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VALUE ENGINEERING

POM PRESENTATIONTEAM 12• Veeranna• Vinutha• Vishal • Prashant

Value – Combination of Quality Efficiency Price ServiceEnsuring ultimate economy and satisfaction of purchaser.

Meaning of Value..

Value = Function (Utility)Cost

Mathematical Expression of Value..

COST VALUEUSE VALUEESTEEM VALUEEXCHANGE VALUE

Types of Value..

Organized procedure for efficient identification of unnecessary cost.

Value Engineering..

Began at General Electric Co. during World War II.

Shortages of skilled labour, raw materials, component parts.

G.E. looked for acceptable substitutes. Substitutions often reduced costs, improved

product, or both. VALUE ANALYSIS

Origin..

Saving and costQuality Promotion Import substitutionNew Products & Product DesignTime Consideration Standardization

Objectives of Value Analysis

Matrix MISS • Modification• Improvement• SubDivision• Substitution.

Techniques..

Procedure..

Collect relevant information

Define different Func.

Create diff. Alternatives

Evaluate the alternatives

Develop the best alternative

Implement the alternative

Identify the product

Based on specific scientific theoryRigorous techniqueNeed expert knowledgeTime consumingExpensive

Disadvantages..

Powerful Tool Scientific Tool Keep management update Use of resources Creative ability Proper atmosphere Import substitution Applicable to all stages

Advantages..