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1 Basic VA&VE Value Analysis & Value Engineering
Content What is VAVE? Why do we need VAVE? How do we start to learn VAVE?
What  is VAVE?
History Came from GE Company  During World War II “Asbestos Event”
History Book “Techniques of Value  Analysis  Engineering”
Formula V=F/C F function:功能重要性系数 C cost:成本系数 V value:功能价值系数
V=F/C
V=F/C Transition Value Cost F function:功能重要性系数 C cost:成本系数 V value:功能价值系数
Value is increased by increasing performance if the customer needs, wants, and is willing to pay for more performance What is Value? [Definition] A product or service is generally considered to have good value if that product or service has appropriate performance and cost Value is always increased by decreasing costs (while, of course, maintaining performance). V=F/C
Maximum Value Normal Degree of Value Importance of Value
What is Function? The basic purpose of each expenditure, whether it be for hardware, the work of a group of men, a procedure, or whatever, is to accomplish a function. It is necessary to establish the language of function and stay within this language. V=F/C
Use Function Aesthetic Function Basic Function Secondary Function
What is VA/VE? Synonymous with the terms value management and value analysis, value engineering is a professionally applied, function-oriented, systematic team approach used to analyze and improve value in a product, facility design, system or service-a powerful methodology for solving problems and/or reducing costs while improving performance/quality requirements. By enhancing value characteristics, Value Engineering increases customer satisfaction and adds value to your investment. Value Engineering can be applied to any business or economic sector, including industry, government, construction and service. Using Value Engineering is a very successful long-term business strategy.“                                                           Lawrence D. Miles
What is VAVE? Term:	VA= VE= Value Management Process:	Function-oriented  & Systematic approach to 		analysis product Purpose:	Solving problems and/or reducing costs 			/improving value Field:		industry, government, construction and 			service View:	Successful long-term business strategy
What is different VAandVE? VA VE Existing product or service Manufacture, After sales Process innovation Unnecessary cost, Improvement performance  New product or service Prototyping, Design or Per-manufacture Function breakthrough Increase Value
What is different VA and VE? VE VA VA/VE
System Methodology Simple Function Analysis Cost  Analysis Do Job Plan
Why  do we need   VAVE?
VAVE Expands Markets
  Company - Volume Increasing
Product Cycle Volume Sales Volume and  Profit Profit Introduce Growth Maturity Decline
Product Cycle Develop Effect of timing and degree of change from performance- oriented skills to value oriented Skills
Resource develop Different resource assigned by value oriented
VAVE Reduce Cost
Boss requirement    VAVE is effective approach for cost reduction
Cost Reduction Approach VE  40% VA  20% Others 10% IE  10% Purchase10% QC 10% Data from Semi-conduct Company
Benefit Expand Market and Jobs Elimination of Human Toil Adequate Defense for Lower Cost Opportunity Effect of Design Time Shortage Lack of Measurement in Value Work Human Factors
How   do we start to learn VAVE?
  Training & Learning
Practice Tools
Relative People Product
What can we do now? Package Shipment Material Deploy VAVE to Supplier Idea Generate Others
Story King Worries
Lesson Review What is VAVE VAVE History VAVE formula and definition  What is value and function What is different between VA and VE VAVE system methodology Why do we need VAVE VAVE Expands Markets VAVE Reduce Cost Others How do we start to learn VAVE? How to learn and get trained VAVE? Practices  and relative people Cooper Way Opportunity field Thank You

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What is VAVE

  • 1. 1 Basic VA&VE Value Analysis & Value Engineering
  • 2. Content What is VAVE? Why do we need VAVE? How do we start to learn VAVE?
  • 3. What is VAVE?
  • 4. History Came from GE Company During World War II “Asbestos Event”
  • 5. History Book “Techniques of Value Analysis Engineering”
  • 6. Formula V=F/C F function:功能重要性系数 C cost:成本系数 V value:功能价值系数
  • 8. V=F/C Transition Value Cost F function:功能重要性系数 C cost:成本系数 V value:功能价值系数
  • 9. Value is increased by increasing performance if the customer needs, wants, and is willing to pay for more performance What is Value? [Definition] A product or service is generally considered to have good value if that product or service has appropriate performance and cost Value is always increased by decreasing costs (while, of course, maintaining performance). V=F/C
  • 10. Maximum Value Normal Degree of Value Importance of Value
  • 11. What is Function? The basic purpose of each expenditure, whether it be for hardware, the work of a group of men, a procedure, or whatever, is to accomplish a function. It is necessary to establish the language of function and stay within this language. V=F/C
  • 12. Use Function Aesthetic Function Basic Function Secondary Function
  • 13. What is VA/VE? Synonymous with the terms value management and value analysis, value engineering is a professionally applied, function-oriented, systematic team approach used to analyze and improve value in a product, facility design, system or service-a powerful methodology for solving problems and/or reducing costs while improving performance/quality requirements. By enhancing value characteristics, Value Engineering increases customer satisfaction and adds value to your investment. Value Engineering can be applied to any business or economic sector, including industry, government, construction and service. Using Value Engineering is a very successful long-term business strategy.“ Lawrence D. Miles
  • 14. What is VAVE? Term: VA= VE= Value Management Process: Function-oriented & Systematic approach to analysis product Purpose: Solving problems and/or reducing costs /improving value Field: industry, government, construction and service View: Successful long-term business strategy
  • 15. What is different VAandVE? VA VE Existing product or service Manufacture, After sales Process innovation Unnecessary cost, Improvement performance New product or service Prototyping, Design or Per-manufacture Function breakthrough Increase Value
  • 16. What is different VA and VE? VE VA VA/VE
  • 17. System Methodology Simple Function Analysis Cost Analysis Do Job Plan
  • 18. Why do we need VAVE?
  • 20. Company - Volume Increasing
  • 21.
  • 22.
  • 23. Product Cycle Volume Sales Volume and Profit Profit Introduce Growth Maturity Decline
  • 24. Product Cycle Develop Effect of timing and degree of change from performance- oriented skills to value oriented Skills
  • 25. Resource develop Different resource assigned by value oriented
  • 27. Boss requirement VAVE is effective approach for cost reduction
  • 28.
  • 29. Cost Reduction Approach VE 40% VA 20% Others 10% IE 10% Purchase10% QC 10% Data from Semi-conduct Company
  • 30. Benefit Expand Market and Jobs Elimination of Human Toil Adequate Defense for Lower Cost Opportunity Effect of Design Time Shortage Lack of Measurement in Value Work Human Factors
  • 31. How do we start to learn VAVE?
  • 32. Training & Learning
  • 35. What can we do now? Package Shipment Material Deploy VAVE to Supplier Idea Generate Others
  • 37.
  • 38. Lesson Review What is VAVE VAVE History VAVE formula and definition What is value and function What is different between VA and VE VAVE system methodology Why do we need VAVE VAVE Expands Markets VAVE Reduce Cost Others How do we start to learn VAVE? How to learn and get trained VAVE? Practices and relative people Cooper Way Opportunity field Thank You

Editor's Notes

  1. 1)介绍Max Value2)一种评估方式(VAVE的内容)Unnecessary cost occupied of 25%~75% =>Bench Mark by cost model简化版3)Important Value4)介绍Healthy Business;国内的企业的现状This best value is determined by two considerations: performance and cost.价值曲线Over year, recently healthy business
  2. 1)Function定义2)如何定义这些功能是有一套系统化的方法的,Identify, Clarify, and Name FunctionsIs that exactly what it does for the customer?Is that exactly what the customer wants it to do?Is that exactly what the customer believes he's paying for?Quantify Functions When PracticableUnify the Function and Its SpecificationsAnalyze Aesthetic FunctionsClassify Functions As Either Basic or Secondary