Part of Chapter Summaries of the book - Techniques of Value Analysis and Engineering by L.D. Miles
Value Engineering - Examples, Cases and Benefits
The three basic steps are:
1. Identify the function.
2. Evaluate the function by comparison - (Is the function performed reliably at the lowest cost possible? No.)
3. Cause value alternatives to be developed. (This step is value engineering.)
The value analysis approach requires development of valid answers for five questions for value analysis of any item:
1. What is the item?
2. What does it cost?
3. What does it do?
4. What else would do the job?
5. What would that alternative cost?
Number of alternatives have to developed in the value analysis exercise. Value analysis approach developed by Miles, aims at identifying very low cost base alternatives early in the exercise (value analysis) and then creatively improving them to deliver the set of functions desired (value engineering).
Detailed description of techniques is in Value Analysis and Engineering Techniques
Get all available costs
Get a dollar sign on key tolerances
Blast, create and refine
Blast
For each function to be performed by a product or a component, find alternative products, materials or processes that serve the function to a great extent but at a less cost. These alternative ideas do not satisfy the specified or required function completely but they do to a significant extent. Identify they function they perform and the cost involved,
During the blast activity use these techniques.
Utilize vendors’ available functional products
Utilize and pay for vendors’ skills and knowledge
Utilize specialty processes
Utilize applicable standards
Use the criterion, “would I spend my money this way?”
All the five techniques have the potential to suggest lower cost alternatives
Create
In create phase, the technique of "Use real creativity" needs to be employed to come out with ways by which the low cost alternatives identified during the blast stage can be modified to accomplish the specified function to a much greater extent with pertinent increase in cost. During this stage also the improvement in function and the increase in cost are to be clearly identified.
Refine
In this step, much more creativity is used and also the techniques "Use industry experts to extend specialized knowledge" and "Utilize and pay for vendors’ skills and knowledge" are used to refine the ideas developed during the create step to come out with a refined alternative that fully accomplishes the specified function at a lower cost. During refine step, some more functionality is added as well as some additional cost.
Original knol - http://knol.google.com/k/narayana-rao/value-analysis-approach-and-job-plan/2utb2lsm2k7a/ 3900Basic Steps of value Analysis
The three basic steps are:
1. Identify the function.
2. Evaluate the function by comparison - (Is the function performed reliably at the lowest cost possible? No.)
3. Cause value alternatives to be developed. (This step is value engineering.)
The value analysis approach requires development of valid answers for five questions for value analysis of any item:
1. What is the item?
2. What does it cost?
3. What does it do?
4. What else would do the job?
5. What would that alternative cost?
Number of alternatives have to developed in the value analysis exercise. Value analysis approach developed by Miles, aims at identifying very low cost base alternatives early in the exercise (value analysis) and then creatively improving them to deliver the set of functions desired (value engineering).
Job Plan for Value Engineering
Phase 1. Orientation: Understand the customers’ needs and wants. Understand the functions performed by the product and the contribution of each part and each feature of the part and the complete product to the functions to be performed by the product.
Value engineer has to make sure that he does not diminish the contribution of the product to the customers' needs and wants.
Phase 2. Information: Collection of information on quantities, vendors, drawings, materials, manufacturing methods, and costs.
Phase 3. Speculation: Using all the techniques of value analysis to come out with alternative low cost materials and methods to produce components and the product. Creativity is to be employed here. Value engineer has to involve experts from various disciplines to help with ideas.
Phase 4. Analysis: Technical and cost analysis of the alternative proposed.
Phase 5. Program planning: Approach the specialists to further refine the selected alternatives. Inform the specialists the accepted suggestions and give mandate to them to take steps to implement the suggestions.
Phase 6. Program execution: Pursue regularly the specialists and vendors to get their inputs on various tasks assigned to them. The output of this phase is a detailed design, successful trail pilot run of a manufacturing process or a confirmed estimate from a vendor for supplying a component, material or sub assembly.
Phase 7. Status summary and conclusion. The results of the value engineering study are to be presented to decision makers. The reports needs to have a summary sheet as well as the full supporting documentation. The value engineering project is concluded when the product is manufactured and distributed at the lowered cost as per the value engineering study.
Value Analysis Techniques
(Each technique linked to a video).
- Avoid generalities
- Get all available costs
- Use information from the best source
- Blast create and refine
- Use real creativity
- Identify and overcome roadblocks
- Use industry experts to extend specialized knowledge
- Get a dollar sign on key tolerances
- Utilize vendors’ available functional products
- Utilize and pay for vendors’ skills and knowledge
- Utilize specialty processes
- Utilize applicable standards
- Use the criterion, “would I spend my money this way?”
Job Plan for Value Engineering and Use of techniques
Phase 1. Orientation: Understand the customers’ needs and wants. Understand the functions performed by the product and the contribution of each part and each feature of the part and the complete product to the functions to be performed by the product.
Value engineer has to make sure that he does not diminish the contribution of the product to the customers' needs and wants.
Phase 2. Information: Collection of information on quantities, vendors, drawings, materials, manufacturing methods, and costs.
Techniques to be used: Get all available costs
Get a dollar sign on key tolerances
Phase 3. Speculation: Using all the techniques of value analysis to come out with alternative low cost materials and methods to produce components and the product. Creativity is to be employed here. Value engineer has to involve experts from various disciplines to help with ideas.
Techniques to be used: Blast, create and refine
Blast
For each function to be performed by a product or a component, find alternative products, materials or processes that serve the function to a great extent but at a less cost. These alternative ideas do not satisfy the specified or required function completely but they do to a significant extent. Identify they function they perform and the cost involved,
During the blast activity use these techniques.
Utilize vendors’ available functional products
All the five techniques have the potential to suggest lower cost alternatives
Create
In create phase, the technique of "Use real creativity" needs to be employed to come out with ways by which the low cost alternatives identified during the blast stage can be modified to accomplish the specified function to a much greater extent with pertinent increase in cost. During this stage also the improvement in function and the increase in cost are to be clearly identified.
Refine
In this step, much more creativity is used and also the techniques "Use industry experts to extend specialized knowledge" and "Utilize and pay for vendors’ skills and knowledge" are used to refine the ideas developed during the create step to come out with a refined alternative that fully accomplishes the specified function at a lower cost. During refine step, some more functionality is added as well as some additional cost.
Phase 4. Analysis: Technical and cost analysis of the alternative proposed.
The techniques to keep in mind and use during this stage are:
Avoid generalities
Use information from the best source
Identify and overcome roadblocks
Phase 5. Program planning: Approach the specialists to further refine the selected alternatives. Inform the specialists the accepted suggestions and give mandate to them to take steps to implement the suggestions.
Phase 6. Program execution: Pursue regularly the specialists and vendors to get their inputs on various tasks assigned to them. The output of this phase is a detailed design, successful trail pilot run of a manufacturing process or a confirmed estimate from a vendor for supplying a component, material or sub assembly.
Phase 7. Status summary and conclusion. The results of the value engineering study are to be presented to decision makers. The reports needs to have a summary sheet as well as the full supporting documentation. The value engineering project is concluded when the product is manufactured and distributed at the lowered cost as per the value engineering study.
References
L.D. Miles, Techniques of Value Analysis and Engineering, First Edition, McGraw-Hill Book Company Inc., New York, 1961
Updated 28 Sep 2021, 28 April 2019, 13 December 2013
ReplyDeleteGreat thoughts you got there, believe I may possibly try just some of it throughout my daily life.
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