Subject: Industrial Engineering And Management

Topic: Value Engineering and Value Analysis

Difficulty: High

1. Value engineering is the process of improving the value of a product at every stage of the product life cycle.

2. At the development stage, Value engineering improves the value of the product by reducing the cost without reducing the quality.

3. At the maturity stage, Value engineering reduces the cost by replacing he costly components (parts) by cheaper components.

4. Value engineering also tries to improve the value and quality of the product. Value is the satisfaction which the consumer gets by using the product. Value engineering tries to give maximum value for a lowest prize.

5. Value engineering critically examines the contribution made to the product by each feature of a design. It then looks to deliver the same contribution at lower cost.

6. As the same output is being achieved by uses of laser input resources, the productivity increases due to the Value engineering.

Fields of application of Value engineering:

1. Value engineering uses rational logic and the analysis of function to identify relationships that increase value.

2. Fields where the raw material is scarce, skilled labour is in shortage or component part are not easily available require Value engineering to get most use out of the available substitutes.

3. Usually, these lead to reduction in cost, improvement in product or both, which in turns give rise to a better product.

4. Value engineering is used in most industries where the input is very critical to the product quality such as in manufacturing industry, the raw material should be a proper specification and strength as required but at the same time the cost should not be too high.

5. The different places where Value engineering can be used are as follows:

• Lowering operations and maintenance costs.

• Improving quality management.

• Improving resource efficiency.

• Simplifying procedures.

• Lowering staff costs.

• Increasing procedural efficiency.

• Optimizing construction expenditures.

• Developing value attitudes in staff.

• Competing more successfully in marketplace.

• Motivates employees for creative thinking.

• Prevents over design of components.