Value Engineering and Value Analysis

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Q.1 What is value engineering? Explain the steps involved in Value analysis.

Answer –
Value Engineering : Value Engineering (VE) or value analysis is a methodology by which we try to minimise the cost and improve the revenue of a product or an operation.

Originated during the second world war, and developed by General Electric Corporations (GEC), Value engineering has gained popularity due to its potential for gaining high Returns on Investment (ROI). 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. Value engineering process calls for a deep study of a product and the purpose for which it is used such as the raw materials used, the processes of transformation, the equipment needed, and many others. It also questions whether what is being used is the most appropriate and economical. This applies to all aspects of the product.

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.

Explanation: 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 analysing the methods used and the tools and equipments involved.

Steps Involved in Value Analysis :

The different aspects of value engineering can be encapsulated into a sequence of steps known as a ‘Job Plan’. Value engineering in any organisations helps to identify: 1. The problem or situation that needs to be changed/improved 2. All that is good about the existing situation

3. The improvements required in the situation
4. The functions to be performed
5. The ways of performing each function
6. The best ways among the selected functions
7. The steps to be followed to implement the function

Q.2 Describe dimensions of quality. Which are the quality control tools? Answer –

Quality is inherent in the product or service that is rendered to the customer. Since we are attempting to measure the same, we will look into those aspects of quality, called dimensions of quality. [pic]

Quality Control Tools –
The most popular and widely used tools are called as 7 QC tools. These include flow chart, check sheet, histogram, pareto analysis, scatter diagram, control chart, and cause and effect diagram. These are the basic seven quality control tools used for achieving or improving quality.


1) Flow chart – Flow chart is a visual representation of a process showing the various steps. It helps in locating the points at which a problem exists or an improvement is possible. Detailed data can be collected, analysed, and methods for correction can be developed using flow charts. The various steps include:

- Listing out the various steps or activities in a particular job
- Classifying them as a procedure or a decision


2) Check sheet - Check sheets are used to record the number of defects, types of defects, locations at which they are occurring, times at which they are...
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