Value analysis

Question 1

what is Value Analysis

Answer 1

one of the major techniques of cost reduction and control.

disciplined approach which ensures the necessary functions for the minimum cost without diminishing quality, reliability, performance and appearance.

Value analysis is an organised approach to identify unnecessary costs associated with any product, material, part, component, system or service by analysis of function and efficiently eliminating them without impairing the quality functional reliability or its capacity to give service.

Question 2

value can be sub-divided into four types

Answer 2

cost value,
exchange value,
use value,
esteem value.

Question 3

Cost Value

Exchange Value

Answer 3

measure of sum of all costs incurred in producing the product.

the measure of all the properties, qualities and features of the product which make the product possible of being traded for another product or for money.

Question 4

“value in value” and “esteem in value”

“Use Value”

Answer 4

Value derived from the product consists of two components namely (a) value due to reliability of performance of the product and the value which the possession bestows upon the buyer

measure of properties, qualities and features which make the product accomplish a use, work or service. price paid by the buyer or the cost incurred by the manufacturer in order to ensure that the product performs its intended function efficiently.

Question 5

Value Analysis and Value Engineering:

Answer 5

“Value Analysis” is the application of a set of techniques to an existing product with a view to improve its value. Thus, it is remedial process.

“Value Engineering” is the application of exactly the same set of techniques to a new product at the design stage project concept or preliminary design when no hardware exists to ensure that bad features not added. Thus, it is a ‘preventive’ measure

Question 6

7 phases of Value Analysis:

Answer 6

1. Phase of Origination: value analysis study team is constituted
2. Phase of Information(function analysis): functional analysis is carried out to determine the functions and uses of the product and its components The cost and importance of each function are identified. A value index is calculated on the basis of cost benefit ratio for each function. A list is being prepared
3. Phase of Innovation: (creative phase) generation of new alternatives to replace or removing the existing ones.
4. Phase of Evaluation: Each and every alternative is analysed and the most promising alternatives are selected.
5. Phase of Choice: The decision makers choose the alternative.
   (Development Phase
   Presentation Phase)
6. Phase of Implementation: The chosen alternative is put to the actual use with the help of the programs and action plans so developed in advance.
7. Phase of Review:

Question 7

Merits of Value Analysis

Answer 7

Improvement in Product Design:
High Quality is maintained
Elimination of Wastage
Savings in Costs
Generation of New Ideas and Products
Encourages Team-Spirit and Morale
Neglected Areas are brought under Focus:
Qualification of Intangibles:
Wide Spectrum of Application:
Building and Improving Company Image

Question 8

Limitations

Answer 8

Lack of motivation
Resistive to change
Lack of knowledge and patience
We are very small or very big
This has been tried earlier and failed
The change is too big
Difficulty of teams meeting or team meeting for getting consensus.

Question 9

Value Management

Answer 9

is a structured means for achieving better business decisions; which can be supported by all stakeholders; improved products and services; enhanced competitiveness by facilitating innovation”

Question 10

Is Value Analysis different from other optimization techniques?

Answer 10

Function Analysis is what distinguishes Value Analysis from other problem solving and optimization techniques. Function analysis enables the needs to be abstracted from the current solution or the current object.

Question 11

FAST

Answer 11

Function Analysis System Technique,

graphical modelling technique used within Function Analysis, to identify relationships between functions based on the questions: How, and Why

Question 12

(FPS)

Answer 12

Functional Performance Specification Technique

a technique to define the requirements of a project, product or service, based on the required Functions and the specific needs related to those Functions.

Question 13

VA was given by?
based on?

Answer 13

Lawrence Miles conceived of Value Analysis (VA) in the 1945 based on the application of function analysis to the component parts of a product

Question 14

The first Value Analysis (VA) program was established by and in?

Answer 14

The first Value Analysis (VA) program was established in the General Electric, USA by about 1947,

Question 15

Basis of VA

Answer 15

the desired function is performed to his satisfaction along with the required level of Quality & Reliability

Question 16

value analysis process

Answer 16

to define the problem and its scope

the functions of the product and its items are derived

These functions are classified into “basic” and “secondary” functions.

A Cost Function Matrix or Value Analysis Matrix is prepared to identify the cost of providing each function by associating the function with a mechanism or component part of a product.

Product functions with a high cost-function ratio are identified as opportunities for further investigation and improvement

A variation of the Function-Cost Matrix is the Value Analysis Matrix which was derived from the Quality Function Deployment (QFD) methodology

Question 17

Value Analysis Matrix
Derived from?

Answer 17

A variation of the Function-Cost Matrix is the Value Analysis Matrix.

This matrix was derived from the Quality Function Deployment (QFD) methodology

Question 18

The objective of the Function Cost Matrix

Answer 18

draw the attention of the analysts away from the cost of components and focus their attention on the cost contribution of the functions.

Question 19

FAST

Answer 19

Function Analysis System Technique

an evolution of the value analysis process created by Charles by the way

Question 20

FAST used for?

Answer 20

ermits people with different technical backgrounds to effectively communicate and resolve issues that require multi-disciplined considerations

FAST builds upon VA by linking the simply expressed, verb-noun functions to describe complex systems

The FAST diagram or model is an excellent communications vehicle

Question 21

types of FAST diagrams

Answer 21

normally two types of FAST diagrams

1. Technical FAST diagram: o understand the technical aspects of a specific portion of a total product.
2. Customer FAST diagram: focuses on the aspects of a product that the customer cares about and does not delve into the technicalities, mechanics or physics of the product. A customer FAST diagram is usually applied to a total product

Question 22

Quality Function Deployment (QFD

Answer 22

t is a “method to transform user demands into design quality, to deploy the functions forming quality, and to deploy methods for achieving the design quality into subsystems and component parts, and ultimately to specific elements of the manufacturing process.”