PRESENTATION

BY
Rocky Sharma
GU-2015-0315

M.Tech Mechanical

ER. RAHUL JOSHI

1 GNA UNIVERSITY
VALUE ENGINEERING

 Value, as defined, is the ratio of function to

cost.

 Value engineering (VE) is systematic method

to improve the "value" of goods or products and
services by using an examination of function.
2 GNA UNIVERSITY
 VALUE ENGINEERING

 Value Engineering is an organizational

creative approach for the purpose of
identifying of unnecessary cost.

 Unnecessary cost are that which provides

neither quality, nor use, not appearance, not life
and customer features.

3 GNA UNIVERSITY
 VALUE ENGINEERING
It includes –

1. Cost Cutting
2. Design Review
3. Project Elimination
4. Scope Reduction
5. Quality Reduction
6. Detailed Cost Estimating
7. Redesign

4 GNA UNIVERSITY
VALUE ENGINEERING
 Value is always increased by decreasing costs
while maintaining essential performance.

 Value may also be increased if the customer

needs, wants, and is willing to pay for greater
performance.

 Most people who design a product are quite

often because designer is not sure real needs of
user

 Over designed product by providing it that

features that are not useful to customer is useless.
5 GNA UNIVERSITY
 VALUE ENGINEERING

 The value of a function is defined as the

relationship of cost to performance

max
max Performance
Value =
min
Cost

6 GNA UNIVERSITY
 VALUE ENGINEERING
 VE applies to everything because every
project or process has a function

 VE can be applied at any point of the

design or process

 VE is a problem solving technique

 VE can be used as a technique for

developing design criteria
7 GNA UNIVERSITY
VALUE ENGINEERING
Value engineering is often done by systematically
following a multi-stage job plan. It has the following
eight steps:

1. Preparation
2. Information
3. Analysis
4. Creation
5. Evaluation
6. Development
7. Presentation
8. Verification phase
8 GNA UNIVERSITY
 VALUE ENGINEERING
Preparation-

 It is the most important phase of value

engineering that creates that right and successful
environment.
 In this phase there is interaction of
customer before manufacturing.
 Work done on specifics rather than
on generalities.

9 GNA UNIVERSITY
 VALUE ENGINEERING
Information phase-

 To determine user needs

 To build team knowledge and
understanding of the project
 To completely understand the specific
use of function requirements of the item
 To visit the site (preferable)
 Process continues throughout remainder of
the study

10 GNA UNIVERSITY
VALUE ENGINEERING
Analysis phase-

 The evaluation should be done after each

idea after brainstorming.
 Analyzing of each ideas without thinking that
idea would not work, idea not possible and all
that.
 Identification of barriers and their
elimination tactfully.
11 GNA UNIVERSITY
 VALUE ENGINEERING
Creation-

 In this stage value engineers ask; What are the

various alternative ways of meeting
requirements? What else will perform the desired
function?
 Brainstorming with positive thinking.
 Creative ideas can be developed by number
of check lists.

12 GNA UNIVERSITY
 VALUE ENGINEERING
Evaluation phase-

 Study of ideas that results in cost

saving and their implementation.
 In this stage all the alternatives are assessed
by evaluating how well they meet the required
functions and how great the cost savings will be.

13 GNA UNIVERSITY
 VALUE ENGINEERING
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.
 Ask yourself: would I spent my own money
on this solution? If not modify it.

14 GNA UNIVERSITY
 VALUE ENGINEERING
Presentation –

 In the final stage, the best alternative will be

chosen and presented to the client for final
decision
 To present value engineering study proposals
to the decision makers/stake holders
 To obtain approval/support
 Present final solution in writing in concise
format stating the savings cost and detailed
plan for implementation the idea.
15 GNA UNIVERSITY
 VALUE ENGINEERING
Verification phase-

 Every step of the process is geared

towards obtaining a result that increases
the rate on investment.
 It is necessary to ensure that the group that
implements the idea inform of savings produced
and other benefits.

16 GNA UNIVERSITY
 VALUE ENGINEERING
Conclusion-

Value Engineering helps us to learn how to :

 Improve our career skills
 Separate "Symptoms" from "problems"
 Solve "root cause" problems and
capture opportunities
 Become more competitive by improving
"benchmarking" process
 Take command of a powerful problem solving
methodology to use in any situation
 Reduction in cost of existing products or systems.
17
 Prevention of unnecessary cost in new products .
GNA UNIVERSITY
 THANKYOU

18 GNA UNIVERSITY