ppt value engineering

1. {
VALUE
ENGINEERING
POM PRESENTATION
TEAM 12
• Veeranna
• Vinutha
• Vishal
• Prashant

2. Value – Combination of
 Quality
 Efficiency
 Price
 Service
Ensuring ultimate economy and satisfaction of
purchaser.
Meaning of Value..

3. Value = Function (Utility)
Cost
Mathematical Expression
of Value..

4. COST VALUE
USE VALUE
ESTEEM VALUE
EXCHANGE VALUE
Types of Value..

5. Organized procedure for efficient
identification of unnecessary cost.
Value Engineering..

6.  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..

7.  Saving and cost
 Quality Promotion
 Import substitution
 New Products & Product Design
 Time Consideration
 Standardization
Objectives of Value Analysis

8.  Matrix
 MISS
• Modification
• Improvement
• SubDivision
• Substitution.
Techniques..

9. Procedure..
Collect relevant
information
Define different
Func.
Create diff.
Alternatives
Evaluate the
alternatives
Develop the best
alternative
Implement the
alternative
Identify the product

10.  Based on specific scientific theory
 Rigorous technique
 Need expert knowledge
 Time consuming
 Expensive
Disadvantages..

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