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
Wixson Value Associates Inc. 35/21/2009
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.
Wixson Value Associates Inc. 45/21/2009
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.
Wixson Value Associates Inc. 55/21/2009
Serial Product Evolution(A Language Problem)
Marketing Engineering ProductionSatisfy need
Express Need
Conceptualize solution
Produce Products
Identify opportunity
Wixson Value Associates Inc. 65/21/2009
A Failure to Communicate
Wixson Value Associates Inc. 75/21/2009
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
Wixson Value Associates Inc. 85/21/2009
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 .
Wixson Value Associates Inc. 95/21/2009
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.”
Wixson Value Associates Inc. 105/21/2009
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.)
Wixson Value Associates Inc. 115/21/2009
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
Wixson Value Associates Inc. 125/21/2009
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)
Wixson Value Associates Inc. 135/21/2009
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)
Wixson Value Associates Inc. 145/21/2009
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.
Wixson Value Associates Inc. 155/21/2009
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
Wixson Value Associates Inc. 165/21/2009
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
Wixson Value Associates Inc. 175/21/2009
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
Wixson Value Associates Inc. 185/21/2009
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%
Wixson Value Associates Inc. 195/21/2009
Thought for the day:
When you always do what you have always done - you always get what
you have always gotten.� Socrates
Wixson Value Associates Inc. 205/21/2009
Who Casts the Biggest Shadow?Influence
Product Cost
70%
20%5%
5%
Design 5%
Material 50%
Overhead30%
Labor 15%
Wixson Value Associates Inc. 215/21/2009
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
Wixson Value Associates Inc. 225/21/2009
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.
$
Wixson Value Associates Inc. 235/21/2009
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
Wixson Value Associates Inc. 245/21/2009
� 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
Wixson Value Associates Inc. 255/21/2009
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
Wixson Value Associates Inc. 265/21/2009
VE Task Team
Core Team
Core team consists of5 to 8 PARTICIPANTSOPTIMAL
Support
Support
Support
Support
Support
Support
Wixson Value Associates Inc. 275/21/2009
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.
Wixson Value Associates Inc. 285/21/2009
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
Wixson Value Associates Inc. 295/21/2009
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
Wixson Value Associates Inc. 305/21/2009
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
Wixson Value Associates Inc. 315/21/2009
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
Wixson Value Associates Inc. 325/21/2009
• 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
Wixson Value Associates Inc. 335/21/2009
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.
Wixson Value Associates Inc. 345/21/2009
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
Wixson Value Associates Inc. 365/21/2009
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
Wixson Value Associates Inc. 375/21/2009
• 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
Wixson Value Associates Inc. 385/21/2009
VS
M
DF
MA
QF
D
FA
ST TR
IZ
3P
TOOLS
Barriers
METHODOLOGY
SUCCESSSUCCESSSUCCESSSUCCESS
The Value Methodology
Lean Design
w/V
E
Wixson Value Associates Inc. 395/21/2009
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
Wixson Value Associates Inc. 405/21/2009
Cost vs. Performance
COST
Performance
Performance Tolerance Zone
Cost Tolerance Zone
Target Cost
Project Cost
Wixson Value Associates Inc. 415/21/2009
• 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
Wixson Value Associates Inc. 425/21/2009
Concept of Value
VALUE =FUNCTION
COST
Wixson Value Associates Inc. 435/21/2009
Concept of Value
Value = Esteem + Exchange + Utility
Cost
Wixson Value Associates Inc. 445/21/2009
Concepts of Value - Desirable
Ideal Good Acceptable Passable
Value = Function
Cost
Function
Cost
Wixson Value Associates Inc. 455/21/2009
Concepts of Value - Undesirable
Value = Function
Cost
Function
Cost
Undesirable but Passable
(cheapening the product)
Wixson Value Associates Inc. 465/21/2009
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.
Wixson Value Associates Inc. 475/21/2009
Fast Modeling
Wixson Value Associates Inc. 485/21/2009
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.
Wixson Value Associates Inc. 495/21/2009
Synergism
Wixson Value Associates Inc. 505/21/2009
FAST FAST
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FAST
FASTA Logically Diagramed Function Relationship
The Value Methodology
Wixson Value Associates Inc. 515/21/2009
Concepts of Function
Wixson Value Associates Inc. 525/21/2009
Concepts of Function
Wixson Value Associates Inc. 535/21/2009
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
Wixson Value Associates Inc. 545/21/2009
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
Wixson Value Associates Inc. 555/21/2009
FUNCTIONFUNCTION FUNCTION
HOW WHY
(GOAL) (METHOD)
Function AnalysisIntuitive Logic
Wixson Value Associates Inc. 565/21/2009
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
Wixson Value Associates Inc. 575/21/2009
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
Wixson Value Associates Inc. 585/21/2009
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
Wixson Value Associates Inc. 595/21/2009
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?
Wixson Value Associates Inc. 605/21/2009
IMAGINATIONImagination is more important than
knowledge, for knowledge is limited, while imagination embraces
the entire world.� Albert Einstein
Wixson Value Associates Inc. 615/21/2009
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
Wixson Value Associates Inc. 625/21/2009
Lean Design (VE with DMF/A and 3P)
�Attribute Grading
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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
Wixson Value Associates Inc. 645/21/2009
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
Wixson Value Associates Inc. 655/21/2009
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?
Wixson Value Associates Inc. 665/21/2009
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
Wixson Value Associates Inc. 675/21/2009
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?
Wixson Value Associates Inc. 685/21/2009
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
Wixson Value Associates Inc. 695/21/2009
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
Wixson Value Associates Inc. 705/21/2009
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
Wixson Value Associates Inc. 715/21/2009
Minimizes the need to reorient partsResults in reduced time and motionSimplifies tool designReduces the need for tools
Minimum Number of Surfaces
Wixson Value Associates Inc. 725/21/2009
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
Wixson Value Associates Inc. 735/21/2009
• 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
Wixson Value Associates Inc. 745/21/2009
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
Wixson Value Associates Inc. 755/21/2009
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
Wixson Value Associates Inc. 765/21/2009
Simplify Assembly
Facilitate Insertion: Design components with guide surfaces, choose simple moving patterns, make insertion unambiguous. Add guide surfaces, chamfers etc
Wixson Value Associates Inc. 775/21/2009
Build in self-locating features
Surface features will keep parts in location after initial assembly (e.g., projections, indentations)
BAD GOOD
Provide Locating Features
Wixson Value Associates Inc. 785/21/2009
“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
Wixson Value Associates Inc. 795/21/2009
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
Wixson Value Associates Inc. 805/21/2009
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
Wixson Value Associates Inc. 815/21/2009
Ergonomics
Poor ergonomics leads to:Poor qualityLow moralIncreased cost do to inefficiency
Summary
Wixson Value Associates Inc. 835/21/2009
“The best design……….
Is the simplest one that works!”
Simplicity
Albert Einstein
Wixson Value Associates Inc. 845/21/2009
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?
Wixson Value Associates Inc. 855/21/2009
Doing the same old thing..................
The same old way.................
And expecting different results
Insanity
Wixson Value Associates Inc. 865/21/2009
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.
Wixson Value Associates Inc. 875/21/2009
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
Wixson Value Associates Inc. 905/21/2009
Staple Remover Example
Wixson Value Associates Inc. 915/21/2009
Wixson Value Associates Inc. 925/21/2009
Numerical Function Evaluation
Wixson Value Associates Inc. 935/21/2009
Numerical Function Evaluation
Wixson Value Associates Inc. 945/21/2009
Information Phase
Wixson Value Associates Inc. 955/21/2009
Speculation Phase
Wixson Value Associates Inc. 965/21/2009
Execution Phase