Unit 31: Value Management


Unit 31:

Value Management


Unit code:
A/601/1477

QCF level:
5


Credit value:
15






Aim

This unit aims to develop the skills and knowledge needed to analyse products and parts in order to improve value.

Unit abstract

This unit will provide learners with knowledge of the principles, methodologies and techniques that are used in analysing and selecting parts for improvement. This includes competencies required for value engineering and value analysis.

Learners will develop an understanding of Pareto analysis and how manufactured products can be identified as part families using a range of criteria. They will also consider total cost models and supply chain maps and their use with specific products or processes. Finally, learners will explore and develop their understanding of how to develop alternatives and detailed proposals that will improve the value of a product or process.

Learning outcomes

On successful completion of this unit a learner will:

1       Be able to carry out a Pareto analysis

2       Be able to produce part families using a range of criteria

3       Be able to produce a total cost model and supply chain map for a product or process

4       Be able to produce a detailed proposal from the findings of value management activities.



Unit content

1      Be able to carry out a Pareto analysis

Pareto analysis: 80 – 20 rule; ABC analysis; required information; data on usage (frequency); data on costs eg contribution, profit; annual usage value (AUV); methods of presentation eg bar graphs, histograms, Pareto curve

Criteria: customer schedules eg volume; cost of producing the part; profit for each part (as a percentage); manufacturing lead time; quality eg scrap, non-conformance percentage; process/manufacturing route


2      Be able to produce part families using a range of criteria

Part families: those that can be grouped together by a range of criteria; family definitions eg low cycle and high volume, high cycle time with low volume; use of bill of materials; part numbering systems eg Brisch, Optiz

Criteria: part shape; part size; material used to manufacture the part; manufacturing process; other features eg number of holes, number of shoulders, level of tolerance

3      Be able to produce a total cost model and supply chain map for a product or process

Total cost model: showing costs related to function; identification of value adding activities; identification of non-value adding activities

Supply chain map: showing costs related to function; aligned to Porter’s Value Chain


4      Be able to produce a detailed proposal from the findings of value management activities

Detailed proposal: presenting findings from value management activities; proposals identifying the non-value added activities and indicates alternatives, prioritises and ranks alternatives, including a risk assessment of the alternatives; identifies the most appropriate alternatives; proves costing recommendations for management approval; identifies expected benefits

Value management activities: analysing the function of the product or process; non-value added activities; suggesting alternatives; performance related tools; cost of function calculations; Function Analysis System Technique (FAST) diagramming and value trees; decision making and creativity techniques eg brainstorming



Learning outcomes and assessment criteria




Learning outcomes
Assessment criteria for pass


On successful completion of
The learner can:


this unit a learner will:










LO1 Be able to carry out a Pareto

1.1
carry out a Pareto analysis against at least four criteria


analysis

1.2
describe what information will be required to conduct a









Pareto analysis




1.3
describe the principles and process of Pareto analysis








LO2 Be able to produce part

2.1
produce part families from a given set of parts and a


families using a range of


range of bill of materials


criteria

2.2
describe a part numbering system which would be









helpful for putting parts into families







LO3 Be able to produce a total

3.1
produce a total cost model for a product or process


cost model and supply chain

3.2
produce a supply chain map for a product or process


map for a product or process










3.3
show how costs are related to functions and align these





to Porter’s Value Chain model







LO4 Be able to produce a detailed

4.1
develop and produce a detailed proposal following the


proposal from the findings of


use of value management activities


value management activities

4.2
justify appropriate alternatives produced from the use of









value management activities.










Guidance



Links

This unit is designed to stand alone but has links with Unit 17: Business Improvement Techniques and Unit 20: Quality and Business Improvement.

This unit can be linked with the SEMTA Level 4 National Occupational Standards in Business Improvement Techniques, particularly Unit 17: Applying Value Management (Value Engineering and Value Analysis).

Essential requirements

There are no essential requirements for this unit.


Employer engagement and vocational contexts

Liaison with industry should be encouraged in order to develop a valuable, relevant and alternative resource facility.











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