introduction to veva

Valmax Associates ©2002

ANAN

INTRODUCTIONINTRODUCTION


* What is it?

* Where did it come from?

* How does it work?

* What are benefits?


A decision process that uses systematic,organized procedures to generate creativealternatives to secure essential functions at

the greatest worth.

DEFINITION


VALUE

WORTH

COST=

Value Function

>1

<1

Good Value

Poor Value


EXISTING PRODUCTS, PROCESSES or SERVICES

Concept Design

Development

Manufacturing Distributing

Selling Servicing

FUTURE PRODUCTS, PROCESSES or SERVICES


1960s - Miles publishes first book - Initial FAST diagramming techniques developed - Society of American Value Engineers (SAVE) establ. - US Dept. of Defense requires for procurement

1940s - Larry Miles / GE developed Theory of Value Analysis and Use Functions1950s - Adopted by Dept. of Navy as Value Engineering

1990s - Public Law 104106 mandates Value Engineering at all executive agencies of federal government

1970s & 1980s - Value Engineering courses established at University of Wisconsin - “Technical” and “Customer” FAST standardized - Quality Function Deployment (QFD) begins in US - Value Methods expand to major US companies

HISTORY


MOREMOREVALUVALUEE

WORTHCOST

=


WORTH

COST

• Performance

• Quality

• Safety

• Esteem

• Timeliness

• Convenience

• Reliability

• Production

• Ownership

• Training • Delay

• Breakage

• Poor Style

• Maintenance

• Excess Time

• Wear

• Service

• BenefitsPOORVALUE


KEY ELEMENTS

• Team Involvement

• Structured Process

• Functional Analysis

• Communication

• Creativity


• Structured Process JOB PLANJOB PLAN

2 Information3 Creativity

1 Selection

5 Development4 Analysis

6 Presentation7 Implementation8 Verification

TEAM WORKSHOP(3 to 10 days)


• JOB PLAN


1 Selection



Project Scope Data Team

Based on:• Apparent benefits• Cost / Resource reductions• Performance improvements• Projected ROI

Based on:• Budget available• Time available• Opportunity for changes • Expertise available

• Drawings & Schematics• Specifications• Cost Accounting • Performance• Customer Feedback

Based on:• Expertise• Compatibility • Availability• Interest

Indicators:• Costs Increasing• Schedules Missed • Losing Market Share• Traditional Solutions - won’t work! . . . too costly!


• Team Involvement

- 5 to 7 Members

- Selected by Management

- Assisted by Certified VM Facilitator

- Multiple Disciplines


• JOB PLAN


1 Selection



(Project, Scope, Data, Team Members)FA FAST Focus Points

FUNCTION ANALYSISFUNCTION ANALYSIS


FUNCTION ANALYSISFUNCTION ANALYSIS

- Two Word Descriptions

- What Does It Do ?

- Active Verb + Measurable Noun

for each component or element

what is it ?

example: a pencil “makes marks”


FUNCTIONFUNCTION ANALYSISANALYSIS

Eraser

Band

Paint (Body)

Paint (Letters)

Body

Lead

Eraser

Band

Paint (Letters)

Paint (Body)

Lead

Body

PARTS COSTS

$0.30

$0.13

$0.05

$0.09

$0.24

$0.38

$1.19

Eraser

Band

Lead

Body

PARTS FUNCTIONS

Paint (Letters)

Paint (Body)

/ COSTS

Remove Marks

Secure Eraser

Display Info.

Protect WoodImprove Appear.

Make Marks

Improve Appear.

Transmit ForceSupport Lead

Display Info.

$1.19

Accommodate Grip

/ $0.30

/ $0.10 / $0.03

/ $0.05

/ $0.05 / $0.04

/ $0.24

/ $0.20 / $0.14

/ $0.04


• JOB PLAN


1 Selection



(Project, Scope, Data, Team Members)FA FAST

FAST FAST DiagramDiagram



- Logical Arrangement of Functions

- Distribute Costs by Function

- Prioritize Functions for Analysis

higher order, basic, secondary, supporting

costs of functions allocated

focus points refine emphasis of study



FF unctiounctionn AA nalysisnalysis

SS ystemystemTT echniquechniquee

TECHNICAL FAST



Purpose

How Why

Scope Line

Higher Order

Function Secondary Basic Functions

A schematic of logical functional relationships

CUSTOMER (TASK) FAST

TASKTASK

The reason that the product,

process, system, service, etc.

exists.

SecondaryBasic

SecondaryBasic

SecondaryBasicPrimary

Basic

BASIC FUNCTIONS

Essential for performance of

the TASK

Assure Convenience

Facilitate • spatial layouts • maintenance • repairs

Furnish • instructions • directions

Assure Dependability

• Make stronger • Make safer • Ensure reliability • Extend life • Protect environs

Supporting Functions

SatisfyO U S

•Desired by users •Make easy to use •Offer comfort •Make pleasing •Improve basics -faster, smaller,etc.

AttractO U S

• Style • Color • Image • Shape • Texture • Endorsement

SUPPORTING FUNCTIONS NOT essential for performing

the TASK.

ENABLE • marketing • selling

• customer acceptance


FAST FAST DiagramDiagram Convey

Information

How Why


Eraser

Band

Paint (Body)

Paint (Letters)

Body

Lead

20% 17%

25% 8%

8%

AssureConvenience

AssureDependability 12%

4%

6%

Secondary Higher Order

FunctionBasic

Functions

SatisfyO U S

AttractO U S

Eraser

Band

Lead

Body

PARTS FUNCTIONS/COSTS

Paint (Letters)

Paint (Body)

Remove Marks / $0.30

Secure Eraser / $0.10

Display Info / $0.05

Protect Wood / $0.05Improve Appear. / $0.04

Make Marks / $0.24

Improve Appear. / $0.03

Transmit Force / $0.20Support Lead / $0.14

Display Info / $0.04

$1.19

Accommodate Grip

Make Marks

Transmit Force

Remove Marks

Secure Eraser

Display Information

Accommodate Grip

Support Lead

Protect Wood

Improve Appearance

CUSTOMER (TASK) FAST


• JOB PLAN


1 Selection



(Project, Scope, Data, Team Members)FA FAST Focus Points)

• Basic Function(s)• Value Mismatches• Complexity


FAST FAST DiagramDiagram Convey

Information

How Why


20% 17%

25% 8%

8%

AssureConvenience

DisplayInformation

AccommodateGrip

RemoveMarks

SecureEraser

AssureDependability

SupportLead 12%

4%

6%

Secondary Higher Order

FunctionBasic

Functions

TransmitForce

MakeMarks

SatisfyO U S

ProtectWood

AttractO U S

ImproveAppearance

FOCUS POINTS• Basic Functions

• Highest Cost Supporting Functions (potential VALUE MISMATCHES)

• Complexity


• JOB PLAN


1 Selection (Project, Scope, Data, Team Members)



(FA FAST Focus Points)Ideas(Focus Points

• Brainstorming• Gordon Technique• Field Force Analysis• Brain-writing• Uniform Methods Listing• Other methods

Concepts)


CreativeCreative

GENERATE IDEAS• How else . . ?• How better . . ?• How quicker . . ?• How to avoid . . ?• How less costly . . ?• How . . ? How . . ?

IDEA

IDEA

IDEA

IDEA

IDEA

IDEA

FocusPoint A

IDEA

IDEA

IDEA

IDEA

IDEA

IDEA

IDEA

IDEA

FocusPoint B

IDEA

FocusPoint C

IDEA

IDEA

IDEA

IDEA

IDEA IDEA

IDEA

IDEA

IDEAIDEA

IDEA

IDEA

FocusPoint n


• JOB PLAN





(FA FAST Focus Points)Ideas(Focus Points

• Affinity Grouping• Blast-Create-Refine• Refine Concept Groups• Identify Benefits/Risks• Other methods

Concepts)


CreativeCreative

IDEA

IDEA

IDEA

FocusPoint A

IDEA

IDEA

IDEAIDEA

IDEA

IDEA

IDEA

IDEA

FocusPoint B

IDEA

IDEA

IDEA IDEA

IDEA

IDEA

IDEAIDEA

IDEA

FocusPoint n

CONCEPT1IDEA

IDEA

IDEA

IDEA

IDEA

FocusPoint C

IDEA

IDEA

CONCEPT2

CONCEPT3

CONCEPTn

AFFINITY GROUPS


• JOB PLAN





(FA FAST Focus Points)Ideas(Focus Points Concepts)

(Evaluate Rank Select Concepts)

• Consensus • “Sticky Vote”• Probability Grouping• Criteria Weighting Matrix• Multi Series Decision Matrix


AnalysisAnalysis EXAMPLE:Probability Groupings

EASY

MODERATE

HARD

LARGE BENEFITS

MEDIUM BENEFITS

SMALL BENEFITS

IMP

LEM

ENTA

TIO

N

DIF

FIC

ULT

Y

GENERATE PROPOSALS

FUTURE CONSIDERATION

1

2

3

n

n

n

REJECT


• JOB PLAN





(FA FAST Focus Points)Ideas Concepts)(Focus Points

(Evaluate Rank Select Concepts) (Improve Proposal Value, Document)

SELECTED CONCEPTS: feasibility, viability, advantages, disadvantages, dangers, risks,

costs (life cycle)

WRITTEN REPORT


• JOB PLAN




6 Presentation


(Evaluate Rank Select Concepts) (Improve Proposal Value, Document)

(Recommendations to Sponsors)

WRITTEN REPORT & ORAL PRESENTATION

• Information for Decision-Makers• Guidance for Implementation• Records for Audit & Verification

7 Implementation8 Verification7 Implementation8 Verification


• JOB PLAN






(Evaluate Rank Select Concepts) (Improve Proposal Value, Document)(Recommendations to Sponsors)

(Schedule, Budget, Staff, etc.)(Audit Actual Results and Compare)8 Verification


• JOB PLAN






(Evaluate Rank Select Concepts) (Improve Proposal Value, Document)(Recommendations to Sponsors)

(Schedule, Budget, Staff, etc.)(Audit Actual Results and Compare)


BENEFITSIMPROVE CUSTOMER SATISFACTION - Major appliance company product ratings increased from “unsatisfactory” to “recommended”; new product rated one of “top three”.

ROI - 40:1 typical (economic benefits / VM study costs)

REDUCE PRODUCT COSTS - Electrical component manu- facturer introduced new lighted switch achieving larger market share with 30% lower product costs.

INCREASE ORGANIZATIONAL EFFICIENCY - Sales training department reduced total program cost by 47%.

INCREASE PROCESS EFFICIENCY - Machining / assembly costs reduced by 40% for automotive forgings.


Mo

net

ary

Val

ue

Product Life Cycle

PRE

|

MFG.

Potential Savings Cost to Change

Value Engg. Value Anal. Value Mgmt.VP

PLANNING

CONCEPT

DEVEL.

DESIGN/ DEVEL.

PI LOT

PROD

ONGOING

MFG.


EXAMPLE: Team Workshop Cost

5 Day Project

9

TIME (days) COST (w/OH)

$10,8005 $5,000

5 $2,0005 $2,0005 $2,3005 $2,5005 $2,5003 $1,500

$12,800$1,000

$29,600$32,000

$15,800

Travel Exp.Total

$800$18,900

TEAM MEMBERS

Facil -FT

SubtotalAsst Facil -FT

Member A-FTMember A-FTMember A-FTMember A-FTMember A-FTOther - PT

Subtotal

3 Day Project

6

TIME (days) COST (w/OH)

$7,2003 $3,000

3 $1,2003 $1,2003 $1,4003 $1,5003 $1,5001 $500

$7,300

$10,200

$21,000TOT (rounded w/8% cont)


REFERENCES

VE Society International Professional society for VM practitioners www.vesociety.com

SAVE International Professional society for VM practitioners www.value-eng.org

Miles Value Foundation VM reference center at College of Engineering, Univ. of Wisconsin www.wisc.edu/wendt/miles

VeToday Value Methods information web site: www.vetoday.com

introduction to veva

Documents