Value Engineering
Value engineering
“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.
‘VA’ and
‘VE’ are closely related terms so much so that many people use them
interchangeably. Value analysis is remedial process. Value Engineering is a
‘preventive’ measure. In that sense, ‘VE’ is fundamental and VA is collateral
because ‘prevention is better than cure.”
Aims
The aims
of value engineering are as follows:
- Simplify the product.
- Use (new) cheaper and better materials.
- Modify and improve product design.
- Use efficient processes.
- Reduce the product cost.
- Increase the utility of the product by economical means.
- Save money or increase the profits.
Value Engineering Procedure
The
basic steps of value engineering are as follows:
- Identify the product.
- Collect relevant information.
- Define different functions.
- Differentiate alternatives.
- Critically evaluate the alternatives.
- Develop the best alternative.
- Implement the alternative.
Step 1: Identify the product. First, identify the
component for study. In future, any design change should add value and it
should not make the product as obsolete one. Value engineering can be applied
to a product as a whole or to sub-units.
Step 2: Collect relevant information. Information
relevant to the following must be collected:
- Technical specifications with drawings
- Production processes, machine layout and instruction sheet
- Time study details and manufacturing capacity
- Complete cost data and marketing details
- Latest development in related products
Step 3: Define different functions. Identify and
define the primary, secondary and tertiary functions of the product or parts of
interest. Also, specify the value content of each function and identify the
high cost areas.
Step 4: Different alternatives. Knowing the
functions of each component part and its manufacturing details, generate the
ideas and create different alternatives so as to increase the value of the
product. Value engineering should be done after a brain storming session. All
feasible or non-feasible suggestions are recorded without any criticism;
rather, persons are encouraged to express their views freely.
Difference between value analysis and value engineering
Value
analysis
|
Value
engineering
|
Value analysis is the applications of a set of techniques to an existing product with a view to improve its value
|
Value engineering is the
application of exactly the
same set of techniques to
a new product at a design
stage
|
Value Analysis is thus a remedial process
|
Value engineering is thus a
preventive process
|
Advantages of value engineering
- It is much faster than other cost reduction techniques
- It is less expensive than other techniques
- It reduces production costs
Applications of value engineering
Value engineering is used in machine tool industries, industries making
accessories for machine tools, auto industries, import substitutes, etc.
