VALUE ENGINEERING
Presented by B.S.Subrahmanian
[email protected] Hogwarts School of Improvement Initiatives
Value Engineering
• •· •· •· •· •· •· •· •· •· •· •· •· •· •·
Introduction Definition of Value Value Engineering Value Management & Applications Creative Thinking Reasons for Poor Value F AST F AST Techniques VE Job Plan Value Engineering Phases Orientation Phase Information Phase Function Analysis Phase Creative Phase Idea Generation & Brainstorming Phase
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•· •· •· •· •· •· •· •· •· •·
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 w as 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 (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
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Value Engineering
Introduction
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Value Engineering
Introduction
Differentiating “Hard” and “Soft” Situations
A very “soft” problem What can we do about situations such as the Koodangulam ?
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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”. Hogwarts School of Improvement Initiatives
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
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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
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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
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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. Hogwarts School of Improvement Initiatives
Value Engineering
Introduction
Why use Value Engineering? Save Save Build Improve
Time Money Teamwork Quality
Satisfy
Customer
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Value Engineering
Introduction
Conventional VA/VE view of value V=F/C Value for money = Function Cost ( of resources) Hogwarts School of Improvement Initiatives
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
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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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Introduction
Value for Money
Benefit Usefulness
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Importance
Rs.
Value Engineering
Introduction
Value for Resources Used or Exchanged
Benefit Usefulness
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Importance
R e s o u r c e s
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.
Planning Phase
Plan
how to sell ideas to management, identify key recommendations, plan management presentation.
Reporting Phase
Give
oral presentation to management, or develop written report.
Get
management approval for go-ahead, make Implementation management plan, make assignments, implement, Phase Hogwarts School of Improvement Initiatives follow-up. Value Engineering
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 network
VE Convenor VE Co-ordinator 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 PR 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 Hogwarts School of Improvement Initiatives
Value Engineering
SELECTION PHASE
Potential Savings from VE No engineering Change Revision
Document Revision
Re-Test/Re-qualification Drawings Released
Tooling Changes
Net Savings from VE
Total Cost of VE Implementation
VE Implementation beyond this point results in a net loss.
Concept
Design
Engineering &Production Release
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Production
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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INFORMATION PHASE
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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 Hogwarts School of Improvement Initiatives
Value Engineering
INFORMATION PHASE
FUNCTIONS USE FUNCTIONS Restrict Movement
SELL FUNCTIONS TIE CLIP
Improve Appearance Enhance Image
Protect Surface
Cement paint
Improve Finish
Dieting
Attract attention
Control Weight
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Improve Aesthetics
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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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
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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
Concepts of Value - Desirable Ideal
Value =
Good
Function Cost
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Passable
Acceptable
Function Cost
Value Engineering
INFORMATION PHASE
Concepts of Value - Undesirable
Undesirable but Passable (cheapening the product)
Value =
Function Cost
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Function Cost
Value Engineering
INFORMATION PHASE
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Value Engineering
INFORMATION PHASE
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Value Engineering
INFORMATION PHASE
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INFORMATION PHASE
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INFORMATION PHASE
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Value Engineering
INFORMATION PHASE
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INFORMATION PHASE
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INFORMATION PHASE
Function Analysis System Technique (FAST)
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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
Hogwarts School of Improvement Initiatives
Value Engineering
FAST Example - Overhead Projector HOW?
WHY?
F.A.S.T MODEL OVERHEAD PROJECTOR FACILITATE PORTABILITY OBJECTIVES OR SPECIFICATIONS
ALLOW SAFETY OUTPUT
W H E N
CONVEY Information
INPUT
(concept )
PROJECT IMAGE
FOCUS IMAGE SUPPORT IMAGE
AMPLIFY IMAGE
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GENERATE LIGHT
(concept)
CONVERT ENERGY
RECEIVE CURRENT
TRANSMIT CURRENT
GENERATE HEAT
DISSIPATE HEAT
GENERATE NOISE
Value Engineering
INFORMATION PHASE
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Value Engineering
INFORMATION PHASE
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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. Hogwarts School of Improvement Initiatives
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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Value Engineering
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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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
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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.
DON’T KILL IDEAS WITH ROADBLOCKS!!
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Value Engineering
SPECULATION PHASE
Creative and Judicial Ability Development
Predominately creative
Predominately judicial
0
12 56
17 24
Age
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Value Engineering
SPECULATION PHASE
B
L
O
C
K
S
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. Don’t 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 Hogwarts School of Improvement Initiatives
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. Hogwarts School of Improvement Initiatives
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
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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. Hogwarts School of Improvement Initiatives
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 Hogwarts School of Improvement Initiatives
Value Engineering
SPECULATION PHASE
Six Thinking Hats.
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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.
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Value Engineering
SPECULATION PHASE
Six Thinking Hats. A BLACK BLACK hat hat - denotes denotes the mode of think thinking ing associ associated ated with with caution, judgement, and looking logically at the negative aspects of a probl problem em - often often des descri cribed bed as the the ‘dev ‘devil’ il’ss advo advoca cate’ te’ 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 YELLOW hat hat - denotes denotes the mode of think thinking ing associ associated ated with 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. Hogwarts School of Improvement Initiatives
Value Engineering
SPECULATION PHASE
Six Thinking Hats. A GREEN hat - denotes denotes the mode mode of thinkin thinkingg associate associated d with the generati generation on of new ideas ideas,, creative creative and ‘latera ‘lateral’l’ thinking 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 BLUE hat - denotes denotes the mode of of thinkin thinkingg associa associated ted with 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 particular part of a process, it is often useful for the facilitator to get the rest rest of the team to shift shift into Blue Blue Hat thinking thinking mode mode in order to zoom out of the details and to re-datum re-datum or re-orient 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 we’ve 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 (Optional)) Brainstorm Brainstorm and ‘Car-Park’ ‘Car-Park’ initial initial solution solution thoughts thoughts (Red Hat) Hogwarts School of Improvement Initiatives
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) Hogwarts School of Improvement Initiatives
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. Hogwarts School of Improvement Initiatives
Value Engineering
EVALUATION PHASE
Options Criteria matrix. Options Car Criteria
Call Taxi
Train
Aeroplane
Horse
Speed Cost Ease Convenience Timing Risk
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Value Engineering
EVALUATION PHASE
Risk Pay off Matrix. Pay off High
High
Do with insurance
Low
Leave alone
Risk Low Do immediately Hogwarts School of Improvement Initiatives
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
Criteria
A
Safety
B
Durability
C
User acceptability
D
Reliability
E
Comfort
F
Availability
G
Cost
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Value Engineering
EVALUATION PHASE
Factor comparison method. 2. Draw evaluation matrix B A
C
D
E
F
G
A B C D E F
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. Hogwarts School of Improvement Initiatives
Value Engineering
EVALUATION PHASE
Factor comparison method. 4. Decide the relative degree of importance of these two factors using a three point scale. Relative importance
Points
Major difference
3
Medium difference
2
Minor difference
1
No difference
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. Hogwarts School of Improvement Initiatives
Value Engineering
EVALUATION PHASE
Factor comparison method. A
B
C
D
E
F
G
A3
0
A1
A2
A2
A2
B
C2
0
E1
B3
B2
C
D1
0
C1
C2
D
D1
D1
D2
E
E1
E2
F
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 Criteria Score A
Safety
10
B
Durability
5
C
User acceptability
5
D
Reliability
5
E
Comfort
4
F
Availability
2
G
Cost
0
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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.
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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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Value Engineering
EVALUATION PHASE
Decision Tree.
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Value Engineering
Decision Tree.
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EVALUATION PHASE
Value Engineering
Fault Tree Diagram. Cause
EVALUATION PHASE
Cause Cause Cause
Cause Cause Cause
Cause Cause Cause
Cause Cause Cause
Cause Effect
Cause Cause
Cause
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Cause Cause Cause
Cause Cause Cause
Value Engineering
EVALUATION PHASE
Evaluation Phase - Idea Screening
GO, NO-GO
1 st
CHAMPION 2 nd GROUP STUDY
3 rd
4 th
5 th
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FORMAL TRADE-OFF STUDY (NGT, PAIRWISE COMPARISON, ETC.) MOCKUP AND PROTO TYPES IF NECESSARY
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. Hogwarts School of Improvement Initiatives
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.
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Value Engineering
RATE AND RANK OF ALTERNATIVES
EVALUATION PHASE
ALTERNATIVES CRITERIA
WEIGHT
A
A. Safety
20.3
5
B. Reliability
22.0
4
C. Portability
6.5
D. Machineabilty E. Constructabilty F. Frangability G. Maintainability H. Serviceability
7.3
4
12.2
5
7.3 2 24.4
I. Ergonomic Compatibility
9.8
T OT AL
100
404.9
3
32.5
16.3
3
5 2.4
4.1
3
2 19.5
327.6
36.6 2
1.6
9.8
36.6
36.6
24.4
2.4
29.3
5
4
2
1
52.0
29.3
61.0
40.7
3.3
4
3
3
3
3
29.3
109.8 19.5
39.0 4
5
5
4
3
4
29.3 61.0
13.0
26.0
101.6
3
2
2
5
87.8
6.5
26.0 1
5
4
1
2 39.0
5
61.0
43.9
26.0
40.7 0.8
2
4
E
3 40.7
109.8
13.0
D
2 81.3
5
2 3
C
4 101.6 87.8
13.0
8.1
B
4 29.3
252.8
39.0
330.9
COST
$
1,450.00
$
1,711.00
$
1,000.00
$
1,250.00
Value Index
0.28
0.19
0.25
0.26
415.4 $
2,100.00 0.20
best value
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 d ividing the total score by the implementation cost.
Hogwarts School of Improvement Initiatives
Value Engineering
The Planning Phase
PLANNING/ DEVELOPMENT PHASE
• Planning – 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? Hogwarts School of Improvement Initiatives
Value Engineering
PLANNING/ DEVELOPMENT PHASE
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. Hogwarts School of Improvement Initiatives
Value Engineering
PLANNING/ DEVELOPMENT PHASE
Force Field Analysis
Road
Enablers
Blocks
Current Hogwarts School of Improvement Initiatives
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
Containment / Permanent Corrective action.
Respon sibility (Who)
Target complet ion (When)
(What)
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause Effect
Cause
Cause Cause
Cause Cause
Hogwarts School of Improvement Initiatives
Cause Cause Cause
Value Engineering
PLANNING/ DEVELOPMENT PHASE
Action Validation Matrix. Action matrix. S. No
Problem
Action. (What)
Verification / validation matrix. Responsi bility (Who)
Target complet ion
Para meter
When
Respon sibility
Valida tion
Validat ion
(Who)
Plan
Actual
(When)
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.
Hogwarts School of Improvement Initiatives
PLANNING/ DEVELOPMENT PHASE
Value Engineering
Gantt chart.
Hogwarts School of Improvement Initiatives
PLANNING/ DEVELOPMENT PHASE
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
x
Value Engineering
Hogwarts School of Improvement Initiatives
x Value Engineering
IMPLEMENTATION / EVALUATION PHASE
Mapping VE to 6 VA/VE Value-based
decision process Uses
functional approach
Follows
a very structured, organized plan
Information Phase
Creativity Phase
6σ
Define the Problem
Measure
Evaluation Phase
Analyze Planning Phase
on maximum Reporting Phase possible solution based on creativity techniques. Implementation
Focus
Phase
Hogwarts School of Improvement Initiatives
Improve
Value-based
decision process
Uses
statistical approach
Follows
a very structured, organized plan
Focus on maximum possible solution based on analytical optimization techniques.
Control
Value Engineering
Michael Mladjenovic - Intier Automotive Interiors, Toronto, CA
IMPLEMENTATION / EVALUATION PHASE
Application of 6 σ σ Tools l e v e L σ
6σ 5σ 4σ 3σ 2σ 0%
20%
40%
60%
80%
100%
% Usage Basic Tools
Statistical Tools
Design for 6σ and Innovation w/VE Michael Mladjenovic - Intier Automotive Interiors, Toronto, CA
Hogwarts School of Improvement Initiatives
Value Engineering
IMPLEMENTATION / EVALUATION PHASE
VE Job Plan with 6 σ σ
Michael Mladjenovic - Intier Automotive Interiors, Toronto, CA Hogwarts School of Improvement Initiatives
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
VE’s 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.” “I’m an engineer. We do VE all the time.” “VE is only used for cost reduction.”
Hogwarts School of Improvement Initiatives
Value Engineering