techniques

for

identifying

and

removing

unnecessary

costs

without compromising on the functionality, quality and reliability of the design. A Value Study is the formal application of a value methodology to a product/project in order to improve its value. This application is also referred to as value engineering, Value analysis, value planning, or value management. VE is defined (by DoD/USA) as a systematic effort directed at analyzing the functional requirements of systems, equipment, facilities, procedures, and supplies for the purpose of achieving the essential functions at the lowest total cost, consistent with the needed performance, safety, reliability, quality, and maintainability. The technique is usually applied to a spectrum of problems much broader than just change of a design or materials selection or change of a process etc. 2. History of Value Analysis: Value Analysis was conceived in the early 1940s by Lawrence D. Miles while he was employed by General Electric, a major defense contractor which was facing the scarcity of strategic materials needed to produce their products during World War II. Mr. Miles realized that if value and related innovation improvements could be systematically managed, then General Electric would have a competitive advantage in the marketplace. With that in mind, Mr. Miles accepted the challenge and devised the function analysis concept, which he integrated into an innovative

different material or concept could achieve the function. To focus on the function itself, he used an active verb and a measurable noun in combination to characterize the benefit that a parts function provides. He then searched for other ways or methods to achieve the benefit of that intended function. From this research, function analysis, the key foundation of value methodologies, was developed and has become a tool to help individuals and teams manage the way a concept is understood. These specialized teams typically address product/project-related issues such as increased sales revenue, improved product performance, and reduced resource usage. The U.S. Army and Navy, and other companies, soon realized the success of Larry Miles methods. As the application of value analysis expanded, there was also a change in contextfrom review of existing parts to improving conceptual designs. This was one of two factors that marked the emergence of value engineering. The other was a desire by the U.S. Navy to use the Value Analysis techniques for project improvement in the early 1950s when there was a moratorium on hiring analysts. Since engineering positions were available, individuals practicing this new discipline were employed as Value Engineers. As the value methodology gained in popularity, a group of practitioners formed a learning society to share insights and advance their innovative capabilities. Thus, in 1959, the Society of American Value Engineers was incorporated in Washington, DC. Soon, the value methodology was used to improve the value of projects in government, the private sector, and the manufacturing the construction industries and value concepts spread worldwide. Concurrent with this growth, a number of other value improving tools,

2. Components of Value Analysis: Value Analysis asks the following questions: 1. How can a given function of a Design System be performed at minimum cost? 2. What is the value of contribution that each feature of the design makes to specific function that the part must fulfill? The value analysis approach seeks the development of answers to the following questions also: 1. Can we do without the part? 2. Does the part do more than what is required? 3. Does the part cost more than what it is worth? 4. Is there something that does the job better? 5. Is there less costly way to make the part? 6. Can a standard item be used in place of the part? 7. Can an outside supplier provide the part at less cost without affecting dependability? The value analysis job plan consists of those tasks or functions necessary to perform the study (Fig 1 below). The sequence of tasks has many elements of Problem Solving and Decision Making. A structured plan shown below assures that considerations are given to all important aspects, provides for a logical separation of the study into convenient units, and provides a convenient basis for maintaining a written record of progress in the value analysis study.

Figure 1 Components of Value Analysis Job Plan

and its noun object. The verb answers the question "what does it do?" The noun answers the question "what does it do to it?" Example: Transmit torque, Conduct Current, The functions should be identified so as not to limit the ways in which it could be performed. The functions of a Design or a system should be divided into basic functions and secondary functions. A basic function defines a performance feature that must be attained. It answers the question what must it do? A secondary function defines performance features of a system or item other than those that must be accomplished. It answers the question what else does it do? Example: Basic function of paint is to protect the surface from the environment and the secondary function is to improve the appearance of the surface. The ability to identify functions and distinguish between basic and secondary functions is important in value analysis. Value is placed only on basic functions and it is there we have to direct our attention. Once the functions have been established, the next step is to establish money (Rupees) value of worth of each function. The worth of the basic function is determined by comparing the present design for attaining the function with other methods of attaining the essentially the same function. Considerable skill, knowledge, and judgment are needed to determine the worth of a function in terms of money. One of the ways to determine the worth of a function is to ask yourself what would be reasonable amount to pay for the attainment of the basic function if you were to pay

An important feature of value analysis is to identify high cost elements of the design and focus attention on them. In this regard we should be aware of the Pareto's law which states that about 80% of the total effect of any group will come only from 20% of the components of the group.

Figure 2 Paretos Law on Distribution The steps in the value analysis job plan are much like those in problem solving. Once the basic information has been gathered, the next step is speculation. The objective of this Phase II is to generate, by creative techniques, many alternative means for accomplishing the basic functions identified in Phase I. Brainstorming, morphological analysis etc.., are commonly employed. Phase III involves a selection of further analysis and refinement of the most promising alternatives generated in Phase II. Each idea is evaluated chiefly in terms of 1) what does it cost? and 2) will it attain the basic functions. Phase IV is the development of complete plan for implementation. Finally the best solution is selected for implementation and several alternatives are

Fig: 3 Hydraulic valves The design under study: Hydraulic Valve Housing Structure. Basic Functions: 1) To provide enclosure for hydraulic fluid, and 2) To provide wear resistant surface for piston like valve system. Detail of Housing Structure: Housing was made of nodular cast iron and was heat-treated to fully pearlitic matrix to provide the wear resistance to the valve system. Objective of Value Analysis: To reduce cost of manufacture of the housing. Value Analysis: Phase-1 (Information) i. Analysis of the cost of each step of manufacture showed that machining was the most costly step. ii. Machining time (and hence cost) may be reduced if the housing is heat treated to fully ferritic matrix prior to machining instead of pearlitic matrix. iii. As this ferritic matrix is softer, the wear resistance (Basic Function) will not be adequate. Hence one of the basic function may not be attained. Value Analysis: Phase-11 (Speculation) i. As both basic functions are coupled in the original Design, Heat Treatment of nodular iron of the Housing is compulsorily required by the need of high hardness to provide the necessary wear resistance to the Housing. ii. Other suggestion for providing the wear resistance to the housing was use of a tool steel sleeve in the soft housing and chrome plating of the

Value Analysis: Phase-1 V (Development) i. Extensive tests were made on the wear characteristics of the valves. These studies showed that only during the first 500cycles of operation of the piston (which is machined to close tolerances) the wear resistance is significant. ii. This suggested that a low friction surface coating that would eventually wear away might be a suitable alternative. iii. The tests also pointed out that surface finish of the cylinder bore was a critical operation parameter that could not be achieved in the dead-soft ferritic matrix. iv. The final solution was to heat - treat the valve housing to a mixed microstructure namely ferrite and spheroidized pearlite. This is a compromise metallurgical condition between hard wear resistant condition and the soft condition that would improve the Machinability. v. Wear during the running-in period was accommodated by a phosphate coating on the cylinder bore that provided lubrication during the critical period. 4 Summary: The above discussion has shown that there are no magic formulas for value analysis. Rather, the solution of a problem is every bit as challenging as any other aspect of Design process and follows the same general approach of problem solving. Note: Successful Value Analysis depends on the answers to the following questions. A. Function The following list of issues should be considered during this stage:

by looking at the individual elements. Once the parts level of the product has been established (through this strip down activity), then each part can be classified by the team. It is often helpful to use the following analysis: Classify parts as A if they are essential to the functionality of the product and give value to the customer Classify the parts as B if they provide esteem value but no real functional use value Classify parts as C if they are non-essential items that add no direct value 3. Question whether the functions are essential, could be eliminated altogether, could be substituted for a lower cost solution, can all or any of the functions be incorporated in another component. B. Material Specification and Content 1. What material is used? 2. Why is this material used? 3. Can the materials be substituted with another, material? 4. Can the dimensions be reduced? 5. Oversize by calculation C. Material & Manufacturing 1. How much of the basic material is wasted in conversion? 2. What are the causes of the waste? 3. Can the waste be reduced? 4. Can alternative methods? 5. Can the materials be provided in a different format? 6. Can parts be made for many products? D. Standardization 1. Is the component made from the standard raw material?

change, or a change in method of manufacture or improved machinery? 4. Can assembly operations be reduced? F. Tolerances & Finishes 1. What tolerances have been specified and why were they specified as control items? 2. What are the critical limits? 3. Are all specified tolerances relaxed to ease manufacture, to allow an alternative method of manufacture or permit a lower purchase costs? 4. What finish specifications were detailed? 5. What finish specifications? G. Costs of material 1. What parts are bought-out? Examples: