The document discusses improving product development through value engineering, emphasizing collaboration, exploration, and innovation focused on customer value. It highlights the significance of product design in influencing manufacturing costs, and presents a structured methodology for problem-solving and cost reduction. The approach aims to enhance performance and competitiveness while minimizing risks in product design and delivery.

1. Improving Product Development with Value Engineering http://www.linkedin.com/in/brucesauter A Framework for Synergy, Collaboration, Exploration, Discovery & Innovation

2. Customer / Consumer Value Customer/End-User Value What the customer got What it cost the customer = got = Product , Delivery, Service, Fast Response, Programs, Merchandising, Credit, Relationship, Accuracy, Reliable Information, Problem Solving, Technical Assistance, Sales Person/Rep, Cheerfulness, Sympathy cost = Price , Problems, Hassle, Time, Confusion, Misunderstanding, Fear, Frustration, Unnecessary Repeat Phone Calls, Processing Deductions, Returnable Product.

3. Material Overhead Labor Product Design 50% 20% 30% 5% 5% 15% 5% 70% Cost % Influence % Product design accounts for only 5% of a product’s total cost, however, it dictates about 70% of the products total accounted manufacturing cost. Product Design Influence

4. Customer / Consumer Focused Value Engineering Multi-Functional Team approach Methodology for solving problems and/or reducing costs Achieves cost effective results and avoids unnecessary costs Improves performance of products, processes and services Improve competitiveness Reduce risks and increases possibility of success

5. Function User Demands Products & Parts Physical Properties Functional Properties Function Definition Design Converting User Requirements into Physical Products Customer / Consumer Focused Value Engineering

6. Value Engineering Methodology Function Cost Creative Problem Solving

7. Value Engineering Methodology Function Cost Identify Function Cost Reduction Identify Opportunity Creative Problem Solving

8. Value Engineering Methodology Function Cost Identify Function Criteria & Constraints Cost Reduction Obtain Costs Identify Opportunity Fact Finding Creative Problem Solving

9. Value Engineering Methodology Function Cost Identify Function Criteria & Constraints Alternate Methods Cost Reduction Obtain Costs Compare Costs Identify Opportunity Fact Finding Ideation Creative Problem Solving

10. Value Engineering Methodology Function Cost Identify Function Criteria & Constraints Alternate Methods Ideas vs. Criteria Cost Reduction Obtain Costs Compare Costs Evaluate Cost Identify Opportunity Fact Finding Ideation Judgement & Selection Creative Problem Solving Development of Ideas

11. Value Engineering Methodology Function Cost Identify Function Criteria & Constraints Alternate Methods Ideas vs. Criteria Cost Reduction Obtain Costs Compare Costs Evaluate Cost Identify Opportunity Fact Finding Ideation Judgement & Selection Creative Problem Solving Development of Ideas Technical Review Team Review

12. Improving Product Development with Value Engineering A Framework for Synergy, Collaboration, Exploration, Discovery & Innovation http://www.linkedin.com/in/brucesauter