Value Analysis Value Engineering

WHAT IS VALUE?

-It is measured by customer's willingness to pay for it.

-The value of a product will be interpreted in different ways by different customers.

-One way of defining the value of an item is: Function

Value = ----------------------------- Price to pay

WHAT IS VALUE ANALYSIS?

- It can be defined as a systematic review that is applied to existing product designs in order to compare the function of the product required by a customer to meet their requirements.

-Value analysis is used to offer a higher performing product or service to the customer at a minimal cost as opposed to substituting an existing product with an inferior solution.

WHAT IS VALUE ENGINEERING?

-It is the term applied in evaluating the design and prototype stage of a new product.

-In value engineering "functions" are always described in a two word abridgment consisting of an active verb and measurable noun

-Value engineering follows a structured process that is based exclusively on “function”.

PRODUCT VERB NOUNVehicle Transport People

Washing machine

Remove Dirt

Bulb Provide Light

Pen Enable Writing

Steering wheel Control Direction

OBJECTIVES OF VA / VE

-Define and segregate the necessary functions from the unnecessary functions

-Creatively develop alternative means of accomplishing the necessary functions at lower total cost

-Improve value of products

VA/VE PROCESSTHE VALUE METHODOLOGY:

Phase I : Selection Phase

“How to select the item to be studied?”

-The item should be one that gives the impression that its cost is too high or that it does not do its function well.

Phase II : Information Phase

-In the information phase, the main function and the secondary functions of an item are studied.

-Identify and define the components - understand them and their characteristics.

Phase III : Creativity Phase

VA/VE PROCESSTHE VALUE METHODOLOGY:

-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. 

Phase IV: Analysis PhaseA few points to remember in this phase…

1. Identify barriers and eliminate them tactfully.

2. Obtain information for analyzing and developing an idea

3.Obtain information from the best source, not the nearest or most accessible one.

VA/VE PROCESSTHE VALUE METHODOLOGY:

Phase V : Development Phase

-Prototypes and quotations of cost prove to be useful at this stage.

-A real effort to develop the ideas of lowest cost that do the main function is attempted

Phase VI: Presentation Phase

-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.

VA/VE PROCESSTHE VALUE METHODOLOGY:

Phase VII : Implementation Phase

-In this stage, what has been done in the previous phase should now be incorporated to the product to increase value.

Phase VIII: Verification Phase

-Ensure that the product really improves in function by conducting customer review

- Results should increase the ROI (Return on Investment)

The FAST diagramFunction Analysis System Technique

What is FAST diagram?-FAST contributes significantly to perhaps the most important phase of VA/VE: Analysis Phase.

-The importance of the FAST approach is that it graphically displays function dependencies and creates a process to study function links

-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. 

The FAST diagramFunction Analysis System Technique

Creating FAST diagram (i.e. pencil)1. Start with the product function.

When do you use pencil?...(when keeping records)

The FAST diagramFunction Analysis System Technique

Creating FAST diagram (i.e. pencil)2. Build in the HOW direction

HOW does it keep records?...(by maintaining the information on the paper

How it maintains

information?

How it records

information?

How it make marks?

How it deposit

medium?

The FAST diagramFunction Analysis System Technique

Creating FAST diagram (i.e. pencil)3. Understand the logic of WHY direction

Why is there a need to apply pressure?...(to deposit medium)

Why is there a need to make

marks?...(to record

information)

VALUE ANALYSIS MATRIX

- The value analysis matrix is designed to cost an existing product, service or system by function.

DEFINITION…

-It is use to draw the attention of the analysts away from the cost of components and focus their attention on the cost contribution of the functions.

VALUE ANALYSIS MATRIX

Creating Value Analysis Matrix (i.e. pencil)1. List all the customer requirements or the functions of the product on the first column.

VALUE ANALYSIS MATRIX

Creating Value Analysis Matrix (i.e. pencil)

2. On the second column, assign values to the functions in order of importance

VALUE ANALYSIS MATRIX

Creating Value Analysis Matrix (i.e. pencil)

3. On the next columns, list all the parts of the product

VALUE ANALYSIS MATRIX

Creating Value Analysis Matrix (i.e. pencil)

4. Create a legend which will relate the parts and functions

VALUE ANALYSIS MATRIX

Creating Value Analysis Matrix (i.e. pencil)

5. Establish the relationship between parts and functions

Identify whether the part and the function is in strong, moderate or weak correlation

Obtain by multiplying the corresponding weight factor and the assigned value in importance column

VALUE ANALYSIS MATRIX

Creating Value Analysis Matrix (i.e. pencil)

6. Compute for the column weight

= 150 + 45= 195+100+200+50+10

VALUE ANALYSIS MATRIX

Creating Value Analysis Matrix (i.e. pencil)

7. Compute for the mechanism weight

= 200 / 555

= 0.351+0.180+0.360+0.090+0.018

VALUE ANALYSIS MATRIX

Creating Value Analysis Matrix (i.e. pencil)

8.