ve ppt final

Slide 1: 

Welcome to the court of Emperor Jalaluddin Muhammad Akbar

Slide 2: 

Noble men! There is a very important matter before the court today. The raw material price is shooting up. The material cost of a sword has gone up by Rs.10 . And …. We are adding 50,000 soldiers to our army this year. I want to handle this situation without increasing the taxes. Please give your valuable suggestions as to how we should face this situation.

Slide 3: 

Why everyone’s quiet? Birbal! I am surprised that you too have become silent!! Your Majesty, I have six ideas which can reduce the cost of a sword by atleast Rs.20 without compromising the functional requirements.

Slide 4: 

Brilliant!. Tell us those ideas.

Slide 5: 

Presently, the hilt has 7 parts. The proposed design will have 4 . Part Count Reduction

Slide 6: 

For the new hilt, instead of designing exclusive rivets, we can use the rivets of daggers. x Part Commonisation

Slide 7: 

When the Shah of Persia was our Guest last month , I observed that the hilt in his sword does not have a curved portion. We can design similar hilts for our experienced soldiers. Benchmarking

Slide 8: 

Alternate Material The sheath which houses the blade is made of copper now. We can switch over to Alloy steel which is cheaper.

Slide 9: 

Weight Reduction Since alloy steel is stronger than copper, we can reduce the thickness by 0.5 mm which will save material

Slide 10: 

The curved blade design is yielding only 2 pieces per die. If a straight blade is designed, we can extract 3 pieces per die. Yield Improvement

Slide 11: 

Your majesty. The present design is being used since the time of Babur without any failure. We should not risk any design change.

Slide 12: 

Saheb, there is no doubt that the present sword designed by you for my Grandfather’s army is superior. However, let us test this new design in our barracks. If they pass the tests, we will deploy them in the battle field. There is an advantage also. I do not have to increase the tax for more revenues. If the ideas pass the test, we can save at least Rs. Ten Lakhs this year, thus serving the purpose of cost reduction.

Slide 13: 

Birbal! I wonder how you developed these ideas! Is there a systematic way by which others can also be trained to generate such ideas. Yes, your Majesty. With the help of Functional Analysis System Technique(FAST) any body can generate such ideas. FAST is a powerful tool used in Value Engineering (VE) which is an extremely effective system to improve products and services for cost and productivity improvement.

Slide 14: 

Operations Management Prepared by: Harshad Vikrant Preeti Value Analysis & Value Engineering

What is Value? : 

What is Value? Value is Subjective. Good value is achieved when the required performance can be accurately defined and delivered at the lowest life cycle cost. Value = Performance Cost Source: Operations Management by Paneerselvam

Slide 16: 

All started from the ‘Asbestos Affair’ . In 1954 U.S. Navy applied VA concepts for cost improvements, and termed it as VE. This led to the formation of ‘SAVE’. Even NASA conducted VE training & studies. Endorsed by U.S. congress,& recommended for Federal & Highway projects. Source: Operations Management by Paneerselvam

What is VA/VE ? : 

What is VA/VE ? VA/VE is defined as: systematic application of recognized techniques, which identify the function of a Product/Service, establish a monetary value for the function, provides the necessary function reliably at the lowest overall cost. Source: Operations Management by Paneerselvam VA VE

VE in Simple Terms : 

VE in Simple Terms VE is one of the major techniques of Cost Reduction & Cost Prevention. It is a Disciplined and Systematic approach. Ensures necessary Functions/Operations at Minimum Possible Cost. Source: Operations Management by Paneerselvam

What does VE Do? : 

What does VE Do? Improves value of a Product, Service or a Process. Uses combination of creative and analytical techniques to identify alternative ways to achieve objectives. Focuses on delivering the product or service at the best price. Source: Operations Management by Paneerselvam

Slide 20: 

Maintains the functionality and removes irrelevent parts & components. Helps in cost reduction. Helps to add Value to our product/service. Source: Operations Management by Paneerselvam

VA vs. VE : 

VA vs. VE Value Analysis It is an older concept and came to existence in the post WWII era in 1947. Applied to an existing product. Thus it is a Remedial process. Value Engineering It is an extension of value analysis concept, and came to existence from 1954. Applied to a new product. It is a Preventive process.

When to apply : 

When to apply Decline in Sales. Company prices are higher than those of competitors. RM cost has gone up suddenly. Cost of Mfg. is rising disproportionate to volume of production. Firm is unable to meet its Delivery commitments.

Slide 23: 

Touch screen Phones PDA & Palmtops T Ordinary Cell Phones Walkie Talkie

Types : 

Types Source: Operations Management by Paneerselvam COST EXCHANGE USE ESTEEM ESTEEM VALUE

Performance of Product : 

Performance of Product

Basic Phases in VE : 

Basic Phases in VE

How does VE work : 

How does VE work Gather Info Measure Performance Analyze Functions Generate Ideas Evaluate & Rank Ideas Develop Ideas Present Ideas Source: Operations Management by Paneerselvam

Aim : 

Aim

Slide 29: 

APPLICATIONS

Slide 30: 

Thank You