Credits: 3 (3-0-0)
Description
Introduction to Value Engineering and Value Analysis, Methodology of V.E., Quantitative definition of use value and prestige value, Estimation of product quality/performance, Classification of Functions, Functional Cost and Functional Worth, Effect of value improvement on profitability. Introduction to V.E. Job plan / Functional Approach to Value Improvement, Various phases and techniques of the job plan.
Life Cycle Costing for managing the Total Value of a Product, Cash flow diagrams, Concepts in LCC, Present Value concept, Annuity cost concept, Net Present Value, Pay Back period, Internal rate of return on investment (IRR), Continuous discounting, Examples and illustrations.
Creative thinking and creative judgment, False savings, System Reliability, Evaluation Matrix, Assessment of value alternatives, Estimation of weights and efficiencies, Sensitivity analysis, Utility transformation functions, Fast diagramming, Critical path of functions, DARSIRI method of value analysis. Critical review of some industry oriented projects and case studies.