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Achieving Success Through Value Engineering: A Case Study: Prepared by

This document describes a case study on applying value engineering to reduce the cost of a focus adjustment knob part in a medical instrument. It discusses: 1) Analyzing the part's current design, material (aluminum bronze), and manufacturing process which had a high cost. 2) Brainstorming alternatives and evaluating them based on criteria like cost, quality, and maintainability. 3) Determining that replacing the material with nylon could reduce costs the most without compromising quality or function. 4) Calculating that this change would lower the part cost by 38.64% and save the company over Rs. 90,000 annually on their order of 8,000 units.

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Jinisha24
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280 views23 pages

Achieving Success Through Value Engineering: A Case Study: Prepared by

This document describes a case study on applying value engineering to reduce the cost of a focus adjustment knob part in a medical instrument. It discusses: 1) Analyzing the part's current design, material (aluminum bronze), and manufacturing process which had a high cost. 2) Brainstorming alternatives and evaluating them based on criteria like cost, quality, and maintainability. 3) Determining that replacing the material with nylon could reduce costs the most without compromising quality or function. 4) Calculating that this change would lower the part cost by 38.64% and save the company over Rs. 90,000 annually on their order of 8,000 units.

Uploaded by

Jinisha24
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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M.TECH.

CONSTRUCTION ENGINEERING & MANAGEMENT

GUJARAT
TECHNOLOGICAL
UNIVERSITY

BIRLA
VISHVAKARMA
MAHAVIDHYALA
YA

Achieving Success through Value


Engineering: A Case Study

GUIDED BY:

PREPARED BY:
JINISHA P PATEL

PROF A. N. BHAVSAR
ASSIOCIATE PROFESSOR

M.TECH. CONSTRUCTION
ENGINEERING & MANAGEMENT

ENROLMENT NO.:
150080714010
ID NO:15M804

B.V.M ENGINEERING COLLEGE

CIVIL ENGINEERING DEPARTMENT


BVM ENGINEERING COLLEGE

Date: 17/11/2016

V. V. NAGAR

Abstract
In this paper we have discussed the concept of
Value Engineering, its job plan and the effective
implementation of it through a case study.
A case study has been discussed in this paper
involving a part used in the medical instruments.
The material is chosen such that the cost is
reduced without affecting the quality of the
product.
The best feasible solution from the available
alternatives is chosen through the feasibility
ranking table.

What is Value Engineering?


Value engineering methodology is a
powerful tool for resolving system failures
and designing improvements in
performance of any process, product,
service or organization.
Its application results in significant
improvements to quality and reliability by
focusing the teams attention on the
functions that are contributing most to the
problems, and the most likely causes of
these problems.

INTRODUCTION
Value Engineering is an effective problem
solving technique. Value engineering is
essentially a process which uses function
analysis, team- work and creativity to
improve value.
The team develops ways to improve the
root causes of the problems, and ways to fix
the problems that have occurred along with
means to prevent their reoccurrence.

CASE STUDY
In this paper we have considered a medical
instrument manufacturing company,
Aadarsh Instruments, located in Ambala.
This firm is producing different types of
microscopes which they export to various
countries around the globe(It is an ISO
certified company.)
One of their model SL250 have a
component named Focus Adjustment Knob
for Slit Lamp in microscope.

The steps Involved


1.
2.
3.
4.
5.
6.
7.

Product selection plan


Gather information of product
Functional analysis
Creativity Worksheet
Evaluation sheet
Cost analysis
Result

1. Plan For Product


Selection
Product selected is Focus Adjustment Knob
for Slit Lamp in microscope.
It is used to adjust the focus of lens for
magnification purpose.
The present specifications of this part and its
material used are costlier than the average
industry cost.
Value of this product can be increased by
Either maintaining its functions and reducing
its cost or keeping the cost constant and
increasing the functionality of the product.

2. Obtain Product
Information

Product specifications are:

i. Material Aluminum Bronze Alloy


ii. Diameter of base plate 30 mm
iii. Thickness of plate-3 mm
iv. Cost of the scrap is Rs.293/Kg
v. Pieces Produced annually 8000
vi. Process used C.N.C. indexing milling
vii. Cycle time2.5 min
viii. Anodizing2/min
ix. Total Present cost Rs29.99/piece

3. Functional Analysis of
Present Functions
Name

Basic
Funtion
Verb

Basic
Function
Noun

Secondary
Funtion
verb

Secondary
Funtion
noun

Focus
Adjustment
Knob

Index

Lens

Fix

Gear tooth

4. Develop Alternate Design Or


Methods
During brainstorming these ideas were
listed:i. Change design
ii. Change material
iii. Use plastic
iv. Make it lighter
v. Change the production process
vi. Use nylon indexing unit

5. Evaluation Phase
For judging the ideas, the following designs
were considered:
A. Function
B. Cost
C. Maintainability
D. Quality
E. Space

Cont
Each of the above criteria was compared
with others, and depending on their relative
importance.
A score of 3, 2 and 1 respectively was
assigned to each of the levels. The details
are as given in the Table

WEIGHTAGE ANALYSIS Points


Major difference

Medium difference

Minor differences

Paired Comparison Method


A

SCORE

B2

A2

A1

A3

B2

B1

B3

D2

C2

D3

B
C
D
E

From the above paired comparison we get


the following result
SYMBOL

ATTRIBUTE

WEIGHTED
FACTOR

Function

Cost

Maintainability

Quality

Space

CONT
The above ideas were discussed and the best
feasible ideas were separated which were: a. Change the material to steel
b. Use Nylon unit
c. Use existing material

FEASIBILITY RANKING
IDEAS

SCOR
E

RANK

32

III

49

33

II

COST EVALUATION
Item

Material
cost (Rs)

Machining
cost (Rs)

Anodizing
cost (Rs)

Total
cost/Pc
(Rs)

Focus
Adjustment
Knob

19.04

7.30

3.65

29.99

Nylon index
unit

11.60

6.80

18.40

Difference /
part

9.44

12.72

11.59

7. Result
The total savings after the implementation
of value engineering are given below:
Cost before analysis Rs 29.99/ Total Cost of nylon knob Rs 18.40/ Saving per product Rs 11.59/ Percentage saving per product 38.64 %
Annual Demand of the product 8000
Total Annual Saving Rs 92,720/ Value Improvement - 62.98 %

CONCLUSION

In the Case Study discussed above we have used


the concept of Value Engineering to analysis the
focus adjustment knob of microscope , with the
critical evaluation of it we were able to increase the
value of the product by substituting another
material in place of the one that is currently in use.
The various advantages have been observed in
terms of

cost reduction
increase in overall production
reduction in manpower
reduction in scrap

Future Scope

In future we can alter the design of the


product and integrate this technique with
various other prevailing industrial
engineering tools which will bring down the
cost by substantial margin and thereby
increasing the value of the product.

Discussion
Similarly from above case study, One can apply
these feasibility ranking matrix in construction
Industry too with the critical evaluation of it, we
were able to increase the value of the product
by substituting another material in place of the
one that is currently in use.
Using comparison method and feasibility matrix
we can substitute material which increases the
value of project Either by increasing function
ability of material with same cost or Reduce the
cost of material with same function

REFERENCES
Achieving Success through Value
Engineering: A Case Study Amit Sharma,
R.M. Belokar, Member, IAENG.
https://www.mindtools.com/pages/article/n
ewTED_02.html

Thank You

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