Value Engineering

An Introduction

Typical Questions on Value Engineering

# 1 2 PARTICULARS What Why REMARKS Ratio of Function to Cost To Improve Value to Customer Entire Workshop Everybody engaged in creating value chain Concept, Design, Mfg., Delivery..Life Cycle Value Chain

3
4 5 6

How
Who When Where

Objective of this Two Day Program: Create awareness on VE Methodology What is VE? Why VE? How to apply VE?

Case Studies of
Past

Present
Future

VE

Know

Pyramid of Knowledge

Understand Know Pyramid of Knowledge

5

Apply Understand Know

Pyramid of Knowledge

Analyze Apply Understand Know

Pyramid of Knowledge

Synthesize Analyze Apply Understand Know

Pyramid of Knowledge

Evaluate Synthesize Analyze Apply Understand Know

Pyramid of Knowledge

Create Evaluate Synthesize Analyze Apply Understand Know

Pyramid of Knowledge

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~ Utility

Know

Pyramid of Value Engineering

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~ Output

Understand Know Pyramid of Value Engineering

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High Degree of Achievement Low

Wasteful Spending

Excellence

Shoddy Work
Low High
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Efficiency

~ Advantage

Apply Understand Know

Pyramid of Value Engineering

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~ Quality

Analyze Apply Understand Know

Pyramid of Value Engineering

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~ Performance?

Synthesize
Analyze Apply Understand Know

Pyramid of Value Engineering

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~ Yield

Evaluate Synthesize Analyze Apply Understand Know

Pyramid of Value Engineering

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~ Function Create Evaluate Synthesize Analyze Apply Understand Know

Pyramid of Value Engineering

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The Ultimate in Value Engineering:

There are no Products

There are only Functions

Product

What we see

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The Ultimate in Value Engineering:

There are no Products

There are only Functions - Anon.

Product

Function

What Value Engineer sees

Seminar Vs Workshop

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What is Value Engineering?

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What is VE ?
Powerful problem-solving tool that can 1. Value of Product / Service Performance of Product / Service Costs to customer

2.

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Advantages of VE?

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Advantages of VE?
VE helps organizations compete more effectively in local, national and international markets by: 1. Decreasing costs - Increasing profits 2. Improving quality -Expanding market share 3. Saving time -Solving problems 4. Using resources more effectively..
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Father of Value Engineering?

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Father of Value Engineering?

GE Logo

Lawrence D Miles of GE, USA

Who founded GE? Circumstances leading to VE? Todays situation?
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Founder of GE

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193909010815?

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W W II Started at 1939-09-01-08-15?

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Developed VE Concepts During II World War Years Shortage of materials affected production Explored how alternative materials could be considered at lower cost without affecting Product Functionality / Performance

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Heavy Wooden Chair

Molded Chair Molded Stool Two-legged Walker Single Legged Chair?!

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US NAVY 1954
Analyze Design before Productionization Engineering Value during Development

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US Army
US Air Force US Department of Defense 1961

Who is the largest buyer in any country?

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US Government mandated that all major purchases & contracts be covered by an incentive clause: Gains of VE will be shared between Govt. & Contractor
Private Industry followed suit in Engg. & Mfg. SAVE (Expansion?) founded in 1958 CVS SAVE - International

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1993 US Office of Management & Budgets OMB Circular A-131:

Federal agencies to use VE methodology as management tool to reduce program & Acquisition costs

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1995 National Highway System Designation Act USA states: States to carry out VE analysis for all federal-aid highway projects with estimated total cost > $25 million

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Definition of VE by SAVE International?

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Definition of VE by SAVE International

VE Systematic team approach to improve Value in product or service by using examination of Function Team Function
V

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Indian Value Engineering Society INVEST 1978

Society of Value Management SIVAM - 1990

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VE Definition: Application of analytical methods & creative techniques to ensure that the essential functions of a product or service are provided at minimum cost without reducing Quality & Reliability

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VE =
Achieve essential Functions of Product @ Minimum Cost

Without compromising Q & R

Apply Analytical methods & Creative Techniques

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Synonyms of Value Engineering?

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Synonyms of Value Engineering (VE)? 1. Value Assurance 2. Value Buying 3. Value Control 4. Value Engineering 5. Value Improvement 6. Value Management 7. Value Methodology 8. Value Research
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VE - Forerunner of
1. DFMA - DFX

2. FMEA
3. FTA 4. Imagineering 5. Kanos Model 6. Six Sigma 7. Lateral Thinking 8. Lean Thinking 9. Taguchi Methodology 10. TQM 11. TRIZ 12. QFD.
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Forerunner of

DFMA - DFX

VE - FA

Boothroyd & Dewhurst

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Forerunner of

DFMA - DFX

Imagineering

VE - FA

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Forerunner of

DFMA - DFX

Imagineering

Kano Model

VE - FA

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Forerunner of

DFMA - DFX

Imagineering

Kanos Model Lateral Thinking

VE - FA

1970
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Forerunner of

DFMA - DFX

Imagineering

Kanos Model Lateral Thinking

VE - FA

Lean Thinking

Toyota Production System

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Forerunner of

DFMA - DFX

Imagineering

Kanos Model Lateral Thinking

VE - FA

Lean Thinking

FMEA

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Forerunner of

DFMA - DFX

Imagineering

Kanos Model Lateral Thinking

VE - FA

Lean Thinking

FMEA
FTA
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Forerunner of

DFMA - DFX

Imagineering

Kanos Model Lateral Thinking

VE - FA

Lean Thinking

Six Sigma

FMEA
FTA
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Forerunner of

DFMA - DFX

Imagineering

Kanos Model Lateral Thinking

VE - FA
Taguchi Six Sigma

Lean Thinking

FMEA FTA
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Picture

Forerunner of

DFMA - DFX

Imagineering

Kanos Model Lateral Thinking

TQM

VE - FA

Taguchi Six Sigma

Lean Thinking

FMEA FTA
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Forerunner of

DFMA - DFX

Imagineering

TRIZ
TQM

Kanos Model Lateral Thinking

VE - FA

Taguchi Six Sigma

Lean Thinking

FMEA FTA
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Picture Altschuller

Forerunner of
QFD DFMA - DFX Imagineering

TRIZ TQM

Kanos Model Lateral Thinking

VE - FA

Taguchi
Six Sigma

Lean Thinking

FMEA FTA
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Picture

QFD

DFMA - DFX

Imagineering

TRIZ
TQM

Kanos Model Lateral Thinking

VE - FA

Taguchi Six Sigma

Lean Thinking

FMEA FTA

Application of ?

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QFD

DFMA - DFX

Imagineering

TRIZ
TQM

Kanos Model Lateral Thinking

VE - FA

Taguchi Six Sigma

Lean Thinking

FMEA FTA
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Application of common sense!

Newton & 2 Cats

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Areas of Application of VE?

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Can we apply VE to English Language?

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Miles conceived
Value = (Performance cost) Value to customer of any product increases if you Increase Numerator Reduce Denominator Or ?

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Miles conceived
Value = (Performance cost) Value to customer of any product increases if you Increase Numerator Reduce Denominator Do both

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 People extended VE over time from Products to

Service

Project
Program

virtually anything where there exists customer - supplier relationship

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Analysis = Examine something in detail to discover more about it

Ex: Chemical Analysis VA = Examine Value thoroughly to know more about its composition

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Value

VA = Examine Value thoroughly to know more about its composition

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Engineering = Design & Build something using scientific principles

VE = Apply Value for Design

Value Engineered house..

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Management = Plan, Organize, Control,. towards success (Objectives) VM = Manage Value

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Every human activity involving expenditure of money can be viewed through Value Paradigm

Value

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ROI that public & private organizations derive from implementing VM programs averages 10 to 1
For every dollar invested in VM study - $10 in net savings results. - S.A.V.E. International

Expenditure for two days of Workshop?

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What do we see here?

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What do we see here?

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What do we see here?

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BIG Q

Quality symbol - inseparable from Cost & Delivery

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Japanese Mantra to succeed in Market

Q C
How?
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What?

VE

D C

How?
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VE directed at improving Big Q

1. Performance 2. Reliability 3. Quality 4. Safety 5. Life cycle cost

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VE - proven management tool that can be used by agencies to 1. Streamline operations 2. Improve quality 3. Reduce contract costs

Franklin Rains, U.S. Office of Management & Budget

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How Does VE Work?

Through VE study Brings together multidisciplinary team of people who own problem & have expertise to identify & solve it VE study team works under direction of facilitator who follows VE job plan To review project

Making sure team understands customer requirements

Develops a cost-effective solution

U.S. Embassy Dar es Salaam Budget Cost: $50 Million (VE Savings $2.2 M)

US Embassy Nairobi Budget Cost: $80 Million 81 (VE Savings $4.4 M)

Rock Line Original Grade

10M Clear Zone

Standard Rock Excavation Face

Original Design

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83

Rock Line Original Grade

10m Clear Zone Standard Rock Excavation Face

Original Design
Rock Line Original Grade
10m Clear Zone

Earth Fill Over Rock Face VE Proposed Rock Excavation Face

VE Proposed Design
84 (Net Savings $4 Million Accident Loss Reduction)

By VE, Make it 1. Greener

2. Cheaper
3. Legal

4. Refined
5. Reliable MIRA, UK

6. Win
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#
1 2

PARTICULARS

VA

VE

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#
1 2

PARTICULARS
Cost For Products

VA
Reduction During Design & Development Less

VE
Avoidance Already in Production More

Savings

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Can we apply Value Engineering to English? Yes or No

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Value Engineered English

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Value Engineering (VE) term coined by Lawrence D Miles of General Electric USA He developed VE Concept during Post II World War Years, when shortage of material affected GE production

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Miles explored how alternative materials could be considered at lower cost without affecting product performance He conceived, Value = (Performance Cost) Value to customer of any product increased

If you improve performance at same cost Reduce cost retaining same performance
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People extended VE over time from Products to 1.Service 2.Project 3.Program 4.Virtually anything where there exists customer supplier relationship ! 5.Why not to English?

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Purpose of this presentation to show VE applicability to written English also Value of written Message = (Effectiveness) (word count) We improve Value by minimizing word count

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Principles (Syntax & Semantics) of Value Engineered English:

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Rule # 1 Use minimum words to convey meaning concisely Grammar classifies words as one of 8 Parts of Speech: Verb, Noun, Pronoun, Adjective, Adverb, Preposition, Conjunction & Interjection We can totally get rid of verbs like is, was, am, are, were in most places without any loss of meaning! Such verbs - better understood with a hyphen placed, where they need to occur (If not convinced, kindly read passage above, written by following this rule) Avoid use of articles a, an, the wherever possible
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Rule # 2 Conserve space by universally understood Symbols: # SYMBOL MEANING (REPLACES WORD) And Therefore Because Or Divided By EXAMPLE

1 2 3 4 5

& Invert /

Give me Orange / Apple -

6 7 8 9

% Actual Numbers > <

Percentage Numerals Greater than Less than

5 Soldiers A>B C<D

Rule # 3
Bulleted sentences do not require full stops at ends

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Rule # 4
To improve Effectiveness, Nouns wherever necessary written with capital letters

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Conclusion:
This value engineered write up contains 300 words Same written in conventional text would take 400 words! Saving in written matter ~ 33%! Improving communication Effectiveness
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The rules are not God-given but are only man-made

You can add & modify rules

Please inform us of any such improvements

pgschool@nttf.co.in Please Remember

VE generic Problem solving Tool

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Thank You
pgschool@nttf.co.in
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