Transcript for EO403 - VA Steps.PDF

Graduate Apprenticeship - Engineering Design and Manufacture Class: EO403 - Design for X VA Steps In this video, we will be looking at the steps involved in conducting value analysis and value engineering. Value analysis and value engineering is a six-step process. It starts by stripping down the product into its individual components. You then have to identify the functions of each of those components. You then need to determine a value of each function. So as a highly-valued function, as a medium-valued function, or a low-valued function. You then determine the cost of each individual component. And then step 5 focuses on looking at how you reduce cost without reducing value. Or adding value without adding cost. The last step is then evaluating all the different alternatives and options that you've come up with and selecting what improvements you want to implement to improve the product from a value analysis and value engineering perspective. So let's look at each step individually. So the first step is about stripping down a product. So you can use exported drawings or itemised component lists. Or if the products available to you, you can physically take it apart and break it down into its individual components. The aim is to have a list of all the different components that make up that overall product design. Once you have that list, you then move onto the second step which is about identifying the function of each component and understanding what does each component actually do. So if you put something into a system, what's the action that has to occur to give you the desired output? Let's look at a couple of examples. So if you think about the hole punch, and a lever on the hole punch, what is the function of the lever? Well it's to transmit the force to punch the hole. If you think about a pump in a washing machine, what's the function of the pump? Well, it might be to move the water to the machine. If you think about ink and a pen, what is the function of the ink? It's to provide writing medium. At this stage, you want to identify what is the function associated with each individual component that you've identified in the overall product design. The third step is then about determining the value of the identified functions. And you do this through market research. So this actually involves going out to the market, speaking to customers, and really trying to understand what do they actually value as being the high-value functions of your overall product. So as an example with a hole punch, is it just the ability to punch a hole, or is there something else that they need the product to do? What are the high-valued functions? It's important to remember the value is perceived by the customer. The fourth step is then about determining the cost of the individual components. And at this stage, we're looking for the entire cost associated with producing that component. Not just the manufacturing cost or the purchase price of an individual component, we want to look at all the processing, handling, and assembly costs associated. So Page 1/3 this stage really does require some good communication within your organisation to gather the information that you need. Once you've gathered all that information, you should then end up with a table that looks something like this. Where you've got your list of components, you've got your list of functions, you've got the value as perceived by the customer associated with each of those functions, and you've got the cost associated with each overall component. At this stage, we're looking at ways to reduce the cost without reducing the value. Or add value but without adding cost. We need to be both critical and creative. So critically, we'll look out what the design is. Creatively, we'll look at what the design could be. What it might be. There are guidelines available to help us with our thought process. The cost reduction guidelines, which are typically good for value analysis. And value attribute guidelines, which are typically good for the value engineering aspects of this exercise. So let's take a look at the cost reduction guidelines. So these are about reducing cost without reducing value. So we start with eliminate. So can any function and its components be eliminated? Are there any redundant components? Reduce. Can the number of components be reduced? Can components be combined? Simplify. Is there a simpler alternative? Is there as easier assembly sequence? Is there a simpler shape that we could use. Modify, can cheaper materials be used. Can the manufacturing method be improved or changed? Standardise. Can standard parts be used? Can dimensions be standardised? These are guidelines that can help us with our thought process. So as an example, if we think about a pen, writing pen. So if we're thinking in terms of cost reduction, if we look at the table of how the customer has perceived the different value of each function, we've got two low-valued functions here. We've got the clip which attaches the pen to the shirt. And we've also got the rubber grip, which provides cushion when writing. So the customers said that these are low-valued functions. These are things that the customer doesn't really value very highly. So we might think to ourself, can we eliminate the rubber grip or the clip? You might also think reduce. Can the clip be combined with the push button? Simplify. Can we simplify the design of the pen clip? Modify. Can cheaper materials be used for the rubber grip or the pen clip? And standardise. Well, if we've got a product range, is there maybe a way we could standardise the clip across all the pens we manufacture? We use these guidelines to identify ways that we can reduce cost without reducing value to the customer. Now let's take a look at the value attribute guidelines, which are about increasing value but without increasing cost. So we have utility. So thinking about things in terms of performance on aspects such as capacity, power, speed, accuracy or versatility. We've also got user friendliness. So thinking about ease of use. Transport is it an intuitive design. We've got reliability. So is it free from breakdown or malfunction in particular environments? Safety. Is it secure? Is it hazard-free when the operator operates the product? Maintenance. Is it simple, infrequent, maintenance-free even? And lifetime. Is there a way we can maybe extend the product lifetime? So again, let's take another look at an example. So still looking at the pen. Well, what we are now looking at is the high-value functions. So what has the customer said are the high-value functions? So in this case, we've got the pen main body, which is providing grip to use the pen. Obviously, the customer said that was a high-value function. We've also maybe got the ink tube, which provides the writing medium. Again, and that's a high-value function. So in this case, we're looking at what the customers told us are the high-value functions in the overall product design. And then we're thinking about utility, user friendliness, reliability, safety, Page 2/3 maintenance, and lifetime, and thinking, is there a way we can optimise the design to deliver more value but without adding any extra cost. So as an example, from a utility perspective, we might think, well, can we optimise the ink tube to provide better efficiency of the ink's delivery but without increasing cost? Then we maybe look at user friendliness and we think, well, can we improve the overall design? So the pen main body shape, could we design it in a way that makes it comfier to hold? Again, without increasing cost. The sixth step is then about evaluating all the alternatives and options that we've come up with and selecting the most viable improvements. Value analysis or value engineering should result in a number of alternative suggestions in the design. Some might be conflicting, therefore, thorough analysis of all the changes should be undertaken. Only suggestions which are genuine improvements should also be implemented. Page 3/3

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