100481874-Value-Engineering-VA-VE.pdf

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

Hogwarts School of Improvement Initiatives

•· •· •· •· •· •· •· •· •· •·

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.


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”. 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


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. Hogwarts School of Improvement Initiatives

Value Engineering

Introduction

Why use Value Engineering? Save Save Build Improve

Time Money Teamwork Quality

Satisfy

Customer


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)


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

Benefit Usefulness


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?


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.

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


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 network

VE Convenor VE Co-ordinator 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 PR 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 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


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 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


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.


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

Value =

Good

Function Cost


Passable

Acceptable

Function Cost

Value Engineering

INFORMATION PHASE

Concepts of Value - Undesirable

Undesirable but Passable (cheapening the product)

Value =

Function Cost


Function Cost

Value Engineering

INFORMATION PHASE


Value Engineering

INFORMATION PHASE


Value Engineering

INFORMATION PHASE


Value Engineering

INFORMATION PHASE


Value Engineering

INFORMATION PHASE


Value Engineering

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?

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


GENERATE LIGHT

(concept)

CONVERT ENERGY

RECEIVE CURRENT

TRANSMIT CURRENT

GENERATE HEAT

DISSIPATE HEAT

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



Value Engineering

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. 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


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.

DON’T KILL IDEAS WITH ROADBLOCKS!!


Value Engineering

SPECULATION PHASE

Creative and Judicial Ability Development

Predominately creative

Predominately judicial

0

12 56

17 24

Age


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”


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.  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


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


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.


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 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.


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)


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. 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


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


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


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

EVALUATION PHASE

Cause Cause Cause

Cause Cause Cause

Cause Cause Cause

Cause Cause Cause

Cause Effect

Cause Cause

Cause


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


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.


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.


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


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


Force Field Analysis

Road

Enablers

Blocks

Current Hogwarts School of Improvement Initiatives

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

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


Cause Cause Cause

Value Engineering


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)


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

x

Value Engineering


x Value Engineering


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


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


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


Value Engineering


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.


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.”


Value Engineering

100481874-Value-Engineering-VA-VE.pdf

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