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    Value Analysis

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    Anonymous DQGLUZxH
    Value analysis and value engineering are systematic techniques to identify the function of a product or service and provide that function at the lowest cost. Value analysis is applied to existing products, while value engineering is applied during the design stage of new products. The techniques aim to simplify products, use better materials, modify designs, make processes more efficient, reduce costs, and increase product utility in an economical way. Value analysis should be considered when a company's sales are declining, prices are too high, costs are rising disproportionately, or profits are falling. It evaluates performance and value as a ratio of utility to cost.

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    Value Analysis

    Uploaded by

    Anonymous DQGLUZxH
    104 views8 pages
    Value analysis and value engineering are systematic techniques to identify the function of a product or service and provide that function at the lowest cost. Value analysis is applied to existing products, while value engineering is applied during the design stage of new products. The techniques aim to simplify products, use better materials, modify designs, make processes more efficient, reduce costs, and increase product utility in an economical way. Value analysis should be considered when a company's sales are declining, prices are too high, costs are rising disproportionately, or profits are falling. It evaluates performance and value as a ratio of utility to cost.

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    Value analysis and value engineering are systematic techniques to identify the function of a product or service and provide that function at the lowest cost. Value analysis is applied to existing products, while value engineering is applied during the design stage of new products. The techniques aim to simplify products, use better materials, modify designs, make processes more efficient, reduce costs, and increase product utility in an economical way. Value analysis should be considered when a company's sales are declining, prices are too high, costs are rising disproportionately, or profits are falling. It evaluates performance and value as a ratio of utility to cost.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    104 views8 pages

    Value Analysis

    Uploaded by

    Anonymous DQGLUZxH
    Value analysis and value engineering are systematic techniques to identify the function of a product or service and provide that function at the lowest cost. Value analysis is applied to existing products, while value engineering is applied during the design stage of new products. The techniques aim to simplify products, use better materials, modify designs, make processes more efficient, reduce costs, and increase product utility in an economical way. Value analysis should be considered when a company's sales are declining, prices are too high, costs are rising disproportionately, or profits are falling. It evaluates performance and value as a ratio of utility to cost.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 8

    VALUE ANALYSIS / VALUE ENGINEERING

    Value

    Analysis is the systematic

    application
    of recognized techniques which identify the
    function of a
    product or service, establish a monetary value for
    the
    function and provide the necessary function
    reliability at
    the lowest cost
    Value Engineering is the application of
    exactly the same set of techniques to a new
    product at the design stage

    DFM: An Example
    (a) The original design

    Assembly using
    common fasteners

    (b) Revised design

    (c) Final design

    One-piece base &


    Design for push-and-snap
    elimination of fasteners
    assembly

    AIMS
    Simplify the product
    Use (new) cheaper and better
    materials
    Modify and improve product design
    Use efficient process
    Reduce the product cost
    Increase the utility of the product by
    economical means
    Save money or increase the profits

    WHEN TO APPLY VALUE ANALYSIS

    Companys products show decline in sale


    Companys prices are higher than those of

    its competitors
    Raw materials cost has gone up suddenly
    New designs are being introduced
    The cost of manufacturing is rising
    disproportionate to the volume of
    production
    Rate of return on investment has a falling
    trend
    The firm is unable to meet its delivery
    commitments

    PERFORMANCE (Utility)

    VALUE

    = --------------------COST

    VALUE:
    The designer equates the value with Reliability;
    Purchase person with price paid for the item;
    Production person with what it costs to
    manufacture and
    Sales personnel with what the customer is willing
    to pay.
    Types of Value:
    Cost Value
    Exchange Value
    Use Value
    Esteem Value

    Cost Value
    It is the summation of labour, material, overhead
    and all other elements of cost required to
    produce an item or provide service.
    Exchange Value
    Exchange value refers to the price that a
    purchaser will offer for the product, the price
    being dependent upon satisfaction (value) which
    he derives from the product.
    Use Value
    It is also known as the function value. The use
    value is equal to the value of the functions
    performed.
    Esteem Value
    It involves the qualities and appearance of a
    product which attract persons and create in them
    a desire to posses the product.

    Value Engineering Procedure


    1. Blast (i) Identify the product
    (ii) Collect relevant information
    (iii) Define different functions
    2. Create
    (i) Different alternatives
    (ii) Critically evaluate the
    alternatives
    3. Refine
    (i) Develop the best
    alternatives
    (ii) Implement the alternatives

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