Learning Objectives:

• Define lean systems and their significance in optimizing processes and reducing waste.
• Recognize the eight types of waste in lean systems, including overproduction, waiting, transportation, inventory, motion, defects, overprocessing, and underutilized talent.

• An ideology of maximizing productivity
• Simultaneously minimizing waste within a manufacturing operation
• Reduced lead times, operating costs and improved product quality.

Advantages of Lean Systems:

1. Saves Time and Money
2. Environment friendly
3. Improve customer satisfaction
4. Divide work load
5. Reduce rework, waste
6. Improve quality

PRWhitehouse, CC BY-SA 4.0, via Wikimedia Commons

Solved Example: 9385-01

Lean production is related to:

A. Mass production

B. Batch production

C. Customized production

D. Stock-driven production

Correct Answer: C

Learning Objectives:

• Understand the significance of Value Engineering in optimizing project costs while maintaining or improving functionality.
• Familiarize yourself with the steps and phases of the Value Engineering job plan, which includes Information, Function Analysis, Creativity, Evaluation, Development, and Presentation (IFCEDP).
• Recognize the importance of considering multiple factors, such as cost, quality, and performance.

What is Value?

• Value is the lowest price you must pay to provide a reliable function or service (L. D. Miles)
• “The ratio of Function to Cost”

Value Engineering (VE, or Value Analysis) is a management technique that seeks the best functional balance between cost , reliability and performance of a product, project, process or service.

Value engineering is often done by systematically following a multi-stage job plan. Larry Miles' original system was a six-step procedure which he called the "value analysis job plan."

Solved Example: 9384-01

The term 'value' in value engineering refers to:

A. Total cost of the product

B. Selling price of the product

C. Utility of the product

D. Manufactured cost of the product

Correct Answer: C

Solved Example: 9384-02

The correct sequence of phases in value engineering is:

A. Creative phase, information phase, investigation phase, evaluation phase

B. Information phase, creative phase, investigation phase, evaluation phase

C. Investigation phase, information phase, creative phase, evaluation phase

D. Creative phase, investigation phase, evaluation phase, information phase

Correct Answer: A

Solved Example: 9384-03

In value engineering, important consideration is given to:

A. Customer satisfaction

B. Function concept

C. Profit maximization

D. Cost reduction

Correct Answer: D