Lean Designwith Ve


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This presentation shows how Value Engineering can reduce waste in the product development and design process by eliminating the waste of false starts and insuring functions and requirements are understood upfront in the design process.

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Lean Designwith Ve

  1. 1. Salt Lake City Chapter #085 Webinar on “LEAN Design with Value Engineering” Presented by Jim Wixson CMfgE, CVS-Life CEO Wixson Value Associates, Inc May 21, 2009 We will begin at 6:00PM MST Sponsor for tonight’s Webinar The Member Engagement Initiative of SME www.sme.org/mei 1
  2. 2. About The Webinar’s Presenter Jim Wixson Jim Wixson is the Founder and CEO of Wixson Value Associates, Inc. a Inc. consulting company specializing in product and process improvements and improvements new product development. He brings over 30 years of industrial experience in Systems Engineering, Value Engineering, Industrial and Manufacturing Engineering, Lean-Six Sigma/Process Improvement, and Lean- Project Management to his clients, and has worked with/for Fortune 500 Fortune Companies including INL, The Boeing Company, and Raytheon Corporation. Jim has been a featured speaker and author of several papers and articles for SME, INCOSE, PMI, ASQ, SAVE International, Partners in Business, Business, Shingo Prize Operational Excellence Conference and the Systems Dynamics Society. For The Society of Manufacturing Engineers, Jim is the current Chapter Chapter Chair of the Salt Lake City Chapter #085, and over 20 years of membership he has held numerous volunteer leadership roles in TheThe Society as well as other professional associations. 2
  3. 3. Lean Design with Value Engineering Jim Wixson, CVS-Life, CMfgE-Life President, Wixson Value Associates, Inc. jrwixson@wvasolutions.com (208) 520-2296 http://wvasolutions.com
  4. 4. Agenda I. What is Lean Design? II. How does Value Engineering (VE) facilitate creative Lean Design? III. Value of VE. Why use it? IV. What is Function Analysis and FAST? V. The benefits of functional thinking. VI. The VE Job Plan & How it Relates to Lean Design. VII. How DFM/A and 3P work with the VE methodology. VIII. Questions and Answers 5/21/2009 Wixson Value Associates Inc. 2
  5. 5. Lean Design Lean Design is applying lean principles to Product Development Lean Design is achieved through a organized effort by a interdisciplinary team to develop, or improve a product that accomplishes the necessary functions that make it work and sell at the lowest possible lifecycle cost within the constraints of safety to the user and the environment. Lean Design focuses on "balanced excellence" in product design by focusing on the elimination of non-value-added waste in both the process of development and in the design of the products themselves. (Technology Perspectives, http://www.design-for-lean.com/lean%20design.html) Lean Design can be viewed as Value Engineering repackaged with improvements to the implementation phase using lean principles, DFM/A, and 3P. Lean Design requires the application of the VE methodology to be effectively applied. 5/21/2009 Wixson Value Associates Inc. 3
  6. 6. Waste in Product Development Reinvention Lean Design teams appreciate the value of knowledge, and ensure that knowledge is easy to capture, reuse and always used to make decisions, thus avoiding reinvention of key products or features Excess Requirements Lean Design teams recognize that every extra feature or performance enhancement must be designed, produced, maintained and supported – and customers pay the price in greater complexity and greater risk of failure (Design to Cost is important). Overloaded Resources Lean Design teams know that overloading resources makes them slower and less flexible, and that task-switching costs engineers valuable time. Unintegrated Design Lean Design teams strive to understand and then manage their designs in an integrated system, so that they can focus innovation on areas that improve the market performance of their entire portfolio of products. 5/21/2009 Wixson Value Associates Inc. 4
  7. 7. Serial Product Evolution (A Language Problem) Identify Satisfy Marketing Engineering Production opportunity need Express Conceptualize Produce Need solution Products 5/21/2009 Wixson Value Associates Inc. 5
  8. 8. A Failure to Communicate 5/21/2009 Wixson Value Associates Inc. 6
  9. 9. A Product Definition Process…….. Traditional Product Cycle Rework Rework Rework Rework Rework Configuration Design Analyze Build Plan Schedule Build Co-located Team Environment Lean Design Product Cycle TEAM Savings in Time to market Product cost Life Cycle Cost Configuration Design / Analyze / Build Plan / Schedule Build Etc. 5/21/2009 Wixson Value Associates Inc. 7
  10. 10. What is Value Engineering? VE is an intensive, interdisciplinary problem solving activity. VE is uses an organized approach toward problem solving. VE focuses on the functions performed by products, products, or services and what is required to perform these functions safely and at the lowest possible cost consistent with customer requirements. 5/21/2009 Wixson Value Associates Inc. 8
  11. 11. What is Value Engineering? Value Engineering is a proven methodology that has saved private industry and governmental agencies $Billions since its inception in 1947. Value Engineering can be used to generate significant cost savings and cost avoidance by identifying potential problems and ways to avoid these problems before they occur. The VE approach promotes the philosophy of “Do It Right the First Time.” 5/21/2009 Wixson Value Associates Inc. 9
  12. 12. Value Study Methodology The value team study process matches the “quick-hit”, “small team” process that Tom Peters and Nancy Austin describe in, A Passion for Excellence, as a powerful alternative to the “throw resources at it” approach to problem solving (Peters and Austin, 1985). The strength of the value team process we use is in the pre- study phase, especially when the Executive Review Board (ERB) members include the Customer (Air Force, Army, Navy, airlines, FAA, etc), and suppliers. (ERB is described in the attached pre-event paper.) 5/21/2009 Wixson Value Associates Inc. 10
  13. 13. VM, Six Sigma and Lean? Doing Things Right is the main focus of Lean and Six Sigma (Process Improvement) (Customer Satisfaction) Doing The Right Thing is the main focus of Value Methodology (Function/Cost balance) (Customer Perceived Value) Both Are Required for economic profit 5/21/2009 Wixson Value Associates Inc. 11
  14. 14. Lean Design - Goals Resource Efficient – LEAN Capable of very high yields regardless of volume Not affected by process variation: Robust Lead to a “flawless launch” Meets Performance Targets (Quality) Meets Delivery Targets (On Time) Meets Financial Targets (Target Cost) 5/21/2009 Wixson Value Associates Inc. 12
  15. 15. Lean Design - Process Identify Customer requirements VE, QFD, Critical to Quality (CTQ) Estimate Baseline Benchmark, Patent search, Product Scorecard, Process Map, VSM Determine Functional Requirements VE, DFMA Generate, Evaluate, Select Design & Process Concept(s) VE, 3P, TRIZ, Brainstorm, Ways of Nature, etc. Optimize Design and Process Concepts DOE, CAE, FEA, Simulation, Analytical models. Verify Design and Process PFMEA, Design Verification Planning and Reporting (DVP&R), Production Part Approval Process (PPAP) Maintain the Gains Control Plan, SPC, Kaizen (from Superfactory, Lean Enterprise Series) 5/21/2009 Wixson Value Associates Inc. 13
  16. 16. PPAP Production Part Approval Process: The Production Part Approval Process (PPAP) outlines the methods used for approval of production and service commodities, including bulk materials, up to and including part submission warrant in the Advanced Quality Planning process. The purpose of the PPAP process is to ensure that suppliers of components comply with the design specification and can run consistently without affecting the customer line and improving the quality systems. PPAP ensures that you will achieve the first time quality and will lower down the cost of quality. 5/21/2009 Wixson Value Associates Inc. 14
  17. 17. Example Tools Used in the VE Job Plan Project Implementation Project Sessions Planning Frame Issue Information Speculation Planning/Presentation Post-Sessions Search Select Investigate Analyze Speculate Evaluate Develop Present Implement Verify < > < > < > < Cost > < > Question- FAST Cause and FAST Brainstorm Champion Analysis VU Charts SPC Project aires Hi-Cost Effect Pareto Cluster GFI-Delphi Benefit/ Flip Charts Check Lists Mgmt. Brainstorm Drivers Check Lists Function Nominal Rank and Milestones Question- Risk MBO Issues and Mgmt. Scatter Dia. Analysis Group Rate Strategy aires Control IPT Concerns Focus Flow Charts Cost Imagineer- Pareto Proposal Histograms Chart Leadership Action Log Agendas Cost Model Analysis ing Benchmark ROA/ROI Dev. Control Brainstorm Items Impact Problem Histograms Experts Paired VSM Charts IRR CM Process Change- Definition Impact Other Comp. Run Charts Brainstorm Design for Check ability Cost Change- Creative Multivoting Break-even Avg. and Assy & Mfg. Nominal Pareto Targeting ability Thinking Cause and Range Analysis FAST Group Histograms Imagineer- Life-Cycle- Techniques Effect Charts Regression AIW Scatter Ana. ing Cost Alloc. Impact Lean Event CM Analysis Decision Nominal Design for Change- Market Analysis Group Assy & Mfg ability Survey Charter Brainstorm Value Stream Histograms Arrow Document Run Charts mapping DOE Diagram Avg. and (VSM). FAST Affinity Range TOC Diagram Charts Design for Life-Cycle- QFD Assy & Mfg Cost Ana. TOC VSM. FAST VSM 5/21/2009 Wixson Value Associates Inc. 15
  18. 18. Value Methodology Timeline Larry Miles VE adopted assigned to by NASA ofc cost of facilities. Gov’t reduction at Bill Allen agencies GE initiates Charles adopt VE in Boeing VE Bytheway compliance Program - invents with OMB C 1958 FAST – A-131 Navy adds VE included 1968 – ‘69 Jerry VE in ASPR for Kaufman incentive updates Invents Concept – military Larry Boeing on clause Larry Miles VE/FAST Value = Function / procurements Miles takes VE to - 1989 Cost dies. Japan. 1947 1952 1955 1959 1962 1964 1969 1985 1988 1990 1993 Today 1970 VE a success, SAVE Army OMB training of formed in Corps of First VE OMB circular A- employees and Wash. DC Engineers incentive circular A- 131 passes suppliers on Oct.22, begins VE clause 131 “Sunset begins 1959 training published in published Review” Fed. Register, requiring all Boeing VE GSA staffs Federal Program Agencies to for VE. stopped - use VE to 1968 identify and reduce non- essential costs. 16 5/21/2009 Wixson Value Associates Inc.
  19. 19. FEDERAL DEPARTMENT OR AGENCY DOLLARS SAVED BY VALUE ENGINEERING -- FY 95 Agency FY-95 VE Savings Defense Department $734,385,000.00 Department of Transportation $686,373,874.00 General Services Administration $109,608,453.00 Army Corps of Engineers $59,554,000.00 Department of the Interior $22,427,840.00 Department of Agriculture $8,764,155.00 Justice Department $5,990,387.00 Veterans Affairs $2,270,800.00 Health & Human Services $1,884,464.00 Agency for International Development $800,000.00 State Department $91,721.00 TOTAL $1,632,150,694.00 5/21/2009 Wixson Value Associates Inc. 17
  20. 20. SUMMARY OF PAST VE SAVINGS Federal-Aid Highway Program FY 2007 FY 2006 FY 2005 FY 2004 FY 2003 Number of VE Studies 316 251 300 324 309 Cost of VE Studies Plus Administrative Costs $12.54 Mil $8.15 Mil. $9.80 Mil. $7.67 Mil. $8.42 Mil Estimated Construction Cost of Projects Studied $24.81 Bil $21.53 Bil. $31.58 Bil. $18.7 Bil. $20.48 Bil. Total No. of Recommendations 2861 1924 2427 1794 1909 Total Value of Recommendations $4.60 Bil $3.06 Bil. $6.76 Bil. $3.04 Bil. $1.97 Bil. No. of Approved Recommendations 1233 996 1077 793 794 Value of Approved Recommendations $1.97 Bil. $1.785 Bil. $3.187 Bil. $1.115 Bil. $1.110 Bil. Return on Investment 157:01 219:01 325:01 145:01 132:01 Avg. project savings: 8% http://www.fhwa.dot.gov/ve/index.cfm 5/21/2009 Wixson Value Associates Inc. 18
  21. 21. Thought for the day: When you always do what you have always done - you always get what you have always gotten. Socrates 5/21/2009 Wixson Value Associates Inc. 19
  22. 22. Who Casts the Biggest Shadow? Influence 70% 20% 5% 5% Overhead 30% Labor Material 15% Design 50% 5% Product Cost 5/21/2009 Wixson Value Associates Inc. 20
  23. 23. When to do Value Engineering? 5% Cost Expended 85% of Cost Committed Percent of Life-Cycle 100 Cost Committed 90 95 80 85 Percent 70 70 60 50 40 30 30 Percent of Program 20 Cost Expended Brief Window of Opportunity 10 5 0 Concept Preliminary Detail Production Development Design Design Product Development Phase 5/21/2009 Wixson Value Associates Inc. 42 21
  24. 24. When to do VE? No engineering Document Revision Change 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. Engineering &Production Concept Design Production Release 5/21/2009 Wixson Value Associates Inc. 22
  25. 25. Definition and Scope Lean Design Life Cycle Scope Market Conceptual Program Test Delivery In-Service Research Design Go-ahead Performance Voice of MDTC/Design to Cost Value Analysis the Customer Phase 0 Value Engineering Value Engineering Design for Manufacturing & Assembly Product Development Phase 5/21/2009 Wixson Value Associates Inc. 23
  26. 26. Creating a Culture for Innovation Innovation is not a solo sport despite all the mythology. It requires a team using a well structured work session. “Innovation comes far more often from a diverse team, freely exchanging ideas, than it does from a solitary genius or an insulated team with the occasional “aha” moment along the way.” Jim McNerney 5/21/2009 Wixson Value Associates Inc. 24
  27. 27. The Synergistic Effect of Value Analysis/Value Engineering INFORMATION HELD BY ONE MEMBER ONLY INFORMATION HELD BY TWO OR MORE MEMBERS INFORMATION OR EXPERIENCE COMMON TO ALL 5/21/2009 Wixson Value Associates Inc. 25
  28. 28. VE Task Team Core Team Support Support Support Support Support Support Core team consists of5 to 8 PARTICIPANTS OPTIMAL 5/21/2009 Wixson Value Associates Inc. 26
  29. 29. Definitions Value Study - The overarching objective of a value study is to improve the value of the project. Job Plan – Provides the structure for the Value Study which is part of a three-stage process which includes: 1. Pre-Workshop preparation 2. Value Workshop which applies the Six Phase Job Plan 3. Post-Workshop documentation and implementation Value Methodology – Provides the process and structure that is used to apply the Value Job Plan used in the Workshop. Value Standard – Establishes the specific six-phase sequential Job Plan process and outlines the objectives of each of those phases. It does not standardize the specific activities that are used to accomplish each phase. Value Engineering Study: A study used in the design phases of product development to establish the functions, target costs, and preferred alternative(s) for a new, or revised product. Value Analysis Study: A study on an existing product used to improve product performance, lower cost or improve reliability and maintainability. Note: Value Engineering and Value Analysis are often used synonymously and are encompassed by the term “Value Methodology.” LDB/P: Lean Design Build Process – An VM study supported by DFMA and 3P. DFM/A®: Design for Manufacturing and Assembly (DFMA is a registered trademark of Boothroyd Dewhurst Inc.) 3P: The Production Preparation and Planning process. 5/21/2009 Wixson Value Associates Inc. 27
  30. 30. The Value Job Plan Concept Systematic guide to ensure everyone is focused on exactly what they are trying to do Get knowledge Develop understanding Create ideas Develop and sell innovations Each phase involves different types of thinking ...each completed exhaustively before the next is begun ...otherwise they will slur back and forth and get little done 5/21/2009 Wixson Value Associates Inc. 28
  31. 31. The VM Study Methodology From the General to the Specific Information & Function Creativity & Development Implementation Phase Analysis Phase Evaluation Phases Phase 0: Identify Develop and Achieve Get Knowledge / Create Opportunity Sell Innovations Results Dev. Understanding Ideas DEVELOP IMPLEMENT PRESENT PHASE VERIFY Generalized, INVESTIGATE SPECULATE EVALUATE vague ANALYZE SEARCH SELECT concepts or problems nt VM meets customer Di rge needs by providing v Th erge n ve ing the best value solution ink nt ing Co hink for the entire value stream T Detailed CONCEPT PRODUCTION Design & REQUIREMENTS/ DEVELOPMENT PREPARATION Implementation OBJECTIVES/ FUNCTIONS A series of divergent and convergent thought processes that provide a logical path to achieving a solution. 5/21/2009 Wixson Value Associates Inc. 29
  32. 32. Study Job Plan Study Information Phase • Data Collection & Analysis • Issues • Requirements • System models Creative Phase Pre-Study • Create Quantity of Ideas by Function Select Project Evaluation Phase Define Problem/Opportunity • Rank and Rate Alternative Ideas Post-study Establish Goals/Constraints • Select Ideas for Development Determine Evaluation Metrics Validate Changes Scope the Study Commit changes Development Phase Determine Team Implement Changes • Conduct Benefit Analysis Study Preparation Plan Monitor Status • Complete Technical Data Package • Create Implementation Plan • Prepare Final Proposals Presentation Phase • Present Oral Report • Obtain Commitments for Implementation 5/21/2009 Wixson Value Associates Inc. 30
  33. 33. Pre-Study Identify Project Frame Project (Team pre-event option, 1 to 2 days) Define Problem/Opportunity Set Goals Establish Proposal Metrics Identify Perceived Constraints Scope Project Establish Study Team Structure Develop Study Action Plan Brief Executive Review Board (ERB) for Commitment Event Preparation Collect data Event Logistics 5/21/2009 Wixson Value Associates Inc. 31
  34. 34. PROFIT COST PROFIT Product Performance Profile PROFIT COST COST alue Concerns/Expectations alue Management Displaying Attributes alue Scaling Attributes Management Management A. Recurring Cost H. Additional Imposed B. ROLT Attributes should be scaleable, rather than binary. Requirements Cost • Identify opportunities to shrink lead time from product introduction Attributes 1 2 3 4 5 6 7 8 9 10 • Remove installation problems • Surface supplier/contractor issues to drive down costs, lower A. Recurring Cost ($) +.4K Today * -1.5K -4.5K -6.9K rejection rates that impact contractor quality impacts G. All Rejects C. Flow Time 16* B. Re-order Lead Time 33wks 4 • Determine how contractor requirements impact the suppliers • Win/win/win for contractor , supplier and Airlines C. Flow Time (mdays) 30* 15 3 1 0 • Gain a better perspective of the supplier F. Reliability D. Implementation Time D. Implementation Time 18 mo 6 4 2* • Reduce rejection tags Score 408 PRODUCT Bleed Ducts E. Non-Recurring Exp. 20% 30% 50% * • Reduce the flow time in the engineering & mfg. sides of the house Target 650 E. NRE • Continue to meet certification requirements Attribute Cost ROLT Flow Time Impl NRE Reli abili ty Rejects Rqmts Total F. Reliability A Weighting Factor 22 14 12 15 2 15 20 100 • System that does degrade over time - a robust system B Available Points 220 140 120 150 20 150 200 1000 G. All Rejects 5% 3% .003% 0 • Get the best product at the best price C Baseline Score (1-10) 3 5 1 10 10 6 * D Baseline Score (Weighte d) 66 70 12 150 20 0 90 0 408 • Have good feelings about the contractual process with supplier E De lta (B - D) 154 70 108 0 0 0 60 200 592 H. Add. Reqmt’s Cost *-15% -34% F Proposal Score (1-10) • See VE be used throughout company - Expand VE opportunities G Proposal Score (Weighte d) 0 0 0 0 0 0 0 0 0 * Product Benchmark H De lta (B - G) 220 140 120 150 20 0 150 200 1000 J. J. Kaufman Assoc, Inc. PROFIT PROFIT COST PROFIT COST COST alue Problem Definition alue alue Management Weighting Attributes Management Management What is the problem (or opportunity) we are about to resolve? Attributes are prioritized and graded using a “Paired Comparison” processes. The cost/price of the part does not the allow supplier to make an adequate profit margin, contractor to meet product price objectives, and an acceptable cost - of- B C D E F G H I J Attribute Score Weight ownership for the airlines. A A1 C1 A3 A2 0 G2 A3 A. Recurring Cost 9 22% Why do you consider this a problem (or opportunity) ? Producibility and design improvements will allow for less expensive parts. PRE- B B2 B2 B1 C C3 C1 0 G2 H3 0 G1 H3 B. Re-order Lead Time C. Flow Time 6 5 14% 12% Why do we believe a solution is necessary? -OR- D D3 0 D2 D1 D. Implementation Time 6 15% (What is the consequence of not solving the problem?) • Customers demand that contractor hold or reduce our costs. STUDY E 0 G1 H1 F 0 0 E. Non-Recurring Exp. F. Reliability 1 0 2% 0% • Supplier may choose to not renew its contract after 3 years G H1 G. All Rejects 6 15% • New supplier qualification costs. Weighting H. Add. Reqmt’s Cost 8 20% H • Supports contractor in meeting its business plan Factors I • Retain a valuable supplier 1. Low J • Boeing want to build a strong supplier base 2. Medium Total 41 100% • Enable faster delivery of airplanes (reduce A/P flow time) 3. High PROFIT PROFIT COST COST alue Goals COST PROFIT alue Attribute Definitions Management alue Constraints Management Management • Recurring Cost - Total manufacturing cost (material & labor) measured • Unit cost reduction > 21% in $/unit • Maintain or reduce cost-of-ownership TBD • Meet certification requirements • Re-order Lead time-ROLT - Total time from order receipt to on-dock (to airlines-spares) delivery measured in M-days • First article inspection test - September, 1998 (?) • Flow Time - Product received on dock from supplier until product is consumed (installed in engine) M-days • Reorder lead time <16 weeks • First delivery is January 1, 1999 • Implementation Time - (to install changes) Time to plan, make and qualify (80 m-days) (parts built and delivered) engineering changes measured in calendar • Target costs days • All changes incorporated by 1 Jan 99 • Major interfaces and envelop must remain the same • Non-recurring costs - Total cost (contractor & supplier) to develop and implement change measured in % of return in 1 year. Form, fit, function - transparent • All rejections - Number of part discrepancies for workmanship, quality, • Point of use delivery of parts 100% • Engine interface loads fit, form, function issues. Measured in % of rejections per year . • Additional Imposed Requirements Costs - The additional costs to • Meet current operating envelope of engine manufacture the parts in accordance with the drawings measured in % reduction. • 100% radiographic inspection 5/21/2009 Wixson Value Associates Inc. 32
  35. 35. The Processing of Information FACT FINDING • What do you need to know about the problem that you don’t know now? • What facts are known? • Are these facts, opinions, assumptions, or prejudices? • Where, or how can information be obtained? RECORD ALL INFORMATION J. J. Kaufman Associates, Inc. 5/21/2009 Wixson Value Associates Inc. 33
  36. 36. THREE KEY QUESTIONS PROBLEM DEFINITION - TEAM BUILDING 1. What is the problem/opportunity we are about to discuss? 2. Why do you consider this a problem, or opportunity? 3. Why do you believe a solution is necessary? 5/21/2009 Wixson Value Associates Inc. 34
  37. 37. The Value Methodology Value Method Value Method Value Management is a methodology, …. a structured, step-by-step PRE- procedure for solving Planning, Process, Business and Engineering PRE-STUDY ORGANIZATION POST THE IMPLEMENTATION PHASE STUDY problems and capturing opportunities. STUDY It is not a tool. … It is made-up of a • Brief Management Assure implementation of proposals Set of tools that complement common initiatives. • Select Project • Complete changes The VM process takes multi-disciplined project representatives, • Structure Team molds them into a high performance team, and quickly (1 to 3 • Implement changes • Gather Information weeks) guides the team to the resolution of the project issues. • Monitor status The Process is particularly applicable for both “small” projects, as • FOLLOW-UP • Plan Workshop well as resolving key issues within much larger projects. • Confirm Commitment (The Society of American Value Engineers (SAVE) has recently change their name to SAVE Success is achieved after International, The Value Society, and the name of the VA/VE Process to “Value Methodology” verification rather than “Value Analysis/Value Engineering” due to emerging broader application of the process. The term “Value Management” is being used when an organization employs the Value Methodology for “Managing Value”.) Value Method Value Method Value Method THE VALUE METHODOLOGY PRE- JOB PLAN THE PRESENTATION PHASE THE INFORMATION PHASE POST STUDY STUDY • Analyze Information • Package Proposals • Define Problem • Develop Sales Strategy • Set Targets • Assess Attributes SUCCESS • Plan Presentation INFORMATION • Identify Constraints PRESENTATION • Present Proposal • Isolate Functions • Develop FAST Model • CLOSE • Dimension FAST Model CREATIVE DEVELOPMENT EVALUATION Value Method Value Method Value Method THE CREATIVE PHASE THE DEVELOPMENT PHASE THE EVALUATION PHASE • Brainstorm Functions • Develop Potential Proposals • Cluster Ideas • Generate Ideas (not solutions) • Perform Benefit/Risk Analysis • Identify Champions • Score Attributes • Record Ideas • Screen Ideas • Determine Pay-Back • Avoid Roadblocks • Rank and Select Ideas • Validate Assumptions • Suspend Judgment • Expand Surviving Ideas • Create Implementation Plan Value Management presentation developed by W. Marlo Stebner in cooperation with J.J. Kaufman, Associates, Inc.
  38. 38. Value Engineering Gather Value Engineering (VE) - is a systematic activity used during Information product development to reduce costs without loss of product Define the performance. The scope of value engineering includes design cost Function(s) reduction, process improvements and supplier cost reductions Brainstorm Evaluate Investigate Recommend 5/21/2009 Wixson Value Associates Inc. 36
  39. 39. Lean Design Methodologies Core • Process Costing – ability to provide visibility & analysis of Tools costs by business or manufacturing process • Component Costing – frequently used with VE to determine where cost drivers & CERs are within the design, manufacture or assembly of a part(s) • Feature to Function Costing – determines if a customer’s features can be satisfied by the function(s) of a product and, if so, is it within the customer’s price expectations • Design for Manufacturability and Assembly (DFM/A) – strives for the most effective process to make & assemble parts • Benchmarking – comparative cost or process performance data • Multiyear product/profit plan matrix – integrates data on revenues, spending, & investment over a multiple year time period • Cost Tables – sources of detailed cost information • Value Engineering/Value Analysis (VE/VA) – organized efforts directed at analyzing the functions of products, processes, & services to achieve the lowest overall costs with no reduction in performance • Quality Function Deployment (QFD)/ Voice of the Customer(VOC) - ranked & rated customer & tech design rqmts. that can be measured & controlled by the integrated product & process development team 5/21/2009 Wixson Value Associates Inc. 37
  40. 40. The Value Methodology TOOLS DFMA FAST 3P QFD VSM TRIZ Barriers METHODOLOGY Lean Design w/VE SUCCESS 5/21/2009 Wixson Value Associates Inc. 38
  41. 41. The Value Methodology Process Sponsor $ Opportunity 1 2 3 PROJECT Team PLAN Implementation 4 7 = 5 8 0 6 9 = Event Collect Identify Analyze & Prepare Present Approval & Pre-Study Proposal Information Alternatives Screen Proposals Funding Plan Brainstorm How Why J. J. Kaufman Associates, Inc. 5/21/2009 Wixson Value Associates Inc. 39
  42. 42. Cost vs. Performance Cost Tolerance Zone Project Cost C O Target Cost S T Performance Tolerance Zone Performance 5/21/2009 Wixson Value Associates Inc. 40
  43. 43. Target Allocation Workshop The IDEAL - Linkage to Customer Requirements Voice of the Customer Approach • Customer requirements • Estimated cost distribution • Correlation of requirements to components (QFD) • Evaluation of Value Index • Target setting to value IPT’s need to focus cost reduction on “value matching” 5/21/2009 Wixson Value Associates Inc. 41
  44. 44. Concept of Value FUNCTION VALUE = COST 5/21/2009 Wixson Value Associates Inc. 42
  45. 45. Concept of Value Esteem + Exchange + Utility Value = Cost 5/21/2009 Wixson Value Associates Inc. 43
  46. 46. Concepts of Value - Desirable Ideal Good Acceptable Passable Function Function Value = Cost Cost 5/21/2009 Wixson Value Associates Inc. 44
  47. 47. Concepts of Value - Undesirable Undesirable but Passable (cheapening the product) Function Function Value = Cost Cost 5/21/2009 Wixson Value Associates Inc. 45
  48. 48. Function Analysis Function Analysis is the key to understanding the problem. The first step is to brainstorm all possible functions of the product/process/system. Next, build a FAST Model to help identify any missing functions. 5/21/2009 Wixson Value Associates Inc. 46
  49. 49. Fast Modeling 5/21/2009 Wixson Value Associates Inc. 47
  50. 50. Benefits of Functional Thinking The function analysis system technique process (FAST) helps task teams plan projects, develop technical and business processes and procedures, and modify organizations for leaner, more effective performance. FAST displays functionally what has to be done and identifies dependent functions (how) and the reason for selecting those functions (why). Thinking functionally shifts paradigms and helps task teams innovate by changing the way they normally think about solving problems and capturing opportunities. Two basic questions are at the heart of FAST Why? and How? If ask strategically they will open the door to a wealth of information hidden under levels of assumptions and misinformation Once learned, thinking and speaking functionally allows team members to communicate with anyone, regardless of their technical or professional background. 5/21/2009 Wixson Value Associates Inc. 48
  51. 51. Synergism 5/21/2009 Wixson Value Associates Inc. 49
  52. 52. The Value Methodology FAST A Logically Diagramed Function Relationship FAST FAST FAST FAST 5/21/2009 Wixson Value Associates Inc. 50
  53. 53. Concepts of Function 5/21/2009 Wixson Value Associates Inc. 51
  54. 54. Concepts of Function 5/21/2009 Wixson Value Associates Inc. 52
  55. 55. Function Analysis Functions - Describe what something does Functions - Use active verb and measurable noun FAST (Function Analysis System Technique) - A logic diagram to describe how a system works. Examples of Verbs and Nouns: Active Verbs Nouns Transmit Signal Irradiate Information Project Data Dissipate Heat Generate Radiation Convert Current Receive Light Reflect Image 5/21/2009 Wixson Value Associates Inc. 53
  56. 56. FAST Diagramming Function Analysis System Technique Developed in 1964 by Charles W. Bytheway Applies intuitive logic to test functions Displays functions in a diagram or model form Identifies dependence between functions Creates common language for team Tests validity of functions No “correct” FAST model - team consensus 5/21/2009 Wixson Value Associates Inc. 54
  57. 57. Function Analysis Intuitive Logic HOW WHY FUNCTION FUNCTION FUNCTION (GOAL) (METHOD) 5/21/2009 Wixson Value Associates Inc. 55
  58. 58. Function Analysis Functions - Describe what something does Functions - Use active verb and measurable noun FAST (Function Analysis System Technique) - A logic diagram to describe how a system works. Examples of Verbs and Nouns: Active Verbs Nouns Transmit Signal Irradiate Information Project Data Dissipate Heat Generate Radiation Convert Current Receive Light Reflect Image 5/21/2009 Wixson Value Associates Inc. 56
  59. 59. FAST Diagramming Function Analysis System Technique Developed in 1964 by Charles W. Bytheway Applies intuitive logic to test functions Displays functions in a diagram or model form Identifies dependence between functions Creates common language for team Tests validity of functions No “correct” FAST model - team consensus 5/21/2009 Wixson Value Associates Inc. 57
  60. 60. Basic FAST Model HOW Minor Logic Path WHY Objective Independent WHEN or (Support) Specification Function Major Logic Path Concept Objective Independent or (Support) Specification Function Higher Dependent Lower Basic Order Order Function (Secondary) Function Function (AND) (OR) Function Concept Activity Left Scope Line Right Scope Line Scope of the Problem RESPONSIBILITY/COST MATRIX Symbol 5/21/2009 Wixson Value Associates Inc. 58
  62. 62. IMAGINATION Imagination is more important than knowledge, for knowledge is limited, while imagination embraces the entire world. Albert Einstein 5/21/2009 Wixson Value Associates Inc. 60
  63. 63. Lean Design and 3P Integration Production Preparation Lean Design = VE + DFMA Process 3P Robust requirements validation Flowing production with high quality (Poke yoke) that is reliable Functional analysis of product and predictable Requirements and function Moonshine and rapid prototyping linkage to components to validate product / production Design to production/program design attributes Simulation of to be fabrication and Innovative and creative concepts assy processes Less parts Product flow – Fishbone Diagram Fewer steps in Mfg and Assy Right sized assets Reduces design and mfg rework Equipment Determine production processes Tooling Design to enable takt time and People poka-yoke Production paced to Takt Time Lead time reduction Standard work and work in process Lead time reduction 5/21/2009 Wixson Value Associates Inc. 61