Lean Designwith Ve

11

May 21, 2009May 21, 2009

We will begin at 6:00PM MSTWe will begin at 6:00PM MST

Salt Lake City Chapter #085Salt Lake City Chapter #085Webinar onWebinar on

““LEAN Design with Value EngineeringLEAN Design with Value Engineering ””Presented by

Jim Wixson CMfgE, CVS-LifeCEO Wixson Value Associates, Inc

Sponsor for tonight’s WebinarThe Member Engagement Initiative of SME

www.sme.org/mei

22

About The About The WebinarWebinar’’ss PresenterPresenterJim WixsonJim Wixson

Jim Wixson is the Founder and CEO of Wixson Value Associates, InJim Wixson is the Founder and CEO of Wixson Value Associates, Inc. a c. a consulting company specializing in product and process improvemeconsulting company specializing in product and process improvements and nts and new product development. He brings over 30 years of industrial new product development. He brings over 30 years of industrial experience in Systems Engineering, Value Engineering, Industrialexperience in Systems Engineering, Value Engineering, Industrial and and Manufacturing Engineering, LeanManufacturing Engineering, Lean--Six Sigma/Process Improvement, and Six Sigma/Process Improvement, and Project Management to his clients, and has worked with/for FortuProject Management to his clients, and has worked with/for Fortune 500 ne 500 Companies including INL, The Boeing Company, and Raytheon Companies including INL, The Boeing Company, and Raytheon Corporation. Corporation.

Jim has been a featured speaker and author of several papers andJim has been a featured speaker and author of several papers and articles articles for SME, INCOSE, PMI, ASQ, SAVE International, Partners in Businfor SME, INCOSE, PMI, ASQ, SAVE International, Partners in Business, ess, Shingo Prize Operational Excellence Conference and the Systems Shingo Prize Operational Excellence Conference and the Systems Dynamics Society. Dynamics Society.

For The Society of Manufacturing Engineers, Jim is the current CFor The Society of Manufacturing Engineers, Jim is the current Chapter hapter Chair of the Salt Lake City Chapter #085, and over 20 years of Chair of the Salt Lake City Chapter #085, and over 20 years of membership he has held numerous volunteer leadership roles in Thmembership he has held numerous volunteer leadership roles in The e Society as well as other professional associations.Society as well as other professional associations.

Lean Design with Value Engineering

Jim Wixson, CVS-Life, CMfgE-LifePresident, Wixson Value Associates, [email protected](208) 520-2296http://wvasolutions.com

Wixson Value Associates Inc. 25/21/2009

AgendaI. What is Lean Design?

II. How does Value Engineering (VE) facilitate creative Lean Design?

III. Value of VE. Why use it?

IV. What is Function Analysis and FAST?

V. The benefits of functional thinking.

VI. The VE Job Plan & How it Relates to Lean Design.

VII. How DFM/A and 3P work with the VE methodology.

VIII. Questions and Answers


Lean Design� Lean Design is applying lean principles to Product Development� Lean Design is achieved through a organized effort by a

interdisciplinary team to develop, or improve a product that accomplishes the necessary functions that make it work and sell at the lowest possible lifecycle cost within the constraints of safety to the user and the environment.

� Lean Design focuses on "balanced excellence" in product design by focusing on the elimination of non-value-added waste in both the process of development and in the design of the products themselves. (Technology Perspectives, http://www.design-for-lean.com/lean%20design.html)

� Lean Design can be viewed as Value Engineering repackaged with improvements to the implementation phase using lean principles, DFM/A, and 3P.

� Lean Design requires the application of the VE methodology to be effectively applied.


Waste in Product Development� Reinvention

� Lean Design teams appreciate the value of knowledge, and ensure that knowledge is easy to capture, reuse and always used to make decisions, thus avoiding reinvention of key products or features

� Excess Requirements� Lean Design teams recognize that every extra feature or performance

enhancement must be designed, produced, maintained and supported –and customers pay the price in greater complexity and greater risk of failure (Design to Cost is important).

� Overloaded Resources� Lean Design teams know that overloading resources makes them

slower and less flexible, and that task-switching costs engineers valuable time.

� Unintegrated Design� Lean Design teams strive to understand and then manage their designs

in an integrated system, so that they can focus innovation on areas that improve the market performance of their entire portfolio of products.


Serial Product Evolution(A Language Problem)

Marketing Engineering ProductionSatisfy need

Express Need

Conceptualize solution

Produce Products

Identify opportunity


A Failure to Communicate


Configuration Design Analyze Build Plan Schedule Build

Traditional Product Cycle

Rework Rework Rework Rework Rework

Lean Design Product CycleTEAM

Configuration Design / Analyze / Build Plan / Schedu le Build

Savings inTime to marketProduct costLife Cycle CostEtc.

A Product Definition Process……..

Co-located Team Environment


What is Value Engineering?� VE is an intensive , interdisciplinary

problem solving activity.

� VE is uses an organized approach toward problem solving.

� VE focuses on the functions performed by products, products, or services and what is required to perform these functions safely and at the lowest possible cost consistent with customer requirements .


What is Value Engineering?� Value Engineering is a proven methodology that

has saved private industry and governmental agencies $Billions since its inception in 1947.

� Value Engineering can be used to generate significant cost savings and cost avoidance by identifying potential problems and ways to avoid these problems before they occur.

� The VE approach promotes the philosophy of “Do It Right the First Time.”


Value Study Methodology� The value team study process matches the “quick-hit”, “small

team” process that Tom Peters and Nancy Austin describe in, A Passion for Excellence, as a powerful alternative to the “throw resources at it” approach to problem solving (Peters and Austin,1985).

� The strength of the value team process we use is in the pre-study phase, especially when the Executive Review Board (ERB) members include the Customer (Air Force, Army, Navy, airlines, FAA, etc), and suppliers. (ERB is described in the attached pre-event paper.)


VM, Six Sigma and Lean?� Doing Things Right

is the main focus ofLean and Six Sigma(Process Improvement)(Customer Satisfaction)

� Doing The Right Thingis the main focus ofValue Methodology(Function/Cost balance)(Customer Perceived Value)

� Both Are Requiredfor economic profit


Lean Design - Goals

� Resource Efficient – LEAN� Capable of very high yields regardless of

volume� Not affected by process variation: Robust� Lead to a “flawless launch”

�Meets Performance Targets (Quality)�Meets Delivery Targets (On Time)�Meets Financial Targets (Target Cost)


Lean Design - Process� Identify Customer requirements

� VE, QFD, Critical to Quality (CTQ)

� Estimate Baseline� Benchmark, Patent search, Product Scorecard, Process Map, VSM

� Determine Functional Requirements� VE, DFMA

� Generate, Evaluate, Select Design & Process Concept(s)� VE, 3P, TRIZ, Brainstorm, Ways of Nature, etc.

� Optimize Design and Process Concepts� DOE, CAE, FEA, Simulation, Analytical models.

� Verify Design and Process� PFMEA, Design Verification Planning and Reporting (DVP&R),

Production Part Approval Process (PPAP)

� Maintain the Gains� Control Plan, SPC, Kaizen

(from Superfactory, Lean Enterprise Series)


PPAP

� Production Part Approval Process:The Production Part Approval Process (PPAP) outlines the methodsused for approval of production and service commodities, including bulk materials, up to and including part submission warrant in the Advanced Quality Planning process. The purpose of the PPAP process is to ensure that suppliers of components comply with the design specification and can run consistently without affecting the customer line and improving the quality systems. PPAP ensures that you will achieve the first time quality and will lower down the cost of quality.


Search Select Investigate Analyze Speculate Evaluate Develop Present Implement Verify

< < < < <> > > > >Question-aires

BrainstormIssues andConcerns

Action LogItems

Process Check

NominalGroup

FAST Hi-CostDrivers

Mgmt. Focus

AgendasImpactChange-ability

ParetoHistogramsScatter Ana.Decision Analysis

CharterDocument

Cause andEffect

Check ListsScatter Dia.Flow ChartsCost ModelProblemDefinition

CostTargeting

Imagineer-ing

NominalGroup

BrainstormRun ChartsAvg. andRangeCharts

QFDTOC

FASTParetoFunctionAnalysisCost AnalysisHistogramsImpactChange-ability

Life-Cycle-Cost Alloc.

Design forAssy & MfgValue Stream mapping (VSM).

BrainstormClusterNominalGroup

Imagineer-ing

ExpertsOther CreativeThinkingTechniques

ChampionGFI-DelphiRank andRate

ParetoBenchmarkPaired Comp.

MultivotingCause andEffect

ImpactChange-ability

HistogramsDOEFASTTOCDesign forAssy & MfgVSM.

Cost Analysis

Benefit/Risk

ControlChart

ROA/ROIIRRBrainstormBreak-evenAnalysis

RegressionAnalysis

MarketSurvey

ArrowDiagram

AffinityDiagramLife-Cycle-Cost Ana.

FASTVSM

VU ChartsFlip ChartsMilestonesStrategyProposalDev.

VSM

ProjectMgmt.

MBOIPTLeadershipBrainstormCMDesign forAssy & Mfg.FASTAIWLean Event

SPCCheck ListsQuestion-aires

HistogramsControlCharts

Run ChartsAvg. andRangeCharts

CM

Frame Issue Information Speculation Planning/Presentation Post-Sessions

Example Tools Used in the VE Job PlanProject

PlanningProject Sessions Implementation


Value Methodology Timeline

VE a success, training of employees and suppliers begins

Navy adds VE incentive clause

SAVE formed in Wash. DC on Oct.22, 1959

Army Corps of Engineers begins VE training

VE included in ASPR for military procurements

First VE incentive clause published in Fed. Register, GSA staffs for VE.

Larry Miles takes VE to Japan.

Larry Miles dies.

VE adopted by NASA ofc of facilities.

1947 1952 1955 1959 19621964 19691970

1988 1990 1993 Today1985

OMB circular A-131 published requiring all Federal Agencies to use VE to identify and reduce non-essential costs.

OMB circular A-131 passes “Sunset Review”

Boeing VE Program stopped -1968

Charles Bytheway invents FAST –1968 – ‘69

Bill Allen initiates Boeing VE Program -1958

Gov’tagencies adopt VE in compliance with OMB C A-131

Larry Miles assigned to cost reduction at GE

Invents Concept –

Value = Function / Cost

Jerry Kaufman updates Boeing on VE/FAST - 1989


FEDERAL DEPARTMENT OR AGENCYDOLLARS SAVED BY VALUE ENGINEERING -- FY 95

Agency FY-95 VE Savings Defense Department $734,385,000.00 Department of Transportation $686,373,874.00 General Services Administration $109,608,453.00 Army Corps of Engineers $59,554,000.00 Department of the Interior $22,427,840.00 Department of Agriculture $8,764,155.00 Justice Department $5,990,387.00 Veterans Affairs $2,270,800.00 Health & Human Services $1,884,464.00 Agency for International Development $800,000.00

State Department $91,721.00TOTAL $1,632,150,694.00


SUMMARY OF PAST VE SAVINGSFederal-Aid Highway Program

http://www.fhwa.dot.gov/ve/index.cfm

132:01145:01325:01219:01157:01Return on Investment

$1.110 Bil.$1.115 Bil.$3.187 Bil.$1.785 Bil.$1.97 Bil.Value of Approved Recommendations

79479310779961233No. of Approved Recommendations

$1.97 Bil.$3.04 Bil.$6.76 Bil.$3.06 Bil.$4.60 BilTotal Value of Recommendations

19091794242719242861Total No. of Recommendations

$20.48 Bil.$18.7 Bil.$31.58 Bil.$21.53 Bil.$24.81 BilEstimated Construction Cost of Projects Studied

$8.42 Mil$7.67 Mil.$9.80 Mil.$8.15 Mil.$12.54 MilCost of VE Studies Plus Administrative Costs

309324300251316Number of VE Studies

FY 2003FY 2004FY 2005FY 2006FY 2007

Avg. project savings: 8%


Thought for the day:

When you always do what you have always done - you always get what

you have always gotten.� Socrates


Who Casts the Biggest Shadow?Influence

Product Cost

70%

20%5%

5%

Design 5%

Material 50%

Overhead30%

Labor 15%


When to do Value Engineering?P

erce

nt

Product Development Phase

10

20

30

40

50

60

70

80

90

100

0

5% Cost Expended 85% of Cost Committed

70

8595

5

30Brief Window of Opportunity

Percent of Life-CycleCost Committed

Percent of ProgramCost Expended

ConceptDevelopment

PreliminaryDesign

DetailDesign

Production

42


When to do VE?

Net Savings from VE

Total Cost of VE Implementation

Concept Design

Engineering &Production

Release Production

Drawings Released Tooling Changes

Re-Test/Re-qualification

No engineeringChange Revision

Document Revision

VE Implementation beyond this point results in a net loss.

$


Lean Design Life Cycle Scope

Market Conceptual Program Test Delivery In-ServiceResearch Design Go-ahead Performance

Voice of MDTC/Design to Cost Value Analysisthe Customer

Phase 0 Value EngineeringValue Engineering

Design for Manufacturing & Assembly

Definition and Scope

Product Development Phase


� Innovation is not a solo sport despite all the mythology. It requires a team using a well structured work session.

� “Innovation comes far more often from a diverse team, freely exchanging ideas, than it does from a solitary genius or an insulated team with the occasional “aha” moment along the way.” Jim McNerney

Creating a Culture for Innovation


The Synergistic Effect ofValue Analysis/Value Engineering

INFORMATION HELD BY TWO OR MORE MEMBERS

INFORMATION HELD BY ONE MEMBER ONLY

INFORMATION OR EXPERIENCE COMMON TO ALL


VE Task Team

Core Team

Core team consists of5 to 8 PARTICIPANTSOPTIMAL

Support

Support

Support

Support

Support

Support


Definitions� Value Study - The overarching objective of a value study is to improve the value of

the project. � Job Plan – Provides the structure for the Value Study which is part of a three-stage

process which includes:1. Pre-Workshop preparation 2. Value Workshop which applies the Six Phase Job Plan 3. Post-Workshop documentation and implementation

� Value Methodology – Provides the process and structure that is used to apply the Value Job Plan used in the Workshop.

� Value Standard – Establishes the specific six-phase sequential Job Plan process and outlines the objectives of each of those phases. It does not standardize the specific activities that are used to accomplish each phase.

� Value Engineering Study : A study used in the design phases of product development to establish the functions, target costs, and preferred alternative(s) for a new, or revised product.

� Value Analysis Study : A study on an existing product used to improve product performance, lower cost or improve reliability and maintainability.

� Note : Value Engineering and Value Analysis are often used synonymously and are encompassed by the term “Value Methodology .”

� LDB/P : Lean Design Build Process – An VM study supported by DFMA and 3P.� DFM/A®: Design for Manufacturing and Assembly (DFMA is a registered trademark of Boothroyd Dewhurst Inc.)

� 3P: The Production Preparation and Planning process.


The Value Job Plan Concept

� Systematic guide to ensure everyone is focused on exactly what they are trying to do� Get knowledge� Develop understanding� Create ideas� Develop and sell innovations

� Each phase involves different types of thinking� ...each completed exhaustively before the next is b egun� ...otherwise they will slur back and forth and get little done


From the General to the Specific

Phase 0: IdentifyOpportunity

Implementation PhaseAchieveResults

SE

AR

CH

SE

LEC

T

INV

ES

TIG

AT

E

AN

ALY

ZE

SP

EC

ULA

TE

EV

ALU

AT

E

DE

VE

LOP

PR

ES

EN

T

IMP

LEM

EN

T

VE

RIF

Y

PHASE

Generalized, vague

concepts or problems

A series of divergent and convergent thought processes that provide a logical path to achieving a solution.

Divergent Thinking

Conve

rgen

t

Thinkin

g

Information & Function Analysis Phase

Get Knowledge /Dev. Understanding

Creativity & Evaluation Phases

Create Ideas

DevelopmentDevelop and

Sell Innovations

The VM Study Methodology

REQUIREMENTS/OBJECTIVES/FUNCTIONS

CONCEPT DEVELOPMENT

PRODUCTIONPREPARATION

Detailed Design &

Implementation

VM meets customerneeds by providing

the best value solution for the entire value stream


Study

Information Phase• Data Collection & Analysis

• Issues• Requirements • System models

Creative Phase• Create Quantity of Ideas by Function

Evaluation Phase• Rank and Rate Alternative Ideas• Select Ideas for Development

Development Phase• Conduct Benefit Analysis• Complete Technical Data Package• Create Implementation Plan• Prepare Final Proposals

Presentation Phase• Present Oral Report• Obtain Commitments for Implementation

Pre-StudySelect Project

Define Problem/OpportunityEstablish Goals/Constraints

Determine Evaluation MetricsScope the StudyDetermine Team

Study Preparation Plan

Post-studyValidate ChangesCommit changes

Implement ChangesMonitor Status

Study Job Plan


Pre-Study� Identify Project� Frame Project (Team pre-event option, 1 to 2 days)

� Define Problem/Opportunity� Set Goals� Establish Proposal Metrics� Identify Perceived Constraints� Scope Project� Establish Study Team Structure� Develop Study Action Plan� Brief Executive Review Board (ERB) for Commitment

� Event Preparation� Collect data� Event Logistics


• Identify opportunities to shrink lead time from product introduction• Remove installation problems

• Surface supplier/contractor issues to drive down costs, lower rejection rates that impact contractor quality impacts

• Determine how contractor requirements impact the suppliers• Win/win/win for contractor , supplier and Airlines• Gain a better perspective of the supplier• Reduce rejection tags• Reduce the flow time in the engineering & mfg. sides of the house• Continue to meet certification requirements• System that does degrade over time - a robust system• Get the best product at the best price• Have good feelings about the contractual process with supplier• See VE be used throughout company - Expand VE opportunities

Concerns/ExpectationsManagementalue

COSTPROFIT

What is the problem (or opportunity) we are about to resolve?

Why do you consider this a problem (or opportunity) ?Producibility and design improvements will allow for less expensive parts.

Problem Definition

The cost/price of the part does not the allow supplier to make an adequate profit margin, contractor to meet product price objectives, and an acceptable cost - of-ownership for the airlines.

Why do we believe a solution is necessary? -OR-(What is the consequence of not solving the problem?)

• Customers demand that contractor hold or reduce our costs.• Supplier may choose to not renew its contract after 3 years

• New supplier qualification costs.

• Supports contractor in meeting its business plan• Retain a valuable supplier• Boeing want to build a strong supplier base

• Enable faster delivery of airplanes (reduce A/P flow time)

Managementalue

COST

PROFIT

• Unit cost reduction > 21%• Maintain or reduce cost-of-ownership TBD

(to airlines-spares)

• Reorder lead time <16 weeks (80 m-days)

• All changes incorporated by 1 Jan 99

• Point of use delivery of parts 100%

GoalsManagementalue

COST

PROFIT

• Recurring Cost -Total manufacturing cost (material & labor) measured in $/unit

• Re-order Lead time-ROLT- Total time from order receipt to on-dock delivery measured in M-days

• Flow Time- Product received on dock from supplier until product is consumed (installed in engine) M-days

• Implementation Time- (to install changes) Time to plan, make and qualify (parts built and delivered) engineering changes measured in calendar days

• Non-recurring costs- Total cost (contractor & supplier) to develop and implement change measured in % of return in 1 year.

• All rejections - Number of part discrepancies for workmanship, quality, fit, form, function issues. Measured in % of rejections per year .

• Additional Imposed Requirements Costs- The additional costs to manufacture the parts in accordance with the drawings measured in % reduction.

Attribute DefinitionsManagementalue

COST

PROFIT

ManagementManagementaluealue

COSTCOST

PROFITPROFIT

Weighting Attributes

Attributes are prioritized and graded using a “Paired Comparison” processes.

WeightingFactors

1. Low 2. Medium 3. High

9

6

5

6

1

0

6

8

22%

14%

12%

15%

2%

0%

15%

20%

100%

BA1

B

41

CC1

B2

C

DA3

B2

C3

D

EA2

B1

C1

D3

E

F0

0

0

0

0

F

GG2

G2

G1

D2

G1

0

G

HA3

H3

H3

D1

H1

0

H1

H

I

I

J

J

Attribute Score Weight

A A. Recurring Cost

B. Re-order Lead Time

C. Flow TimeD. Implementation Time

E. Non-Recurring Exp.

G. All Rejects

H. Add. Reqmt’s Cost

F. Reliability

Total

Managementalue

COST

PROFIT

PRE-STUDY

Attributes 1 2 3 4 5 6 7 8 9 10

*Product Benchmark

A. Recurring Cost ($)

B. Re-order Lead Time

C. Flow Time (mdays)

D. Implementation Time

E. Non-Recurring Exp.

G. All Rejects

H. Add. Reqmt’s Cost *

F. Reliability

16* 4

+.4K Today* -6.9K-1.5K -4.5K

0115 3

618 mo 4 2*

0.003%5% 3%

20% 30% 50%*

-34%-15%

*

33wks

30*

Scaling Attributes

Attributes should be scaleable, rather than binary.

Managementalue

COST

PROFIT

• Meet certification requirements

• First article inspection test - September, 1998 (?)

• First delivery is January 1, 1999

• Target costs

• Major interfaces and envelop must remain the sameForm, fit, function - transparent

• Engine interface loads

• Meet current operating envelope of engine

• 100% radiographic inspection

ConstraintsManagementalue

COST

PROFIT

A. Recurring Cost

PRODUCTE. NRE

Bleed DuctsTarget 650

Score

B. ROLT

C. Flow Time

D. Implementation TimeF. Reliability

G. All Rejects

408

Product Performance ProfileDisplaying Attributes

H. Additional Imposed Requirements Cost

Managementalue

COST

PROFIT

J. J. Kaufman Assoc, Inc.

Attribute Cost ROLT Flow Time Impl NRE Reliabili ty Rejects Rqmts TotalA Weighting Factor 22 14 12 15 2 15 20 100B Available Points 220 140 120 150 20 150 200 1000C Baseline Score (1-10) 3 5 1 10 10 6D Baseline Score (Weighted) 66 70 12 150 20 0 90 0 408E De lta (B - D) 154 70 108 0 0 0 60 200 592F Proposal Score (1-10)G Proposal Score (Weighted) 0 0 0 0 0 0 0 0 0H De lta (B - G) 220 140 120 150 20 0 150 200 1000


FACT FINDING

• What do you need to know about the problem that you don’t know now?

• What facts are known?

• Are these facts, opinions, assumptions, or prejudices?

• Where, or how can information be obtained?

RECORD ALL INFORMATION

The Processing of Information

J. J. Kaufman Associates, Inc.


THREE KEY QUESTIONSPROBLEM DEFINITION - TEAM BUILDING

1. What is the problem/opportunity we are about to discuss?

2. Why do you consider this a problem, or opportunity?

3. Why do you believe a solution is necessary?

The Value MethodologyThe Value MethodologyValue Management is a methodology, …. a structured, step-by-step procedure for solving Planning, Process, Business and Engineering problems and capturing opportunities.

It is not a tool. … It is made-up of aSet of toolsthat complement common initiatives.

The VM process takes multi-disciplined project representatives, molds them into a high performance team, and quickly (1 to 3 weeks) guides the team to the resolution of the project issues.

The Process is particularly applicable for both “small” projects, as well as resolving key issues within much larger projects.

(The Society of American Value Engineers (SAVE) has recently change their name to SAVE International, The Value Society, and the name of the VA/VE Process to “Value Methodology” rather than “Value Analysis/Value Engineering” due to emerging broader application of the process. The term “Value Management” is being used when an organization employs the Value Methodology for “Managing Value”.)

• Analyze Information• Define Problem• Set Targets• Assess Attributes• Identify Constraints• Isolate Functions• Develop FAST Model• Dimension FAST Model

Value Method

THE INFORMATION PHASE

THE CREATIVE PHASE

• Brainstorm Functions

• Generate Ideas (not solutions)

• Record Ideas

• Avoid Roadblocks

• Suspend Judgment

Value Method

THE PRESENTATION PHASE

Value Method

• Package Proposals

• Develop Sales Strategy

• Plan Presentation

• Present Proposal

• CLOSE

Value Management presentation developed by W. Marlo Stebner in cooperation with J.J. Kaufman, Associates, Inc.

Value Method

• Brief Management

• Select Project

• Structure Team

• Gather Information

• Plan Workshop

• Confirm Commitment

PRE-STUDY ORGANIZATIONPRE-STUDY

THE IMPLEMENTATION PHASE

Value Method

Assure implementation of proposals

• Complete changes

• Implement changes

• Monitor status

• FOLLOW-UP

Success is achieved after verification

POSTSTUDY

THE EVALUATION PHASE

Value Method

• Cluster Ideas

• Identify Champions

• Screen Ideas

• Rank and Select Ideas

• Expand Surviving Ideas

THE DEVELOPMENT PHASE

Value Method

• Develop Potential Proposals

• Perform Benefit/Risk Analysis

• Score Attributes

• Determine Pay-Back

• Validate Assumptions

• Create Implementation Plan

THE VALUE METHODOLOGYJOB PLAN

CREATIVE

EVALUATION

DEVELOPMENT

PRESENTATION

SUCCESSSUCCESSSUCCESSSUCCESS

POSTSTUDY

PRE-STUDY

Value Method

INFORMATION


GatherInformation

Value Engineering (VE) - is a systematic activity used during product development to reduce

costs without loss of product performance. The scope of value engineering includes design cost reduction, process improvements

and supplier cost reductions

Value Engineering

Define the Function(s)

Brainstorm

Evaluate

Investigate

Recommend


• Process Costing – ability to provide visibility & analysis ofcosts by business or manufacturing process

• Component Costing – frequently used with VE to determinewhere cost drivers & CERs are within the design, manufactureor assembly of a part(s)

• Feature to Function Costing – determines if a customer’sfeatures can be satisfied by the function(s) of a product and,if so, is it within the customer’s price expectations

• Design for Manufacturability and Assembly (DFM/A) – strivesfor the most effective process to make & assemble parts

• Benchmarking – comparative cost or process performance data

• Multiyear product/profit plan matrix – integrates data on revenues,spending, & investment over a multiple year time period

• Cost Tables – sources of detailed cost information

• Value Engineering/Value Analysis (VE/VA) – organized effortsdirected at analyzing the functions of products, processes, & servicesto achieve the lowest overall costs with no reduction in performance

• Quality Function Deployment (QFD)/ Voice of the Cus tomer(VOC)- ranked & rated customer & tech design rqmts. that can be measured & controlled by the integrated product & process development team

Core

Tools

Lean Design Methodologies


VS

M

DF

MA

QF

D

FA

ST TR

IZ

3P

TOOLS

Barriers

METHODOLOGY

SUCCESSSUCCESSSUCCESSSUCCESS

The Value Methodology

Lean Design

w/V

E


Brainstorm

Sponsor Opportunity

Team

Event

Pre-StudyCollect

Information

Prepare

Proposals

Present

Proposal

Plan

Approval &

Funding

1 2 3

$

45

678

9=0

=

Implementation

Analyze &

Screen

Identify

Alternatives

How Why

PROJECTPLAN

J. J. Kaufman Associates, Inc.

The Value Methodology Process


Cost vs. Performance

COST

Performance

Performance Tolerance Zone

Cost Tolerance Zone

Target Cost

Project Cost


• Customer requirements

• Estimated cost distribution

• Correlation of requirements to components (QFD)

• Evaluation of Value Index

• Target setting to value

IPT’s need to focus cost reduction on “value matchi ng”

The IDEAL - Linkage to Customer Requirements

Voice of the Customer Approach

Target Allocation Workshop


Concept of Value

VALUE =FUNCTION

COST


Concept of Value

Value = Esteem + Exchange + Utility

Cost


Concepts of Value - Desirable

Ideal Good Acceptable Passable

Value = Function

Cost

Function

Cost


Concepts of Value - Undesirable

Value = Function

Cost

Function

Cost

Undesirable but Passable

(cheapening the product)


Function Analysis

�Function Analysis is the key to understanding the problem.

�The first step is to brainstorm all possible functions of the product/process/system.

�Next, build a FAST Model to help identify any missing functions.


Fast Modeling


Benefits of Functional Thinking

� The function analysis system technique process (FAST) helps task teams plan projects, develop technical and business processes and procedures, and modify organizations for leaner, more effective performance.

� FAST displays functionally what has to be done and identifies dependent functions (how) and the reason for selecting those functions (why).

� Thinking functionally shifts paradigms and helps task teams innovate by changing the way they normally think about solving problems and capturing opportunities.

� Two basic questions are at the heart of FAST � Why? and How?� If ask strategically they will open the door to a wealth of information

hidden under levels of assumptions and misinformation

� Once learned, thinking and speaking functionally allows team members to communicate with anyone, regardless of their technical or professional background.


Synergism


FAST FAST

FASTFASTFASTFAST��

��

��

FAST

FASTA Logically Diagramed Function Relationship

The Value Methodology


Concepts of Function


Concepts of Function


Function Analysis� Functions - Describe what something does� Functions - Use active verb and measurable noun� FAST (Function Analysis System Technique) - A

logic diagram to describe how a system works.� Examples of Verbs and Nouns:

Active VerbsTransmitIrradiateProject

DissipateGenerateConvertReceiveReflect

NounsSignal

InformationDataHeat

RadiationCurrent

LightImage


FAST Diagramming

� Function Analysis System Technique� Developed in 1964 by Charles W. Bytheway� Applies intuitive logic to test functions� Displays functions in a diagram or model form� Identifies dependence between functions� Creates common language for team� Tests validity of functions� No “correct” FAST model - team consensus


FUNCTIONFUNCTION FUNCTION

HOW WHY

(GOAL) (METHOD)

Function AnalysisIntuitive Logic


Function Analysis� Functions - Describe what something does� Functions - Use active verb and measurable noun� FAST (Function Analysis System Technique) - A

logic diagram to describe how a system works.� Examples of Verbs and Nouns:

Active VerbsTransmitIrradiateProject

DissipateGenerateConvertReceiveReflect

NounsSignal

InformationDataHeat

RadiationCurrent

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FAST Diagramming

� Function Analysis System Technique� Developed in 1964 by Charles W. Bytheway� Applies intuitive logic to test functions� Displays functions in a diagram or model form� Identifies dependence between functions� Creates common language for team� Tests validity of functions� No “correct” FAST model - team consensus


Basic FAST Model

HigherOrder

Function

BasicFunction

Dependent(Secondary)

Function

Objectiveor

Specification

Independent(Support)Function

LowerOrder

Function

Concept

Concept

(AND) (OR)

Activity

RESPONSIBILITY/COST MATRIX

Symbol

Scope of the Problem

Independent(Support)Function

Right Scope LineLeft Scope Line

WH

EN

HOW WHYMinor Logic Path

Major Logic PathObjective

orSpecification


ALLOW SAFETY

FACILITATE PORTABILITY

OBJECTIVES OR SPECIFICATIONS

FAST Example - Overhead Projector

GENERATE NOISE

DISSIPATE HEAT

GENERATE HEAT

SUPPORT IMAGE

AMPLIFY IMAGE

FOCUS IMAGE

HOW? F.A.S.T MODELOVERHEAD PROJECTOR

CONVEY Information

PROJECT IMAGE

GENERATE LIGHT

RECEIVE CURRENT

TRANSMIT CURRENT

CONVERT ENERGY

(concept )

(concept)

OUTPUT INPUT

WHEN

WHY?


IMAGINATIONImagination is more important than

knowledge, for knowledge is limited, while imagination embraces

the entire world.� Albert Einstein


Lean Design and 3P IntegrationLean Design = VE + DFMA

� Robust requirements validation� Functional analysis of product� Requirements and function

linkage to components� Design to production/program

attributes � Innovative and creative concepts� Less parts � Fewer steps in Mfg and Assy� Reduces design and mfg rework� Determine production processes� Design to enable takt time and

poka-yoke� Lead time reduction

Production PreparationProcess 3P � Flowing production with high

quality (Poke yoke) that is reliable and predictable

� Moonshine and rapid prototyping to validate product / production design

� Simulation of to be fabrication and assy processes

� Product flow – Fishbone Diagram� Right sized assets

� Equipment� Tooling� People

� Production paced to Takt Time� Standard work and work in

process� Lead time reduction


Lean Design (VE with DMF/A and 3P)

�Attribute Grading

D e sig n C o n c e p tsS ele c tio n C rite r ia 1 2 3 4 5 6 7 8 9 1 0 11

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Group 1 Group 2 Group 3

�Generate Ideas

�Down Select

�Combine & Select

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�DFMA

�Process Mapping

�Prototyping

FAST Modeling

HOW? WHY?

PM

Prod

ME

MKTGJ. J. Kaufman Assoc, Inc.

A ttribute C os t R O L T Fl ow T ime Impl NR E R e li abil ity R e je c t s R qmts To ta lA W e ig ht ing Fa c to r 2 3 1 3 13 15 3 1 5 20 1 00B A v a ilab le Po in ts 23 0 1 3 0 1 30 1 50 3 0 15 0 2 00 1 0 20C B a s e line S co re (1 -1 0) 3 5 1 10 1 6D B a s e line S co re (W e ighte d) 6 9 6 5 13 1 50 3 0 9 0 0 3 90E D e lt a (B - D ) 16 1 6 5 1 17 0 2 7 0 6 0 2 00 6 30F P ro po s a l S co re (1 -1 0) 8 7 10 3 1 0 8 10G P ro po s a l S co re (W e ighte d) 18 4 9 1 1 30 45 3 0 0 12 0 2 00 8 00H D e lt a (B - G ) 4 6 3 9 0 1 05 0 0 3 0 0 2 20

PRODUCTScore

A. Recurring Cost

B. ROLT

C. Flow Time

D. Implementation Time

E. NRE

F. Reliability

G. All Rejects

H. Additional Imposed Requirements Cost

390Bleed Ducts650Target

�FAST Modeling

�Concept Evaluation

VE/DFMA Function Thinking Guidelines


Changing the rules (Think Function)….

• Reduce part count and part numbers. (Nonexistent p arts cost nothing to make, handle, assemble, purchase or service)

• Don’t fight gravity!

• Eliminate fasteners and adjustments

• Design parts to be self-aligning and locating ( Thi s can eliminate tooling)

• Ensure adequate access and unrestricted vision

• Design parts that can’t be installed incorrectly (M ISTAKE PROOF)

• Minimize opposite parts

• Use catalog parts

• Know process capability before specifying tolerance s

• Think Ergonomics

Important DFMA & VE Guidelines


Think Function

� What is the basic function of this part?� How is that function being performed?� How else can the basic function be performed?� Are there any unnecessary non-value added

secondary functions added to the part?� How can functions be combined?


Never design a part that you can buy from a catalog ! Never design a part that you can buy from a catalog ! Never design a part that you can buy from a catalog !

You can’t design and build standard parts for less than the cost ofbuying already available catalog parts.

Company X has 10,000+ New Design Part Numbers per M onth200 New Standard Parts per Month7 New Extrusions per Month

Design Reuse


VE requires SEEING whateveryone has seen,

With new materials, processes and fasteners being developed every year, seeing things differently is important. Th e above example illustrates using ‘Snap together’ design that may n ot have made sense 20 years ago. These designs are meeting comme rcial shock and vibration tests and an alternative that is incr easingly being used.

But THINKING differently thaneveryone has thought! (Function Thinking)

Functional Thinking – How else can I do this function?


21 Parts

The part on the right is obviously less complex.

Do engineers do this intuitively?

Remember, if a part doesn’t exist it doesn’t have t o be ordered and can never be late to the line!

6 Parts

Reduce Complexity & Part Count


Lowers costs for handling, purchasing, inspection, and inventory

Simplifies assemblies

Makes assemblies less prone to defects

Look at the function of neighboring parts to see if reallocation of functions could improve airplane level cost, quality and/or p erformance

Combine Part Functions


Assembly operations should be carried out in clear view with proper access

Improves ergonomicsEliminates special toolsReduced opportunity for Foreign Object Debris (FOD)

Assemble in the Open


Minimizes the need to reorient partsResults in reduced time and motionSimplifies tool designReduces the need for tools

Minimum Number of Surfaces


Quality is directly related to the number of parts being assembled. Modular design results in:

• Reduction of parts• Simplified assemblies• Quicker disassembly and repair using fewer tools• Simplified trouble shooting & fault isolation• Inspections for quality made easier• Cost effective upgrades

Use Modular Design


• Assemble from the top down

• Fighting gravity requires more tooling, clamps, fix tures, etc.

• Fighting gravity often results in Foreign Object De bris (F.O.D.)

Don’t Fight Gravity


Add part features to enhance positioning

• Does not hide important features

• Can force correct alignment and orientation

• Makes assembly errors next to impossible!

• Simplifies Inspection

BAD GOOD

Design for Part Identity


Fasteners add:

Build fastening function into design

Limit the number and types of fasteners

• Weight• Complexity• Cost (assembly, installation, and fastener)• Opportunities for quality problems

Eliminate Fasteners


Simplify Assembly

Facilitate Insertion: Design components with guide surfaces, choose simple moving patterns, make insertion unambiguous. Add guide surfaces, chamfers etc


Build in self-locating features

Surface features will keep parts in location after initial assembly (e.g., projections, indentations)

BAD GOOD

Provide Locating Features


“Determinant Assembly is a strategy utilizing part-to-part indexing wherever possible.

Uses part features to locate parts. Also known as: Advance Technology Assembly (ATA)

Determinate Assembly (DA)

Index Tooling Determinant Assembly


Use “paired” parts instead of R/H and L/H parts.

• With “paired” parts you have twice the quantity , and one-half the number of part types .

“Paired” parts (1 P/N) L/H & R/H parts (2 P/Ns)

Use “paired” Parts


Do you try to find out the ‘process capability’ tol erance of the manufacturing process(es) you are going to use, before you call out the tolerances on your design?

or

Do you specify a tolerance, and then let manufactur ing struggle to meet your tolerance?

Ensure that parts have design tolerances well within their fabrication process capability

MINIMUM.010

SPEC

.005

Dimensional Management


Ergonomics

Poor ergonomics leads to:Poor qualityLow moralIncreased cost do to inefficiency

Summary


“The best design……….

Is the simplest one that works!”

Simplicity

Albert Einstein


Think Functions

� What is the basic function of this part?� How is that function being performed?� How else can the basic function be performed?� Are there any unnecessary non-value added

secondary functions added to the part?� How can functions be combined?


Doing the same old thing..................

The same old way.................

And expecting different results

Insanity


ABOUT SAVE INTERNATIONAL

� SAVE International

SAVE International is the premier international society devoted to the advancement and promotion of the value methodology (also called value engineering, value analysis or value management). Value methodology benefits include decreasing costs, increasing profits and improving quality.

Society members practice the value methodology in the public and private sectors for organizations in more than 35 countries. VM applications span a variety of fields, including construction, corporations and manufacturing, transportation, health care, government and environmental engineering.

SAVE International offers member services such as education and training, publications, tools for promoting the value methodology, certification, networking and recognition.


Where to get more information…

� Wixson Value Associates, Inc.http://wvasolutions.com

� DRM Associates, Inc.http://www.npd-solutions.com/

� Society of American Value Engineers (SAVE)http://www.value-eng.org/

� Slide Share – Superfactory Lean Design Serieshttp://www.slideshare.net/ahmad1957/lean-design-sample

Questions?

Staple Puller Example


Staple Remover Example



Numerical Function Evaluation


Numerical Function Evaluation


Information Phase


Speculation Phase


Execution Phase

Lean Designwith Ve

Design

executive

foreign object

measurable

correct fast

team tests

job plan

paired parts

team consensuswixson