Scribd
Upload
24 views

5th Lecture

Value analysis is a technique to identify the essential functions of a product or process and provide those functions at the lowest overall cost without compromising quality. It involves a team analyzing a product's design, materials, and manufacturing process to eliminate unnecessary costs. Just-in-time manufacturing is an inventory strategy that aims to reduce waste by producing and delivering goods only as needed, thereby minimizing in-process inventory and its associated costs.

Uploaded by

khushboo58
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
24 views

5th Lecture

Value analysis is a technique to identify the essential functions of a product or process and provide those functions at the lowest overall cost without compromising quality. It involves a team analyzing a product's design, materials, and manufacturing process to eliminate unnecessary costs. Just-in-time manufacturing is an inventory strategy that aims to reduce waste by producing and delivering goods only as needed, thereby minimizing in-process inventory and its associated costs.

Uploaded by

khushboo58
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 24

VALUE ANALYSIS

VALUE ANALYSIS
 Value Analysis is a step approach to identified
the function of a product, process, system or
service; to establish a monetary value for that
function and then provide the desired function
at an overall minimum cost without affecting
any of the existing parameters like Quality,
Maintainability, Productivity, Safely and other
performance characteristics.
k
 Value analysis is a disciplined approach that
ensures necessary functions for minimum cost
without determinant to quality, reliability,
performance and appearance.
 Value analysis is one major technique of cost
reduction. It is team approach and members
of the team are drawn from different
functional areas.
 Value analysis can not degrade or cheapen the
product quality but improves its value by
reducing cost. The elimination of
(unnecessary) cost causes no adverse effect
on quality, reliability, maintainability or sales
ability of the product.
ADVANTAGES/
IMPORTANCE OF VALUE
ANALYSIS
Importance
 Value analysis helps the employees to better
understand their jobs.
 Value analysis reduces the cost of the
product.
 Value analysis create cost consciousness
among the operating personnel of the
essential functions.
 Value analysis generates new concepts and
idea for the R &D work.
 Value analysis motivates employees to come
forward with innovative ideas.
 Value analysis provides good training for the
future managers of a company.
Procedure of value analysis
1. What is the item?
2. What does it do?
3. What does it cost?
4. What else would do the job?
5. What would the alternative cost be?
Answer of these questions, basic steps
are necessary
1) Identified the function- any useful product
has some primary function which must be
identified, a bulb to give light, a refrigerator
to preserve food, etc. these two must be
identified.
2) Evolution of the function by comparison-
value being a relative term, the comparison
approach must be used to evaluate functions.
VALUE ENGINEERING
Value engineering
 Value engineering is usually done by design
engineers. Value Engineering can be defined
as “ an intensive appraisal of all the elements
of design, manufacture, inspection,
procurement, installation and maintenance of
a product and its components, including the
applicable specifications and operational
requirements in order to achieve the necessary
performance , reliability and maintainability
of a product at minimum cost.”
Elements of Value Engineering
a) Product selection
b) Analysis and determination of functions.
c) Collection of information concerning
production such as relating to the present cost,
quality, reliability, development, history etc.
d) Development of alternatives.
e) Cost- analysis of alternatives.
f.) Testing of the alternatives.
g.) Proposal submission.
h) Follow- up
i.) implementation phase
value engineering is where the value of all the
components used in the construction of a
product from design to final delivery stage are
completely analyzed and pursued.
Just- in- time Manufacturing
JIT
 Just-in-time (JIT) is an integrated set of
activities designed to achieve high-volume
production using minimal inventories of raw
materials, work in progress, and finished
goods. Parts arrive at a workstation just when
they are required and move through the
operation quickly. JIT works on a pull system.
JIT
 Just in time is to produced and deliver
finished goods just in time to be sold, make
sub- assemblies just in time to be assembled
into finished goods, fabricate/ purchase parts
just in time to go into sub-assemblies and
procure raw materials just in time to be
transformed into fabricated parts.
 JIT though cuts down drastically the
inventory at different stages yet it is not just a
way to reduce inventory rather it is a means of
solving problems that block the building of an
excellent manufacturing organization. JIT in
fact is a complete business philosophy and the
process of thinking, working and managing to
eliminate waste.
 Waste is ‘anything other than the minimum
amount of equipment, materials, parts and
workers (working time) which are absolutely
essential for production.’
 Waste has been categorized into seven types:
 Waste from overproduction
 Waste of time (waiting)
 Transportation waste
 Inventory waste
 Processing waste

 Waste of motion

 Waste from product defects

The seven elements to eliminate waste are:


 Focused factories

 Group technology

 Quality at the source


 JIT production
 Uniform plant loading
 Kanban production control system
 Minimized set up times

JIT is an inventory strategy implemented to


improve the return on investment of a
business by reducing in process inventory and
its associated costs. The process is driven by a
series of signals, which can be kanban, that
tell production processes when to make the
next part.
 Kanban are usually ‘tickets’ but can be simple
visual signals, such as the presence or absence
of a part on a shelf. Quick communication of
the consumption of old stock which triggers
new stock to be ordered is key to JIT and
inventory reduction. This saves warehouse
space and costs.
Advantages of JIT
o Reduced inventories of raw materials,
purchased parts, work in progress and
finished goods.
o Lower per unit cost due to reduced cycle time
and lower inventories.
o Greater administrative efficiency due to lesser
number of suppliers, simplified receiving
activities.
Disadvantages of JIT
o The organization is highly open to supply
failures.
o Suppliers may raise their prices to cover for
cost of delivery, small production runs,
inventory costs of stocks to be used by them
etc.

You might also like