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Need For The Application Of Value Analysis And Value Engineering In Cost Reduction
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1.9 OPERATIONAL DEFINITION OF TERMS
FUNCTIONAL
VALUE: Functional value as used is simply that which enables an item or
product to fulfill its stated function. It can also be called used
value.
ESTHETIC VALUE: This is simply the measure of value of beauty attached to an item that increases its desirability.
ANALYSIS: This is the detailed study or examination of something in other to understand more about it or what it consists.
PURCHASING:
As used here is an important part of material management, standing
mainly for obtaining the right quality materials from the right source,
in the right quantity, at the right time.
ALTERNATIVE: This is something you can choose or have out of two or more possibilities to achieve the same objective.
EXCHANGE VALUE: This is the cash worth of something in its present form. It is the price, a purchaser offers for an item.
VALUE
ANALYSIS: This is the systematic study of a product or material with a
view to reduce their cost by redesigning or eliminate design features
which add to cost but do not contribute to value.
VALUE ENGINEERING:
Value engineering is the application of value analysis techniques in
the pre-production or product development stage.
RE-DESIGN: This is
the process of designing a product or material again in a different way.
It is an adjustment on a product design by eliminating certain features
of the product.
COST: This is the price paid or required for acquiring, producing or maintaining something measured in money.
PRODUCTION: Production can be defined as the creation or manufacture of goods and services with exchange value.
VALUE: Value is simply the desirability of a thing.
ORGANIZATION: This is the formal meeting of people who come together to achieve a particular goal.
QUALITY:
This is the totality of features and characteristics of a product or a
service that bears on the ability to satisfy a stated need.
PROCURE: It simply means to obtain or acquire.
SPECIFICATION:
This is the description of any object, materials or process in
sufficient detail to enable its manufacture and further identical
reproduction.
ELIMINATE: It simply means to remove or take out.
RAW MATERIALS: This is the material on which further manufacturing process is carried out.
PROFIT: This is the excess of revenue over outlay and expenses in a business enterprise.
DEPARTMENT: This is a specialized division of a large concern, such as a business.
TECHNIQUE: This is a practical method or art applied to a particular skill.
INDUSTRY: Is simply a branch of commercial enterprise concerned with output of a specified product.
COMPONENT: Is a constituent part or aspect of something more complex.
RELIABLE: It simply means able to be trusted, dependable.
FEATURE: This means a prominent or distinctive part.
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ABSRACT - [ Total Page(s): 1 ]This project work was chosen in order to determine the need for the application of value analysis and value Engineering in cost reduction. It will x-ray the gains, benefits and contributions of value analysis and value Engineering in Bottling industries with special reference to Nigerian Bottling Company Owerri. The topic in question will reveal the methods by which value analysis and value engineering techniques can be applied as well as the contribution of other functional departments in the a ... Continue reading---
