Inventory Control free essay sample

Interdisciplinary teams of four or five individuals are selected from all key departments such as marketing, design, purchasing, cost accounting, research, quality, packaging, safety, maintenance, and manufacturing. The methodology of value analysis is exposed to the members by an expert in a workshop for a period of three or four days. Each team, later, selects and works on a specific project and finally prepares a report. The value engineering study also may require the aid and advice of specialists in various areas as consultants. In case of large industries, a separate department headed by a senior executive is formed to devote their time for value analysis studies. These studies involve people at two levels. The first level consist of senior managers to decide broad policies, such as accepting proposals, procedures, budgets and accepting team recommendations. The second level consists of operative executives to carry out value analysis studies. The people working in value engineering department should have self-confidence, patience, loyalty, curiosity, creativity and good human relations. We will write a custom essay sample on Inventory Control or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page It is necessary that the members of the specific purpose of cost reduction. Some organization feel, the inclusion of representatives of consumers and suppliers in the team would add a further dimension to value improvement. VALUE ANALYSIS APPLICATIONS Several organizations in public, private, industrial service, large and small sectors have used value analysis and are making sizeable savings every year. It brings the much needed technique of plain common sense into the operations, by bringing out on a voluntary basis, the best talent in people. It uses a confidence building and creative process, that results in the generation of valuable ideas by tapping the creative human power. It makes employees cost conscious and promotes team work. Value analysis studies emphasize on total system concepts and the studies should be carried out keeping the interests of producers, consumers, employees, traders and industries have been reported in a large number of articles in different stages and some are mentioned below: The value analysis team in one steel plant in India found that many of the rigid material and process specifications in some of the intermediate stages were not required, for the tasks for which the steel products are ultimately expected to perform. This has allowed the organization to reduce some were not required, for the tasks for which the steel products are ultimately expected to perform. This has allowed the organization to reduce some of the required processing of various steel items to offset the physical overdesign. The electrical engineering industry has substituted the indigenously available aluminium instead of imported copper, a major breakthrough resulting in substantial savings. The DGSD a central buying organization catering for the needs of defence, railways and P T which buys above Rs 3000 crores per year, has through value analysis saved substantially on just one supplier of inspection lamps. In one engineering firm, value analysis was applied at the design stage of the machines and it was found that a spring loaded stripper arm can do the same function by remaining stationary. This resulted in considerable reduction in maintenance cost. Value analysis has been practiced by many firms as a policy for import substitution. In the packaging of consumer goods like tooth paste, instant coffee, soap, cigarettes, biscuits, etc, value analysis techniques have been profitably used to bring about economy in packing. Thus value analysis helps to maximize the conservation of scarce material resources in the country and helps to achieve cost reduction.