Value Analysis, Ergonomics, Just in time

Definition:

Value Analysis (VA) is a systematic method to enhance a product's value by either cutting costs or boosting its functions without compromising quality. It aims to increase customer value while decreasing production/maintenance costs.

Origin:

Developed during World War II (also known as value engineering).

Value Analysis Framework (Key Questions):

1. What is the item?
2. What does it do?
3. What does it cost?
4. What else would do the job?
5. What would the alternative cost be?

Value Analysis Steps:

1. Identify Function: Determine the primary and secondary functions of the product.
2. Evaluate Function: Compare the function's cost and effectiveness ("Does it achieve reliability at the best cost?").
3. Develop Alternatives: Find unnecessary costs and create effective, lower-cost solutions.

Ergonomics

Definition:

Ergonomics (or human engineering) studies the relationship between people and their work. It's about designing systems, products, and environments to ensure safe and efficient human interaction.

Ergonomics in Inventory Management:

Focuses on designing workspaces, tools, and processes to:

• Improve worker safety.
• Increase comfort.
• Enhance efficiency.
• Reduce injury and strain risks.
• Boost productivity and well-being.

Ergonomic Examples:

• Supportive Chair: Chairs designed to support the spine.
• Adjustable Chairs: Chairs with height adjustment.
• Ergonomic Desks: Desks with multiple levels, not just a flat top.
• Ergonomic Workstations: Work areas designed for optimal comfort and reach.
• User-Friendly Devices: Push-button phones, ergonomic mice.

Just-in-Time (JIT)

JIT Concept:

• Materials are produced or procured just before they're needed in the next production step.
• Components are made before subassemblies.
• Subassemblies are made before final assembly.
• Products are assembled just before sale.

Primary Goal:

• Minimize Work-In-Process (WIP) and finished goods inventory.
• Reduce lead times.

Key Benefit:

• Increased responsiveness to market changes, creating a competitive advantage.

Benefits of JIT:

1. Reduced Costs: Lower production costs due to shorter cycle times, less waste, and reduced inventories; elimination of non value added operation.
2. Improved Quality: Continuous quality improvement programs.
3. Design Flexibility: Fast response to engineering changes, enabling quick implementation of alternative designs.
4. Productivity Gains: Improved productivity.
5. Higher Flexibility: Greater flexibility in the production system.
6. Administrative Ease: Simpler and easier administration.