Value Engineering VA VE PDF

VALUE ENGINEERING
Presented by
B.S.Subrahmanian
bsstqm@gmail.com
Hogwarts School of Improvement Initiatives
Value Engineering
Introduction
Definition of Value
Value Engineering Competitive Analysis &
Value Management & Applications Benchmarking
Creative Thinking Cost estimation
Reasons for Poor Value Application of DFMA Software
FAST Tooling Considerations
FAST Techniques Evaluation Phase
VE Job Plan The Team
Value Engineering Phases Recommendation Phase
Orientation Phase Implementation Phase
Information Phase Audit Phase
Function Analysis Phase Case Studies & Exercises
Creative Phase
Idea Generation & Brainstorming Phase

Value Engineering
Introduction
The event that triggered the development of VE was the

Asbestos Affair, which occurred in 1947 at the General
Electric Company, in the U.S. A task force led by
Lawrence D. Miles (Jerry Leftow, and Harry Erlicher) was
organized to find the best method of improving the value
of any given product.
Value Engineering
Introduction
Miles VA Definition
Value Analysis is a
disciplined action system,
attuned to one specific need:
accomplishing the functions
that the customer needs and
wants... at the lowest cost.

Value Engineering
Introduction
INDIAN VALUE ENGINEERING

SOCIETY
INVEST
INVAVE
www.invest-in.org

Value Engineering
Introduction

Value Engineering
Introduction
Differentiating Hard and Soft Situations
A very soft A very

problem hard
problem
What can we do How do

about situations we repair
such as the this flat
Koodangulam ? tyre?

Value Engineering
Introduction
Hard Problem Situations

Clearly defined problem boundary
Design and Modify an

construct a new existing
bridge product
Note: The What has already been decided. The

problem is How to.

Value Engineering
Introduction
Soft Problem Situations

Soft, fuzzy problem-boundaries
The
Allowing traffic to
cross a river, problem is
taking into account What do
environmental,
heritage, cultural we do?
and social issues

Value Engineering
Introduction
Traditional Value Analysis

and Value Engineering
VA and VE have tended to

addresses hard problem
situations

Value Engineering
Introduction
What VE is.
An organised study of Functions and Cost

A co-operative effort of several departments
A continuing dynamic programme
An objective appraisal of practical
alternatives
A rejection of complacency

Value Engineering
Introduction
What VE is not.
A sacrifice of quality
A crash cost reduction method
A one-time gimmick
A monopoly of one department
A criticism of existing design, process,
method or system.
A magical tool to reduce cost

Value Engineering
Introduction
When is VE 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.

Value Engineering
Introduction
Why use Value

Engineering?
Save Time
Save Money
Build Teamwork
Improve Quality
Satisfy Customer

Value Engineering
Introduction
Conventional VA/VE view of value
V=F/C
Value for money =

Function
Cost ( of resources)

Value Engineering
Introduction
What is Value
The value of an item must not be

based on its price but rather on
the utility which it yields
Bernoulli D. (1738)

Value Engineering
Introduction

Value Engineering
Introduction

Value Engineering
Introduction
What is Value
Benefit
Usefulness
(utility or
function)
Importance

Value Engineering
Introduction
What is Value
An ascribed attribute or
property of something which
is based on perceived
usefulness, importance and
benefit.

Value Engineering
Introduction
Value for Money
Benefit
Usefulness
Importance
Rs.

Value Engineering
Introduction
Value for Resources Used or Exchanged
Resources
Benefit
Usefulness
Importance

Value Engineering
Introduction
Key
Value
Questions
Is it Useful?
Is it beneficial? Is it important?
Is it worth it?

Value Engineering
Introduction
Key Value Question
Are these outcomes

worth these resources?

Value Engineering
JOB PLAN

Value Engineering
JOB PLAN

Value Engineering
JOB PLAN
Six Step Value Engineering Job Plan

Information Clearly identify the problem(s) to be solved, and
Phase gather information on the background, functions and
requirements of the product, process, or system.
Creativity Brainstorm ideas on how to improve the high cost,

Phase broken, or inadequately performed key functions.
Screen ideas for acceptance, score remaining ideas

Evaluation on a scale and group ideas into categories. Develop
Phase design scenarios, and selection criteria. Rate and
rank ideas.
Planning Plan how to sell ideas to management, identify key

Phase recommendations, plan management presentation.
Reporting Give oral presentation to management, or develop

Phase written report.
Get management approval for go-ahead, make

Implementation management plan, make assignments, implement,
Phase
follow-up. Value Engineering
JOB PLAN

Value Engineering
JOB PLAN

Value Engineering
SELECTION PHASE
Some
guidelines for
selection of
projects

Value Engineering
SELECTION PHASE
Some more guidelines for

selection of projects

Value Engineering
SELECTION PHASE
CEO
VE network
VE Convenor
VE Co-ordinator
Divisional VE Co-ordinator
VE Teams
VE Teams
VE Teams

Value Engineering
SELECTION PHASE
SELECTION PHASE
1. TRAINING
2. SELECTION OF PROJECTS
3. SELECTION OF
APPROPRIATE TEAM

Value Engineering
SELECTION PHASE

Value Engineering
SELECTION PHASE
SELECTION OF PROJECTS
Pareto Analysis / ABC analysis
Problematic Areas
Production Problems
Maintenance Problems
Vendor Development Problems
Design Problems
Old designs, specifications or standards
Low yield products
New projects, Products, Processes and systems

Value Engineering
SELECTION PHASE
Potential Savings from 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

Value Engineering
INFORMATION PHASE
INFORMATION PHASE
Collect Data
Costs
Human Relations
Consumption
Design
Materials

Value Engineering
INFORMATION PHASE
FUNCTION
Function Analysis and FAST or Function

Diagramming is the constant at the heart of the
Information Phase of any Value study. How this
powerful tool is used may also vary depending upon
when the study is being done and the study
objective.

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE
Write functions for these items
1. Safety pin
2. A screw
3. A beam
4. Washing machine
5. Lawn mower
6. Door
7. Agni missile
8. Insurance policy
9. Water meter
Value Engineering
INFORMATION PHASE
FUNCTIONS
USE SELL
FUNCTIONS FUNCTIONS
Improve Appearance
Restrict Movement TIE CLIP
Enhance Image
Cement Improve Finish

Protect Surface
paint Improve Aesthetics
Control Weight Dieting Attract attention

Value Engineering
INFORMATION PHASE
TASK ORIENTED
BASIC FUNCTIONS
CUSTOMER NEED ORIENTED
BASIS FOR BUYING

DECISION
INTAGEABLE
SUPPORT
SUBJECTIVE
FUNCTIONS
BASED ON ATTITUDES AND
EMOTIONS.

Value Engineering
INFORMATION PHASE
SUPPORT
FUNCTIONS
ASSURE CONVENIENCE
ASSURE DEPENDABILITY
SATISFY USER
ATTRACT USER

Value Engineering
INFORMATION PHASE
HIGHER LOWER
OREDER OREDER
FUNCTIONS FUNCTIONS
DEPENDENT
OREDER
FUNCTIONS

Value Engineering
INFORMATION PHASE
What Do We Do With Functions?
Identify functions
Type functions and organize their contributions Function Analysis

System Technique (FAST)
Assign costs to functions - Function Costs
Assign attitudes to functions Function Attitudes
Evaluate functions to find functions with high cost and/or poor

performance - Value mismatch
Create "other ways" to perform value mismatch functions
Evaluate function ideas for the best solution

Value Engineering
INFORMATION PHASE
Organizing Functions
Functions are either primary or secondary.
Primary Functions
The basic or required reason for the existence of an item or product and answer the
question :"What must it do?
Secondary Functions
Support functions that answer the question:"What else does it do?
Critical Functions
The basic and the required secondary functions are necessary for the workability of
the item. Without these, the basic function cannot be performed (even to a severely
reduced degree).
Remaining Functions
Other secondary functions either support critical functions, are mandated by
specification, or are good design practice incorporated into the item.

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE
Concepts of Value - Desirable
Ideal Good Acceptable Passable
Function Function
Value =
Cost
Cost

Value Engineering
INFORMATION PHASE
Concepts of Value - Undesirable
Undesirable but Passable

(cheapening the
product)
Function Function
Value =
Cost
Cost

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE
Function Analysis System Technique

(FAST)

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE

Value Engineering
FAST Example - Overhead Projector
HOW? WHY?
F.A.S.T MODEL
OVERHEAD PROJECTOR
FACILITATE
PORTABILITY
OBJECTIVES OR
SPECIFICATIONS
ALLOW
SAFETY
OUTPUT INPUT
(concept)
W CONVEY PROJECT GENERATE CONVERT RECEIVE TRANSMIT

Information IMAGE LIGHT ENERGY CURRENT CURRENT
H
E
GENERATE
N FOCUS (concept) HEAT
IMAGE
SUPPORT DISSIPATE
IMAGE HEAT
AMPLIFY
IMAGE GENERATE
NOISE

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE

Value Engineering
EXERCISE ON FAST

Value Engineering
INFORMATION PHASE
TOTAL COST
DIRECT DIRECT OVERHEAD

MATERIAL LABOUR
HANDLING
INSPECTION
STORES
MAINTENANCE
ADMIN
TOTAL COST
SAFETY
ENVIRONMENT
Value Engineering
INFORMATION PHASE
TOTAL LIFE CYCLE COST

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE

Value Engineering
INFORMATION PHASE
SIMPLE PAY BACK PERIOD

Value Engineering
INFORMATION PHASE
TIME VALUE FOR MONEY

NET PRESENT VALUE

Value Engineering
INFORMATION PHASE
RETURN ON INVESTMENT

Value Engineering
SPECULATION PHASE
SPECULATION / CREATIVITY PHASE
WHAT ELSE WILL SATISFY THE SAME NEED /

FUNCTION ?

Value Engineering
SPECULATION PHASE
CREATIVITY DEFINITION
Creativity is the art

of bringing
something new
into existence.
It has the art of

making, inventing,
or producing
something new
and different.

Value Engineering
SPECULATION PHASE
CREATIVITY & INNOVATION

RELATIONSHIP
You must blast before you

can create. Blow apart
the Misconceptions,
skeptics, and
naysayers. Blow-up the
preconceived ideas and
common theories of
how things should be
done. Rather, focus on
possibilities.
J. R. Wixson - 2004

Value Engineering
SPECULATION PHASE
IMAGINATION
Imagination is more important than
knowledge, for knowledge is
limited, while imagination embraces
the entire world.
Albert Einstein

Value Engineering
SPECULATION PHASE
Thought for the day:

When you always do what you have
always done - you always get what
you have always gotten.
Socrates

Value Engineering
SPECULATION PHASE
IDEA vs. SOLUTION

A solution requires justification &
validation, and idea needs no
justification.
A solution is an end point, an idea is just
the beginning.
A solution is solid and self supporting,
an idea is tender and must be built
upon.
DONT KILL IDEAS WITH
ROADBLOCKS!!
Value Engineering
SPECULATION PHASE
Creative and Judicial Ability

Development
Predominately
creative
Predominately
judicial
0 12 56 17 24
Age

Value Engineering
SPECULATION PHASE
C K S
B L O
To Creative Thinking and Action
FEAR of making mistakes
FEAR of the risk of pioneering
Latching onto the first idea
Desire to conform . . . To belong
Belief that fantasizing . . . (imagining) . . . Is a waste of time,
and childish
Difficulty in defining the problem
Inflexibility
The erroneous belief, I am not a creative person

Value Engineering
SPECULATION PHASE
CREATIVITY TECHNIQUES
BRAIN STORMING
MORPHOLOGICAL ANALYSIS
LATERAL THINKING

Value Engineering
SPECULATION PHASE
Rules for Brainstorming

Generate a large number of ideas -
quantity, not quality.
Free-wheeling is encouraged - Listen and
improve on the ideas of others.
Dont 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
Value Engineering
SPECULATION PHASE
Generating creative solutions

Brain in two halves:
Left half of the brain
Logic, Reasoning, Analysis, Numeracy and
Language
Right half of the brain
Rhythm, Music, Colour, Images and shape
recognition.
Creative thinking is shutting down left part of

the brain and using more of the right part,
think in images instead of words and systems.
Value Engineering
SPECULATION PHASE
Morphology analysis.
Break the process down to the elements

or attributes of which it is made up.
Let us say we want to develop a better

way to toast bread.
The attributes might be

Power, Capacity, Speed, Method

Value Engineering
SPECULATION PHASE
Attribute Form
Power Electricity Gas Solar
Capacity One slice Two slices Whole loaf
Speed Leisurely Instant Fast
Method Direct Reflected Convection

Value Engineering
SPECULATION PHASE
1. Assemble a list of four or more nouns which
are relevant to the issue on hand.
2. Using random word generating, but limiting to
adjectives, generate four more qualities
which thing can have. Make them completely
random.
3. Build a matrix with nouns along the top and the
adjectives down the side.
4. At each intersection, brainstorm the
possibilities suggested by the combination of
adjectives and nouns.

Value Engineering
SPECULATION PHASE
Lateral Thinking.
Lateral Thinking involves forcing movement

away from the current mind set to other
possible ways of doing things.
LT can lead to solutions which are not just

an improvement, but a huge jump to a
completely new approach, which wins hand
down on many counts.
Vacuum cleaner of Hubert Cecil Booth

Value Engineering
SPECULATION PHASE
Six Thinking Hats.

Value Engineering
SPECULATION PHASE
Six Thinking Hats.

A WHITE hat - denotes a mode of thinking during which an
objective look at data and information is required. Questions. What
information do we have? What information do we need to get?
During initial problem assessment and definition phase.
When assessing and ranking the quality of solutions
A RED hat - denotes the mode of thinking associated with feelings,

hunches, and intuition. Intuition, feelings and hunches. No need to
justify the feelings. How do I feel about this right now?
Red Hat thinking mode can also be used to good effect at times
during a problem solving session to break out of the rut that can
sometimes occur if participants have been kept in other thinking
modes - but particularly White Hat - for extended periods.

Value Engineering
SPECULATION PHASE
Six Thinking Hats.

A BLACK hat - denotes the mode of thinking associated with
caution, judgement, and looking logically at the negative aspects of
a problem - often described as the devils advocate mode of
thinking. Caution. Judgement. Assessment. Is this true? Will it
work? What are the weaknesses? What is wrong with it?
During the initial problem definition phase, where we are attempting to
identify all of the constraints that exist in and around our problem
During a how can I destroy this system? subversion analysis.
A YELLOW hat - denotes the mode of thinking associated with

examining the feasibility and benefits of a given situation, and
looking logically at the positive aspects. Why is this worth doing?
How will it help us? Why can it be done? Why will it work?
During assessment of solution options when trying to gauge the
relative strengths of the solutions under consideration.
Value Engineering
SPECULATION PHASE
Six Thinking Hats.

A GREEN hat - denotes the mode of thinking associated with
the generation of new ideas, creative and lateral thinking.
Different ideas. New Ideas. Suggestions and proposals. What
are some possible ways to work this out? What are some other
ways to solve the problem.
A BLUE hat - denotes the mode of thinking associated with the

overall control and organisation of the thinking processes.
Thinking about thinking. What have we done so far? What do
we do next?
When a problem solving team is getting bogged down in the detail
of a particular part of a process, it is often useful for the facilitator
to get the rest of the team to shift into Blue Hat thinking mode in
order to zoom out of the details and to re-datum or re-orient
themselves to see where they are in the overall process.

Value Engineering
SPECULATION PHASE
Six Thinking Hats.

DEFINE
What benefits are we looking to achieve, how will we know
when weve got there? (White Hat)
What are the constraints? (Black Hat, possibly followed by
Yellow)
What resources are available? (Yellow Hat, possibly followed
by Green)
Where is the sore point? (White Hat)
What are the functions and attributes contained in the
current system? (White Hat to define intended functions,
then specifically followed by Black Hat to identify the
harmful, insufficient and excessive functions)
How mature is the current system (where does it and its
sub-systems sit on their current evolutionary S-curves?)
(White Hat)
(Optional) Brainstorm and Car-Park initial solution thoughts
(Red Hat)
Value Engineering
SPECULATION PHASE
Six Thinking Hats.

SELECT
Determine the most appropriate problem solving techniques for
the particular problem (White Hat)
SOLVE
A variety of options here, depending on which of the TRIZ tools
are relevant:
(Knowledge) (White Hat)
(Contradictions) (White Hat to generate and look up
contradictions; Green Hat to translate the generic triggers into
specific solutions)
(Trends) (Yellow Hat followed by Green)
(Subversion Analysis) (Black Hat; probably interspersed with
periods of Blue)

Value Engineering
SPECULATION PHASE
Six Thinking Hats.
EVALUATE
Have solutions been generated? If no, then the problem
needs to be re-cast (Black Hat, possibly followed by Red,
Green, or maybe Blue, probably in that order)
If yes, then solutions need to be ranked (Yellow Hat,
systematically followed by Black Hat)
Deciding where to go next (i.e. around the loop again or to
finish) (White Hat, but the facilitator should definitely
encourage participants to go into Black Hat mode one more
time if possible)

Value Engineering
SPECULATION PHASE
Six Thinking Hats.
Variants:
Different types of customers
Different levels of employees
Different regulatory bodies

Value Engineering
SPECULATION PHASE
Other tools that can 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, ishakawa 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.

Value Engineering
EVALUATION PHASE
Choosing the best solution.

Key Techniques
o Functions of quality and acceptance

o Options Criteria Matrix
o Risk Pay off matrix
o Factor Comparison methods.
o Matrix diagram
o Decision Tree diagram
o Fault tree diagram
o Cost Benefit analysis.
Value Engineering
EVALUATION PHASE
Options Criteria matrix.
Options
Call
Car Train Aeroplane Horse
Taxi
Criteria
Speed
Cost
Ease
Convenience
Timing
Risk

Value Engineering
EVALUATION PHASE
Risk Pay off Matrix.

Pay off
High Low
Do with
Leave alone
High insurance
Risk
Low Do immediately Why bother

Value Engineering
EVALUATION PHASE
Factor comparison method.

Systematic manner of ranking factors
or criteria, which are taken one at a
time.
1. Identify all factors or criteria that govern
or influence the project.
Identity Criteria
A Safety
B Durability
C User acceptability
D Reliability
E Comfort
F Availability
G Cost

Value Engineering
EVALUATION PHASE
2. Draw evaluation matrix
B C D E F G
A A
B
C
D
E
F
3. Compare every factor with each of the others,

for importance. A factor is pitted against only one
other factor at a time.
Say A(safety) is compared with B(durability). If
safety is more important than durability mark A ,
below the letter B in the matrix.

Value Engineering
EVALUATION PHASE
4. Decide the relative degree of importance of these two

factors using a three point scale.
Relative importance Points

Major difference 3
Medium difference 2
Minor difference 1
No difference 0
5. If safety is of major importance than durability, then a

score of 3 is added along with A making it A3.
6. Now compare A (safety) with C(acceptability). If these
two are of equal importance , then write 0 under C.
7. And so on The matrix may look like this.

Value Engineering
EVALUATION PHASE
B C D E F G
A A3 0 A1 A2 A2 A2
B C2 0 E1 B3 B2
C D1 0 C1 C2
D D1 D1 D2
The evaluation
E E1 E2
matrix. F F2
8. Add all scores for each factor both row wise and column
wise and rearrange them in descending order of their
scores. The score in each case becomes the relative weight
of the factor.
Identity Criteria Score
A Safety 10
B Durability 5
C User acceptability 5
D Reliability 5
E Comfort 4
F Availability 2
G Cost 0
Value Engineering
EVALUATION PHASE
Matrix diagram.
o Gather a group of people with knowledge of problem

o Decide on the criteria to be used in selecting candidate
proposals.
o Make a matrix of all the criteria in both rows an columns
o Group allots the relative importance of each criteria.
o Sum the relative importance across the rows to see ranking
of the criteria.

Value Engineering
EVALUATION PHASE
Decision Tree.
Is useful when implementation is dependent upon
what happens at various stages.
Decisions under the control of the decision maker is
marked in square.
Decisions outside the control of the decision maker
is marked in circle.
Wherever possible, and required, the cost is also
given.
Tree is drawn by experienced people using
judgement.
This is a mixture of subjective and objective
methods.

Value Engineering
EVALUATION PHASE
Decision Tree.

Value Engineering
EVALUATION PHASE
Decision Tree.

Value Engineering
EVALUATION PHASE
Fault Tree Diagram.
Cause Cause
Cause Cause Cause
Cause Cause
Cause
Cause
Effect Cause Cause
Cause Cause
Cause
Cause Cause
Cause Cause
Cause Cause Cause
Cause Cause

Value Engineering
EVALUATION PHASE
Evaluation Phase - Idea Screening
1 st GO, NO-GO
CHAMPION
2 nd
GROUP STUDY
3 rd
FORMAL TRADE-OFF STUDY
(NGT, PAIRWISE
COMPARISON, ETC.) MOCKUP
AND PROTO TYPES IF
4 th NECESSARY
CUSTOMER
5 th ACCEPTANCE

Value Engineering
EVALUATION PHASE
Evaluating Ideas
GO - NO GO
Scratch ideas that hold no interest.
CHAMPION
Who will speak for the ideas and support
them?
GFI
Discuss pro/con and vote. GFI is team
average.
Combine ideas; add new ideas.
Record all assumptions when voting.
Value Engineering
EVALUATION PHASE
Evaluating Ideas
Trade Study
Quantify performance characteristics.
Select top candidates using NGT, Pair-wise
Comparison, etc.
Record all assumptions when voting.
Customer Acceptance
Determine & quantify customer acceptance
criteria.
Rate surviving ideas against norm & risk.
Develop proposal scenarios.

Value Engineering
RATE AND RANK OF ALTERNATIVES
EVALUATION PHASE
ALTERNATIVES
CRITERIA WEIGHT A B C D E
A. Safety 20.3 5 4 2 3
5
101.6 81.3 40.7 61.0 101.6
B. Reliability 22.0 4 5 2 4 5
87.8 109.8 43.9 87.8 109.8
C. Portability 6.5 2 4 1 2 3
13.0 26.0 6.5 13.0 19.5
13.0 3 2 2 3 4
D. Machineabilty
39.0 26.0 26.0 39.0 52.0
4 4 5
E. Constructabilty 7.3 1 4
29.3 7.3 29.3 29.3 36.6
5 2 5 3 3
F. Frangability 12.2
61.0 24.4 61.0 36.6 36.6
5 3 4 2
G. Maintainability 8.1 5
40.7 40.7 24.4 32.5 16.3
4 3 2 3
0.8 5
H. Serviceability
3.3 2.4 1.6 2.4 4.1
I. Ergonomic 3 1 2 3 4
9.8
Compatibility 29.3 9.8 19.5 29.3 39.0
TOTAL 100 404.9 327.6 252.8 330.9 415.4
COST $ 1,450.00 $ 1,711.00 $ 1,000.00 $ 1,250.00 $ 2,100.00

Value Index 0.28 0.19 0.25 0.26 0.20
best value
Each alternative is scored against how well it satisfies the various criteria. Once the scores are
assigned, they are multiplied by the weight of the criteria and summed for a total score. Then, a
value Index is calculated by dividing the total score by the implementation cost.

Value Engineering
PLANNING/
DEVELOPMENT PHASE
The Planning Phase
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?

Value Engineering
PLANNING/
DEVELOPMENT PHASE
ACTION PLAN GUIDELINES
What needs 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.
Value Engineering
PLANNING/
DEVELOPMENT PHASE
Force Field Analysis
Road
Enablers
Blocks
Current Desired

Value Engineering
PLANNING/
DEVELOPMENT PHASE
Implementation Planning
Ideas must be planned and managed to

ensure implementation.
Proposed actions should be managed
like a project with specific end products,
defined start and end dates, and
funding limits.

Value Engineering
PRESENTATION PHASE
Reporting Phase
Reporting
Give oral presentation.
Support it with written executive brief.
Be clear, concise, and positive.
Anticipate roadblocks
Use good human relations.

Value Engineering
PLANNING/
DEVELOPMENT PHASE
Plan a course of action.

Key Techniques
o Fault tree diagram

o Action / validation matrix
o Project Decision Programme Chart
o Gantt chart
o PERT Chart
o Other project management software

Value Engineering
Fault Tree Containment /
Permanent
Respon
sibility
Target
complet
Diagram. Corrective
action.
(Who) ion
(When)
(What)
Cause Cause
Cause Cause Cause
Cause Cause
Cause
Cause
Effect Cause Cause
Cause Cause
Cause
Cause Cause
Cause
Cause
Cause Cause
Cause
Cause
Cause

Value Engineering
PLANNING/
Action Validation Matrix. DEVELOPMENT PHASE
Action matrix. Verification / validation matrix.

S. Problem Action. Responsi Target Para When Respon Valida Validat
No (What) bility complet meter sibility tion ion
(Who) ion (Who) Plan Actual
(When)

Value Engineering
PLANNING/
PERT Chart. DEVELOPMENT PHASE
A PERT/CPM chart is a directed graph that shows tasks, their

durations, and their precedence relationships, and allows estimation
of project completion times

Value Engineering
PLANNING/
DEVELOPMENT PHASE
Project Decision Programme Chart.

Value Engineering
PLANNING/
Gantt chart. DEVELOPMENT PHASE

Value Engineering
PLANNING/
Gantt chart. DEVELOPMENT PHASE

Value Engineering
IMPLEMENTATION /
EVALUATION PHASE
Evaluation of results.

Value Engineering
IMPLEMENTATION /
EVALUATION PHASE
Ve Workshop Follow-up Activities
Recognize the participants.

Publicize the results.
Audit the performance of the
implemented actions.
Close out the project.

Value Engineering
IMPLEMENTATION /
EVALUATION PHASE

Value Engineering
IMPLEMENTATION /
EVALUATION PHASE

Value Engineering
IMPLEMENTATION /
EVALUATION PHASE

Value Engineering
IMPLEMENTATION /
EVALUATION PHASE
Formula for Superior

Continuous Improvement
3
(CI) =
Lean Six Sigma

x Value x
Engineering
Value Engineering
IMPLEMENTATION /
Mapping VE to 6 EVALUATION PHASE
VA/VE 6

Value-based Define the Value-based
decision Information
Problem decision process
Phase
process
Creativity Uses statistical

Uses functional Phase Measure
approach
approach
Evaluation
Phase
Follows a very Follows a very
Analyze
structured, structured,
Planning organized plan
organized plan Phase
Focus on maximum Reporting Improve Focus on maximum

possible solution Phase possible solution based
based on creativity on analytical
techniques. Implementation optimization techniques.
Phase Control
Value Engineering
Michael Mladjenovic - Intier Automotive Interiors, Toronto, CA
IMPLEMENTATION /
EVALUATION PHASE
Application of 6 Tools
6

Level
5

4

3

0% 20% 40% 60% 80% 100%

% Usage
Basic Tools Statistical Tools Design for 6
and Innovation w/VE

Value Engineering
IMPLEMENTATION /
VE Job Plan with 6 EVALUATION PHASE

Value Engineering
Value Engineering Strengths
VE relies on a rigorous interdisciplinary approach to
problem solving.
VE uses a systems approach to problem
identification and solution.
VE is function oriented and promotes a clean-sheet
approach that supports innovative solutions.
Creativity is a key component to the VE problem
solving activities that promotes breakthrough
thinking.
VE uses a structured job plan that promotes
consistency in application and helps assure results.
Increased competitive advantage comes from the
identification of innovative ways to accomplish key
functions at a lower cost with improved quality and
reliability.
Value Engineering
VEs Weaknesses
Successful VE results are dependent on the
quality of information brought to the VE workshop
for evaluation.
Many times, VE is used too late in the product
development cycle to impact the design, and
when changes would be too costly to implement.
There are many misunderstandings and biases
against VE that have been built up over time due
to misuse of the methodology.
It cheapens the product without improving it.
Im an engineer. We do VE all the time.
VE is only used for cost reduction.

Value Engineering
Value Engineering

Value Engineering VA VE PDF

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VALUE ENGINEERING

Hogwarts School of Improvement Initiatives

The event that triggered the development of VE was the

Hogwarts School of Improvement Initiatives

INDIAN VALUE ENGINEERING

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Differentiating Hard and Soft Situations

A very soft A very

What can we do How do

Hogwarts School of Improvement Initiatives

Hard Problem Situations

Design and Modify an

Note: The What has already been decided. The

Hogwarts School of Improvement Initiatives

Soft Problem Situations

Hogwarts School of Improvement Initiatives

Traditional Value Analysis

VA and VE have tended to

Hogwarts School of Improvement Initiatives

An organised study of Functions and Cost

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Why use Value

Hogwarts School of Improvement Initiatives

Conventional VA/VE view of value

Value for money =

Hogwarts School of Improvement Initiatives

The value of an item must not be

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Value for Money

Hogwarts School of Improvement Initiatives

Value for Resources Used or Exchanged

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Key Value Question

Are these outcomes

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Six Step Value Engineering Job Plan

Creativity Brainstorm ideas on how to improve the high cost,

Screen ideas for acceptance, score remaining ideas

Planning Plan how to sell ideas to management, identify key

Reporting Give oral presentation to management, or develop

Get management approval for go-ahead, make

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Some more guidelines for

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

Hogwarts School of Improvement Initiatives

No engineering Document Revision

Net Savings from VE

Total Cost of VE Implementation