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A Modeling and Simulation Method for Preliminary Design of an Electro-Variable Displacement Pump
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An improved effective cost review process for value engineering.

D S Joo1, J I Park1

  • 1Department of Industrial Engineering, Ajou University, San 5, Woncheon-dong, Yeongtong-gu, Suwon 443-749, Republic of Korea.

Thescientificworldjournal
|January 13, 2015
PubMed
Summary
This summary is machine-generated.

Second-look value engineering (VE) helps reduce production costs when targets are missed. A new cost review process, including checklists and specification reviews, systematically generates effective cost-cutting ideas from VE experts.

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Area of Science:

  • Engineering Management
  • Industrial Engineering
  • Operations Management

Background:

  • Second-look value engineering (VE) aims to reduce product costs during production when targets are unmet.
  • Existing VE approaches often yield limited cost-cutting alternatives during production, with outcomes dependent on participant experience.
  • VE experts consistently generate valuable cost-saving ideas.

Purpose of the Study:

  • To investigate past second-look VE cases and expert thinking processes.
  • To propose a systematic cost review process for generating cost-cutting ideas.
  • To evaluate the feasibility and effectiveness of the proposed process.

Main Methods:

  • Analysis of historical second-look VE cases.
  • Examination of VE expert thought processes.
  • Development and implementation of a cost review process featuring an idea checklist and specification review.
  • Pilot study integrating the process into a VE training course.

Main Results:

  • The proposed cost review process was found to be feasible when integrated into VE training.
  • The cost review process effectively generates ideas for subsequent analysis.
  • The systematic approach enhances the identification of cost-saving opportunities.

Conclusions:

  • A structured cost review process can systematically enhance the generation of cost-saving ideas in second-look VE.
  • The proposed process, incorporating an idea checklist and specification review, is effective and feasible.
  • This approach can improve the outcomes of VE, particularly when target costs are not met during production.