M.
TECH- CM
Value Analysis
MODULE 2
Module 2:
Introduction:
Value Analysis Definition
10 commandments & Principles.
Job plan
Its application to determine right
problem
Value Analysis
Value Analysis” is the application of a set of
techniques to an existing product with a view
to improve its value.
Thus, it is remedial process.
“Value Engineering” is the application of
exactly the same set of techniques to a new
product at the design stage project concept
or preliminary design when no hardware
exists to ensure that bad features not added.
Thus, it is a ‘preventive’ measure.
Value Analysis
Value Analysis (VA) is concerned with existing products.
It involves a current product being analyzed and evaluated
by a team, to reduce costs, improve product function or
both.
Value Analysis exercises use a plan which step-by-step,
methodically evaluates the product in a range of areas.
These include costs, function, alternative components and
design aspects such as ease of manufacture and assembly.
A significant part of VA is a technique called Functional
Analysis, where the product is broken down and reviewed as
a number of assemblies. Here, the function is identified and
defined for each product assembly.
Costs are also assigned to each one. This is assisted by
designing and viewing products as assemblies (or modules).
10 commandments & Principles
Do not use a component or part that does not contribute to the value of the
product.
Do not use a component or part whose cost is not proportional to its
usefulness.
3. Do not provide any features to the component or finished product that are
not absolutely necessary.
4. Accept the change if part of the required quality can be made out of
cheaper and easily available material.
5. If the part of required quality is made by a process or method costing less,
then do use the alternative process or method.
6. Use standard parts wherever possible.
7. Use proper tooling and manufacturing methods taking into consideration the
quantities,
8. The cost of the component used should be proportional to its use or
function.
9. Use the material, part best suited for the purpose.
10. Purchase the part instead of manufacturing in house, if suitable supplier
can provide the part of good quality at the reasonable price
2 3
1 4
TEAM JOB PLAN
APPLICABILITY REPORTIN
G
Job plan
Information
Function Analysis
Creative
Evaluation
Development
Presentation
Resolution
Information
To determine user needs
To gather and tabulate information
concerning the item as presently
designed
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
Get all the facts from the best possible
sources (e.g. design team)
Develop cost models
Determine and evaluate the
function(s) of the present design
Prepare a FAST diagram
Identify & define project Performance
Criteria
Develop project Performance Ratings
Determine present design objectives &
constraints
What does the customer want?
Function Analysis
Purpose: Understand the project from a functional
perspective; what must the project do, rather than
how the project is currently conceived.
FAST- Function Analysis System Diagram
Function is that which makes a product, process or
project work or sell.
All cost is for function.
Primary functions posses value and are required to
make a product work or sell.
Secondary functions have no value and are present
due to the current design of the product.
That characteristic that makes a product or service
have value
Determine by considering the user’s actual needs
The Purpose of a FAST
Diagram is
Show specific relationships of all
functions with respect to each other
Deepen the understanding of the
problem to be solved
Promote discussion and information
gathering – team building
Support the process of creativity
FAST Diagrams
HOW? WHY?
Design “All The Time”
Objective Function
Higher Order Primary Secondary Secondary Assumed
Function Function Function Function Function WHEN?
Required
Secondary
Function
Creative
Criticism/evaluation is prohibited (at this
time)
Free-wheeling is welcomed and
encouraged – be uninhibited and think as a
child
Be spontaneous – rapid fire ‘gut feels’
Quantity is desired over quality – cover the
walls
Combine and add to ideas
Build upon another person’s ideas
How do others solve similar problems
Record all ideas
Evaluation
To evaluate, criticize, and rank alternatives
Identify advantages and disadvantages as compared
to the baseline project
Which alternatives offer the best combination of:
Design-ability
Construct-ability
Operational ease
Quality assurance
Customer satisfaction
And… low life-cycle cost
To develop alternatives that offer the greatest
increase in value
Development
To select the best alternative(s)
To develop complete written and oral proposals
Recommend specifics, not generalities
Make sure your report describes the
disadvantages as well as the advantages
Gather convincing facts
Assure technical adequacy
Spend your client’s money as you would your
own
Complete order-of-magnitude cost estimate
w/LCC
Prepare Proposal
Finalize FAST diagram for proposal
Presentation
To present value engineering
study proposal(s) to the decision
makers/stake holders
To obtain approval/support
To enhance potential
implementation
Resolution
It is final outcome of value Analysis
The decision approved by the expert
team including customers and other
stake holders
