Techniques of Value Analysis and Engineering by Lawrence D. Miles, First Edition, 1961
Examples
Electrical Control - Pp.1-2
Componet wire clip made of phosphor bronze costing $7000 a year.
Function: Held the cover. cover opened for servicing expected to be done six times in the life time of the device.
What else will do the job?
Clip made of spring brass
Cost: $3000
The cover itself cost 4 cents - total expenditure of $40,000
Function: to keep extraneous material out.
The control was mounted inside another closure.
What else will do the job?
Plain piece of plastic.
Cost: 1.5 cents. Total expenditure $15,000.
Household garbage disposer p.6
Case Study - Control - P.10,11
Standard catalogue item found for 25 cents
Sub-assembly supporting an emergency control lever designed cost $20.33
VA led to new cost of $8.12
When new order came with some modifications to design, the old analysis helped it also.
Case Study - Radiation Control P.12-13
Cost: $50,000
What else will do the job?
Sand will 14 feet thick and 14 feet high. Cost $5000
It pays to enquire what else will do?
CS - Conduct Eletric Current in Steel 17-18
What else will do the job?
steel
But the design engineers objected that electrical conducting parts are made of nonferrous metals only.
Value engineer after investigation showed them that in some other instruments steel was used for conducting parts.
The answer was that they nonferrous metal is not suitable due to high temperature.
The natural question is why you can't use it in this instrument when it will give a big cost advantage.
The alternative of steel was accepted.
Case Study: 10,000 bolts
Component: 1/2 inch steel bolt, 12 inches long with a square head and square nut
What else will do the job?
A supplier suggested a threaded stud with a nut already chased on one end at 15% less cost.
Ex. Metal strip hinge about 8 inches long with holes for fixing it to the door and one edge rolled to insert a hinge pin. Made by stamping and forming
Quantity 500,000 pieces
Number of alternatives were investigated and found to be not suitable. But value analyst has to persist.
A suggestion was made that a strip of steel in continuous rolls can be used to roll the edge of the strip and the holes can be made later.
The suggestion received number of objections but was tried and found to be practicable and a 10% cost reduction was achieved.
This amounted $50,000 savings. Value engineer working in an engineering needs to have good engineering knowledge to find suitable
alternative processes and develop them to deliver the sulution to the satisfaction of all involved.
CS - Silver Contact Assembly 28-32
Case Study: Pivot pin
Cost $3.65
Quantity consumed : 50 million
Supplier said he could not reduce price due to features and tolerances.
Every feature and tolerance of the pin were questioned.
5 alternatives were developed and suppliers were asked to quote.
Method two was quoted $1.90 per thousand and accepted.
Examples of the technique - Avoid generalities37-40 ------------- 10
CS Develop Specific Information P.40
Standard screws of 1 inch thread were being purchased and in the factory thread is being made up to head. Cost is 12 cents.
Value engineers contacted suppliers to quote for the screw with full length. quote for 2.5 cents was obtained.
Case Study - Crystal glass or window glass
The practice was to term the clock face as crystal. But it is only window glass, warmed and sagged.
But freigth rate for crystal was 1.25 times the first-class freight rate and freight rate for window glass was only 0.85 times the first class freight rate.
The terminology was changed in the invoice and bill lading and 32% savings was obtained in the freight rate.
There was serious customer resistance to an important electromechanical item in a company on the issue of price. An examination showed that cost price reported is high. Examination of the parts used and their costs showed the following reasons.
1. Parts made on less than optimum equipment and costs recorded were high.
2. Parts were often made by skilled labor when such a requirement was not there and costs charged were high.
3. A "blanket" fixed equipment cost is being used as overhead when the part was made using a screw driver or an expensive machine.
Interpretation: Cost figures which are used for pricing have no relevance. Labor costs, machine costs and set up costs which are relevant have to be used.
Hence, determination of appropriate costs, strictly applicable to the parts and assembles of the product was made. Then value analysis was applied on each of the parts. Poor value parts were identified and value engineering was done to reduce the cost. The end result was reduction in cost to less than half.
Use Information from the Best Source
Ex. For the availability of steel, the best source is the purchasing agent not marketing manager.
Ex. Underwriter won't approve it. Contact the underwriters.
A company is using a glass cover with a curved shape of 10 in diameter. The value analyst was told that there is only one supplier for the item and even though cost looks high nothing can be done about it. Value analyst reasoned that the buyer is not the best source of knowledge regarding the available suppliers. He approached the purchase persons of a clock factory and asked them regarding suppliers for the part. They indicated six suppliers and the cost came down to less than 50% of the current cost.
Ex. Part from copper tube - P.54
Ex. Clamp bar P.55
Ex. Small radio-frequency transformer ------------- 20
Cost of resent design $520. One tank made of special high-cost alloy steel.
Blast: Four 50-gallon standard drums
Create phase idea: If iron used for drums of tanks is not suitable. add appropriate coatings.
Refine: Four drums with coatings used.
Cost came down to $80
Ex. Joy stick assembly for a radar P.57
Number of components of this controller were made in different ways for reduced cost.
One illustration: A steel hub with six small holes drilled around the circumference at the top end is being made. The search for a specialty items revealed that some companies sell slugs, round pieces of aluminum punched from sheet stock. It was slightly cupped and it needs to be flattned. the cost of the slug was 4 cents, flattening cost 1 cent. Drilling a center hole and holes on the periphery cost 8 cents. The total cost of the part came to be 13 cents instead of the current cost of $1.27.
Examples
Electrical Control - Pp.1-2
Example: VA of electrical control
Componet wire clip made of phosphor bronze costing $7000 a year.
Function: Held the cover. cover opened for servicing expected to be done six times in the life time of the device.
What else will do the job?
Clip made of spring brass
Cost: $3000
The cover itself cost 4 cents - total expenditure of $40,000
Function: to keep extraneous material out.
The control was mounted inside another closure.
What else will do the job?
Plain piece of plastic.
Cost: 1.5 cents. Total expenditure $15,000.
Household garbage disposer p.6
Case Study - Control - P.10,11
Case Study: Control consisting of electrical and mechanical components
Component: Metal knol - designed cost $2.25Standard catalogue item found for 25 cents
Sub-assembly supporting an emergency control lever designed cost $20.33
VA led to new cost of $8.12
When new order came with some modifications to design, the old analysis helped it also.
Case Study - Radiation Control P.12-13
Case Study: Radiation Shield for X-Ray testing room for large forgings and castings.
Designed suggestion: Build a concrete wall 7 feet thick and 14 feet high.Cost: $50,000
What else will do the job?
Sand will 14 feet thick and 14 feet high. Cost $5000
It pays to enquire what else will do?
CS - Conduct Eletric Current in Steel 17-18
Case Study - Habits often lead astray
In a control device costly nonferrous materials were being for certain parts.What else will do the job?
steel
But the design engineers objected that electrical conducting parts are made of nonferrous metals only.
Value engineer after investigation showed them that in some other instruments steel was used for conducting parts.
The answer was that they nonferrous metal is not suitable due to high temperature.
The natural question is why you can't use it in this instrument when it will give a big cost advantage.
The alternative of steel was accepted.
CS - Value analysis and Value of 10,000 bolts Pp. 20-21
Case Study: 10,000 bolts
Component: 1/2 inch steel bolt, 12 inches long with a square head and square nut
What else will do the job?
A supplier suggested a threaded stud with a nut already chased on one end at 15% less cost.
Ex. Metal Hinge Pp.21-23
Ex. Metal strip hinge about 8 inches long with holes for fixing it to the door and one edge rolled to insert a hinge pin. Made by stamping and forming
Quantity 500,000 pieces
Number of alternatives were investigated and found to be not suitable. But value analyst has to persist.
A suggestion was made that a strip of steel in continuous rolls can be used to roll the edge of the strip and the holes can be made later.
The suggestion received number of objections but was tried and found to be practicable and a 10% cost reduction was achieved.
This amounted $50,000 savings. Value engineer working in an engineering needs to have good engineering knowledge to find suitable
alternative processes and develop them to deliver the sulution to the satisfaction of all involved.
CS - Silver Contact Assembly 28-32
CS - The Pivot Pin 32-35
Case Study: Pivot pin
Cost $3.65
Quantity consumed : 50 million
Supplier said he could not reduce price due to features and tolerances.
Every feature and tolerance of the pin were questioned.
5 alternatives were developed and suppliers were asked to quote.
Method two was quoted $1.90 per thousand and accepted.
Examples of the technique - Avoid generalities37-40 ------------- 10
CS Develop Specific Information P.40
Case Study - Investigate Further - Half length screw to full length screw
Component: 1/4 X 3-inch screw with thread up to the head. Quantity used 40,000 items.Standard screws of 1 inch thread were being purchased and in the factory thread is being made up to head. Cost is 12 cents.
Value engineers contacted suppliers to quote for the screw with full length. quote for 2.5 cents was obtained.
CS - Crystal or Window Glass Pp.40-41
Case Study - Crystal glass or window glass
The practice was to term the clock face as crystal. But it is only window glass, warmed and sagged.
But freigth rate for crystal was 1.25 times the first-class freight rate and freight rate for window glass was only 0.85 times the first class freight rate.
The terminology was changed in the invoice and bill lading and 32% savings was obtained in the freight rate.
CS - Unmeaningful costs used for decision making can bankrupt the business - Pp.47-48
There was serious customer resistance to an important electromechanical item in a company on the issue of price. An examination showed that cost price reported is high. Examination of the parts used and their costs showed the following reasons.
1. Parts made on less than optimum equipment and costs recorded were high.
2. Parts were often made by skilled labor when such a requirement was not there and costs charged were high.
3. A "blanket" fixed equipment cost is being used as overhead when the part was made using a screw driver or an expensive machine.
Interpretation: Cost figures which are used for pricing have no relevance. Labor costs, machine costs and set up costs which are relevant have to be used.
Hence, determination of appropriate costs, strictly applicable to the parts and assembles of the product was made. Then value analysis was applied on each of the parts. Poor value parts were identified and value engineering was done to reduce the cost. The end result was reduction in cost to less than half.
Use Information from the Best Source
Ex. For the availability of steel, the best source is the purchasing agent not marketing manager.
Ex. Underwriter won't approve it. Contact the underwriters.
CS. There is only one supplier P.50
A company is using a glass cover with a curved shape of 10 in diameter. The value analyst was told that there is only one supplier for the item and even though cost looks high nothing can be done about it. Value analyst reasoned that the buyer is not the best source of knowledge regarding the available suppliers. He approached the purchase persons of a clock factory and asked them regarding suppliers for the part. They indicated six suppliers and the cost came down to less than 50% of the current cost.
Blast, Create, Refine
Ex. Part from copper tube - P.54
Ex. Clamp bar P.55
Ex. Small radio-frequency transformer ------------- 20
Ex. Gasoline tank - P.57
function: contain 200 gallons of gasoline in a US Navy landing aircraft.Cost of resent design $520. One tank made of special high-cost alloy steel.
Blast: Four 50-gallon standard drums
Create phase idea: If iron used for drums of tanks is not suitable. add appropriate coatings.
Refine: Four drums with coatings used.
Cost came down to $80
Ex. Joy stick assembly for a radar P.57
CS - The Electric Controller P.59-62
Number of components of this controller were made in different ways for reduced cost.
One illustration: A steel hub with six small holes drilled around the circumference at the top end is being made. The search for a specialty items revealed that some companies sell slugs, round pieces of aluminum punched from sheet stock. It was slightly cupped and it needs to be flattned. the cost of the slug was 4 cents, flattening cost 1 cent. Drilling a center hole and holes on the periphery cost 8 cents. The total cost of the part came to be 13 cents instead of the current cost of $1.27.
Use Real Creativity
CS - No Waste 63--64
A shift lever bracket used in an appliance was made in large quantities from 1/8 in-thick steel sheet and it is of 3 inches wide. A die was used to blank the part. The part cost 11 cents.
One creative idea suggested to order a narrower size so that there is no waste on the sides and do a cutoff operation on the press. Also the symmetry of the part permitted cutting two parts for each stroke. The cost came to 2 cents. Creativity in generating ideas to accomplish the task or function determines the reduction in the cost obtained. Creative ideas can come from an individual or a group. Every idea that comes spontaneously has to be jotted down for further consideration.
Ex. Bulkhead penetration P.65
Ex. Squirtedin self-vulcanizing material - P.65
Ex. Asbestos paper - P.67
Ex. Stainless Steel Nipple - P.68
Ex. It is patented - .68
Ex. Underwriters won't approve it. --------------- 30
CS - It won't work
CS - Underwriters won't allow it.
CS - Do it like an Indina
Ex. Heat transfer enclosure - P.74
Ex. The Linkage - P.74
Ex. Gyros P.74
CS. Small part similar to nail
Ex. Pole piece
CS - Specialty product simplified it.P. 81
Ex. Adjusting screw P.88 ------------------- 40
Ex. A spacer hub P.88
Ex. Thin nut P.89
Ex. High temperature locknut
Case Study: Three springs - Pp.92-93
Ex. Handle for machine tool adjustments P.95
Ex. J - bolit P.96
CS - Mounting holes for perforated sheet
Ex. Undercut screw - P. 98
Ex. Small bracket - P.99
Ex. Tube support Gasket p.99 ------------------------ 50
CS. Temperature sensitive control 100-101
Ex. Tube base
Ex. Aluminium knob
Ex. Small Spring
CS. packaging for wall clock
Ex. Hand wheel P.105
Ex. Heavy solid steel trunnion bolt
Ex. Hub and shaft
Ex. Support clamp
Ex. Assembly of parts ------------------------ 60
Ex. Machine parts
Ex. The 1-cent check
Case Study - Heat sensitive device 111 - 114
Ex. Pulley
Ex. Spacer stud
Ex. Electrical terminal
Ex. Locating part for two compression springs
Ex. Support for steel bar
Case Study - Terminal of electrical device 121 - 123
Case Study - Precision Timer 126-127 ------------------------ 70
CS - Red pointer and red ink - Pp.160-161
CS - Increased Dollar yield per manhour - Pp. 163
CS - Can we scrap the scrap - Pp.167
CS - Did the vendor contribute - Pp. 168-169
CS - Manufacture for profit - P. 170
CS The contacts that were lost - P.171
CS - It is patented - P.173174
CS - Assembly purchased complete - P/175176
CS - Lower cost may mean doing it the right way - Pp. 181-182 --------------- 79 examples
79 examples in the book
More detailed coverage of some cases is available in:
Ex. Bulkhead penetration P.65
Ex. Squirtedin self-vulcanizing material - P.65
Ex. Asbestos paper - P.67
Ex. Stainless Steel Nipple - P.68
Ex. It is patented - .68
Ex. Underwriters won't approve it. --------------- 30
CS - It won't work
CS - Underwriters won't allow it.
CS - Do it like an Indina
Ex. Heat transfer enclosure - P.74
Ex. The Linkage - P.74
Ex. Gyros P.74
CS. Small part similar to nail
Ex. Pole piece
CS - Specialty product simplified it.P. 81
Ex. Adjusting screw P.88 ------------------- 40
Ex. A spacer hub P.88
Ex. Thin nut P.89
Ex. High temperature locknut
Case Study: Three springs - Pp.92-93
Ex. Handle for machine tool adjustments P.95
Ex. J - bolit P.96
CS - Mounting holes for perforated sheet
Ex. Undercut screw - P. 98
Ex. Small bracket - P.99
Ex. Tube support Gasket p.99 ------------------------ 50
CS. Temperature sensitive control 100-101
Ex. Tube base
Ex. Aluminium knob
Ex. Small Spring
CS. packaging for wall clock
Ex. Hand wheel P.105
Ex. Heavy solid steel trunnion bolt
Ex. Hub and shaft
Ex. Support clamp
Ex. Assembly of parts ------------------------ 60
Ex. Machine parts
Ex. The 1-cent check
Case Study - Heat sensitive device 111 - 114
Ex. Pulley
Ex. Spacer stud
Ex. Electrical terminal
Ex. Locating part for two compression springs
Ex. Support for steel bar
Case Study - Terminal of electrical device 121 - 123
Case Study - Precision Timer 126-127 ------------------------ 70
CS - Red pointer and red ink - Pp.160-161
CS - Increased Dollar yield per manhour - Pp. 163
CS - Can we scrap the scrap - Pp.167
CS - Did the vendor contribute - Pp. 168-169
CS - Manufacture for profit - P. 170
CS The contacts that were lost - P.171
CS - It is patented - P.173174
CS - Assembly purchased complete - P/175176
CS - Lower cost may mean doing it the right way - Pp. 181-182 --------------- 79 examples
79 examples in the book
More detailed coverage of some cases is available in:
Value Analysis and Engineering - Examples by L.D. Miles - Part 2
Updated 4 May 2021, 23 July 2018, 26 June 2015
First posted 15 Dec 2013
Updated 4 May 2021, 23 July 2018, 26 June 2015
First posted 15 Dec 2013
Value Analysis and Engineering - Examples
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