2. Profile of Trainer
Industrial Experience of 16 years with well known organizations.
Being from Engineering background and specialization in
Tooling, done many projects of Product Development.
MBA in International Business, helped in dealing with
International clients according to norms and international law.
Lead trainer for “A.P.Q.P”, “Value Engineering”, “P.P.A.P”,
“F.M.E.A”, “Product Development Practices”, “Tool Room
Management”, “Practices for Good Design”.
4. Who are our Customers?
Most Useful 1. End Users Least heard
Example: Consumer, Service User
2. Intermediate Customers
Example: Retailer, Distributor, OEM
3. Internal Customers
Least Useful Example: Manufacturing, In-plant User Most heard
6. Obtaining Voice of the Customer
Who is the customer?
What should we measure?
How do we measure?
How do we use what we measure?
7. What should we measure?
Good performance and satisfactory perception
Owner / User
Faults & Complaints
Similar completed projects
8. How do we measure?
Any structured information gathering mechanism
Focus group(s) of stake holders
9. What is Value?
Value is a measure of “Cost Effectiveness”.
It is the relationship between functional need(s)
and the cost to meet that need.
Value = (Functional) Performance / (Unit) Cost
10. What is Good Value?
Unnecessary performance even at very low cost is wasteful and
thus is a poor Value.
All functional performance costs money. But not all performance is
needed or even wanted.
Good Value is the lowest product cost required to achieve
high customer / user acceptance.
11. Value Engineering
Value Engineering is the formal or informal attempt to assure
highest value by delivering all required functions at the lowest
It is a systematic review of a project, product or process to improve
performance, quality and / or life-cycle cost by an independent
muti-disciplinary team of specialists.
Value Engineering is not a cost cutting process that reduces
project life cycle time, scope or quality.
12. When is VE / VA study performed?
About at the 25% of design stage
Preliminary line and grade inspection
Preferred alternate stage
13. Objectives of VE / VA
Improve project quality
Reduce project cost
Eliminate unnecessary and costly design elements
Ensure efficient investments
Develop implementation procedures
14. Life Cycle Costing (LCC)
Economic assessment of completing design
Focuses on total costs
Optimizes value and improves return on
investment (ROI) for a given project
16. Reasons for unnecessary project costs
Lack of information
Lack of innovation / ideas
Honest wrong beliefs
Changes in ownership requirements
Lack of communication and specifications
Outdated standards and specifications
17. Individual Efforts
Designer Owner Engineers Users Manager
18. Part – 2 includes Phases in VE / VA Process and
firstname.lastname@example.org Pankaj Nalwa