Value engineering value analysis

value analysis example

Often products have been developed under tight time constraints and as a result, a wide variety of parts and materials have been sourced and used. They called their technique "value analysis".

Value analysis and value engineering slideshare

Because of the war, there were shortages of skilled labour, raw materials, and component parts. Please see the Lean Manufacturing Essentials section for specific details about production-based cost reduction. Costs are also assigned to each one. History[ edit ] Value engineering began at General Electric Co. On the face of it, the reasons for value analysing existing products may seem obvious. This is understandable when you consider the design of any product determines many factors, such as tooling, plant and equipment, labour and skills, training costs, materials, shipping, installation, maintenance, as well as decommissioning and recycle costs. For example a screw driver that is being used to stir a can of paint has a "function" of mixing the contents of a paint can and not the original connotation of securing a screw into a screw-hole. It is applied during product development. What started out as an accident of necessity was turned into a systematic process. This is assisted by designing and viewing products as assemblies or modules.

They do this in order to reduce their costs not only in product development, but in all areas of the business, particularly production. Therefore value engineering should be considered a crucial activity late on in the product development process and is certainly a wise commercial investment, with regard to the time it takes.

This is assisted by designing and viewing products as assemblies or modules. VE follows a structured thought process that is based exclusively on "function", i.

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However you may find yourself in a situation where you need to convince others and make the case for undertaking a VA exercise. On the face of it, the reasons for value analysing existing products may seem obvious.

The focus is on reducing costs, improving function or both, by way of teamwork-based product evaluation and analysis. It is strongly recommended you build value engineering into your new product development process, to make it more robust and for sound commercial reasons.

This is understandable when you consider the design of any product determines many factors, such as tooling, plant and equipment, labour and skills, training costs, materials, shipping, installation, maintenance, as well as decommissioning and recycle costs.

difference between value engineering and value management

This is the basis of what value engineering refers to as "function analysis". List the basic functions the things for which the customer is paying.

Consider applying them to your specific situation.

Types of value engineering

Reducing Costs by Using Value Engineering in Conjunction with other World Class Manufacturing Techniques Before we move on and examine the specifics of value analysis, it is worth pointing out some of the best performers in industry often use value analysis, in conjunction with other world class manufacturing techniques, such as Lean Manufacturing. It is strongly recommended you build value engineering into your new product development process, to make it more robust and for sound commercial reasons. This takes place before any capital is invested in tooling, plant or equipment. Costs are also assigned to each one. Value Analysis exercises use a plan which step-by-step, methodically evaluates the product in a range of areas. They do this in order to reduce their costs not only in product development, but in all areas of the business, particularly production. Often products have been developed under tight time constraints and as a result, a wide variety of parts and materials have been sourced and used. History[ edit ] Value engineering began at General Electric Co. Determine the relative importance of each function, preferably by asking a representative sample of customers who will always surprise you with what they prefer. However you may find yourself in a situation where you need to convince others and make the case for undertaking a VA exercise. In the screw driver and can of paint example, the most basic function would be "blend liquid" which is less prescriptive than "stir paint" which can be seen to limit the action by stirring and to limit the application only considers paint.
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Value analysis and value engineering