons, weld lines and ED coating plant- which are not
only limited to auto world but also fitting for white goods industry.
Covering the activities in the disciplines of automotive, steel service, fabrication, construction,
and waste management, The JBM, after its reorganization, has emerged as a leading Group. Its
automotive sector has achieved outstanding perfection in high quality production. By the
involvement of internationally reputed players in the technical advancement in the growth and
development, the Group has received recognition in the wide ranging customer preference. Over
the years, the Group has diversified its activities covering other areas of public importance. In
the year 2007 the Group ventured in the sector of waste management and today it provides a
novel service to the people in this section in the cities of Chennai and Ambattur.

Operations and Facilities

Exhaust Systems- Ultra Modern facility for robotic welding and heat resistance

Facilities to design manufacture and do real time testing of welding and checking

Rim rolling line, central anode tri chrome nickel plating and complete wheel

assembly set up.

Steel Service Centre- the Company has 4 blanking lines capable of producing blanks

of regular and irregular geometrical shapes and sizes.

Tubes mills to manufacture Electrical Resistance Welding (ERW) tubes
Vehicle assembly- Capability to produce complete bodies.

S. No.




New Model Development Award



Best Supplier Award



Certificate for Significant Achievement



Award for the development of Champion, Alfa Cargo



ISO TS 16949:2002



Outstanding contribution to Supply Chain Management



Outstanding Performance in development



Development of Champion Alfa Cargo Body



Trophy for yield improvement



Award for new model development



QCDDM Award for Quality & Delivery Targets



Shield for overall excellence



Best Supplier of the Year



Certificate for Significant Achievement



Best Product Development support



SGA Convention Prize



Certificate For Significant Achievement



QCDDM Award in Stamping Category



Appreciation Certificates for schedule adherence



ECO supplier certification



Appreciation Certificates for schedule adherence



Appreciation certificate



Vendor Performance Award For Alto Cost Reduction



Award for outstanding contribution to supply chain management



Award For Business Excellence - Strong Commitment To Excel


The JBMs Infrastructure is set up to develop advanced manufacturing systems, advanced
enterprise concepts, engineering tools, manufacturing processes and equipment, product design
and modeling, to cut time to market and to integrate product and system design, manufacturing,
Press Lines JBM Groups expertise in sheet metal parts manufacturing is unparalleled. JBM has
presses from world-renowned press makers like Rovegtta, Simpac, Hitachi, Erfurt, Isgec and
many more. The press capacity ranges from 20T to 2000 T in mechanical and hydraulic versions.
In addition, JBM group has tandem lines, which cater to high volume parts and skin parts. JBM
Weld Lines JBM Group possesses a wide range of modern weld equipments comprising of
stationary and portable spot welding, MIG/TIG welding, seam welding, submerged arc welding
and special purpose welding machines. JBM Group also has complete infrastructure to weld rear
axles. Automation in manufacturing demonstrates the Groups pro-active thrust to modernize the
facilities. The robotic welding systems from ABB and L&T have yielded the highest levels of
Flexible Manufacturing Systems JBM Group has a multipurpose Flexible Manufacturing system.
The 5 axes laser-cutting machine from world-class manufacturer Prima, Italy, witnesses JBMs
quest for international standards. The 5 axes laser-cutting machine obviates the need for
blanking, trimming and piercing operations. The salient feature of the system ensures rapid
processing of parts during the development stage, besides regular production of complicated
parts with substantial savings in tool costs.


Aim / Vision / Mission

Tells the story of our extraordinary accomplishments and guides us to expand as a uniquely
successful business of innovation and technical excellence, providing finest services to our

Quality Policy / Processes

The policy of JBM Group is to achieve total customer satisfaction by delivering products and
providing services that meet or exceed their exact requirements and expectations and to do so on
time and at most competitive prices in domestic and export market for our entire product range.

Vision- an Entrepreneurs Dream.A vision is the desired state of organization. It is an aspiration
around which a strategist, perhaps a chief executive might seek to focus the energies of members
of the organization. Expanding leadership in our business through people, keeping pace with


We believe in simplicity by Keeping a low profile externally and having clear, frank and
effective Communication in the organization. We believe in teamwork with well-defined
Responsibilities and accountability. We believe in relationships of trust amongst people through
well-defined responsibility and authority. We believe in according top priority to customer Focus
through prompt and appropriate response. We believe in respect and care for all those Associated
with us by commitments.


Value analysis (VA) or value engineering (VE) is a function-oriented, structured, multidisciplinary team approach to solving problems or identifying improvements. The goal of any
VA study is to:

Improve value by sustaining or improving performance attributes (of the project, product,
and/or service being studied).
While at the same time reducing overall cost (including life-cycle operations and
maintenance expenses).

In 1947, engineer Lawrence Miles originated the value analysis system while working for
General Electric. The original five-step process included:
1. Information
2. Analysis
3. Creativity
4. Judgment
5. Development
The VA methodology was adopted and renamed by the United States Navy, popularizing the term
value engineering. The use of value engineering continued to expand throughout the federal
government over the next two decades. Today nearly every federal agency with construction or
purchasing responsibility is using this methodology. VA is an improvement tool that is applicable
to any customer-based endeavor.
In 1961, Lawrence D Miles in his book 'Techniques of Value Analysis Engineering' defined
Value Analysis as "an organized creative approach which has its purpose the efficient
identification of unnecessary cost i.e. cost which provides neither quality nor use nor life nor
appearance nor customer features." VA is also defined as application of recognized techniques to
identify the functions of a product! Or service and provide those functions at the lowest possible
cost. Value Analysis is a standardized, multi - disciplined team approach that identifies the lowest
cost way and ensures the highest worth to reliably accomplish the functions of a product, process
or service. Value analysis assesses product functions and value to cost ratios, and explores
opportunities for reduction. It uses a job plan, is function based, and requires that a product be
generated result of the study.
Caltrans VA program has evolved over the years since the first study was conducted in
1969. The majority of VA studies are employed to improve projects, but a growing number of

studies are sponsored to improve work processes in order to respond to changing customer
needs, new regulatory or policy challenges and technology advances.
VA is an effective problem solving and quality assurance tool that can facilitate Caltrans goals, to
maximize safety, mobility, delivery, stewardship, and service. Historical data indicates that
projects over $15 million can benefit greatly from this tool. VA studies should be considered to:

Meet or exceed standards and safety objectives

Foster a team approach to problem solving and project development
Improve a projects performance while maximizing quality
Identify and develop strategies to mitigate or avoid risks and the associated costs
Identify opportunities which promote context-sensitive-solutions
Validate projects scope, purpose-and-need, and baseline design

VA studies provide an opportunity for a structured and thorough review by functional experts.
VA studies often reveal new information that fosters a projects advancement in a timely manner.
VA is an effective tool to ensure that Caltrans responsibilities and liabilities as owner of the
facility are adequately addressed in the project design. Caltrans has unique concerns, not to
mention liability, for highway users safety, environmental impacts and regional travel that may
need to be balanced, but not compromised, with competing project objectives of partner agencies
and project stakeholders.
With careful preparation and coordination, VA can aid in obtaining project stakeholder consensus
on key project decisions, leading to the best possible design that is sensitive to the context of the
impacted communities and environment.
Often, the earlier a VA study is undertaken, the more beneficial it will be. Conducting studies in
the later phases of a project, after a significant amount of time and money has been committed to
a chosen design, diminishes the opportunity for identifying viable improvements without
compromising the delivery schedule.
The benefit matrix shown in Figure 19-1, Potential Value Analysis Benefits versus Project
Timing, depicts the benefits that can be derived during the following four primary phases of
project development:

Concept Development of the project initiation document (PID) or project study report
Approval Activities to gain project approval and regulatory acceptance of the
environmental document, known as Project Approval and Environmental Document
Final Design Development of Plans, Specifications, and Estimate (PS&E).
Construction Analyzing constructability, identifying and assessing cost reduction
incentive proposals (CRIPs) and/or evaluating the merit of proposed construction contract
change orders (CCOs).

Larry Miles, an engineer by training, is known as the father of the VA / VE concept. He
developed the technique at General Electric (GE) in the late 1940s.Larry Miles moved from
design engineering to purchasing for General Electric (GE) shortly before the United States
entered World War II. Later (about 1943), he was assigned to be the procurement officer for a GE
manufacturing plant. He developed a reputation of great enthusiasm for conceiving cost-effective
operations and using unusual methods for problem solving. Due to the competition for raw
materials, products, personnel, and other resources in the time of war, Mr. Miles developed a
procedure for procuring, designing, and using components and products. This procedure used
"functions" as its basis. Mr. Miles found that he could more readily obtain what he needed if he
used his new procedure, rather than specifying standard designed components., (For example:
the required product to be provided must translate a rotational force into a lateral force. It must
be able to withstand these stresses, fit within the area allowed, and connect to these other parts.)
This new "function" based procedure was so successful that it was possible to produce the goods
with greater production and operational efficiency, and less expensively.
The terms value analysis / value engineering originated in the early days development of the
techniques. The first approach was rather than reduce costs, to increase values. Hence the need to
analyze value. Soon after Miles developed this systematic methodology, his concepts were
acknowledged as a powerful approach to problem solving through function -based techniques,
and they found their way outside GE into areas such as industry, healthcare and government
services. Miles' techniques resulted into huge savings for design engineers, manufacturing
engineers, purchasing agents, and service providers exhibiting to the users why so much
unnecessary costs exists in everything we do and how to systematically identify, clarify, and
demarcate costs which have no relationship to customers' needs or desires. The name Value
Engineering has subsequently become most universally accepted name for the "function" based
procedure.Mr. Charles Bytheway, in 1960s, during his work for Sperry UNIVAC, created
functional critical path analysis procedure that highlighted the logic of the activity under value
study. A diagramming procedure called the "Functional Analysis System Technique" (FAST) was
later on adopted as a standard component of the Value Method.
VA / VE is an orderly and creative method to increase the value of an item. This item" can be a
product, a system, a process, a procedure, a plan, a machine, equipment, tool, a service or a
method of working. Value Analysis / Value Engineering is defined as 'the professionally
applied, team based, function - oriented, systematic application of recognized techniques
(function analysis) which are as below: Identify the "function of a product, process, project, facility design, system or service,

Establish a monetary value for that function,

Provide the necessary function (defined by the customer to meet his / her requirements),
Consistent with the specified performance and reliability needed at the lowest Iife cycle
cost (cost over the expected life).
And thus Increases customer satisfaction and adds value to the investment.

Value analysis involves identifying product function (s) relating to cost and price analyzing the
design and construction with an eye for eliminating elements not contributing to function. Some
designers think VA undermines good design. If the design was sound the start VA is redundant.
Yet designs and technology change. Sound, innovative designs age and become uncompetitive rivals catch up. Remember car windscreens are today glued into place by robots (adhesive

How is VA different from VE?

Traditionally Value Analysis (VA) is used to describe the application of the techniques to
an existing product or services or after the fact.
Value Engineering (VE) has been used to refer to the design stage or before the fact.
Value Engineering (VE) approach is used for new products, and applies the same
principles and techniques to pre-manufacturing stages such as concept development,
design and prototyping.
Value Analysis and Value Engineering (VE) is a powerful Change Management and
Problem Solving' tool with over a century of worldwide application track record.
VE is used to create functional breakthroughs by targeting value mismatches during
product, process, and project design.
VA is also a vital tool to deal with post product release problems and process
improvement innovation.
Value Analysis (VA) is considered to be a process, as opposed to a simple technique,
because it is both an organized approach to improving the profitability of product
applications and it utilizes many different techniques in order to achieve this objective.
The techniques that support VA activities include 'common' techniques used for all VA
exercises and some that are appropriate for the product under consideration.
A few other names for VA / VE are - Value Management, Value Planning, etc.
Value Analysis process attacks unnecessary costs and is thus one of the most effective
ways to increase an organization's profitability.
However that is only doing half the job.
A truly effective value improvement program cannot only reduce costs, but also improve
operations and product performance.
The VA approach can be effectively used to analyze existing products or services offered
by manufacturing companies and service providers alike.
The VA / VE methodology involves function analysis and everything has a function.
Therefore the methodology has universal application.


Value Analysis / Value Engineering can be applied with equal success to any cost
generating areas.


Value analysis is evaluates a product utility, esteem and market values, each of which are
defined below :
Utility value It is defined as the how useful / functional the product is seen to be.
Esteem value it is defined as the value that customer / user gives to product
attributes, not directly contributing to utility but more relating to aesthetic and
subjective value. Esteem issues and functionality should not be overlooked or
Market value It is defined as the value what market is prepared to pay for the product.
In simple words it is the total of the utility value and esteem value. Mathematically
Market value =Utility value + Esteem value
The main objective of the VA-VE are: The VA / VE objectives is to find and improve on value mismatches in products,
processes and capital projects.
Find important functions define necessary versus un - necessary functions
Find and improve on low performing functions.
Define and segregate the necessary functions from the unnecessary functions and
thereby creatively develop alternative means of accomplishing the necessary
functions at lower total (life cycle) cost.

Need : These are users expectations, may be expressed explicitly, or may be latent.
Value : Value is an imprecise word, its meaning depends both on the user and on
the context.
For example a typewriter ribbon or a word processing package may have good
value while the typewriter or computer may not have.
In an engineering context the distinction can be important, as any cosmetic
changes brought about by Value Analysis or by means of any other technique are
waste of time if the total product is unacceptable to the market.
Value is a quantity, which enhances customer satisfaction or slashes the expense
attributable to the product.

In value method terms:

Value = Worth / Cost


o OR
Value of an item = Performance of its function / Cost
o OR
Value = (+) / (-) = (Benefits) / (Costs)
Value greater than 1.0, the item is perceived to be fair or having good value.
Value is less than 1.0, the item is perceived to be having poor value.
When an item has a perceived worth that far exceeds the life cycle cost, we
usually consider purchasing the item.
An item that does its function better than another, has more value. Between two
items that perform their function equally well, the one that costs less is more
Different customers will interpret the value of a product in different ways.
The performance of its functions could include that it is beautiful (where
needed) or it lends an image to the user / possessor (where desired )
Its common characteristic is a high level performance, capabilities, emotional
appeal, style, etc. relative to its cost.
This can also be expressed as maximizing the function of product relative to its
cost :
Value = (performance + capability / cost) = Function / cost

The use of functions and a function - logic process to describe needs, purposes and
consequences is at the heart of Value Engineering.
The use of function - logic helps people realize and overcome many of the preconceived
Function allows definition of each task in a process or one of its activities in terms of end
goals and not solutions.
A function is described by a verb (action) and an object / noun (preferably measurable).
Placing those functions in a decision - logic diagram helps reach a common
This powerful verb- noun combination helps remove people from the "I want" position to
the basic needs involved.
It also helps people see what parts of their decisions rely on critical features, and where
decisions are requiring substantial support to maintain those (potential valuemismatches).
This assists in focusing upon a precise understanding of the value involved.
Value analysis defines a "basic function" as anything that makes the product work or sell.
A function that is defined as "basic" cannot change.
Secondary functions, also called "supporting functions", described the manner which the
basic function(s) were implemented.
Secondary functions could be modified or eliminated to reduce product cost.
Value is not a matter of minimizing cost.


In some cases the value of a product can be increased by increasing its function
(performance or capability) and cost as long as added function increases more than its
added cost.
The concept of functional worth important.
Functional worth is the lowest cost to provide a given function.
However, there are less tangible "selling" functions involved in a product to make it of
value to a customer.
Function analysis is the starting point of VA, without a genuine function nothing work
and can sell.
All problem solving techniques, attempt to change a condition means of a relevant and
unique solution.
Too detail thought on the objectives, tempts to describe a solution and we may miss the
opportunity to engage in divergent thinking about other alternatives.
When trying to describe problems, we must guard against getting locked in to a course of
action without realizing it, because of our bias.
This underlines importance of abstraction and divergent thinking.
This high level of abstraction can be achieved by describing what is to be accomplished
with a verb and a noun pair.
The verb answers the question, "what is to be done?' "What is it to do? i.e. it defines the
required action.
The noun answers the quest "What is it being done to?" i.e. it tells what is acted upon.
However, identifying function by a verb-noun is not as simple a matter as it appears.
Identifying the function in the broadest possible terms provides the greatest potential for
divergent thinking because it gives the greatest freedom for creatively developing
A function should be identified as to what is to be accomplished by a solo and not how it
is to be accomplished.
How the function is identified determines the scope or range of solutions that can be
That functions designated as "basic" represent the operative function of the item or
product and must be maintained and protected.
Determining the basic function of single components can be relatively simple.
By definition then, functions designated as "basic will not change, but the way those
functions are implemented is open to innovative speculation.
When purchasing a product it is assumed that the basic function is operative.
The cost contribution of the basic function does not, by itself, establish the value of the
Few products are sold on the basis of their basic function alone.
Although the cost contribution of the basic function is relatively small, its loss will cause
the loss of the market value of the product.
The customer's attention directed to those visible secondary support functions, or product
features, which determine the worth of the product.

From a product design point of view, products that are perceived to have high value first
address the basic function's performance and stress the achievement of all of the
performance attributes.
Once the basic functions are satisfied, the designer's then address the secondary functions
necessary to attract customers.
Secondary functions are incorporated in the product as features to support and enhance
the basic function and help to differentiate and sell the product.
The elimination of secondary functions that are not very important to the customer will
reduce product cost and increase value without detracting from the worth of the product.
Eliminating or combining as many secondary functions as possible helps achieve one
objective of value analysis or function analysis, Le. To improve value by reducing the
cost function relationship of a product.

If we consider any product then it is likely that we could list

functions in that product in terms of Nouns and Verbs pairs.
Example: 1


Function type

Primary / essential


Example: 2


Function type

Primary / Essential



Example: 3



The above examples list only a few of the more important functions, If possible it is to
restrict the number of functions to between 5 and 8.
If the number of functions Listed works out to be more than this it is prudent to break
down the project into sub-assembly.
A good example of this is the motorcar.
If we ask a random sample of population to list the functions that they desire of a motor
vehicle and their respective rankings, a list somewhat similar to the one given below
Transport people
Provide safety
Provide comfort

iv. Transport luggage

v. Provide protection
Provide controls
So on
The functions listed above are isolated and too large for consideration and it is better
consider the vehicle as two sub-assemblies.

Taking the chassis as a sub-assembly determines the functions it supports
iv. Convert
v. Provide
(pump accelerator etc.)
So on
To drill drown further each of these functions represent a sub-assembly in itself 1 can be
further studied in detail, and if taken to its logical conclusion we could analyses function
of the car down to its last component level and beyond.
The underlying objective of determining the functions of a product is that it becomes
possible to determine a cost of the function.
Cost: Cost is the expenditure economically justified by production or resource
utilization (product, service or combination of the two),
Costs attributable to a function activity represent the total necessary or approved
expenditures for the realization function.

The cost function matrix is designed to cost an existing product, service or system by
This is in addition to the cost of component parts.
Attributing cost to function brings in perspective the costs to satisfy a function.
That is by this approach it is possible to determine if second order functions are costing
the most to achieve.
An additional advantage from costing by function is that it forces the value analysts to
rigorously examine and understand the nature of the product being investigated.

How to construct/use the matrix:

In the left hand column vertically list all the different parts, sub-assemblies under

In the next column fill in the costs appropriate to each part listed in the first column.
Across the top in the first row list functions desired to be performed.
Establish which part(s) is satisfying such function and to what extent,
For example one part will often contribute towards more than one function.
Apportion the cost of each part amongst the functions to which it contributes where one
component interacts with several functions, the proportion of its interaction needs to be
Total the cost of each function at the bottom of each function column.

Utility of the cost / Function Matrix:

The cost function matrix demonstrates that an apparently minor function is responsible
for a major part of the total cost, or vice versa.
In terms of parts, too, it may show that something relatively unimportant is costing too
Cost may or may not include overheads.
Provided that the costs are ascertained consistently this will make little difference,
although it is advantageous to eliminate overheads to avoid the potential of anomalies.
Worth: The worth of a product has multiple dimensions such as - benefits received,
services obtained, product performance, quality, safety, convenience, status / esteem,
possession, etc.
The worth of the product is an indicative measure of what is in it for the customers.
It is a measure of how well the end product meets the desired core needs and the
peripheral desires of those that have a say in the product selection or its use.
Remember the core and peripheral needs are as perceived by the user and these may
change with different users and even for the same user these may change with time.
Every product has to satisfy the core need failing which its worth will be poor or even
Animator: He is a person in charge of the organization and the execution of a value
analysis study.
Decision-maker: Person who ultimately decides on VA / VE teams recommendations
Value analysis team : A group of expert6s representatives of and concerned about
the objectives of the analysis.
Life-Cycle Costs: The true cost of an item is not just the one time purchase cost in terms
of the amount of money that one pays at the time of purchase.
Much more is at stake.
The purchase of anything, takes into account its long-term utility / effects / costs.
The initial costs plus these long-term costs are called life-cycle costs.
This includes things like the time, the manpower needed (number, expertise,
training/retraining, and so on), the degree of difficulty involved, availability of money or
other resources, the frequency maintenance needed and its associated expenses, the
spares costs, etc.



From a generic point of view, VA / VE

Enables people to pinpoint areas that need attention and improvement.
Provides a method of generating ideas and alternatives for possible solutions to
Provides a means for evaluating alternatives..
iv. Allows one to evaluate and quantify intangibles and to compare apples with
v. Provides a vehicle for dialogue by allowing large amounts of data to be a
summarized in concise form, allowing new and better questions to be asked, and
using numbers to communicate in an information-searching mode.
Documents the rationale behind recommendations and decisions.
Materially improves the value of goods and services.
Value Analysis has been successful in several domains and its application is only limited
by the users creativity.
Some application areas are - Defense; Automotive; Aeronautical; Software development;
Water treatment; Civil engineering; systems and procedures, venture analysis,
forecasting, resource allocation, marketing, Client services; Work processes;
Documentation; Organizational development; etc.
Customer satisfaction and value perception -- The most common application of Value
Analysis is what many have called the "state of the art customer satisfaction and
value perception study.
Here are some of the ways the study pays off for clients:
They need to be competitive on the "Basics" (high satisfaction/low value) not allowing
any weaknesses in, but not investing more than necessary in them. .
They need to dominate the "Value" Issues (high satisfaction/high value). .
They need to know the Value "Opportunity" Issues (low satisfaction/high value) to know
what to invest in for future growth.
They need to know the "Irritations" (low satisfaction/low value) to know where to
Identifying At Risk Customers - A big issue today is the so-called At Risk customer
(those likely to defect).
Value Analysis findings help to determine why a company's customers are At Risk.
And, firms can learn why major competitors' customers are At Risk so they can be
Increasing Employee Loyalty - Value Analysis studies are conducted among Employees
to identify things they expect from any company they work for (The Basics), things they
value, things that irritate them and things they don't care about.
New Product / Service Development - Every marketer has been involved in a study where
consumers "say" they are "very interested in trying a new product which subsequently
fails in the marketplace.
Failure is often considered the consumer's fault whereas it really results from asking the
wrong question.

People don't buy what they are "interested" in, they buy what they value.
The reason most new products fail is that they don't provide enough "new value" to
Value Analysis will show which tangible and intangible aspects of a new product
consumers value and which they do not care about


Several characteristics differentiate the Value Method from other techniques.
These help ensure that the customer obtains the kind of product they need and want,
whereas the firm benefits' by means of cost reduction and profitability.
The prominent characteristics of the value method are
Value-based decision process,
Uses functional approach
Follows a very systematic, formal and organized job plan. It is not haphazard or informal
and it is a management activity that requires planning, control and co-ordination.
Directs efforts towards maximum possible alternatives through creativity techniques.
Taking the appropriate action at the appropriate time so as to produce good results.
Systematic and organized.
The Value Method process uses tested and successful procedures that are directed toward
achieving success in meeting the purposes for the "project" by all involved. The process
instills "common understanding", generates high production and high performing team
activities, reduces the time necessary to obtain a product; and focuses the efforts on the
purposes behind the project or activity being studied. A standard job plan is used to guide
the entire process.

The philosophy of VE is implemented through a systematic rational process consisting of

a series of techniques, including;
Function analysis to define the reason for the existence of a product or its
Creative and speculative techniques for generating new alternatives, and
Measurement techniques for evaluating the value of present and future concepts.
Value Analysis is based on the fundamental principle that the customer is always looking
for the best product at the least cost.
Value is the connection between customer satisfaction and price.
Value, then, is an essential parameter for improving a process by reducing costs while
always maintaining or increasing client satisfaction.
This method analyses a process not as a collection of people or actions, which contribute
to product realization, but as a collection of functions, which need to be satisfied, by a
process with the goal of responding to the needs of the customers.

Phase I - Selection Phase:


To make a value analysis a study group of 4 to 6 persons is formed.

More number of members complicates matters, degenerates discussions, and delays
The team must be interdisciplinary, incorporating a balance of different backgrounds,
viewpoints and departments.
The members should be from equivalent levels in the organizational hierarchy to
minimize peer pressure and politics.
At times, it is helpful to have a decision maker on the team to gain commitment for the
implementation of the VE results.
One or more members of the team must be well versed with the VE process, or else an
outside facilitator can be inducted in the team.
One of the members should be an expert on the subject matter (product /service /
process / etc.) of the VE process.
The team members must have an open mind and be result oriented.
Then we select the item to be studied. The VE study should ;
The item should be one that gives the impression that its cost is too high or that it
does not do its function well.
Solve a problem. The need should be real and be supported by the management.
The selected item should have a good probability of success and implementation.
iv. Complex, multi-component products may give the best returns (scope for
simplification). Products with large usage offer greater savings overall. Old
products may benefit from new technical developments. The team must target
products, services and administrative procedures offering the largest potential
v. Have credible objectives.
Be important to the people in the area being studied.
Have the commitment of the requestor and the VE team.
Have receptivity in the organization, for effective implementation the sponsor and
/ or decision maker must be receptive to change.
Phase II - Information Phase:

In the information phase, the main function and the secondary functions of an item are
The functions are classified into "basic" and "secondary" functions and the cost of
realizing each function is ascertained.
Accurate marginal cost data is needed because VA aims to reduce costs.
However apportioning overheads is difficult generally these are excluded from the VA
exercise (unless it is the overhead elements themselves that are being analyzed)
The first action of the group should be to gather all the information about the item.
Identify and define the components - understand them and their characteristics.
Ask the best specialist of the field, not the person most accessible.
Get a detail of costs.
Collect drawings, specifications, all the written data on the item.

Don't be satisfied with verbal information.

It is better to collect too much information than collect too little.
The attitude of a value analyst should be critical, aggressive, nonconformist, never
satisfied with what she / he receives for the money given.
He must challenge traditional assumptions.
The whole team should be involved in doing this. Use brainstorming to challenge
assumptions. Identify functions that the customer may be looking for, not just those that
the operations manager thinks are essential or non-essential.
A Cost Function Matrix or Value Analysis Matrix is prepared to identify the cost of
providing each function by associating the function with a mechanism or component part
of a product.
Product functions with a high cost-function ratio are identified as opportunities for further
investigation and improvement which are then brainstormed" analyzed, and selected.
The objective of the Function Cost Matrix approach is to draw the attention, of the
analysts away from the cost of components and focus their attention on the cost
contribution of the functions.
Detailed cost estimates become more. Important following function analysis, when
evaluating value improvement proposals.
The total cost and percent contribution of the functions of the item under study will guide
the team, or analyst, in selecting which functions to select for value improvement

For a pencil, for instance:

What is it? (a pencil)

What is it for? (make permanent marks)
What is the main function? (make marks, write lines)
What is the method, material or procedure that was used to realize the main function? (a
graphite stick and wood)
What are the corresponding secondary functions? ("transfer graphite to paper and
"facilitate holding the graphite"
What does the item cost and how can we distribute the cost of realizing the main function
into each secondary function?
Comparing these costs to an item of a similar function, how much should each function
and the total cost? (This example, the pencil, is already a high value item)
It is not important that the individual costs assigned are imprecise.
Because even an imprecise numerical value is much better than an expression such as
"very costly" or "of low cost".
The value of each secondary function is measured:
Does it contribute value? (Is there something that does not contribute value?).
Is the cost in proportion to the function realized?
Does it need all its parts, elements, procedures?
Is there something better to do the same function?

Is there a standard part that can do the function?

The cost of each function is investigated and a monetary numeric value is assigned tolerances
and strict specifications outlined.
What's necessary is separated from what is nice to have.
The guiding principle is: All that does not contribute to the main function is waste and
should be eliminated.


The key component of VANE process is its use of a carefully crafted and thoroughly
tested job plan.
Adherence to the job plan focuses efforts on its specific decision process: that contains
the right kind of emphasis, timing and elements to secure a high quality product.
The job plan and its sub-elements do this by highlighting and focusing everyone on the
involved issues, essential needs, criteria, problems, objectives and concerns.
The eight-step job plan are displayed below.
Various questioning techniques are used in VA / VE process.

The Primary Questions

The questioning sequence used follows a well-established pattern which examines

the PURPOSE for which the activities are undertaken
the PLACE at which the activities are undertaken
the SEQUENCE in which the activities are undertaken
the PERSON by whom the activities are undertaken
the MEANS by which the activities are undertaken with a view to activity

In the first stage of the questioning technique, the Purpose, Place, Sequence, Person, '
Mean of every activity recorded is systematically queried, and a reason for each reply is
What is actually done?
Why is the activity necessary at all?
In order to ELIMINATE unnecessary parts of the job.
Where is it being done?
Why is it done at that particular place?
When is it done?
Why is it done at that particular time?
Who is doing it?
Why is it done by that particular person?
In order to COMBINE wherever possible or REARRANGE the sequence of operations
for more effective results.
How is it being done?
Why is it being done in that particular way?
In order to SIMPLIFY operation.

The Secondary Questions

The secondary questions cover the second stage of the questioning technique, during
which the answers to the primary questions are subjected to further query to determine
whether possible alternatives of place, sequence, persons and/or means are practicable
and preferable as a means of improvement over the existing method.

Thus, during this second stage of questioning, having asked already, about every activity
recorded, what is done and shy is it done, the method study man goes on to inquire what
else might be done.
And, hence: What should be done?
In the same way, the answers already obtained on place, sequence, person and means are
subjected to further inquiry.
Combining the two primary questions with the two secondary questions under each of the
head: purpose, place, etc. yields the following list, which sets out the questioning
technique in full:
What is done?
Why is it done?
What else might be done? What should be done?
Where is it done?
Why is it done there? Where else might it be done? Where should it be done?
When is it done?
Why is it done then?
When might it be done?
When should it be done?
Who does it? Why does that person do it? Who else might do it? Who should do it?
How is it done? Why is it done that way? How else might it be done? How should it be
Do not be distracted by mere aggregate functions such as the rubber on a pencil's end' or
the ice producing part of a refrigerator.
These were functions added since it was. Economical or easy to do so.
They have no relationship with the main function.

Phase lll - Creativity Phase

In this phase the objective is to find a better way to do the main function, by finding a
different material, or concept, or process, or design idea that realizes the main function.
A simple brainstorm procedure to stimulate creativity is stated below:


State the main function clearly and shortly on paper or a blackboard (verb and
noun), so that the group can rivet its attention on it. The physical object or the
specific process is purposively not mentioned. Secondary or aggregate functions
are not stated.
The leader of the group says "We begin now" and when the ideas do not flow so
fast anymore (about 15 to 20 min.) The leader says "That's all".
Members of the group 'think loud' about any potential solution to the problem.

It is very important that they do not analyze their own thoughts or those of others.
They should not smile or react when exotic, improbable or senseless ideas are stated.
They should not criticize or speak with others.
They should only let their imagination run wild and state ideas.
An idea can be inspired by a previous idea. (If no rare ideas are stated, then the members
are analyzing, not making a brainstorm).
iv. The leader registers all ideas on paper or a blackboard.

When the session is finalized, if there is any doubt what was meant by an idea,
the leader clarifies the idea with the help of members.
He does not analyze or discard any idea.
This finalizes the brainstorm.
Other creativity techniques that are popularly used are
- Gordon technique
- Nominal Group Technique
- Morphological synthesis
- Attribute listing technique

Phase IV - Analysis Phase:

The evaluation should be done after an interval, at best about two days after the brainstorm, to
allow the group to gain perspective.

Now the group analyzes each idea.

They group similar ideas.
When evaluating, they do not think why the idea would not work, why it is not possible.
Each idea is developed, making it more practical, making it function better.
A very approximate cost for each idea is estimated and ideas with an apparently low cost
are investigated carefully.
When an idea is canceled, that should be based on facts, not opinions.
A few points to be remembered in this phase are

Identify barriers and eliminate them tactfully.

Barriers are excuses or preconceived ideas that cannot be substantiated with numbers,
facts, detailed and precise information or experimental evidence.
Barriers can be honest beliefs.
Normally there is gold behind a barrier. Select about two to four ideas.

Obtain information for analyzing and developing an idea.

Do not work in isolation.
Once the group has advanced as far as it can on its own, make contact with specialists.
This may be necessary in the selection and also during the development of ideas.


The value analyst is a coordinator of specialists, of groups of experts in other companies.

Obtain information from the best source, not the nearest or most accessible one.
Do not take into account an answer by a person or specialist that lies outside his field of
The use of specialists is a powerful way of tearing down barriers. Avoid generalizations.
Do not accept second hand information. Ask for copies of documents.
Phase V - Development Phase:
This phase attempts a further development of the two to four ideas selected earlier.
A real effort to develop the ideas of lowest cost that do the main function is attempted.
Tests, prototypes, quotations of cost, costs of short term, long term alternatives and of any
new ideas alternatives, prove to be useful at this stage.
At the end of this process, the idea of least cost should have been identified.
Ask yourself: Would I spend my own money on this solution? If not, modify it.

Phase VI - Presentation Phase:

The team must ensure that the person really interested in applying the solution and the decision
maker get to see it.
Present the final solution in writing, in a concise format, stating the savings, costs and a
detailed plan for implementing the idea. To the person that should implement it.
Give a copy to his boss. It should have all the information needed.
The value analysis group should not itself implement the idea, if this is outside its normal
area of work.
As with variety reduction, complacency and ingrained practices can block new
The VA team must communicate and sell their case effectively (with detailed costing and
savings, implementation plans, models or prototypes).
Phase VII - Implementation Phase:
Value analysis is not a method of controlling the work of others or of investigating errors.
Normally the amount of work to implement an idea is greater than the amount of work
needed to produce the idea.
Therefore it is good procedure to let the people that implement the idea get most of the
praise and merit.
This produces excellent work relations.


Phase VIII - Verification Phase:

It is necessary to ensure that the group that implements the idea informs of the savings produced
and other benefits. If needed, the VA team helps them to establish the way the implementation
will be checked and the savings calculated.
Every step of the process is geared toward obtaining a result that increases the ROI
(return on investment) or value for the client (ourselves, our employer, etc.).
The VA team must have a record of the results and a series of "fall back" positions to use
as the Project progresses.





Analysis &





VA is a systematic, rational and structured process. Yet its foundation is based on the
effective use of people in the form of teams.
This foundation itself possess some formidable
challenges to the successful
implementation of VA I VE,
Some of which are ;
VA teams can waste time, be overly conservative and avoid decisions.
The members of the VA team are already saddled with other responsibilities and
in that sense are busy.
Strong narrow - minded interests are common.
iv. The results from a VA study may be threatening, especially to the current
planners, designers, and decision makers.
v. Emotional as well as rational conflict of interest is usually generated.



Function Analysis System Technique is an evolution of the value analysis process.

FAST permits people with dissimilar technical back grounds to effectively communicate
and resolve issues that require multi-disciplined considerations.
FAST builds upon VA by linking the simply expressed, verb-noun functions to describe
complex systems.
FAST is not an end product or result, but rather a beginning.
It describes the item or system under study and causes the team to think through the
functions that the item or system performs, forming the basis for a wide variety of
subsequent approaches and analysis techniques.
FAST contributes significantly to perhaps the most important phase of value engineering:
function analysis.
FAST is a creative stimulus to explore innovative avenues for performing functions.
The FAST diagram or model is an excellent communications vehicle. Using the verb
noun rules in function analysis creates a common language, crossing all disciplines and


It allows multi-disciplined team members to contribute equally and communicate with

one another while addressing the problem objectively without bias or preconceived
With FAST, there are no right or wrong model or result.
The problem should be structured until the product development team members are
satisfied that the real problem is identified.
After agreeing on the problem statement, the single most important output of the multidisciplined team engaged in developing a FAST model is consensus.
Since the team has been charged with the responsibility of resolving the assigned
problem, it is their interpretation of the FAST model that reflects the problem statement
that's important.
The team members must discuss and reconfigure the FAST model until consensus is
reached and all participating team members are satisfied that their concerns are expressed
in the model.
Once consensus has been achieved, the FAST model is complete and the team can move
on to the next creative phase.
FAST differs from value analysis in the use of intuitive logic to determine and test
function dependencies and the graphical display of the system in a function dependency
diagram or model.
Another major difference is in analyzing a system as a complete unit, rather than
analyzing the components of a system.
When studying systems it becomes apparent that functions do not operate in a random or
independent fashion.
A system exists because functions form dependency links with other functions, just as
components form a dependency link with other components to make the system work.
The importance of the FAST approach is that it graphically displays function
dependencies and creates a process to study function links while exploring options to
develop improved systems.
There are normally two types of FAST diagrams, the technical FAST diagram and the
customer FAST diagram.
A technical FAST diagram is used to understand the technical aspects of a specific
portion of a total product.
A customer FAST diagram focuses on the aspects of a product that the customer cares
about and does not delve into the technicalities, mechanics or physics of the product. A
customer FAST diagram is usually applied to a total product.
There is essential logic associated with the FAST HOW-WHY directional orientation.
First, when undertaking any task it is best to start with the goals of the task, then explore
methods to achieve the goals.
When addressing any function on the FAST model with the question WHY, the function
to its left expresses the goal of that function.


The question HOW, is answered by the function on the right, and is a method to perform
that function being addressed.
A systems diagram starts at the beginning of the system and ends with its goal.
A FAST model, reading from left to right, starts with the goal, and ends at the beginning
of the "system" that will achieve that goal.
Second, changing a function on the HOW - WHY path affects all of the functions to the
right of that function.
This is a domino effect that only goes one way, from left to right.
Starting with any place on the FAST model, if a function is changed the goals are still
valid (functions to the left), but the method to accomplish that function, and all other
functions on the right, are affected.
Finally, building the model in the HOW direction, or function justification, will focus the
team's attention on each function element of the model. Whereas, reversing the FAST
model and building it in its system orientation will cause the team to leap over individual
functions and focus on the system, leaving function "gaps" in the system.
A good rule to remember in constructing a FAST Model is to build in the HOW direction
and test the logic in the WHY direction.
The vertical orientation of the FAST model is described as the WHEN direction.
This is not part of the intuitive logic process, but it supplements intuitive thinking.
WHEN is not a time orientation, but indicates cause and effect.
Scope lines represent the boundaries of the study and are shown as two vertical lines on
the FAST model.
The scope lines bound the "scope of the study", or that aspect of the problem with which
the study team is concerned.
The left scope line determines the basic function(s) of the study.
The basic functions will always be the first function(s) to the immediate right of the left
scope line.
The right scope line identifies the beginning of study and separates the input function(s)
from the scope of the study.
The objective or goal of the study is called the "Highest Order Function", located to left
of the basic function(s) and outside of the left scope line.
Any function to the left another function is a "higher order function",
Functions to the right and outside of right scope line represent the input side that "turn
on" or initiate the subject under study and are known as lowest order functions.
Any function to the right of another function is a lower order" function and represents a
method selected to carry out the function being addressed.
Those function(s) to the immediate right of the left scope line represent the purpose
mission of the product or process under study and are called Basic Function(s).
Once determined, the basic function will not change.
If the basic function fails, the product process will lose its market value.


All functions to the right of the basic function(s) portray the conceptual approach selected
to satisfy the basic function.
The concept describes the method being considered, elected, to achieve the basic
The concept can represent either the current conditions (as is) or proposed approach (to
As a general rule, it is best to create a "to be rather than an "as is" FAST Model, even if
the assignment is to improve an existing product.
This approach will give the product development team members and opportunity
compare the "ideal" to the "current" and help resolve how to implement the differences.
Working from an "as is" model will restrict the team's attention to increment:
improvement opportunities.
An "as is" model is useful for tracing the symptoms of problem to its root cause, and
exploring ways to resolve the problem, because of the dependent relationship of functions
that form the FAST model.
Any function on the HOW-WHY logic path is a logic path function.
If the function along the WHY direction lead into the basic function(s), than they are
located on the major logic path. If the WHY path does not lead directly to the basic
function, it is a minor logic path.
Changing a function on the major logic path will alter or destroy the way the basic
function is performed.
Changing a function on a minor logic path will disturb an independent (supporting)
function that enhances the basic function.
Supporting function are usually secondary and exist to achieve the performance levels
specified in the objectives or specifications of the basic functions or because a particular
approach was chosen to implement the basic function(s).
Independent functions describe an enhancement or control of a function located on the
logic path.
They do not depend on another function or method selected to perform that function.
Independent functions are located above the logic path function(s), and art considered
secondary, with respect to the scope, nature, level of the problem, and its logic path.
The next step in the process is to dimension the FAST model or to associate information
to its functions.
FAST dimensions include, but are not limited to: responsibility, budgets, allocated target
costs, estimated costs, actual costs, subsystem groupings, placing inspection and test
points, manufacturing processes, positioning design reviews, and others.
There are many ways to dimension a FAST model.
The two popular ways are called Clustering Functions and the Sensitivity Matrix.
Clustering functions involves drawing boundaries with dotted lines around groups of
functions to configure sub-systems.
Clustering functions is a good way to illustrate cost reduction targets and assign design
to cost targets to new design concepts.

For cost reduction, a team would develop an "as is" product FAST model, cluster the
functions into subsystems, allocate product cost by clustered functions, and assign target
During the process of creating the model, customer sensitivity functions can be identified
as well as opportunities for significant cost improvements in design and production.
Following the completion of the model, the subsystems can be divided among product
development teams assigned to achieve the target cost reductions.
The teams can then select cost sensitive sub-systems and expand them by moving that
segment of the model to a lower level of abstraction.
This exposes the detail components of that assembly and their function/cost

Yield Improvement
Yield is defined as the ratio of the number of products that can be sold to the number of products
that can be manufactured. An Analytical technique, designed to examine all the facts and cost of
a product in order to determine whether any cost item can be reduced or eliminated, while
retaining all the functional performance and quality requirements.
Categories of Yield Improvement
It can be categories in three parts given as below:

Size Optimization
Profile Blanking

Size Optimization
Size optimization defines ideal component parameters, such as material values, cross-section
dimensions and thicknesses. It is used to determine the ideal thickness of a material based on the
performance goals and the forces expected to be placed on the component during its life. In an
optimization process, it is generally used after freeformoptimization once the initial geometry of
the component has been defined and interpreted. In size optimization, the properties of
structural elements such as shell thickness, beam cross-sectional properties, spring
stiffness, and mass are modified to solve the optimization problem.
Defining size variables in OptiStruct is done very similarly to
other size optimization codes. Each size variable is defined using a DESVAR bulk data entry. If
a discrete design variable is desired, a DDVAL bulk data entry needs to be referenced for the
design variable values. The DESVAR cards are related to size properties in the model using

aDVPREL1 or DVPREL2 bulk data entry. Each DVPREL bulk data entry must reference at
least one DESVAR bulk data entry to be active during the optimization. HyperWorks includes a
pre-processor called HyperMesh that can be used to set up any number of size variables for the
Size optimization is done for following advantages:

Change in blank size

Reduction in sheet thickness
Using alternate grade without compromising the part quality & safety

Size Optimization Examples:-

Identified part for Size Optimization

Before Size Optimization


5 mm

Fig. 1. After Size Optimization

Profile Blanking
Blanking is shearing processes in which a punch and die are used to modify webs. The tooling
and processes are the same as in the piercing, only the terminology is different: in blanking the
punched out piece is used and called a blank; in piercing the punched out piece is scrap.
Fine blanking is a specialized form of blanking where there is no fracture zone
when shearing. This is achieved by compressing the whole part and then an upper and lower
punch extract the blank.[5] This allows the process to hold very tight tolerances, and perhaps
eliminate secondary operations.
Materials that can be fine blanked
include aluminums, brass, copper, and carbon, alloy, and stainless steels. Fine blanking presses
are similar to other metal stamping presses, but they have a few critical additional parts. A typical
compound fine blanking press includes a hardened die punch (male), the hardened blanking die
(female), and a guide plate of similar shape/size to the blanking die. The guide plate is the first
applied to the material, impinging the material with a sharp protrusion or stinger around the
perimeter of the die opening. Next a counter pressure is applied opposite the punch, and finally
the die punch forces the material through the die opening. Since the guide plate holds the
material so tightly, and since the counter pressure is applied, the material is cut in a manner more
like extrusion than typical punching. Mechanical properties of the cut benefit similarly with a
hardened layer at the cut edge of the part. Because the material is so tightly held and controlled
in this setup, part flatness remains very true, distortion is nearly eliminated, and edge burr is
minimal. Clearances between the die and punch are generally around 1% of the cut material
thickness, which typically varies between 0.513 mm (0.0200.512 in). Currently parts as thick
as 19 mm (0.75 in) can be cut using fine blanking. Tolerances between 0.00030.002 in
(0.00760.0508 mm) are possible based on material thickness & tensile strength, and part layout.


With standard compound fine blanking processes, multiple parts can often be completed in a
single operation. Parts can be pierced, partially pierced, offset (up to 75), embossed, or coined,
often in a single operation. Some combinations may require progressive fine blanking operations,
in which multiple operations are performed at the same pressing station.
The advantages of fine blanking are:

Excellent dimensional control, accuracy, and repeatability through a production run;

Excellent part flatness is retained;

Straight, superior finished edges to other metal stamping processes;

Little need to machine details;

Multiple features can be added simultaneously in 1 operation;[11]

More economical for large production runs than traditional operations when additional
machining cost and time are factored in (100020000 parts minimum, depending on
secondary machining operations).[12]

One of the main advantages of fine blanking is that slots or holes can be placed very near to the
edges of the part, or near to each other. Also, fine blanking can produce holes that are much
smaller (as compared to material thickness) than can be produced by conventional stamping.
The disadvantages are:

Slightly slower than traditional punching operations;

Higher equipment costs, due higher tooling cost when compared to traditional
punching operations and to higher tonnage requirements for the presses




Fig. 2.

Productivity: Standalone - 8 SPM -Nested40 X 2 SPM

Nesting of Shaped Blanks

Fig. 3. CTL to Trapezoidal Blank




Fig. 4. Productivity:Price reduction when converted from CTL to Coil + 2 Blanks / Stroke @

35 SPM


Fig. 5. Productivity: Price reduction when converted from CTL to Coil + 2 Blanks / Stroke
@ 30 SPM




Fig. 6. Productivity:
Price reduction when converted from CTL to Coil + 2 Blanks / Stroke @ 20 SPM


Zero Bridge Between Blank

Existing Method

with Bridge

Fig. 7. New Method without Bridge



Blank 1

Blank 2

Fig. 8. Productivity: Standalone - 8 SPM @ 200 TProgressive 90 + 225 blanks






Fig. 9. Productivity: 2 Blanks / Stroke @ 30

1 Blanks / Stroke @ 30 SPM

Process: Working Steps

The main working process which used in VA-VE are as:-\

Identification of opportunity
Analysis and Feasibility of options
Developing Solution
Trials & Approvals
Submitting Solution
Obtaining Agreement / Development


Potential Material Saving

Final Blank
Fig. 10.

In this part is identified for the potential savings. *Hatches Portion is Scrap
Analysis & Feasibility:Necessary information about the part was collected:

Material Size, Material Grade, Projected Volume.

Process Flow.
Stamping Process involved in making Final Part.

Development of alternatives: Nested strip layouts were developed by using FTI Software.

Fig. 11.
Developing Solution:

Best Yield.
Material availability & Control.
Process feasibility.
Tool feasibility as per available resources.
System / Quality approval.
Daily requirement.
Investment and Pay back calculation.

Final Trials & QA Approval:46

Final trials done with the presence of concern Dept. Representative.



Japanese Word Obaya meaning BIG ROOM

Founded by Toyota Production System
JBM Group Obaya for Scrap Utilization

Types of Sheet Metal Scraps in JBM Group

Melting Scrap which includes Trimming, Punching nesting Scraps etc..


Fig. 13.

Commercial Scrap which includes End cuts, Pocket punching, etc..

Fig. 14.
Scrap is made in use by making small parts from them. This will increase yield improvement and
the company income. Same process is take place as in the blanking.


In the end of the project I have concluded that the yield improvement is one of the most
important factor that effects a company through many ways and a special department is
responsible for all of this whose work is to just

Analysis that how the yield of a product can be increased

To the increase the company profit
reduces the wastage of raw material and scraps
The importance of yield improvement explained before and it increases the turnover
of the company.

Need of the Hour to Stay Ahead of Competition