Value engineering significance
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This document provides an overview of value engineering, including its definition, implementation process, benefits, and principles. Value engineering is defined as a systematic team approach focused on providing value in a product, system, or service through cost reduction while maintaining quality and performance. It involves an 8-phase process including orientation, information gathering, functional analysis, creativity, evaluation, recommendation, implementation, and development. The benefits of value engineering include lower costs, improved quality, resource efficiency, and increased competitiveness.
Value engineering significance
- 1. P R E S E N T E D B Y : - A K S H A Y P A T E L - I U 1 6 4 1 0 4 0 0 2 1 Y A S H P A T E L - I U 1 6 4 1 0 4 0 0 2 2 M A L H A R P A T E L - I U 1 6 4 1 0 4 0 0 4 2 Value Engineering Significance
- 3. What is Value Engineering? Value Engineering is a function oriented, systematic team approach and study to provide value in a product, system or service. Often, this improvement is focused on cost reduction; however other important areas such as customer perceived quality and performance are also of paramount importance in the value equation.
- 4. IMPLEMENTATION OF VAUE ENGINEERING Value Engineering techniques can be applied to any product process procedure system or service in any kind of business or economic activity including health care, governance, construction, industry and in the service sector.
- 5. Value Engineering focuses on those value characteristics which are deemed most important from the customer point of view. IMPLEMENTATION OF VAUE ENGINEERING
- 6. IMPLEMENTATION OF VAUE ENGINEERING Value Engineering is a powerful methodology for solving problems and/or reducing costs while maintaining or improving performance and quality requirements.
- 7. What are the benefits of Value Engineering ? Value Engineering helps your organization in : Lowering O & M costs Improving quality management Improving resource efficiency Simplifying procedures
- 8. Minimizing paperwork Lowering staff costs Increasing procedural efficiency Optimizing construction expenditures Developing value attitudes in staff Competing more successfully in marketplace What are the benefits of Value Engineering ?
- 9. How is Value Engineering Applied ? The technique of Value Engineering is governed by a structured decision making process to assess the value of procedures or services. 1. Orientation 2. Information 3. Function 4. Creativity 5. Evaluation 6. Recommendation 7. Implementation 8. Development phase
- 10. 1. Orientation Identify issues Prioritize Issues Drafts scopes and objective Establish evaluation factors Determine Study Team Collect Data Prepare for value study
- 11. 2. Information Further familiarization of the project by the team; all team members participate in determine the true needs of the project. Areas of high cost or low worth are identified.
- 12. 3. Function Functional analysis outlines the basic function of a product using a verb and a noun such as ‘boil water’ as in the case of our kettle.
- 13. 4. Creativity This step requires a certain amount of creative thinking by the team. A technique that is useful for this type of analysis is brainstorming. This stage is concerned with developing alternative.
- 14. 5. Evaluation In this phase of the workshop, the VA team judges the ideas developed during the creative phase. The VA team ranks the ideas. Ideas found to be irrelevant or not worthy of additional study are disregarded. Those ideas that represent the greatest potential for cost savings and improvements are selected for development.
- 15. 6. PRESENTATION The presentation phase is actually presenting the best alternative (or alternatives) to those who have the authority to implement the proposed solutions that are acceptable.
- 16. 7. Implementation Develop an implementation plan Execute the plan Monitor the plan to completion During the implementation and follow-up phase, management must assure that approved recommendations are converted into actions.
- 17. 8. DEVELOPMENT PHASE The team develops the selected ideas into alternatives (or proposals) with a sufficient level of documentation to allow decision makers to determine if the alternative should be implemented.
- 18. Principles Value Engineering principles: Systematic method for evaluating product performance and value The use of multi-functional teams Focus on a simplified product
- 19. Advantages Of Value Engineering Value engineering helps achieve an improved product design and quality. Value engineering suggests eliminating the unnecessary functions in the organization that increase costs and have complex ties.
- 20. Value engineering emphasizes on seeking the alternatives for achieving the function and on applying the best alternative among the various courses of actions available. Value engineering provides competitive advantages to the firm in the areas of product quality, costs and customer's satisfaction. Advantages Of Value Engineering
- 21. Value engineering enhances the customers' satisfaction and sales by determining the exact need and expectation of customers. Value engineering focuses on standardization of the parts and components by identifying the possibility of using the same component or function in different products of the company. This brings economy in the cost of manufacturing the parts and components Advantages Of Value Engineering
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