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What is Value
The minimum money which has to beexpended in purchasing or manufacturing aproduct to create the appropriate use of
esteem factors.
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Division Of Value1. Use of functional Value.
2. Esteem Value.
3. Cost Value.
4. Exchange Value.
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Value analysisA task of finding more economical way of making
or buying a product
A systematic organized approach for attaining thesame performance at lower cost
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Advantages of Value Analysis
It leads to improvements in product design so that, mostappropriate products are produced .
High quality (value) is maintained.
All-round efficiency is achieved by eliminating waste ofvarious types.
Cost savings provide a measure for judging managerialeffectiveness.
New ideas are generated and incorporated.
Teams spirit and morale are improved.
Areas requiring attention and improvement are pinpointed.
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Procedure of Value Analysis There is no standard approach or procedure
Ascertaining the needs and wants of customers.
Specifying the function of products and
components.Determining the appropriate cost of desired
performance.
Identifying better alternatives in terms of works
procedures.
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Implementation of Value
AnalysisIdentifying the function:-
Primary.
Secondary.
Evaluation of the function by comparison
:-
Basic question
“does the function accomplish reliability at the best cost “
Develop Alternatives.
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Value Analysis Steps1. Gather Information.
2. Measure Performance.
3. Analyse Functions.
4. Generate Ideas.
5. Evaluate and Rank Ideas.
6. Develop and Expand Ideas.
7.
Present Ideas.
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Value Engineering
Value engineering is a total ofmanagement which approaches the
question of saving cost from the point ofview of ‘value’.
Requires co-operation of all functionaldepartments.
In large organisations, there are valueengineering teams having full time jobs.
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Value EngineeringValue and cost
Value = Function
Cost
Value: What the product is worth to the customer.
Function: Properties and qualities of product.
Cost: Money value of materials used, Labour &indirect costs.
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Value EngineeringSuggestion schemes
Suggestion scheme facilitates the work of valueengineering team.
The scheme helps in the changes of valueengineering and makes it implementation easier.
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Value Engineering
Requirement of a product
Use.
Esteem.
It is essential to be considered howmuch to be added in order to sell the part.
The reasonable price of a productcan be obtained by comparing with acomparative product.
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Original
Phase
Information
Phase
Innovation
Phase
Evaluation
Phase
Choice
Phase
Implementation
Phase
Review
Phase