Value Analysis of Connector

Assembly of Voltage
Regulator
MEL 324
Prof. A. D. Gupta

SHASHI KUMAR|2010ME20800

The Project
The subject of this
project was a
subassembly, called a
Connector as an
essential part of the
overall product called
the Voltage Regulator
Voltage Regulator is
used in power-line
systems to provide

 11 Standard and
Special Parts
5 Assemblies per
Voltage Regulator
175 Voltage Regulators
per year
900 Assemblies per
year

Preliminary Investigation
Maximum input from the cover
bushings is 30A.
2 connections from the connector:
Connection to the terminal on
the bottom end of the cover
bushing wire between the two
3/8 inches brass units.
Crimping the core and coil lead
to the lower end of the
connector assembly using a
special brass nut
Pressure of 7psi above
atmospheric pressure is
generated on the core and coil

Additional Preliminary
Investigation
The product was designed 5 years ago in a semiemergency situation.
No costs had been established and no operational
tests were conducted due to lack of time.
Factor of Safety established by the designer solely
on the basis of his past experience and guess work.

Information Phase
Seek complete information and data collection

Secure the Facts

Various sources of information to be located
Use of Information Worksheet
Before approaching sources, exact
information/specific questions to be asked, are
to be identified

Application & Marketing

Background
Customer and company specifications and
requirements
Filed service reports
Anticipated Market Life
Anticipated market requirements
Application and marketing recommendations for
investigation, change or improvement.

Parts
FIND NO.

PART NAME

QUANTITY

STUD, BRASS

NUT, BRASS

TUBE, SPECIAL

WASHER, RECESSED

GASKET

NUT, HEX, BRASS-3/8

NUT, HEX, BRONZE-1/2

LOCK WASHER-3/8

LOCK WASHER-1/2

Engineering Background
Technical History of the Product
Requirement of this part in the
equipment
Quantity requirements for this and other
equipment
New Developments and changes being
considered
Engineering recommendations for
investigation, change or improvement

Manufacturing and
Procurement Background
Consulted Industrial Engineering personnel in
the Manufacturing Department on how special
parts were manufactured and shop supervisor
to secure additional facts and opinions.
Process specifications, sequence if operations,
quantitates
Material Utilization
Scrap
Present Suppliers

Determine the Costs

Cost supplied by the Accounting Department shows
material cost, labor cost and burden
Only be interested in Direct material and direct labor
costs.
Product cost for each component and assembly
Cost of Assembly parts: material, direct labor and
burden
Direct labor cost: $3 per hour
Burden: 300% of direct labor
Only interested in Direct labor and material costs
Because of direct effect on a hardware project

Fix Costs on
Specifications and
Requirements
4 Specifications and Requirements are identified
and cost is assigned to them as fraction of cost
components from which they are accomplished.
30 A Current = $ 1.689
Connection & Disconnection = $ 0.148 + $
1.689 = 1.837
Seal Opening = $ 1.440
Resist Vibration = $ 0.004 + $ 0.007 = $ 0.011
Total= $3.728

Parameters and
Specifications
Bushing lead wire input 30A
Bushing & Coil lead wires are 4.25 apart
Connection to lead wires must be readily
disconnectable
Complete unit subjected to shipping and
operational vibration
Pressure generated in operation is 7psi
Hole in insulating panel is 0.5 in
diameter

FUNCTION PHASE
Heart of Value Engineering Job Plan

Define the Function

Filling up of Functional Development
Worksheet
Function defined using a verb and a
noun
Kept a list of verbs and nouns of work
and sell function

3/8" Brass Nuts

Establish Connection: Connection of lead wire to the
connector.
Control Location: Location of the wire.
Apply Pressure: For controlling location.
Conduct Current: At least one of the nuts in contact
with the lead wire.
Resist Pressure
Primary Function: Establish Connection as the two
brass nuts are included in the assembly for
establishing connection.

3/8" Lock Washer

Transmit Pressure: Transmits the pressure applied
by one brass nut to the other.
Induce friction: The friction force between washer
and nut prevented the rotation of nuts and
thereby preventing from loosening it.
Establish Location
Resist Movement

Primary function: Induce friction.

1/2" Bronze Nut

Apply Pressure: It applies pressure to the gaskets and
help in sealing the opening in the insulating panel.
Control Location: By applying pressure to the parts
below it , controls the location of the whole assembly.

Primary function: Apply pressure

Recessed Washer
Create Location: It created location for gaskets due
to the lip designed around its outside diameter.
Transmit Pressure: It transmitted pressure exerted
by the bronze nut through the lock washer to the
gaskets.

Primary function: Transmit Pressure

Gaskets
Create Seal: Helps in sealing the opening in insulating
panel.
Control Location: Controls the location of whole assembly
Transmit Pressure: Transmits pressure exerted by the
bronze nut ultimately to the insulating panel
Provide Connection: Only the gaskets and the stud came
in contact with insulating panel thereby providing
connection.

Primary function: Create seal

Brass Stud
Provide Connection
Create Location
Conduct Current: From the two nuts at the top to
the tube and nut from the bottom.
Resist Movement: Movement parallel to the plane
of insulating panel.
Transmit Pressure: From the bronze nut to the
gaskets through stud.
Primary function: Conduct Current

Brass Nut
Create Location: For the special tube
Conduct Current
Establish Connection: Between tube and the stud.
Apply Pressure: On the tube

Primary function: Establish connection

Tube
Establish Connection: Between the core and coil
lead.
Create Location: While establishing the above
connection.
Transmit Pressure: Applied by the brass nut.
Conduct Current

Primary function: Establish connection

Determine Functional
Levels
Determination of basic and secondary functions
For each component, one of the defined
function was classified as primary function and
the rest of them as secondary functions
Reduced the number of functions to be
considered for the basic function of the
assembly
If a function is not basic to a part then it cannot
be basic, or even directly secondary to the
assembly

FUNCTIONAL DEFINITION WORKSHEET

Quantit
y

Components/
Operations

3/8" Brass Nuts

Functions
Verb

Noun

Establish
Control
Apply

Connection
Location
Pressure

Conduct

Current

Resist
Transmit
Induce
Establish
Resist
Apply
Control
Transmit
Induce
Establish
Resist
Create
Transmit
Create
Control
Transmit
Provide
Provide
Create
Conduct
Resist
Transmit
Create
Conduct
Establish
Apply
Establish
Create
Transmit

Pressure
Pressure
Friction
Location
Movement
Pressure
Location
Pressure
Friction
Location
Movement
Location
Pressure
Seal
Location
Pressure
Connection
Connection
Location
Current
Movement
Pressure
Location
Current
Connection
Pressure
Connection
Location
Pressure

3/8" Lock Washer

1/2" Bronze Nut

1/2" Lock Washer

Recessed Washer

Gaskets

Brass Stud

Brass Nut

Tube Special

Functional Part
P
S

Assembly
Level
P
S

 Total number of functions: 34

Total number of primary functions at component
level: 9
Out of 9,three are redundant. We are left with 6
unique Primary Functions for numerical
Functions
evaluation.
Key Letter
Verb
Noun
A

Establish

Connection

Induce

Friction

Apply

Pressure

Transmit

Pressure

Create

Seal

Conduct

Current

Evaluate Functional
Relationships
Relative importance of the functions, their
importance to the assembly and their relative
importance to each other were determined
Technique of numerical evaluation of functional
relationships
Each function is compared to only one other
function at a time and its importance as well as
the magnitude of difference of importance is
determined

Numerical Evaluation
A

A3

A3

A3

E2

F3

B1

B1

E3

F3

C1

E3

F3

E3

F3

F3
F

Evaluation Summary
Key Letter

Functions

Weight

Verb

Noun

Establish

Connection

Induce

Friction

Apply

Pressure

Transmit

Pressure

Create

Seal

11

Conduct

Current

15

Functional Importance
Graph
16
F; 15

Secondary
Functions

14
12
10

Primary Fn.

E; 11
A; 9

WEIGHT FACTOR

Major
Drops

6
4
2

B; 2
C; 1

0
F

DESIGN FUNCTIONS

D; 0
D

Checks for Accuracy

First check that the Major Drops are
Achieved
Compare the same with the knowledge of
what customer wants
Least important Function must have zero
value
No two function should have same
percentage weights
There should not be any loop formation

Creation Phase
develop as many possible ideas for a function

Introduction
Develop as many possible ideas for a
function using our imagination and
creativity to achieve goal
Functions considered for creation phase:
1. Conduct Current
2. Create Seal
3. Establish Connection

Establish Positive Thinking

Preparation phase
Need for creativity among team members
Removed everything relating to the
assembly which could prejudice their minds
Left a list of 3 two word functions;
conduct current
create seal
establish connection

Develop Creative Ideas

Two directional approach
Unassisted Creativity: This was simply a test of
their untrained creative ability.
Each individual would take a single function and list
as many ideas for that function as he could on the
creative worksheet and then passed to the next
man.
In this way they generated for each function a list of
between 15 and 22 different ideas.

Develop Creative Ideas

Assisted Creativity: They used a dictionary and
creativity checklists.
The team member with the worksheets read all the
ideas listed for a function and the other two members
with dictionary and creativity checklists. In this way
they built an original idea or added a new idea.
When they had finished, they had developed, for
each function, a list of from 40 to 100 ideas.

Function Conduct
Current
1. Wire

10. Paper Clip

2. Bolt

11. Nail

3. Welding Rod

12. Laser

4. Water

13. Magnetic Field

5. Air

14. Rod

6. Iron

15. Screw

7. Steel
8. Brass
9. Copper

Function Create Seal

1. Paint

10. Wax

2. Rubber

11. Pitch

3. Ring

12. Chrome

4. Plug

13. weld

5. Dried Blood

14. Rivet

6. Varnish

15. Fit

7. Glue
8. Plastic
9. Epoxy

16. Washer

Function Establish
Connection
1. String

10.Pressure

2. Rope

11. Screw

3. Adhesive

12. Nail

4. Stud

13. Rivet

5. Bolt

14. Tape

6. Terminal

15. Tie

7. Weld
8. Clip
9. Glue

Evaluation Phase
Developing low cost feasible ideas to potential
workable solutions

Establish the Requirement

Ideas discussed for feasibility, performance and cost.
Activate judicial thinking which was eliminated in the
Creativity phase and be creative towards any new
problem.
Collected information of the Information Phase,
worksheets of the Function Phase and Creation Phase.
Did not bring connector or its drawing as this influence
their thinking.
Sketched all the physical parameters and specifications
All techniques applied more or less at the same time.

Parameters and
Specifications
A. Bushing lead wire input 30A
B. Bushing & Coil lead wires are 4.25
apart
C. Connection to lead wires must be
readily disconnectable
D. Complete unit subjected to shipping
and operational vibration
E. Pressure generated in operation is 7psi
F. Hole in insulating panel is 0.5 in
diameter

Develop Function
Alternatives
They started working on Functional
Development Worksheet.

Conduct Current
They selected conduct current as it was the
basic function of the assembly and had highest
weight factor of 15.
From the creative worksheet they selected lowest
cost idea paper clip.(1/10 cents)
Function

Creative Idea(s) &

Development

Estimated Cost
(Cumulative)

1. Conduct
Current

Paper Clip

$ .001

Now in reviewing the parameters and specifications listed below

the sketch they found that specification B Bushing and coil lead
wires 4 inches apart was not being met by the paper clip.
They again review the creative worksheet to see if this paper clip
idea could be combined with another idea or if it could be further
developed.
As a remedy they found that when the paper clip was straightened
it would form a piece of wire and be 4 inches long .(9/10 cents)

Function

Creative Idea(s) &

Development

Estimated
Cost
(Cumulative
)

1. Conduct
Current
4/4 between
leads

Paper Clip
Paper Clip-bend straight-4
long

$ .001
$ .01

Now team again reviewed the complete problem

parameters and specifications they recognized
that now 4 inch long wire of paper clip
diameter would not meet specification A: Bushing
lead wire input 30 amperes
One team member using creative yet judicial
thinking suggested to increase the wire diameter
to 8 gauge in case of copper wire.(1 cent)
Function

Creative Idea(s) &

Development

Estimated
Cost
(Cumulativ
e)

1. Conduct
Current

Paper Clip

$ .001

4/4 between
leads

Paper Clip-bend straight-4.5

long

$ .01

30 amps of

Change above to 8 gauge wire

$ .02

Create Seal
Selected next function, i.e., create seal having a weight
factor of 11.
From the creative worksheet, idea 2, rubber; idea 4 plug;
and idea 35, cork could be combined to accomplish this
function in conjunction with the previous idea.
Decided to use rubber plug in the shape of a standard
bottle stopper cork with a hole in it of such that an 8-gauge
wire would pass Creative
through it
as a press
fit. (5 cent)Estimated
Function
Idea(s)
&
Development

Cost
(Cumulative
)

1. Conduct
Current

Paper Clip

$ .001

4/4 between
leads

Paper Clip-bend straight-4

long

$ .01

Checking the problem parameters and specifications sheet, they

saw that point E pressure generated in operation 7 P.S.I.
Realized that at no additional cost they could reverse the stopper
and have the pressure working in their favor.
Function

Creative Idea(s) &

Development

Estimated
Cost
(Cumulative)

1. Conduct
Current

Paper Clip

$ .001

4/4 between
leads

Paper Clip-bend straight-4.5

long

$ .01

30 amps of
current

Change above to 8 gauge wire

$ .02

2. Create Seal

Rubber stopper with hole to

accept wire as force fit

$ .07

7 P.S.I.

Reverse stopper so pressure

forces into hole

$ .07

 Specification D, the shipping vibration would

shake the rubber stopper out of the inch
hole.
Decided to scrap their rubber stopper idea.
They went back to creative worksheet and
spotted idea 2, ring.
After some discussion they come to another
idea of-molded rubber grommets that have a
flange at both top and bottom.(5 cent)

Function

Creative Idea(s) &

Development

Estimated
Cost
(Cumulati
ve)

1. Conduct
Current

Paper Clip

$ .001

4/4 between
leads

Paper Clip-bend straight-4.5 long

$ .01

30 amps of
current

Change above to 8 gauge wire

$ .02

2. Create Seal

Rubber stopper with hole to

accept wire as force fit

$ .07

7 P.S.I.

Reverse stopper so pressure

forces into hole

$ .07

Shipping
Vibration

Change stopper to double flanged $ .12

grommet

Functional Development
Worksheet
Function

Creative Idea(s) &

Development

Estimated
Cost
(Cumulativ
e)

1. Conduct
Current

Paper Clip

$ .001

4/4 b/w leads

Paper Clip-bend straight-4.5 long

$ .01

30 amps of
current

Change above to 8 gauge wire

$ .02

2. Create Seal

Rubber stopper with hole to

accept wire as force fit

$ .07

7 P.S.I.

Reverse stopper so pressure

forces into hole

$ .07

Shipping
Vibration

Change stopper to double flanged

grommet

$ .12

Establish Connection
Idea 7,weld; 22, solder; 23, bronze; or 45, twist were
not feasible as connection to lead wire must be
readily disconnectable.
Idea 8, clip. Chose an Alligator clip, one that is spring
actuated so that it will be disconnectable and not
subject to loosening due to vibration. (8 cent)
3. Establish
connection

Use clip on each end 8 gauge

wire (alligator type)

$ .20

Disconnectable

No change required

$ .20

Shipping Vibration

No change required

$ .20

Functional Development
Worksheet
Function

Creative Idea(s) &

Development

Estimated
Cost
(Cumulativ
e)

1. Conduct
Current

Paper Clip

$ .001

4/4 between
leads

Paper Clip-bend straight-4.5 long

$ .01

30 amps of
current

Change above to 8 gauge wire

$ .02

2. Create Seal

Rubber stopper with hole to

accept wire as force fit

$ .07

7 P.S.I.

Reverse stopper so pressure

forces into hole

$ .07

Shipping
Vibration

Change stopper to double

flanged grommet

$ .12

inch hole

Grommet fits hole- no change

$ .12

3. Establish
connection

Use clip on each end 8 gauge

wire (alligator type)

$ .20

Disconnectable

No change required

$ .20

Shipping Vibration

No change required

$ .20

4. Induce Friction

No modification required

$ .20

5. Apply Pressure

No modification required

$ .20

6. Transmit
Pressure

No modification required

$ .20

Total

$ .20

Investigation Phase
Make and Develop ideas which are workable and
sellable.

Introduction
The technique of Investigation phase involves
completing the product from semi-finished to
finished state.
Ways of overcoming the disadvantages and of
strengthening the advantages to make the
product work as well as sell

Consult vendors and

specialists
Approached a marketing specialist from the company to
whom they introduced the idea and discussed advantages
& disadvantages one after the other.
Realized the idea was workable but not sellable.
Analyzed each disadvantage to find out solutions for the
same.
Used Idea Evaluation Worksheet to state their idea

 Members and specialist discussed only the

advantages of the idea first, each individual
speaking for his own specialty i.e. marketing,
engineering, purchasing, manufacturing.
The marketing specialist spelled out the
disadvantages on specific problem areas.
All the advantages and disadvantages were
noted on the worksheet.

 Decided to overcome disadvantages

Took their functional development
worksheet and in the estimated cost
column drew a line and headed this
column "sell.
This showed the difference between the
work cost and the sell cost as they
redevelop the idea.

Idea Evaluation Worksheet

Idea

Advantages

Disadvantages

Conduct Current

A.
B.

1. Seal may release

under pressure

C.
D.
E.
F.

2. Alligator clips will

have to be fastened
to wire at assemblymight be problem in
mfg.

G.
H.
I.

3. Wire could slip

through grommet,
which would require
panel disassembly

J.

4. Due to shipping
and operational
vibrations, 8 gauge
wire and connectors
may be too small.

Final development of
alternatives
Considered each disadvantage one by one
Disadvantages 3 and 4 were critical to the idea i.e.
CONDUCT CURRENT
Shipping and operational vibration could work
harden the wire and make it snap thus making
voltage regulator unstable.
Idea developed- Increase the size of conductor from
8 gauge wire to -inch diameter rod hence
increasing cost of the accomplishment of the
function from 2 cent to 10 cents.

 Prevent slip of wire through grommet

Idea developed- Use of circular spring clip
This idea costs 2 cents.
These two ideas gave a increase of cost of 10
cents and a new estimated cost of 14 cents.

 Seal may release under pressure

Idea developed- put another circular spring clip
on the rod below the insulating panel.
Assumed that the inch rod cost same as 8
gauge wire.
Team member from the Purchase department
suggested circular spring clips.

 Realized that when they converted the

conductor from 8 gauge wire to inch rod they
eliminated the use of alligator clips for
connection purpose.
With positive attitude the team proceeded and
went back to creative idea sheet and found a
solution for this problem i.e. studs fastened with
the help of nuts.
Idea developed- top lead should be connected
to connector by use of stud nut assembly which
costs them 3 cents more and lock washers at 1
cents resulting total cost of change is 24 cents.

Final estimated cost of idea is 40 cents which was

double than that of original idea.
Is the idea is sellable and workable?

Use company and industry

standards
Contacted manufacturing and purchasing
specialist
Seek knowledge about company standards to
achieve further cost reduction
Manufacturing Specialist suggested a inch
diameter stud instead of inch diameter stud as
it is available in standard stock and it costs less
as this size is used in standard transformers.
Team assembled the parts and the model worked

 The final complied cost :

Bronze rod inch 4 inch long= $ 0.20
Nut jam brass inch @.05
lock washer steel @.02
gasket nitrile @0.132
Total

=$.30
=$0.04
=$0.262
=$0.862

The total cost was double of their developed

ideas cost. Still, the actual cost was far less
than what that they started in the beginning.
Team closely noticed that the function create
seal costs $0.362 which was more than any
other function cost.
Then the team started working on this specific
function to reduce cost.

 A team member dug out a print of total

assembly and pointed out that there was no
seal at all between the insulating panel and the
tank wall.
They also realized that 7 psi pressure was equal
throughout the inside of the tank, there being
equal pressure at both the ends of the grommet.
The Create seal function and 7 psi
parameter were Self Imposed functions.
This solution itself decreased the cost of
function by $0.262. Thus giving a new total
equal to 54 cents.
Pacing leads 4 inch apart is also self
imposed specification.
At last team removed two nuts.

 Brass rod inch dia, 4 inch long=$0.20

Nut jam brass inch@0.05

=$0.20

Lock washer steel @0.02

=$0.04

Total

=$0.44

$3.728

$0.44

88%

Recommendation
Phase
Finishing the Value Engineering Job plan

Introduction
Results of all the previous efforts depends on the
successful completion of this phase
The team worked to get the idea approved by the
project manager
The major objective is to motivate positive action in
favor of acceptance and implementation of the
proposal
Techniques:

1. Present Facts
2. Present Costs
3.Motivate Positive Action

 The VE team reviewed the project data and

listed the changes, both minor and major to be
recommended
They rescreened the data in search of possible
ideas for change
A number of significant points were noted

From the Information Phase

1.No spares are required under normal operating conditions.
2.Simplify construction and reduce weight.
3.Parts must be interchangable
4.Problems coming with the stud and copper tube.
5.Increase lot size to reduce no. of setups.
6.Reduce stud size to eliminate gasket assembly problem
7.Whether Plated lock washers and -inch bronze nut are necessary
or not

From project work

No seal is required at the insulating panel, modify designeliminate gaskets, recess stud and washer

Point 4:Problems coming with the stud and copper

tube: Purchase flat-headed hollow rivet or eyelet
Flat head 3/8 in diameter
3/4 long
$0.25 per piece
Indenting: $0.20 per piece

JOY MANUFACTURING COMPANY COST IMPROVEMENT RECOMMENDATION

Date___________________
Ref. No.________________________
Product __ voltage regulator #3116
Assy. Or Part____Tubespecial___________
Part No-___9090547-3_______________
Qty. Product-_5__
Qty./year ___850_____
_________________________________________________________________________
Potential 1st year savings $ 257.00
Sales Forecast- 175 Product (Next 12
months)
_________________________________________________________________________

PRESENT

RECOMMENDED

Calculatio Material
n of saving

Direct
Labour

Fringe
Benefit

Total

Present

$ 0.228

$ 0.525

------

$ 0.753

Proposed

$ 0.250

$ 0.200

------

$ 0.450

Difference
-----------------$ 0.303
per piece or
Assy.
Implementation costMFG. $_____________ ENG. $
20.00 ___
_________________________________________________________________________
Findings & Recommendations:
The present copper tube has a high scrap rate in manufacture due to
splitting during formation of head.
This problem would be eliminated by replacing it to a
purchased hollow rivet while realizing a saving.It would require a
change in the drawing and bill of material plus addition of a part to the
inventory.
It would take two hours of engg to modify the drawing
and bill of By________________
material
Approved
Rejected ________________
Date________________
Engineering change order no.-_______________For Further

 Point 5: Increase lot size to 75 pcs. Per

month
Reduce setups from 34 to 12

JOY MANUFACTURING COMPANY COST IMPROVEMENT RECOMMENDATION

Date___________________
Ref. No._______________________
Product
voltage regulator #3116
Assy. Or Part_____see
below__________
Part Nosee below
Qty./Product ___5_____ Qty./Year
850_______________
__________________________________________________________________________________
Potential 1st year savings- $ 488.40
Sales Forecast- 175 Product (Next 12
months)
__________________________________________________________________________________

Present-

RecommendedParts:
Brass stud
Manufacture
Manufacture
Brass nut
In
In
Special tube
Lots of 75
Recessed
Lots of 25
washer
Gasket
------------------------------------------------12 setups required
34 setups required
per
per year
year

Calculation Material
of saving

Direct
Labour

Present

-----

$ 754.80

Proposed

-----

$ 266.40

Fringe
Benefit
-----------

Total
-----------

Difference
----$ 488.40
----------per piece or
assy.
Implementation CostMfg. $ 10.00
Engg. ---------________________________________________________________________________
Findings $ Reecommndations
Based on a usage of approximately 75 per month , it is recommended
that this be the release quantity to manufacturing for the above
saving. If the previous recommendation is accepted , this saving will
be reduced by $ 64.80.
To make this change one hour of
mfg. engg. Time would be required to change the routers and
production order records.

 Point 6: Reduce stud size to eliminate gasket

assembly problem
No direct cost reduction, but improves
manufacturing
Reduce diameter by 1/64

JOY MANUFACTURING COMPANY COST IMPROVEMENT RECOMMENDATION

Date___________________
Ref.
No._______________________
Product
voltage regulator #3116
Assy. Or Part
Brass
stud
.
Part No9090547-1
Qty./Product
5
Qty./Year
850_______________
__________________________________________________________________________________
Potential 1st year savings- $ 0
Sales Forecast- 175 Product
(Next 12 months)
__________________________________________________________________________________

Present

Recommended

Calculation Material
of saving

Direct
Labour

Present

-----

------

Proposed

-----

------

Fringe
Benefit
-----------

Total
-----------

Difference
-------------------per piece or
assy.
Implementation CostMfg. $ 10.00
Engg.
$ 10.00
-----------------------------------------------------------------------------------------------Findings $ Recommendations
It is recommended that the basic diameter of this part of the stud be
reduced from
inch to 31/64 inch. This would eliminate the assembly problem.
This change would require one hour of engg.
Time to change the drawing and one hour of manufacturing engg. Time
to change the routers.
Direct saving would not be realized here.

JOY MANUFACTURING COMPANY COST IMPROVEMENT RECOMMENDATION

Date___________________
Product
voltage regulator #3116
Part No- 9090547-1,4,5

Ref. No._______________________
Assy. Or Part___stud,washer,gaskets__
Qty./Product ________

Qty./Year

850_______________

_____________________________________________________________________________________________
Potential 1st year savings- $ 782.80
Sales Forecast- 175 Product (Next 12 months)
_____________________________________________________________________________________________

Present

Recommended

Calculatio Material
n of saving

Direct
Labour

Fringe
Benefit

Total

Present

$ 0.997

$ 1.194

------

$ 2.191

Proposed

$ 0.670

$ 0.600

------

$ 1.270

Difference
$ 0.327
$ 0.594
-----$ 0.921
per piece or
Assy.
Implementation CostMfg. $ 20.00
Engg.
$ 50.00
----------------------------------------------------------------------------------------------------Findings $ Recommndations
It has been found that the seal between the stud and the insulating
panel is not necessary , it is recommended that the configuration be
modified as shown.That is, the gaskets eliminated,the recess
removedfrom the stud and the recessed washer is replaced by a
standard flat washer.
Two hours of mfg. engg. Time would be required to
change the routing and tools.Engineering would require five hours to
change the drawing and bill of material.
Approved By-------------------- Rejected---------------------------

Minor Modifications
Reference No

Parts

Potential
Savings

Tube, special

$ 257.00

Increase lot size

$ 488.40

Brass stud

$ 0

Stud, washer, gaskets

$ 782.80

Total

$ 1528.20

JOY MANUFACTURING COMPANY COST IMPROVEMENT RECOMMENDATION

Date___________________
Product voltage regulator #3116

Ref.No._______________________
Assy. Or Part___connector___________

Part No- 90905-47

Qty./Product __5______
Qty./Year
850_______________
___________________________________________________________________________________________
Potential 1st year savings- $ 2794.80
Sales Forecast- 175 Product (Next 12 months)
_____________________________________________________________________________________________

Present

Recommended

Calculation of
saving

Material Direct Labour

Fringe Total
Benefit

Present

$ 1.665

$ 2.073

------

$ 3.728

Proposed

$ 0.440

--------

------

$ 0.440

Difference per piece

or Assy.

$ 1.215

$ 2.073

------

$ 3.288

Implementation CostMfg. $ 20.00

Engg. $
30.00
---------------------------------------------------------------------------------------------------Findings & Recommndations It is recommended that the assembly as
shown be used to accomplish the basic and required functions at an 82%
lower cost . No gaskets are required.
Secondry Benefits1.Eliminate 5 special items from inventory and their drawing
2.Increase turnover of present inventory items
3.Reduce manufacturing and assembly time
4.Low implementation cost , no additional tooling required
Two hours of manufacturing engg. Time and three hours of engineering
would be required.
Approved By-------------------- Rejected--------------------------- Date--------------------

Per
e T forma
est
ing nc

Plan Execution Duration

Det.
Mod.
Des.&
drw.

.
gg ges de
n
E an
a
Ch ing5m
e
bApproval

Mod
.
Purc Of
h
Rec asing
ords

co
Ac
g

Hold on Manf.

t in
n
u

Routing for
assemb.
1
Phase in to the
product

Scheme fully
implemented

Scheme Fully Implemented in 75 days.

Critical Review

Information Phase
The cost of Seal Opening is found to be $
1.440 instead of the given $ 1.404 in the
available text
In case of both special and standard product, an
Inventory Model like Economic Order
Quantity(EOQ) can be used to determine the
optimal lot size of production and order
respectively.

Function Phase
Lock washer: By inducing friction it is
resisting the movement. So resist
movement should be removed (MULTIPLE
DEFINITION).
Recessed Washer: Lot of other
components are transmitting pressure.
So creating location for the gaskets
should be the primary function of it.
Also, it retains the gaskets ,therefore
resist movement should be added as a
function.

Using Functional Rating

Grid
A

Weight

A
B

1
-

1
1

1
1

0
0

0
0

3
2

E
F

1
1

1
1

1
1

1
1

0
-

4
5

Functions
Sl. No. Key Letter
Verb

Noun

Weight

Adjusted
Weight

Percentage
Weight

Conduct

Current

28.57

Provide

Seal

23.81

Establish

Connection

19.05

Induce

Friction

14.29

Apply

Pressure

9.52

Transmit

Pressure

4.76

Revised Numerical
Evaluation
A

A2

A3

A3

E2

F3

B1

B2

E2

F3

C1

E3

F3

E3

F3

F2

14

10

Function Cost Matrix

Component

3/8"
Brass
nuts

Cost ($)
Function

0.148

A
B
C
D
E
F

0.1

Lock
Rec. Bronze Gaske
Stud
Washers Washer nut
ts

0.011

1.371

0.129 1.102

3.3

0.15
0.129
0.004

0.024

1.371

0.15
0.802

0.8
2.5

Tube

Total

1.558 2.328 9.947

0.007
0.024

Brass
nut

1.328 2.578
0.007
0.153
0.5 2.825
0.802
0.558 0.5 3.582

FCW Matrix and VIP Indices

%
VIP Index
Adj.Weight

Function

Cost($)

% Cost

3.582

36.01

36.36

0.99

0.802

8.06

27.27

0.30

2.578

25.92

22.73

1.14

0.007

0.07

6.82

0.01

0.153

1.54

4.55

0.34

2.825

28.40

2.27

12.50

Remarks

HC

PV, HC

PV,HC

Poor Value & High Cost

Functions
F

Conduct

Current

HC

Establish

Connection

PV,HC

Transmit

Pressure

PV,HC

Creativity Phase
Group Brainstorming sessions where crossfertilization of ideas could be facilitated.
Since Creativity phase is independent of the
previous knowledge of the project, a third party
could be brought in who would give ideas
without any prejudice.

Evaluation Phase
Many ideas in Creativity phase, only few were
assessed.
Function: Conduct Current
In stead straightening the paper clip, a straight
wire could be used as BUY component.
Tackling the problem in reverse direction by
looking over the problem in the parameters and
later finding solutions for the same.

Investigation Phase
A list of standard parts available in the company
should be kept since the beginning of this
phase.
Self-Imposed Functions: The original material of
the total assembly should be deeply studied in
advance. This would approve all the
Specifications and requirements.
All the three specialists- Marketing,
manufacturing and Purchasing should be
consulted at once.

Recommendation Phase
The inventory costs were not considered while
considering the lost size.
Use of Metric threads instead of UNC thread as
they are cheaper.

Questions?