1. GNA UNIVERSITY1
PRESENTATION
BY
Rocky Sharma
GU-2015-0315
M.Tech Mechanical
ER. RAHUL JOSHI

2. VALUE ENGINEERING
GNA UNIVERSITY2
 Value, as defined, is the ratio of function to cost.
 Value engineering (VE) is systematic method to
improve the "value" of goods or products and
services by using an examination of function.

3. VALUE ENGINEERING
GNA UNIVERSITY3
 Value Engineering is an organizational creative
approach for the purpose of identifying of
unnecessary cost.
 Unnecessary cost are that which provides neither
quality, nor use, not appearance, not life and
customer features.

4. VALUE ENGINEERING
GNA UNIVERSITY4
It includes –
1. Cost Cutting
2. Design Review
3. Project Elimination
4. Scope Reduction
5. Quality Reduction
6. Detailed Cost Estimating
7. Redesign

5. VALUE ENGINEERING
GNA UNIVERSITY5
 Value is always increased by decreasing costs while
maintaining essential performance.
 Value may also be increased if the customer needs,
wants, and is willing to pay for greater performance.
 Most people who design a product are quite often
because designer is not sure real needs of user
 Over designed product by providing it that features
that are not useful to customer is useless.

6. VALUE ENGINEERING
GNA UNIVERSITY6
 The value of a function is defined as the relationship
of cost to performance
Performance max
Cost min
Value max =

7. VALUE ENGINEERING
GNA UNIVERSITY7
 VE applies to everything because every project or
process has a function
 VE can be applied at any point of the design or
process
 VE is a problem solving technique
 VE can be used as a technique for developing
design criteria

8. VALUE ENGINEERING
GNA UNIVERSITY8
Value engineering is often done by systematically
following a multi-stage job plan. It has the following
eight steps:
1. Preparation
2. Information
3. Analysis
4. Creation
5. Evaluation
6. Development
7. Presentation
8. Verification phase

9. VALUE ENGINEERING
GNA UNIVERSITY9
Preparation-
 It is the most important phase of value
engineering that creates that right and successful
environment.
 In this phase there is interaction of customer
before manufacturing.
 Work done on specifics rather than on
generalities.

10. VALUE ENGINEERING
GNA UNIVERSITY10
Information phase-
 To determine user needs
 To build team knowledge and understanding of
the project
 To completely understand the specific use of
function requirements of the item
 To visit the site (preferable)
 Process continues throughout remainder of the
study

11. VALUE ENGINEERING
GNA UNIVERSITY11
Analysis phase-
 The evaluation should be done after each idea
after brainstorming.
 Analyzing of each ideas without thinking that idea
would not work, idea not possible and all that.
 Identification of barriers and their elimination
tactfully.

12. VALUE ENGINEERING
GNA UNIVERSITY12
Creation-
 In this stage value engineers ask; What are the
various alternative ways of meeting
requirements? What else will perform the desired
function?
 Brainstorming with positive thinking.
 Creative ideas can be developed by number of
check lists.

13. VALUE ENGINEERING
GNA UNIVERSITY13
Evaluation phase-
 Study of ideas that results in cost saving
and their implementation.
 In this stage all the alternatives are assessed by
evaluating how well they meet the required
functions and how great the cost savings will be.

14. VALUE ENGINEERING
GNA UNIVERSITY14
Development phase-
 This phase attempts a further development of the
two to four ideas selected earlier.
 A real effort to develop the ideas of lowest cost
that do the main function is attempted.
 Ask yourself: would I spent my own money on
this solution? If not modify it.

15. VALUE ENGINEERING
GNA UNIVERSITY15
Presentation –
 In the final stage, the best alternative will be
chosen and presented to the client for final
decision
 To present value engineering study proposals to
the decision makers/stake holders
 To obtain approval/support
 Present final solution in writing in concise format
stating the savings cost and detailed plan for
implementation the idea.

16. VALUE ENGINEERING
GNA UNIVERSITY16
Verification phase-
 Every step of the process is geared towards
obtaining a result that increases the rate on
investment.
 It is necessary to ensure that the group that
implements the idea inform of savings produced
and other benefits.

17. VALUE ENGINEERING
GNA UNIVERSITY17
Conclusion-
Value Engineering helps us to learn how to :
 Improve our career skills
 Separate "Symptoms" from "problems"
 Solve "root cause" problems and capture
opportunities
 Become more competitive by improving
"benchmarking" process
 Take command of a powerful problem solving
methodology to use in any situation
 Reduction in cost of existing products or systems.
 Prevention of unnecessary cost in new products .

18. GNA UNIVERSITY18
THANKYOU