do you mean by `Make or Buy Decisions?
ü Make or
buy decision is a determination whether to produce a component part internally or to buy it from an outside supplier.
Organization should evaluate the costs and benefits of manufacturing a product
or product component against purchasing it and then select the alternative
which results in the lower cost.
13. What are
the different approaches followed in make or buy decision?
following are the approaches followed in make or buy decision.
14. What is
mean by value analysis/value engineering?
analysis is a special type of cost reduction technique.
critically investigates and analyses the different aspects of materials,
design, cost and production of each and every component of the product in
produce it economically without decreasing its utility, function or
15. What do
you mean by value of a product?
Value differs from both price and cost in the sense that it is
the cost proportionate to the function. We can express value mathematically as
Value =function or utility/ cost 16. Explain
Function specifies the purpose of the product or
what the product does, what is its utility etc.
What are the different types of values?
ü Use value
What are the various functions of a product?
can be classified into the following three categories:
Write any four objectives of value analysis.
the cost of the product
ü Use (new)
cheaper and better materials
and improve product design so as to make it acceptable to consumer
List any four advantage of value engineering.
engineering/analysis identifies and reduces the product cost.
modifies and improve the product design
increases the performance/utility of the product by economical means.
ü It helps
to generate new ideas.