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What is the difference between Value Management and Value Engineering?
Wiki User
∙ 11y ago
Value analysis is "A Systematic and objective evaluation of the value of a goods or service, focusing on analysis of function relative to the cost of manufacturing or providing the items or service". value analysis provides insight into the inherent worth of final goods or service, possibly altering specifications and quality requirements that could reduce costs without impairing functional suitability. Value engineering is "Value analysis conducted at the design engineering stage of the product development process." In summary value analysis refers to the analysis of an existing product, service or administrative process while Value engineering refers to the same analysis applied to the product ,services or administrative processes that are under design and have not been finalised.
Wiki User
∙ 14y ago
Wiki User
∙ 11y agoThere is slight difference in its application. Value Analysis can be applied to any kind of cost, but Value Engineering can be applied to direct cost only. Value Engineering is used in design & development stage, but Value Analysis is applied to products that are already in the market.
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Why value engineering is important in computer engineering?
Value engineering is important because companies want to differentiate their products from their competitors. Value engineering adds features for the customers.
What is difference between Earned Value and VOWD?
Earned value is the physical percent complete x the approved budget. Value of work done is the percent complete x the estimate at completion. VOWD is used as an accrual mechanism which is dependent on the forecast - thus the figure will be adjusted upon receiving an invoice/actual being realised, earned value is a physical percent complete represented in terms of the budget applied universally and is absolute.
Define value Engineering and its objectives Discuss the various approaches for value engineering and analysis?
Define value Engineering and its objectives Discuss the various approaches for value engineering and analysis?Value Engineering is a systematic method to improve the "Value" of goods and services by using an examination of function. Value, as defined, is the ratio of Function to Cost. Value can therefore be increased by either improving the Function or reducing the cost. It is a primary tenet of Value Engineering that basic functions be preserved and not be reduced as a consequence of pursuing Value improvements.Value Engineering is a body of knowledge as a technique in which the value of a system's outputs is optimized by crafting a mix of performance (Function) and costs. In most cases this practice identifies and removes unnecessary expenditures, thereby increasing the value for the manufacturer and/or their customers.Value Engineering uses rational logic (a unique "how" - "why" questioning technique) and the analysis of Function to identify relationships that increase Value. It is considered a quantitative method similar to the Scientific Method, which focuses on Hypothesis - Conclusion to test relationships, and Operations Research, which uses model building to identify predictive relationships.VALUE ANALYSIS -- The Job PlanValue Engineering is often done by systematically following a multi-stage Job Plan. IT IS a 8-step procedure , called the Value Analysis Job Plan. Others have varied the Job Plan to fit their constraints. One modern version has the following eight steps:PREPARATIONINFORMATIONANALYSISCREATIONEVALUATIONDEVELOPMENTPRESENTATIONFOLLOW-UPFour basic steps in the VALUE ANALYSIS Job Plan are:Information gathering - This asks what the requirements are for the object. Function analysis, an important technique in value engineering, is usually done in this initial stage. It tries to determine what functions or performance characteristics are important. It asks questions like; What does the object do? What must it do? What should it do? What could it do? What must it not do?Alternative generation (Creation) - In this stage value engineers ask; What are the various alternative ways of meeting requirements? What else will perform the desired function?Evaluation - In this stage all the alternatives are assessed by evaluating how well they meet the required functions and how great will the cost savings be.Presentation - In the final stage, the best alternative will be chosen and presented to the client for final decision.How it worksVE follows a structured thought process to evaluate options.Gather information1. What is being done now?Who is doing it?What could it do?What must not to do?Measure2. How will the alternatives be measured?What are the alternate ways of meeting requirements?What else can perform the desired function?Analyze3. What must be done?What does it Cost?Generate4. What else will do the job?Evaluate5. Which Ideas are the best?6. Develop and Expand Ideas What are the impacts? What is the cost? What is the performance?7. Present Ideas Sell AlternativesVALUE ENGINEERINGValue engineering is an approach to productivity improvement that attempts to increase the value obtained by a customer of a product by offering the same level of functionality at a lower cost.Value engineering is sometimes used to apply to this process of cost reduction prior to manufacture, while "value analysis" applies the process to products currently being manufactured.Both attempt to eliminate costs that do not contribute to the value and performance of the product (or service, but the approach is more common in manufacturing).Value engineering, thus, critically examines the contribution made to product value by each feature of a design. It then looks to deliver the same contribution at lower cost.Different types of value are recognised by the approach :Use value relates to the attributes of a product which enable it to perform its function.Cost value is the total cost of producing the product.Esteem value is the additional premium price which a product can attract because of its intrinsic attractiveness to purchasers.Exchange value is the sum of the attributes which enable the product to be exchanged or sold.Although the relative magnitude of these different types of value will vary between products, and perhaps over the life of a product, VE attempts to identify the contribution of each feature to each type of value through systematic analysis and structured creativity enhancing techniques.Value engineering programs are best delivered by multi-skilled teams consisting of designers, purchasing specialists, operations personnel, and financial analysts.Pareto analysis is often used to prioritise those parts of the total design that are most worthy of attention. These are then subject to rigorous scrutiny. The team analyses the function and cost of those elements and tries to find any similar components that could do the same job at lower cost.Common results are a reduction in the number of components, the use of cheaper materials, or a simplification of the process================================================VALUE ENGINEERING CAN BE APPLIED TO ANY MANUFACTURING,HERE IS AN EXAMPLE OF TRACTOR MANUFACTURINGFIRM IN THE FOLLOWING AREAS1.TRACTOR DESIGN-make the design simple- easy to use-reduce COMPLICATED / expensive parts.---------------------------------------------------------2.TRACTORS RAW MATERIAL / PARTS PROCUREMENT-establish the demand planning system [ reduce the fluctuations in production]-establish the inventories of raw materials [ reduce the cost of stock holding]-establish the economic order quantity [ """"""""""""""""""""""""""""""]------------------------------------------------------------------------------3. TRACTORS PRODUCTION PLANNING-establish an effective / efficient production planning system [ cost savings]------------------------------------------------------------------------------4.TRACTORS PRODUCTION-establish a lean production [ cost effective]----------------------------------------------------------------------5. TRACTORS TOTAL QUALITY ASSURANCE.-set up quality assurance system to reduce quality problems/ rejections][ cost savings ]-------------------------------------------------------------6.TRACTORS FINISHED GOOD INVENTORY-match the finished stock inventory to market demand / sales requirements][ cost saving in stock holding ]--------------------------------------------------------------------7.TRACTORS CUSTOMER SERVICE-provide effective customer order processing/order service/timely despatch to customers.[ adds value to customers / reduces distribution cost]----------------------------------------------------------------------------8.TRACTORS AFTER SALES SERVICE-offer warranty/ after sales service to customers[ adds value to the product and increases sales ]============================================TRACTORS MANUFACTURER CAN ADD VALUE/ REDUCE COSTBY APPLYING THE VALUE ANALYSIS -JOB PLAN TO EACHOF THE ABOVE LISTED 8 STAGES OF TRACTORS MANUFACTURING.
What is a bus fault?
When a fault occurs in the electric bus (electric lines and intersections) due to short circuit between the phases or between 1 or more phase and ground, the current value mounts up to a very high value, which is known as bus fault current. This high value of current may cause damages to the transformers and could also rupture the other electric lines connected to the bus.
Example of value engineering in tractors?
Engineering in tractors can easily be seen with all modern tractors basically being seen with 4wd and a cab with air conditioning. The best way to track engineering is through the John Deere Combine. In the sixties it was all manualy adjusted then seventies some adjustments were moved to the cab. Eighties more adjustments were moved into the cab but you still had to moniter the dirt in the grain and how much grain was being lost. The nineties brought sensors tracking the amount of grain lost and it can be adjusted in the cab. The newest models have sensors and adjustments all connected to a computer and the computer tracks grain loss and makes adjustments without operator imput.
Different between value analysis and value engineering?
There is no difference between value analysis and value engineering. Both are names applied to the same formal analytical process developed at General Electric in 1947 by Larry Miles. It was originally called value analysis, and has come to be called by several names as time has passed (value analysis, value engineering, value management, the value methodology). The term "Value Engineering" is also often mis-used to refer to any exercise to reduce cost. Don Stafford, VP-Education, SAVE International
What is security premium in management accounting?
Security premium in management accounting is the difference between the nominal value and the selling price of shares.
What the difference between actual value and earned value?
The difference between the Actual Value & Earned Value is the Project Cost Variance
What is the difference between the place value and face value of 9 in 309812?
the DIFFERENCE between the place value and the face value is 991
How does information get value?
The value of perfect information is a management accounting theory which highlights the difference between the expected value based on probability of occurrence and the maximum possible value a seller or manufacturer can make if he or she has an idea of actual demand for his or her products.
What is the difference between ethical value and value?
search
Out of civil engineering and mechanical engineering which have more value?
civil engineering has more value civil engineering has more value
The difference between what the workers produce and what they earn is surplus value?
Surplus value is the difference between the value that workers produce and what they are paid in wages.
What has the author Michael Dallas written?
Michael Dallas has written: 'Value and risk management' -- subject(s): Risk management, Construction industry, Project management, Value analysis (Cost control), OverDrive, Engineering, Nonfiction, Technology 'Men: Move to paradise'
What difference value between K and Ct?
the same as the difference between ct and k
What is the difference between 0.3 and 0.30?
There is no difference because they are of equal value
The difference between an observed or calculated value and a true value?
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