value engineering

Value Analysis of Connector Assembly of

VoltageRegulator

SHASHI KUMAR|2010ME20800

MEL 324Prof. A. D. Gupta

The Project

• The subject of this project was a subassembly, called a Connector as an essential part of the overall product called the Voltage Regulator

• Voltage Regulator is used in power-line systems to provide voltage regulation to those lines

• 11 Standard and Special Parts

• 5 Assemblies per Voltage Regulator

• 175 Voltage Regulators per year

• 900 Assemblies per year

Preliminary Investigation

Maximum input from the cover bushings is 30A.

2 connections from the connector:• Connection to the terminal on the

bottom end of the cover bushing wire between the two 3/8 inches brass units.

• Crimping the core and coil lead to the lower end of the connector assembly using a special brass nut

Pressure of 7psi above atmospheric pressure is generated on the core and coil

Additional Preliminary Investigation

• The product was designed 5 years ago in a semi-emergency situation.

• No costs had been established and no operational tests were conducted due to lack of time.

• Factor of Safety established by the designer solely on the basis of his past experience and guess work.

Information PhaseSeek complete information and data collection

Secure the Facts

— Various sources of information to be located— Use of Information Worksheet— Before approaching sources, exact information/specific

questions to be asked, are to be identified

Application & Marketing Background• Customer and company specifications and requirements• Filed service reports• Anticipated Market Life• Anticipated market requirements• Application and marketing recommendations for

investigation, change or improvement.

Parts

FIND NO. PART NAME QUANTITY

1 STUD, BRASS 1

2 NUT, BRASS 1

3 TUBE, SPECIAL 1

4 WASHER, RECESSED 1

5 GASKET 2

6 NUT, HEX, BRASS-3/8 2

7 NUT, HEX, BRONZE-1/2 1

8 LOCK WASHER-3/8 1

9 LOCK WASHER-1/2 1

Engineering Background

• Technical History of the Product• Requirement of this part in the equipment• Quantity requirements for this and other

equipment• New Developments and changes being considered• Engineering recommendations for investigation,

change or improvement

Manufacturing and Procurement Background• Consulted Industrial Engineering personnel in the

Manufacturing Department on how special parts were manufactured and shop supervisor to secure additional facts and opinions.• Process specifications, sequence if operations,

quantitates• Material Utilization• Scrap• Present Suppliers

Determine the Costs

— Cost supplied by the Accounting Department shows material cost, labor cost and burden

— Only be interested in Direct material and direct labor costs.

— Product cost for each component and assembly— Cost of Assembly parts: material, direct labor and burden— Direct labor cost: $3 per hour— Burden: 300% of direct labor— Only interested in Direct labor and material costs— Because of direct effect on a hardware project

Fix Costs on Specifications and Requirements• 4 Specifications and Requirements are identified and

cost is assigned to them as fraction of cost components from which they are accomplished.

—30 A Current = $ 1.689—Connection & Disconnection = $ 0.148 + $ 1.689 =

1.837—Seal Opening = $ 1.440—Resist Vibration = $ 0.004 + $ 0.007 = $ 0.011—Total= $3.728

Parameters and Specifications• Bushing lead wire input 30A• Bushing & Coil lead wires are 4.25” apart• Connection to lead wires must be readily

disconnectable• Complete unit subjected to shipping and

operational vibration• Pressure generated in operation is 7psi• Hole in insulating panel is 0.5” in diameter

FUNCTION PHASEHeart of Value Engineering Job Plan

Define the Function

—Filling up of Functional Development Worksheet—Function defined using a verb and a noun—Kept a list of verbs and nouns of “work” and “sell”

function

3/8" Brass Nuts

• Establish Connection: Connection of lead wire to the connector.• Control Location: Location of the wire.• Apply Pressure: For controlling location.• Conduct Current: At least one of the nuts in contact with the

lead wire.• Resist Pressure

• Primary Function: Establish Connection as the two brass nuts are included in the assembly for establishing connection.

3/8" Lock Washer

• Transmit Pressure: Transmits the pressure applied by one brass nut to the other.• Induce friction: The friction force between washer and nut

prevented the rotation of nuts and thereby preventing from loosening it.• Establish Location• Resist Movement

• Primary function: Induce friction.

1/2" Bronze Nut

• Apply Pressure: It applies pressure to the gaskets and help in sealing the opening in the insulating panel.

• Control Location: By applying pressure to the parts below it , controls the location of the whole assembly.

• Primary function: Apply pressure

Recessed Washer

• Create Location: It created location for gaskets due to the lip designed around its outside diameter.

• Transmit Pressure: It transmitted pressure exerted by the bronze nut through the lock washer to the gaskets.

• Primary function: Transmit Pressure

Gaskets

• Create Seal: Helps in sealing the opening in insulating panel.• Control Location: Controls the location of whole assembly• Transmit Pressure: Transmits pressure exerted by the bronze

nut ultimately to the insulating panel• Provide Connection: Only the gaskets and the stud came in

contact with insulating panel thereby providing connection.

• Primary function: Create seal

Brass Stud

• Provide Connection• Create Location• Conduct Current: From the two nuts at the top to the tube

and nut from the bottom.• Resist Movement: Movement parallel to the plane of

insulating panel.• Transmit Pressure: From the bronze nut to the gaskets

through stud.

• Primary function: Conduct Current

Brass Nut

• Create Location: For the special tube• Conduct Current• Establish Connection: Between tube and the stud.• Apply Pressure: On the tube

• Primary function: Establish connection

Tube

• Establish Connection: Between the core and coil lead.• Create Location: While establishing the above connection.• Transmit Pressure: Applied by the brass nut.• Conduct Current

• Primary function: Establish connection

Determine Functional Levels—Determination of basic and secondary functions—For each component, one of the defined function was

classified as primary function and the rest of them as secondary functions

—Reduced the number of functions to be considered for the basic function of the assembly

—If a function is not basic to a part then it cannot be basic, or even directly secondary to the assembly

FUNCTIONAL DEFINITION WORKSHEET

Quantity Components/ Operations Functions Functional Part Assembly LevelVerb Noun P S P S

2 3/8" Brass Nuts Establish Connection √ √ Control Location √ √ Apply Pressure √ √ Conduct Current √ √ Resist Pressure √ √1 3/8" Lock Washer Transmit Pressure √ √ Induce Friction √ √ Establish Location √ √ Resist Movement √ √1 1/2" Bronze Nut Apply Pressure √ √ Control Location √ √1 1/2" Lock Washer Transmit Pressure √ √ Induce Friction √ √ Establish Location √ √ Resist Movement √ √1 Recessed Washer Create Location √ √ Transmit Pressure √ √2 Gaskets Create Seal √ √ Control Location √ √ Transmit Pressure √ √ Provide Connection √ √1 Brass Stud Provide Connection √ √ Create Location √ √ Conduct Current √ √ Resist Movement √ √ Transmit Pressure √ √

1 Brass Nut Create Location √ √ Conduct Current √ √ Establish Connection √ √ Apply Pressure √ √1 Tube Special Establish Connection √ √ Create Location √ √ Transmit Pressure √ √ Conduct Current √ √

• Total number of functions: 34• Total number of primary functions at component level: 9• Out of 9,three are redundant. We are left with 6 unique

Primary Functions for numerical evaluation.

Key LetterFunctions

Verb NounA Establish Connection

B Induce Friction

C Apply Pressure

D Transmit Pressure

E Create Seal

F Conduct Current

Evaluate Functional Relationships—Relative importance of the functions, their importance to

the assembly and their relative importance to each other were determined

—Technique of numerical evaluation of functional relationships

—Each function is compared to only one other function at a time and its importance as well as the magnitude of difference of importance is determined

Numerical Evaluation

B C D E F

A A3 A3 A3 E2 F3

B B1 B1 E3 F3

C C1 E3 F3

D E3 F3

E F3

F

Evaluation Summary

Key LetterFunctions

WeightVerb Noun

A Establish Connection 9

B Induce Friction 2

C Apply Pressure 1

D Transmit Pressure 0

E Create Seal 11

F Conduct Current 15

Functional Importance Graph

F E A B C D0

2

4

6

8

10

12

14

16F; 15

E; 11

A; 9

B; 2C; 1

D; 0

DESIGN FUNCTIONS

WEI

GH

T FA

CTO

R

Secondary Functions

Major Drops

Primary Fn.

Checks for Accuracy

• First check that the Major Drops are Achieved• Compare the same with the knowledge of what

customer wants• Least important Function must have zero value• No two function should have same percentage

weights• There should not be any loop formation

Creation Phasedevelop as many possible ideas for a function

Introduction

Develop as many possible ideas for a function using our imagination and creativity to achieve goal

Functions considered for creation phase:1. Conduct Current2. Create Seal3. Establish Connection

Establish Positive Thinking

—Preparation phase—Need for creativity among team members—Removed everything relating to the assembly

which could prejudice their minds—Left a list of 3 two word functions;

conduct currentcreate seal establish connection

Develop Creative Ideas

Two directional approach• Unassisted Creativity: This was simply a test of their

untrained creative ability.

• Each individual would take a single function and list as many ideas for that function as he could on the creative worksheet and then passed to the next man.

• In this way they generated for each function a list of between 15 and 22 different ideas.

Develop Creative Ideas

• Assisted Creativity: They used a dictionary and creativity checklists.

• The team member with the worksheets read all the ideas listed for a function and the other two members with dictionary and creativity checklists. In this way they built an original idea or added a new idea.

• When they had finished, they had developed, for each function, a list of from 40 to 100 ideas.

Function – Conduct Current1. Wire 10. Paper Clip 2. Bolt 11. Nail3. Welding Rod 12. Laser4. Water 13. Magnetic Field5. Air 14. Rod 6. Iron 15. Screw7. Steel8. Brass9. Copper

Function – Create Seal

1. Paint 10. Wax 2. Rubber 11. Pitch3. Ring 12. Chrome4. Plug 13. weld5. Dried Blood 14. Rivet6. Varnish 15. Fit7. Glue 16. Washer8. Plastic9. Epoxy

Function – Establish Connection

1. String 10.Pressure2. Rope 11. Screw3. Adhesive 12. Nail4. Stud 13. Rivet5. Bolt 14. Tape6. Terminal 15. Tie7. Weld8. Clip9. Glue

Evaluation PhaseDeveloping low cost feasible ideas to potential workable solutions

Establish the Requirement

• Ideas discussed for feasibility, performance and cost.• Activate judicial thinking which was eliminated in the

Creativity phase and be creative towards any new problem.• Collected information of the Information Phase, worksheets

of the Function Phase and Creation Phase. • Did not bring connector or its drawing as this influence their

thinking.• Sketched all the physical parameters and specifications• All techniques applied more or less at the same time.

Parameters and SpecificationsA. Bushing lead wire input 30AB. Bushing & Coil lead wires are 4.25” apartC. Connection to lead wires must be readily

disconnectableD. Complete unit subjected to shipping and

operational vibrationE. Pressure generated in operation is 7psiF. Hole in insulating panel is 0.5” in diameter

Develop Function Alternatives• They started working on Functional Development

Worksheet.

Conduct Current

They selected “conduct current” as it was the basic function of the assembly and had highest weight factor of 15.From the creative worksheet they selected lowest cost idea – paper clip.(1/10 cents)

Function Creative Idea(s) & Development Estimated Cost(Cumulative)

1. Conduct Current Paper Clip $ .001

Now in reviewing the parameters and specifications listed below the sketch they found that specification B “Bushing and coil lead wires 4 ¼ inches apart” was not being met by the paper clip.

They again review the creative worksheet to see if this paper clip idea could be combined with another idea or if it could be further developed.

As a remedy they found that when the paper clip was straightened it would form a piece of wire and be 4 ½ inches long .(9/10 cents)


1. Conduct Current 4’/4” between leads

Paper ClipPaper Clip-bend straight-4 ½ ” long

$ .001$ .01

Now team again reviewed the complete problem parameters and specifications they recognized that now 4 ¼ inch long wire of paper clip diameter would not meet specification A: “Bushing lead wire input 30 amperes”

One team member using creative yet judicial thinking suggested to increase the wire diameter to 8 gauge in case of copper wire.(1 cent)



4’/4” between leads Paper Clip-bend straight-4.5” long $ .01

30 amps of current Change above to 8 gauge wire $ .02

Create Seal

Selected next function, i.e., “create seal” having a weight factor of 11.

From the creative worksheet, idea 2, rubber; idea 4 plug; and idea 35, cork could be combined to accomplish this function in conjunction with the previous idea.

Decided to use rubber plug in the shape of a standard bottle stopper cork with a hole in it of such that an 8-gauge wire would pass through it as a press fit. (5 cent)



4’/4” between leads Paper Clip-bend straight-4 ½ ” long $ .01


2. Create Seal Rubber stopper with hole to accept wire as force fit

$ .07

Checking the problem parameters and specifications sheet, they saw that point E “pressure generated in operation 7 P.S.I.”

Realized that at no additional cost they could reverse the stopper and have the pressure working in their favor.






$ .07

7 P.S.I. Reverse stopper so pressure forces into hole

$ .07

• Specification D, “the shipping vibration” would shake the rubber stopper out of the ½ inch hole.• Decided to scrap their rubber stopper idea. • They went back to creative worksheet and spotted idea 2,

ring.• After some discussion they come to another idea of-molded

rubber grommets that have a flange at both top and bottom.(5 cent)






$ .07


$ .07

Shipping Vibration Change stopper to double flanged grommet

$ .12

Functional Development WorksheetFunction Creative Idea(s) & Development Estimated Cost

(Cumulative)

1. Conduct Current Paper Clip $ .0014’/4” b/w leads Paper Clip-bend straight-4.5” long $ .01



$ .07


$ .07


$ .12

½ inch hole Grommet fits hole- no change $ .12

Establish Connection

Idea 7,weld; 22, solder; 23, bronze; or 45, twist were not feasible as “connection to lead wire must be readily disconnectable”.

Idea 8, clip. Chose an Alligator clip, one that is spring actuated so that it will be disconnectable and not subject to loosening due to vibration. (8 cent)

3. Establish connection Use clip on each end 8 gauge wire (alligator type)

$ .20

Disconnectable No change required $ .20

Shipping Vibration No change required $ .20



4’/4” between leads

Paper Clip-bend straight-4.5” long $ .01



$ .07


$ .07


$ .12

½ inch hole Grommet fits hole- no change $ .12

Functional Development Worksheet

3. Establish connection Use clip on each end 8 gauge wire (alligator type)

$ .20

Disconnectable No change required $ .20

Shipping Vibration No change required $ .20

4. Induce Friction No modification required $ .20

5. Apply Pressure No modification required $ .20

6. Transmit Pressure No modification required $ .20

Total $ .20

Investigation PhaseMake and Develop ideas which are workable and sellable.

Introduction

• The technique of Investigation phase involves completing the product from semi-finished to finished state.• Ways of overcoming the disadvantages and of strengthening

the advantages to make the product work as well as sell

Consult vendors and specialists• Approached a marketing specialist from the company to whom they

introduced the idea and discussed advantages & disadvantages one after the other.

• Realized the idea was workable but not sellable.

• Analyzed each disadvantage to find out solutions for the same.

• Used Idea Evaluation Worksheet to state their idea

• Members and specialist discussed only the advantages of the idea first, each individual speaking for his own specialty i.e. marketing, engineering, purchasing, manufacturing.

• The marketing specialist spelled out the disadvantages on specific problem areas.

• All the advantages and disadvantages were noted on the worksheet.

• Decided to overcome disadvantages• Took their functional development worksheet and

in the estimated cost column drew a line and headed this column "sell”. • This showed the difference between the work cost

and the sell cost as they redevelop the idea.

Idea Evaluation Worksheet

Idea Advantages Disadvantages

Conduct Current A.B.

1. Seal may release under pressure

C.D.E.F.

2. Alligator clips will have to be fastened to wire at assembly- might be problem in mfg.

G.H.I.

3. Wire could slip through grommet, which would require panel disassembly

J. 4. Due to shipping and operational vibrations, 8 gauge wire and connectors may be too small.

Final development of alternatives• Considered each disadvantage one by one• Disadvantages 3 and 4 were critical to the idea i.e. “ CONDUCT CURRENT”• Shipping and operational vibration could work harden

the wire and make it snap thus making voltage regulator unstable.

• Idea developed- Increase the size of conductor from 8 gauge wire to ¼-inch diameter rod hence increasing cost of the accomplishment of the function from 2 cent to 10 cents.

• Prevent slip of wire through grommet Idea developed- Use of circular spring clip• This idea costs 2 cents.• These two ideas gave a increase of cost of 10 cents and a

new estimated cost of 14 cents.

• “Seal may release under pressure”• Idea developed- put another circular spring clip on the rod

below the insulating panel.• Assumed that the ¼ inch rod cost same as 8 gauge wire.• Team member from the Purchase department suggested

circular spring clips.

• Realized that when they converted the conductor from 8 gauge wire to ¼ inch rod they eliminated the use of alligator clips for connection purpose.• With positive attitude the team proceeded and went back

to creative idea sheet and found a solution for this problem i.e. studs fastened with the help of nuts.

• Idea developed- top lead should be connected to connector by use of stud nut assembly which costs them 3 cents more and lock washers at 1 cents resulting total cost of change is 24 cents.

Final estimated cost of idea is 40 cents which was double than that of original idea.

Is the idea is sellable and workable?

Use company and industry standards• Contacted manufacturing and purchasing specialist• Seek knowledge about company standards to achieve

further cost reduction• Manufacturing Specialist suggested a ½ inch diameter stud

instead of ¼inch diameter stud as it is available in standard stock and it costs less as this size is used in standard transformers.• Team assembled the parts and the model worked

• The final complied cost : Bronze rod ½ inch 4 ½ inch long= $ 0.20 Nut jam brass ½ inch @.05 =$.30

lock washer steel @.02 =$0.04 gasket nitrile @0.132 =$0.262

Total =$0.862• The total cost was double of their developed idea’s cost.

Still, the actual cost was far less than what that they started in the beginning. • Team closely noticed that the function “create seal” costs

$0.362 which was more than any other function cost.• Then the team started working on this specific function to

reduce cost.

• A team member dug out a print of total assembly and pointed out that there was no seal at all between the insulating panel and the tank wall.• They also realized that 7 psi pressure was equal throughout

the inside of the tank, there being equal pressure at both the ends of the grommet.• The “Create seal” function and “7 psi” parameter were Self

Imposed functions.• This solution itself decreased the cost of function by $0.262.

Thus giving a new total equal to 54 cents.• “Pacing leads 4 ½ inch apart” is also self imposed

specification.• At last team removed two nuts.

• Brass rod ½ inch dia, 4 ½ inch long=$0.20 Nut jam brass ½ [email protected] =$0.20 Lock washer steel @0.02 =$0.04

Total =$0.44

$3.728 $0.44 88%

Recommendation PhaseFinishing the Value Engineering Job plan

Introduction

• Results of all the previous efforts depends on the successful completion of this phase• The team worked to get the idea approved by the

project manager• The major objective is to motivate positive action in

favor of acceptance and implementation of the proposal• Techniques:

1. Present Facts2. Present Costs3.Motivate Positive Action

• The VE team reviewed the project data and listed the changes, both minor and major to be recommended• They rescreened the data in search of possible ideas for

change• A number of significant points were noted

From the Information Phase

1.No spares are required under normal operating conditions.2.Simplify construction and reduce weight.3.Parts must be interchangable4.Problems coming with the stud and copper tube.5.Increase lot size to reduce no. of setups.6.Reduce stud size to eliminate gasket assembly problem7.Whether Plated lock washers and ½-inch bronze nut are necessary or not

No seal is required at the insulating panel, modify design-eliminate gaskets, recess stud and washer

From project work

Point 4:Problems coming with the stud and copper tube: Purchase flat-headed hollow rivet or eyelet• Flat head 3/8” in diameter• 3/4” long• $0.25 per piece• Indenting: $0.20 per piece

JOY MANUFACTURING COMPANY COST IMPROVEMENT RECOMMENDATION

Date___________________ Ref. No.________________________Product __ voltage regulator #3116 Assy. Or Part____Tube-special___________Part No-___9090547-3_______________ Qty. Product-_5__ Qty./year ___850_____ _________________________________________________________________________Potential 1st year savings $ 257.00 Sales Forecast- 175 Product (Next 12 months)_________________________________________________________________________

PRESENT RECOMMENDED

Calculation of saving

Material Direct Labour Fringe Benefit Total

Present $ 0.228 $ 0.525 ------ $ 0.753Proposed $ 0.250 $ 0.200 ------ $ 0.450Difference per piece or Assy.

------- ------- ------ $ 0.303

Implementation cost- MFG. $_____________ ENG. $ 20.00 ____________________________________________________________________________Findings & Recommendations:The present copper tube has a high scrap rate in manufacture due to splitting during formation of head. This problem would be eliminated by replacing it to a purchased hollow rivet while realizing a saving.It would require a change in the drawing and bill of material plus addition of a part to the inventory. It would take two hours of engg to modify the drawing and bill of material

Approved By________________ Rejected ________________ Date________________Engineering change order no.-_______________For Further info._________________Team Members_______________________________

• Point 5: Increase lot size to 75 pcs. Per month• Reduce setups from 34 to 12


Date___________________ Ref. No._______________________Product voltage regulator #3116 Assy. Or Part_____see below__________ Part No- see below Qty./Product ___5_____ Qty./Year 850_______________ __________________________________________________________________________________Potential 1st year savings- $ 488.40 Sales Forecast- 175 Product (Next 12 months)__________________________________________________________________________________

• Present-Manufacture

InLots of 25

------------------------ 34 setups required per

year

• Recommended-Manufacture

InLots of 75

--------------------------12 setups required per

year

Parts: Brass stud Brass nut Special tube Recessed washer Gasket



Present ----- $ 754.80 ------ ------

Proposed ----- $ 266.40 ------ ------

Difference per piece or assy.

----- $ 488.40 ------ ------

Implementation Cost- Mfg. $ 10.00 Engg. ----------________________________________________________________________________Findings $ Reecommndations –Based on a usage of approximately 75 per month , it is recommended that this be the release quantity to manufacturing for the above saving. If the previous recommendation is accepted , this saving will be reduced by $ 64.80. To make this change one hour of mfg. engg. Time would be required to change the routers and production order records.

Approved By-------------------- Rejected--------------------------- Date--------------------Engineering change order no.------------------ For Further info.--------------------------Team Members-----------------------------------

• Point 6: Reduce stud size to eliminate gasket assembly problem• No direct cost reduction, but improves manufacturing• Reduce diameter by 1/64”


Date___________________ Ref. No._______________________Product voltage regulator #3116 Assy. Or Part Brass stud . Part No- 9090547-1 Qty./Product 5 Qty./Year 850_______________ __________________________________________________________________________________Potential 1st year savings- $ 0 Sales Forecast- 175 Product (Next 12 months)__________________________________________________________________________________

Present Recommended



Present ----- ------ ------ ------

Proposed ----- ------ ------ ------

Difference per piece or assy.

----- ------ ------ ------

Implementation Cost- Mfg. $ 10.00 Engg. $ 10.00------------------------------------------------------------------------------------------------Findings $ Recommendations –It is recommended that the basic diameter of this part of the stud be reduced from½ inch to 31/64 inch. This would eliminate the assembly problem. This change would require one hour of engg. Time to change the drawing and one hour of manufacturing engg. Time to change the routers. Direct saving would not be realized here.



Date___________________ Ref. No._______________________Product voltage regulator #3116 Assy. Or Part___stud,washer,gaskets__ Part No- 9090547-1,4,5 Qty./Product ________ Qty./Year 850_______________ _____________________________________________________________________________________________Potential 1st year savings- $ 782.80 Sales Forecast- 175 Product (Next 12 months)_____________________________________________________________________________________________

• Present • Recommended



Present $ 0.997 $ 1.194 ------ $ 2.191Proposed $ 0.670 $ 0.600 ------ $ 1.270Difference per piece or Assy.

$ 0.327 $ 0.594 ------ $ 0.921

Implementation Cost- Mfg. $ 20.00 Engg. $ 50.00-----------------------------------------------------------------------------------------------------Findings $ Recommndations –It has been found that the seal between the stud and the insulating panel is not necessary , it is recommended that the configuration be modified as shown.That is, the gaskets eliminated,the recess removedfrom the stud and the recessed washer is replaced by a standard flat washer. Two hours of mfg. engg. Time would be required to change the routing and tools.Engineering would require five hours to change the drawing and bill of material.


Minor Modifications

Reference No Parts Potential Savings

1 Tube, special $ 257.00

2 Increase lot size $ 488.40

3 Brass stud $ 0

4 Stud, washer, gaskets $ 782.80

Total $ 1528.20


Date___________________ Ref.No._______________________Product - voltage regulator #3116 Assy. Or Part___connector___________ Part No- 90905-47 Qty./Product __5______ Qty./Year 850_______________ ___________________________________________________________________________________________Potential 1st year savings- $ 2794.80 Sales Forecast- 175 Product (Next 12 months)_____________________________________________________________________________________________

• Present • Recommended

Calculation of saving Material Direct Labour Fringe Benefit

Total

Present $ 1.665 $ 2.073 ------ $ 3.728Proposed $ 0.440 -------- ------ $ 0.440Difference per piece or Assy.

$ 1.215 $ 2.073 ------ $ 3.288

Implementation Cost- Mfg. $ 20.00 Engg. $ 30.00----------------------------------------------------------------------------------------------------Findings & Recommndations –It is recommended that the assembly as shown be used to accomplish the basic and required functions at an 82% lower cost . No gaskets are required.Secondry Benefits-1.Eliminate 5 special items from inventory and their drawing2.Increase turnover of present inventory items 3.Reduce manufacturing and assembly time4.Low implementation cost , no additional tooling requiredTwo hours of manufacturing engg. Time and three hours of engineering would be required.Approved By-------------------- Rejected--------------------------- Date--------------------Engineering change order no.------------------ For Further info.--------------------------

Plan Execution Duration

Scheme Fully Implemented in 75 days.

Det. Mod. Des.& drw.

7

5

1 1 17Approval

Engg. Changes

being made

Perf

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Hold on Manf. Routing for assemb.

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Phase in to the product

Critical Review

Information Phase

• The cost of “Seal Opening” is found to be $ 1.440 instead of the given $ 1.404 in the available text• In case of both special and standard product, an Inventory

Model like Economic Order Quantity(EOQ) can be used to determine the optimal lot size of production and order respectively.

Function Phase

• Lock washer: By inducing friction it is resisting the movement. So resist movement should be removed (MULTIPLE DEFINITION).• Recessed Washer: Lot of other components are

transmitting pressure. So creating location for the gaskets should be the primary function of it.

Also, it retains the gaskets ,therefore resist movement should be added as a function.

Using Functional Rating Grid

A B C D E F Weight

A - 1 1 1 0 0 3

B 0 - 1 1 0 0 2

C 0 0 - 1 0 0 1

D 0 0 0 - 0 0 0

E 1 1 1 1 - 0 4

F 1 1 1 1 1 - 5

Sl. No. Key LetterFunctions

WeightAdjusted Weight

Percentage Weight

Verb Noun

1 F Conduct Current 5 6 28.57

2 E Provide Seal 4 5 23.81

3 A Establish Connection 3 4 19.05

4 B Induce Friction 2 3 14.29

5 C Apply Pressure 1 2 9.52

6 D Transmit Pressure 0 1 4.76

Revised Numerical Evaluation

B C D E F

A A2 A3 A3 E2 F3

B B1 B2 E2 F3

C C1 E3 F3

D E3 F3

E F2

F

F 14

E 10

A 8

B 3

C 1

D 0

Function Cost Matrix

Component3/8"

Brass nuts

Lock Washers

Rec. Washer

Bronze nut

Gaskets

StudBrass nut

Tube Total

Cost ($) 0.148 0.011 1.371 0.129 1.102 3.3 1.558 2.328 9.947Function

A 0.1 0.15 1 1.328 2.578B 0.007 0.007C 0.024 0.129 0.153D 0.004 1.371 0.15 0.8 0.5 2.825E 0.802 0.802F 0.024 2.5 0.558 0.5 3.582

FCW Matrix and VIP Indices

Function Cost($) % Cost%

Adj.Weight VIP Index Remarks

F 3.582 36.01 36.36 0.99 HC

E 0.802 8.06 27.27 0.30

A 2.578 25.92 22.73 1.14 PV, HC

B 0.007 0.07 6.82 0.01

C 0.153 1.54 4.55 0.34

D 2.825 28.40 2.27 12.50 PV,HC

Poor Value & High Cost Functions

F Conduct Current HC

A Establish Connection PV,HC

D Transmit Pressure PV,HC

Creativity Phase

• Group Brainstorming sessions where cross-fertilization of ideas could be facilitated.• Since Creativity phase is independent of the previous

knowledge of the project, a third party could be brought in who would give ideas without any prejudice.

Evaluation Phase

• Many ideas in Creativity phase, only few were assessed.• Function: Conduct Current

In stead straightening the paper clip, a straight wire could be used as BUY component.• Tackling the problem in reverse direction by looking over

the problem in the parameters and later finding solutions for the same.

Investigation Phase

• A list of standard parts available in the company should be kept since the beginning of this phase.• Self-Imposed Functions: The original material of the total

assembly should be deeply studied in advance. This would approve all the Specifications and requirements.• All the three specialists- Marketing, manufacturing and

Purchasing should be consulted at once.

Recommendation Phase

• The inventory costs were not considered while considering the lost size.• Use of Metric threads instead of UNC thread as they are

cheaper.

Questions?

value engineering

Documents