evaluate value engineering function

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32 Techniques o f Value Analysis and Engineering

sary. Techniques are provided for evaluating functions by comparison.Howcver, this evaluation must not be made by comparison with the past.These values are established by other valid comparisons and are thenused as a guide to the achievement of the individual function or groupsof functions for that value or cost.

To assign a "value" (lowest cost that would fully provide it ) to a func-tion, it must be determined what the lowest cost to a competitor who haskeen mental resources and good physical resources would be. The processof evaluating functions typically is as follows:

1. Individualize separate functions.2. Understand them completely.3. Creatively establish other unobvious means for accomplishing each

function. Concentrate intense energies on means that are likely to bemuch lower in cost. Think searchingly, penetratingly, and courageously.

4. Assign approximate cost.5. Add the values of the various required functions to arrive at a valuefor the larger overall functions. Where functions are not interacting, addarithmetically. Where they are interacting, combine them by using plusor minus cost factors for the areas of interaction.

In this preliminary evaluation of the function do not strive for arith-metic or technical exactness. Instead search for areas of promise, approxi-mate benefits to be gained by further study, and general directions forprecise thinking and work. The result is now the tentative value of thefunction, based not upon the habits and practices of the past, but ratherupon such new and different factors as the state of the art now providesand the skill and creativity of the thinking can relate.

3-2 Evaluation of Functions b y ComparisonTentative and extremely useful values for functions can usually be madeby objective comparisons. How else might an important portion of thefunction be accomplished, and what approximately would that cost? Suchcomparisons avoid the dangerous trap of judging and planning the futurefrom the past.

Case StudyE V A L U A T E A SINGLE FUNCTION

The function of gasoline tanks for Navy landing craft is to reliably con-tain 200 gallons of gasoline. The noncombat life is eight years. The think-ing process used to evaluate this function was:


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Evaluate the Function 33

What is the appropriate cost for housing 200 gallons of gasoline?Using four 50-gallon standard drums $25Using one standard 250-gallon oil tank made for domestic use $30

However, some environmental treatment and perhaps some extra connec-tions would be required. Therefore, adding $25, we arrive at a tentative$50 evaluation on the gasoline-containing function.

As a result of applying this technique, $80 gasoline containers wereadopted to replace the $520 special-alloy tank previously designed andused. Because at this time the mechanism of evaluating the function pro-ceeded before other decisions were made, the saving to the taxpayers onthe 1,000 tanks was $440,000-the difference between $520,000 and$80,000.

Consider now the hours of design time used on the tank used previouslyin selecting costly noncorrosive material, designing irregular shapes thatwould be welded together, and specifying welding methods, standards,costs, etc., only to arrive at a "perfomance" design costing $520.

Case StudyEVALUATE THREE FUNCTIONS

The part is a steel spacer stud used in quantities of 200,000 per year tofasten a timer to an appliance. When the part was made on the automaticscrew machines, the cost was 8 cents each or $16,000 per year. Part of thestud also separated two parts of the timer. What are the functions?

1. Hold the 2-pound timer to the appliance.2. Hold a small timer part to the stud.3. Space two parts of the timer.What is the value of the functions? In each case assume (for themoment of first evaluation) that there are no interacting functions. Value

must be determined for each function separately by comparison. The No.1 holding function could be reliably accomplished by a steel screw, forexample, which costs 1/2 cent. Therefore, the value of this holding functionis not over % cent.

Holding function Yo. 1 %$Holding function No. 2 would be accomplished by a smaller steel screw %#The spacing function (No . 3) could, in general, be accomplished by a cutofflength of tubing or a rolled spacer, which would cost about % 6-dding, the value for all functions is 1 O #HOLDINGFUNCTION


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34 Techniques of Value Analysis and Engineering

Work from now on is directed in several respects:1. Time will not be expended in developing the details of any approach

that will not accomplish this entire function for a cost on the order of 1cent.2. Sufficient ideas, information, and appropriate design concepts will beacquired so that a material, design, and product will be provided that willaccomplish the functions reliably and within the specified area of cost.

An important question here is "Don't the holding functions interactwith the spacing function sufficiently so that it is invalid to directly addthe values of the functions?" The answer is "Probably not." The interactionis so simple that it might deduct from the total cost rather than add to it.Hence the approximate value for the functions of the 8-cent stud wasplaced at 1 cent. The function value had provided a degree of "measure-ment" that indicated that real mental work should bring tangible results.

This case study was concluded using some value engineering approachesthat will be discussed later; however, the example will be finished here.We knew we could not use the present automatic-screw-machine approachbecause it was necessary to arrive at costs approximately one-tenth of thosewhich would result. Much help was found in the specific value analysistechniclues. The one that formed a mechanism for this item was blast-create-refine. Thinking started with an eightpenny nail, which was ap-proximately the appropriate size, contained a head, and cost %o cent.

Creating and refining, the answers were developed. What must be doneto the nail so that it will accomplish the three functions reliably, and whatwill be the added cost of each added operation?

1. The head must be moved down slightly on the shank.2. The head must be made hexagonal.3. Another head must be made in the middle of the nail to provide the

necessary spacing action.4. Threads must be rolled on each end of the modified nail.

Fig. 3-3 Spacer stud-differentapproach.

Suppliers in this type of business said they could make these changes and,in fact, did so. The modified design is shown in Figure 3-3.

The cost became 8/10 cent, with a reduction in cost of 72/10 cents each


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Evaluate the Function 35or $14,400 per year, for an interchangeable item performing the identicaluse functions. There were no aesthetic functions.

Fig. 3-4pared.

Spacer studs com-

3-3 Evaluation of Interacting FunctionsOften the evaluation of single functions will cause the search and thoughtrequired to make good improvement of value. Usually, however, thereare several functions involved-some independent and some interactingfunctions.

Usually the procedure outlined here will handle the interacting func-tions:

1. Arrange the functions in suitable order for evaluation. This arrange-ment will be such that means for accomplishing each succeeding functioncan be varied without nullifying the work done on previous functions.

2. Evaluate the function at the top of the list as though it were asingle function.

3. Evaluate the second function of the arrangement. For this task,temporarily assume that the solution to the first function is a part of thegiven conditions under which the second function will be evaluated. Donot hesitate, during the evaluation, to alter the design and method think-ing previously done on the first function, provided the new methodsaccomplish both function No. 1and function No. 2.

4. Proceed through the list, using the same approach. When com-pleted, there will be nothing in the final evaluation of any function thatis not compatible with all others.


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36 Techniques of Valu e Analysis and Engineering

Case StudyINTERACTING FUNCTIONS

Fig. 3-5 Screen for large electric motor.Made by cutting suitable metal frame ap-proximately 7 inches on each of the radii,welding expanded metal over opening,and riveting in easy-opener lock; 1/16-inch-thick steel; 4,500 per year; $6 each. Fourscreens fill end of 18-inch diameter motor

I I

Fig. 3-6 Diagram of motorwithout protective screens(viewed from shaft end).

opening.

The functions were determined to be:Allow ventilation.Facilitate maintenance.Exclude substance.Please customer.Had an attempt been made to evaluate the functions in the order of

this unarranged list, the work would have been futile for the followingreasons: Taking the first function, what must be added to the motor toallow ventilation? Nothing. It is already open. Cost would be 0 cents.Likewise, what must be added to the motor to facilitate maintenance?Again, nothing. Cost would be 0 cents. What must be added to the motorto exclude substance? A cover of some kind. Would this interfere with theaccomplishment of the first two functions, which were already evaluated?Probably. Hence no useful benefit has been accomplished.

However, the functions were arranged as follows:1. Exclude substance.2. Allow ventilation.3. Facilitate maintenance.4. Please customer.

Then the functions were evaluated by creative comparisons in the order of


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the above list. Much abbreviated, the results were as shown in the follow-ing table:

Function 1. Exclude substance (sheet metal) $0.15 ea.Function 2. Allow ventilation (open up andmodify sheet metal), added cost 0.15Function 3. Facilitate maintenance

(spring clip operated by one-halfturn of screwdriver) 0.10

Function 4. Please customer (appearance paint) 0.10Total value of all functions accomplished $0.50

Work was motivated and guided by this evaluation of functions pres-ently costing $6 at 50 cents. Costs immediately realized were:Exclude substance (sheet metal) $0.25Allow ventilation (open up and modify sheet metal) 0.30Facilitate maintenance (Marketing men decided that

the costly fastener, which could be removed withthe fingers, should be used rather than the screw-driver-actuated spring clip recommended in theevaluation. They judged that i t was an aestheticitem that pleased the customer, attracting enoughadded buyers t,o justify the extra cost.) 0.60

Please the customer (suitable painting) 0.10-ew cost $1.25

Even keeping the 50-cent aesthetic-function cost, the cost was reduced$4.75 each or $21,000 annually for the design life of the product.

Fig. 3-7 Motor screens producing identical functions but dif-


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38 T e c h n i q u e s o f V alu e Analys i s and Engineer ing3-4 Evaluation of Functions(from Available Data)In order to achieve costs that are low enough to equal those of the bestcompetitor, function-cost relationships are exceedingly helpful. Ideally,if the designer knew the lowest cost for which each of the product func-tions could be provided and had a practical system for adding the valuesof interacting functions, he could proceed with his design work withinthe established parameters with confidence that, when completed, hisproduct would not, for a time, experience cost difficulties in competition.

Surprisingly, much basic function-cost information can be producedfrom published data. Equally surprising, as of this date, tabulations of ithave not been generally prepared and are not available to the designer.However, function-property relationships are well published, e.g., ratio ofcurrent to conductivity. Also, property-material relationships are wellpublished, e.g., relationships of conductivity to copper. Finally, material-cost relationships are published in catalogues. Therefore, at any one timewith a known material cost, the relationship of function to cost is readilydeterminable.

At all times, when material cost has changed enough to affect thedecisions made, it is only necessary to modify the cost factor to haveaccurate data again. At the present time, each manufacturer, who pre-pares this data for his specific jobs, understandably considers it propri-etary, with the result that, as yet, each must prepare his own.

Some of the types of functions that can be evaluated by publisheddata are:

Insulate voltage. (How much voltage? What area?)Transmit torque.Conduct current.Conduct flux.

Case StudyPUBLISHED DATA USED TO EVALUATETHE FUNCTIONA switchblade was used in a safety-switch assembly enclosed in a spaceabout 2 x 2 x 2 feet. The general type of assembly is shown in Figure

Fig. 3-8 Switchblade. Madeby sand-casting and milling thebody, then brazing strip of brass3 / s X 3 / 3 2 inch thick and 4 incheslong into body; overall length, 7inches; 600 per year; $3 each.Mounted in enclosed electricswitch gear.


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BLADE P I VO TSFRICTION GRIP

CONDUCTOR BRAZED

Fig. 3-9 Safety switchblade in use.

3-9. The switch was used a few times each year whenever it was neces-sary to make adjustments in the switch-gear equipment or in the electricalequipment that was controlled by the switch gear. At such times, theelectrician would open a circuit breaker in the circuit preceding the switch-gear equipment, open the equipment, manually open the safety switch,and then, if desired, reclose the preceding circuit breaker. Work couldthen proceed in 100 per cent safety.The following functions of the switchblade were named:

1. Conduct current: 50 amperes, 4 inches.2. Accommodate circuit opening (manually under conditions of novoltage).It was noted that the first function would lend itself to evaluation frompublished data while the second must be evaluated by creative searchesand comparisons.

Evaluation of function No. 1:The amount of copper in standard commercial formrequired to conduct the 50 amperes: 4 inches

Evaluation of function No. 2:Several comparisons were creatively made.The construction for the basis of this evaluation was:

Use bar, not round copperAdd an inch to its lengthFlatten a portion still more a t the pivot endDrill or pierce a hole for the pivot

TotalThe combined value of the two functions then became1. Conduct current $0.102. Accommodate opening 0.15

Total $0.25The arithmetic sum of the two function values became the valid value of


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PO Techniques of Va lue Analysis and En gineeringNow, with a value of 25 cents on thefunctions that were costing $3, the menworking on the project were motivatedand guided to take some actions. Onemember of this study team was a purchas-ing man. He obtained quotations on aswitchblade made as a one-piece brassforging. With a moderate die cost, its costbecame 40 cents. Although more extensivechange could probably have developed agood construction at nearer the evaluatedcost of 25 cents, the men responsibleelected to make the change to the forgedswitchblade at once since it saved $2.60each, provided a totally interchangeable

t 3.00 $ 0.40 part that could be used in maintenanceof equipment already installed, and al-Fig. 3-10 Switchblades pro-ducing identical function but lowed them to use their time on otherdiffering in cost by more than areas of the equipment.

3.5 Evaluate All Functionsb y ComparisonValue being a relative rather than an absolute measure, the comparisonapproach must be used in evaluating functions. The basic question, "Isthe function accomplished reliably at the best cost?" can be answeredonly by comparison.The larger and more complicated the object undergoing analysis, thegreater the n um ber of comparisons necessary to make th e analysis suf-ficiently comprehensive to establish the best value for each includedfunction. This means analyzing a series of basic functions, each dis-covered by breaking the assembly down into its subunits, components,and parts. In this way the problem becomes perhaps one of comparingth e use of one material with tha t of anothe r, th e style of one pa rt withth at of an equivalen t, th e application of one process of m anufa ctu re withthat of another, an d so on. I t may be a matter of com paring metal withplastics, screw-m achined parts with lathe-machined equivalents, or stamp-ing with spinning to determ ine how the needed function can b e obtainedreliably at th e lowest cost.It can be said almost without fear of contradiction that, if there is nocomparison, th ere is no evaluation. All evalua tion results from comparisonof some kind : in some instances, comparison with standards; in otherinstances, comparison with similar items; and in still others, comparisonwith partially similar items. If, in the pursuit of better value, functions


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have not been identified and these functions have not been evaluated bycomparison, then the process has not been value analysis but merely costanalysis.This vitally important step, "evaluate the function by comparison," isperhaps best recognized by looking at a few illustrative examples.

EXAMPLE 1: Knowing value of function promotes and guides effortThe step of identifying the function is the value analyst's initialtool. In some cases, just the clear use of this step prompts ideas and

information which result in better value. For example, a roundbronze casting 3 inches in diameter and 1/4 inch thick, with a center-drilled and splined hole, was found to cost $16. What was its func-tion? It fitted on a valve stem, and its function was to facilitate open-ing and closing a valve by hand. In other words, $16was expended onproviding a handle to open and close a valve. Nearly everyone hasseen valves with suitable handles and realizes that whole valves canbe bought for $2 or $3, so one is motivated at once to "do somethingabout it," namely, to look to valve experts for a better answer. Byjust this step, a similar valve handle of equal effectiveness, readilyavailable, was produced for a cost of 60 cents.EXAMPLE 2: Where use value is of prime importance

What is the value in dollars of a nail? We find, by comparison, thatanswers to such questions as: What precisely are the functions withrespect to use, convenience, life, etc., which are needed from thenail? Then, what alternative ways are there of accomplishing allthose functions with the same reliability? And finally, what is the costby these alternative methods? The value of the nail cannot exceedthe cost of the least expensive alternative method of accomplishingall its functions with equal reliability, as established by comparison.

What is the value of a brass screw? First, all functions of use, ofappearance, of convenience, of endurance, etc., must be clearlyestablished. Next, other combinations of materials, processes, andproducts which will reliably accomplish the total purpose are com-pared. When the costs of these alternatives have been developed, thecost of the least expensive alternative that will reliably accomplishthe total function establishes the maximum value of the screw. And,indeed, the screw must be available for that cost, or informed con-sumers will buy other products and discontinue the use of the screw.What is the value of an electric switch? Again, with the total func-tions of the electric switch in clear view, a search should be made forother means of reliably interrupting a circuit under the same condi-tions. Some of these alternatives may be more costly and some lesscostly. If some less costly are found, then the makers of the switch


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42 Techniques of Value Analysis and Engineering

may well expect marketing problems because the shortcoming oftheir switch is established by comparison.EXAMPLE 3: W h e r e aesthetic value is of prime importance

Total dollar values are normally established by comparisons whichinclude both the use factors and the aesthetic factors in function. Inmost products for industrial applications-from the nail up-the usefunction holds primary importance. A great variety of other products,of which the electric clock is one, must, besides accomplishing theiruse functions reliably, have appearance, attractiveness, and perhapsother interest factors which cause customers to buy them; these wemay group broadly under the term aesthetic. Consider here an itemsuch as a suit of clothes. The use value derives essentially from thefunctions providing warmth and comfort, while the aesthetic valuesconsist substantially of the functions yielding appearance, attractive-ness, and conformity to social custom. Also, these values can beestablished by comparison. A thorough search would probablyidentify means for securing the warmth and comfort functions of a$50 suit of clothes for $10 or $15. This can be developed by com-paring all alternative means of securing the same warmth and com-fort. To then arrive at the total value of $50 for the suit, we must addthe $35 or $40 which represents aesthetic value. Here too we are con-cerned with comparison. If there are better ways of providing atlower cost all of the attractiveness, appearance, conformity tocustom, etc., which are contained in the suit, then the suit does notrepresent good value at $50; only lack of knowledge on the part ofthe customer causes him to buy it. An informed user will change tothe alternative choice which has been developed by comparison.

Evaluation, then, is seen to be a result of the comparison involved.3-6 Value of Function Becomes aGuide or MeasureValues of functions, or measures of approximate appropriate cost, can beprepared by either those responsible for the work and decision making oran assisting specialist who is skilled in using the value analysis system.

Some questions asked by specialists, while in training, and the answersare included to deepen understanding of this vital technique.

1. What is measure? After a function (or a group of functions) isfully understood and described and after intensive and effective work hasbeen completed-using all of the techniques that are appicable-the low-est cost that seems likely to accomplish all of the use and/or aestheticfunctions that the customer wants, considering probable manufacturingquantities, is the measurement.


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thinking processes, searches, analyses, and comparisons play a significantpart. These must be available to show the reasonableness of the conclu-sions. Sometimes it will be desirable to carry the study further in speciiccases. Sometimes a measure is based upon the expected outcome of atest of a minor "unknown" that is expected to work out but does not;then more work should be done to establish a valid measurement. (To be100 per cent sure of anything, engineering tests must be completed. Thisis engineering work, not measurement work. )

The great value in the measurement comes from the specific intensesearches, analyses, creativity, and thinking, some of which would nothave occurred otherwise. As a result, about 95 per cent of the measure-ments will be about 95 per cent right, and they form excellent guides.3. Should explanations be given? Yes, to the extent that the increasedunderstanding is needed to develop confidence of the user or to theextent that the information and thinking involved will help in the manu-facturing, engineering, or other work that will follow in the use of themeasurement.

No, when neither of these criteria apply.4. W h e n do we go into the creative step? When we have gatheredenough information, analyzed for meaning and direction and made intospecific solvable-type problems, creativity for a variety of specific pur-poses is often a next step.

5. W h e n is a real and final measure established? When the conditionsin question 1 have been met and the total of the measures meets theneeds of the business, they are considered final until a change occurs-either in the needs of the business or in the validity of the measure.

6. How do we get people to place confidence in the measurements?By giving them understanding, experience with them, and results fromthem.

7. How do we, as specialists in value analysis, divide the work so thatour associates will not think that we are taking some of their work fromthem? Each associate naturally expects you to do what he has seen youdoing in the past. Associates must be shown, usually in orientation meet-ings, that a new need to meet more severe competition exists and thatthis method is being used to help. Their managers must discuss themethod with them, showing them how they will be affected by it, howthey will contribute to it, and how they will benefit from it. Care must betaken in discussing the new method to prevent causing any embarrass-ment.

8. Must this method be well known to be used? Yes, it must becomewell known and well respected, as with any other important work.9. W ill this method be so dificu lt to use w ith many products that onlya "superman" can do it? No, this work has approaches and techniquesquite different than the technology of any one technical field. It may be


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44 Techniques of Va lue Analysis and E ngineeringrecalled that less-than-average knowledge in the precise field of theproduct or service is adequate.

10. How will we motivate men to use the measurements we make?Basically, you won't. No one uses a meter stick just because it is around;neither do people use an engineer or a lawyer just because he is around.Motivation is from business need, and it appears that competitive needis increasing. It is a case of need, availability, orientation, and under-standing.

11. To whom wil l I present my results? As marketing people andothers dete rm ine requirem ents of performance, selling prices, etc., for th eneeds of th e business for all who need to use them, so you will de term inemeasurements to meet the business need for all who need to use them.12. If we provide guides to decision making, won't it be consideredtroublesome by the men who now advise the managers on decision mak-ing? To the timber appraiser who has always estimated the height anddiam eter of trees by his experience an d skillful intuition, th e unexpectedapp earance of an effective measurement device tha t readily providesmore accurate measurements faster would be troublesome and perhapsembarrassing and injuring. However, if he knew that this device wascoming in advance, if he was among the first to understand and use it,an d if it helped him to do his job better, th e opposite m ight be true.When men in the business find that here are measurements that helpeach one make his cost-affecting decisions, they will like using them, asthey like obtaining and using meaningful accounting data or any otheruseful information.SUMMARYEstab lishing a "value" of a function is one of th e new techniq ues offeredby the value analysis system. In this context "value" means the lowestcost that would provide a function with the qualities and specificationswith which the customer wants it to operate. This value in dollars andcents then becomes a guide and measure. It indicates the approximatemaximum cost that should be accepted for the function in decisionmaking.Function values a re usually prepa red from comparisons. They must notbe prepared from past practices. Sometimes they may be prepared fromengineering data.W hen interacting functions are evaluated, they m ust be arranged in ap-propriate order and the solution to each must be considered as a part ofth e situation in evaluating succeeding functions.

In the preliminary evaluation of functions, do not strive for technicalexactness. That will follow. Instead, provide a reasonable guide and ap-

evaluate value engineering function

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