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VALUE ENGINEERING

Presented by B.S.Subrahmanian bsstqm@gmail.com


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Value Engineering

Introduction Definition of Value Value Engineering Value Management & Applications Creative Thinking Reasons for Poor Value FAST FAST Techniques VE Job Plan Value Engineering Phases Orientation Phase Information Phase Function Analysis Phase Creative Phase Idea Generation & Brainstorming Phase

Competitive Analysis & Benchmarking Cost estimation Application of DFMA Software Tooling Considerations Evaluation Phase The Team Recommendation Phase Implementation Phase Audit Phase Case Studies & Exercises

Hogwarts School of Improvement Initiatives

Value Engineering

Introduction

The event that triggered the development of VE was the Asbestos Affair, which occurred in 1947 at the General Electric Company, in the U.S. A task force led by Lawrence D. Miles (Jerry Leftow, and Harry Erlicher) was organized to find the best method of improving the value of any given product.
Hogwarts School of Improvement Initiatives

Value Engineering

Introduction

Miles VA Definition
Value Analysis is a disciplined action system, attuned to one specific need: accomplishing the functions that the customer needs and wants... at the lowest cost.

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Value Engineering

Introduction

INDIAN VALUE ENGINEERING SOCIETY INVEST


INVAVE www.invest-in.org

Hogwarts School of Improvement Initiatives

Value Engineering

Introduction

Hogwarts School of Improvement Initiatives

Value Engineering

Introduction

Differentiating Hard and Soft Situations

A very soft problem What can we do about situations such as the Koodangulam ?

A very hard problem How do we repair this flat tyre?

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Value Engineering

Introduction

Hard Problem Situations Clearly defined problem boundary


Design and construct a new bridge Modify an existing product

Note: The What has already been decided. The problem is How to.
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Value Engineering

Introduction

Soft Problem Situations Soft, fuzzy problem-boundaries

Allowing traffic to cross a river, taking into account environmental, heritage, cultural and social issues

The problem is What do we do?

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Value Engineering

Introduction

Traditional Value Analysis and Value Engineering

VA and VE have tended to addresses hard problem situations

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Value Engineering

Introduction

What VE is.
An organised study of Functions and Cost A co-operative effort of several departments A continuing dynamic programme An objective appraisal of practical alternatives A rejection of complacency

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Value Engineering

Introduction

What VE is not.
A sacrifice of quality A crash cost reduction method A one-time gimmick A monopoly of one department A criticism of existing design, process, method or system. A magical tool to reduce cost

Hogwarts School of Improvement Initiatives

Value Engineering

Introduction

When is VE used
Value Engineering is used to determine the best design alternatives for Projects, Processes, Products, or Services Value Engineering is used to reduce cost on existing Projects, Processes, Products, or Services. Value Engineering is used to improve quality, increase reliability and availability, and customer satisfaction . Value Engineering is also used to improve organizational performance. Value Engineering is a powerful tool used to identify problems and develop recommended solutions.
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Value Engineering

Introduction

Why use Value Engineering?


Save Save Build Improve Satisfy Time Money Teamwork Quality Customer

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Value Engineering

Introduction

Conventional VA/VE view of value V=F/C


Value for money = Function Cost ( of resources)
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Value Engineering

Introduction

What is Value The value of an item must not be based on its price but rather on the utility which it yields
Bernoulli D. (1738)

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Value Engineering

Introduction

Hogwarts School of Improvement Initiatives

Value Engineering

Introduction

Hogwarts School of Improvement Initiatives

Value Engineering

Introduction

What is Value

Benefit

Usefulness
(utility or function)

Importance

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Value Engineering

Introduction

What is Value An ascribed attribute or property of something which is based on perceived usefulness, importance and benefit.

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Value Engineering

Introduction

Value for Money

Benefit Usefulness Importance

Rs.

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Value Engineering

Introduction

Value for Resources Used or Exchanged

Resources

Benefit Usefulness Importance

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Value Engineering

Introduction

Key Value Questions

Is it Useful?

Is it beneficial?

Is it important?

Is it worth it?

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Value Engineering

Introduction

Key Value Question

Are these outcomes worth these resources?

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Value Engineering

JOB PLAN

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Value Engineering

JOB PLAN

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Value Engineering

JOB PLAN

Six Step Value Engineering Job Plan


Information Phase Creativity Phase Evaluation Phase Clearly identify the problem(s) to be solved, and gather information on the background, functions and requirements of the product, process, or system. Brainstorm ideas on how to improve the high cost, broken, or inadequately performed key functions. Screen ideas for acceptance, score remaining ideas on a scale and group ideas into categories. Develop design scenarios, and selection criteria. Rate and rank ideas. Plan how to sell ideas to management, identify key recommendations, plan management presentation. Give oral presentation to management, or develop written report. Get management approval for go-ahead, make management plan, make assignments, implement, Initiatives follow-up. Value Engineering

Planning Phase Reporting Phase


Implementation Phase Hogwarts School of Improvement

JOB PLAN

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Value Engineering

JOB PLAN

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Value Engineering

SELECTION PHASE

Some guidelines for selection of projects

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Value Engineering

SELECTION PHASE

Some more guidelines for selection of projects

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Value Engineering

SELECTION PHASE

CEO VE Convenor VE Co-ordinator

VE network

Divisional VE Co-ordinator VE Teams Divisional VE Co-ordinator VE Teams Divisional VE Co-ordinator VE Teams

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Value Engineering

SELECTION PHASE

SELECTION PHASE
1. TRAINING 2. SELECTION OF PROJECTS 3. SELECTION OF APPROPRIATE TEAM

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Value Engineering

SELECTION PHASE

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Value Engineering

SELECTION PHASE

SELECTION OF PROJECTS
Pareto Analysis / ABC analysis Problematic Areas Production Problems Maintenance Problems Vendor Development Problems Design Problems Old designs, specifications or standards Low yield products New projects, Products, Processes and systems
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Potential Savings from VE


No engineering Change Revision Document Revision

SELECTION PHASE

Re-Test/Re-qualification Drawings Released


Net Savings from VE

Tooling Changes

Total Cost of VE Implementation

VE Implementation beyond this point results in a net loss.


Engineering &Production Release

Concept

Design

Production

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Value Engineering

INFORMATION PHASE

INFORMATION PHASE
Collect Data Costs Human Relations Consumption Design Materials

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Value Engineering

INFORMATION PHASE

FUNCTION
Function Analysis and FAST or Function Diagramming is the constant at the heart of the Information Phase of any Value study. How this powerful tool is used may also vary depending upon when the study is being done and the study objective.

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Value Engineering

INFORMATION PHASE

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Value Engineering

INFORMATION PHASE

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Value Engineering

INFORMATION PHASE

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Value Engineering

INFORMATION PHASE

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Value Engineering

INFORMATION PHASE

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Value Engineering

INFORMATION PHASE

Write functions for these items


1. Safety pin 2. A screw 3. A beam 4. Washing machine 5. Lawn mower 6. Door 7. Agni missile 8. Insurance policy 9. Water meter
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Value Engineering

INFORMATION PHASE

FUNCTIONS USE FUNCTIONS


Restrict Movement TIE CLIP

SELL FUNCTIONS
Improve Appearance Enhance Image

Protect Surface

Cement paint Dieting

Improve Finish Improve Aesthetics Attract attention

Control Weight

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Value Engineering

INFORMATION PHASE

BASIC FUNCTIONS

TASK ORIENTED CUSTOMER NEED ORIENTED

BASIS FOR BUYING DECISION

SUPPORT FUNCTIONS

INTAGEABLE SUBJECTIVE BASED ON ATTITUDES AND EMOTIONS.

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Value Engineering

INFORMATION PHASE

SUPPORT FUNCTIONS
ASSURE CONVENIENCE ASSURE DEPENDABILITY SATISFY USER ATTRACT USER

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Value Engineering

INFORMATION PHASE

HIGHER OREDER FUNCTIONS

LOWER OREDER FUNCTIONS DEPENDENT OREDER FUNCTIONS

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Value Engineering

INFORMATION PHASE

What Do We Do With Functions?


Identify functions Type functions and organize their contributions Function Analysis System Technique (FAST) Assign costs to functions - Function Costs Assign attitudes to functions Function Attitudes Evaluate functions to find functions with high cost and/or poor performance - Value mismatch Create "other ways" to perform value mismatch functions Evaluate function ideas for the best solution

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Value Engineering

INFORMATION PHASE

Organizing Functions
Functions are either primary or secondary. Primary Functions The basic or required reason for the existence of an item or product and answer the question :"What must it do? Secondary Functions Support functions that answer the question:"What else does it do? Critical Functions The basic and the required secondary functions are necessary for the workability of the item. Without these, the basic function cannot be performed (even to a severely reduced degree). Remaining Functions Other secondary functions either support critical functions, are mandated by specification, or are good design practice incorporated into the item.

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Value Engineering

INFORMATION PHASE

Hogwarts School of Improvement Initiatives

Value Engineering

INFORMATION PHASE

Hogwarts School of Improvement Initiatives

Value Engineering

INFORMATION PHASE

Hogwarts School of Improvement Initiatives

Value Engineering

INFORMATION PHASE

Hogwarts School of Improvement Initiatives

Value Engineering

INFORMATION PHASE

Hogwarts School of Improvement Initiatives

Value Engineering

INFORMATION PHASE

Concepts of Value - Desirable


Ideal Good Acceptable Passable

Value =

Function Cost

Function Cost

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Value Engineering

INFORMATION PHASE

Concepts of Value - Undesirable

Undesirable but Passable (cheapening the product) Function Cost Function Cost

Value =

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Value Engineering

INFORMATION PHASE

Hogwarts School of Improvement Initiatives

Value Engineering

INFORMATION PHASE

Hogwarts School of Improvement Initiatives

Value Engineering

INFORMATION PHASE

Hogwarts School of Improvement Initiatives

Value Engineering

INFORMATION PHASE

Hogwarts School of Improvement Initiatives

Value Engineering

INFORMATION PHASE

Hogwarts School of Improvement Initiatives

Value Engineering

INFORMATION PHASE

Hogwarts School of Improvement Initiatives

Value Engineering

INFORMATION PHASE

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Value Engineering

INFORMATION PHASE

Function Analysis System Technique (FAST)

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Value Engineering

INFORMATION PHASE

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Value Engineering

INFORMATION PHASE

Hogwarts School of Improvement Initiatives

Value Engineering

INFORMATION PHASE

Hogwarts School of Improvement Initiatives

Value Engineering

INFORMATION PHASE

Hogwarts School of Improvement Initiatives

Value Engineering

INFORMATION PHASE

Hogwarts School of Improvement Initiatives

Value Engineering

FAST Example - Overhead Projector


HOW?

F.A.S.T MODEL OVERHEAD PROJECTOR


FACILITATE PORTABILITY
OBJECTIVES OR SPECIFICATIONS

WHY?

ALLOW SAFETY OUTPUT (concept) PROJECT IMAGE GENERATE LIGHT CONVERT ENERGY GENERATE HEAT RECEIVE CURRENT INPUT

W H E N

CONVEY Information

TRANSMIT CURRENT

FOCUS IMAGE SUPPORT IMAGE

(concept)

DISSIPATE HEAT

AMPLIFY IMAGE

GENERATE NOISE

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Value Engineering

INFORMATION PHASE

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Value Engineering

INFORMATION PHASE

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Value Engineering

INFORMATION PHASE

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Value Engineering

EXERCISE ON FAST

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Value Engineering

TOTAL COST DIRECT MATERIAL DIRECT LABOUR

INFORMATION PHASE

OVERHEAD HANDLING INSPECTION STORES MAINTENANCE ADMIN TOTAL COST SAFETY ENVIRONMENT

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Value Engineering

INFORMATION PHASE

TOTAL LIFE CYCLE COST

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Value Engineering

INFORMATION PHASE

TOTAL LIFE CYCLE COST

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Value Engineering

INFORMATION PHASE

TOTAL LIFE CYCLE COST

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Value Engineering

INFORMATION PHASE

SIMPLE PAY BACK PERIOD

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Value Engineering

INFORMATION PHASE

TIME VALUE FOR MONEY NET PRESENT VALUE

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Value Engineering

INFORMATION PHASE

RETURN ON INVESTMENT

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Value Engineering

SPECULATION PHASE

SPECULATION / CREATIVITY PHASE

WHAT ELSE WILL SATISFY THE SAME NEED / FUNCTION ?

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Value Engineering

SPECULATION PHASE

CREATIVITY DEFINITION
Creativity is the art of bringing something new into existence. It has the art of making, inventing, or producing something new and different.
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Value Engineering

SPECULATION PHASE

CREATIVITY & INNOVATION RELATIONSHIP


You must blast before you can create. Blow apart the Misconceptions, skeptics, and naysayers. Blow-up the preconceived ideas and common theories of how things should be done. Rather, focus on possibilities.
J. R. Wixson - 2004

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SPECULATION PHASE

IMAGINATION

Imagination is more important than knowledge, for knowledge is limited, while imagination embraces the entire world.
Albert Einstein

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SPECULATION PHASE

Thought for the day:


When you always do what you have always done - you always get what you have always gotten.
Socrates

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SPECULATION PHASE

IDEA vs. SOLUTION A solution requires justification & validation, and idea needs no justification. A solution is an end point, an idea is just the beginning. A solution is solid and self supporting, an idea is tender and must be built upon.
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DONT KILL IDEAS WITH ROADBLOCKS!!


Value Engineering

SPECULATION PHASE

Creative and Judicial Ability Development

Predominately creative

Predominately judicial

12 56

17 24

Age

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SPECULATION PHASE

To Creative Thinking and Action


FEAR of making mistakes FEAR of the risk of pioneering Latching onto the first idea Desire to conform . . . To belong Belief that fantasizing . . . (imagining) . . . Is a waste of time, and childish Difficulty in defining the problem Inflexibility The erroneous belief, I am not a creative person

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Value Engineering

SPECULATION PHASE

CREATIVITY TECHNIQUES

BRAIN STORMING MORPHOLOGICAL ANALYSIS LATERAL THINKING

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SPECULATION PHASE

Rules for Brainstorming


Generate a large number of ideas quantity, not quality. Free-wheeling is encouraged - Listen and improve on the ideas of others. Dont criticize - No evaluation of ideas Encourage everyone to participate Record all ideas presented Time to let ideas incubate should be allowed. Select an appropriate meeting place
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Value Engineering

SPECULATION PHASE

Generating creative solutions


Brain in two halves: Left half of the brain Logic, Reasoning, Analysis, Numeracy and Language Right half of the brain Rhythm, Music, Colour, Images and shape recognition.

Creative thinking is shutting down left part of the brain and using more of the right part, think in images instead of words and systems.
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SPECULATION PHASE

Morphology analysis.
Break the process down to the elements or attributes of which it is made up. Let us say we want to develop a better way to toast bread.

The attributes might be Power, Capacity, Speed, Method

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Value Engineering

SPECULATION PHASE

Morphology analysis.
Attribute Form

Power

Electricity

Gas

Solar

Capacity

One slice

Two slices

Whole loaf

Speed

Leisurely

Instant

Fast

Method

Direct

Reflected

Convection

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Value Engineering

SPECULATION PHASE

Morphology analysis.
1. Assemble a list of four or more nouns which are relevant to the issue on hand. 2. Using random word generating, but limiting to adjectives, generate four more qualities which thing can have. Make them completely random. 3. Build a matrix with nouns along the top and the adjectives down the side. 4. At each intersection, brainstorm the possibilities suggested by the combination of adjectives and nouns.
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SPECULATION PHASE

Lateral Thinking.
Lateral Thinking involves forcing movement away from the current mind set to other possible ways of doing things.

LT can lead to solutions which are not just an improvement, but a huge jump to a completely new approach, which wins hand down on many counts.

Vacuum cleaner of Hubert Cecil Booth


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SPECULATION PHASE

Six Thinking Hats.

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SPECULATION PHASE

Six Thinking Hats.


A WHITE hat - denotes a mode of thinking during which an objective look at data and information is required. Questions. What information do we have? What information do we need to get? During initial problem assessment and definition phase. When assessing and ranking the quality of solutions

A RED hat - denotes the mode of thinking associated with feelings, hunches, and intuition. Intuition, feelings and hunches. No need to justify the feelings. How do I feel about this right now? Red Hat thinking mode can also be used to good effect at times during a problem solving session to break out of the rut that can sometimes occur if participants have been kept in other thinking modes - but particularly White Hat - for extended periods.

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Value Engineering

SPECULATION PHASE

Six Thinking Hats.


A BLACK hat - denotes the mode of thinking associated with caution, judgement, and looking logically at the negative aspects of a problem - often described as the devils advocate mode of thinking. Caution. Judgement. Assessment. Is this true? Will it work? What are the weaknesses? What is wrong with it? During the initial problem definition phase, where we are attempting to identify all of the constraints that exist in and around our problem During a how can I destroy this system? subversion analysis.

A YELLOW hat - denotes the mode of thinking associated with examining the feasibility and benefits of a given situation, and looking logically at the positive aspects. Why is this worth doing? How will it help us? Why can it be done? Why will it work? During assessment of solution options when trying to gauge the relative strengths of the solutions under consideration.
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Value Engineering

SPECULATION PHASE

Six Thinking Hats.


A GREEN hat - denotes the mode of thinking associated with the generation of new ideas, creative and lateral thinking. Different ideas. New Ideas. Suggestions and proposals. What are some possible ways to work this out? What are some other ways to solve the problem.

A BLUE hat - denotes the mode of thinking associated with the overall control and organisation of the thinking processes. Thinking about thinking. What have we done so far? What do we do next? When a problem solving team is getting bogged down in the detail of a particular part of a process, it is often useful for the facilitator to get the rest of the team to shift into Blue Hat thinking mode in order to zoom out of the details and to re-datum or re-orient themselves to see where they are in the overall process.

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Value Engineering

SPECULATION PHASE

Six Thinking Hats.


DEFINE What benefits are we looking to achieve, how will we know when weve got there? (White Hat) What are the constraints? (Black Hat, possibly followed by Yellow) What resources are available? (Yellow Hat, possibly followed by Green) Where is the sore point? (White Hat) What are the functions and attributes contained in the current system? (White Hat to define intended functions, then specifically followed by Black Hat to identify the harmful, insufficient and excessive functions) How mature is the current system (where does it and its sub-systems sit on their current evolutionary S-curves?) (White Hat) (Optional) Brainstorm and Car-Park initial solution thoughts (Red Hat)
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Value Engineering

SPECULATION PHASE

Six Thinking Hats.


SELECT Determine the most appropriate problem solving techniques for the particular problem (White Hat)

SOLVE A variety of options here, depending on which of the TRIZ tools are relevant: (Knowledge) (White Hat) (Contradictions) (White Hat to generate and look up contradictions; Green Hat to translate the generic triggers into specific solutions) (Trends) (Yellow Hat followed by Green) (Subversion Analysis) (Black Hat; probably interspersed with periods of Blue)
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Value Engineering

SPECULATION PHASE

Six Thinking Hats.

EVALUATE Have solutions been generated? If no, then the problem needs to be re-cast (Black Hat, possibly followed by Red, Green, or maybe Blue, probably in that order) If yes, then solutions need to be ranked (Yellow Hat, systematically followed by Black Hat) Deciding where to go next (i.e. around the loop again or to finish) (White Hat, but the facilitator should definitely encourage participants to go into Black Hat mode one more time if possible)

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Value Engineering

SPECULATION PHASE

Six Thinking Hats.


Variants: Different types of customers Different levels of employees Different regulatory bodies

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Value Engineering

SPECULATION PHASE

Other tools that can work with VE


Activity Based Costing (ABC) Cost Function Matrix Failure Modes and Effects Analysis (FMEA) Risk Analysis Tools Other traditional quality tools such as pareto analysis, ishakawa diagrams, scatter diagrams, etc. Function analysis is the key to understanding the system and what it does. Function analysis enables you to analyze the problem from a system perspective.

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Value Engineering

EVALUATION PHASE

Choosing the best solution.


Key Techniques o Functions of quality and acceptance o Options Criteria Matrix o Risk Pay off matrix o Factor Comparison methods. o Matrix diagram o Decision Tree diagram o Fault tree diagram o Cost Benefit analysis.
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Value Engineering

EVALUATION PHASE

Options Criteria matrix.


Options Car Criteria Speed Cost Ease Convenience Timing Risk Call Taxi Train Aeroplane Horse

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Value Engineering

EVALUATION PHASE

Risk Pay off Matrix.


Pay off High Low

High Risk

Do with insurance

Leave alone

Low

Do immediately

Why bother

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Value Engineering

EVALUATION PHASE

Factor comparison method.


Systematic manner of ranking factors or criteria, which are taken one at a time. 1. Identify all factors or criteria that govern or influence the project.
Identity A B C D E F G Safety Durability User acceptability Reliability Comfort Availability Cost Criteria

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Value Engineering

Factor comparison method.


2. Draw evaluation matrix
B A A B C D E F C D E F

EVALUATION PHASE

3. Compare every factor with each of the others, for importance. A factor is pitted against only one other factor at a time. Say A(safety) is compared with B(durability). If safety is more important than durability mark A , below the letter B in the matrix.
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EVALUATION PHASE

Factor comparison method.


4. Decide the relative degree of importance of these two factors using a three point scale.
Relative importance Major difference Medium difference Minor difference No difference Points 3 2 1 0

5. If safety is of major importance than durability, then a score of 3 is added along with A making it A3. 6. Now compare A (safety) with C(acceptability). If these two are of equal importance , then write 0 under C. 7. And so on The matrix may look like this.
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Factor comparison method.


B A A3 B C 0 C2 C D A1 0 D1 D E A2 E1 0 D1 E F A2 B3 C1 D1 E1 F G

EVALUATION PHASE

A2 B2 C2 D2 E2 F2

The evaluation matrix.

8. Add all scores for each factor both row wise and column wise and rearrange them in descending order of their scores. The score in each case becomes the relative weight of the factor.
Identity A B C D E F G Criteria Score 10 5 5 5 4 2 0 Safety Durability User acceptability Reliability Comfort Availability Cost

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EVALUATION PHASE

Matrix diagram.

o Gather a group of people with knowledge of problem o Decide on the criteria to be used in selecting candidate proposals. o Make a matrix of all the criteria in both rows an columns o Group allots the relative importance of each criteria. o Sum the relative importance across the rows to see ranking of the criteria.

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Decision Tree.

EVALUATION PHASE

Is useful when implementation is dependent upon what happens at various stages. Decisions under the control of the decision maker is marked in square. Decisions outside the control of the decision maker is marked in circle. Wherever possible, and required, the cost is also given. Tree is drawn by experienced people using judgement. This is a mixture of subjective and objective methods.
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EVALUATION PHASE

Decision Tree.

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Value Engineering

Decision Tree.

EVALUATION PHASE

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Fault Tree Diagram.


Cause Cause Effect Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause

EVALUATION PHASE

Cause Cause Cause

Cause Cause Cause Cause Cause Cause

Cause

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EVALUATION PHASE

Evaluation Phase - Idea Screening

1 st

GO, NO-GO

CHAMPION 2 nd GROUP STUDY

3 rd

4 th

FORMAL TRADE-OFF STUDY (NGT, PAIRWISE COMPARISON, ETC.) MOCKUP AND PROTO TYPES IF NECESSARY

5 th Hogwarts School of Improvement Initiatives

CUSTOMER ACCEPTANCE

Value Engineering

EVALUATION PHASE

Evaluating Ideas
GO - NO GO

Scratch ideas that hold no interest.


CHAMPION

Who will speak for the ideas and support


them?

GFI

Discuss pro/con and vote.

GFI is team

average. Combine ideas; add new ideas. Record all assumptions when voting.
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EVALUATION PHASE

Evaluating Ideas
Trade Study
Quantify performance characteristics. Select top candidates using NGT, Pair-wise Comparison, etc. Record all assumptions when voting.

Customer Acceptance

Determine & quantify customer acceptance


criteria. Rate surviving ideas against norm & risk. Develop proposal scenarios.

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RATE AND RANK OF ALTERNATIVES ALTERNATIVES CRITERIA WEIGHT 20.3 22.0 6.5 13.0 7.3 12.2 8.1 0.8 9.8 100 $ 5 4 87.8 2 13.0 3 39.0 4 29.3 5 61.0 5 40.7 4 3.3 3 29.3 404.9 1,450.00 0.28 best value $ 327.6 1,711.00 0.19 $ 1 9.8 3 2.4 2 19.5 252.8 1,000.00 0.25 $ 5 40.7 2 1.6 3 2 24.4 3 24.4 3 1 7.3 5 61.0 4 2 26.0 4 29.3 3 4 26.0 2 26.0 4 A 4 101.6 5 109.8 1 6.5 3 81.3 2 43.9 2 B 2 40.7 4 C 3

EVALUATION PHASE
D 5 5 3 13.0 4 39.0 5 29.3 3 36.6 2 32.5 5 2.4 4 29.3 330.9 1,250.00 0.26 $ 39.0 415.4 2,100.00 0.20 4.1 16.3 36.6 36.6 52.0 19.5 E

A. Safety B. Reliability C. Portability D. Machineabilty E. Constructabilty F. Frangability G. Maintainability H. Serviceability I. Ergonomic Compatibility
TOTAL COST Value Index

61.0 87.8

101.6 109.8

Each alternative is scored against how well it satisfies the various criteria. Once the scores are assigned, they are multiplied by the weight of the criteria and summed for a total score. Then, a value Index is calculated by dividing the total score by the implementation cost.

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The Planning Phase Planning

PLANNING/ DEVELOPMENT PHASE

What is recommended? Who has to approve it? What is the implementation plan? Are mockups or prototypes required to verify final decisions? What are the cost, schedule, and deliverables? ROI?
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ACTION PLAN GUIDELINES What needs to be done?

PLANNING/ DEVELOPMENT PHASE

Identify the actions needed to solidify the proposals.

Who should be assigned the action?


Assign a team member. Assign a completion date for the action.

When should the task be completed?


Plan regular team status meetings. Anticipate 4-6 weeks to complete the actions.
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Value Engineering

PLANNING/ DEVELOPMENT PHASE

Force Field Analysis

Enablers

Road Blocks

Current
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Desired
Value Engineering

PLANNING/ DEVELOPMENT PHASE

Implementation Planning

Ideas must be planned and managed to ensure implementation. Proposed actions should be managed like a project with specific end products, defined start and end dates, and funding limits.

Hogwarts School of Improvement Initiatives

Value Engineering

PRESENTATION PHASE

Reporting Phase Reporting


Give oral presentation. Support it with written executive brief. Be clear, concise, and positive. Anticipate roadblocks Use good human relations.

Hogwarts School of Improvement Initiatives

Value Engineering

PLANNING/ DEVELOPMENT PHASE

Plan a course of action.


Key Techniques o Fault tree diagram o Action / validation matrix o Project Decision Programme Chart o Gantt chart o PERT Chart o Other project management software

Hogwarts School of Improvement Initiatives

Value Engineering

Fault Tree Diagram.


Cause Cause Cause Cause Cause Cause Cause Cause

Containment / Permanent Corrective action. (What)

Respon sibility (Who)

Target complet ion (When)

Cause Effect Cause Cause Cause Cause Cause Cause Cause Cause Hogwarts School of Improvement Initiatives Cause Cause Cause

Cause Cause Cause

Value Engineering

Action Validation Matrix.


Action matrix.
S. No Problem Action. (What) Responsi bility (Who) Target complet ion (When) Para meter When

PLANNING/ DEVELOPMENT PHASE

Verification / validation matrix.


Respon Valida Validat sibility tion ion (Who) Plan Actual

Hogwarts School of Improvement Initiatives

Value Engineering

PERT Chart.

PLANNING/ DEVELOPMENT PHASE

A PERT/CPM chart is a directed graph that shows tasks, their durations, and their precedence relationships, and allows estimation of project completion times

Hogwarts School of Improvement Initiatives

Value Engineering

PLANNING/ DEVELOPMENT PHASE

Project Decision Programme Chart.

Hogwarts School of Improvement Initiatives

Value Engineering

Gantt chart.

PLANNING/ DEVELOPMENT PHASE

Hogwarts School of Improvement Initiatives

Value Engineering

Gantt chart.

PLANNING/ DEVELOPMENT PHASE

Hogwarts School of Improvement Initiatives

Value Engineering

IMPLEMENTATION / EVALUATION PHASE

Evaluation of results.

Hogwarts School of Improvement Initiatives

Value Engineering

IMPLEMENTATION / EVALUATION PHASE

Ve Workshop Follow-up Activities Recognize the participants. Publicize the results. Audit the performance of the implemented actions. Close out the project.

Hogwarts School of Improvement Initiatives

Value Engineering

IMPLEMENTATION / EVALUATION PHASE

Evaluation of results.

Hogwarts School of Improvement Initiatives

Value Engineering

IMPLEMENTATION / EVALUATION PHASE

Evaluation of results.

Hogwarts School of Improvement Initiatives

Value Engineering

IMPLEMENTATION / EVALUATION PHASE

Evaluation of results.

Hogwarts School of Improvement Initiatives

Value Engineering

IMPLEMENTATION / EVALUATION PHASE

Formula for Superior Continuous Improvement


3= (CI)

Lean

Six Sigma

Value Engineering

x
Value Engineering

Hogwarts School of Improvement Initiatives

Mapping VE to 6
VA/VE 6

IMPLEMENTATION / EVALUATION PHASE

Value-based decision process Uses functional approach Follows a very structured, organized plan

Information Phase

Define the Problem

Value-based decision process

Creativity Phase

Measure

Uses statistical approach

Evaluation Phase

Analyze
Planning Phase

Follows a very structured, organized plan

Focus on maximum Reporting Phase possible solution based on creativity techniques. Implementation
Phase Hogwarts School of Improvement Initiatives

Improve

Focus on maximum possible solution based on analytical optimization techniques.

Control
Michael Mladjenovic - Intier Automotive Interiors, Toronto, CA

Value Engineering

IMPLEMENTATION / EVALUATION PHASE

Application of 6 Tools
6

Level

5 4 3 2 0% 20% 40% 60% 80% 100%

% Usage
Basic Tools Statistical Tools Design for 6 and Innovation w/VE
Michael Mladjenovic - Intier Automotive Interiors, Toronto, CA

Hogwarts School of Improvement Initiatives

Value Engineering

VE Job Plan with 6

IMPLEMENTATION / EVALUATION PHASE

Hogwarts School of Improvement Initiatives

Michael Mladjenovic - Intier Automotive Interiors, Toronto, CA

Value Engineering

Value Engineering Strengths


VE relies on a rigorous interdisciplinary approach to problem solving. VE uses a systems approach to problem identification and solution. VE is function oriented and promotes a clean-sheet approach that supports innovative solutions. Creativity is a key component to the VE problem solving activities that promotes breakthrough thinking. VE uses a structured job plan that promotes consistency in application and helps assure results. Increased competitive advantage comes from the identification of innovative ways to accomplish key functions at a lower cost with improved quality and reliability.
Hogwarts School of Improvement Initiatives

Value Engineering

VEs Weaknesses
Successful VE results are dependent on the quality of information brought to the VE workshop for evaluation. Many times, VE is used too late in the product development cycle to impact the design, and when changes would be too costly to implement. There are many misunderstandings and biases against VE that have been built up over time due to misuse of the methodology. It cheapens the product without improving it. Im an engineer. We do VE all the time. VE is only used for cost reduction.

Hogwarts School of Improvement Initiatives

Value Engineering

Hogwarts School of Improvement Initiatives

Value Engineering