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Value_engineering_in process engineering
- 1. Value Engineering andValue Analysis
- 2. Overview • What isValue Engineering? • How is VE Applied? • When is it used? • What is Function Analys is and FAST?
- 3. Definitions 🔜Value Engineering:-is atechnique applied to identifying optimum value solutions during new product development. 🔜Value analysis:- is a technique applied to improving existing products, processesor services. 🔜The objective is usually to reduce cost, but may equally or simultaneously be to improve performance or quality. -LDMiles
- 4. The Key Pointsof VA /VE • Applying formal workplans. • A team approach. • Specific definition of functions. • The simultaneous look at functions and costs. • Control of the analysis process. • Quantifiable results
- 5. What is VE? Valueis the relationship between the defined function the customer requires and the costs incurred to provide that function. – Cost Value – Use Value – Esteem Value – Exchange Value
- 6. Value Engineering 🔜Value Engineeringis: • Reliability • Maintainability • Producibility • Human Factors • Parts Availability • CycleTime • Quality • Weight Reduction
- 7. Why use ValueEngineering? Save Time Save Money Build Teamwork Improve Quality Satisfy Customer
- 8. When is VEused? • Existing part/product cost is high • Existing technology is complex/old though simpler means are available • There is a need to release a cheaper product by cutting down some of the existing feature • The existing customer demands a minimal increment in product features that are in use • There is a need to cutdown the manufacturing cycle time/cost
- 9. When isVE used •Value Engineering:-is used to determine the best design alternatives for Projects, Processes, Products, or Services • Value Engineering is used to reduce cost on existing Projects, Processes, Products, or Services. • Value Engineering is used to improve quality, increase reliability and availability, and customer satisfaction . • Value Engineering is also used to improve organizational performance. • Value Engineering is a powerful tool used to identify problems and develop recommended solutions.
- 10. Benefits of VE •Decreasing costs • Increasing profits • Improving quality • Expanding marketshare • Saving time • Solving problems • Using resources more effectively
- 11. VE’s Weaknesses ⮞Successful VEresults are dependent on the of information brought to the VE workshop for evaluation. ⮞VE is not time oriented ,but product oriented. Thus,improvements in production activities are not readily recognized. ⮞There are many misunderstandings and biases against VE that have been built up overtime due to misuse of the methodology. “It cheapens the product without improving it.” “VE is only used for costreduction.”
- 12. Value Engineering Research Questionsand Check Sheet 1.Can it be eliminated without impairing function or reliability? 2. Does it cost more than its worth? 3.Does it do more than is required? Are there unnecessary features? 4.Is there something better with which to do the job?
- 13. Value Engineering Research Questionsand Check Sheet 5.Can it be made by a less costly method? 6.Can a standard item or specialty product be used? 7.Could a less costly manufacturing technique be used? 8. Should different tooling be used? 9.Can some one else provide it at less cost without affecting dependability?
- 14. Potential Savings fromVE No engineering Change Revision Document 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. Concept Design Engineering &Production Release Production
- 15. What is value? VALUE=Whatwe get out of something What we put into it VALUE = Quality, reliability, appeal, etc = Benefits Cost, time, mass, energy, etc. Resources VALUE = Worth Performance Cost Delivery of necessary project functions while achieving best balance between project performance and project costs.
- 16. • Value =Function Cost To Increase Value F F F F C C C C REDUCE INCREASE MAINTAIN
- 17. Competitive Advantage Quality isdefined as“ conformance to specification.” Value is defined as: Function Cost You can’t have one without the other! Competitive Advantage=Quality+Value
- 18. Unnecessary Cost • Anycost that can be removed without impairing the essential – Quality – Performance – Customer requirements – Reliability – Maintainability – Marketability – Schedule
- 19. Criteria for EvaluatingValue • COST • Initialcost • Operations • Maintenance • Return on Investment • Lifecycle • Replacement • Costofcapital • PERFORMANCE • Quality • Stakeholder requirements • Safety • Levelofservice • Environmental Impacts • ScheduleImpacts • Operability • Reliability • Maintainability
- 20. Analysis Phase Generalized Procedurefor VA/VE What is it? What does it do? What does it cost? Is the change better? How much better? Why? Audit effectiveness Use experience Provide feedback How else can the job be done? At what cost? Review with dept sand suppliers Select best alternative Get approval Prepare specifications Evaluation Phase Decision Phase Speculation Phase Information Phase
- 21. Implementation Phase Reporting Phase Planning Phase EvaluationPhase Creativity Phase Information Phase Screen ideas foracceptance, score remaining ideas onascale Brainstormideasonhowtoimprovethehighcost, broken, or inad Clearly identify the problem(s) to be solved, and gatherinform Planhowtosellideastomanagement,identifykey recommendations,planmanagementpresentation. Giveoralpresentationtomanagement,ordevelop written report Get management approval for go-ahead, make management Six Step Value Engineering Job Plan
- 22. 🡆Whatisthetask function? 🡆Whatarethebasic functions? 🡆Whatare the supportingfunctions? 🡆Developaplanto gatherprojectdata 🡆Investigatethe project 🡆Verify data 🡆Howcan disadvantagesbe overcome? 🡆Whyisthenewway better? 🡆Willitmeetallthe requirementswithout compromise of form, f 🡆Whataretheannual savings? POST- STUDY The Value Methodology Job Plan 🡆Who should be sold? 🡆How should the ideas bepresented? 🡆What was the problem? 🡆What is the new way,savings,and benefits? 🡆How will it satisfy our customers? 🡆What is needed to implement the proposals? 🡆Who is responsiblefor implementingthe change? What is to be included in the study? Whoisbestabletostudytheproblem? What are the current and future requirementsofthesubjectunderstudy? Whattype ofimpedimentswilltheteam -Collectuser/customerattitudes Complete data files Determineevaluationfactors Scope the study Build data PRE- STUDY 🡆Howmusteachidea work? 🡆What is the feasibilityof implementation? 🡆Whatwillbethe cost? � �Whenwillw e breakeven? 🡆Whatisthebest 🡆Whatelsecan performthe function? 🡆Whereelsecan the function be performed? 🡆Howelsecanthe functionbe performed? 🡆Presentoral report 🡆Preparewritten report 🡆- Conductbenefit analysis 🡆Completetechnical data 🡆Create implementationPlan 🡆Preparefinal 🡆-Whatisthe problemor opportunity? 🡆Why do you consideritaproblem oropportunity? � �Whyisasolutio n necessary? 🡆Whatisthecost? 🡆Rankandrate alternativeideas � �Selectideasf � �Createquantityo 🡆Identifyfunctions 🡆Classifyfunctions 🡆Developfunction models 🡆Costfunctions 🡆Establishvalue index � �Selectfunctionsfo � �PRESENTATIO NPHASE 🡆Completedata package 🡆Modifyscope � �DEVELOPM � �EVALUATIO � �CREATIVE � �FUNCTIONANA � �INFORMATI
- 23. Verify accomplishments Presentresults Advertiseoutcomes Didthenewwaywork? How much didit cost/save? Didthechangemeet customer’sexpectations? - Complete/ implement changes - Monitor status PropertyofOSCVEOffice
- 24. Information Phase-Fact Finding Whatdo you need to know about the problem that you don’t know now? What facts are known? What are the requirements of the system? Are these facts, opinions, assumptions, or prejudices? Where or how can information be obtained?
- 25. Function Analysis • Shiftsthe problem-solving focus away from the items toward the functions • Function need be defined by two words: an Active Verb and a Measurable Noun • The verb defines the required action; the noun tells what is being acted on • The more abstract the function definition, the greater the opportunities for finding creative alternatives
- 26. FunctionAnalysis FAST(Function AnalysisSystem Technique) -A logic diagram to describe how a system works. Examples of Verbs and Nouns: ActiveVerb sTransmit Irradiate Project Dissipate Generate Convert Receive Reflect Provide (passive!) Noun sSignal Information Data Heat Radiation Current Light Image
- 27. Functions of aNo. 2Pencil Description PencilEras erBand Body Paint Lead FunctionMakes MarksRemoves MarksSecure EraserImprove Appearance Support LeadTransmit Forc eAccommodate Grip Display Information ProtectWoo dImprove Appearance MakesMarks
- 28. FAST Example Functional AnalysisSystem Technique (FAST) Diagram 1.List Desired Outcome and Requirements of Customer in Verb Singular Noun Form Mouse FreeLiving Area=Eliminate Mice
- 29. FASTDiagram 2.List Products andServices that satisfy Desired Outcome (Q4).These Products or services answer WHAT is desired of the system. • Use Cat • CreateVirus • KillMice • EliminateFood
- 30. FASTDiagram • 3. Listall functions in Verb Noun format and processes that would satisfy or produce each product or service in the previous step. • Generate all functions, basic, secondary, support without regard to relationship. KillMice • Trap Mice • ElectrocuteMice • Shoot Mice • GasMice • DrownMice • Use Snake
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- 32. FAST Diagram 4. Selecteach function from the previous step starting with what you believe to be the basic function. Ask HOW this basic function might be accomplished. HOW Eliminate Mice Use Cat Create Virus Kill Mice Eliminate Food Trap Mice ElectrocuteMice Shoot Mice Gas Mice Drown Mice Use Snake PoisonMice POISONMICE KILLMICE
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- 34. POISONMICE KILLMICE FASTDiagram 5. Continue toanswer the HOW and place the answer • directly to the right. • Related functions that are at the same level, stack above or below the CRITICAL PATH HOW Eliminate Mice Use Cat Create Virus Kill Mice Eliminate Food Trap Mice ElectrocuteMice Shoot Mice Gas Mice Drown Mice Use Snake PoisonMice •SprayPoison •InjectPoison •SteponPoison •EatPoison •ShootPoison •EatBait •DrinkBait •SmellBait EATPOISON
- 35. FAST Diagram 6. Continueto answer the HOW and place the answer • directly to the right. • Related functions that are at the same level, stack above or below the CRITICAL PATH HOW WHY KILLMICE POISON MICE EAT POISON EAT BAIT ATTRACT MOUSE Trap Mice Electrocute Mice Shoot Mice Gas Mice Drown Mice Use Snake PoisonMice •SprayPoison •InjectPoison •SteponPoison •EatPoison •ShootPoison •EatBait •DrinkBait •SmellBait •AttractMouse •TrapMouse
- 36. FAST Questions • Howdo we perform the function? • Why do we perform the function? • When do we perform the function? • What is the Desired Outcome? • Where do we perform the function? • Who performs the function?
- 37. The Technical FASTModel HOW ? WHY? INDEPENDENT FUNCTION (SUPPORTING) DEPENDENT FUNCTION OUTPU T OBJECTIVES OR SPECIFICATION S (concept) MINORCRITICALPATH B INDEPENDEN T FUNCTION INPUT MISSION, LOWEST OBJECTIVE, OR HIGHER ORDER BASIC FUNCTION DEPENDEN TFUNCTION A (AND) D E ORDER FUNCTIO FUNCTION (concept) ACTIVITY1 C ACTIVITY 2 W MAJORCRITICAL PATH SCOPEOFTHEPROBLEMUNDERSTUDY E LOWERORDER N HIGHERORDER FUNCTIONS FUNCTIONS H
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- 39. FOCUS IMAGE SUPPORT IMAGE DISSIPATE HEAT GENERATE LIGHT PROJECT IMAGE RECEIVE CURRENT CONVERT ENERGY TRANSMIT CURRENT Supporting Functions F.A.S.TMODEL OVERHEADPROJECTOR HOWWHY (concept) W H E N (concept) AMPLIFY IMAGE GENERAT E NOISE GENERAT E HEAT CONVEY Information
- 40. FOCUS IMAGE SUPPORT IMAGE DISSIPATE HEAT GENERATE LIGHT Objectivesor Specifications F.A.S.TMODEL HOW OVERHEADPROJECTOR WHY OBJECTIVES OR SPECIFICATIONS (concept) W H E N(concept) AMPLIFY IMAGE GENERAT E NOISE GENERAT E HEAT TRANSMIT CURRENT RECEIVE CURRENT CONVERT ENERGY PROJECT IMAGE CONVEY Information ALLOW SAFETY FACILITATE PORTABILITY
- 41. FOCUS IMAGE PROJECT IMAGE CONVEY Information ALLOW SAFETY TRANSMIT CURRENT RECEIVE CURRENT FACILITATE PORTABILITY GENERATE LIGHT AddScope Lines F.A.S.TMODEL HOW OUTPUT W H E N OVERHEADPROJECTOR OBJECTIVESOR SPECIFICATIONS (concept) (concept) WHY INPUT SUPPORT DISSIPATE HEAT AMPLIFY IMAGE GENERAT E NOISE GENERAT E HEAT CONVERT ENERGY
- 42. FOCUS IMAGE GENERAT E HEAT FACILITATE PORTABILITY PROJECT IMAGE CONVEY Information ALLOW SAFETY TRANSMIT CURRENT RECEIVE CURRENT GENERATE LIGHT FASTExample-Overhead Projector HOW? F.A.S.TMODEL OVERHEADPROJECTOR OBJECTIVESOR SPECIFICATIONS WHY? OUTPUT W H E N (concept) (concept) INPUT SUPPORT DISSIPATE HEAT AMPLIFY IMAGE GENERAT E NOISE CONVERT ENERGY
- 43. Creativity Techniques-Brainstorming Generatea large number of ideas -quantity, not quality. Free-wheeling is encouraged -Listen and improve on the ideas of others. Don’t criticize-No evaluation of ideas Encourage everyone to participate Record all ideas presented Time to let ideas “incubate” should be allowed. Select an appropriate meeting place
- 44. understanding FunctionAnalysis Function Analysisis the key to the problem. Brainstorm all possible functions Next, build a FAST Model to help identify any missing functions.
- 45. Other tools thatcan work with VE Activity Based Costing (ABC) Cost Function Matrix Failure Modes and Effects Analysis (FMEA) Risk Analysis Tools Other traditional quality tools such as pareto analysis, is hakawa diagrams, scatter diagrams, etc. Function analysis is the key to understanding ▶ the system and what it does. Function analysis enables you to analyze the problem from a system perspective.
- 46. The Planning &Reporting Phases • Planning What is recommended? Who has to approve it? What is the implementation plan? Are mockups or prototypes required to verify final decisions? What are the cost, schedule, and deliverables? ROI?
- 47. ACTION PLAN GUIDELINES ⮞“Whatneeds to be done?” Identify the actions needed to “solidify” ▶ the proposals. ⮞“Who should be assigned the action?” Assign a team ▶ member. Assign a completion date for the ▶ action. ⮞“When should the task be completed?” Plan regular team status ▶ meetings. Anticipate 4-6 weeks to complete the actions.
- 48. Implementation Planning ⮞Ideas mustbe planned and managed to ensureimplementation. ⮞Proposed actions should be managed likea project with specific end products ,defined start and end dates, and funding limits.
- 49. The Planning &Reporting Phase • Reporting Give oral presentation. Support it with written executive brief. Be clear,concise,and positive. Anticipate road blocks
- 50. Analysis of EachComponent • Can any part be eliminated without impairing the operation of the complete unit? • Can the design of the part be simplified to reduce its basic cost? • Can the design of the part be changed to permit the use of simplified or less costly production methods? • Can less expensive but equally satisfactory materials be used in the part? • Design simplifications frequently are more apparent than is possible under the original design
- 51. The Value EngineeringChecklist 1. Can the item be eliminated? 2. If the item is not standard, can a standard item be used? 3. If it is a standard item, does it completely fit the application, or is it a misfit? 4. Does the item have greater capacity than required? 5. Can the weight be reduced? 6. Is there a similar item in inventory that could be substituted? 7. Are closer tolerances specified than are necessary?
- 52. TheValueEngineeringChecklist 8. Can youmake the item less expensively in your plant? If you are making it now, can you buy it for less? 9. Can cost of packaging be reduced? 10.Are suppliers contributing suggestions to reduce cost?
- 53. Concluding Remarks • Thedesign stage provides the greatest opportunity to reduce costs
- 54. REMEMBER! Value Analysis:- ▶ isa continuous process