Value Engineering TQM

VALUE
ENGINEERING
SUMIT KUMAR
15MMF0016
ROHIT DEVARE
15MMF0017
ORIGIN OF VALUE
ENGINEERING
Value engineering began at

General Electric Co. during
World War II.
Effect of World War II: Shortage of skilled labour Raw

material Component part.
scientist look for acceptable
substitutes.
substitutions often reduced costs,
DEFINITION OF VALUE
Value, as defined, is the ratio of functionality to
cost. Value can therefore be increased by either
improving the function or reducing the cost.
VALUE means different things to different
people: To a Designer, Value means Reliability of
Performance.
To a Financier, Value of product is the financial
returns it can bring.
To a Customer, Value is a comparative
DEFINITION OF VALUE
ENGINEERING
Value engineering (VE) is systematic method to
improve the "value" of goods or products and
services by using an examination of function.
TERMINOLOGY: Value Analysis is used in connection with the study
of items of overhead expenditure and products
already in existence.
Value Engineering is the study of designs and
systems prior to the issue of final production
drawings.
WHAT VALUE ANALYSIS CAN

DO?
Focus on the big picture

Improve decision making
Develop realistic budgets
Ensure required functions are addressed
Enhance understanding of total project
Challenge paradigms
Identify and remove unnecessary costs
Accelerate the design process
Encourage cross-discipline
communication
What is Value Engineering?
Systematic problem solving process

Multi-discipline team approach
Life-cycle cost oriented
Value oriented (measurement of
scope
performance/project costs)
Function-based analysis
Free of normal design restrictions
A proven management technique
When to perform VE
study?
Concept stage (scoping)

Schematic design stage (beginning PS&E)
20-30 percent development stage
Value Engineering Team

We start with a small group of experts
in the required
discipline(design,bridge,construction,
environmental,maintenance, traffic)
Then we add partners from outside
(cities, counties, other agencies,
outside funding sources, permitting
agencies)
Phase of Value
Engineering Process
Investigation Phase:- Investigate the

background information, technical
input reports, field data, function
analysis, and team focus and
objectives.
Speculation Phase :-Be creative and
brainstorm alternative proposals and
solutions.
Phase of Value
Engineering Process
Evaluation phase:- Analyze design

alternatives, technical processes, life
cycle cost, documentation of logic, and
rationale.
Development phase:- Develop technical
and economic supporting data to prove
the feasibility of the desirable concepts.
Develop team recommendations. Both
long and short term.
Phase of Value Engineering

Process
Presentation Phase :-Present the

recommendations of the VE team in an oral
presentation to the Design Team and in a
written report and workbook.
Implementation Phase:- The Design Team
then evaluates the VE Teams
recommendations and implements those
that are acceptable to them.
Audit Phase:- Performance measures of the
recommendations are compiled and
reported to higher authorities.
How do we use value engineering?

Function of the individual
component
New Ideas
Justification - low cost and
low maintenance
Becomes a design standard
Guardrail around bridge

pillar
Result of Value Engineering
value engineering is a company wide activity

which can produce changes in attitudes and
provide a way of engineering handling significant
problems effectively.
It encourages employee to think and use their

creative abilities, and to effectively communicate
with each other.
It introduces significant cost information in a
usable form at the time it will most influence
decisions and ultimate cost.
CASE STUDY
This is a case study of SUMMIT ENGINEERING
Pvt. Ltd. Ghaziabad, UP who manufactures
bath fittings
The steps used in analysis are1.Detailed Information about parts is collected
2.Functional Definition Worksheet is prepared
3.Creative Worksheet is prepared
4.Evaluation is done through decision matrix
5.Finding and Recommendation
Functional Definition
Worksheet
Creative Worksheet
Change material to other like platics
etc
Use stainless steel pipes
Change desgin of parts if possible
Change specifications of parts
Evaluation Matrix
Results
Results of case study

Value Engineering TQM

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VALUE

Value engineering began at

Effect of World War II: Shortage of skilled labour Raw

WHAT VALUE ANALYSIS CAN

Focus on the big picture

What is Value Engineering?

Systematic problem solving process

Concept stage (scoping)

Value Engineering Team

Investigation Phase:- Investigate the

Evaluation phase:- Analyze design

Phase of Value Engineering

Presentation Phase :-Present the

How do we use value engineering?

Guardrail around bridge

Result of Value Engineering

value engineering is a company wide activity

It encourages employee to think and use their

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