Page 163 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Production and Operations Management

Notes Step 2: Give a weight to the importance of each function, such that the total of the weights comes
to ‘1’. Rearrange the functions on the basis of their importance.
Step 3: Identify each of the components in the product or service and list its functions.

Step 4: The functions of the components have to be related to the product and the functions of the
product. Each component will have to be given a weight to show how it contributes to the
function of the product or service. There may be some components that have more than one
function. This should be taken into account.
Step 5: Identify the cost of each component and convert it to a weight corresponding to the total
cost so that the total of the weights does not exceed ‘1’, just as it was done in step 2.
Step 6: Compare the weights of the functions with the weights of the cost of each of the components.
Step 7: Identify those components where the ratio of Function/Cost is low.

The components with a low ratio of Function/Cost are identified for further examination. The
VA/VE analysis approach involves taking these identified components and brainstorming with
such questions as:
 Does the item have any design features that are not necessary?
 Can two or more parts be combined into one?
 How can we cut down the weight?

 Are there nonstandard parts that can be eliminated?

Figure 8.5: Value Engineering Effort on a Sub-assembly

Redesigned

Figure above shows a sub-assembly that was used in Escorts in the railway Equipment division.
The original sub-assembly had four major components that were joined together using fasteners.
After redesign, using value engineering, it was reduced to just two components that were fitted
together using a push and snap mechanism. This exercise reduced the cost of the sub-assembly
by nearly 30 per cent. It reduced stocking of 20 components, which were required for fastening.

VA/VE is a continuous process. Typically, there is a looping back and forth between VA and VE
for a given product. This occurs because new materials, processes, etc., require the application of
VA techniques to products that have previously undergone VE.

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