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Salwa Hanim Abdul Rashid/ R. Ariffin R.

Ghazilla

Began in World War II era

Scarcity of materials
What else will accomplish the required function?

Not just cost cutting or removing a desired purpose Getting more for your allocated funds

Value Analysis
VA is currently used to describe the application of the techniques to existing products or services.

Value Engineering
VE is used when the techniques are applied to projected products or services.

VA/VE can be applied with equal success to any other cost engineering areas.

Planning
Value Engineering

Design
Beginning Design

Value Analysis Value Improvement

Construction
End of Design Beginning of Construction

Operation & Maintenance

An organized study of functions to satisfy the users needs with a quality product at the lowest life cycle cost through applied creativity and Win-forAll synergy

Lowest cost?

Satisfies my needs?
Long-term reliability?

Other
Looks nice Esteem value Future exchange or salvage value

Different things to different people An engineering approach is to regard value as the ratio of function to cost
V = FN C

Most products have many functions. Often there is an imbalance between the importance of the function and the cost to achieve it.

Usually cost are associated with parts.

Lack of poor coordination among designers Failure to network with customer poor definition of needs Design based on habitual thinking or mistaken beliefs

Not enough time for project formulation and/or design Failure to utilise latest technologies Negative attitudes Other?

VA begins with functional analysis, for if something does not function then it cannot work and would not sell.
When trying to establish the various function(s) of components or assembly efforts should be made to describe the function in 2 words (an active verb an a noun) This assists in focusing upon a precise understanding.

Definition

of Function

A required performance action described by a verb (active) and a noun (measurable) without identifying a specific method of performing that action

Definition
Products

of Function (Contd)
Services
establish criteria validate action communicate

Examples Design construction

furnish power furnish space contain liquid vary shape protect user reduce creep information reduce effort minimize errors control temperature support load vary capacitance establish grade

translate information receive results verify compliance

E.g Product

Function Remove Dirt (prime function) Rinse Contents Extract Water Supply/Drain Water

Washing machine

If possible it is best to restrict the number of subfunctions to between 5 and 8.


If more than this is determined or the sub functions listed are too general, conduct further analysis. Often the sub-functions relate to product subassemblies which can be analysed separately. Logically we should analyse the function of a complex product down to its components level.

PRODUCT
INCANDESCENT BULB

FUNCTION
PRODUCE LIGHT BE INTERCHANGEABLE PROTECT FILAMENT PROVIDE DECORATION

FOUNTAIN PEN

MAKE MARK DISCHARGE INK ALLOW REFILLING ATTACH TO POCKET PROTECT NIB PROVIDE LOCKS

The cost function matrix is designed to cost an existing product, service or system by function.
This is in addition to the cost of component parts. That is by this approach it is possible to determine if second order functions are costing the most to achieve. Advantage from costing by function is that is forces the value analyst to rigorously examine and understand the nature of the product being investigated.

The cost function matrix demonstrates that an apparently minor function is responsible for a major part of the total cost or vice versa.

In terms of parts, too, it may show that something relatively unimportant is costing too much.
Cost may or may not included overheads. Providing one is consistent this will make little difference although it is best to eliminate overheads to avoid the potential of anomalies.

1)

In the left hand vertical column write down all the different parts or sub-assemblies pertinent to the investigation.
In the next column fill in the cost appropriate to each item in the first column. Across the top fill in the functions to be satisfied. Establish which part (s) are involved in satisfying each function. A part will often contribute towards more than one function.

2) 3) 4)

5)

Apportion the cost of each part amongst te functions to which it contributes where one component interacts with several functions, the proportion of its interaction needs to be determined. Total of the cost of each function at the bottom of each function column. The matrix now shows how much it costs to satisfy each of the product functions.

6)

PRODUCT SLIDE PROJECTOR

FUNCTION PROJECT SLIDE PROVIDE LIGHT CONCENTRATE LIGHT FORM IMAGE HOLD SLIDE COOL SYSTEM PROVIDE STRUCTURE SHIELD LIGHT

PART AND COSTS CHASSIS COVER LAMP LAMP HOUSING CONDENSER SYSTEM PROJECTION LENS LENS MOUNT SLIDE HOLDER CHANGE MECHANISM

POUNDS 8.00 2.00 2.00 4.00 4.00 20.00 4.00 1.00 5.00

FAN
FAN MOTOR ELECTRICS

1.00
10.00 4.00

COST OF COMPONENT PARTS

Product tree
Face + Glass Strap + Clasp Watch Electronics

Winder + hand mechanism Casing

Tell Time (main function)

Record/ Allow wear Display Time Protect electronics Provide Image Advance Time (sub-functions) Allow time change

Stay on wrist Allow adjustment

Cost

Advan Displ ced ay time time 3.00

Allow wear

Allow time chang e

Protec t electr onics 3.00

Provi de Imag e 24.00 80.00

Face + Glass Strap + clasp Electronics + battery Winder + Hand mechanisms Casing Total Cost

30.00 120.0 0 60.00 10.00 50.00 270.0 0 64.00 60.00 4.00

40.00

4.00 10.00 3.00 50.00 4.00 25.00 28.00

2.00 10.00 116.0 0

THE COST FUNCTION MATRIX

Information Creation Evaluation Planning Implementation

Phase 1: Information
A. Function Analysis B. Fast Diagramming C. Function Cost

The Tasks of Information


Speculate on sources of project data Develop plan to gather project data Implement data search plan Investigate project Speculate on functions performed Audit data

A. Function Analysis
Which functions would yield the most significant value improvement if a better way could be found?

A. Function Analysis (Contd)


Identify functions Type functions and organize levels of functions Function Analysis System Technique (FAST) Assign costs to functions - function costs

A. Function Analysis (Contd)


Determine functions with high costs and/or poor performance-function analysis for function mismatch Create other ways to perform the mismatch functions Evaluate function ideas for the best solution

Function Analysis Techniques


Mismatch functions Pareto analysis Establishing function values

Pareto Analysis
In a large number of elements, a small number of these elements will account for the most cost. Approximately, 80% of cost by 20% of the items rank order functions
80%

Cost

20%

Functions

List the most costly functions in descending order until you have accounted for approximately 80% of the total cost Look for functions where cost is out line Dont overlook functions for which the performance is unacceptable

Function Identification
The single most important tool of value analysis is:

Function Diagramming

B. Fast Diagram
A picture of all the functions showing their relationships to each other and clearly showing what a function does

Fast Helps
Test function completeness and validity Concisely show problem as it is or could be Define, simplify and clarify problem Aid cost visibility Aid creativity Define scope of problem

HOW?
Design Objective

Functions that happen All the time

WHY?

Design Objective
Higher Order Function Basic Function

Critical Path Functions


Required Secondary Function Required Secondary Function Required Secondary Function

WHEN?
Causative Function

Functions that happen At the same time and/or Are caused by some other function

Scope of problem under study

HOW ?

Basic Functions
Primary Basic

Secondary Basic Secondary Basic

WHY ?

TASK

Supporting Functions
Assure Convenience Assure Dependability Satisfy User Attract User Secondary Supporting Secondary Supporting Third Level Supporting Third Level Supporting

Primary Functions

Secondary Functions

Third Level Functions

C. Function Cost Techniques


Structured bills Posting costs to function Costed bills Total function costs Allocating costs Percentage function costs

Phase 2: Creation
What other ways can we ?
Agitate clothes Cut grass Eliminate lint Facilitate service Protect user Reduce effort

* No criticism/All ideas are acceptable

Phase 3: Evaluation
Three steps
Compare function costs Screen creative ideas Establish value standard

Phase 4: Planning
Top management responsibility
Select product Appoint team Specify objective Establish schedule Fund project Sponsor progress reports Resolve disputes

Phase 5: Implementation
Report results Deploy standards Conduct decision point reviews Review progress Anticipate road blocks

Value engineering focuses on reducing the life cycle cost of the project Functional analysis is a better word to use as opposed to VE To achieve successful result you should remove elements that make poor value

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