ENG 5 Q4 WEEk 1 DAY 1 Restate sentences heard in one’s own words. Use appropr...
84929481 value-engineering-case-study
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Cost reduction through value engineering case study on
tap switch control assembly
This section summarizes the VE study carried out on tap switch control Assembly used
on distribution transformers, as illustrated in fig. The objectives of study were to bring down cost,
simplify design and find an alternative to high cost material, without detriment to quality and
reliability.
1. The problem
Transformer is one of the major products manufactured in a wide range, in national and
international markets. In order to improve market and continue to have profit in the high inflation
word, VE study was carried out on “tap switch control assembly”, used on distribution and power
transformers.
The main function of this unit is to facilitate the adjustment of turn ratio of primary to secondary
windings of the transformer. Fig 1 shows the present design of the tap switch control assembly.
2. The objective
The objectives of this study were to bring down cost, simplify design, and to find alternatives to
high cost material, without detriment to quality and reliability.
3. The team
Fig 1. Transformer tap control switch – before value analysis
2. As value engineering is inherently a team task, a group was formed consisting of personnel from
all disciplines, such as design, manufacturing, quality assurance, marketing and value engineering
to achieve the set goal. Team members were given training to enable them to use value-
engineering techniques more effectively and meticulously during the study.
4. The methodology
The value engineering study was carried out in a systematic and organized way, as per VE job
plan, consisting of information phase, functional analysis phase, functional-cost-worth analysis,
creative phase, evaluation phase, recommendations and implementation. These are now
discussed.
a. Information phase
In this phase, team members collected all the relevant information about the items under study.
The study of drawings, material specifications, designs, and processes cost, procurement and
quality problems, as also in-house and field complaints were made in detail. The tap switch
control assembly is a subassembly used in all distribution and power transformers. It is often
required to change the turn ratio of primary to secondary windings of transformers, to adjust
b. Functional analysis phase
The results of a value engineering exercise, generating good alternatives for achieving the desired
functions at optimum cost, mostly depends on how well the functional analysis done. The
functional requirement of the tap switch assembly as a whole is analyzed and recorded as below:
Verb Noun Basic/Secondary
Facilitates Tap change Basic
Transmits Rotation Basic
Prevents Leakage Basic
Indicates Position Secondary
Facilitates Locking Secondary
Prevents Rusting Secondary
Further, the details of the functions of each component in the assembly were analyzed and listed
(annexure B).
c. Function-cost-worth analysis
In this phase, the team found the worth of each item of the subassembly. After identifying the
desired functions of each item, the team established the worth of each item, depending on its
essential function. While establishing the worth, the definition of value, i.e., the lowest price one
has to pay to reliably accomplish a given function, was used as the basis.
The estimated worth was also based on other on other factors such as:
• State of art
• The accuracy of the available information
• Thoroughness of the functional analysis of the item
• An uncommon amount of commonsense
• The experience and subject knowledge of team members
Critically examining the present design, the following points can be made:
1. The basic function of oil-tight gland (switch boss assembly) is to prevent oil leakage and
provide support to the spindle (shaft).
2. Item 12, “switch boss”, is welded to the transformer tank. It is bigger in size, because it
has to accommodate brass plug which has lesser worth (see fig.).
3. 3. Item 13, “plug” is made out of brass. Its function is to position the oil seal. The cost of
the brass plug is about 40 % of the total cost of the subassembly. When compared to its
basic function, the worth of the plug is much less.
4. The stopper provided on anodized aluminum plate is made out of brass material to resist
corrosion.
5. Spindle is machined in order to get smooth surface where the oil seal comes into contact
with it.
With the above information the team members analyzed function cost worth of each item of
the subassembly and arrived at the value gap in each item, as given in annexure C.
d. Creative phase
The poor value (hidden cost) areas, identified earlier, were subjected to brainstorming, to find
out alternative ways of accomplishing the functions. Criticisms and evaluation are avoided in the
brain storming session, to prevent the premature death of potentially good ideas. Even wild ideas
were noted down in line with basic VF principles.
During the brain storming session, a large number of ideas were generated for each item to
perform the same function. Help was taken from experts who were involved in similar design and
process. Vendors were contacted to contribute alternative ideas. In all, 35 ideas were generated
for items of the subassembly; these are listed in annexure D.
e. Evaluation phase
The alternative ideas suggested during the creative phase were refined and analyzed with a view
to ascertain, whether they could achieve the desired functions. This was carried out in two stages:
In the first stage, all suggestions were studied and those, which could not be adopted because of
quality, reliability or other basic reasons, were eliminated, and the others were shortlisted.
In the second stage, the ideas shortlisted after first evaluation were critically studied and
discussed with the concerned personnel, for feasibility and practicability of production. Thus, the
ideas were further shortlisted after first evaluation were critically studied and discussed with the
concerned personnel, for feasibility and practicability of production. Thus, the ideas were further
shortlisted and assigned for feasibility ranking matrix.
For judging the ideas, the following designs were considered:
A function
B cost
C maintainability
D quality and reliability
E space
Each of these design criteria was given a weightage factor. This was carried out as follows: each
of the above criteria was compared with others, and depending on their relative importance, three
categories were formed, viz. major, medium, and minor.
A score of 3,2and 1 respectively was assigned to each of the levels. The details are as follows:
Weight age analysis Points
Major difference 3
Medium difference 2
Minor differences 1
4. Paired comparison
B C D E SCORE
A B2 A2 A1 A3 6
B B2 B1 B3 8
C D2 C2 2
D D3 5
E 1
Example:
Note that the function A and quality D are closely connected with the weightage factor 3.
Weightage for each criterion
A: function 6
B: cost 8
C: maintainability 2
D: quality and
reliability 5
E: space 1
The following short listed ideas for the brass for the brass plug were taken for evaluation:
a. M.S. cover plate instead of plug to hold oil seal
b. Nylon plug
c. Internal circlip to hold oil seal
d. Handle itself as coverplate for oil seal
Feasibility ranking
A B C D E Score Rank
Design
ideas
6 8 2 5 1
A 1/6 2/16 1/2 1/5 3/3 32 IV
B 3/18 2/16 2/4 2/10 1/1 49 II
C 1/6 2/16 2/4 1/5 2/2 33 III
D 2/12 3/24 3/6 2/10 3/3 55 I
Note: 2/16 means score of 16 is achieved as 2 x 8 in row of a column of B. Similarly, the
shortlisted ideas for other components were also evaluated.
f. Recommendations
based on the feasibility ranking of ideas, team members made the following recommendations:
• eliminate brass plug, and its function has to be obtained by redesigning the handle
suitably.
• Standard bright bars of shorter length to be used without machining O.D. for spindle.
• Switch boss has to be redesigned to lesser width.
• Stopper to be redesigned with internal thread and to be made out of aluminium rod.
5. Fig.2 Transformer tap control switch – after value analysis
g. Implementation
Fig 2 shows the proposed design of the tap switch control assembly.
One prototype was built, as per VE team recommendation and tested for its performance and
reliability. Based on the test results, thorough discussions were held with the concerned
department, i.e., production shop, design office, quality assurance and sales and servicing,
and their comments were obtained. Five more assemblies were made as per the proposed
design and sent for field trails. After successful field trials and ensuring that quality and
reliability were unaffected, the proposed designs were introduced in regular production.
Benefits of value engineering
1. Cost benefits
a. Cost of subassembly before value engineering Rs 165.00
b. Cost assembly after value engineering Rs 85.00
(ref. Annexure E for cost benefit on each item) ____________
c. Savings per subassembly Rs 80.00
d. Expected annual savings Rs. 96,000.00
2.Other benefits
a. simplified design
b. reduction in assembly time
c. reduction of components and less inventory
Annexure A: Bill of material
Component No. per
assembly
Bought or
made
material Cost per
piece
Cost per
assembly
Handle 1 B.O Aluminium
casting
20.00 20.00
Spindle 1 B.O Steel bright bar 12.00 12.00
Brass plug 1 B.O Brass (Hex) 67.00 67.00
Switch boss 1 B.O Mild steel 26.00 26.00
Dial plate 1 B.O Aluminium
plate
16.25 16.25
Switch stopper 2 B.O Brass 4.00 8.00
Oil seal 1 B.O Rubber 12.00 12.00
Hardware - B.O Steel 3.75
Total 165.00
6. Annexure B : function analysis
Component Basic function-
verb
Basic function-
noun
Secondary
function-verb
Secondary
function-noun
Handle Changes
Provides
Transmits
Position
Grip
Rotation
Prevents
Locates
Rust
Handle
Spindle Transmits
Connects
Rotation
Mechanical
Prevents
Locates
Rust
Handle
Plug Positions Oil seal Provides
Prevents
Guides
Support
Rust
Spindle
Switch boss Guides
Holes
Spindle
Oil seal
Connects
Prevents
Holds
Mechanical
Leakage
Dial plate
Dial plate Indicates Position Facilitate
Holds
Prevents
Locking
Stopper
Rust
Switch stopper Restricts Over travel Prevents Rust
Oil seal Prevents Leakage Reduces Friction
Hardware Connects
Withstands
Parts
Operative forces
Prevents Rust
Annexure C : function-cost-worth analysis
Component Present
cost
Functions
-verb
Functions-
Noun
Functions-
BS
Worth
(Rs)
Value
gap
Handle 20.00 Transmits
Changes
Provides
Rotation
Position
Grip
B
B
15.00 5
Spindle 12.00 Transmits
Locates
Rotation
Handle
B
S
8.00 4
Brass plug 67.00 Holds
Prevents
Oil seal
Rust
B
S
6.00 61
Switch boss 26.00 Holds
Seats
Spindle
Oil seal
B
B
16.00 10
Dial plate 16.25 Indicates
Holds
Facilitates
Position
Stopper
Locking
B
S
15.00 1.25
Switch stopper 8.00 Restricts Over travel B 2.00 6
Oil seal 12.00 Prevents Leakage B 12.00 0
Hardware 3.75 Connects
Prevents
Parts
Rust
B
S
3.75 0
7. Annexure D : Through brainstorming
Item Ideas generated
Handle 1. Cast iron handle
2. Extended boss in handle for positioning the oil seal
3. M. S. fabricated handle, with plating
4. Spindle and handle one piece made of aluminium or cast
iron
5. Spindle and handle one piece made of DMC or polymer
Spindle 1. Standard bright bar for spindle
2. Short length spindle
3. Made out of DMC
4. Aluminium rod
5. Polymer rod
6. Bakelite rod
Brass plug 1. M.S. coverplate instead of plug to hold oil seal
2. M.S. plug with plating
3. Plastic plug
4. Nylon plug
5. Internal circlip to hold oil seal
6. Die cast aluminium
7. Hard rubber plug
8. Spring loaded pressure plate
9. Handle itself as coverplate for oil seal
10. Threaded wooden plug
11. Eliminate brass plug from the assembly
12. Dial plate itself as coverplate
Switch boss 1. Lesser boss width
2. Cast iron switch boss
3. Put switch outside the oil
Dial plate 1. Fibre reinforced plastic or plastic painted plate
2. Sticker on tank wall instead of displate
3. Bakelite plate with engraving
Switch stopper 1. Mold steel plated stopper
2. Internal threaded stopper
3. Internal threaded aluminium stopper
4. Small dia. Stopper
5. Steel screws instead of special stopper
6. DMC with metal inserts
Annexure E : Benefits Of Value Engineering
Tap switch control assembly
Items Before VE – Rs. After VE – Rs.
Handle 20.00 22.00
Spindle 12.00 8.00
Brass plug 67.00 -
Switch boss 26.00 16.00
Dial plate 16.25 16.25
Switch stopper 8.00 2.00
8. Oil seal 12.00 12.00
Hardware 3.75 3.75
Total 165.00 80.00
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