7/30/2019 ABC and Value Analysis
1/64
A Presentation on ABC andValue Analysis
By:
Neha Kumari (7)
Sr. Smita Parmar
(18)
Sarita Kumari (12)
Samar Vivek Tigga
(54)
Roushan Kumar (53)
Soni Tiru (19)
Faculty AdvisorProf. Mehul Chauhan
Group - 7
PGDM Semester II
Xavier Institute of Management
Jabalpur 5/21/2013 1Xavier Institute Of management
7/30/2019 ABC and Value Analysis
2/64
ABC Analysis
5/21/2013 2Xavier Institute Of management
7/30/2019 ABC and Value Analysis
3/64
Introduction
ABC Analysis is a basic analytical materials management tool.ABC Analysis may be applied to any branch of management
with ease and success. It calls the top management to place its
efforts where the results will be the greatest. The ABC Analysis
goes by its name. it always controls the best, then better and
lastly the good. Its genesis lies in the characteristic distributionof anything which can be measured in monetary terms. Its
importance lies in the determination of priority which enables
the management to exercise control over the subjects according
to the priority fixed for the purpose.
5/21/2013 3Xavier Institute Of management
7/30/2019 ABC and Value Analysis
4/64
Cont.
In materials management as a tool ABC Analysis hasgained considerable importance and can be applied to
almost all the areas in the department needing selective
control.
ABC stands for activity-based costing. In inventory orstock management, it's a method of stock control. It's
basic assumption is that not all stock is equally valuable,
therefore doesn't need the same kind of attention.
5/21/2013 4Xavier Institute Of management
7/30/2019 ABC and Value Analysis
5/64
ABC ANALYSIS
One of the widely used technique for inventory control is
ABC(always better control) analysis.
It is an approach to inventory control that classes inventory by
its usage value.
Example: In Product Cost Controlling(CO-PC), you can use
ABC analysis to obtain an overview of the production orders
in a plant that incur the highest actual costs.
Example: the best customers who yield highest revenue are
given the 'A' rating, are usually serviced by the sales manager,
and receive most attention. 'B' and 'C' customers warrant
progressively less attention and are In accounting, 55/21/2013 Xavier Institute Of management
7/30/2019 ABC and Value Analysis
6/64
Cont..
inventory items based on a user-specifiedvaluation criterion. "ABC" refers to the rankings
you assign your items as a result of this analysis,
where "A" items are ranked higher than "B"
items, and so on.
Generally, a relatively small proportion of the
total range of items contained in an inventory
will account for a large proportion of the totalusage value.
This phenomenon is known as the Pareto law.
5/21/2013 Xavier Institute Of management 6
7/30/2019 ABC and Value Analysis
7/64
A general law found to operate in many situations that indicates
that 20 percent of something causes 80 per cent of something
else, often used in inventory management (20 per cent of
products produce 80 per cent of sales value).
Extending Paretos principle to inventory, it is always possible
and necessary to separate vitalfew from trivialmany of the
stock items for their effective controls.
ABC classification is done as follows:
Class A items are those 20 per cent or so of high-usage value
items which account foraround 80 per cent of the total usage
value.
Class Bitems are those of medium-usage value, usually the next
30 per cent of items which often account for around 10 per cent
of the total usage value.
75/21/2013 Xavier Institute Of management
7/30/2019 ABC and Value Analysis
8/64
8
CATEGORY % OF ITEMS %OF ANNUAL
CONSUMPTION VALUE
A 10-20 70-80
B 20-30 10-25
C 60-70 5-15
Class C items are those low-usage value items which,
although comprising around 50 percent of the total types of
items stocked, probably account for only around 10 per cent of
the total usage value of the operation
5/21/2013 Xavier Institute Of management
7/30/2019 ABC and Value Analysis
9/6495/21/2013 Xavier Institute Of management
7/30/2019 ABC and Value Analysis
10/64
Advantages of ABC Analysis
1. Helps to concentrate all efforts.
2. Produces rewarding results.
3. A category items Careful attention is paid at every
step.
4. C category may be dispensed with in the record-keeping system as well.
5. Most effective method that helpful in many ways
5/21/2013 10Xavier Institute Of management
7/30/2019 ABC and Value Analysis
11/64
List each item carried in an inventory by number.
Calculate the annual volume of usage and per unit cost of each
item.
Multiply each items annual volume of usage with its per unit
cost.
(annual volume of usage ) x (Its Cost per unit)
Compute each items % of total inventory in terms of annual
usage(Rs).
DEVELOPING AN ABC ANALYSIS
5/21/2013 11Xavier Institute Of management
7/30/2019 ABC and Value Analysis
12/64
Cont..
Select the top 20 per cent of all items which havehighest rupee % and classify as class A items.
Select the next 30 per cent of all items which have next
highest % and classify as class B items.
The next 50 per cent of all items with lowest rupee %
are classified into class C items
5/21/2013 12Xavier Institute Of management
7/30/2019 ABC and Value Analysis
13/64
Inventory
costs
5/21/2013 13Xavier Institute Of management
7/30/2019 ABC and Value Analysis
14/64
A items B items C items
High consumption value Moderate value Low consumption value
Very strict control Moderate control Low control
No safety stock Low safety stock High safety stock
Frequent ordering Once in 3 weeks Bulk ordering once in 6
months
Rigorous value analysis Moderate value analysis Minimum value analysis
Accurate forecast in
materials planning
Estimate based on past
data on present plans
Rough estimates for
planning
Weekly control
statements
Monthly control reports Quarterly control reports
Maximum efforts to
reduce lead time
Moderate efforts Minimum clerical efforts
5/21/2013 14Xavier Institute Of management
7/30/2019 ABC and Value Analysis
15/64
LimitationsABC analysis of inventory control suffers with certain
limitations:
Proper standardization and codification is required for
effectively carrying out ABC analysis.
A periodic review and updating the inventory position is a
constant headache of a materials manager who if solely
depends of ABC Analysis for inventory control.
Sometimes C items become more important than even A
items requiring more, rather constant, attention.
5/21/2013 15Xavier Institute Of management
7/30/2019 ABC and Value Analysis
16/64
In such a situation the whole approach may get revised
defeating the very purpose of ABC Analysis which is
primarily based on monetary value of the item under
analysis ignoring other important factors.
The base of ABC Analysis is grading of the items The
gradation of items is obviously done on the basis of V.
(Vital) E. (Essential) and D. (Desirable) but sometimes even
items of negligible monetary value may be vital (V) or
essential.
5/21/2013 16Xavier Institute Of management
7/30/2019 ABC and Value Analysis
17/64
Value Engineering Or Value
Analysis
5/21/2013 17Xavier Institute Of management
7/30/2019 ABC and Value Analysis
18/64
VALUE AND VALUE ANALYSIS
Value is itself is some what difficult to define. It meansdifferent things to different people. Also, it is often
confused with the cost and price of a product or service.
Value is the least cost that can accomplish reliably a
function or a service. This implies that in achieving
reduced cost, the quality and performance of the item are
maintained. It follows, therefore, that value analysis is atechnique which builds Value into an item.
5/21/2013 18Xavier Institute Of management
7/30/2019 ABC and Value Analysis
19/64
Introduction
Value Analysis aims at a systematicidentification and elimination of unnecessary
costs resulting in the increased use of
alternatives, less expensive material, cheaper
designs, less costly methods of manufacturing
etc. to provide the same performance, quality
and efficiency and in a decrease of overall unit
costs and consequently greater profits.
5/21/2013 19Xavier Institute Of management
7/30/2019 ABC and Value Analysis
20/64
Contd..
Value Analysis is a cost reduction technique and perhapsthe most potent of all such techniques.
Value Analysis (VA) is also known as Value Engineering
(VE), Value Assurance and Value Management (VM).
It is an approach for improvement in the performance of
products, systems and reduction of costs without affecting
the function.
5/21/2013 20Xavier Institute Of management
7/30/2019 ABC and Value Analysis
21/64
Contd..
VALUE ANALYSIS is a systematic approach to segregatethe different parts of the VALUE, and eliminate by
gradual process those parts of UNNECESSARY COSTS,
which, neither.
a) increase the function,nor
b) provide esteem or ego satisfaction
nor
c) enable the resaleability
nor
d) provide sentimental attachment or urge to possess.
5/21/2013 21Xavier Institute Of management
7/30/2019 ABC and Value Analysis
22/64
Definition
Value Analysis is the organised and systematic study ofevery element of cost in a part, material or service to
make certain it fulfills its function at the lowest possible
cost; it employs techniques which identify the functions
the user wants from a product or service; it establishes by
comparison the appropriate cost for each function; then it
causes the required knowledge, creativity and initiative to
be used to provide each function for the lowest cost.
5/21/2013 22Xavier Institute Of management
7/30/2019 ABC and Value Analysis
23/64
History..
During the second world war, one of the most serious
problems faced by companies engaged in the war effort wasthe shortage of materials. This led to experimenting with
substitutes, quite often in very unorthodox ways. In many
cases. The experiments clicked and surprisingly there were a
large number of instances where the substitutes were much
cheaper and functioned more efficiently than the original
material.
After the war, Harry Erlicher, the vice president of
purchasing, general electric co. (U.S.A.) felt that this
problem of finding out substitute could be done in a more
scientific way and as a deliberate approach, rather than by an
ad-hoc crisis approach.
5/21/2013 23Xavier Institute Of management
7/30/2019 ABC and Value Analysis
24/64
Cont.
He entrusted this job to a team of engineers headed by
Lawrence mile
In fact it was miles who coined the term value analysis and
its synonym, value engineering. This team under his
stewardship pioneered this technique and perfected it and,it is said, saved their company 200 million over a period of
17 years. In America, the technique is very widely used and
is given a great deal of importance.
5/21/2013 24Xavier Institute Of management
7/30/2019 ABC and Value Analysis
25/64
Cont..
L.D. Miles, the father of this concept, wrote in 1961, abook, Techniques of Value Analysis and Engineering. Navy
Bureau of ships was the first organisation to use VA in 1954.
Society for American Value Engineers (SAVE) was
established in1959.
In India, now we have Indian Value Engineering Society
(INVEST) to create awareness of this approach and to
propagate this concept.
5/21/2013 25Xavier Institute Of management
7/30/2019 ABC and Value Analysis
26/64
APPLICATION OF VALUE
ANALYSIS
Value analysis can be applied universally, i.e., to everything
materials, methods, processes, services, etc., where it is
intended to bring about economics.
One should naturally start with items where the maximum
annual saving can be achieved. This immediately suggests that
items whose total annual consumption in Rupees is high should
receive top priorities in the application of Value Analysis. In the
same manner, scarce materials, imported materials, or thosedifficult to obtain should also receive the attention of the value
analyst.
5/21/2013 26Xavier Institute Of management
7/30/2019 ABC and Value Analysis
27/64
Bearing this in mind, Value Analysis can be systematically
applied to categories of items, such as those listed below in
order to bring about substantial cost reduction :
1. Capital goods plant, equipment, machinery, tools and
appliances;
2. Raw and semi-processed material, including fuel;
3. Sub-contracted parts, components, sub-assemblies, etc;
4. Purchased parts, components, sub-assemblies, etc.,
5. Maintenance, repairs, and operational items;
5/21/2013 27Xavier Institute Of management
7/30/2019 ABC and Value Analysis
28/64
6. Finishing items such as paints, oils, varnishes, etc.
7. Packing materials and packaging;
8. Printing and Stationery items;
9. Miscellaneous items of regular consumptions;
10. Power, water supply, compressed air, steam and otherutilities(services) and
11. Materials handling and transportation costs.
As mentioned earlier, items where the saving can be substantialshould obviously be taken up first. Also, items which are imported, ordifficult to obtain, and monopoly items, should receive high priority.
5/21/2013 28Xavier Institute Of management
7/30/2019 ABC and Value Analysis
29/64
However, even if no economy can be effected immediately by
Value Analysis on any particular item, then usefulness of the
technique should not be forgotten altogether. The item should
be taken up again for value analysis after six months or a year.
5/21/2013 29Xavier Institute Of management
7/30/2019 ABC and Value Analysis
30/64
VAVE is a generic name given to
this technique of VALUE
ANALYSIS and VALUEENGINEERING.
5/21/2013 30Xavier Institute Of management
7/30/2019 ABC and Value Analysis
31/64
The seven classes of value
propounded by Artistotle are1. Economic Value.
2. Political Value.
3. Social Value.
4. Aesthetic Value.
5. Ethical Value.
6. Religious Value.
7. Judicial Value.
5/21/2013 31Xavier Institute Of management
7/30/2019 ABC and Value Analysis
32/64
The following table shows acomparative analysis and
applicability of these different
classes
5/21/2013 32Xavier Institute Of management
V l Cl T f A ti E l ti d C VAVE b
7/30/2019 ABC and Value Analysis
33/64
Value Class Type of Actions
Examples
Explanation and
Analysis
Can VAVE be
Applied
Economic A product or
service bought ata given price
Within a given
framework andconditions
alternative
products or
services
can be found so
as to
serve the
required
function at a
much lesser cost
YES
5/21/2013 33Xavier Institute Of management
Value Class Type of Actions Explanation and Can VAVE be
7/30/2019 ABC and Value Analysis
34/64
a ue C ass ype o ct o s
Examples
p a at o a d
Analysis
Ca be
applied
Political People are
normallywedded to a
particular
philosophy
thereby have a
certain political
following and wayof thinking
People have been
to be changingtheir alliances and
philosophies so
as
to join others in
some cases even
with a diagonallyopposite view
point, just to gain
power.
Subjectivity is
involved to alarge extent
and exact
VALUE
cannot be
ascertained.
5/21/2013 34Xavier Institute Of management
7/30/2019 ABC and Value Analysis
35/64
Value Class Type of Actions
Examples
Explanation and
Analysis
Can VAVE be
applied
Social Spending a
certain
amount to attend
own brothers
marriage (which
is a
major social
function)
If one is close by,
he might take
leave from work
and join the
occasion with
family. If the
distance is far
(butwithin the
country) he
decides to join
the
occasion along
because of travelcost and other
expenses
High
subjectivity is
involved and
the VALUE of
not joining the
function
cannot be
evaluated.
5/21/2013 35Xavier Institute Of management
7/30/2019 ABC and Value Analysis
36/64
Value Class Type of Actions
Examples
Explanation and
Analysis
Can VAVE be
Applied
AESTHETIC Hobbies of
individuals are
involved. A
Picasso
painting is
purchased
at astronomical
Price one,
whereas a
diamond studded
gold ring is
bought by the
other
For the other
person the
painting may not
be worth that
amount and he
feels that the
decision was
foolish.
Value cannot
be judged as
the functional
requirement
cannot be
qualified in
general. The
individual has
spent his
money and
that is his lookout
5/21/2013 36Xavier Institute Of management
7/30/2019 ABC and Value Analysis
37/64
Value Class Type of Action
examples
Explanation and
Analysis
Can VAVE be
Applied
Ethical Secret
information
not to be
revealed
An employee of
one organization
should not work
simultaneouslyfor competitor,
etc.
It has been
observed
that there is a
class of
patriots who can
lay their life for
the nation ,but at
the same timethere are others
who pass on
secret security
information to
other countries ,
etc,
Highly
subjective
criteria hence
VALUE of
ethics cannot
be judged.
5/21/2013 37Xavier Institute Of management
7/30/2019 ABC and Value Analysis
38/64
Value Class Type of Actions
Examples
Explanation
and
Analysis
Can VAVE be
Applied
Religious Communalism
and values
prevailing, A
person following
a particular
religion forces
other to convert
to his own
religion but he
does not want to
change his ownreligious
For gains some
people change
over to a
particular religion
(both for cash &
kind in return). It
is easy to convert
some but a bit
difficult to convert
some other.
Purely based
On individuals
own look and
his own value
system.
5/21/2013 38Xavier Institute Of management
7/30/2019 ABC and Value Analysis
39/64
Value Class Type of Actions
examples
Explanation and
Analysis
Can VAVE be
Applied
Judicial Judges lay a
certain penalty forgiven crime like
Rs. 50,000/- or
three months R.I.
For the same
type of cases thepenalty amount
and the
equivalent R.I.
period changes.
The same person
committing thesame crime a
second
time will have a
more severe
punishment.
For case to se
the details aredifferent and
hence no fixed
amount
5/21/2013 39Xavier Institute Of management
7/30/2019 ABC and Value Analysis
40/64
From the above table, it can be clearly seen that Value
Analysis effort can be very effectively made when it
concerns the Economic Value. In other cases it should beleft to the individuals, who are the best judges in their
own cases. The only scope in these cases is that when it
concerns an organization's need, a better approach would
be that a team of experts decide about the VALUE ofthese decisions, wherever possible, so that the
subjectivity can be reduced, if not completely
eliminated.
5/21/2013 40Xavier Institute Of management
7/30/2019 ABC and Value Analysis
41/64
Why Use Value Analysis
In reality, a complex number of reasons exists thatnecessitate the structured approach of value analysis as a
means of logical cost reduction.
These reasons can be divided into two key sources:
1. those that lie within the business and
2. those that are stimulated by the market for the product
or service.
5/21/2013 Xavier Institute Of management 41
7/30/2019 ABC and Value Analysis
42/64
Within the business: Design
related issues The major reasons why VA exercises are conducted actually
originate from the design process itself and the lack of
control systems concerning reviews of product performance
once the product has entered the production stage.
The VA process is also a means of learning from past
mistakes and constantly refining the ability to create right
first time designs in less time for the business which is a
source of competitive advantage.
5/21/2013 Xavier Institute Of management 42
7/30/2019 ABC and Value Analysis
43/64
Market induced Reasons
There are many modern competitive trends and pressuresthat make the VA approach a valuable activity within
any business. These pressures include:
I. Pricing PracticeII. The Advent of E-Commerce
III. Reducing Complexity
IV. New Technology and Materials
V. Environmentalism
5/21/2013 Xavier Institute Of management 43
T f V l
7/30/2019 ABC and Value Analysis
44/64
Types of Value1. Use Value: Properties which accomplish a use, a work or a
service.
2. Esteem Value: Properties which make the ownership of the
object very desirable.
3. Cost Value: Properties which are the sum of the labour,
materials, overheads and other costs required to produce that
object.
4. Exchange Value: Properties that make the object possible of
being trades for other items.
5/21/2013 44Xavier Institute Of management
7/30/2019 ABC and Value Analysis
45/64
Types of function
It is the use value of a product- its functional utility.
Functions can be of two types:
a) Basic functions
b) Secondary functions
5/21/2013 45Xavier Institute Of management
7/30/2019 ABC and Value Analysis
46/64
Value Engineering Job Plan
Value analysis (VA) process is also called VA job plan. Mudge proposes the job plan in the following seven steps:
1) General Phase
2) Information Phase
3) Function Phase
4) Creation Phase
5) Evaluation Phase
6) Investigation Phase
7) Recommendation Phase
5/21/2013 46Xavier Institute Of management
7/30/2019 ABC and Value Analysis
47/64
General Phase It is the most demanding phase of VA Job plan. Some typical
beliefs, habits and attitudes are given below:-
- it will set a nasty precedent
- it wont work
- cost too much
- The Public wont touch it
- It is impracticable
- The Production Dept. will have none of this
- Why change it-it works- There is no other source of supply
- That is not our responsibility
- Its company policy
5/21/2013 47Xavier Institute Of management
7/30/2019 ABC and Value Analysis
48/64
Information Phase
Here project is studied in detail and all important facts aregathered and considered.
In this phase, facts which are in the form of technical
specification or environmental specification are considered.
Also, the engineering drawings, production sample,production data are all kept in mind.
The cost data and work specifications are secured.
Consumer preference are jotted down.
Development and testing are studied.
Quantities and scraps are taken into account.
5/21/2013 48Xavier Institute Of management
7/30/2019 ABC and Value Analysis
49/64
Function Phase Here the product is defined in terms of its function, in terms of
its performance expectation.
These functions are co-related with costs and their worth.
Product Function
Tea Cup Hold Tea (liquid)
Light Bulb Emit Light
Gas Lighter Provide Ignition
Mirror Reflect Light
Brake Arrest motion
5/21/2013 49Xavier Institute Of management
7/30/2019 ABC and Value Analysis
50/64
Evaluation Phase
Creative ideas generated during the above phase arescreened for their feasibility, cost effectiveness and
practicability at this stage.
For this purpose, ideas are further refined or combinedtogether.
Cost of all ideas and savings resulting from their
implementations are studied.
5/21/2013 50Xavier Institute Of management
7/30/2019 ABC and Value Analysis
51/64
Investigation Phase
It is a virtual extension of the previous phase.
Ideas accepted are here converted into acceptable and
workable solutions to perform the desired functions at the
least cost.
It may be necessary to standardize, to consult vendors and
specialists ,and to use specialty products, processes and
procedures.
5/21/2013 51Xavier Institute Of management
7/30/2019 ABC and Value Analysis
52/64
Recommendation Phase It is the ultimate phase of VA.
Finally selected alternative here in presented for
implementation on acceptance.
Acceptance is the key to success of VA.
Sometimes acceptance is the result of presentation or
5/21/2013 52Xavier Institute Of management
Functional Requirement
7/30/2019 ABC and Value Analysis
53/64
Functional RequirementEstablishment The nerve center of Value Engineering approach is the
understanding of the FUNCTION of an item, Product or
Service.
Functional Analysis-
-An item is purchased only because it performs some
specific function. A customer need, to be fulfilled by
performance of functions is initially established. This may
come from the customers awareness or a need or the
development of a need in the customer by industry.
5/21/2013 Xavier Institute Of management 53
Cont
7/30/2019 ABC and Value Analysis
54/64
Cont Thus, in every case, a product or operation will include
Primary (Basic Function) and Secondary Functions. As
related to Value Engineering, functions are described withonly two words, a VERB form and a Noun form e.g. Provide
Light, Cut Paper, Provide Energy etc.
5/21/2013 Xavier Institute Of management 54
7/30/2019 ABC and Value Analysis
55/64
Organisatonal Aspect Of Value Analysis
Value analysis requires support from the top management,and it needs team work. The value analysis function can be
organized as per the needs of the organisation, its size,
operation ,product line etc. It can be administered by staff
at the corporate office or it may be run on decentralized
basis or a balanced combination of both.
5/21/2013 55Xavier Institute Of management
7/30/2019 ABC and Value Analysis
56/64
Cont..
This is effective when manufacturing units are set up onproduct basis and are autonomous cost and profit centers.
Value analysis also has some restr ictions too..
Its endorsement at top level leads to acceptance at lower
level.
It is also affected by the management level to which it
reports.
5/21/2013 56Xavier Institute Of management
Benefit From The Value
7/30/2019 ABC and Value Analysis
57/64
Benefit From The ValueAnalysis
There are several direct and indirect benefits which canaccrue from the introduction and practices of valueanalysis:
A reduction in cost of existing product or systems.
Prevention of unnecessary cost in new products or system.
The introduction of value analysis leads to overall costconsciousness and a general attitude change towards cost
Products value get improved and quest for new materialand processes get encouraged
5/21/2013 57Xavier Institute Of management
7/30/2019 ABC and Value Analysis
58/64
Cont.
System relating to cost and estimating usually benefitfrom reorganisation necessitated by the wider use of cost
information.
A greater profit can accrue by a greater return ofinvestment.
It is very important tool in contrasts and it is good to
have a value engineering Clause to encourage acontractor to reduce the cost.
5/21/2013 Xavier Institute Of management 58
7/30/2019 ABC and Value Analysis
59/64
CONCLUSION
Value analysis is a technique with immense possibilities,and systematically employed, it can achieve great
economies and increased efficiency. Although good
results have been obtained in several individual cases in
some industries, only a large scale and systematic
application of this technique in all industries, and in
defence production, can result in substantial economies
on a national scale.
5/21/2013 59Xavier Institute Of management
7/30/2019 ABC and Value Analysis
60/64
Cont.
This valuable technique, if systematically employed,promises rich dividends,and, among other things,
enables greater use of indigenous raw materials and
equipment by import substitution. It is, therefore, of
special significance to a developing country like India
which has adopted a programme of rapid
industrialization in the face of paucity of foreign
exchange and other handicaps.
5/21/2013 60Xavier Institute Of management
7/30/2019 ABC and Value Analysis
61/64
Cases..
A manufacturer of domestic water heaters conducted a VAanalysis. It found that the customer derived value from the
cost efficiency and reliability of the product. In addition,
the company found that the largest source of failures
resulted from internal moving parts that failed frequently.
The VA exercise resulted in a decrease in these moving
parts (valves etc.) and a replacement of other problem items
with more cost-effective alternatives. The reliability of the
product has resulted in no complaints from customers and a
reduction of moving parts to only three parts.
5/21/2013 Xavier Institute Of management 61
7/30/2019 ABC and Value Analysis
62/64
Cont.. A lighting company has achieved savings of 6 times the
costs of its value analysis exercises. One product has
achieved a 250% increase in sales over its predecessor.
Now the company has trained over 15% of its workforce in
VA techniques.
Toy Company redesigned a model product, as a result of a
VA exercise, and reduced the many different metal
fasteners with just one type creating a saving for thecompany and the supplier.
5/21/2013 Xavier Institute Of management 62
7/30/2019 ABC and Value Analysis
63/64
Reference
S.A. Chunawalla, D.R Patel (2005), Production andOperation management, Himalaya Publication,
Mumbai.
http://www.productivity.in/knowledgebase/Value%20An
alysis/g.%20Value%20analysis%20and%20Value%20engineering.pdf
5/21/2013 63Xavier Institute Of management
http://www.productivity.in/knowledgebase/Value%20Analysis/g.%20Value%20analysis%20and%20Value%20engineering.pdfhttp://www.productivity.in/knowledgebase/Value%20Analysis/g.%20Value%20analysis%20and%20Value%20engineering.pdfhttp://www.productivity.in/knowledgebase/Value%20Analysis/g.%20Value%20analysis%20and%20Value%20engineering.pdfhttp://www.productivity.in/knowledgebase/Value%20Analysis/g.%20Value%20analysis%20and%20Value%20engineering.pdfhttp://www.productivity.in/knowledgebase/Value%20Analysis/g.%20Value%20analysis%20and%20Value%20engineering.pdfhttp://www.productivity.in/knowledgebase/Value%20Analysis/g.%20Value%20analysis%20and%20Value%20engineering.pdf7/30/2019 ABC and Value Analysis
64/64
Top Related