Value Engineering VA - VE

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

Hogwarts School of Improvement Initiatives
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
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.
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.
Value Engineering
Introduction
INDIAN VALUE ENGINEERING SOCIETY INVEST

INVAVE www.invest-in.org
Value Engineering
Introduction
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?
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.
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?
Value Engineering
Introduction
Traditional Value Analysis and Value Engineering
VA and VE have tended to addresses hard problem situations
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
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
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.
Value Engineering
Introduction
Why use Value Engineering?

Save Save Build Improve Satisfy Time Money Teamwork Quality Customer
Value Engineering
Introduction
Conventional VA/VE view of value V=F/C

Value for money = Function Cost ( of resources)
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)
Value Engineering
Introduction
Value Engineering
Introduction
Value Engineering
Introduction
What is Value
Benefit
Usefulness
(utility or function)
Importance
Value Engineering
Introduction
What is Value An ascribed attribute or property of something which is based on perceived usefulness, importance and benefit.
Value Engineering
Introduction
Value for Money
Benefit Usefulness Importance
Rs.
Value Engineering
Introduction
Value for Resources Used or Exchanged
Resources
Benefit Usefulness Importance
Value Engineering
Introduction
Key Value Questions
Is it Useful?
Is it beneficial?
Is it important?
Is it worth it?
Value Engineering
Introduction
Key Value Question
Are these outcomes worth these resources?
Value Engineering
JOB PLAN
Value Engineering
JOB PLAN
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
Value Engineering
JOB PLAN
Value Engineering
SELECTION PHASE
Some guidelines for selection of projects
Value Engineering
SELECTION PHASE
Some more guidelines for selection of projects
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
Value Engineering
SELECTION PHASE
SELECTION PHASE
1. TRAINING 2. SELECTION OF PROJECTS 3. SELECTION OF APPROPRIATE TEAM
Value Engineering
SELECTION PHASE
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
Value Engineering
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
Value Engineering
INFORMATION PHASE
INFORMATION PHASE
Collect Data Costs Human Relations Consumption Design Materials
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.
Value Engineering
INFORMATION PHASE
Value Engineering
INFORMATION PHASE
Value Engineering
INFORMATION PHASE
Value Engineering
INFORMATION PHASE
Value Engineering
INFORMATION PHASE
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
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
Value Engineering
INFORMATION PHASE
BASIC FUNCTIONS
TASK ORIENTED CUSTOMER NEED ORIENTED
BASIS FOR BUYING DECISION
SUPPORT FUNCTIONS
INTAGEABLE SUBJECTIVE BASED ON ATTITUDES AND EMOTIONS.
Value Engineering
INFORMATION PHASE
SUPPORT FUNCTIONS
ASSURE CONVENIENCE ASSURE DEPENDABILITY SATISFY USER ATTRACT USER
Value Engineering
INFORMATION PHASE
HIGHER OREDER FUNCTIONS
LOWER OREDER FUNCTIONS DEPENDENT OREDER FUNCTIONS
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
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.
Value Engineering
INFORMATION PHASE
Value Engineering
INFORMATION PHASE
Value Engineering
INFORMATION PHASE
Value Engineering
INFORMATION PHASE
Value Engineering
INFORMATION PHASE
Value Engineering
INFORMATION PHASE
Concepts of Value - Desirable

Ideal Good Acceptable Passable
Value =
Function Cost
Function Cost
Value Engineering
INFORMATION PHASE
Concepts of Value - Undesirable
Undesirable but Passable (cheapening the product) Function Cost Function Cost
Value =
Value Engineering
INFORMATION PHASE
Value Engineering
INFORMATION PHASE
Value Engineering
INFORMATION PHASE
Value Engineering
INFORMATION PHASE
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INFORMATION PHASE
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INFORMATION PHASE
Value Engineering
INFORMATION PHASE
Value Engineering
INFORMATION PHASE
Function Analysis System Technique (FAST)
Value Engineering
INFORMATION PHASE
Value Engineering
INFORMATION PHASE
Value Engineering
INFORMATION PHASE
Value Engineering
INFORMATION PHASE
Value Engineering
INFORMATION PHASE
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
Value Engineering
INFORMATION PHASE
Value Engineering
INFORMATION PHASE
Value Engineering
INFORMATION PHASE
Value Engineering
EXERCISE ON FAST
Value Engineering
TOTAL COST DIRECT MATERIAL DIRECT LABOUR
INFORMATION PHASE
OVERHEAD HANDLING INSPECTION STORES MAINTENANCE ADMIN TOTAL COST SAFETY ENVIRONMENT
Value Engineering
INFORMATION PHASE
TOTAL LIFE CYCLE COST
Value Engineering
INFORMATION PHASE
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INFORMATION PHASE
Value Engineering
INFORMATION PHASE
SIMPLE PAY BACK PERIOD
Value Engineering
INFORMATION PHASE
TIME VALUE FOR MONEY NET PRESENT VALUE
Value Engineering
INFORMATION PHASE
RETURN ON INVESTMENT
Value Engineering
SPECULATION PHASE
SPECULATION / CREATIVITY PHASE
WHAT ELSE WILL SATISFY THE SAME NEED / FUNCTION ?
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.
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
Value Engineering
SPECULATION PHASE
IMAGINATION
Imagination is more important than knowledge, for knowledge is limited, while imagination embraces the entire world.
Albert Einstein
Value Engineering
SPECULATION PHASE
Thought for the day:

When you always do what you have always done - you always get what you have always gotten.
Socrates
Value Engineering
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.
DONT KILL IDEAS WITH ROADBLOCKS!!

Value Engineering
SPECULATION PHASE
Creative and Judicial Ability Development
Predominately creative
Predominately judicial
12 56
17 24
Age
Value Engineering
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
Value Engineering
SPECULATION PHASE
CREATIVITY TECHNIQUES
BRAIN STORMING MORPHOLOGICAL ANALYSIS LATERAL THINKING
Value Engineering
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
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.
Value Engineering
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
Value Engineering
SPECULATION PHASE
Attribute Form
Power
Electricity
Gas
Solar
Capacity
One slice
Two slices
Whole loaf
Speed
Leisurely
Instant
Fast
Method
Direct
Reflected
Convection
Value Engineering
SPECULATION PHASE
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.
Value Engineering
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

Value Engineering
SPECULATION PHASE
Six Thinking Hats.
Value Engineering
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.
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.
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.
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)
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)
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)
Value Engineering
SPECULATION PHASE
Six Thinking Hats.

Variants: Different types of customers Different levels of employees Different regulatory bodies
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.
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.
Value Engineering
EVALUATION PHASE
Options Criteria matrix.

Options Car Criteria Speed Cost Ease Convenience Timing Risk Call Taxi Train Aeroplane Horse
Value Engineering
EVALUATION PHASE
Risk Pay off Matrix.

Pay off High Low
High Risk
Do with insurance
Leave alone
Low
Do immediately
Why bother
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
Value Engineering

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.
Value Engineering
EVALUATION PHASE

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.
Value Engineering

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
Value Engineering
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.
Value Engineering
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.
Value Engineering
EVALUATION PHASE
Decision Tree.
Value Engineering
Decision Tree.
EVALUATION PHASE
Value Engineering
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
Value Engineering
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.
Value Engineering
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.
Value Engineering
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.
Value Engineering
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?
Value Engineering
ACTION PLAN GUIDELINES What needs to be done?
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.
Value Engineering
Force Field Analysis
Enablers
Road Blocks
Current
Desired
Value Engineering
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.
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.
Value Engineering
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
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
Verification / validation matrix.

Respon Valida Validat sibility tion ion (Who) Plan Actual
Value Engineering
PERT Chart.
A PERT/CPM chart is a directed graph that shows tasks, their durations, and their precedence relationships, and allows estimation of project completion times
Value Engineering
Project Decision Programme Chart.
Value Engineering
Gantt chart.
Value Engineering
Gantt chart.
Value Engineering
IMPLEMENTATION / EVALUATION PHASE
Evaluation of results.
Value Engineering
Ve Workshop Follow-up Activities Recognize the participants. Publicize the results. Audit the performance of the implemented actions. Close out the project.
Value Engineering
Value Engineering
Value Engineering
Value Engineering
Formula for Superior Continuous Improvement

3= (CI)
Lean
Six Sigma
Value Engineering
x
Value Engineering
Mapping VE to 6
VA/VE 6
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
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
Value Engineering
VE Job Plan with 6
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.
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.
Value Engineering
Value Engineering

Value Engineering VA - VE

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VALUE ENGINEERING

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

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

INDIAN VALUE ENGINEERING SOCIETY INVEST

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Differentiating Hard and Soft Situations

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

Hogwarts School of Improvement Initiatives

Hard Problem Situations Clearly defined problem boundary

Soft Problem Situations Soft, fuzzy problem-boundaries

The problem is What do we do?

Hogwarts School of Improvement Initiatives

Traditional Value Analysis and Value Engineering

VA and VE have tended to addresses hard problem situations

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Why use Value Engineering?

Hogwarts School of Improvement Initiatives

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

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Value for Money

Benefit Usefulness Importance

Hogwarts School of Improvement Initiatives

Value for Resources Used or Exchanged

Benefit Usefulness Importance

Hogwarts School of Improvement Initiatives

Key Value Questions

Hogwarts School of Improvement Initiatives

Key Value Question

Are these outcomes worth these resources?

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Six Step Value Engineering Job Plan

Planning Phase Reporting Phase

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Some guidelines for selection of projects

Hogwarts School of Improvement Initiatives

Some more guidelines for selection of projects

Hogwarts School of Improvement Initiatives

CEO VE Convenor VE Co-ordinator

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

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Potential Savings from VE

Re-Test/Re-qualification Drawings Released

Total Cost of VE Implementation

VE Implementation beyond this point results in a net loss.

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives