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Mechanical Engineering C6 1ZA36 1

An Introduction to VALUE ANALYSIS AND VALUE ENGINEERING for Industries, Services, and Governmental Agencies C

Thomas J. Snodgrass Faculty Associate Department of Engineering Professional Development University of Wisconsin-Madison Ronald E. Thomson Lecturer Department of Engineering Mechanics University of Wisconsin-Madison

Prepared under the supervision of Department of Engineering Professional Development University of Wisconsin-Madison University of Wisconsin-Extension

L I L E > ( Jndependent Study

Copyright O 1990 by Board of Regents of the University of Wisconsin System All Rights Reserved
Produced by the University of Wisconsin-Extension Manufactured in the United States of America At University of Wisconsin-Extension, discrimination in employment and education on the basis of age, race, color, creed or religion, national origin, ancestry, sex, sexual orientation, veterans' status, arrest or conviction record, or qualified disability, including AIDS, is prohibited. Direct policy inquiries to Affirmative Action Programs, 432 North Lake Street, Madison, Wisconsin 53706.

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CONTENTS
Introduction . . . . . . . . . How to Do the Work of the Course

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SECTION 1 AN ORGANIZED APPROACH TO GOOD VALUE 1 2 3 4 5 6 7 8 9 10 11

. Why Value Engineering? . . . . . . . The Value Analysis Job Plan Information Gathering . . . . . . Identifying Functions . . . . . . . Technical FAST Diagramming . . . Technical FAST Case Histories . . . TaskFAST . . . . . . . . . . . Function Costs . . . . . . . . . Function Attitudes and Value Mismatch Function Analysis and Creativity . . Evaluation . . . . . . . . . . .

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SECTION 2 THE MANAGEMENT OF VALUE ANALYSIS ACTNITIES 12 13 14 15 The Role of the Engineering Value Specialist . . . . Interaction of theorganization withValueEngineering Management's Role in Value Engineering . . . . . . Value Engineering as a Career-Some Do's and Don'ts Request for Final Examination . . . Request for Transcript . . . . . . . Request for Certificate of Completion

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learn the value analysis job plan. the author of Teclzniques of Value 1940's. .INTRODUCTION Value analysis is a relatively new system which traces its origins back to the late i? Miles. This course in value analysis has four major objectives. It is a system developed for the elimination of unnecessary costs. The concept was conceived by ~D. It is designed to hggp you "7 understand the unique techniques of value analysis. Analysis and Engineering. appreciate the major factors in value analysis and understand the role of the value specialist in relation to the rest of an organization.

. It is designed to provide you with the instruction and information given in a classroom situation. and so forth for your use. Miles. scratch paper. and Governmental Agencies. Continue your assignment on additional paper as needed. For several units. Excerpts @om: "Tecltniques of Value Analysis and Engineering. 20 three-hole punch. . Write your answers to the written assignment neatly. MATERIALS A Mutual No. and unit number are filled in on the first sheet. study notes in this Study Guide that amplifhd. originally published by McGraw-Hill. The University of Wisconsin System. Fill in the blanks on the envelope. as appropriate. TEXTBOOKS Function Analysis: The Stepping Stones to Good Value. and mail it. **. request the final examination. or its current variation. COURSE ORGANIZATION Each unit includes a textbook reading assignment. Wisconsin. An Introduction to Value Analysis and Value Engineering for Industries. Your name anpthe course and unit numbers should also be on each added sheet of paper. is supplied for you to use in the course as a concrete example for value analysis. Meanwhile your written assignment will be graded by your course instructor who will also provide written comment. Madison. You will need to supply paper.Thomas J . and a written assignment. After you have completed all the written assignments. course name. put postage on it. 1986. New York. beginning on one of the special first sheets provided. It provides a project which gives you an opportunity to actually put into practice the various techniques presented in the course. erasers. on your work. You will find the directions for the final examination at the back of this Study Guide. 1972. D.HOW TO DO THE WORK OF THE COURSE This is the Study Guide for Mechanical Engineering C612-A361. the course number." L. with reading and written assignments and comments by the instructor. Snodgrass and Muthiah Kasi. You can now proceed with the next unit in the same manner.explain the reading assignment in the textbooks. After your corrected assignment has been returned to you. The course is divided into fifteen units. pen or pencil. Be sure your name. check it carefully and use it to guide any review study you may need. Then put all the sheets together and insert them in one of the special envelopes provided by UW-Extension. you must wait until the graded assignment is returned before proceeding to the next written assignment. From the 2nd ed. A forms packet of special forms required for some of the written assignments is supplied with this Study Guide. Services. mailing address.

Don't make your schedule too demanding or too rigid. no one really understands how or why it happens. 5. You may want to work it out on scratch paper first. Send any questions you may have in the same envelope with your written assignment. carefully and thoughtfully complete the written assignment. the better your instructor can respond. perhaps several times. Get all the information you can from drawings. Choose a time and place that is convenient and reasonably quiet. 2. You may confer directly with the instructor using the DAIN telephone line. inform the instructor on a written assignment sheet. please feel free to ask your instructor for help. Set up a study schedule to suit your situation. or to make your own notes. Before you start each unit. important. Therefore. or difficult. Here are some general guidelines for studying: 1. Note that many of the words and terms introduced in the course have p m i s e meaning.. If you have difficulty understanding some concepts or answering questions. quite honestly. Begin your study of each unit by a quick reading of the entire unit-both the Study Guide material and the reading assignment. An important part of your study consists of enlarging your vocabulary with these new words. We are well aware that individuils may have special question3 not answered in the reading or difficulties with the written assignments. After this second reading. In order to use this line. but don't be too lenient with yourself either. and things you find interesting. Make a choice that will leave you as free from outside distractions as possible-perhaps late at night or early in the morning. There is nothing strange. charts. if you wish a telephone conference at any point during the course. mail in the form at the back of this Study Guide. And most of the leaming that everyone does takes place outside of educational institutions. Use the scratch paper to keep track of questions that come to mind. 3.How to Do the Work of the Course 3 You will have completed the course when you have earned a satisfactory grade on each of the written assignments and the final examination. Don't worry about detail ox. everyday thing. I f you would then like a Certificate of Completion. you'll probably want to go back over all or part of the unit. you'll probably want to give earlier units a quick review. Then read the unit more thoroughly. Keep your final written work neat and legible. at home or at a local library. even though. When you are ready. 6. It is impossible to stop learning. studying and learning more detail and thinking things through. To study simply means to direct your learning toward a particular goal. . about getting everything to make sense this first time. Do not hesitate to ask for assistance. Everybody does it ahqost all the time. P HOW TO LEARN Learning is an ordinary. to outline what you're learning. or%ilficult about it. unusual. It's a courtesy to your instructor and your work will be more useful to you in reviewing the course. common. 4. The more specific your question is. Organize all your study materials and have them at hand before you begin. your instructor must call you. Each person-a student in a class as well as one engaged in self-study-learns as an individual. Include your telephone number and a time when it would be con enient for the instructor to call you. Always include scratch paper and a pencil.

your answers should first demonstrate that you have learned the course material before you offer other comments. read. it may not be possible to distinguish between a wrong answer (lack of understanding) and a difference of opinion. discuss. the better you will learn not just the material in this course but also a lot more about value and value analysis. You must earn a satisfactory grade (70 or more on a scale of 100) not only for each assignment but also the final examination to earn a passing grade in the course. make a mental game of applying them to things you encounter. but you must also develop the ability to use the system and techniques presented by the authors of the textbooks and this Study Guide. We understand that you may not always agree with what is presented. ""-in grading. In short. COURSE GRADING AND GRADE To learn value analysis you must not only completely understand what it is. see. Otherwise. What was wrong with a product or service that " disappointed you? How could its value be increased? Perhaps you could start a list of things which represent good value to you and a list of things which represent poor value.How to Do the Work of the Course 7. Relate what you're learning to anything you can. Your written assignment grades will reflect how well you comprehend and can apply the subject matter. If so. . or think through. The final course grade will be based half on the average of the written assignment grades and half on the course final examination grade. The world is full of products and services. The more you can observe. keep your eyes open and your mind active. As you learn value analysis techniques.

including those used in customer-oriented value engineering. Units 1 through 11. spe'aks of value analysis as a system. Miles. D. The tools of the system (Units 3 through 11) allow the value specialist. L. to shape and work data to determine that combination which warrants the term good value. The use offunctions to define products or services is a unique part of the value analysis system. presents the latest techniques. it is an "organized or established procedure. . as an individual or directing a team. author of Techniques o f Value Analysis and Engineering. covers the techniques and tools of the relatively new discipline called value analysis. by Snodgrass and Kasi.AN ORGANIZED APPROACH TO GOOD VALUE *v? \* Section 1 of this course. The need for this discipline arises out of changing economic conditions and changing customer and consumer attitudes. That is. The book Function Analysis: The Stepping Stones to Good Value." A job plan (Unit 2) provides the format for the system.

Chapter 1. It is hoped that you will apply the knowledge gained in this course to assure good value products and services in the future.from: "Techniquesof Value Analysis and Engineering. pages x-xii STUDY NOTES The use of the excerpts from Larry Miles' Techniques of ValueAnalysis and Engineering and the newer book. It covers the organized approach and techniques of value analysislengineering and discusses how various individuals and parts of organizations affect value. Several important points are made i n the Miles Excerpts. value management. Function Analysis: The Stepping Stones to Good Value by Snodgrass and Kasi. The excerpts from his Tecltniques of Value Analysis and Engineering. Sections 1-1 through 1-4 and Sections 1-8 through 1-10 Function Analysis: The Stepping Stones to Good Value. provide an excellent bridge from the beginning of value analysis to the present period. * *% * The term value analysis is often replaced by value engineering. Snodgrass and Kasi Forward and Preface.> Lawrence D. creative mental activity. or VA/VE. Miles developed the initial value analysis concept and directed the early training effort. D. or other synonyms. the problem appears to be that the foreign makes represent better value in the eyes of the buyer. This course in value aj)alysis/engineering describes a system whose objective is to reverse this situation and assure good value products and services. by Srkodgrass and Kasi. Function Analysis: The Stepping Stones to Good Value. The first important concept is that value analysis is a problem-solving system that has as its objective the identification of unnecessary cost. VE. The training of value specialists and the initiation of value programs is explored. Miles also discusses four types of thinking (evaluating information. penetrating analysis. The reasons can be many. 4 . It may also be written as VA. value assurance. and judgment-type mental activity) that are utilized in the problem-solving technique called value analysis.WHY VALUE ENGINEERING? A drive through older communities reveals many vacant factory buildings. concerning value analysis and the value analyst or value specialist. furnish an excellent base reference to the main text you will be using. 2nd ed." L. READING ASSIGNMENT Excerpts. . The concept of the "coaching of champions" is another significant factor in value analysis. Miles Preface Chapter 1. but leading the list are factors which involve the word value. Today we are aware of world competition that threatens some of our major industries. and again. Miles describes this relationship very well in the preface he wrote for Function Analysis: The Stepping Stones to Good Value.

Many have higher budgets than necessary due to incomplete understanding of the voters' desires and the students' needs. 2. You should be able to discuss various aspects of value and various approaches to increasing value. Numerous examples can be cited that show that value analysis provided more of what customers wanted. just think about industrial examples with which you are familiar. WRITTEN ASSIGNMENT 1 Complete the following work and send it to the University of Wisconsin-Extension for grading. 5. The obstacles to achieving and maintaining value in products or services relate to time shortages.8 Unit 1 A very significant part of value is established by the customer. We also furnish printed envelopes that should be used for mailing in your written assignments. what future plans you have that include value analysis. See complete instructions for preparing your written assignment on page 2 of this Study Guide. What are the three major aspects of value? 10. can benefit from value analysis. 1. Note also that public services. why you are taking this course (or what you hope to learn). the product must be manufactured at a cost that generates healthy profits when sold at a competitive price. A product of value must also meet requirements imposed by government bodies that reflect concerns such as those related to safety or the environment. One of the printed first sheets supplied by us should be carefully filled in and used as the first page of each of your written assignments. Wh&s value analysis trying to do? What is the definition for value analysis given by L. Miles? Why is value analysis needed? What are four roadblocks mentioned d t h e assignment? In what areas of an organization can causes for poor value be found? What are the four types of mental activity involved in value analysis? What is the meaning of "appropriate performance" as used in value engineering? What do the authors say is necessary to obtain the best value? 9. lack of measuring. As Miles points out. You should be able to list the five questions and give an example for each. An important consideration is the effect of value analysis on the productivity of ' a n organization. of course. Write a short essay telling your instructor what exposure you have had to VA/VE prior to this course. a product must meet the customer's expectations in order to be acc6ptable. and at a lower manufacturing cost. 3. 7. because the VA *%. 8.processmade an organization work as an integrated whole rather than in isolated parts. And. Today the phrase "voice of the customer" is heard more and more in boardrooms and in design sessions. Miles presents five key questions in Section 1-10 that must be asked and answered in order to select a value analysis project and prepare individuals' minds to accept value analysis techniques. . human factors. 4. You have encountered many of these obstacles. and technical changes. 6. a . Please use a separate envelope for each assignment. such as those provided by a school system. Higher costs than are necessary for a good value product can be caused by every part of the organization.

It is essential in today's volatile. What Is Value Analysis? Value analysis enables us to secure the winning answers."L. and services. . upon reflection. Good Value. to assure that this process continues we must be certain that we function in a cooperative supportive environment where the risk of personal loss is minimized. But we must provide this good value not only to our customers but also to ourselves. We want to make our company a "winner. Our companies are struggling in the face of more capable competitors. Moreover. integral part of how we run our businesses. as we are seeing all around us. or technology available for solving problems. Moreover. Section 5-3 STUDY NOTES We in business today are confronted by a paradox. Then we must act decisively on our findings. D." thereby making all of us winners. processes. disciplined. We all are aware that the absence or failure of any one part of a system can cause severe problems and even failure n the entire process or product. talent. That is a significant reason why so many of today's products aren't good values. We must adopt methods that utilize the knowledge and talent available to our organizations to identify these better answers. analyze. In most cases the essential information and talent are available to us. problem-solving system that's necessary to enable us to efficiently bring information and resources together and solve difficult problems to our company's advantage by giving products and services of really "good value" to everybody. Our challenge is to learn how to effectively access and utilize these resources to secure better solutions. such a system could be defined as a set of rules or principles arranged in a logical order linking all of the various parts. Value analysis can help us do just that. Never have we had so much information. This unit discusses the value analysis job plan-the essential steps in the sys)em which ' : enable us to achieve good value in our products. competitive market to provide good value in our products. Specifically we must learn how to gather. To assure continued success. understand. and even. processes. and utilize the information to develop solutions as good as or better than our competition. Yet we are failing in our task to find better solutions. just closing their doors. we realize that most products and services in operation today have no overall system (set of procedures) to assure that they meet the criteria of good value. Then we must implement these answers. and services.THE VALUE ANALYSIS JOB PLAN Advances in the communication fields and the aerospace industry have emphasized the importance of good systems. According to Webster. this must be an a. Really good value describes a product. VA is the organized. c" READING ASSIGNMENT Exceiptsfiom: "Techniques of Value Analysis and Engi~zeering. Miles Chapter 5.

in which everything is questioned. B . or service which has high acceptance by the customer at a price he is willing to pay while producing good-to-highprofits for the supplier. attention to details. most efficient way of achieving the good value solutions we must have for everyone to win. are significant in overcoming this obstacle. Very seldom does good value just happen-we must work to achieve it. and a commitment of time-all with the active support of management. With this commitment. The lack of new ideas. The difficulty of securing the essential information relating the customer's attitudes to the producer's costs. Honest wrong beliefs-those things that we know to be absolutely true.Unit 2 OVERHEAD MATERIALS Figure 2-1 The Goal-Good Value Balance process. the VA problemsolving system is still the fastest. When we cease providing either side of this good value balance. but are not true. our companies will be in trouble. VA demands hard work. 3. 4. It is essential throughout the value analysis process that we be sensitive to roadblocks (the barriers to achieving good value) and use the VA system to help overcome these roadblocks. VA's pursuit and use of high quality information and its structured zero-personalrisk team approach. There are four significant roadblocks that we must address to assure that our quest for good value is successful: 1. Value analysis is effective in providing new and valuable insights for problem solving through techniques for getting i ormation and ideas from expert sources plus the synergy achieved with team d namics and with specific creativity techniques. Vque analysis information gathering and analyzing techniques are effective in overbbming this obstacle. Lack of time. Roadblocks to Good Value. 2.

Ln this step we answer the questions: 1. First. Job Plan 2. Mind tuning is a very powerful technique discussed in the Miles Excerpts for this unit. THE INFORMATION PHASE The Information Phase of the job plan is the most complex and time consuming of the entire value analysis study-often consuming about 50%of the time. services. Planning Phase 5. Evaluation Phase 4.and often as high as 40%. efficient process. and the questions and measures within each step. Once this is accepted. Value Engineering Specialist 4. accurate. it is recognized that VA initially disrupts an organization because it demands change. ? Third. Analytical Function Language and FAST 6. The Value Analysis Approach. it is possible to penetrate to really good value. approaches. Function Attitude Analysis 8. Team Dynamics 3. Second. Documented studies show that the dollars of cost for carrying out a VA study are returned by a multiple of 6 to 10. spin-offs to related products and services increase these savings many times over. Information Phase '. Creating on Function 9. New ideas will be generated. < Mind Tuning. Carefully read this section. Function Cost Analysis 7. Implemented savings virtually always range from 10% to 20%. It is the discipline of the job plan. It is essential that we determine as precisely as possible exactly what problem we are trying to solve. VA usually uses a multi-discipline group from within an organization and impels that -1 group to work toward common goals to achieve good value.rc r.Very often. The high quality of the solutions will justify the time and resources invested because you will know that you have pinpointed just those solutions that will secure the good value you seek. Value analysis is an organized problem solving system consisting of five distinct steps which encompass the entire study: 1. Wrong beliefs will be identified. Creativity Phase 3. Implementation Phase These five steps make up the VA job plan and each must be thoroughly completed before proceeding to the next step. What does it do? 2. VA uses nine specific techniques and concepts: 1. What are the customers' reactions? .Unit 2 11 Tools of Value Analysis. VA can overcome the obstacles to good value. and systems. Computer Cost and Attitude Support 5. VA deliberately uses a group of techniques. Finally. that assures a progressive. 2. Value Standard (PAR) Each of these will be covered in detail d & n g this course. one of the most convincing reasons for VA is its impressive record of implemented cost reductions. and actions to assure good value products. What does it cost? 3. The essential information will be obtained.

it is important that we eliminate all the non-tolerated faults and concentrate on giving the customer a product that gives him the performance that he wants at a price "*-that he is willing to pay. or service 1) has high acceptance by the customer (or user) and 2) assures reasonable or high profits to the producing organization. through team selectidh and the Information Phase. develop analytical language (determine functions). and the techniques used in the Creativity Phase enhances the second. THE EVALUATION PHASE The objective of the Evaluation Phase of value analysis is to sift through (screen) all the ideas generated by the creativity activity and develop the value standard. determine function/cost relationships (allocate costs to functions). For high producer value. develop the FAST diagram. Value analysis has the goal of achieving both these value requirements. gather user attitudes about the products. the goal of value analysis is good value. Creativity is bringing into being or developing something that is new to the creator&). The value standard is the single best combination of all the generated ideas that yields the implementable solution with the greatest value. 2. For high customer acceptance. . we must eliminate all of the unnecessary cost from the product so that we have one that assures us of good-to-high profits. determine the functions with the greatest opportunity of assuring good value. e- Good value is achieved when the product. THE CREATIVITY PHASE Value analysis uses creativity techniques to identify all the possible ways to achieve or help to achieve functions. It is in the Information Phase that we first carefully examine the two sides of the value relationship-customer attitudes and producer costs. It is reoogplred that two factors embody this process: 1. gather similar information about competitors' products. determine function/attitude relationships (iden* faults and determine customer acceptance). The VA process. We do not evaluate or judge the creative possibilities until the next step of the job plan.12 Unit 2 4. That is. has enabled us to achieve the first of these factors. The knowledge bits required to deal with the task at hand. The mental ability to readily join these diverse bits of knowledge into a potential solution. process. Where is the greatest opportunity for value improvement? In order to satisfactorily answer these questions we must gather all of the relevant information about the project. Value analysis employs the brainstorming technique developed in the 1960's by Alex Osborn as the actual working activity to generate all of the ideas related to the candidate functions identified in the analysis step of the Information Phase. Notice that we are attempting only to identify possible solutions.

5. Miles consider the most important? Describe what is done in the Information Phase of the job plan. For a value specialist working alone on a problem. Prepare and present results of the value study to the decision makers with the intent to obtain their approval to proceed with implementation. Work closely with vendors. Develop implementation plans. then all that is needed is to activate that plan. THE PLANNING PHASE Good planning is essential for the entire VA study. 3. Consult with specialists about impr ving or combining ideas. Explain what the value analysis approach is. Solici their ideas. but in this specific step of the job plan we must take the value standard developed in the Evaluation Phase and develop it in detail. '*. 10. Here are the steps of the Planning Phase procedure. 4. What should be the underlying objective of the value study? 2. we must prepare arfd. The entire value study must be directed to achieving implementableresults. identify how many peopk are required for each step of the job plan. and use and pay for their help. Once this is completed. It means absolutely nothing to identify fabulous cost savings if these cost savings are never actually realized in the marketplace. Give an example from your experience of each of the four categories of roadblocks. 2. and if you have developed a workable implementationplan based on acceptable risks with worthwhile objectives. ? < THE IMPLEMENTATION PHASE A successful value study can happen only if the recommendations are implemented. If this is done. Research and gather information that is needed to substantiate the assumptions made in the Evaluation Phase. the team should closely monitor the actual implementation to assure that tactical problems are solved and the objectives are pursued. Anticipate potential problems and roadblocks. 4. 11. Each of the screens helps us identify the best implementable ideas for improving the value. WRITTEN ASSIGNMENT 2 See the instructions for preparing your written assignment on page 2 of this Study Guide. 7. 6. 4p3 6. 3. What is "good value?" What is the problem solving system of value analysis? Which parts of the system does Mr. encourage their assistance. Keep management apprised of the progress of implementation-both good and bad. What factors maximize a person's creativity? 8. present our recomrneudations for management approval. What is the output of the creativity step? 9.* u 1. . Since very few plans are perfect. 5. 13 1.Unit 2 Value analysis utilizes a four-step screening process to methodically evaluate the generated ideas. What is the output of the information step? 7. Analyze the risks.

disappointing and have often been judged as out-and-out failures." L. Since overhead costs are not included. Sections 13. D. The first factor.5 STUDY NOTES Obtaining the proper information is a major challenge to the value specialist. When a dollar sign is attached to afunction (verblnoun). Study carefully the five examples given in the Miles Excerpts. will be discussed in Unit 14. What is or is not included in the cost figure for material or labor must be clearly understood." Assuming for the . Miles Chapter 8. lack of management participation. *'Cr READING ASSIGNMENT Excerptsfiom: "Techniques of Value Analysis and Engineering. As you study the six types of generalities. Specific information often provides the springboard for major cost improvements. Complete understanding of Section 8-1 in the Miles Excerpts can eliminate many problems. Customer attitudes are now recognized as of equal importance to costs and must be part of the information data available for the value engineering study. this is seldom the type of cost with which management is acquainted. it takes on a significance.1-13. Miles outlines the types of costs needed along with some of the problems involved. Types of costs and cost practices are as extensive as the organization using them. think of six different types of generalities that relate to your particular organization or to an organization with which you formerly worked. It is important that the necessary cok @ available and in the proper form. a high percentage relate to two factors: lack of management participation. Where management cost figures include overhead. It is important to realize that cost is the important factor indecision-making. Often.INFORMATION GATHERING Value analysis has been attempted in numerous situations in which the results have been. "I know what the customer wants better than the customer. Snodgrass and Kasi Chapter 13. cost figures used in the value analysis study should also include overhead. inadequate or poor information gathering. Judgments as to what can or c m o t be done in the areas of overhead cost can be made as the job plan progresses. Costs are a key type of information. cost specialists want onlgmaterial and labor cost totals to be used in a value analysis. When the reasons for this are analyzed. and inadequate or poor information gathering. Some types of cost are considered at every phase of a product or service. or cost visibility. It is not unusual when seeking customer/user attitudes to have someone in the organization say. This unit deals with the second factor. at the least. Introduction and Sections 8-1 through 8-3 Function Analysis: The Stepping Stones to Good Value.

1. 3. 9. . Here is another opport 'ty for you to list a group of questions that might come up in your organization.4 and 13. Several examples are considered in the Miles Excerpts. Constant effort is required to find the best sources of information.customer or user. What is the VA definition of a roadblock? Name six difficulties mentioned in this unit that are often encountered in getting meaningful costs. at the very least the information that this individual has should be converted into a usable format similar to that of the a priori method described in Function Analysis: Stepping Stones to Good Value. Note these carefully. 4. 6. Then determine the best sources for obtaining answers to these questions. Why is it important to obtain customer attitudes? What specific types of data are obtained in a market research? What does this unit say about how we can secure good information? Miles gives five specific examples of situations where meaningful costs are not available. What are the important factors in decision making? Why do many VA projects fail to achieve their objectives? Name six generalities that often stop thinking in your organization. 5. 2. the salesperson in another. Z WRITTEN ASSIGNMENT 3 See the instructions for preparing your written assignment on page 2 of this Study Guide. Each technique has certain advantages and disadvantages. 10. The answers to questions must be sought from many sources-the engineer in one case. 7. Read this section carefully to understand how the data was entered." But there are different levels of customers in the path from the producer to the ultimate.12 to get a feel of the types of data obtained. True value judgments come directly from the "customer.5 review various steps and market research techiques available.Unit 3 15 moment that there is truth in the statement. management policy in a d. Sections 13. and scores were determined. Select three of the examples and discuss ways of obtaining more mean-'*" ingful costs for each.7 through 13. Name three ways to end action blocking that are covered in this chapter. pages 225229. 8. Study Figures 13. judgments were made.

the Mutual No. The reading assignment for this unit discusses the reasons for using functions to better understand the problem we hope to solve. we will be studying the techniques of value analysis and applying these techniques to the design of a consumer product. Second. etc. value analysis encompasses approaches and techniques for improved understanding and application of these skills. and industrial and consumer products. In the following units of this course. In order for us to get the most out of value analysis it is absolutely necessary that we clearly understand functions and are able to find the correct f ctions relating to the problems we are trying to solve. without identifying a specific method of performing that action. It helps us focus on the goal rather than the production process. process. READING ASSIGNMENT Function Analysis: The Stepping Stones to Good Value. does rather than how it is produced. In business and industry. a verb (active) and a noun (measurable). value analysis has been used to improve business services. for solving problems.IDENTIFYING FUNCTIONS The techniques of value analysis can be used to improve the value of our decisions for almost anything we do. Function analysis results in a clear statement of what a product. often they are too lazy to exert the necessary effort to correctly identify all of the functions. evaluating. The book also discusses that function analysis is often misunderstood and resisted by people. First. 20 three-hole punch. Many problem solvers (including engineers and architects) when first learning about value analysis say. manufacturing processes. What is different about value analysis?" The response to the question is twofold. value analysis includes a unique and powerful method. The student must be prepared to spend a great deal of time on this unit and on Unit 5 to establish a soundfohdation for the remainder of this course. called function analysis. a successful problem solver must be good at gatherillg pertinent information and developing. It is essential that you clearly understand what a function is.. and implementing solutions. it gives us greater insight and an essential perspective for arriving at good value solutions to our problems. "I already do that in my work when I solve problems. . Often beginning VA (value lalysis) practitioners think that it is only necessary to capture the general idea of the performance action involved. keep in mind that the same techniques can be adapted to many other kinds of problems and situations. Although our approach to the subject will be product oriented. . Snodgrass and Kasi Chapters 1 and 2 STUD%? WTES The most powerful tool of value analysis is function analysis.iP A function is a required performance action described by two words.

Unit 4 17 Read and understand the definition and the words (see following) used in the definition. Hence the glass bulb also has the function of Prevent Oxidation (of the filament) which leads to Exclude Oxygen.) Here are some possibilities. But why use an inert gas? For one thing. required + It's something that is necessary to satisfy the user or customer. It is very important that we describe the functions of products as clearly and concisely as possible. Although it usually refers to a product part. is a function with a noun that has no apdarent definite measure. passive verbs such as "provide. Enhance Appearance. Then determine which functions each component performs. but that is not all it does. we can specify precisely what level of torque is to be received-e. Prevent Oxidation. See Figure 4-1. Receive Torque* is a function with a measurable noun. It also has the function Generate Heat. Its function could be to Contain Gases (specifically. Try to avoid vague. we can start to describe a light bulb by what it does. a noun plus a verb. Interpret the word component broadly. we cannot precisely specify what level of "appearance" is acceptable. Before we define the remaining functions of the light bulb. we will ask you to review the function definition on the previous page and convince yourself that the three functions for light bulbs above satisfy it in all respects. QUESTION: Parts can have more than one function. to insure that oxygen is not in the vicinity of the filament when it is heated. this enhances clarity and preciseness of the action to be performed. Look at the bulb and clearly understand why each of the functions identified with the specific associated components is appropriate. . *1 Ir A common approach to identify most of the functions for a product is to list all of the components for the product. we will ultimately pick the one that seems the most descriptive of the function that the glass bulb performs. .g. inert gases)." 0 two words. In summary. 50 foot-pounds. This will lead to seeing it from a different and very useful viewpoint. or Exclude Oxygen-is accurate. a verb and a noun + Exactly two words. 0 performance action + "What it does. Does the glass bulb have any other functions? * Functions will generally be in italics with initial letters capitalized when they appear in the body of the text. Although any of these functions-Contain Gases. It is apparent that one of the functions of a light bulb is to Emit Light. it may also indicate an operation or other cliaracteristic feature.. on the other hand. What is the function of the glass bulb? (Stop reading and take a few minutes to try to determine it yourself. 0 active verb + Whenever possible use an active verb. Following is an example of the function identification process for an incandescent light bulb. Functions such as Retain Pin are unacceptable. 9 % Now we will proceed with determining the function of each of the components. (We may not want the heat." measurable noun + We want to use measurable nouns so that we can establish exactly what amount satisfies the requirement. this prevents oxidation of the filament. 0 specific method + Don't use names of components and elements that are part of the solution. but Generate Heat is a significant function of the light bulb which the designer must accommodate.) Some specialty light bulbs might also have other functions such as Project Color." not "what does it.

Therefore Convert Energy is a function. Notice that we have also included functions that are the result of specific operations and materials. We now have a reasonable list of func&ns (perhaps you can improve on it) that describe what a light bulb does: Emit Light Generate Heat Prevent Vaporization Prevent Oxidation Convert Energy Receive Current Conduct Current Disperse Light Prevent Short Minimize Heat Mount Bulb Resist Corrosion Attract User Identify Product Protect User Resist Breakage . it Receives Current. and some of the energy will Generate Heat. and Generate Heat. Light Bulb and Components Now let's look at a couple of other components. specifically. One function of the filament is to Emit Light. A summary of functions of the light bulb and each of its components is given in Table 4-1. Qae function of the center contact is to make electrical contact with an available energy 2 o e e . It also Conducts Current. As a result. But in order to do this it must convert electrical energy to luminous energy. Convert Energy. the filament does these three things: Emit Light.Unit 4 GLASS BULB INERT GASES SUPPORT WIRES HEAT DEFLECTING DISK LEAD-IN WIRES GLASS STEM INSULATION CENTER CONTACT Figure 4-1.

Unit 4 Table 4-1 Engineering Professional Dew COMPONENTS Light Bulb Glass Bulb T FUNCTIONS Emit Light Generate Heat I COMPONENTS I FUNCTIONS I I Identify Product Protect User I + .- Prevent Vaporization (of filament) Edges Prevent Oxidation Filament Emit Light Convert Energy Generate Heat Center Contact Insulation Stem Support Wires Lead-in Wires Heat Deflecting Disk Inert Gases Base ~eceive Current Conduct Current Prevent Short Disperse Light Conduct Current Resist Breakage Conduct Current Minimize Heat (at base) Prevent Vaporization Prevent Oxidation Receive Current Conduct Current Mount Bulb - - Finish on Metal Parts Resist Corrosion Attract User - "pyright O 1989 by Board of Regents of the University of Wisconsin System FORM 401 .

we recommend that you follow the approach used with the light bulb. mark.Unit 4 WRITTEN ASSIGNMENT 4 See the instructions for preparing your written assignment on page 2 of this Study Guide. These have measurable nouns. Keep in mind that vque analysis puts emphasis on functions that can be quantified (measured) such as ~ecei~$durrent. Otherwise they would not be there. Take particular note of all of the cost elements of the punch assembly. A thesaurus. there are grooves and holes on others. Use the Components/Functions Forms 401 provided in the forms packet. Which of the functions of the light bulb are expressed in two-word measurable terms? 3. '%- As you do Question 6. screw. 1. remember that for the punch to work it must receive energy from somewhere. It is essential that you consider everything. See the punch and Exhibits 4-1 and 4-2. well organized essay deiining what a function is and explaining why it is useful. the various machining operations. etc. Transmit Torque.) . or 1000 lumens. 100 inch-pounds. and technical handbooks are important references in choosing the best verb-noun functions that answer the question "What does this component do?" Caution should be exercised not to use words with local meanings (words that mean something other than what the dictionary says they mean). 2. As a starter. such as the four components. This is like the the light bulb's energy receipt (Receive Current). Write a short. Measured values might be. Is it necessary that the functions be precise? Explain your answer. and the assembly of various components into the final four-piece assembly. Clearly explain why component names are unacceptable as function nouns. nut. 5. Identify all of the functions for the punch assembly of the three-hole punch. there are reasons for every bend. hole. a dictionary. for example. clear. Which of the functions of the light bulb are not expressed in two-word measurable terms? 4. Note that some of the pieces are plated or treated. Assume that you must explain to your management about functions. Emit Light. 7 amperes. material thickness. What functions do these perform? There are special materials used for some of the components. (An example of an unacceptable fuuction is Install Spring. What functions do these perform? You must look at everything. the plating material. 6.

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TECHNICAL FAST DIAGRAMMING
NOTE: Do not attempt the written assignment for Unit 5 until you have received the corrected written assignment for Unit 4. It will be returned with additional material necessary for Unit 5. Before proceeding with this unit, carefully review your corrected Written Assignment 4 along with the new material sent to you. Make absolutply certain that you understand why the functions are shown as indicated in the additional material. It is essential that you understand the reasoning for the functions before you attempt a FAST diagram. The material in Unit 4 is so important and so often misunderstoq$ that you may not receive a normal grade on your first attempt at Written Assignment 4. A grade of C/R * is not uncommon since we find that most students need to improve their understanding by having a second try.
In Unit 4 you determined the functions of the punch assembly for the Mutual 20 threehole punch. In this unit you will arrange the functions in a hierarchy called a FAST @unction Analysis System Technique) diagram. A FAST diagram shows the specific relationships of all the functions and tests the validity of the functions. It is an essential and culminating part of the function analysis technique. Two types of FAST diagrams are in wide use: task-oriented and technicallyoriented. Each of these types of FAST diagram should be mastered by the serious value engineering student; neither works best for all problems. Task FAST diagrams are very effective for solving all problems for which a customer (and customer need) can be identified. Generally, this means that the Task FAST diagram is superior whenever the product the customer buys is in exactly the same form as the product the team develops. A customer would buy a three-hole punch rather than only a single punch assembly (except as a service part). Therefore a Task FAST diagram would be suitable for designing the total three-hole punch (which would contain"*" the assembly), but would not be suitable for a value analysis study to design only the punch assembly (a sub-assembly). Technical FAST diagrams are primarily used for single components, sub-assemblies, and processes (such as manufacturing processes). The next two units are specifically directed to Technical FAST.

READING ASSIGNMENT Function Analysis: The Stepping Stones to Good Value, Snodgrass and Kasi Chapters 3 and 4

* C/R, or C & R, means "Correct the incorrect parts of the written assignment and Resubmit for grading." Any C / R grade is completely replaced by the grade received on the corrected written assignment.

24

Unit 5

STUDY NOTES Early value analysts, such as Art Mudge and Jarbo and Ferguson, were dissatisfied with the processes for finding the correct functions of a product and determining their hierarclkal relationship in the final design. Their early work inspired Charles Bytheway to hit upon the basic ideas of a FAST diagram which he presented to SAVE (Society of American Value Engineers) in 1965. Although the idea of the FAST approach developed by Bytheway was sound, it was a number of years before the procedures for FAST diagrams we use today were fully developed. Sections 3.1 through 3.5 summarize the evolution of the FAST diagram. Carefully study Sections 3.6 through 3.8. A clear understanding of the philosophy and general rules should provide the motivation for constructing and using good FAST diagrams. Take particular note of the Task FAST diagram, Figure 3.7, for the hand drill; this is still a good representation. Chapter 4 explains each of the elements of a Technical FAST diagram and how they fit together. Carefully study all of the seven important segments in a Technical FAST diagram and be certain that you are clear on how to apply them. -.he Following is a detailed explanation of the elements of a Technical FAST diagram and an example of the rationale of conslructing such a diagram for the incandescent light bulb discussed in the last unit. The Technical FAST Diagram. A Technical FAST diagram is a picture of all the functions of a product (process, etc.) showing their specific relationships to each other and clearly showing what the product does. It is analogous to a parts blow-up drawing and yields a different and useful perspective of the problem.
Technical FAST diagrams 1. are used to test the validity of the functions and insure that all the functions are included in the analysis. 2. concisely show the problem as it is or as it could be. 3. can be used to define, simplify, and clarify the problem. 4. aid communication. 5. enable us to examine where the costs are located. 6. aid the creative process. 7. define the scope of the project. A c&hPleted FAST diagram is the general representation of a result achieved by the Functional Analysis System Technique. We will use Figure 5-1 in this Study Guide to point out the features of a completed FAST diagram and introduce its terminology. We will be using the light bulb example to help illustrate how a Technical FAST diav ' gram is developed. Each block in the diagram represents a two-word (verb-noun) function. The functions, or blocks, between the two vertical shaded lines are functions of the project or problem, such as our light bulb. The region between these lines thus represents the scope of the problem under study. It includes all the functions that the product itself performs. Each function appears only once. There is a left (or HOW) scope line and a right (or WHY) scope line. Two additional functions, one outside each scope line, are also required.

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The Critical Path. There is a critical path of functions which runs between the two scope lines. Ideally it is a single, unique path on a Technical FAST diagram which never branches into multiple paths. (On Task FAST diagrams, multiple paths are common.) The critical path functions are those functions of the problem that are absolutely

Unit 5 .

The HOW question: HOW is "a higher level function" accomplished? Response: "A lower level function. All other functions are called supporting functions. The arrows beneath the HOW and WHY labels in Figure 5-1 indicate the direction to look for the respective answers." and conversely. a pair of adjacent functions. One asks both a HOW question and a WHY question. from left to right. Consider the pair of functions Emit Light and Convert Energy. there are two external functions.WHY Questions. We'll apply the HOW-WHY questions to verify that Emit Light is a higher level function than Convert Energy. See Figure 5-2 in this Study Guide. When that action occurs. Once the critical path is determined. the higher order function and the causative function. The highest level function within the scope of the problem or project is called the basic function. the functions within the scope of the project fallainto two major categories: critical path functions and supporting functions. The HOW question to this function must also be answered by the Causative Function. Emit Light is a higher level function than Convert Energy and they are. putting the actual functions within the quotation marks. or necessary?) Response: Emit light. as shown in Figure 5-1.26 Unit 5 necessary in order to achieve specifically what the user (customer) wants done. HOW. . d *& The HOW question: HOW does it emit light? (Or HOW is emit light accomplished?) Response: Convert energy. The WHY question: WHY is it necessary to "a lower level function?" Response: "A higher level function. Since the answer to both questions is logical. In addition. Let's illustrate the use of this powerful and indispensable tool by using the questions to determine which of a pair of adjacent functions is the higher level function. correctly. The key to developing a correct and useful FAST diagram is the asking of HOW-WHY questions. the WHY is answered by the Required Secondary Function to the left of the right scope line." When the answers make sense. c a Let's use the light bulb for a specific example. Critical Path Functions. All other critical path functions within the scope of the problem are called secondmy functions.-1) which functions appear on the critical path and 2) the level at which they occur. Ask questions as follows. The WHY question: WHY is it necessary to convert energy ? (Or WHY is convert energy needed. Note: The WHEN question relates to the Causative Function. The functions on the critical path must occur in a particular order-from the highest level to the lowest level or. the pair of adjacent functions is arranged in the correct order. These questions are used to determine ".

Unit 5 .

it is the reason behind why the customer buys the product. you wilfdevelop the important ability to think in terms of exactly stated functions. the basic function answers its HOW question. This function lies beyond the WHY (or right) scope line. as you would expect. and conversely. Secondary Functions and the Causative Function. which " *ris the highest level function of the product. The higher order function answers the WHY question of the basic function. The product does not. hence. Until you develop it. then the chances are good that the region will not be satisfactorily illuminated. the functions were used in their exact two-word form-as they are listed for the light bulb. It is highly recommended that you use the same procedure. The basic function of our light bulb is Emit Light and the higher order function is Illuminate Region. it is not a function within the scope of the problem and. In turn. determined by appropriate HOW-WHY questions. the light bulb manufacturer can do no m o d Therefore Emit Light can definitely be controlled by the manufacturer and is within the scope of the product. your mind will have a tendency to digress from the value analysis approach into time-wasting pitfalls. The level of each of these functions is. It just enables the user to cast light where needed when it is installed in a suitable fixture advantageously located. each and every possible pair of adjacent functions will provide the proper response to a HOW question and its converse WHY question. The Higher Order Function and the Basic Function. Question: HOW (do we) illunzinate region? Response: Emit light. of itself. An example is Convert Energy. It . Assume the basic function for the light bulb has been identified as Emit Light. This is a crucial ability for successful value analysis. perform the higher order function. Although it may not always be pleasing in the grammatical sense. If the user places the light bulb behind an obstruction. in the questioning. . You must also determine the causative function. Secondary functions are all functions on the critical path at a lower level than the basic function. Let's use the light bulb example to illustrate this. The light bulb will indeed Emit Light. is not part of the critical path for the problem.should be clear that Illuminate Region falls outside the scope of the product since &e@ight bulb does not illuminate a region by itself. as determined earlier. When the critical path is complete and correct with each function at its proper level. We can state that in another way which is particularly useful in the initial stages of developing a FAST diagram: Each function on the critical path must get a logical response for a HOW question from the function immediately to its right and for a WHY question from the function immediately to its left.Unit 5 Note that. Like the higher order function. The user wants the light bulb because of what it does-Emit Light-so that it can be used to satisfy a need-Illuminate Region. It occurs next to the basic function. It satisfies a need of the user. The higher order function lies just outside the scope of the problem. Looking for a higher level function would lead to: Question: WHY (is it necessary to) emit light? Response: Illuminate region.

in Figure 5-1) 3. Two additional functions that are not part of the critical path for the problem are utilized. In general. They are subdivided into three broad classes: 1. either individually or in groups. The level of each function is determined by asking HOW-WHY questions. it identifies the external energy source for the light bulb. Supporting Functions. In summary. Design-objective functions are drawn as a group '--l . Caused-by question: Is "a supporting function" caused by "a critical path function?" Example question: Is minimize heat caused by convert energy? Example response: Yes. Mount Bulb. engineering or other technical considerations. We can thus classify Generate Heat as a same-time supporting function related to Convert Energy.Unit 5 29 In the light bulb example. one beyond each scope line. It starts with the highest level critical path function-the basic function-and ends with the lowest level function. the critical path is a path of functions that lies entirely within the scope of the problem. Disperse Light is caused by the methods we use to Conduct Current. Since both Generate Heat and Minimize Heat can be closely related to ConvertEnergy. generate heat happens at the same time. All-the-time functions (also Generally. all same-time and caused-by functions are drawn on the diagram. Design-objective functions critical path. Hence. As another example. one would use actual functioq@side the 7 quotation marks. in a similar location: below the critical path function they relate to and connected to it by a line. Design-objective functions arise because of specifications or external requirements placed on the product by. convert energy makes it necessary to (causes) minimize heat. but at the right. The light bulb has a specific mounting method (a thread to screw into a standard holder) and is expected to emit a certain level of light intensity and inform the user of that level in some way. We can thus classify Minimize Heat as a caused-by supporting function related to Convert Energy. Provide Intensity. Functions within the scope of the problem that are not critical path functions are called supporting functions. Same-time or caused-by supporting functions can usually be identified by questions similar to the following. As before. when convert energy occurs in the light bulb. they are classified by asking appropriate questions. Same-time question: Does "a supporting function" happen at the same time as "a critical path function?" Example question: Does generate heat happen at the same time as convert energy? Example response: Yes. the causative function is Provide Current. and Identify Product are all design-objective functions. Same-time or caused-by functions (below the critical path in Figure 5-1) e critical path at the left in Figure 5-1) 2. they would appear on the FAST diagram just below Convert Energy and would be connected to Convert Energy by a line. Figure 5-2. for example.

the higher order function is often not identified until Step 4. . Make only one card for each function. Finding the critical path will take time. DRAW THE FAST DIAGRAM * Some value specialists elect to connect the functions in this group with lines. design-objective functions. Step 1. Use a large sheet of paper. We suggest you proceed in the following order: same-time and caused-by functions. Then continue working toward lower level secondary functions. A step-by-step procedure provides an organized approach to developing FAST diagrams. SKETCH A SKELETON FAST DIAGRAM. These were described earlier and will be used mainly in Steps 4 and 5 below. it only appears once on the FAST diagram. MA& A FINAL CHECK. Figure 5-1 is a good guide for your skeleton diagram. you will find that some or all of the following may occur: moving back and forth between steps. Step 6. It is not established until each function on it satisfies completely its appropriate HOW-WHY questions. They are not connected to the critical path. they are drawn as a group of related functions above the critical path. Like design-objective functions. Step 3. such as flip chart paper. ESTABLISH THE SUPPORTING FUNCTIONS. Often you will reshuffle functions and rearrange their order. This is done by determining relationships through appropriate questioning. - Developing the FAST Diagram. such functions as Resist Corrosion. Including them makes it easier for you to devote maximum effort to the thought processes in an efficient manner. modifying. ESTABLISH THE CRITICAL PATH FUNCTIONS. LIST THE COMPONENTS AND THEIR FUNCTIONS. They are not connected to the critical path. rearranging functions. It will be a helpful framework for positioning your function cards on the paper. adding. A good size for the cards is about 2" by 3". dropping. WRITE EACH FUNCTION ON A CARD. Check your diagram completely to insure it is the best possible for your project. and Protect User are all-the-timefunctions. and reclassifying functions.* All-the-time functions are those which assure both the dependability of the product &d the satisfaction of the user.30 Unit 5 of related functions located above the critical path and near the HOW scope line as in Figure 5-1.* ' % . Basic thought processes shape the diagram by seeking appropriateresponses to questions relating functions. Satisfy yourself that the list is as accurate as you can make it at this time before proceeding to Step 2. Step 2. The higher-order function an+ the causative function are also normally established in this step. Prevent Short. Step 5. For example. Step 4. This is best done by first selecting the most probable basic function and asking HOW-WHY questions to identify the adjacent secondary function and #gher order function. For the light bulb. Step 7. but near the WHY scope line. The cards make it easy to reposition functions as the diagram is developed. As you proceed. Table 4-1 for the light bulb provides an example. Some of the other steps in the procedure are quite mechanical. Even if a function appears more than once on your list. all-the-time functions.

Higher-order function b.Unit 5 Now that the diagram has been established and checked. Design-objective function c. . a. Use it to help develop confidence in your understanding of FAST diagrams. Write a short. clear. it can be drawn in a form suitable for future use. well organized essay defining what a FAST diagram is and explaining why it is useful. a. Assume that you must explain to your management about FAST diagrams.) 6. 31 Figure 5-2 is the FAST diagram for the light bulb. 4. You may find that you need additional fyctions to complete the FAST diagram. All-the-time function 5. Explain how you decided upon at least one of each of the following functions. Perform Step 6 on it. (At this point in the course we suggest that your explanation encompass only the Technical FAST diagram. Using the function list returned with your written assignment for Unit 4. 2. Causative function 3. WRITTEN ASSIGNMENT 5 See the instructions for preparing your written assignment on page 2 of this Study Guide. Each of the remaining critical path functions d. construct a FAST diagram for the pu~zcltassembly of the Mutual 20 three-hole punch. Explain why you put the scope lines where you did. Study it closely and visualize how the step-by-step process might have been applied. Same-time or caused-by function b. Figure 5-1 is a good guide. Suggest some reasons why this might be so. Explain why you selected the following functions.WHY rational. Basic function xr? c. Many people who are thought to be proficient in value analysis can neither develop good functions nor construct useful FAST diagrams. 1. Use the HOW.

discusses the details of function identification and of generating a FAST diagram. Snodgrass and Kasi Chapters 6 and 7 Chapter 5 (Optional) STUDY NOTES In the assigned chapters you will be led through the function analysis of six different studies: 1. this occurs when we have two parallel elements that must both be present in order to satisfy the WHY of the next lower level function and the HOW of the next higher level function. 3. The improvement of an industry training program for a manufacturer. take particular note that the value analysis process is identical for each of these studies despite t i p differences in the actual problems. This is the main reason that a competent value specialist is able to lead a value study team on a problem about which the specialist is not particularly knowledgable. As you study these chapters. The grain containment cell assembly of a grain moisture tester. 4. '*- READING ASSIGNMENT Function Analysis: The Steppilzg Stones to Good Value. The first case study. 2. A curved panel section used as part of a room divider system in business offices. The design of the manufacturing process for a planetary carrier-a casting req@rhg multiple operations and a great deal of handling before it is a finished combbnent ready for installation in a vehicle transmission. Larry Miles recognized this difficulty 40 years ago and recommended that the serious practitioner needs a couple of years of experience in applying these principles while working with the normal situations that affect value alternatives. 6.5) and the large number of caused-by functions. Take particular note of the unusual characteristic of the split critical path. One of the best ways to supplement this experience is to study case histories of value studies.TECHNICAL FAST CASE HISTORIES Experience has shown us that it is not reasonable for the beginning value analysis student to expect to master function analysis by merely reading the rules and doing one or two examples. The cell assembly study was done in a University of Wisconsin-Madison 40-hour workshop. Some interesting things to note are how the mind-tuning session clarified the problem (Section 6. Some value specialists have suggested that this split path can be avoided in this case by using the function Agitate Surface instead of Brush Suqace and Beat Sulface. We will not be . The development of an emission inspection program for the State of Wisconsin Department of Transportation. This unit is devoted to the analysis of real VA studies and the role that good function analysis played in achieving good results. 5. the roller brush assembly. The roller brush sub-assembly which is part of a canister vacuum cleaner.

10 some of the results that can be gained from this activity.8 and Figure 6. Department of Engineering Professional Development. fixed overhead) term. . Explain clearly why the function Minimize Vibration is considered a caused-by function in the roller brush assembly FAST diagram. Briefly. but clearly. The next-to-last example. Very little is written about effective system studies like the one for the emission inspection program for the Wisconsin Department of Transportation. The value study to improve an industry training program illustrates how all the elements of function analysis can be used on a problem that many people think is beyond the capabilities of VA. r i.) a. The critical thing with this type of study is to first clearly identify all of the activities that occur. 1.1. is a classic in how to conduct a process study of a manufactured component. Emission inspection program d. the planetary carrier processing study. like Figw$ 7. significant effort was expended in identifying the cost elements and functions normally hidden under the overhead (specifically. ~ c t i v a i e s in a system study are analogous to components in a product study. or sequence-of-activitieschart. and then prepare an activity flow diagram. deserves careful study to master the underlying rationale. Planetary carrier 2. there are things that could have been done to improve value even more. 2.1 is an excellent tool for identifying all of the activities. * A videotape summarizing this study is available from the University of Wisconsin-Madison.* Take note of how the process flow chart is used as a basis for identifying the functions. there are some units to be learned: 1. Implementation is management's responsibility. Figure 7. ** WRITTEN ASSIGNMENT 6 See the instructions for preparing your written assignment on page 2 of this Study Guide. The correct marketing-orientedperson could have prevented the study from being manufacturing-oriented and would have assured a more acceptable and implementable solution. (Consider the user. Although the function analysis is sound and the study resulted in some good recommendations. All pertinent parts of the organization should be represented on"the team. Of particular note is that this study resulted in approximately 40% cost reduction and attendant spin-off benefits to various areas of the company. From a monetary standpoint this study was successful. and the following one on the planetary carrier. This example. however it is interesting to see in Section 6. In this study. Roller brush assembly b.Unit 6 33 discussing the details of function-cost allocation until Unit 7 of this course. Curved panel section c. Management commitment is essential in a VA study. Not all studies are ideal as is illustrated in the case of the curved panel section. but as you will see. explain why the Technical FAST diagram is the correct diagram for the following studies.

State briefly why this is so. 5. 4. Briefly discuss why you think the value analysis approach was worthwhile (or not worthwhile) in the industry training program study. How does a flow diagram. 9. Explain clearly why the function for the rivets in the cell assembly is Measure Material and not Join Parts. as used for the emission inspection program. aid the value study? 7. Write a short essay explaining the necessity for the planetary carrier team to go to so much work in gathering such difficult to obtain detailed costs. . 6. 8..Unit 6 3. Discuss what could have been done to improve the curved panel section project. Make a list of the detailed cost items that were gathered in the planetary carrier study. Explain what the cell assembly team could learn from the value index and why ' this is probably accurate.

The emphasis is on using the customer's language or the "voice of the customer. From this effort. desires. From these descriptions. through page 122 STUDY NOTES The starting p i n t for Task FAST is similar to what you have already learned in Units 3 through 6. Another way to identify function is to use a structured bill of materials and a Components/Functions Form 401. (See Figure 6. functions are developed and then assigned to one of the four supporting functions (Section 8. VITAL starts with the customers determining the value of the product or service." Note that only one scope line separates the primary basic and supporting functions from the task of the total product. READING ASSIGNMENT Function Analysis: The Stepping Stones to Good Value. Snodgrass and Kasi Chapter 8. see first the structured bill of materials for the three-hole punch.) To get started on identifying all the functions foi the three-hole punch. customer-oriented value engineering. has accomplished much since its introduction in 1947. Note that the same HOW-WHY questioning technique is used to verify the position of each of the functions. and work began on applying the technology of v a l p analysis to total products.TASK FAST Value analysis. They furnish means of analyzing costs and attitudes that are unique to VITAL. The listing of needs. evolved. understand the significance of starting the diagram with the basic fwctions to determine the task. separating basic from supporting functions. Also. or value engineering. or VITAL. VITAL is an acronym derived from w u e Information.6 is often the way a product concept starts. This could involve team members or the value specialist checking with various parts of the organization to ver-"%. A need for expanding the value activity was recognized in the late 19503. The second step. ify the separation of the functions. Exhibic 7-1. . and requirements described in Section 8. Techniques and &alytical Language. The differences are in the format (Figure 8. Study the types of functions that are assigned to Assure Convenience and how these differ from. those for Satisfy User. wants.1) and in the types of functions. Task FAST is the communication link developed to relate the c o s t d product or service to the customer attitudes that form the value judgment. I'he FAST concept was presented in 1966 by Charles Bytheway and shortly after refined in the form you have just completed-Technical FAST-by Wayne Ruggles. basic. Learn the definitions of each of these function types: task. and supporting functions. It is also a form for providing computer input data.7). One of the major benefits of Task FAST is the use of the four primary supporting functions. for example. is extremely important and involves input from all parts of the organization.3 in the text and Table 4-1 in this Study Guide for examples.

Do a complete Task FAST diagram for the Mutual 20 three-hole punch similar to that in Figure 8. Exhibit 7-2. Use the HOW-WHY rationale. What are the advantages of the Task FAST diagram? .6. NOTE: Questions 1and 4 of this assignment may be combined on one Task FAST diagram.5 in the text. showing all the components and some functions for several of the components. Construct the Task basic function portion of the Task FAST diagram for the Mutual 20 three-hole punch. Each of the basic functions (Consider all of the primary and secondary functions). 6. use "It is small enough to store" rather than "It should be small enough to store. Discuss what happens as we develop the Task FAST diagram further to the right by continuing to ask HOW.) 2. Observe that it is convenient to include operations as well as parts in the components column. For example. Identify the secondary level supporting functions for the Mutual 20 three-hole punch.1. Task function b. 3. Your answer should be submitted in a form like that illustrated in Section 8. (It should be similar to Figure 8. Explain why you selected the following functions.36 Unit 7 Then see its Components/Functions Form." 4. NOTE: You may use the present tense. An exploded view of the hee-hole punch is shown in Exhibit 4-1.- 1. * %. 5.6. a. WRITTEN ASSIGNMENT 7 See the instructions for preparing your written assignment on page 2 of this Study Guide.

MATERIAL CALCULATION I I DATA I I I I 3 HOLE PAPR PUNCH 1 1 1 LSS PNCB AS-BASE UVET PNCB HNDLE U S SLUG CON 3ASE ASSEMBLY ?STET BASE-REGSTR ?AINT 8/RACK 3LACK PAINT 3ASE 14 GA CLD RL STL ?ORM/PIERCE ?UNCH REGISTER 16 GA CLD RL STL ?ORM/PIERCE/EMBS . No.0033 1 I I 250 I I 1 12001 1 I I I I 4 1 I 250 I 1 12001 1 I 3 010 180 1 SPRING "C" RING LOCATING SCREW 3 3 3 . COMPUTER INPUT DATA FILE # PRODUCT STRUCTURED BILL OF MATERIALS MOTU?G 2 0 : 3-HOLE PAPER PUNCH IDENT.I56 D SHLD RIVT ?UNCH ASSEMBLY USEMBLE I I I I 010 I I I 901 1 120 1 I I I I I I1 I I 1 1 I . ~ s c o n s i i d ~ s o n Engineering Professional Development Structured Bill of Materials .Exhibit 7-1 The College of Engineerin C " n i v w i t y 0.0025 .0060 .

.. 1001 .284.3.1416.Exhibit 7-1 Structured Bill of Materials (Continued) Cme Colksge of Engineering Un/vm/ty of WisconsiR-klladison Engineering Professional Development COMPUTER INPUT DATA 6 PRODUCT FILE # MUTUX 2 0 : 3-HOLE PAPER PUNCH A s301 I STRUCTURED BILL OF MATERIALS SHEET f 1 O F F IDENT..6875. No.0352. MATERIAL CALCULATION (INVOLVES) 3/8 ROD CURN/TRRD/KNURL .17 DATA (PART OF) ?I CR BARRL PLT SLUG CONTAINER PUNCH HANDLE 18 GA CRS STRIP F O R M FOLD BLACK PAINT SILK SCREEN SHOULDER RIVET 1 7 / 3 2 " DIAM.

I56 D Shoulder Rivet 3003PP Unit 7 Exhibit 7-2 ___1 Transmit Force FUNCTIONS COMPONENTS Base 300 1SP FUNCTIONS Base Assembly 200101 3 Hole Punch Assmbly 100101 3 Hole Punch Assmbly 100102 Transmit Force Return Punch Penetrate Paper Resist Breakage 3 Hole Punch Assnibly 100103 - - Punch Register 3002SP Instruct User Copyright Q 1989 by Board of Regents of the University of Wisconsin System I FORM 403 .nis CoIfqe of Enginesvh c U n / w s w of ~ ~ c o n s l ~ d f s o n Engimrlng Professlonel Development COMPONENTS Shoulder Rivet Punch Handle 2005SP Slug Container 2004PP I Spring 3006PP Punch 3005SP Punch Holder 3004SP I 1 Punch Assembly 20020 1 .

Study the function cost comparison. Snodgrass and Kasi Sections 12. It will be returned with a Task FAST diagram needed for Written Assignment 8. Costs are essential in any meaningful value engineering work. To provide an example for this unit. using multi-operational tooling. and overhead multipliers for the hypothetical factory are given in Exhibit 8-1 in this Study Guide. a hypothetical high-production factory.13) STUDY NOTES The importance of having proper costs has been emphasized in Unit 3. The latch from the lighted push button switch demonstrates the detail used in low-cost but highvolume parts. to see how competitive product&osts can be evaluated by using function costs.) the value index (VI) for the roller brush sub-assembly. READING ASSIGNMENT Function Analysis: The Stepping Stones to Good Value. labor rates. The overhead multiplier represents the cost of indirect charges such as for spoilage.13. The approach for allocating function costs for the plastic top of a canister vacuum cleaner can be used on many molded and cast parts. equipment * If you are interested in the complete software program. Assigning function costs to FAST diagrams furnishes excellent functioncost visibility.1 through 12. The coin box assembly expands on the logic for separating a basic function cost from a supporting function cost and also demonstrates another form for allocating costs. . is used as a specific example. To provide a basis for costing. The use of such comparisons will be an important part of Unit 10. maintenance.12. This unit describes a cost system designed for value engineering. contact the Center for Value Engineering Research. Department of Engineering Professional Development. C?il#ating costs manually becomes not only tedious but. . University of Wisconsin-Madison. Identifying function costs provides cost visibility and is second in importance to identifying the functions themselves. Chapter 12 uses several examples to describe the various techniques for converting the material and operation costs to the function costs for the functions they perform.11.FUNCTION COSTS NOTE: Do not proceed with the written assignment for Unit 8 until you receive your corrected Written Assignment 7. the computer printout designated Figure 12. You are shown how costs are allocated to functions. in more complex products.) demonstrates the data files and process for using a software program*. The VITAL automated costing flow chart (See Figure 12. is assumed. Assumed departments. The handle of the three-hole paper punch . very difficult and usually inaccurate.4 (including Figure 12. the three-hole punch costs have been expanded to include all of the additional parts from the punch assembly for which you developed a Technical FAST diagram in Units 4 and 5. down time. pote (See Figure 12.

or operations.40 3.OO 2. etc. level-two parts or assemblies go into the level-one assembly which is always the top assembly. The punch handle (2005SP) is made of 18-gauge rolled steel (assigned . external Heat treat Painting Plating Punch press Rivet Screw machine. etc. See Exhibit 7-1 in this Study Guide. The two-digit suffixes provide the standard means for describing the types of parts. To organize the information required by the computer. We do not need such information for our example.00 2. Data for a Hypothetical Factory DEPARTMENT NUMBER 010 110 160 220 230 250 260 320 DEPARTMENT NAME Assembly Grind. and so forth. materials. It is based on the following scheme.3.60 3.) Exhibit 8.28 3. The next five headings are self evident for purposes of our example. The first three columns provide space for entering the drawing number. as appropriate. To clarify how this data is obtained.77 4. assemblies. a four-digit part number is assigned to each part. auto LABOR OVERHEAD MULTIPLIER 1. The suffix meanings are given below: SUFFDL SS SP PP MI. The level number recognizes that all assemblies must have parts or assemblies going into them. 0 1 . a computer input f % mwas prepared. The calculations required to determine the costs for the three-hole punch were carried out with a software program.80 2.33 3. Level-three parts or assemblies go into level-two assemblies. The number is assigned in three parts: a one-digit level number. Note that the purchase cost information provides data needed for costing purchased parts. The material calculation column provides space for data needed to cost material.00 4 . The next two headings are associated with data needed for cost calculations.Unit 8 41 amortization. It is presented as Exhibit 7-1 in the previous unit and is called the structured bill of materials. and a two-digit suffix. REPRESENTING Assembly Fabricated Parts Purchased Parts Materials Operations The identification number column provides a space for previously assigned numbers currently in use for individual parts. The various headings on the form are explained below.50 2. 0 2 .70 3.77 4.OO ($/W 3. refer to the entry for 2005M1 in Exhibit 7-1 in this Study Guide. The description section provides space for any desired descriptive terms or abbreviations.20 3. M2. a three-digit number called a VSI number.1. (See Section 12.24 2.70 6. Reasonable information is filled in. By writing the three additional digits of the VSI number immediately following the level number.

four areas of material have been identified and related to function. It is convenient to start with the material cost of the punch handle. Other information is added as described below. BASIC FUNCTIONS Receive force (021) Transmit force (022) SUPPORTING FUNCTIONS Reduce effort (052) Resigt breakage (044) Add color (062) Identify product (061) These functions and their assigned numbers (in parentheses) appear in the material you received with your corrected Written Assignment 7. use a Function Cost Detail/Surnmary Form 801 from the forms packet and manually work through the various steps of the function cost allocation technique. 2005M1. in ascending order of assemblies. This . Refer to Exhibit 8-3 in this Study Guide. The meaning of the five numbers which appear in the materials calculation space. one also indicates the order of processing and assembly of the several parts and subassemblies. along with the appropriate computer program and the additional files it requires (see "'C-Figure 12. the computer will print the costed bill of materials labeled Exhibit 8-2 in this unit.9375 3. The cost information is printed in ascending order of the assigned numbers and also. In Exhibit 8-4 of this unit. An excellent way to assign function cost allocations for the raw material in a part is to make a sketch on which to indicate what section of the part does what. and the riveting operation (100102) will be used to illustrate this important technique. It includes the information from Exhibit 8-2 that is pertinent to our example-data for the punch handle. As a check on your understanding of it." The "involves" space can be used to indicate which parts are being assembled. assume that the list of functions identified for these two parts in the assembly operation include the following: " . As Chapter 12 indicates. separated by commas. and their riveting operation. The punch handle (2005SP).284 0. To proceed. you might wish to calculate the material cost for 2005M1 and compare it with the computer value.12. Note that by making the original assignment of these numbers in a reasonable manner. cost information provides the starting point for allocating a part cost to one or more functions. When the information assembled in Exhibit 7-1 is entered into the computer. The last heading in Exhibit 7-1 is divided into "involves" and "part of. then. The "part of" space indicates into which assembly the given part or assembly goes. the shoulder rivet (2006PP).050 11. the shoulder rivet.12). Other useful or helpful information could also be inserted here.25 0. is as follows: THICKNESS LENGTH WIDTH DENSITY COST PER LB (inches) (inches) (inches) (lblcubic inch) $/lb 0. a. the cost for the material used for one punch handle.42 Unit 8 suffix: MI). Since you do not have the software described by Figure 12. you will note. The exhibit is self-explanatory.14 The computer will calculate the product of these numbers (see below) which is.

000 0.0383 -02 RIVET PNCH HNDLE 1 0.0 2 PIERCE 2 HOLES -03 PAINT 8/RACK -04 S I L K SCREEN (Contirzued on next page.Unit 8 Exhibit 8-2 Costed Bill of Materials COSTED B I L L OF MATERIALS PROJECT: 2 2 3 PRODUCT 01.0000 0.2961 0.000 1. MUTUAL 2 0 - 3 HOLE PAPER PUNCH 1 0 0 1 .1020 0.0137 0.S S 3 HOLE PAPR PNCH -01 ASS PNCH AS-BASE 1.0364 0.0 2 PAINT 8/RACK 2002-SS PUNCH ASSEMBLY -01 ASSEMBLE 2003-SP LOCATING SCREW -M1 3 / 8 ROD -01 TURN T H m KNURL -02 2004-PP 2005-SP N1 CR BARRL PLT SLUG CONTAINER PUNCH HANDLE -M1 1 8 GA CRS S T R I P -M2 BLACK PAINT -01 FORM FOLD .6247 0.0000 -03 ASS SLUG CON 2001-SS BASE ASSEMBLY -M1 BLACK PAINT -01 RIVT BASE-REGSTR .0656 0.) .000 1.2536 0.0246 1.4178 0.

000 1.0100 0.0380 -01 FORM/PIERCE 3002-SP -M1 PUNCH REGISTER 1 6 GA CLD RL STL 3003-PP .0306 0.0000 0.1685 3004-SP PUNCH HOLDER -M1 1 3 GA CRS STRIP -01 PlERCE FORM -02 N 1 CRBARRL PLT 3005-SP PUNCH -M1 .0062 0.1247 0. I 5 6 D SHLD RIVT 4.0000 0.0075 J -02 PLATE 3 0 0 6-PP 3007-SP SPRING "C" RING 0.0180 0.000 3.000 3.0418 0.1021 0.0000 0.0075 .1021 0.0284 0.0306 0.0000 0.000 1.0180 0.0068 0.0380 0.000 3.0000 0.0000 0.0475 0.0068 0.0821 0.0276 0.000 0.0000 0.0000 0.0203 0." SHOULDER RIVET BASE 1 4 GA CLD RL STL 2. MUTUAL 2 0 - 3 HOLE PAPER PUNCH 2006-PP 3001-SP -M1 *%.0000 0.0027 0.0027 0.0509 0.0357 0.0095 0.0100 0.0000 0.000 3.0000 0.000 1.1021 0.0276 0.0180 0.0357 0.0000 0.0000 0.0000 0.OOOO 0.0132 0. 1116 0. 0051 0.0132 0.0000 0.000 0.000 1.0180 0.000 1.25 0 ROD -02 HEAT TREAT -03 GRIND 3.0081 0.0000 0.0113 0.0132 0.000 3.Unit 8 Exhibit 8-2 Costed Bill of Materials (Continued) COSTED BILL OF MATERIALS PROJECT: 2 2 3 PRODUCT 01.0368 0.0000 0 .000 0.000 3.0376 0.0092 0.000 3.000 3.0027 0.0180 0.0068 0.0000 0.0000 0.0051 0.000 3.0380 0.

37d3.25.25.0364 0.0246 0.000 2...000 1. l f 1) 3 HOLE PAPR PNCH ASS PNCH AS-BASE RIVET PNCH HNDLE ( 0 2 2 1 1.000 1...25 inch width is assigned to the function Transmit Force... PROJECT: 2 2 3 PRODUCT 01..0000 0.000 0.1954 (022.... ...000 1. 0. and it is assumed that under normal usage only 0.0000 0. In Exhibit 8-4. The calculation for the first pair (1.. 1) SHOULDER RIVET ( 0 2 2 ..... .000 1.....B) PIERCE 2 HOLES ( 0 2 2 f 1 .3. 05) (021..000 1. 1 .0383 0.25 inch of the 3."The comma within each pair indicates division.. 1..1) ASS SLUG CON 1.25) gives the first ratio..0375.000 1.....25...0097 0..3846.Unit 8 Exhibit 8-3 Costed Bill of Materials (Partial) with Function Cost Allocation Data COSTED BILL O F MATERIALS 45 ..0375 inch of the 0.. The information for Transmit Force.3.0656 0.25 inches ..0771 0... l ) SILK SCREEN ( 0 6 1 ...000 1.05).25.......0000 0.0137 0...l. function number 022..0000 0. the four areas differ only in width.. .25. its value is 0...0298 0.05 inch thickness is adequate.3.. MUTUAL 2 0 - 3 HOLE PAPER PUNCH PUNCH HANDLE 1 8 GA CRS STRIP BLACK PAINT (062..1.0100 0.4178 0. l. (The additional thickness over ... 1. Use the Task FAST diagram returned with your Written Assignment 7.0000 0. is inserted in Exhibit 8-3 under 2005M1 in the following form: (022. Following the function number are two pairs of numbers separated by commas..000 1...0137 0..) Also in Exhibit 8-4....0000 0...0868 0. The numbers in the pair indicate that 1. All have the same length and thickness.111) FORM FOLD (O44.0788 0.000 1. 4) (022.. 1) PAINT 8/RACK (062-.0375 inches is assigned to Resist Breakage..1020 0.0000 0.0383 allows one to determine ratio multipliers for finding the percent of total material cost that is to be assigned to a particular function.000 1.0246 0.. .25..0375.0375.....

5" of width Overall thickness .05" Resist Breakage: Unassigned width (mostly flanges) plus additional thickness over 0.25" Transmit Force: 1.375" of width Reduce Effort: 0. 2005SP t RAW MATERIAL: Overall width .3.0375" Add Color: Paint .25" of width Receive Force: 0.0. Part No.Exhibit 8-4 Assignment of Function to Material for Punch Handle.

Therefore the function 044. the Function Cost Detail/Summary Form 801 was designed fopyour use in this course. as shown in Exhibit 8-5. Their product is also one so the total amount is assigned to this function. The 100. 100% of the cost of 100102 is assigned to Transmit Force. First.25 inch total width is assigned to the material for Transmit Force. The shoulder rivet (2006PP) is also assigned in total to Transmit Force. Since you do not have the software needed to print out function cost information. The allocations for the two parts (2005M1 and 2006PP) and the three assembly operations (100102.75 and is assigned to 022.0222 is 28. has an allocation entered as (1.25. Copies of this form and of Exhibit 8-2 and Exhibit 8-7 are included in the forms packet. the ratio multiplier is then 0.05) yields a second ratio (0. The same logic is used for assigning cost to Identify Product for 200504.8% of the cost of material 2005M1 is assigned to Transmit Force -0. Each of the subsequent operations is assigned to its specific function in total. Similiarly. and its sum would be entered for Transmit Force. The $ 0.0771 is the total cost of the steel material.0222 must be assigned to other functions by completing additional entries for 2005M1 in a similar manner.2885 x $ 0.0771 = $ 0.0771. you can determine the last allocation by entering a "B" for "balance" and subtracting the total of the previously calculated allocations from %total steel cost. Reduce Breakage. Therefore the entry in Exhibit 8-3 is (062. This speeds up the tabulation.0375. such as for 2005M1.75).8% of 0. .4). A completed Exhibit 8-5 would be similar to the computer printout presented as Figure 12. The comma separating the two pairs indicates multiplication (of the two ratios) which yields a value of 0. 200501 and 200502) are now posted to the function Transmit Force (022) on a Function Cost Detail/Surnmary Form 801. If there are several allocations. The % OF TOTAL column is the percent of the total cost of the three-hole punch assigned to Transmit Force. . Entries for Transmit Force cannot be made until all of its costs are identified and entered on the form. 2005M1 from Exhibit 8-2. The remaining 71. For 200501. The actual cost of the steel material for the punch handle which is assigned to Transmit Force ($0.2% is assigned to other functions and would appear on their Function Cost Detail/Summary Forms. the sum of each $ column should equal the corresponding dollar value in Exhibit 8-2 for the steel material.0222) is obtained by multiplying the product of the two ratios and the cost of the steel material: 0.1. You should verify one or more of them to reinforce your understanding. black paint (2005M2).Unit 8 47 of the 3. is assigned to Add Color (function 062) in its entirety. Transmit Force. Verify all of the entries.0 in the % OF TOTAL column for 100102 says that-. The numbers in the second pair indicate that 0. The amount of !his total cost over $ 0. The second material.05 inch overall thickness is assigned to the material for Transmit Force. as is the operation (100102) which riveted the punch handle to the base. form fold.phe sum of the ratio multipliers for 2005Ml should equal one. You should also make two quick checks on the calculated entries.0375 inches of the 0. The remaining "balance" is 0. and the labor plus overhead totals one quarter of the cost of Reduce Breakage. it was judged that the flange reduced the potential for breaking by approximately 25%.9 in the text. Second.1) since each ratio is one. particularly with more complex calculati&s. They are for use with the written assignment. It cannot be filled in until the total cost of the three-hole punch is determined. In a similar manner. the second pair (.0222. the 28.8 in the % OF TOTAL column for 2005M1 says that 28. Each cost column would then be summed.2885.

Copyright 6 1989 by Board of Regents of the University o f Wisconsin System FORM 801 .48 l7m Colkgs of Engheri Unit 8 Exhibit 8-5 A Function Cost Report Example C u n / w s w of WIsconsI~8dI8on Englwring ProfessionalDevelopment FUNCTION COST DETAIUSUMMARY ASSEMBLY No.

Exhibit 8-6 is a non-computerized version of Exhibit 8-2. (Written Assignment 8 follows Exhibit 8-6.) .Unit 8 49 Another form for allocating cost to function is shown in Exhibit 8-6. It contains no additional information and is provided only as an alternative example for organizing cost/function information for small projects.

:opyrightO 1989 by Board of Regents of the University of Wisconsin System . I I PART NAME OR OPERATIOT I lOOlSS 01 02 3 HOLE PAPR PNCH ASS PNCH AS-BASE RIVET PNCH HNDLE ASS SLUG CONTAINER BASE ASSEMBLY BLACK PAINT RIVT BASE-REGSTR PAINT ~ / R A C K 1 I 1 10. 223 f PRODUCT 3-HOLE 'PAPER PUNCH is Part of Assembly No.0497 PUNCH ASSEMBLY ASSEMBLE LOCATING SCREW 3 / 8 ROD TURN/THRD/KNURL 3 3 3 3 3 3 1 1 1 --0.0070 1 0.7 hCoIkge of Ehghswl CUnfversffy of WiIseo&dhn Engineering Professional Development Exhibit 8-6 Costed Bill of Materials COSTED BILL OF MATERIALS This Assembly No.0110 o1 02 2004PP 2005SP M1 N I CR BARRL PLT SLUG CONTAINER PUNCH HANDLE 1 8 GA CRS S T R I P BLACK PAINT FORM FOLD PIERCE 2 HOLES ----0.0189 FORM 80.0097 M2 01 1 1 1 02 ----- 0.0110 0. PROJECT No.1000 0.1603 1 1 1 M1 01 02 2002SS 01 2003SP M1 " ----0.0135 0. MODEL 2 0 1 00 1 SS TOP ASSEMBLY FUNCTION AUOCATION(S) PART No.0868 0.0771 0.4178 1 1 1 ----- 03 2001SS --0.0054 0.

1 1 MATERIAL $ LABOR $ 3VERHEAD $ 200503 04 2006PP 3001SP M1 PAINT 8/RACK S I L K SCREEN SHOULDER RIVET BASE 1 4 GA CLD RL STL FORM/P IERCE PUNCH REGISTER 1 6 GA CLD RL STL FORM/P IERCE /EMB s --- --0.0062 0.0100 0. 2 5 0 ROD 3 3 o1 02 TURN/GROOVE/MILL HEAT TREAT GRIND 3 03 3 3 ------- . I 5 6 D SHLD RIVT PUNCH HOLDER 13 GA CRS STRIP -- 02 N I CR BARRL PLT 3 3 - --0.1021 0.0062 3005SP M1 PUNCH .1021 2 1 1 1 01 3002SP M1 --- o1 3003PP 3004SP M1 . PART No. O0 PART NAME OR OPERATION ASSEMBLY TOTAL $ FUNCTION ALLOCATION(S) QTY.Exhibit 8-6 Costed Bill of Materials (Continued) T h Collsgo of ~ I m e f C U n l m of W k m s d d k F o n Engineering Professional Developmml COSTED BILL OF MATERIALS This Assembly No. PROJECT No. 22 PAPER PUNCH MODEL 2 0 PRODUCT 3-HOLE is Part of Assembly No.

SLOO'O .

9 in the text. Explain the Receive Force function allocation.10. the copy of Exhibit 8-7. 5.9 in the text) and a complete summary of the function costs for the punch similar lo that shown in Figure 12. 4. Explain your calculations for determining the ratio multiplier for the ResistBreakage fuction of the punch handle material (2005M1). 200503. Clearly explain why we do not allocate any costs of the punch rod (3005M1) to this function. A sketch for each part of the base assembly indicating the function assignment-similar to Exhibit 8-4 in this Study Guide. Clearly explain why operations 200502.) c. but on Function Cost Detail/SurnrnaryForms. ? *-" % . A complete summary of the function costs for the base a s s e m q similar to that shown in Figure 12. Calculate the cost allocation for [lie remaining functions of the three-hole punch. NOTE: See Exhibit 8-7. Completed Function Cost Detail/Summary Form 801 worksheets similar to Exhibit 8-5. Provide completed Function Cost DetaillSummary Form 801 worksheets similar to Exhibit 8-5 (see also Figure 12. Use the copy of Exhibit 8-2. 1. but on Function Cost Detail/Summary Forms. (See also Figure 12. and copies of the Function Cost Detail/Summary Form in the forms packet and send them in with this assignment. Post the function allocations and pertinent data on the copy of Exhibit 8-2. Use t copy of Exhibit 8-7 in the forms packet and send it in with this assignmen b. Do a complete function cost allocation for the Base Assembly (2001SS). NOTE: Use the functions and function numbers on the Task FAST diagram returned to you with your graded Written Assignment 7. 2. Provide the following: a.10. and 200504 are allocated to the functions indicated in Exhibit 8-3 in this Study Guide and not to some other function.Unit 8 53 WRITTEN ASSIGNMENT 8 See the instructions for preparing your written assignment on page 2 of this Study Guide. Do this as if the other ratio multipliers for this part had not been done yet and you chose to calculate the ratio multiplier for Resist Breakage first. 3.

Unit 8 .

Review them carefully. Notice that a user log. % . trouble-freedays. and faults per day. indicates how many customers/users in the study found one or more faults and how many total faults occurred for each particular function. Only the faults and likes are allocated to function. prints out four kinds of information: faults. One could also summarize customer/user likes from usage logs in a computer -'"* printout. Sections 14. Note further that the number of comments from the five test stations is 15. Which ones might be present infyour organization? Start with the knowledge that well-executed market research is always justified by the benefits accrued. This unit returns to Chapter 13 and describes how customer attitudes or features and characteristics in the a yriori approach are allocated to functions. Three different testing procedures are described: a priori. Snodgrass and Kasi Chapter 13 %t Chapter 14. Review these techniques carefully. Which ones could be a model for obtaining customer attitudes for your product? Remember that the targeted "customers/users" must play a major decision-making role in the selection of your product.12. A means of measuring customer acceptance is essential in order to know how to determine good value. and interviews. usage logs. The trouble-free days and faults-per-day reliability are indices that can be used for comparing the performance of one make versus another make. Value nzismatclzes show critical relationships that affect custome acce tance and product profitability.1-14. The function fault summary for a usage log. r READING ASSIGNMENT Function Analysis: The Stepping Stones to Good Value.18 \ i STUDY NOTES Function Attitudes. as in Figure 13. is specific information on which to base decisions. Review Section 13.15. Figure 13. note that five test stations out of 25 stations (20% of the stations) indicated faults for this basic function.14.12-14. again. This. Figure 13. This unit deals with two techniques that are particularly effective when using customer-oriented value engineering. Unit 3 emphasized the importance of customer attitudes and the means for procuring relevant data. Function attitudes furnish a communication link between cost and customer attitudes.FUNCTION ATTITUDES AND VALUE MISMATCH Value engineering is a system in which techniques add to its problem-identifying and problem-solving powers.14. Under Wring Clothes. It is also used to compare one make with another or one design with another. The usage information helps in determining reasons for the faults or likes. Function-fault or function-like details contain the summary information but add additional important information. The obstacles to market research are major. likes.7 and 14.7 and try to develop five to six questions that could be a significant measure of acceptance for your product. Note that the comments from these five test stations are shown in Figure 13.

notice that type one mismatches are present. the spin speed (used to Remove Water from clothes) was reduced.56 Unit 9 Value Mismatch. Creating-by-function will demonstrate an approach to solving the problems. Function attitudes are precise indicators of a customer's degree of acceptance. No one was aware of the problems displayed in Figure 14. Each value mismatch helps to categorize a problem area. and function costs present cost and marketing data in a significantly different form. significant differences are apparent. It is a classic example of much effort and cost being invested with little increase in performance. If we are interested in comparing the dependability of Makes A and B electric motors on pages 228-229.4. Make A's design to Accommodate Unbalance and Minimize Noiselvibration had been marginal from the start. From this observation the term "value mismatch" evolved. Unit 10 will show you the power of functional analysis to identify the problem functions.5. In the case of the lighted push button switch. A great deal of effort doesn't always result in an increase of acceptance or value. we can analyze all of the "07" functions as one group (treat function 07 and all of its branch functions as 07 functions. Assure Delxwdability. Wring Clothes. Setting ratings. 5.7 and develop five to six questions that would be a significant measure of acceptance for the three-hole punch. function attitudes.12 and illustrative examples occur in "*-following sections. The result was to add faults to a basic function. The public school system exan~ple in Chapter 13 is reviewed in Section 14. 6. which further lowered the customer's product acceptance. Review Section 13. Why is the value mismatch technique LPortant? 3. WRITTEN ASSIGNMENT 9 i See the &tructions for preparing your written assignment on page 2 of this Study Guide. To improve these two functions. Why are function attitudes important? 2. one make to another.7.2 discuss value and its variables.) Develop the table and determine the scores of both makes for the 07 function. And when function attitudes and function costs are compared. 1. The automatic clothes washer study demonstrates again that functions with poor performance reduce the customer's accept'ance.14. either verbal or numerical. Each can have an adverse affect on the two sides of the value relationship-customer expectations and lowest manufacturing cost. Wh&nproduct acceptance measures are included. Now study the four types of function mismatches. Sections 14. Value mismatch. a group of categories can be identified. Discuss the conclusions that can be drawn from the results obtained in Question 4. .7 prior to the customer-oriented value engineering study. 4. What types of value mismatch would you call the functions mentioned in this section? The Pareto principle is stated in Section 14. Compare the advantages and disadvantages of the two types of customer attitude techuiques. It also demonstrates the challenges designers face when various objectives work against one another. is an excellent means to show the effect of the variable against value. Note the nine combiriations that can occur. Which variables are considered in your product or service? Try setting up a rating system to demonstrate the various effects.

06. Discuss the factors mentioned in Section 14. 8. Do a Pareto analysis on Make B of the lighted push button switch. or 07 when there are lower levels to these functions.02.O5.03. Try to select one that the instructor might have some knowledge of such as a PC. Discuss value mismatch in terms of the three-hole punch. an innovative automobile. What can you conclude from this analysis? NOTE: Do not use the higher level functions 01.04. . or other consumer product with wide appeal.4 of the text for some new consumer product. 9.Unit 9 57 7.

%"* READING ASSIGNMENT Excerpts from: "Techniquesof Value Analysis and Engineering. It is the activity that identifies the "problems" or "opportunities. Section 32.17 Also. about one tenth of the actual cost of $520 for the special alloy tank. the function attitudes. the proper evaluation of a function and its existiny costs requires an orderly approach to determine what is possible. and for Task FAST. The function of the gas tank might be stated as Store Gasoline. The recognition of special factors or functions for the Naval gasoline tank requires an estimate of added cost. The fourth part is function analysis.00. The next obvious step is "creativity" or "create by function. The established value of the function Store Gasoline becomes $50. Often functions are interacting and interdependent. The case study of the gas tanks for Navy landing craft in the Miles Excerpts. It is of considerable importance and has been used in the title of the textFunction Analysis: The Stepping Stones to Good Value.00. ability to estimate and approximate is very important at this particular stage. The major contribution of function is to allow a comparison with other products or services which perform that particular function. a clear demonstration of the effectiveness of the value analysis approach. Miles calls this "the measurement.7 and 14. review Unit 9 of this Study Guide. STUDY NOTES The function analysis step of the information phase utilizes the functions you have identified and their function costs in order to evaluate the opportunities for development planning." Such function costs for a total product become the value standard. is to assign a value of lowest cost that would fully meet the known requirements of the function." Value mismatch techniques refine the procedures. illustrates this. the last phase of a team project. The function leads us first to 50-gallon standard drums. The procedure for listing these functions is outlined. there must be a better way!" In most cases. then to a 250-gallon oil tank made for domestic use.12 through 14.1 through 14.. and an example is provided in Section 15." the third phase of the job plan. The ultimate objectibfi the evaluation phase. . The final design cost is $80. D. Sections 14." L.FUNCTION ANALYSIS AND CREATIVITY You have studied three of the four parts of the information phase: FAST diagramming. Particularly + . Miles lists the five steps involved.5. This fourth step is also called "evaluate by function" by Lawrence Miles. Snodgrass and Kasi Chapter 15 Review Chapter 14. Often a person will react to a function cost by saying. Miles Chapter 3 Function Analysis: TIte Stepping Stones to Good Value. "It isn't worth it. function cost.

h e s .098 lb/cubic inch = .0441 $/cubic inch. For example. Another effective means of evaluation involves using various relationships. the cost ratio of aluminum to steel on a volume basis is closer to 1. this order is inherent in the basic. Returning to the three-hole punch project. property-material relationships. the next step is to think of other ways to perform these functions ushg creativity. the following calculation could be made.Applied Imagination: Principles and Procedures of Creative Problent-solving by Alex Osborn. Section 14. and material-cost relationships. F ' . Use the Pareta. Then analyze the function cost details to determine the major parts and operations that make up the cost. What is meant by "evaluating a function?" List the progressive steps in evaluating a function. you need $/cubic inch.0283 $/cubic inch. think in terms of another dimension to function analysis-creativity. the price of low carbon steel sheet might be determined at 10 centsbb while standard aluminum alloy sheet might &st 45 cents/lb.283 lb/cubic inch while that of alurnirlum is only 0. Several examples are included. Three are suggested: function-property relationships.283 lb/cubic inch = . review the Function Cost Detail/Summary forms to determine the high-cost functions. The density of steel is 0. for aluminum This readily indicates that although the cost per pound for aluminum is q t i p e s that of steel. The proposed tunnel station for the CIA rapid transit extension to O'Hare airport in Chicago is an interesting example of creative thinking. While reviewing.10 $/lb x 0.Unit 10 59 note that the functions were 1) identified and then 2) arranged in an order suitable for evaluation. is recommended.12. The ability to apply the concepts to your own products is an excellent creativity exercise. Note the six steps that should precede the creative phase. 'Why not?' " .098 Ib/cubic inch. Where do you fit? Often the challenge is to create on the right function. 'Why?' I dream things that never were and say. To make a comparison based only on cost-per-pound would be inaccurate. Study the quotation at the begiming of Chapter 15. If you wish to compare equivalent volume on a cost basis. How are interacting functions evaluated? Explain how the following quote applies to us who practice VA/VE: "Some men see things as they are and say. WRITTEN ASSIGNMENT 10 See the instructions for preparing your written assignment on page 2 of this Study Guide.and supportingfunction format of Task FAST and in the Technical FAST diagramming format. All this data is available in published form but often needs some conversion.45 $/lb x 0. The examples are primarily from design and construction because of co-author Muthiah Kasi's background. Once the functions with greatest opportunity [or improving product acceptance and/or reducing costs are identified. for steel . For our purposes. For those who would like a more detailed discussion of creativity. as the two materials have dHerent densities. Go back and review value mismatch in Chapter 14 of Function Analysis: The Stepping Stones to Good Value and the material in Unit 9 of this Study Guide. To obtain it. analysis of maldistribution described in Chapter 14.

Select five of the functions identified in Question 6 and conduct a creativity activity. the ideas can be major or minor. Do a Pareto analysis on the three-hole punch using the Function Cost DetaiySum. 7. . obscure or sensible. (Get some friends to work with you if you wish. What are the specific activities that should precede the creativity step? 6 .) Use the copies of the Idea List form in the forms packet and try to get as many ideas as possible. m a yforms previously developed.Unit 1 0 5. . NOTE: Retain a copy of your ideas for your use for Written Assignment 11. Identify those functions that account for 80% of the total punch cost.

This important relationship isk(eultirnnte objective that assures good value to the customer and the producer and is called the value standard. Study the function fault comparison of the automatic clothes washers displayed in Figure 13. identify functions. for example. These activities are analysis and development. that must be performed to obtain the optimum recommendation. You're now ready to determine how to obtain the lowest cost product or service that will receive high customer acceptance. and carry out adunctional analysis to determine the function mismatches. or value engineering team.5. . another valuable technique. Unit 10 discussed the process of creating-by-function. your objectives have been to collect information.1 Review Chapter 13. Look for other function comparisons that should concern Make A's value engineering team. The basic function faults for Wring Clothes clearly indicate that Make A's design approach compares unfavorably with Makes B and C.7 furnishes function attitude information for the lighted push-button switch. Snodgrass and Kasi Chapter 16. What they didn't know was that the function costs (costs for individual functions) were not the lowest in all cases. Steps one and two are the ultimate use of functions.EVALUATION NOTE: Do not proceed with the written assignment for Unit 11 until you receive the corrected written assignment for Unit 10. Compare function costs.13. The product acceptance index indicates that Make A's acceptance is low. Note that the Make A team members already knew that their product had the lowest cost. Section 16. Look for other cost differences. Figure 12. and assume that your company produces Make A. Up to this unit. It indicates actions must be taken that were previously not identified. 2. 3. that Make C had the lowest cost for the primary supporting function Assure Convenience. it is often a temptation to go from an open no-judgment experience.13. allocate the cost and attitudes information to the functions. These particular functions were then used in the creative phase to determine other ways to perform the particular functions. Analysis has three important steps. Sections 13. Compare function attitudes. Observe. Section 13. READING ASSIGNMENT Function Analysis: The Stepping Stones to Good Value.11 STUDY NOTES There are two major activities for the value specialist. Evaluate creative ideas. Carefully review the function*' cost comparison for the lighted push button switch. put them in a function logic diagram called FAST. 1. However.17.

continue with the remaining sheets for the same criterion. Select a function and address the first idea with respect to the first criterion (State of the Art). The ideas that are not crossed out are transferred to the Feasibility Ranking form. Continue the process until all the Idea List forms have been culled for the function. Following are the four screens used in the VITAL process: 1. it should still be legible beneath the cross-out. Step three for analysis uses the forms included with this unit. The feasibility ranking evaluates all the surviving ideas with regard to criteria that affect all products. high uncertainty. 4. low numbers are unfavorable. On a scale of 1 to 10. "*. 4 5 . 1. 'numbers are favorable. This leaves the most prohising ideas to consider for each selected function from various points of view and against various criteria. etc. Cross out any unusable ideas. Example: Number 10 means "off the shelf" and available right now. 8. 4. Do not obliterate the idea. An unusable idea is defined as one that no team member thinks could possibly be made to work. while number 1 means "brand new technology"-usually implying a long development time. There is room on the form to add a sixth criterion if the team desires. 3. 2. assign a number reflecting how well the idea satisfies the c&e$on. 9. to a quick selection of ideas with little discussion or analysis. Because of the process used in brainstorming. 1. 3. (This is not the screen for interjecting managers' opinions). Cull the idea list 2. 7. Idea comparison 4. The first screen enables the team to cull these ideas in order to concentrate its efforts on the more promising ones. Be certain that you proceed down the columns. as progressive screens to screen out the less feasible ideas.62 Unit 11 as you do in creativity. Transfer the ideas that are not crossed out from the Idea List forms to the Feasibility Ranking forms under the same function name. repeat the process for the remaining criteria on the Feasibility Ranking sheets. Total the numbers in the row for each idea and enter at the right in the "Total Ranking" column. Start with the Idea List form (Figure 11-1)for one of the functions. and/or high costs. Select the 5 to 8 highest ranking ideas for each function and transfer these to the Idea Comparison forms. Analysis matrix Cull Idea List. services. Proceed down the idea column for h s criterion-do not proceed horizontally across the line. many of the generated ideas are clearly unusable. Put the function name at the top of the Feasibility Ranking form (Figure 11-2) for each function created upon. and shown in Chapter 16. processes. Feasibility ranking 3. Feasibility Ranking. When the first sheet is completed. ~ i ~ h . 6. 2. When all of the sheets have been completed for this criterion.

Proceed down the idea column determining the "advantage" rating for each idea. Here. Do not group the ideas by function hereafter. 4. then list the combined idea as one complete idea. NOTE: Some ideas will still be listed individually. Occasionally +l 's are transferred.Unit 11 63 Idea Comparison. where 10 is very important and 1 is relatively unimportant. 1. 5. Notice that the first idea listing. and list these criteria in the columns across the top of the Analysis Matrix form. Address the first idea. Transfer the highest ranking ideas from the Feasibility Ranking forms to the Idea Comparison form (Figure 11-3). When the advantages for all of theflea comparison ideas have been determined. NOTE: PRESENT WAY is the first idea on the list. Analysis Matrix. For disadvantages. ( + 4) + ( -2) = +2 . the team should assign a negative number from . Identify the criteria that your management normally uses to judge the suitability of a proposal. 3. For example. Determine the relative importance of each of these criteria and insert this weighting in the "weight of importance" box directly below the appropriate criterion. It should be noted that it is not the number of advantages but the importance or desirability of the advantages that should influence the ranking. In all of the ratings the PRESENT WAY must be considered as if it is a proposal that is in the same early stage of development as the other ideas on the list. 2. Add the advantage and disadvantage rating for each idea and enter the kesult in the "rank" column. 3. and -5 is a significantly debilitating disad%i( a vantage.1 to -5. is already supplied at the top of%* the column. Usually any idea with an idea comparison rank of +2 or greater is transferred. Now it is useful to determine management's possible acceptance of them. Rate each idea on a scale of +1 to + 4 with regard to the management criteria. The team should identifj all of the advantages relating to that idea and assign a positive number from +1 to +5 where +5 represents a significant advantage. Group the ideas with a high idea-comparison rank into packages that represent approaches to sub-parts of the problem. 6. If some of the ideas obviously would be combined. There are two ways to arrive at this weighting: 1 ) Use a Paired Comparison Analysis form (Figure 11-5) and use the number in the "sum" column as the weighting. PRESENT WAY. 2) Subjectively rate each criterion on a scale of 1 to 10. At this juncture the team has identified the ideas that will give a significant value improvement. . 2. and sometimes the grouping will represent a total proposal. The idea comparison subjectively evaluates the advantages and disadvantages of the remaining ideas. the rank. 5. then the team will identify and rate the disadvantages for each idea. List the idea groups down the left-hand column of the Analysis Matrix form (Figure 11-4). The ideas with the highest + rank are then grouped and transferred to the Analysis Matrix screen. 4. 1. .1 is a minor disadvantage.

After all the ratings are completed. Compute the "weighted rating" for this combination by multiplying the "rating" "with the criterion "weighting. comparing each with the first criterion. 8. Ideas with "totals" less than the PRESENT WAY should not be pursued further. Insert the rating in the upper left-hand triangle of the box intersecting the subject idea row and the desired criterion column. (Written Assigument 11 follows Figure 11 -5.Unit 11 6. add the "weighted ratings" for each idea and insert under the "total" column at the right-hand side of the form. 9." *Yr. The total for the PRESENT WAY represents a value benchmark against which to measure all the remaining ideas. 10.) . Repeat this procedure for each successive idea on the sheet. 7. After all of the ideas have been rated for the first criterion. repeat the process for each of the remaining criteria. The final proposal will be constructed from the ideas that have "totals" higher than the PRESENT WAY. with the most advantageous ideas being those with the highest "totals." Insert it in the lower right-hand triangle of the box.

IDEA LIST FUNCTION This is the creative phase of the value study. Generate as many ideas as possible for accomplishing the function. Do not evaluate the ideas during this phase. ADD MORE SHEETS FOR MORE IDEAS! Copyright a 1989 by Board of Regents of the University of Wisconsin Syatem '? FORM 1101 Figure 11-1 Idea List Form . YOU'RE NOT THROUGH YET.. me Wegw of EngIneerln C U ~ I Y B of Y W J ~ ls~~ns~n~dIs~n Englneerlng Professional Development Unit 11 CREATIVE PHASE STUDY NO.

ability to meet the required criteria. in your judgment. Englneerlng Prpfesslonal Development ANALYSIS PHASE STUDY NO. Rank each idea from 1 to 10 for these factors. I FEASIBILITY RANKING FUNCTION List the ideas that have.Unit 11 . NOW IS THE TIME TO JUDGE Copyright cD 1989 by Board of Regents of the University of Wisconsin System FORM 1102 Figure 11-2 Feasibility Ranking Form . .

b f KEEP AN OPEN MIND Copyright 0 1989 by Board of Regenb of the University of Wisconsin System "FORM 1103 Figure 11-3 Idea Comparison Form . List both the advantages and disadvantages of each idea to determine where additional work must be done. ' I l u n L Vr I COMPARISON DISADVANTAGES RANK Select the most feasible ideas or combination of ideas..Unit 11 me College of Engheerl C l J n i v e r d yof W. List them below.sconsl%d/son Engineering Professional Development ANALYSIS PHASE STUDY NO. IDEA ADVANTAGES c' 1 ' .

List the best ideas from the Feasibility Ranking and Idea Comparison forms below.NOT PERFECTION Fair . Then. In the lower-right trianglesirecord the product of the two numbers. rate each (on a scale of 1 to 10 importance to the user. in the upper-left tri record how well (on a sca 1 to 4)* each idea fulfills ea criterion.2 Good .4 FORM 1104 Copyright @ 1989 by Board o f Regents o f the University o f Wisonsin System Figure 11-4 Analysis Matrix Form . in the boxes below the criteria.3 Excellent . 1 ANALYSIS MATRIX TOTAL PRESENT WAY 2 3 4 5 4 6 7 8 *Poor 1 - SEEK THE BEST. Total the products to determine which ideas OF best fit the desired IMPORTANCE criteria.Unit 11 T%eCollege of Englneedn C U n i v e r M y of WisconsI&dIson Englneerlng Professlonel Development ANALYSIS'PHASE STUDY NO. Fill in the diagonal headings with the most-desired criteria and.

1 . 3 . 4 . 2 .Much more important. I H SCORING Put t h e SCORE in each box by writing BOTH the LETIER representing the criteripn AND the NUMBER representing the weighting for the choice you feel is most important.No difference.Very slightly more important.Extremely more important. Copyright @ 1989 by Board of Regents of t h e Univmity of Wwconsin Syshm FORM 1105 . 5 .Reasonably more important.Slightly more important.Englmrlng Pmfeaslonal Development PAIRED COMPARISON ANALYSIS ORDER OF IMPORTANCE OF CRITERIA CRITERIA A (Accordin to the Highest core) 8 PREFERENCE WElGHTlNGS 0 .

explain how you would involve your management. then evaluate the ideas for all five functions.7) related to the lighted push button switch. Miles uses the phrase "Determining the possible. If some major areas of your organization are not included on your team. For the problem you picked in Question 6 of this assignment.70 Unit 11 WRITTEN ASSIGNMENT 11 See the instructions for preparing your written assignment on page 2 of this Study Guide. Your instructor may indicate on your graded Written Assignment 10 which of the five you are to evaluate. Explain how the value analyst could have recognized which functions caused the relatively low value index for Make A. explain why you would not include them. (In some cases you may not have to do all five functions. Refer to the acceptance (Section 13. 7. . Explain what areas of expertise you would include on your team and. What is the value standard and why is it important? 2. Do a complete evaluation of the ideas generated for the three-hole punch in your answer to Question 7 of the last assignment. briefly. What activities are completed in analysis-type thinking? 3. Pick a problem from your company suitable for a value team analysis. If no indication is given. 4. why you selected those areas. 6. 1.) Use the evaluation forms provided in the forms packet and send them in with this assignment. Mr." What do you think that meant to him? 5. .

it is more certain that lack of management understanding will severely cripple any value analysis program. Managing value analysis activities involves two important areas: 1) interpersonal relationships and 2) techniques for encouraging and motivating better value analysis work. . Units 1 2 through 15. considers types of training for value analysis and the roles of management and the value specialist. These areas are presented in the following units. Section 2. While a crude application of VE techniques and tools can at certain times produce results. Knowledge related to techniques and knowledge related to management are equally important for assuring successful VE programs.THE MANAGEMENT OF VALUE ANALYSIS ACTIVITIES "'1 \ Section 1 dealt with the techniques and tools of value analysis.

requires experience. This tendency is a particular danger when the attitudes of product users. r READING ASSIGMMENT Excerpts from: "Techniques of Value Analysis and Engineering. in their 30's or early 40's." Miles indicates that this is not possible and that five years of industrial experience for value specialists in industry is a prerequisite. They include: knowledge. It should be assumed that at least the same amount of time would be required for a value specialist who works in the architectural design area in civil engineering design. Miles points out the need for a firm belief in what value analysis can do to avoid frustration.a stable personality. experience. Three are listed and expanded upon in the Miles Excerpts. or building occupants are not thoroughly understood. a belief in the importance of value. an understanding of management and its decision processes is mandatory. Three of the qualifications need discussion beyond that supplied by Miles. Certain qualifications have been identified over a period of time. People in cost reduction can become obsessed with meeting a certain percentage goal regardless of how it affects value. Today's specialization tends to isolate individuals from the total picture on which value is determined. and developed creative meutal skills. a high degree of initiative. self-organization. a cooperative attitude. ow ever. can value analysis become a major study in an engineering curriculum? Some say. Experience is a much-discussed qualification. Finally. Certain other qualifications have been found to increase the effectiveness of the value specialist.THE ROLE OF THE VALUE ENGINEERING SPECIALIST The value specialist plays an extremely important role in any value analysis work and must know how to proceed as the one person responsible for a project. "Yes. particularly when leading teams. imagination. or are selected. or in the vast. or as the instructor and coordinator for one or more teams. but this is not true. voters. For instance. complicated area of software. Believing in the importance of value would seem to be in the same category as believing in motherhood or the flag.^" the ability to successfully conduct value analysis studies. Most value specialists start. Understand the importance of each: logic." L a . The qualifications of the value specialist are reviewed in this unit. It must really be an article of faith that the value analysis system with its various tools will accomplish the objectives regardless of the difficulties.Miles -7 Chapters 14 and 15 STUDY NOTES Definite skills are required to successfully practice value analysis. A certain amount of value analysis education would be desirable at the undergraduate level. Nearly all value specialists have learned value analysis techniques through some form of adult continuing education. The inexperienced person tends to feel finding the solution is all that is necessary and . and an understanding of management and decision procedures.

. Inc. the value specialist must make a management study. * - / 1 Agrarian Society (7000 B..74 Unit 12 that management will approve and implement the recommendations. the values produced in society and individuals by changing cultures. Halal. and the specialist.. . from The New Capitalism by William E. Inc. The main point to deduce is the increasingly important role the specialist plays in the working relationship with the top manager. Apply them to your particular organization. labor. or are they merely exercises in a side issue? William Halal.) .D. To be successful.D.. Nothing can be further from real life situations. It is important to know where the management of an organization fits on the evolutionary path. Stage of Evolution I Autocracy Authority Human Relations Participation I Survival Mawrialism Leadership Style I Self-Esteem Idealism Security > Affiliation r- I Cultural Values Agriculture Manufacturing 1 Simple I t' Social Organization Information Systems Complex -- I Technological Base Figure 12-1 Historical Trends and Leadership Styles * Five essentials for training are listed in the Miles Excerpts. and the evolution of technology. traces the evolution of three roles in human history: management. 12-1 is adapted. But be aware there may be a mixture of Halal's leadership styles in organizations today. Where is the strongest support? Which managers might be an obdacle? Are the projects that are recommended really part of management's overall plans.C. Copyright 01986 by John Wiley & Sons.) Knowledge Society (2000 A. The * Fig.) Service Society (1950 A. with the permission of John Wiley & Sons. in his book The New Capitalism. A well-trained and competent value specialist fits the right-hand side in the chart of Figure 12-1* better than most types of specialists.) Industrial Society (1850 A. He outlines a 40-hour training seminar in Section 14-3.D. Figure 12-1 summarizes his views on the evolution of leadership style.

4 10 15 Elective Courses (6 CEU) Course(s) selected by candidate. Also.6 CEU) ME C612-A361 An Introduction to VA and VE for Industries.4 TOTAL CEU REQUIREMENT 45 * Each CEU (Continuing Education Unit) indicates 10 hours of learning time. Services. Diploma Examination (2. . Figure 12-2 UW -Madison VE Specialist Diploma Program * The 40-hour workshop offered by the Department of Engineering Professional Development. VE I.4 CEU) Examination covering above topics. value consultation.) Chapter 15 expands into the work content. Module I1 Cost Oriented Product Design Individual Value Analysis/Value Engineering Project Correspondence Course Workshop Workshop Seminar/Workshop Workshop Independent Study 5 1. Four basic classes of value analysis work are described: integration.6 3. (If you want more details. and Governmental Agencies Using Value Engineering to Reduce Costs and Develop Superior Products VE I Value Analysis/Value Engineering VE 11. Module I Customer Oriented Product Development VE 11. * The Department of Engineering Professional Development introduced the Value Engineering Specialist diploma program in 1978. VALUE ENGINEERING SPFIALIST DIPLOMA PROGRAM Industry and Service COURSE CEU* Required Courses (36. include a request with this unit's written assignment when you send it in. Examination 2. include a request with this unit's written assignment when you send it in. If you want more details. Plan ahead to obtain the needed seminar experience. it is approved by the certification board of SAVE (Society of American Value Engineers) as one of the requirements for a certified value specialist. and value training. Figure 12-2 lists the generic course titles and continuing education units (CEUs) required for the diploma. One of the required courses is this correspondence course you are presently taking.Unit 12 75 training seminar is the most involved and tedious step in preparing to become a value specialist. follows the Miles outline quite closely. value appraisal and/or product evaluation.

what experience is required for the value specialist? 3. Identify how many hours of the 40-hour training seminar in Section 14-3 are applied to each one of the job plan steps. In accordance with the principles outlined. what kind of knowledge is required to conduct the study on the three-hole punch? 2. NOTE:You must account for all 40 hours. What are the various skills that must be developed by a value specialist? 4. Why is the belief in the importance of value essential? 7. 1. List the five essentials for training and list some specific areas of your organization that would apply to each. *-. What does this unit say about how to recognize a creative person? 6. . According to Mr. Miles. What personality and attitude traits does a value specialist require? 5. 8.76 Unit 12 WRITTEN ASSIGNMENT 12 See the instructions for preparing your written assignment on page 2 of this Study Guide.

Note the principal objectives of the various parts of the organization as indicated in Chapter 12. especially for value engineering work. emphasis is placed on industrial organizations because this was L. Whatever the reason. If you are in other types of organizations such as government agencies. The cost format used in Unit 7 is an example of one designed for value work. Note also how value engineering often relates to one or more objectives of the department. architectural or engineering design firms. Meaningful costs are often '% r. and so forth. Accounting's objective to accumulate figures for profit and loss accounting for tax and business purposes does not involve value analysis. One of the team suggestions was to eliminate one of the two coats of paint that was applied to the washing machine. its objective of cost and income projection for decision-making is very much involved in value analysis. A successful value analysis project c' brings credit to all involved. The so-called primer coat. They emphasize the specialization within organizations today. look for similarities and identify the part of your organization that performs a task similar to a task discussed by Miles. The technical people tried to explain that each coat of paint had a particular function." L.D. or perhaps the general manager was under such pressure from his top management that he thought the savings achieved by eliminating the primer coat was worth the risk. The top coat provided the high-gloss finish. and after a value engineering study is essential. which the team wanted to eliminate. Miles '"c. but not to all. The emphasis on obtaining costs. A number of years ago. The positive contributions of various parts of an organizadon assure success.INTERACTION OF THE ORGANIZATION WITH VALUE ENGINEERING The understanding of various interactions among parts of an organization before. a department general manager of a large corporation was under considerable pressure to cost-reduce one of the products in his department-an automatic clothes washer. service organizations. READING ASSIGNMENT Excerptsfrom: "Techniques of Value Analysis and Engineering. It certainly seems to be increasing as we look into the future. is important. Various teams were organized to suggest various ways to reduce costs. the order to eliminate the primer coat . Chapter 12 "e Review Chapter 15 9. difficult to obtain. However. during. Either the technical people were not able to adequately describe what the two coats did. was applied to prevent the steel from rusting and also to provide a surface to which the top coat would adhere. STUDY NOTES Throughout the Miles Excerpts. Miles' area of experience and background. The comparison of cost reduction activities with value engineering should be carefully read and understood.

1. Name at least four different. 6. Section 12-7 has considerable detailed information that may or may not be applicable to your organization. exj?lain some of the things you would do in each of the basic classes of value work. With whom does the value specialist work in each of the three categories of opp&tyqities listed in Question 21 In which specific areas of study does Mr. Purchasing was the area in which value analysis started. NOTE: Use the same problem selected in Question 6 of Unit 11. 8. The case study in Section 12-5 of the Miles Excerpts emphasizes the constant necessity for understanding make-or-buy decisions. It was a costly lesson which indicated that cost reductions must be made with full knowledge of what the various cost elements do for the customer. What does this unit say is engineering's primary responsibility in an industrial product? Name five VA techniques important in the purchasing section. Section 12-4 on engineering again brings out special interests.mentioned in this unit. used in determining appropriate sales and prices. important factors in the relationship of value analysis 2. The responsibilities of engineering for dependability and reliability are often reflected in the high costs of these areas. and for the next four to six months washing machines were produced with only the finish coat of paint applied. This decision to obtain a cost reduction had a severely adverse effect on the reputation of the corporation. You must understand the differences between the two techniques. 7. Name the categories of opportunities. Marketing (Section 12-9) has seldom been involved in value analysis. However. was given. The last section of Chapter 15 indicates how these apply to various parts of an organization. . You have already seen the way various manufacturing operations affect cost. if applicable. WRITTEN ASSIGNMENT 13 See the instructions for preparing your written assignment on page 2 of this Study Guide. What are the important factors in the relationship of value analysis to marketing? If you wereto do a value study in your organization on some specific product (or process). Miles say significant cost savings can occur? List four of the elements that differenti?te cost reduction from value analysis. The beginning of Chapter 15 identifies four classes of value engineering work content. there are many opportunities for cooperative efforts in marketing in customer-oriented value engineering. 3. 4. Go back and review Units 3 and 9 to refresh your memory on marketing research. 9. It definitely affected the future of the general manager. Since automatic washing machines are subjected to a high degree of humidity and moisture.78 Unit 13 %+. the results were disastrous. to accounting. Confusion continues to exist between cost reduction and value engineering. Nearly every washing machine had to be taken back because of peeling paint and rusting. 5.

A value research study on compact station wagons was carried out in the middle 1960's % . Sections 16-2 and 16-3 . or accept. and the politics of the orgpization. It is a real factor and should be thoroughly understood by the value specialist and the team members. Snodgrass and Kasi Chapter 16. D. Gains must be commensurate with the risk in order for management to consider a value recommendation. Section 16. The two steps in achiev--. At the head of the list is the matter of personal risk. The emphasis is on the problems of management per se as contrasted to the products or services the organization produces.MANAGEMENT'S ROLE IN VALUE ENGINEERING The tools and techniques of value analysis are important in determining solutions. Chapter 16. The elements of a successful value engineering program. READING ASSIGNMENT Excerpts from: "Techniquesof Value Analysis and Engineering. a new or different solution appears to be directly related to the degree of difference between the solution and the present method. Injurying or destroying the reputation of the decision-makers is a serious factor. Miles -4 Chapters 6 and 11 . and management's understanding and support determines the degree of implementation and overall success of the value analysis program. ing a value solution are 1) obtaining the value recommendation through the tools and techniques you studied in the first section of this correspondence course and 2) obtaining management's support in implementing the recommendations. Try the three-step approach on each of these five situations. The three stages are very similar to the job plan approach. An interesting case study is given in Chapter 6. but are essential to obtain a solution. Breaking a problem down into parts makes it easier to identlfy each different part and to work for individual solutions instead of initially trying to find one solution for the problem as a whole. deal primarily with interactions. There are steps in establishing an agreement for setting the problem which may seem elementary at first reading. as they concern management. Function Analysis: The Stepping Stones to Good Value. Probably more value analysis programs have failed because of management's inability to cope with the recommendations and organizational problems than for any other reason. Chapter 6 indicates the various steps and considerations involved.2 STUDY NOTES Value engineering can be used to solve management problems. personalities." L. The emphasis in Chapter 11 of the Miles Excerpts is on management's role in implementing the recommendations generated in a value study. Five additional situations are presented in Section 6-3. The time needed to adjust to. Miles discusses various reasons for this.

cause-and-effect relationships. Obviously then. List the five most important of the "Management Beliefs that Support Competitive Value Decisions" from the list of 17 found in Section 11-8 of the Miles Excerpts. The feeling at that time was that the compact car was a fad. It was even labeled "Miller's Follyw-holding up the individual's name to ridicule. 10. In Section 11-8. think of your own organization and determine where problems could arise in carrying out a properly planned value engineering study. of the product. List the five most important of the 25 items of the "Tests of Work Being Done" questionnaire found in Section 16-3 of the Miles Excerpts. when properly designed for the customer's needs. Several case studies are presented that demonstrate factors already discussed. 4. feelings and emotions of organization members. or mind tuning? What is the purpose and result of the second problem-setting step? What does the third problem-setting step do? R$er to the company problem you selected in Unit 11. 1. accountability for sales or performance as contrasted to profits. Question 6. 2. List the fivebresultsaccelerators emphasized in this unit. was a highly acceptable vehicle. Miles lists some important factors that cause this: subjective judgments. indicated that the compact car. or decrease the performance or overall acceptance. and indicate h o ~ % uwould "set" the problem.80 Unit 14 for a major automobile manufacturer. 7. Again. WRITTEN ASSIGNMENT 14 See the instructions for preparing your written assignment on page 2 of this Study Guide. the study damaged the reputation of the individual who sponsored it. What two types of work are required to improve value? Why is it difficult to create a constructive decision-making environment? List the situations where decisions resdt in extra cost. understand the 17 points on *+. The influence of management is clearly shown. 6. and the public would soon return to full-sized cars. The results of the study. 11."management beliefs" which can assist in implementing value recommendations. How good must management's decisions be? What is the first step in setting the problem. Even though time proved the correctness of the results. and anti-new perspectives. 5. 3. Internal bias caused by entrenched attitudes within organizations can cause deviations from good value. The final results are reviewed for the case histories used in various earlier chapters of Function Analysis: The Stepping Stones to Good Value. however. the results were completely opposite to the popular beliefs. it can gradually add to the cost. 8. . 9. That is. Note the various types of obstacles that can adversely affect the implementation of a value analysis recommendation. Notice that where the implementation was incomplete or nonexistent. important planning elements were missing.

Every value specialist must learn to cope with such situations and realize that often only time can help some individuals.VALUE ENGINEERING AS A CAREER S O M E DO'S AND DON'T'S Value engineering specialists are becoming more in demand as world competition for corporations and tight government agency budgets become commonplace. Many of the problems involve change-change in a product design or in an organization's procedure. the two types of fast diagramming. Most team members are action-oriented. becoming familiar with the verbfnoun form. Many of these motivational points were covered in Unit 14.3 STUDY NOTES Every professional faces career problems. and with it the rewards for which value engineering is known. In fact. Units 1214 have addressed some of the factors involved in training. while proceediug without it creates another major pitfall. The very techniques that the value specialist uses are strange to the "first timers. Yet. Section 16. and value specialists are no exception. a departure from the usual technically-oriented FAST with which he was familiar. One of the top value specialists in the United States took a course requiring the Ie'arning of customer-oriented FAST. and the organization. followed the rules to a satisfactory result. -7 READING ASSIGNMENT Function Analysis: The Stepping Stones to Good Value. gathering the proper information takes time. Snodgrass and Kasi Chapter 16. Often a dominant team member will dem'and that the team stop "wasting time" on "silly" verb/noun functions and get to the important activity-creativity. This final unit will address some of the most important motivational factors in terms of how they affect the value -sJ specialist.and in management's role. and it is difficult not to jump ahead when one sees a potential solution. But with diligence it does come. Giving in to such an individual spells disaster. but once management makes that decision. because the poor results from such a study will reflect back on the value specialist. This can become a problem. in interrelationships. and overhead to verblnoun descriptors called functions often causes trauma. A large part of the hccess or failure of value engineering studies comes down to the degree of motivation for the VE specialist and the organization. "get-thejob-done" types. labor. An organization can take months trying to decide to do a value engisleering study. the project. This individual became so emotional that he coul7b not continue with the team." Converting a structure built of material containing familiar items such as materials. Following the step-by-stepjob plan from the information phase through the various screens of the evaluation phase can present real questioning regarding theuse of the team's time. . instank action is desired. learning the technique for the first time. the remaining team members. and allocation of cost does not come easily. However.

Individuals working on the same product for long periods of time develop ways of thinking that are difficult to change. What makes the organization work? Where do the problem areas exist? For many. Carefully read the final paragraph in the text. Selecting the team members is often another obstacle the value specialist must face. new costing systems. for the system is the solution to the most complex problem. time is the answer. The motivations for becoming a value specialist are as great as. Up to now we have asked you to learn the tools. at the very least. special market segments or marketing techniques. from the potential output and often creates a bad impression of value engineering within the organization. WRITTEN ASSIGNMENT 15 See the instructions for preparing your written assignment on page 2 of this Study Guide. Equally important.3 in your text for further evidence that the techniques of the value specialist and the VE system provide answers to several of the "megatrends" outlined by John ~aisbitt. for it can be the key element in your organization's sdccess. First. the unique technique of value engineering tackles a total product and points out the specific problems.^ and procedures for following the majo* of Peters' and waterman's3 eight basic principles. Productivity and Competitive Positions In Search of Excellence . the successful organization. has the ability to work toward common objectives that are the right objectives. such as flexible manufacturing systems (FMS). Developing creative thinking poses another problem in motivation. Go back and review the Halal diagram in Unit 12 and understand that you are training for a key role for future organizations. Refinement has been made over many years. it pushes the team members toward new technologies and approaches. Never lose faith. and activities of value analysis.Transforming our Lives Quality. Most importantly.82 Unit 15 . There is no similar opportunity in an organization to learn and understand how things get done. or greater than. Again. remember that you are using a system that works.. techniques. Never criticize. etc. Edwards erni in^. It definitely injures the reputation of the value specialist. Finally. Review Section 16.'weapons against many (ef the "sins" identified by W. In this assignment. Allow enough time to let creating-by-functionsproduce better and better answers. their time as value specialists will be a training period. ideas have been borrowed from other approaches. we want you to t h i n k about the various aspects of how and why you may or Megatrends: Ten New Directions . a period for upper management to observe their skills in handling people as well as problems and deciding that they are just the right candidates for a higher level job. Anything less detracts. Second. There are two reasons for this. Functional Analysis: Stepping Stones to Good Value.just-in-time (JIT) operations. Always make positive suggestions. The dilemma the specialist faces is that usually these same individuals are the persons who should be on the project team. Taguchi's experimental design for robust products.. the problems just discussed. corporate or government. value specialists enter upper management as specialists and they are recognized on an equal basis with their peers who are responsible for organizations. This is the final assignment in this course on value analysis. Successful projects are always the output of the right individuals following the proper job plan and using the correct data.

(If your answer is nothing. just good. Please respond to each of the following question by writing a brief. 1.) Discuss some roadblocks you regularly encounter on your job and how you think you might overcome them in the future. then explain what additibfial things you are going to do to improve your job skills. well-considered. thoughtful answers. Explain what additional things you will be doing to improve your value analysis skills. Explain why and how you will (or will not) use value analysis on your job. concise essay-please do not be wordy.Unit 15 83 may not be influenced by using value analysis. NOTE: Read all of the questions before answering any of them. 2. There are no "correct" answers. .

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