FDI in insurance india

Topics: Management, Risk, Risk management Pages: 8 (3840 words) Published: July 28, 2014
DRIVE- WINTER 2013
PROGRAM- MBADS/ MBAFLEX/ MBAHCSN3/ MBAN2/ PGDBAN2
SEMESTER-II
SUBJECT CODE & NAME-MB 0044 - PRODUCTION AND OPERATION MANAGEMENT

Q1. What is value engineering? List the main benefits of value engineering? A Definition and explanation of Value Engineering (VE) Definition-1
Example/s-2
Where is it used?-1
Why is it used?-2
How is it helps the organisation?-2
Listing of the main benefits (any four):-2
Cost reduction
Overall cost consciousness
Culture of effecting savings across organizations
Streamlining of administration
Development of reliable suppliers
Answer.
Value Engineering (VE) or value analysis

Definition
It is a methodology by which we try to minimize the cost and improve the revenue of a product or an operation. This methodology is widely used in business reengineering, government projects, automakers, transportation and distribution, industrial equipment, construction, assembling and machining processes, health care and environmental engineering, and many others.

Example
Let us consider a component which needs a round brass rod as raw material of diameter 21.5mm. The component has to perform seven operations: cutting, drilling, chamfering, boring, milling, plating, and polishing. Value analysis considers all aspects of each of these and investigates whether any of them can be substituted by another material, a different size, a different tool, a different machine, a different cut sequence, a different tool for an operation, a different chemical, a different concentration, a different voltage, shorter time or processing. For the above example, studies can be conducted to verify whether any operation can be eliminated. Simplification of processes reduces the cost of manufacturing. Every piece of material and the process should add value to the product so as to render the best performance. Thus, there is an opportunity at every stage of the manufacturing and delivery process to find the alternatives which will increase the functionality or reduce the cost in terms of material, process, and time. It also includes analyzing the methods used and the tools and equipments involved.

Where it is used
This methodology is widely used in business reengineering, government projects, automakers, transportation and distribution, industrial equipment, construction, assembling and machining processes, health care and environmental engineering, and many others. Thus, there is an opportunity at every stage of the manufacturing and delivery process to find the alternatives which will increase the functionality or reduce the cost in terms of material, process, and time. It also includes analyzing the methods used and the tools and equipments involved.

Why it is used

Value engineering or value analysis is a methodology by which we try to find substitutes for a product or an operation. It finds alternatives for increasing the functionality or reducing the cost in terms of material, process, and time by simplification, variety reduction, and parts reduction. It should be remembered that we are not seeking a cost reduction sacrificing quality. It has been found that there will be an improvement in quality when systematic value analysis principles are employed.

How it helps the organisation
Value engineering in any organizations helps to identify:
The problem or situation that needs to be changed/improved
All that is good about the existing situation
The improvements required in the situation
The functions to be performed
The ways of performing each function
The best ways among the selected functions
The steps to be followed to implement the function
The person who executes the function
It should be remembered that we are not seeking a cost reduction sacrificing quality. It has been found that there will be an improvement in quality when systematic value analysis principles are employed.

Benefits

The main benefits of the application of VE are:
Cost reduction...
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