Value analysis report

VALUE ANALYSIS/VALUE

ENGINEERING

Presented By:

Kim Trongkoso

Dave Retis

Mac Baraquiel Jr.

Clarice Baylon

Eloisa Hernandez

Eleina Liquido

Alyssa Lacson

Francis Aninipot

DEFINITION

• Reducing Costs without reducing value• Costs = what the item IS (made out of)• Value = what the item DOES (verb-noun

relationship or two word descriptions)

COSTS

• Need to ensure that these are the total costs involved, i.e.

• e.g. C = P + M + F + Op + D

P=Purchase; M=Maintenance; F=Fuel; Op=Operator; D=Disposal

What is Value Analysis?

Systematic effort to improve performance of product and services

Examines the materials, process and the flow of materials involved

What is Value Analysis?

Develop by Lawrence D. Miles in 1947 to pursue two complimentary objectives, which are: TO MAXIMIZE UTILITY PROVIDED BY

THE PRODUCT OR SERVICE AND; TO MINIMIZE OR ELIMINATE WASTE

For Example

The Evolution of the NOKIA CELLPHONE

Importance of Value Analysis Reduce Materials Use and Cost Reduce Distribution Cost Reduce Waste Improve Profit Margin Increase Costumer Satisfaction Increase Employee Morale

HOW TO USE V.A.

1. Gather information

2. Measure

3. Analyze

4. Generate

5. Evaluate

WHEN TO USE V.A.?

Value Analysis should be a part of a continuous improvement effort.

VALUE ANALYSIS vsVALUE ENGINEERING

• Value Analysis (VA)

When the technique is used after

the item has been produced

• Value Engineering (VE)

When the technique is used before

the item is produced

CONCLUSION

• VA is in line with the Strategic Plan, Quality improvement and personal development

• VA is a simple technique that everyone can and should apply

• VA has been used advantageously by others, producing extensive and pervasive savings

• VA contributes to our overall well being

Conclusion

• VA (and VE) can be used in higher education system with positive results

• Savings will accrue from implementing VA

• People are significantly more aware of unnecessary costs and wastages and will therefore mend their ways.

THANK YOU FOR LISTENING

GOD BLESS US!