Value analysis programmes in connection with the large scale production of two packaged liquid rocket engines are described. At the time of writing, costs in the order of $6.73 million had been removed from the total contract price of $70 million.
The fundamentals of the technique, organizational and motivational approaches and working examples are analysed and the implications reviewed. Value analysis is seen to exhibit no undesirable effects on fringe areas such as quality and reliability. It is concluded that a well structured value analysis programme is a most desirable management tool in carrying out the discipline of cost reduction.
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References
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