Value Analysis & Value Engineering
Implementing Cost Reduction through Applied Value Analysis and Value Engineering Optimising function & reducing cost.
Design to Cost
This is an all encompassing process to ensure that you are able to deliver product to the customer at the agreed initial price without losing any of the Profit. It involves using the 8 tools of Total Cost Management at the concept stage so that everybody involved is fully aware of Total Costs, including material, labour and overheads. It optimises product functionality and ensures that manufacturing costs are minimal.
VALUE is the reliable performance that a product or process must do to make it work and sell – at the least possible cost.
FUNCTION is sometimes referred to as Performance, it is all those things which the product, or process must do to make it work and sell.
COST is the expenditure of a resource,which may include time, money, people, energy and material.
Participants will gain an understanding of, and apply, the tools and techniques of Value Engineering / Value Analysis (VE/VA) to products.The programme will enable participants to understand a structured approach to optimising the function and cost of products in a customer focused way, resulting in a comprehensive understanding of how to apply VE/VA tools and techniques, maximise value to the customer, optimise design of products and develop effective solutions to real problems.
Strategic Summary – why companies need to apply Value Engineering / Value Analysis, involving the whole organisation, suppliers and customers – the origins, principles, tools and techniques of VE/VA – customer awareness, who are the customers, what are their requirements and how do they measure whether those requirements are delivered?
Application of VE/VA
Know how to apply VE/VA within your organisation – identification of customer requirements – function analysis, function identification and the contribution of each function to customer requirements and its related costs – creativity, techniques used to generate alternative methods of fulfilling functional and customer requirements at reduced cost – evaluation and development using techniques that enable the selection and realisation of the key opportunities identified to maximise function, minimise cost and satisfy the customer.
This programme will be highly interactive, as delegates will be allocated to teams and will work through a detailed and structured case study, using a physical product to enable them to experience first hand the application of the VE/VA methodology – each team will make a presentation of their design proposals demonstrating added value to the customer, functional analysis, creativity, cost reduction and their team approach for evaluation and product development.
Who should attend?
Purchasing Managers, Buyers, Supplier Development Staff, Senior Managers from Manufacturing, Engineering and Design disciplines, and additionally Engineers, Team Leaders & Supervisors or anyone who is tasked to implement Cost Reduction and Design to Cost.
What is ? – Value Engineering (VE) is used in the design and development stage of a product, prior to capital expenditure and tooling. Payback is high, as up to 70% of avoidable product life cycle costs are built in at the design stage.
Value Analysis (VA)
This focuses on ‘find and fix’ solutions on existing products and processes, and the reduction of unnecessary cost. Other benefits can include improvements in functionality, quality, reliability, lead-time and productivity. Value Analysis can be focused on existing products and components or, alternatively, focused on processes either internally within your operations and/or within that of your supply base.
Benefits to your Company
● Increased Customer Value
● Elimination of Waste
● Improved Product Designs
● Reduction in Total Costs
● Increased Product Functionality
● Improved Manufacturing Processes
● Effective Solutions to Real Problems
● Improved Team-working & Communications in your Workforce
● Improved Relationship with Suppliers
● Key Tool for Supplier Development
● Self Funding savings generated more than cover the up-front investment
This programme is directly linked to B-IT Module No BIR/217