Performance orientation, focus on the specified performance of engineering products, machines and equipment and even factories, received the maximum emphasis in american engineering organizations for many many years as customers will not buy a product that does not perform. But the cost aspect did not receive the adequate attention despite the effort of American Society of Mechanical Engineering since its founding. F.W. Taylor made significant contribution to cost reduction through productivity improvement of resources, machines and men. He advocated that science of working of machines and men is to be developed and productivity science developed in that endeavor will increase production from the same machine and man and will give lower cost of production and higher wages to workmen. He explained his experiments, theory and the systems implemented by him in four important publications (System for increasing productivity - Elementary Rate Fixing Department (Piece Rates 1895), Shop Management (1903), The Art of Metal Cutting (1907) and Scientific Management (1911)).
L.D. Miles in his 1961 book reiterates the same. The company managements have not given adequate attention to managing costs despite the promotion of the idea efficiency counsel by Harrington Emerson his 12 principles of efficiency. Value engineers are specially trained men in value work using an appropriate set of techniques and management has to employ them and provide their internal consulting to all decision makers related to the products. It is not that all engineers and managers should not be given basic value engineering education and they have to be encouraged to take rational value and cost decisions. But specialist value engineers are required to maximize the value of value analysis and engineering methods available for implementation.
In 1961, Miles wrote that in businesses below $200,000 per year, the owner should get himself trained in value analysis and engineering. In businesses of $200,000 to $2 million, one among the top three needs to be trained in value engineering.
In businesses with sales of more than $2 million, one value engineer can be appointed. Before appointment, the management has adequate understanding and even practice of value engineering in the previous years. Real attention to the newly appointed value engineer and his functioning has to be given by the management till his work is accepted by every phase of the business especially engineering, manufacturing and purchasing.
Value Engineering Department
Three Skills of Value Engineering: Value engineering requires skill in engineering ideas (design of mechanisms and machine elements), in manufacturing methods and processes, and in the very extensive field of using vendor and specialty-vendor competence.
When two value engineers are working, both must act as independent internal consultants to specific decision makers and they both have to act as consultants to each other. One of them may be senior and has oversight responsibility for the other. But still, it is not assistant relationship. Both are independent and must have independent projects.
Miles said, three men constitute the smallest efficient operating unit for value work. Each consultant may have a special depth in one of the three value analysis and engineering skills. This will ensure that in each value project, each of the skills is fully utilized. But still each consultant needs to have independent projects and he can take the consultancy support from the other two value engineering team members.
In the case of four member team, one may have management responsibility for the whole team.
Ud. 26.11.2023
Pub. 15.11.2023
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