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Course Guide for
Civil and Environmental Engineering C240-A362
An Introduction to
for Architects, Engineers, anqBuilders
A Continuing Education Course . . .15 CEUs
By Muthiah Kasi, C.V.S.
Senior Vice President
Alfred Benesch & Company
Chicago, Illinois
Prepared under the supervision of
Thomas J. Snodgrass, C.V.S.
Faculty Associate, Distinguished Service
Department of Engineering Professional Development
University of Wisconsin-Madison
University of Wisconsin-Extension
Independent Study
University of Wisconsin-Extension
Independent Study
Sylvia N. Rose, Director
Publishing Staff
Aaron Appelstein, Editor Nancy H. Gaines, Senior Editor Shirley
Gleichauf, Editorial Assistant Cathy Moore, Associate Editor Brent Nelson,
Editor Esther Paist. Senior Editor
Composition: Judy Faber, Program Manager, Department of Engineering
Professional Development, University of Wisconsin-Madison
O 1994 by Board of Regents of the University of Wisconsin System
All Rights Reserved
~ r o d u c e h b ~ University of Wisconsin-Extension
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Direct policy inquiries to Office of Affirmative Action and Equal Opportunity
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Reasonable Accommodation for Students with Disabilities / iv
Academic Honesty / iv
About the Author / v
Preface / vi
Introduction / vii
How You Should Proceed in This Course / viij
1 Why Value Engineering? / 1
2 Job Plan / 4
3 Information Gathering / 10
4 Defining Functions / 14
5 Technical FAST Diagramming / 33
6 Case Study: High-rise Building Column / 43
7 Task/Customer FAST Diagrams / 46
8 Function Cost / 51
9 Function Attitudes and Value Mismatch / 79
10 Function Analysis and Creativity / 81
11 Evaluation / 84
12 Value Engineering Change Proposal (VECP) / 97
13 How to Perform a Value Engineering Study / 101
14 Management's Role in Value Engineering / 112
15 Value Engineering as a Career / 115
Request for Final Examination / 119
Request for Transcript
Course Evaluation Form / E-1
Reasonable 'Accommodation
for Students with Disabilities
Independent Study is committed to providing reasonable accommodation for
students with disabilities. Such accommodation includes making course materials
available in accessible delivery formats (for example, large print, cassette tape,
*".scripts, and computer disk) and adapting written-assignment and exam procedures
as appropriate.
If you are a student with disabilities and would like to discuss accommodation,
please contact Independent Study (608-263-2055; toll-free: 800-442-6460; TTY:
608-262-8662). We ask that you request alternate, accessible course delivery for-
mats at least eight weeks before beginning work on the course, and testing and
written-assignment accommodation well in advance of need.
Academic Honesty
Students enrolled in Independent Study correspondence courses are expected
t o obsewe ,the same strict codes of academic honesty required of students in the
L -.
classroom. Failure to do so will result in various penalties ranging from having to
resubmit assignments or retake examinations to immediate withdrawal or failure
in the course.
Academic dishonesty is a serious offeqde, and you should be fully aware of its
nature and its consequences. Unacceptable behavior includes, but is not limited
to, submitting another's work as your own, using a solutions manual, cheating on
examinations, and plagiarism in all forms.
Muthiah Kasi is a certified value specialist (life), a registered structural engineer,
and a registered professional engineer. He received the Master of Sdiqnce degree
in structural engineering from Michigan State University in 1968. Mr. Kasi is the
Senior Vice President of Total Quality Management at Alfred Benesch & Company
and is in charge of all value engineering studies.
Under his direction, Alfred Benesch & Company, a consulting firm in Chicago,
has established an ongoing value engineering program. Their effort has already
resulted in improved value with multimillion-dollar savings in highway and building
projects. Alfred Benesch & Company received the 1989 Engineering Excellence
Award for Industry and the 1992 Paper of the Year Award for STH 16 Bypass
Safety Study from SAVE (Society of American Value Engineers).
Mr. Kasi has ceauthored these books: F'unction Analysis: The Stepping Stones
to Good Value, A New Look at Short-Span Bridges, and Comparative Bridge Anal-
ysis (COBRA). He has led various Value Engineering Workshops for the Penn-
sylvania, Georgia, Michigan, Wisconsin, and Illinois Departments of Transporta-
tion and the Federal Highway Administration. He is the past president of the
Chicago Chapter of SAVE, the Director of Standards of SAVE and a Director of
the Lawrence D. Miles Value Foundation.
The great inventors who made our life so enjoyable and convenient always de-
lighted in manipulating their talents to the extreme. They often sought answers
for what was considered impossible and suffered a great deal to achieve them.
They speculated and speculated until they transformed their dreams into reality.
Scientists like Thomas Edison proved that there is more to engineering than just
calculations, namely, imagination. Perseverance was their key to success. They
distinguished themselves from others and achieved lasting fame. Their philosophy
*wan be summarized as follows:
. . . my purpose holds,
To sail beyond the sunset, and the baths
Of all the western stars, until I die . . .
To strive, to seek, to find, and not to yield.
- Tennyson, Ulysses
Perseverance is one of the themes that value engineering promotes. It is a
system that encourages individuals to search systematically, analyze objectively,
and solve creatively any problem.
Why Not the Best Value?
Economic, environmental, and social conditions, increased knowledge, and sophis-
ticated attitudes of the owner/user demand a significant change in the philosophy
of design and construction of civil engineering projects. The time has come for
engineers to think beyond the compartmentalized analysis of stresses and strains
and the>&cost of the project. This course covers the techniques and tools needed
t o implement the philosophy of value engineering, a method by which engineers
can solve their problems.
Value engineering is an organized wa of defining a problem and creatively
solving it. It requires a job plan. The job plan provides a system for the solution
of the problem. The value specialist utilizes this system to understand, define, and
determine a way t o achieve good value. The use of functions t o clearly define the
purpose of the project and allocation of cost by function are unique techniques of
value engineering.
I would like to express my deep appreciation and gratitude to the management and
staff of Alfred Benesch & Company for their sincere cooperation, moral support,
and technical contribution to this Course Guide.
- Muthiah Kasi
Value analysis is a relatively new system which traces its origins back to the late
1940's. The concept was conceived by Lawrence D. Miles, the authorbf Techniques
of Value Analysis and Engineering. It is a system developed for the elimination of
unnecessary costs.
This course in value analysis and value engineering has four major objectives.
It is designed to help you:
1. understand the unique techniques of value analysis,
2. learn the value analysis job plan,
3. appreciate the major factors in value analysis, and
4. understand the role of the value specialist in relation t o the rest of an orga-
This is the Course Guide for Civil and Environmental Engineering C240-A362,
An Introduction to Value Analysis and Value Engineering for Architects, Engi-
neers, and Budders. This Course Guide provides the instruction and information
usually given in a classroom situation, your reading and written assignments, qd.
additional comments by the instructor. The course is divided into fifteen units.
Please read this section of this Course Guide carefully. It explains the struc-
ture of the course and tells you how to organize your written assignments before
submitting them for grading.
0.1 Materials for the Course
The required textbooks for this course are
finction Analysis: The Stepping Stones to Good Value, Thomas Snodgrass and
Muthiah Kasi, 1986, The University of Wisconsin System, Madison, Wiscon-
Excerpts from: "Techniques of Value Analysis and Engineering, " Lawrence D.
Miles. From the 2nd ed., 1972, originally published by McGraw-Hill, New
A Forms Packet of special course materials is supplied for this course. First
s he @ for beginning the written work of each assignment and envelopes for mailing
your work to University of Wisconsin-Extension are also enclosed. You will need to
supply the following materials: additional paper for assigned written work, scratch
paper, pencil, eraser, straight edge, and similar miscellaneous materials. Special
blank forms are enclosed in this envelope for use when mentioned in some of your
writ ten assignments.
0.2 How You Should Proceed in This Course
Each of the 15 assignments in this Course Guide contains the following:
0.2.1 Reading Assignment
The material assigned in the textbooks is required reading and should be carefully
0.2.2 Study Notes
The study notes should also be carefully studied. They will help you acquire a more
complete understanding of value engineering. This section includes the key points
t o each assignment and often incorporates supplementary material that amplifies
or clarifies the text material.
0.2.3 Written Assignment
Write your answers to the written assignment neatly, beginning on one of the
special first sheets provided by University of Wisconsin-Extension. Continue your
assignment on additional paper, as needed. Be sure your name, mailing address,
the coukqqumber, course name, and lesson number are filled in on the first sheet.
Your name and the course and lesson numbers should also be on each added sheet
of paper. Then put all the sheets together and insert them in one of the special
envelopes provided by UW-Extension. Fill in the blanks on the envelope, put
postage on it, and mail it. d
You can now proceed with the next lesson in the same manner. Meanwhile your
written assignment will be graded by your course instructor, who will also provide
written comment, as appropriate, on your work. After your corrected assignment
has been returned t o you, check it carefully and use it t o guide any review study
you may need. For Lessons 4 and 5, you must wait until the graded assignment is
returned before proceeding to the next writ ten assignment.
After you have completed all the written assignments, request the final exam-
ination. You will find the directions for the final examination at the back of this
Course Guide.
You will have completed the course when you have earned a satisfactory grade
of 70% or better on each of the written assignments and the final examination.
0.3 Additional Study Suggestions
The following suggestions, when adapted to fit your own study habits and methods,
should help you successfully complete the course.
1. Set aside a regular number of hours each week for study. Study in a quiet
place where you will not be interrupted.
2. Devote enough time to each assignment. Each assignment requires several
hours of study. You may need more time to learn the material in some
assignments. Take enough time to study new ideas thoroughly. Do not go
on t o the next assignment until (ou understand fully what you are currently
studying and have submitted the written assignment with the confidence
that you will receive a good grade.
3. Just read the total assignment (Reading Assignment and Study &tos) first-
do not study details. Then return to the beginning and both read and study
the assignment carefully. This time make sure that you thoroughly under-
stand all the material, including figures and tables. You may want t o make
notes in the margins or on a separate sheet of paper, or underline key words
and sentences. Review your initial reading of the assignment within 24 hours
to fix major points in your mind.
4. Relate what you're learning to anything you can. The world is full of products
and services. As you learn value analysis techniques, make a mental game of
applying them to things you encounter. 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 t o you and a list
of things which represent poor value. In short, keep your eyes open and your
mind active. The more you can observe, see, read, discuss, or think through,
the better you will learn not just the material in this course but also a lot
more about value and value analysis.
5. When you are ready, carefully and thoughtfully complete the written assign-
ment. You may want to work it out on scratch paper first. Keep your final
written work neat and legible. It's a courtesy to your instructor and your
work will be more useful to you in reviewing the course.
6. Begin work on the next assignment of the course.
0.4 Ask For Help
If you have difficulty understanding some concepts or answering questions, please
feel free to ask your instructor for help. The more specific your question is, the
better your instructor can respond. Send any questions you may have in the same
envelope with your written assignment.
We are well aware that individuals may have special questions not answered in
the reading, or difficulties with the written assignments. If you wish a telephone
conference at any point during the course, inform the instructor on a written
assignment sheet. Include your telephone number and a time when it would be
convenient for the instructor to call you. Do not hesitate to ask for assistance.
0.5 Final Examinat ion
You must pass the final examination to complete the course and receive a passing
grade. Directions for finding a proctor and a Request for Final Examination are
included at the back of this Course Guide. Please fill in the request and mail it to
the address given at the bottom of the request form.
Before you may take the final examination, you will need a passing grade for
,,each of the fifteen assignments. That means that any assignment returned to you
that is marked "Incomplete" or "Correct and Return" must be completed and
graded before your exam is sent to your proctor.
You should review all completed assignments, and the written comments from
your instructor before you take the final examination.
0.6 Course Grade
To learn value analysis you must not only completely understand what it is but
must also develop the ability to use the system and techniques presented by the
authors of the textbooks and this Course Guide. Your written assignment grades
will reflect how well you demonstrate that you comprehend and can apply the
subject matter. We understand that you may not always agree with what is
presented. If so, your answers should first demonstrate that you have learned the
course rh &rial before you offer other comments. Otherwise, in grading, it may
not be possible to distinguish between a wrong answer (lack of understanding) and
a difference of opinion.
The final course grade will be based half on the average of the written as-
signment grades and half on the course &a1 examination grade. 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. The fol-
lowing grades will be used for your written assignments, final examination, and
final grade: A -Excellent (93 - 100) ; B -Good (85- 92) ; C -Fair (77- 84) ; D -Poor
(70-76); F-Failure (below 70). Whenever a lesson or exam is graded below 70,
you will be given an opportunity to improve your grade.
An "Incomplete" or "C & R" indicates that some work in a written assignment
has not been submitted or was not done correctly (resulting in a grade below 70).
You will be given a new grade for the particular assignment when you return it
along with any required additional work. The higher grade is entered in your
0.7 Certificate of Completion
Upon your successful compIetion of the course, Independent Study will issue a
certificate of completion free of charge.
0.8 Additional Help
If you would like to contact the Department of Engineering Professional Develop
ment Independent Study Program directly, please call Judy Faber, program man-
ager (800-462-0876 or 608-262-1735; fv: 608-265-2293; e-mail:
In the 50s and 60s, a major explosion in the transportation system of the United
States took place. Hundreds of miles of state and federal highways were built.
Thousands of additional bridges were added with the construction of the interstate
highway system. New office and apartment high-rise buildings were constructed.
The huge increase in new construction required tremendous amounts of materials
for utility distribution links (e.g., electrical cables and gas pipelines) to be buried.
For many years, we benefited from those years of major construction projects.
Now, after more than 30 years, we are challenged by the same elements that once
were our pride and joy. Bridges and highways are old and need major rehabilita-
tion or replacement. Buildings and utilities are in some cases functionally obsolete.
Existing utility distribution links pose major obstacles for new construction be-
cause the exact underground locations are not always known. Cost, environmental
impact, and energy are some of the other issues that must be addressed.
An engineer, as an individual, can no longer design a structure. The engineer
must coordinate ideas with all other professionals involved in the project. A team
concept has evolved to coordinate solving common problems for a project. Con-
tractors, for example, are given the opportunity to present alternative problem
solutions. By understanding all the functions of a project, the team can discover
solutions that will reduce cost, but also maintain performance.
Engineers should be aware of and should appreciate the role of present owners
and future owners. For example, developers of a condominium complex and the
future buyers of the condominiums are users/owners whose interests may not al-
ways be compatible. It is evident that we need an organized system to recognize
such differences and focus on needs and requirements. These needs and require-
ments can be defined in terms of functions. The value of a project can be defined
and enhanced only if all functions of a project are defined. Performance can be
measured only if the functions of a project are precisely known.
This course guide and the textbook finction Analysis: The Stepping Stones
to Good Value will guide you through the use of function analysis on good perfor-
mance and reasonable cost.
1.1 Reading Assignment
finction Analysis: The Stepping Stones to Good Value, Snodgrass and
Kasi. Preface, pages xi-xii
Excerpts from: "Techniques of Value Analysis and Engineering, " L. D. Miles.
Preface, Chapter 1
1.2 Study Notes
Anyone who is interested in value engineering1 should read VE history. Lawrence
(Larry) D. Miles, the "founder" of value engineering, describes his philosophy in
his book, Techniques of Value Analysis and Engineering. Your major textbook,
finction Analysis: The Stepping Stones to Good Value, expands this approach
""further. Reading explanations of the past and present thinking will give you a
better understanding of value engineering.
Value analysis/value engineering is a problem-solving technique that provides
an organized approach with an emphasis on thorough consideration of the impor-
tant factors in the analysis and development of creative solutions. It also compares
efforts and benefits. The process focuses on unnecessary cost by matching functions
to cost. Four steps-gathering and structuring information, analyzing informa-
tion, creating alternatives, judging the merits of alternatives-are the heart of the
technique called value analysis.
In the value analysis process, a major player who was often forgotten at crucial
times in the past, the user has surfaced. The voice of the user/owner/customer
is now heard in all public and private owner's planning sessions. Larry Miles
emphasizes that a product must meet the customer's expectations in order to be
acceptable. In any civil engineering project, the user's acceptance is critical. User
acceptance may be direct and timely, or indirect and untimely. Millions of dollars
are often spent to make a building dependable and attractive, yet we sometimes
fail t o &&FI~ a little bit more t o make it convenient t o use. Value engineering
brings out indirect acceptance in a timely fashion.
Larry Miles' book is written mainly with references t o manufactured products.
You are urged to review these references t oroughly. They illustrate that the own-
ers/users of some projects may not unde + ! tand the technical needs of the projects.
We should be trained to express our technical needs in terms of the functions of
a project, and functions and their benefits are best understood by analyzing un-
familiar projects. Hence, civil engineering professional~ will be well served with
Larry Miles' industrial examples.
Miles presents five key questions in Section 1-10 which must be asked and
answered in order to select a value analysis project and prepare individual's minds
t o accept value analysis techniques. You should be able to list the questions and
give an example of each.
he term value engineering is often replaced by value analysis, value assurance, value man-
agement, or other synonyms. It may also be written as VA, VE, or VA/VE.
1.3 Written Assignment 1
Begin each Written Assignment on one of the special printed first sheets we have
provided, and continue on 8 1/2 x 11 inch paper you provide. Be sure to carefully
complete the requested information on the first sheet. The first sheet is used in a
window envelope to return your lesson after it is graded. Keep your written work
neat and legible. Show all your work clearly so it will be more useful to you for
review later in the course and for future reference.
1. What is value analysis trying to do?
2. What is the definition for valu&analysis given by Larry Miles?
3. Why is value analysis needed?
4. What are four roadblocks mentioned in the assignment? . , t
5. In what areas of an organization can causes for poor value be found?
6. What are four types of mental activity involved in VA?
7. What does "appropriate performance" mean as it is used in VA?
8. List the questions that must be excluded when the question, "what does it
do?" is asked?
"Tal ue engineering advocates a stepby-step systematic approach. Gathering infor-
mation is the major part of a VE job plan. The VE job plan has several phases
and imposes a set of rules that must be adhered to for each phase. The rules may
appear to be simple but they are vital to the success of a value engineering study.
This unit will describe the typical job plan and explain the rules of the job plan
and the reasoning behind them.
2.1 Reading Assignment
Excerpts from: "Techniques of Value Analysis and Engineering, " L. D. Miles.
Chapter 5, Sections 5.2-5.3; Chapter 6, Sections 6.1-6.2
2.2 Study Notes
2.2.1 Job Plan
A typical jbb plan consists of the following phases:
Information Phase
Speculation Phase
Evaluation Phase r'
Development Phase
Implementation Phase
These phases are described in more detail in the remainder of this unit.
The Information Phase
The first step in information gathering is to know the owners/users and understand
their needs.
Who are the owners/users?
Who or what influences the owner in making critical decisions?
What do these individuals or organizations want?
Unit 2. JOB PLAN 5
Example 2-1 is a list of the owners/users with a list of their wants made for a
VE study of a highway bridge project. The owners/users are listed in their precise
order of importance. Determine the role each plays and how important these roles
are in the decision-making process.
In addition, during the information phase, all specifications, goals and objec-
tives, and unwritten constraints would be gathered, functions would be determined,
and function and total costs would be calculated. Functions and their importance
will be discussed in Units 4 through 9 of this course.
A Wisconsin Hghway Bridge Project
Who are the owners/users? (Step 1)
1. City
2. Wisconsin Department of Natural Resources
3. Federal Highway Administration
4. Industrial Park
5. State of Wisconsin
6. Gun Club and Golf Course
7. Fishermen
8. Railroad
9. Truckers
What do they want? (Step 2)
1. City. Wants a four-lane highway with sidewalk, curb, and gutters, which will
provide the access between the City and the Industrial Park. --+%
2. Wisconsin Department of Natural Resources. Concerned with flow capaci-
ties, backwater elevations, potential upstream and downstream water dam-
ages, and protection of the roadway in the design of any water-related struc-
tures. It is also concerned with the riparian rights of present and future
owners, upstream and downstream.
3. Fedeml Highway Administration. Needs to be assured (a) that adequate con-
siderations are given to possible social, economic, and environmental effects
of proposed highway projects; (b) that there is fast, safe, and efficient trans-
portation and public services; and (c) that adverse effects be eliminated or
minimized. This includes air, noise, and water pollution, destruction or dis-
ruption of man-made and natural resources, aesthetic values, corqnunity
cohesion, availability of public facilities and services, adverse employment
effects, tax-property value losses, and disruption of desirable community and
regional growth.
6 Unit 2. JOB PLAN
4. Industrial park. Needs access with adequate size and load carrying capacity
between the industrial park, the city and major highways.
5. State of Wisconsin. Concerned that the bridge be designed and constructed
in accordance with the specifications of the American Association of State
Highway and Transportation Officials (AASHTO) and the bridge manual
and specifications of the state.
6. Gun club and golf course. Concerned that during and after construction the
project will interfere with the use of their facilities.
7. Fishermen. Concerned that access to the river and river banks is maintained
and that the environment conducive t o fishing be maintained or improved.
8. Railroad. Concerned that railroad traffic be maintained during construction
3 %-
and that the railroad right-of-way be properly protected during and after the
9. Trucker-s. Concerned that the project will provide reasonable entrance and
exit facilities for safe, efficient operation.
The Speculation Phase
Being creative is difficult for most engineers, because they have a built-in urge
to find a quick solution. The job plan controls this tendency and requires the
engineer go through all phases of this systematic procedure. Larry Miles discusses
the strategy of creativity in value engineering. One important point t o remember
is to let your mind wander freely with no limitations. Utilize functions as a vehicle
t o create the widest possible range of ideas. Unit 10 will discuss this approach in
The Eyaluation Phase
After all \ t b" e ideas are listed, a series of screening processes is needed t o sort them.
Idea comparison, feasibility ranking, and analysis matrix are some of the techniques
that will be utilized. These techniques will be discussed in Unit 11. Basically, the
system will help you focus on ideas thatjare closer to the user's concerns, needs
and requirements. At the end of this phase, outstanding ideas will emerge for
The Development Phase
Good results are obtained by combining the strengths of various ideas. Develop
ment should include the following steps:
1. Research and add information to substantiate your approach.
(a) Separate ideas that are industry standards.
(b) Recognize ideas that are not tested.
Unit 2. JOB PLAN
(c) Become aware of ideas that are controversial.
2. Recognize ideas that may be unique.
3. Involve specialists to support and perfect your ideas.
4. Prepare cost estimate.
(a) Consider impact on customer(s) .
(b) Use cost to perform rate of return analysis.
(c) Consider life cycle cost.
5. Analyze risks and back up your ideas accordingly.
The Implementation Phase
- , t
Be aware of road blocks. Look out for signals that may doom your edr t s . The
VE job does not end at presentation. It should continue until the ideas or the
dreams materialize into reality. Keep in mind that your ideas are only as good as
their implementation. It is important that the VE leader should listen, monitor
and react to all concerns.
2.2.2 Job Plan Questions
Each phase of the VE job plan can be summarized in a series of questions:
1. Information Phase
(a) What is it?
(b) What does it cost?
(c) What does it do?
(d) How does it do it?
(e) What are the functions?
(f) What do they cost?
(g) What should they cost?
2. Speculation Phase
(a) What else will do the job?
(b) What if . . . ?
(c) What is the least expensive way of performing each function?
3. Evaluation Phase
(a) What are the criteria for judging? (needs and desires)
(b) How does each solution meet the criteria?
(c) Will that work?
8 Unit 2. JOB PLAN
(d) How would it work?
(e) Why can't this work?
(f) What does it cost?
(g) How important is the cost?
4. Development Phase
(a) How can we make it acceptable to owners/users?
(b) What can we do to make it better?
(c) What can be done to make it cost less?
5. Implement at ion Phase (selling)
(a) Who really makes the decision?
(b) Who knows most about this problem?
(c) Who are the stake holders?
Exploring these questions and answering them for a given project becomes the
main part of a VE job plan. Some practitioners tend to stress certain phases of a
job plan. This has led to slight variations t o the job plan. The steps cited above
may be subdivided and as many as eight used. However, the basic steps and rules
as outlined here are still valid.
2.2.3 Guidelines for a Successful Study
Keep in mind that the job plan must be followed to have a meaningful study.
Failure to adhere t o its rules may in some cases result in a cost reduction study
rather than a value engineering study. During the various phases, keep in mind
the following guidelines.
1. ~nf o~nat i on Phase
(a) Don't speculate.
(b) Don't jump to conclusions; gather as much information as possible.
(c) Don't evaluate.
(d) Underst and the problem thoroughly.
2. Speculation Phase
(a) Don't judge or evaluate.
(b) Don't question the validity of an idea.
(c) Let everyone participate in the creative phase.
3. Evaluation Phase
(a) Don't create.
Unit 2. JOB PLAN
(b) Don't jump to conclusions.
(c) Judge each idea against each criterion.
(d) Always be prepared to explain your ratings.
4. Development Phase
(a) Seek help.
(b) Get input from specialists and experts.
(c) Develop the best ideas.
5. Implementation Phase
(a) Look for road blocks.
(b) Identify and influence decision makers.
In Units 3 through 11 we will discuss the information and speculation phases
of the job plan in more detail with examples.
2.3 Written Assignment 2
1. Conduct a mind-tuning exercise (This will require a bit of role playing, so
supply your own reasonable answers for the project.) for Example 2-1, A
Wisconsin Highway Bridge Project, in this Course Guide.
(a) List the output of the first step.
(b) List the output of the second step.
(c) Write a concise paragraph setting the problem. (third step)
2. What is the problem-solving system of value analysis?
3. Describe the importance of each phase.
4. List the critical questions of each phase.
5. What are the major rules that must be adhered to in each phase?
6. Explain the purpose of the job plan.
7. Can the sequence of steps in the job plan be changed? (Explain your answer.)
The value of a project depends upon the degree of acceptance of the project by
the users and owners. Roadblocks to good value include:
1. gathering information too late,
2. gathering insufficient information, and
3. selective gathering of information.
Value can't be achieved when a design team fails to recognize the importance
of information gathering. In the public sector, owners and designers gather infor-
mation through public hearing and public information meetings. However, this
information is generally limited to the environmental issues. Decisions are then
made apd "cast in concrete" without considering other factors. In the private sec-
tor it is?of&m done after decisions are made. Effort must be made to gather all the
available information pertaining to the project. Partial information gathering may
lead t o solutions that are inappropriate for the specific project. Selective gather-
ing of information to ensure that the information only substantiates the decision
already made will seldom produce optim&n value. Similarly, selective gathering
of information by, or for, a special interest group might actually result in poor
value. Gathering information- timely, adequately, and properly -is much more
important than developing solutions. This unit will discuss the importance of
information gathering.
3.1 Reading Assignment
Excerpts from: "Techniques of Value Analysis and Engineering, " L. D. Miles.
Chapter 8, Introduction and Sections 8.1-8.3; Chapter 12, Sec-
tion 12.1; Chapter 13, Sections 13.4-13.5
3.2 Study Notes
Information related to any project is usually gathered by many people at different
time periods. The results are summarized on different occasions and then passed
on t o others. The actual in-depth information is not available to the decision
makers or designers. This unintentional lack of coordination can affect the project
value more than anything else. The value engineer should insist on documenting
all information without judging its merits. The first step in information-gathering
is to recognize all the elements of an information package.
Performance Elements ,1
1. Who are the owners/decision-makers?
2. What are their needs/requirements, desireslwants?
3. What are the constraints? (Such as vibrations, deflections, etc.)
4. What are the user's concerns?
5. What were the problems on similar projects?
1. Who are the owners/decision makers?
2. What are their needs/requirements, desires/wants?
3. What is the scheduling/lead-time?
4. How much time is available?
5. Will there be construction access problems?
6. Are there anticipated construction difficulties?
Cost Elements
1. First cost
2. Operating costs
3. Maintenance costs
4. Staffig costs
5. Users costs
6. Rehabilitation/repair costs
7. End-of-life value (salvage less demolition)
For example, in a recent project an owner, through his construction manager,
direcfed the architect and engineers to design a steel building. The designers were
directed to design the most economical steel building and in a very short period of
time. With input from the construction manager and contractor, an economical
steel building was designed. But is this what the owner/user really needed? The
selection of a steel building was made without proper and timely input from the
designers. Let us look at all of the concerns that had t o be addressed after this
1. Cost (Must meet a specific budget.)
2. Total height restrictions (construction depth for steel-36 in, for concrete-
16 in)
3. Mechanical ducts must pass through structural members
4. Lead time
5. Construction during winter months
6. Noise transmission
7. Vibrations
8. Deflection
9. Drainage
10. Adaptability t,o design changes
Deckions were made before gathering, understanding, and coordinating infor-
mation. &ore effort was expended in justifying the decision than in making the
proper decision. Rather than working with a proper decision that fit the project's
needs, the designers were forced to make an improper decision work. This demon-
strates that proper information gatherin is vital to achieve better value for the
Value engineering is very powerful when the value engineer recognizes the im-
portance of timely information gathering. Following are some of the points that
must be observed:
1. Gather information in a timely manner.
2. Identify the people having state-of-the-art information.
3. Pursue the latest, appropriate documents.
4. Obtain detailed cost data.
People who are in a hurry sometimes make a common mistake. They believe
that they don't have time to look at a map for guidance. They are prepared to
take a risk of going in the wrong direction or missing their destination. They
sometimes just don't have enough time to do it right-but always manage to find
enough time t o do it over. Owners and users are better served when the designers
thoroughly understand the objective at the beginning.
Professionals rarely make a mistake if they know what is required in the first
place. Making decisions prior to gathering information is a gamble. Engineers are
generally eager t o jump to solutions. Once a solution is proposed, it is only natural
t o justify its validity. Recognizing this problem, VE stresses the importance of
information gathering. The job plan dot only places information gathering as its
first step but also encourages teams to spend most of the total time on this phase.
3.3 Written Assignment 3 b.1 b
1. Larry Miles gives five specific examples of situations where meaningful costs
are not readily available. Discusss one of these in relation to a problem you
have observed, and explain what could/should have been done to obtain the
necessary costs.
2. Briefly discuss a project familiar to you. State how the information-gathering
process could have been improved by using some specific techniques men-
tioned in this unit.
3. Name six generalities that often stop thinking in your organization.
4. Name three methods, covered in this unit, to prevent action blocking.
5. What specific types of data are obtained in public information meetings or
public hearings?
6. From your own work experience, select a project and list the types of infar;,
mation that should be collected for it.
Larry Miles created value engineering by asking the simple question:
What does it do?
He stressed that functions, not parts, should govern the selection of alternatives.
He pointed out that every component or service has a series of functions. The
ability t o satisfy various functions is the key to better value. The importance of
first selecting the right functions is illustrated by the following story.
A team of engineers at a VE course brought a coffee mug as their project for
a VE study. Their firm markets coffee mugs with various messages on the surface.
First, the team leader asked the questions:
"Is this a mug? ... or,
Is this a media on which greetings are displayed?"
In other words:
"What does it do?"
The fhctions are greatly different for the first two questions, either Contain
Liquid or Express Sentiment.' Both are needed functions for this coffee mug. Yet,
the team should understand which function dominates the business decision. This
team had to confer with its corporate-level executives to determine which was
the distinctive function. The corporate executives directed the team to explore
various possibilities for the function Express Sentiment. (You will learn in Unit 7
that Contain Liquid is a "basic function" and Express Sentiment is a "supporting
Defining functions and understanding them differentiates value engineering
from other cost-reduction techniques. Embracing the technique of function defi-
nition is the most difficult adaptation an engineer must make to become a value
engineer. It is hard to force yourself to do it. But when properly done, it enables
you t o understand the scope, goal and objectives of a project.
l hnct i ons will generally be in italics with initial letters capitalized when they appear in the
body of the text.
4.1 Reading Assignment
hnct i on Analysis: The Stepping Stones to Good Value, Snodgrass and
Kasi. Chapters 1 and 2
4.2 Study Notes
The most powerful tool of value analysis is function analysis. 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 functions relating t o the problems we
are trying to solve. Often beginning #A (value analysis) practitioners think that
it is only necessary to capture the general idea of the performance action involved;
often they are too lazy to exert the necessary effort to correctly identify all of the
functions. The student must be prepared to spend a great deal of%~Vme on this
lesson and on Unit 5 t o establish a sound foundation for the rernafncfc!r of this
The reading assignment for this lesson discusses the reasons for using functions
t o better understand the problems we hope to solve. The chapters also discuss that
function analysis is often misunderstood and resisted by people. It is essential that
you clearly understand what a function is.
A function is a required performance action described by
two words, a verb (active) and a noun (measurable), without
identifying a specific method of performing that action.
Read and understand the definition, and the words (See following.) used in the
Required + It's something that is necessary to satisfy the user or customer.
0 Performance action =+ "What it does," not "what does it."
0 Two words, a verb and a noun =+ Exactly two words are required, a v e x
plus a nown.
0 Active verb + Whenever possible use an active verb; this enhances clarity
and preciseness of the action to be performed. Try to avoid vague, passive
verbs such as "provide."
Measurable noun + We want to use measurable nouns so that we can es-
tablish exactly what amount satisfies the requirement. Support Load is a
function with a measurable noun; we can specify precisely what level of load
is to be supported-e.g., 5000 pounds. Enhance Appearance, on the other
hand, is a function with a noun that has no apparent definite measure; we
cannot precisely specify what level of "appearance" is acceptable.
Specific method + Don't use names of components and elements that are
part of the solution. Functions such as Support Pipe and Form Slab are
In general, a value engineering study is conducted with the following two ob-
1. improve performance, and
2. decrease cost.
Keeping this in mind, let us review a project. The project will be used as your
study project and learning tool throughout this course. It is a practical, real-world
example that each student must analyze with VA/VE tools and techniques. The
analysis proceeds stepby-step over several written assignments, and is designed to
improve your knowledge and understanding of value engineering.
You will be reviewing a proposed design for a campus sidewalk and conducting
a value engineering study to improve its value. Approach this project realistically,
as if it were a current proposal given to a value engineer (you) employed by a
"Yirm responsible for the total design of the project. Take particular note that this
project includes not only a bridge but also a walkway, retaining wall, embankment,
landscaping, etc.
This student project does not require any special civil engineering design in-
formation. It can be accomplished by any architect or civil engineer regardless of
his/her specific background.
A complete description of the project is given below and on the following pages.
The library and the student union building of a campus are to be connected
with a walkway for students and staff. As shown in Figure 4-1, the proposed
walkway had t o be designed to span a creek. See, also, Figures 4-2 and 4-3.2 The
high-water level of the creek is 715.00 feet. The top of the proposed sidewalk at
the bri ge hence, the top of the bridge) is at an elevation of 718.75 feet. The
Q (
bottom o w e bridge is at 717.00 feet. This will give a freeboard of 2 feet above
the high-water level. The elevation at the entrance of both buildings should be
maintained at 718.50 feet. Sidewalk between the bridge and the buildings will be
placed over fill.
A precast, prestressed concrete deckheam construction is proposed for the
pedestrian bridge. See Figures 4-2 through 4-4. Construction of the embankment
for the sidewalk is restricted on part of the south side due to the adjacent property
line. (A detailed investigation was conducted about the possibility of buying the
adjacent property; the owner and the engineer concluded it was not economically
feasible.) A retaining wall, as shown in Figures 4-5 and 4-6, is proposed to limit
the construction within the existing property line. A structured Bill of Material is
included in Unit 8, Exhibits 8-1-1 through 8-1-4.
he figures in this lesson are not necessarily drawn to scale.
Figure 4-1 General Plan: Campus Walk
Figure 4-2 Bridge Elevation
+- Bukolt Creek
Figure 4-4 Typical Section: Foot Bridge
Figure 4-5 Typical Section: Sidewalk, Embankment, Retaining Wall
Figure 4-6 Retaining Wall Elevation (Facing North)
The owners/users are a crucial factor in any project design. The more infor-
mation you have about them, the more you can increase the value of the project
t o them. Here is some data on the owners/users of the Campus Walk project.
Who Are the Owners/Users of ,the Campus Walk?
1. Students
2. Faculty and staff
3. Interior building maintenance staff
4. Exterior building and grounds maintenance crews
5. Security personnel
6. Administrative staff (management)
7. Visitors
What Do They Want?
1. Students. Direct, efficient access to all buildings. They consider any railing
or barrier as a nuisance for their activities.
2. Faculty and staff. A safe and wide access t o all buildings. They want the
walkway t o be convenient and secure. They also want the walk t o be archi-
tecturally compatible with the campus landscaping and buildings.
3. Interior building maintenance staff. Their main concern is that the walkway
be wide enough t o carry their equipment between buildings. The slope should
be gradual so that they can transport their equipment easily.
4. Exterior building and grounds maintenance crews. They prefer not t o have
too many bushes near the walkway. This may hinder snow removal and lawn
mowing. They also prefer to have a rather flat sidewalk slope to facilitate
snow removal. However, the slope should be sufficient to drain water. In
their opinion, steps should be avoided.
5. Security personnel. Security personnel would like the area to be well lighted.
They note that too many bushes closely placed may pose security problems.
6. Administrative staff (management). Their concerns are based on how well
the following issues are addressed:
(a) Safety
(b) Security
(c) Vandalism
(d) Accessibility for handicapped
(e) Convenience
a (f) Attractiveness
(g) Maintenance costs
(h) First cost
They want barrier-free access .for the handicapped. The walkway should be
wide enough to accommodate wheelchairs and should be flat; ramps should
be used instead of steps.
They also want the sidewalk to be such that it will discourage people from
walking on the lawn.
7. Visitors. Visitors, often first-time or infrequent users, require easy access
with clear identification of route and buildings. They also like safe and
attractive surroundings.
It is very important that you develop a thorough understanding of the project
because it will be used as a teaching tool in several units. It will help you un-
derstand functions and develop the Technical FAST (Function Analysis System
Technique) diagram in Unit 5 and a Task/Customer FAST diagram in Unit 7.
You will review the costs of a portion of the project and their distribution in
Unit 8. In Unit 10 you will speculate on other ways of performing the required
functions, and will be asked to compute the costs of the alternatives, compare their
performance, evaluate their worth, and select the alternative with the best value.
In the process of naming functions, the most common approach is to list all of
the components and labor intensive activities for a similar or preliminary project,
and then determine the functions of each component or activity. Figure 4-15
illustrates such a Component/Functions tabulation for the retaining wall of the
Campus Walk project.
Let us now analyze the retaining wall portion of the project for its functions.
Figure &@hows a simplified cross-section of the walkway including the retaining
wall. While examining this design and keeping in mind the project needs, we
can begin to identify the functions in Figure 4-15. We can easily decide that one
function of the retaining wall is to Resist Movement. Naming the function in
this manner clearly describes the functioqhe retaining wall must perform-resist
the potential movement of the embankment and walkway-without mentioning
the components that are part of the solution. We now continue by seeking other
1. Distribute Load. The vertical load of the wall must be distributed over a
large enough area of the soil to achieve acceptable support for the weight of
the wall. The labor, material, excavation, forming, etc. associated with the
lower horizontal footing of the retaining wall is part of the Distribute Load
function. See Figure 4-8.
2. Prevent Overturning. A horizontal force in the ground must be used t o coun-
teract potential forces tending to overturn the wall. To achieve this function,
additional strength is needed in the stem (using reinforcement, for example)
and the size of the footing must be greater. See Figure 4-9.
3. Prevent Sliding. Any tendency for horizontal sliding of the wall can be re-
duced by adding a shear key below ground. See Figure 4-10.
4. Overcome &ost (action). In order to avoid heaving, and unequal upward
movement or settling of the footing during freeze and thaw conditions, the
wall is extended 3.5 feet below the existing grade as shown in Figure 4-11.
5. Enhance Appearance. The top f the retaining wall is extended 6 inches
& above the ground, as shown in igure 4-12, in order t o hide the dirt and
otherwise improve the appearance.
6. Protect User. To protect pedestrians, the wall is raised an additional 3.5
feet as shown in Figure 4-13. (If this requires an increased foo?Tbg size, the
additional footing would also be associated with the function Protect User.
7. Minimize Maintenance. Reinforcement rods can be better protected and re-
ductions can be achieved in crack-inducing tensile stresses by increasing the
wall thickness, as shown in Figure 4-14. This reduces maintenance.
8. Relieve Pressure. Pressure due to soil water would increase the design load
over that for normal soil conditions. Gravel fill and a drain, as shown in
Figure 4-14, are added to drain the water and prevent such a pressure build-
The functions we identified above are primarily for the concrete. The alloca-
tions for reinforcing rods will be similar though not exactly the same. To determine
these allocations, identify the reasons for each part of each rod which is used. For
example, the reinforcing rod associated with the function Distribute Load will
extend well into the stem of the wall.
We now have a reasonable list of functions (perhaps you can improve on ig'
which describe the Campus Walk retaining wall:
Resist Movement
Distribute Load
Prevent Overturning
Prevent Sliding
Overcome Bast
Enhance Appearance
Protect User
Minimize Maintenance
Relieve Pressure
Some of the functions, such as Prevent Overturning are unique to the zetain-
ing wall. Other functions, such as Protect User and Minimize Maintenance occur
in other components of the Campus Walk. You must remember that functions
with the same name must mean the same thing for each component using them.
A function cannot have different meanings in the same project. An an exam-
ple, iEnhance Appearance means make the Campus Walk more attractive to both
pedestrians and observers. With regard to the retaining wall, this is achieved by
hiding the dirt; with regard to the bridge, this is achieved by painting and finishing
the exterior.
Written Assignment 4 follows Figure 4-15.
Property Line -*
/ Basic Retaining Wall -m I
Existing Ground 2
Figure 4-7 Basic Retaining Wall, Embankment, and Sidewalk
Figure 4-8 Retaining Wall with Footing Added
Property Line ->
::o:::o:::::i,:::p:::d::o: I
. . .
. . .
. . .
. . .
. . ,
. .
. . , , . .
. . ,
, . .
. . ,
, . .
, . .
. . , , . .
. . .
l l E l l ~ l E l l ~ l ~ l E
. .
. .
: ~ : ~ : l l El l ~ l E
UTE LOAD -->wh
Property Line - >I
..+:.t?.:.:.. : . : q. : o : . p
" / QQG
. .
. .
. .
. . ...
. .
. .
. . ...
(Crosshatched) ... ... . . . .
. .
. .
. . ...
0::: . .
. .
. .
. .
. . ...
, :#
I I ~ I ~ I B I ~ I ~ I E ::::$
Existina Ground 2
Figure 4-9 Retaining Wall with Enlarged Footing
Property Line - >I
kg Ground
Figure 4-10 Retaining Wall with Shear Key
Property Line ->
Figure 4-1 1 Retaining Wall with Extended Stem
Property Line ,->
- *
: ::
:' .
'. .'
: . . ...
. .
.. . ...
. .:.
... :
: . .
.. .
. .. : .
U ~ I ~ I ~ I ~ I ~ I E
U ~ I ~ I ~ I ~ I ~ I E . . l : ~ ~ m ~ m ~ ~
R e
Existing Ground . t~ ..
: . . ..:
Figure 4-12 Retaining Wall with Top Extended
Property Line -*
/ Sidewalk 1
Existing Ground
Figure 4-13 Retaining Wall with Top Extended Further
Property Line ->
- ?&na~mi am~m~
Existing Ground
(drain, gravel)
Figure 4-14 Retaining Wall with Greater Thickness and Drainage
Overcome Frost
~nhan& Appearance
3001SS: Concrete Stem
4001PP-4003PP: Concrete
I I Overcome ~r os t I I I
Resist Movement
4004PP-4006PP: Form
1 I Enhance Appearance I I I
Protect User
Minimize Maintenance
Resist ~oydment
I I protect user I 4 I
I 4010PP-4012PP: Reinforcement I Resist Movement I I I
4007PP-4009PP: Finish
Overcome Frost
Enhance Appearance
Minimize Maintenance
Enhance Appearance
I I Protect User I I I
1 4013PP-4015PP: Concrete I Distribute Load I I I
3002SS: Footing & Key
I I Prevent Overturning I I I
Minimize Maintenance
I Prevent Sliding I I
I Prevent Sliding I
4016PP-4018PP: Form Distribute Load
Prevent Overturning
4019PP-4021PP: Reinforcement
I 3022PP: Trees I Enhance Apuearance I I
. -
Distribute Load
Prevent Overturning
Prevent Sliding
3004PP: Drain
2004s: Landscaping
Relieve Pressure
Figure 4-15 Retaining Wall Functions
3023PP: Evergreens Protect User
4.3 Written Assignment 4
1. Assume you must explain "functions" to your management. Write a short,
clear, well-organized essay defining what a function is and explaining why it
is useful.
2. Which of the functions of the retaining wall are expressed in two-word mea-
surable terms?
3. Which of the functions of the retaining wall are not expressed in two-word
measurable terms?
4. Clearly explain why component names are unacceptable as function nouns.
5. Must each function be precise? Explain your answer.
6. Provide a complete function identification for the embankment of the Cam-
pus Walk. (use the forms provided in the packet of additional materials.) It
is essential that you consider everything. Keep in mind all of the considera-
tions involved in all aspects of the embankment.
NOTE: As you answer this question, we recommend that you follow the
approach used with the retaining wall. You must look at everything and
concentrate on what each element does. You cannot just copy the retaining
wall functions; that answer would be incorrect and unacceptable.
A thesaurus, a dictionary, 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). Keep in mind that value analysis puts emphasis on func-
tions that can be quantified (measured) such as Discharge Water and Receive
Load. These have measurable nouns. Measured values might be, for example,
3h@lons per minute or 7,000 pounds.
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 proceed-
ing with this unit, carefully review your corrected Unit 4 along with
the new material sent to you. Make absolutely certain that you under-
stand why the functions are shown as indicated in the new 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 misunderstood
that you may not receive a grade on your first attempt. A grade of
C / R ~ is not uncommon since we find that most students can improve
their understanding by trying a second time.
In Unit 4 you determined the functions of the embankment for the Campus Wall.
In this unit you will arrange the functions in a hierarchy called a FAST (Functirn*
Analysis System Technique) diagram. A FAST diagram shows the specific re-
lationships 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 technically-
oriented. Each of these types of FAST diagram should be mastered by the serious
value engineering student; the problem at hand determines which is the better
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
the campus walk rather than only its embankment or retaining wall (excegt as a
repair). Therefore a Task FAST diagram would be suitable for designing the total
'c/R, or C & R, means 'Correct the incorrect parts of the unit and &submit for grading.'
The only grade that is recorded for a unit is the last one received.
campus walk (which would contain all its components), but would not be suitable
for a,.value analysis study to design only the embankment (a sub-project).
Technical FAST diagrams are primarily used for single components, small parts
of larger projects and processes (such as construction processes). The next two
units are specifically directed to Technical FAST.
5.1 Reading Assignment
finction Analysis: The Stepping Stones to Good Value, Snodgrass and
Kasi. Chapters 3 and 4
5.2 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 hierarchical 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, in the textbook, summarize the evolution of the FAST diagram.
Carefully study Sections 3.6 through 3.8. A clear understanding of the philos-
ophy 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.
Following is a detailed explanation of the elements of a Technical FAST diagram
and an%+mple of the rationale of constructing such a diagram for the retaining
wall discussed in the last unit.
5.2.1 The Technical FAST Diagr m
A Technical FAST diagram is a picture of all the functions of a component's
subsystem (process, etc.) showing their specific relationships to each other and
clearly showing what the subsystem 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 completed FAST diagram is the general representation of a result achieved
by the Functional Analysis System Technique. We will use Figure 5-1 to point
out the features of a completed FAST diagram and introduce its terminology. We
will be using the retaining wall exarnfle to help illustrate how a Technical FAST
diagram 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 retaining wall. The region betwe&these lines
thus represents the scope of the problem under study. It includes all the 'functions
which the subsystem itself performs. Each function appears only once. There is a
left (or HOW) scope line and right (or WHY) scope line. Two additional functions,
one outside each scope line, are also required.
5.2.2 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 which are absolutely
necessary in order t o achieve specifically what the user (customer) wants done.
All other functions are called supporting functions.
Once the critical path is determined, the functions within the scope of the
project fall into two major categories: critical path functions and supporting func-
tions. In addition, there are two external functions, the higher order function qcl,
the causative function.
5.2.3 Critical Path Functions
The functions on the critical path must occur in a particular order-from the
highest level to the lowest level or, as shown in Figure 5-1, from left to right. The
highest level function within the scope of the problem or project is called the basic
function. All other critical path functions within the scope of the problem are
called secondary functions.
5.2.4 HOW-WHY Questions
The key t o developing a correct and useful FAST diagram is the asking of HOW-
WHY questions. One asks both a HOW question and a WHY question. The
arrows beneath the HOW and WHY labels in Figure 5-1 indicate the direction to
look for the respective answers.
Technically Oriented FAST Diagrq'
Higher Order
Function 1
I Design I
Functions u
that happen / t
"All the Time" :
,- - - Critical Path of Functions
Functions that happen
"At the Same Time"
and/or "Are Caused by"
some other function
WHY? *
These questions are used to determine (1) which functions appear on the critical
path, and (2) the level at which they occur. Let's illustrate the use of this powerful
and indispensable tool by using the questions t o determine which of a pair of
adjacent functions is the higher level function.
Note: The WHEN question relates to the causative function. When that action
occurs the WHY is answered by the required secondary function to the left of the
right scope line. The HOW question to this function must also be answered by
the causative function.
Ask questions as follows, putting the actual functions within the quotation
The HOW question: HOW is "a higher level function" accomplished?
Response: "A lower level function."
and, conversely, " 7 1
The WHY question: WHY is it necessary to "a lower level function?"
Response: "A higher level function."
When the answers make sense, the pair of adjacent functions is arranged in the
correct order.
Let's use the retaining wall as a specific example. Consider the pair of functions
Distribute Load and Resist Movement. See Figure 5-2 in this Course Guide. We'll
apply the HOW-WHY questions t o verify that Resist Movement is a higher level
function than Distribute Load.
The HOW question: HOW does it Resist Movement?
(Or, HOW is Resist Movement accomplished?)
Response: Distribute Load.
The WHY question: WHY is it necessary to Distribute Load?
(Or, WHY is Distribute Load needed, 1-9
or necessary?)
Response: Resist Movement.
It is clear that the retaining wall, when designed correctly, can Resist Movement
of the soil.
Since the answer to both questions is logical, Resist Movement is a higher level
function than Distribute Load and they are, correctly, a pair of adjacent functions.
Note that, in the questioning, the functions were used in their exact two-word
form-as they are listed for the retaining wall. It is highly recommended that
you use the same procedure. Although it may not always be pleasing in the
grammatical sense, you will develop the important ability to think in terms of
exactly stated functions. This is a crucial ability for successful value analysis.
Until you develop it, your mind will have a tendency to digress from the value
analysis approach into time-wasting pitfalls.
When the critical path is complete and correct with each function at its proper
level, each and every possible pair of adjacent functions will provide the proper
response to a HOW question and its converse WHY question. 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.
5.2.5 The Higher Order Function and the Basic Function
The higher order function lies just outside the scope of the problem to the left of
the left hand scope line. It satisfies a need of the user; it is the reason behind why
the project is done. It occurs next to the basic function, which is the highest level
function within the scope of the project. The project does not, of itself, perform
the higher order function.
The higher order function answers the WHY question of the basic function. In
*-turn, the basic function answers its HOW question. Let's use the retaining wall
example to illustrate this.
Assume the basic function for the retaining wall has been identified as Resist
Movement. Looking for a higher level function would lead to:
Question: WHY (is it necessary to) Resist Movement?
Response: Prevent Encroachment.
and, conversely,
Question: HOW (do we) Prevent Encroachment?
Response: Resist Movement.
5.2.6 Secondary Functions and the Causative Function
Secondary functions are all functions on the critical path at a lower level than
the basic function. An example is Distribute Load, as determined earlier. The
level of each of these functions is, as you would expect, determined by appropriate
HOW -@THY quest ions.
You ~ h t also determine the causative function. This function lies beyond the
WHY (or right) scope line. Like the higher order function, it is not a function
within the scope of the problem. In the retaining wall example, Figure 5-2, the
causative function is Generate Load; it id tifies the external force of the embank-
ment soil. This function creates the need r or a solution. If the ground didn't apply
pressure we wouldn't have an encroachment problem.
In summary, the critical path is a path of functions which lies entirely within the
scope of the problem. It starts with the highest level critical path function-the
basic function-and ends with the lowest level function. The level of each function
is determined by asking HOW - WHY questions. Two additional functions which
are not part of the critical path for the problem are utilized, one beyond each scope
5.2.7 Supporting Functions
~undtions within the scope of the problem which are not critical path functions
are called supporting functions. They are subdivided into three broad classes:
1. Same-time or caused-by functions (below the critical path in Figure 5-1)
2. Design-objective functions (above the critical path at the left in Figure 5-1)
3. All-the-time functions (also above the critical path, but at the right, in Fig-
ure 5-1)
Generally, they are classified by asking appropriate questions.
Same-time or caused-by supporting functions can usually be identified by ques-
tions similar to the following. As before, one would use actual functions inside the
quotation marks.
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Same-time question: Does "a supporting function" happen at the same
time as "a critical path function?"
Example question: Does Overturn Structure happen at the same
time as Resist Movement.
Example response: Yes, when we use a wall to Resist Movement
we, at the same time, cause the potential
problem of Overturn(ing the) Structure.
We can thus classify Overturn Structure as a same-time supporting function
related to Resist Movement.
Caused-by question:
Is "a supporting function" caused by
"a critical path function?"
Example question: Is Prevent Overturning caused by
Resist Movement?
Example response: Yes, Resist Movement makes it necessary
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to (causes) Prevent Overturning.
We can thus classify Prevent Overturning as a caused-by supporting function
related t o Resist Movement. Since both Overturn Structure and Prevent Overturn-
ing can be closely related to Resist Movement, they would appear on the FAST
diagram just below Resist Movement anddvould be connected to each other and to
Resist Movement by a line. Since Prevent Overturning is the function for which we
spend money to counter the unwanted function Overturn Structure, we normally
would only include Prevent Overturning on the FAST diagram. In general, all
same-time and caused-by functions are drawn on the diagram, either individually
or in groups, 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 require-
ments placed on the project by, for example, engineering or other considerations.
The retaining wall does not have to look pretty to accomplish its basic purpose, but
a requirement of the architect (and customer) is Enhance Appearance. Therefore,
Enhance Appearance is a design-objective function. Design-objective functions are
drawn as a group of related functions located above the critical path and near the
HOW scope line as in Figure 5-1. They are not connected to the critical path.
Some value specialists elect to connect the functions within this group with lines.
All-the-time functions are those which assure both the dependability of the
product and the satisfaction of the user. For the retaining wall, such functions as
Protect User and Relieve Pressure are all-the-time functions. Like design-objective
functions they are drawn as a group of related functions above the critical path,
but near the WHY scope line. They are not connected to any specific function
on the critical path. Some value specialists also choose to connect the functions
within this group with lines.
5.2.8 Developing the FAST Diagram
A stepby-step procedure provides an organized approach to develo ing FAST
diagrams. Basic thought processes shape the diagram by seeking app opi at e re-
sponses to questions relating functions. These were described earlier and will be
used mainly in Steps 4 and 5. Some of the other steps in the procedure are quite
mechanical. Including them makes it easier for you to devote maximum effort to
the thought processes in an efficient manner. As you proceed, you will find that
some or all of the following may occur: moving back and forth between steps;
adding, modifying, dropping, and reclassifying functions; and rearranging func-
tions. For example, the higher order function is often not identified until Step 4.
The list of steps follows.
1. List the components and their functions. Figure 4-15 for the retaining wall
provides an example. Satisfy yourself that the list is as accurate as you can
make it at this time before proceeding to Step 2.
2. Write each function on a card. The cards make it easy to reposition functions
as the diagram is developed. A good size for the cards, or 3M post-itTM note
pad, is 2" x 3". Make only one card for each function. Even if a functiog*
appears more than once on your list, it only appears once on the FAST
3. Sketch a skeleton FAST diagram. Use a large sheet of paper, such as flip
chart paper. Figure 5-1 is a good guide for your skeleton diagram. It will be
a helpful framework for positioning your function cards on the paper.
4. Establish the critical path functions. This is best done by first selecting the
most probable basic function and asking HOW- WHY questions to identify
the adjacent secondary function and higher order function. Then continue
working toward lower level secondary functions. Often you will reshuffle func-
tions and rearrange their order. Finding the critical path will take time. It is
not established until each function on it satisfies completely its appr9priate
HOW-WHY questions.
The higher-order function and the causative function are also normally es-
tablished in this step.
5. Establish the supporting functions. This is done by determining relationships
;.through appropriate questioning. We suggest you proceed in the following
order: same-time and caused-by functions, design-objective functions, all-
the-time functions.
6. Make a final check. Check your diagram completely to insure it is the best
possible for your project.
7. Draw the FAST diagram. Now that the diagram has been established and
checked, it can be drawn in a form suitable for future use. Figure 5-1 is a
good guide.
Figure 5-2 is the FAST diagram for the retaining wall. Study it closely and
visualize how the stepby-step process was applied. Perform Step 6 on it. Use it
t o help develop confidence in your understanding of FAST diagrams.
5.3 Written Assignment 5
1. Using the function list returned with your written assignment for Unit 4,
construct a FAST diagram for the embankment of the Campus Walk. You
may find that you need additional functions to complete the FAST diagram.
2. Explain why you selected the following functions. Use the HOW-WHY
(a) Higher-order functions
(b) Basic function
(c) Each of the remaining critical path functions
(d) Causative functions
3. Eqplain why you put the scope lines where you did.
4. Explain how you decided upon at least one of each of the following functions.
(a) Same-time or caused-by function
(b) Design-objective function 4
(c) All-the-time function
5. Assume that you must explain to your management about FAST diagrams.
Write a short, clear, well organized essay defining what a FAST diagram is
and explaining why it is useful. (At this point in the course we suggest that
your explanation encompass only the Technical FAST diagram.)
6. Many people who are thought to be proficient in value analysis can neither
develop good functions nor construct useful FAST diagrams. Suggest some
reasons why this might be so.
Experience has shown that it is not reasonable for the beginning value analysis
student t o expect t o master function analysis by merely reading the rules and
doing one or two examples. Larry Miles recognized this difficulty 40 years ago and
recommended that the serious practitioner spend a couple of years in applying the
principles while working with the normal situations that affect value alternatives.
One of the best ways to supplement this experience is to study case histories of
value studies. This unit is devoted to the analysis of real VA studies and the role
that good function analysis played in achieving good results.
6.1 Reading Assignment
hnct i on Analysis: The Stepping Stones to Good Value, Snodgrass and
Kasi. Chapter 5, (Chapters 6 and 7 are optional)
6.2 Study Notes
This unit will expand your understanding of Technical FAST diagrams. The case
study in Chapter 5 is about value engineering the design and construction of
concrete columns. The design and construction processes were studied to optimize
column design and minimize construction cost.
Section 5.2 outlines the column components that were studied by the design
team. The three major elements t o consider for a concrete column are concrete,
reinforcement, and formwork. Although the study shows that one-third of the
total cost is for formwork, designers typically pay little attention t o this factor.
Yet, from the perspective of the 100-year life of a building, one-third of the total
cost is for just one item-formwork, the life span of which is at most a \?reek or
FAST diagrams can be utilized t o understand any kind of process. In this case
study, the function analysis of the construction process of a concrete column was
done in conjunction with the analysis of the design process. Section 5.3 presents
the designer's approach to column design.
Figure 5.3, in the textbook, is the FAST diagram of the column design process.
The critical path shows all the functions or steps of a column design. The higher
order function of this process is Design Column. The four steps needed to design
a column are as follows:
1. The engineer determines the shape after reviewing the architectural layout
of a floor and based on the guidelines set by the architect. Preliminary
dimensions usually influence or modify the initial shape.
2. Once the shape is determined, the loads t o be carried are computed.
3. Several column sizes are tested to see which one, in the designer's judgment,
best fits the needs.
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4. The design of the column is completed with the selection of its shape, the
concrete strength, and the number and size of reinforcing bars.
The functions that represent the above steps are shown in Figure 5.3. Note
that the function Compute Load is shown under the function Size Column. These
two functions will be performed together. Compute Load is a supporting function
that happens at the same time as Size Column. Under the function Determine
Shape, three functions are listed: Calculate Dimension, Test Dimension, and Re-
vise Dimension. These are functions that are required t o Determine Shape and
are called same-time or caused-by functions.
For a given floor, design loads of the columns vary. Theoretically, columns
for the same floor could have different sizes and different concrete strengths. In
practice, when loads are computed, the designer attempts t o standardize size and
concrete strength. This allows repeated use of a column design which reduces
errors and cost. In the design process, Repeat Size and Coordinate Strength are
functioqs that must be considered. They are known as all-the-time functions.
wh?e&ing all of the above steps, the designer tries to Satisfy Decor and
Minimize Cost of the column. These are his design objectives. They are shown in
their proper place in the FAST diagram labeled Figure 5.3.
Section 5.5 develops a similar FAST diagram for the process of constructing
a column. Given the design drawings shdwing the column, its dimensions, rein-
forcement, and concrete strength, the contractor's job is to construct the column
in a minimum amount of time while also showing concern for his workers. The
required functions are shown in Figure 5.7.
The critical path of the FAST diagram for a circular column differs considerably
from that for a rectangular column. For circular columns, the function Set Side
forms does not require any supporting functions. But for rectangular columns, the
Set Side function forces the performance of the three functions Tie Side, Reinforce
Side and Reinforce Corners. These additional functions increase the cost of a
These two FAST diagrams (Figures 5.3 and 5.7) are the result of asking the
quest ion
"What does it do?"
about the design and construction process. The next step is to ask the question
"What should the design/construct column process do?"
Figure 5.4 shows a FAST diagram that optimizes the column design/construct
process. This coordinates the design effort, construction effort and constructability.
Section 5.4 expands the concept of function analysis to include the function
Decrease Construction Cost. In Unit 7 the function cost concept will be discussed
in detail.
Sections 5.4.1 through 5.4.3 show how three functions- Vary Size, Vary Strength,
and Vary Shape- affect the cost of a cgllumn. Section 5.4.4 summarizes the results.
Technical FAST diagrams are best suited t o the design process. They are
helpful whenever the focus is on a micro element of a major project. Technical
FAST diagrams, however, do not address the wants and desires of the owners/users.
These are very important. Unit 8 will show how functions reflecting o*&w's/user's
concerns are included in another type of FAST diagram.
6.3 Written Assignment 6
1. Briefly but clearly explain why the Technical FAST diagram is the correct
type of FAST diagram for the following studies. (Consider the user.)
(a) Column design
(b) Embankment of the Campus Walk
2. In the Technical FAST diagram of Figure 5.7 explain why the function Re-
inforce Side is considered a caused-by function instead of an all-the-time
3. Explain clearly why the function Expedite Construction is located where it
is on the Technical FAST diagram of Figure 5.7.
4. (a) Explain what is meant by the function Minimize Errors (Figure 5.7).
(b) Why is this an important function?
(c) Why is it located where it is on the FAST diagram of Figure 5.7?
5. Discuss why the function Vary Strength (Figure 5.4) probably offers an o p
portunity for the VE team to improve value.
6. Discuss your FAST diagram for the embankment of the campus walk. What
do you think you can do to improve it? (Consider any observations made by
the instructor in your answer.)
Task-oriented (or Customer-oriented) FAST diagrams focus attention on the user's
point of view, stressing the importance of the user's needs. In addition to the task
and the basic functions, this system devotes more time to the supporting functions.
The following supporting functions are used to provide four major categories for
developing additional, more specific, supporting functions.
1. Assure Convenience
2. Assure Dependability
3. Satisfy User
4. Attract User
Using a building as an example, these supporting functions are easily under-
stood. :Structural engineers design the building for its basic function and with
a heavy &hphasis on the supporting function Assure Dependability. Mechanical
engineers and electrical engineers pay more attention to the supporting functions
Assure Convenience and Assure Dependability. Architects conceive their ideas
to satisfy both the basic function and th supporting functions Satisfy User and
Attract User.
7.1 Reading Assignment
Function Analysis: The Stepping Stones to Good Value, Snodgrass and
Kasi. Chapter 8
7.2 Study Notes
The starting point for Task FAST is similar to what you have already learned in
Units 3 through 6. The differences are in the format (page 109 and Figure 8.1 in the
text) and the classification of functions. The emphasis is on using the customer's
language or the "voice of the customer."
Note that only one scope line is used. It separates the task function of the
total product from the product's primary functions. The primary functions are
divided into basic and supporting functions. They are arranged in a column to
the right of the scope line with the basic functions forming the upper part of the
column, and the four pre-defined supporting functions appearing below them. All
remaining functions of the product are called secondary functions and are arranged
to the right of the primary functions. Each secondary function relates directly to
a primary function or another secondary function.
In general, a Task FAST diagram 4 developed by identifying all required func-
tions and arranging them in the format just described. Separating the basic func-
tions from the other functions is extremely important and involves input from
all parts of the organization. This input comes from the team ~ e ~ b e r s , or is
elicited from various parts of the organization by the value specialist,'to%erify the
Learn the definitions of each of these function classifications: task, basic and
The task function (or task) is that function which fulfills
or satisfies the need of the owner/user. It is the function which
makes the basic and supporting functions necessary.
The basic functions are those functions which are essential
to the performance of the task. The product, system, etc., will
not work without the basic functions.
The supporting functions are not essential to the perfor-
mance of the task but are functions which are extremely im-
portant in building customer acceptance and in selling the
product or service. The four primary supporting functions are -"*
Assure Convenience, Assure Dependability, Satisfy User, and Attract
Additional (secondary) supporting functions are grouped according to the four
major categories by using the guidelines on pages 112-113 of the text. Obviously,
the appropriateness of a guideline will depend on the product or system. Guidelines
appropriate for a building, for example, may not suit a vacuum cleaner. Some
additional guidelines are suggested below.
1. Assure Convenience. Any function that will
make it convenient to use (e.g., functions related to spacial relationships
in a building).
2. Assure Dependability. Any function that will
reduce maintenance cost.
protect the user from unfavorable natural conditions (e.g., from wind
or cold).
3. Satisfy User. Any function that will
e make it comfortable to live in or to use (e.g., by installing an air condi-
4. Attract User. Any function that will
fulfill all of the aesthetic expectations of the owner/user. (This is sub-
jective and requires an extensive search for, and openness to, the wants
and desires of the owner/user.)
7.2.1 Developing a Task-oriented FAST Diagram
A general plan for developing Task/Customer-oriented Fast diagrams is outlined
in the following six steps.
1. Select a subject for Task/Customer FAST diagramming using the following
(a) It must be a product or service for which a customer can be defined and
for which the customer's attitudes can be described.
(b) An expert source must be available for accurately defining the functions
of the product.
2. Identify all functions performed by all parts or elements of the project (or
all elements of the service, system, or procedure). Simply ask What does
it do? and answer with one verb and one noun- that is, with a function.
Continue until functions are found for everything it does.
(a) lyhe verb should be demonstrable on a nonverbal level.
(b) The noun should, where possible, be a parameter of measurable quan-
NOTE: In defining functions, maintain the same frame of reference. That is,
do not allow yourself to slip from what the item does to what the item's user
Record each function on its own card, or use a 3M post-itTM note pad. Be
sure there is a card for each of the four primary supporting functions. Display
the cards so that all the functions are always visible to you.
3. When all functions appear to have been defined, start the diagram by choos-
ing the one function in your display that appears to be the task function and
place it on the left of the diagram.
Add a note above the task, saying "Task fulfills need."
4. Develop the vertical column (the primary functions) just to the right of the
task. First form the bottom of the column from the four primary supporting
functions. Then select the primary basic functions, locating them on the
diagram to form the top portion of the vertical column. The primary basic
functions precisely answer the question,
"HOW does it (task function)?"
(An example question for a vacuum cleaner with the task function Clean
Surface is the first line of Section 8.4.)
5. Develop the lower level structurgj the secondary functions to the right of the
primary column, by asking of each primary function the question,
"HOW does it (a primary function)?"
(An example question for a vacuum cleaner's primary functionhdeanove Dirt
leads to three secondary functions in Section 8.4.)
If the answers already exist on the cards you developed in Step 2, place the
cards on the diagram to the right of the function being expanded. If not,
write them on new cards and place them on the diagram.
Complete the diagram by expanding it to the right until each string, or
branch, of extended functions reaches a point where cost can be clearly allo-
(Example partial diagrams for a vacuum cleaner are Figures 8.5 and 8.6.)
6. To branch to the right, two or more functions must be found to answer the
HOW and WHY question. If only one is found do not branch and assume
that the performance of the one function is included in the higher order
function from which the one function branched.
7. Verify the structure of the completed diagram by moving from right to lek,
(toward the task function) asking of each function the question,
"WHY does it (a function)?"
The answer must be supplied by the function immediately to its left.
(Here are two example questions based on Figure 8.5.
(a) WHY does a vacuum cleaner Loosen Dirt? Answer: To Remove Dirt.
(b) WHY does a vacuum cleaner Remove Dirt? Answer: To Clean Sur-
NOTE: For steps 5 through 7, the response to either the HOW or the WHY
questions must completely answer the question with no conditioning phrases to
bridge the gap. If either question is not completely answered by the function
already displayed, either an intermediate function is missing or the function defi-
nition is incorrect.
7.2.2 General Instructions for Developing Task-oriented FAST
; . Diagrams
The purposes of a FAST diagram are (a) to furnish a communication link among
experts involved in solving the problem, and (b) to provide a method for forcing
the correct function definitions in verifiable and repeatable form. Here are some
general guidelines to keep in mind when developing a Task FAST diagram.
1. Use both a thesaurus and dictionary.
2. Do not discard function definitions that initially appear incorrect or unusable.
Write new ones, but retain questionable ones until the diagram is complete.
Discard the questionable ones only after you have determined their functions
are either already displayed on the diagram (even though worded differently),
or they are clearly not required.
3. Keep expanding to the right until the answer to a HOW question describes
hardware, and cost can be allocated.
4. Verify the diagram by moving from the extreme right to the left, checking
that the answer to each WHY question is the function at its left.
7.3 Written Assignment 7
Note: Questions 1 and 4 below may be combined on one Task FAST diagram.
1. Construct the task and primary basic functions portion of the Task FAST
Diagram for the Campus Walk project.
2. Explain why you selected the following functions. Use the HOW-WHY ra-
(b) Each of the primary basic functions
3. Identify all of the secondary supporting functions for the Campus Walk. Your
answer should be submitted in a f@m similar to Section 8.6.1, but should
also include the basic functions with their supporting functions.
You may use the present tense such as "it is safe for a pedestrian t o cross"
rather than "it should be safe for a pedestrian to cross."
4. Do a complete Task FAST diagram for the Campus Walk similar t o that
illustrated in Figure 8.6 in the textbook.
5. Discuss what determines when you stop asking HOW to a given branch of
your FAST diagram.
6. What are the advantages of the Task FAST diagram.
When a project is planned, various interest groups influence the si$! +ape, and
type of structures. Various components are added, modified, enlarged, or reduced
t o fulfill their needs, wants, desires, and requirements. Sometimes certain functions
cause a major increase in cost. Owners and users may not be aware of the extent of
spending for certain desires. One of the reasons is that the cost of a certain function
may be spread among many components. The next step in the information phase
is t o allocate the cost t o these functions. Function cost allocation is a logical,
systematic, detailed, and arithmetic activity.
8.1 Reading Assignment
Function Analysis: The Stepping Stones to Good Value, Snodgrass and
Kasi. Chapter 12 (give special attention to Section 12.6), Chap
ter 9, Section 9.5.1
8.2 Study Notes
During information gathering and analysis, the team develops a thorough under-
standing of the needs and requirements of the project. By naming and classifying
functions the understanding of all components is enhanced. The next step is to
estimate the cost of the project. The cost of a total project does not indicate the
distribution of cost to various needs and requirements. Chapter 12 of the textbook
explains the concept of the function cost. Allocating the cost of each component
t o various functions is the way one can answer the question:
"How much does it cost?"
By allocating cost to various functions, you can understand the parts or com-
ponents. For your written assignment in Unit 7, you were asked to develop the
customer FAST diagram of the campus walk project. Do not proceed with the
Unit 8 written assignment until you receive the corrected written assignment for
Unit 7. It will be returned with a Task FAST diagram to be used for the Unit 8
written assignment.
We would normally allocate all of the costs for the campus walk project as an
example for this unit. However, it is a great deal of work to allocate all of the costs
on a project this size. As a teaching assignment, we will work with only a small
portion of the campus walk project: the retaining wall. Review Units 4 and 5 to
refresh your memory of the campus walk project, and specifically, the retaining
wall. You will have to address yourself t o all of the cost elements that relate to the
wall which include the labor, material and overhead for the concrete, reinforcing
rod, formwork, etc.
Figures 8-1 through 8-6 identify the various components of the campus walk
with assigned part numbers. These part numbers are used in association with
Exhibit 8-1, Structured Bill of Materials, and Exhibit 8-2, Costed Bill of Materials.
The structured bill of materials describes each subsystem (SS) and each cost
component (PP) that goes into it. Level one is the entire project-campus concrete
walk and bridge. Level two subsystems are the retaining wall (2001SS), line 2,
Exhibit 8-1-1, shown in Figure 8-5; sidewalk on grade (2002SS), line 4, Exhibit
8-1-2, shown in Figure 8-3; and sidewalk on bridge (2003SS), line 20, of Exhibit
8-1-2, shown in Figure 8-3. The landscaping (2004SS), line 1, Exhibit 8-1-4 is
shown on the general plan Figure 8-1.
The part description is followed by quantities and purchase cost per quantity
(cubic yards, lbs, square feet, etc.). The actual unit of the component (PP) is
shown on the right under "involves" and the subsystem into which the component
goes is under the heading "part of."
The costed bill of material (Exhibit 8-2) lists the part numbers in ascending
order with all of level 2s then 3s and finally 4s in groups. The "goes into file,"
exhibit 8-3 is shown in pairs of 4 digit numbers. The number on the left is always
a subsystem (SS) and the one on the right is the component which goes into the
subsystem. The highest level and number (SS) is at the top of the "goes into file"
and the number t o its right is one of the components which make up the subsystem.
The highest SS is 3024SS embankment and it contains three components: material,
labor, end overhead.
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8.3 Determining Function Cost-Example
We will use the stem portion (3001SS) odthe retaining wall as our example for the
allocation of costs t o functions, Exhibits 8-4 and 8-5. The retaining wall is shown
in Figure 8-5. Figure 8-7 shows one basic function and five supporting functions in
the stem. The unit of measure for the concrete is cubic yards. When looking for
ways t o allocate material, we can consider any unit of measure used in calculating
the cost of the material, in this case concrete. Although the quantity of concrete
for the stem is 86 cubic yards the dimensions are in feet. We know that 86 cubic
yards is equal to 2322 cubic feet.
Now look at the section of the retaining wall designated as firnish Barrier. We
can use any combination of ratios of length, width and thickness of the retaining
wall to determine how much of the total cost is used to firnish Barrier. The
indicated width is 8 in. out of 12 in. The height is 3 ft 6 in but the total height of
the stem varies as shown by the elevations. We know the total volume of concrete
and we can calculate the average stem height as folows:
width x length x height = 2322
1 x 245 x height = 2322
height = 9.478, say 9.5 feet
Now we can set up two ratios to determine how much of the concrete cost is
used t o hr ni s h Barrier (0411). We will use commas t o indicate numerators and
to obtain a percent of the cost.
E denominators and assume the decima results of each ratio are multiplied together
8 in, 12 in, 3.5 ft, 9.5 ft = .245 -*
.245 x 4799 = $1176
Exhibit 8-6 shows how each of the five supporting functions in the stem are set
up in brackets to determine the individual function percent of the concrete cost.
The first number is the function number, the first ratio is the width and second
ratio is the height. Each percentage is shown in the function cost detail, Exhibit
The totals for each function are shown, and the percent shown is the percent
of the cost of the stem.
The written assignment for Unit 8 follows Exhibit 8-8-2.
Figure 8-1 General Plan: Campus Walk
Figure 8-2 Bridge Elevation
Figure 8-3 Bridge Plan
- G Sidewalk
Figure 8-4 Typical Section: Foot Bridge
T/Walk Varies (71 8.75 at H. P.)
Property Line ,-d
&-On 4 '-0"
(reinforced concrete)
Exhibit 81-1 Page 1: Campus Concrete Walk and Bridge
Exhibit 8-1-2 Page 2: Campus Concrete Walk and Bridge
Exhibit 8-1-3 Page 3: Campus Concrete Walk and Bridge
Exhibit 8-1-4 Page 4: Campus Concrete Walk and Bridge
1001-SS CONCRETE WALK 1.000 101647 0 0 101647
2001-8s RETAINING WALL 3.000 55099 0 0 55099
'4002-SS SIDEWLK ON GRADE 1.000 26564 0 0 26564
2009-SS SIDEWALK ON BRGE 1.000 12984 0 0 12984
2004-SS LANDSCAPPING 1.000 7000 0 0 7000
3001-ss CONCRETE STEM 1.000
3002-SS FOOTING & KEY 1.000
3003-8s EARTHWORK 1.000
3006-PP P ~ F PIPE OVRHD 270.0
3007-8s SLAB 1.000
3011-PP HANDRAIL MATERL 158.0 790 0 0 790
3012-PP HANbRAIL LABOR 158.0 1580 0 0 1580
Exhibit 8-2-1 Page 1: Costed Bill of Materials
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3013-PP HANDRAIL DVRHEAD 158.0t 632 0 0 632
3014-SS PRECAST DECK BM 1.000 4107 0 0 4107
3015-SS ABUTMENT WALL 1.000 4541 0
>.,! &
3016-SS ABUTMENT FOOTING 1.000 568 0 0 868
3037-SS EARTHWORK 1.000 3 R 8 0 0 308
3018-PP RIPRAP 10.00 6 0 0 0 60
303 9-PP RIPRAP LABOR 10.00 120 0 0 120
3020-PP RIPRAP OVRHEAD 10.00 4 8 0 0 4 8
3021-PP NAME PLATE 1.000 150 0 0 150
3022-PP TREES 3.000 1800 0 0 1800
3023-PP EVEROREENS 26.00 5200 0 0 6330
3024-SS EMBANKMENT 1.000 5566 0 0 5566
4001-PP CONCRETE MATERL 86.00 4799 0 0 4799
4002-PP CONCRETE LABOR 86.00 1054 0 0 1054
4003-PP CONCRETE OVERfID 86.00 421 0 0 421
4004-PP FORM-MATERIAL 5102 535'1 0 0 5357
Exhibit 8-2-2 Page 2: Costed Bill of Materials
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4006-PP FORM OVERHEAD 5102 6939 0 0 6939
4007-PP FINISH MATERIAL 3430 058 0 0 858
r h , 4008-PP FINISH LABOR 3430 858 0 0 858
4009-PP FINISH OVERHEAD 3430 343 0 0 343
4010-PP REINFORCEMENT 8149 856 0 0 856
4011-PP REINFORC LABOR 8149 2852 0 0 2852
4012-PP REINPORC OVRHEAD A149 12 2 2 0 0 1222
4013-PP CONCRETE 61.50 3432 0 0 3432
4014-PP CONCRETE LABOR 61.50 4 7 5 0 0 4 7 5
4015-PP CONCRETE OVRHICAD 61,50 190 0 0 190
401 ~ ~ P ~ F D R M MATERIAL 5 18.0 513 0 0 5 13
4017-PP FORM LABOR 538.0 11 29 0 0 1129
4019-PP REINFORCEMENT 4356 4 !i7 0 0 4 5 7
4020-PP REINFCMNT LABOR 4356 1525 0 0 1525
4021-PP REINFORMNT OVRHD 4356 653 0 0 653
4022-PP EXCAVATION LABOR 402.0 7 2 4 0 0 724
Exhibit 8-2-3 Page 3: Costed Bill of Materials
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4024-ee BACKFLL t COMPCT 402.0
4025-PP BCKFLL & CMPCT 0 402.0
4030-PP FORM LABOR 1430
4032-PF SCREED 106.0
4033-PP SCREED LABOR 106.0
4037-PP BEAM 499.0
4038-PP BEARING PAD 9.300
Exhibit 8-2-4 Page 4: Costed Bill of Materials
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4040-PP CONCRETE LABOR 10.80 7 7 0 0 7 7
4041-PP CONCRETE OVERHD 10.80 3 1 0 0 3 1
5 2 8 0 0 5 2 8
4043-PP FORM LABOR 503.0 1715 0 0 1715
4044-PP FORM OVERHEAD 503.0 684 0 0 684
4045-PP FINISH MATERIAL 437.0 109 0 0 109
4046-PP FINISH LABOR 437.0 109 0 0 109
4047-PP FINISH OVERHEAD 437.0 4 4 0 0 4 4
4048-PP REINFORCEMENT 1061 111 0 0 11 1
4049-PP REINFCMNT LABOR 1061 371 0 0 371
4050-PC ~ I N F C M N T OVRHD 1061 159 0 0 159
4051-PP CONCRETE MATERL 2.400 134 0 0 134
4052-PP CONCRETE LABOR 2.400 4 l9 0 0 19
4053-PP CONCRETE OVRHEAD 2.400 7 0 0 7
4054-PP FORM MATERIAL 52.00 5 5 0 0 5 5
4055-PP FORM LABOR 52 .OO 177 0 0 177
4056-PP FORM OVERHEAD 52.00 7 1 0 0 7 1
Exhibit 8-2-5 Page 5: Costed Bill of Materials
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exhibit 8-2-6 Page 6: Costed Bill of Materials
Goes Into File GO4101
Exhibit 8-3 "Goes Into File"
Exhibit 8-4 Structured Bill of Materials: Concrete Stem
1001-SS CONCRETE WALK 1.000 42957 0 0 42957
2001-SS RETAINING WALL 1.000 42957 0 0 42957
3001-SS CONCRETE STEM 1.000 42957 0 0 42957
4001-PP CONCRETE MATERL 86.00 4799 0 0 4799
4002-PP CONCRETE LABOR 86.00 1054 0 0 1054
4003-PP CONCRETE OVRHEAD 86.00 4 2 1 0 0 4 2 1
1004-PP FORM MATERIAL 5102 5357 0 0 5357
4006-PP FORM LABOR 5102 17398 0 0 17398
4006-PP FORM OVERHEAD 5102 6939 0 0 6939
4007-PPdFINISH MATERIAL 3430 858 0 0 858
<,k p .
4008-PP FINISH LABOR 3430 858 0 0 858
0 0 343
4010-PP REINFORCEMENT 8149 856 0 0 856
4011-PP REINFORCMNT LBOR 8149 2852 0 0 2862
4012-PP REINFORC OVRHEAD 8149 1222 0 0 1222
Exhibit 8-5 Costed Bill of Materials: Concrete Stem
1001-SS CONCRETE WALK 1.000,1 42957 0 0 42957
2001-SS RETAINING WALL 1.000 42957 0 0 42957
3001-SS CONCRETE STEM 1.000 42957 0
%?? Q 42957
4002-PP CONCRETE LABOR 86.00 1054 0 0 1054
(0~11J8,1~35,4.6)C04~l~, I Z , ) ( O~ ~ , V , ) ~ , O 6,'l*6)1a 11, 1,121 316j1%6)C031;8)
4005-PP FORM LABOR 5102 17398 0 0 17398
C o 6 ~ ~ , 8 , ~ 2 3 l ~ ~ ~ S ~ ( o ~ ~ , 4 , ~ ~ ; ) ~ o 7 ~ 3 , a , ~ ~ o ~ ~ J 9 , 5 X ~ \ \ ~ ~,12,3,.5,q,~)~0~l,~;)
4007-PP FINISH MATERIAL 3430 058 0 0 858
( OI I ~, ' ~' , \
4008-PP FINISH LABOR 3430 858 0 o '3% e
to7 !3,I,
4009-PP FINISH OVERHEAD 3430 343 0 0 343
( 0713, l,lbI
4011-PP REINFORCMNT LBOR 8149 2852 0 0 2852
[0611,%,l& ~S. $' S, S>( WCI , Y~L~) ~ 01 1318, I L & O * S ~ ~ * ~ X ~ G 1',8) j2) 3,SJq,S)LO3ijT$)
4012-PP REINFORC OVRHEAD 8149 1222 0 0 1% 2 2
l o 6 1 l , 8 ~ 1 2 , 3 . 5 , q , ~ ) C~ 4 4 , 4 , r ~ , Xo ~ 1 3 , t , ~ t , o ~ 5 , 4 , 5 ~ ~ ~ ~ ~ l , ~ 1 z ~ 35,4,5Xd3!,8e)
Exhibit 8-6
TASK: DEFINE CONNCTION 42957 0 0 42957 100.0
BASIC FUNCTIONS: 5744 0 0 5744 13.4
r3Jl000-PREVENT ENCROACH 5744 0 0 5744 13.4
31000-SUPP EMBANKMENT 5744 0 0 5744 13.4
SUPPORTING FUNCTIONS: 37213 0 0 37213 86.6
70000-&:TRACT USER
1 ~ O O O - E N ~ & C E APPEAR.
Exhibit 8-7 Function Cost Summary: Concrete Stem
TASK: DEFINE CONNCTION 42957 0 0 42957 100.0
BASIC FUNCTIONS: 5 7 h 0 0 5744 13.4
30000-PREVENT ENCROACH 5744 0 0 5744 13.4
SUPPORTING FUNCTIONS: 37213 0 0 37213 86.6
40000-ASSURE CONVEN 13632 0 0 13632 31.7
Exhibit 8-8-1 Page 1: Function Cost Detail
60000-SATISFY USER 10044 0 0 10044 23.4
61000-MAINTAIN ORADE 10044 0 0 10044 23.4
70000-ATTRACT USER 3493 0 0 3493 8.1
71000-ENHANCE APPEAR. ' 3493 0 0 3493 8.1
Exhibit 8-8-2 Page 2: Function Cost Detail
8.4 Written Assignment 8
The first 3 questions refer to the formwork slab of the bridge deck problem in
Section 12.6 of the textbook.
1. Clearly explain the calculations for determining the ratio multipliers for the
formwork slab of the bridge deck problem.
2. Clearly explain why the extra cost e p o q cyreinforcement is allocated to the
function Extend Life and not to some other function.
3. Explain why none of the costs of the concrete curb are allocated to protecting
the pedestrians or cyclists.
4. Do a complete function cost allocation for the retaining wall usi the FAST
functions returned with your written assignment for Unit 7. (1ne)ude con-
crete, reinforcement and formwork.) Provide the following:
(a) A sketch for each component indicating which specific parts of the ma-
terial are allocated to which function.
(b) Clearly show each term in your calculation.
(c) Complete a "function cost detail" (See Exhibits 8-8-1 -8-8-2).
(d) Complete a "function cost summary" for the retaining wall shown in
Figure 8-7 on the following page.
furnish Barrier
Style Barrier
Figure 8-7 Retaining Wall
Value is subjective. Part of it can be measured, such as performance which can be
verified and measured. The absence of certain functions that relate t o performance
may reduce value. By relating the function attitude to cost or need as a check,
one can identify mismatches. This unit discusses function attitudes and explains
how they affect value.
9.1 Reading Assignment
Function Analysis: The Stepping Stones to Good Value, Snodgrass and
Kasi. Chapters 13 and 14
9.2 Study Notes
Unit 3 emphasized the importance of the userlowner attitudes. This unit shows
you how these attitudes can be allocated to functions.
Often, technical people's concept of good performance and satisfaction do not
agree with the users'/owners' perception. Faults and complaints, received after
similar projects were completed, must be gathered and analyzed.
You should collect, understand, and allocate the users'/owners' and other
stakeholders' attitudes for the FAST Diagram for the project.
If the project is a rental or condominium building, collect the reactions re-
garding convenience to public transportation, security, recreation, safety, moving
within the building, storage, etc.
If the project is a bridge or a road, measure the attitudes of the public and
other stakeholders on safety, security, convenience to access, capacity, adt r af f i c
congestion, etc. In a typical highway design, Maintain Access is an important
function. The people who live in the area would like to have an access. The
cost of providing an access is usually expensive. It is a high-cost function. How-
ever, in some cases the access may also be viewed as a potential accident area by
transportation officials and the thru-traffic drivers. Let us look at this scenario :
1 h c t i o n I Cost 1' Need I Remarks
Maintain Access High High Local users
1 Low 1 Main TrafFx
The same situation may be viewed differently by different stakeholders. The
function could be viewed as having value or as a value mismatch. When the
owners/users differ in their perception of what is good or bad, it provides a chal-
lenge t o the designer. Often, the conventional approach will allow the dominating
stakeholder to adversely influence the decision. The VE system, through function
' Cn"
attitude, provides an opportunity to assure good value. Public information and
public hearings for transportation projects are good forums to gather attitudes
which can then be assigned to functions.
You should be careful in interpreting the reactions of the users and owners. In
the construction industry it is common that the needs and requirements conflict
with each other. Chapter 13 in the text details a function attitude survey for an
industrial product. Read this approach carefully. Understand how the log sheet
and the function fault comparison are prepared. Also, read Section 14.8 through
14.1 1 to understand how mismatches were isolated.
Value is subjective and emotional. Cost is an important item that affects value.
However, cost is not the only factor that impacts on value. Failure t o recognize
this can lead t o major loss of value.
9.3 Written Assignment 9
1. m a t are "function attitudes"?
4 '
2. What are two types of "value mismatch"? Give an example of each.
3. How does conflict of needs affect value?
4. How do you resolve a conflict between needs?
5. Review Section 13.7 in the text and develop five t o six questions that would
be a significant measure of acceptance for the campus walk.
You have studied three of the four steps in the information phase of the Task
FAST: FAST diagramming, function cost, and function attitudes. The fourth
step, function analysis, is so important it has been used in the title of the text,
finction Analysis: The Stepping Stones to Good Value.
10.1 Reading Assignment
Excerpts from: "Techniques of Value Analysis and Engineering, ", L. D. Miles.
Chapter 3
finction Analysis: The Stepping Stones to Good Value, Snodgrass and
Kasi. Chapter 15, (Review Unit 9 and Chapter 14, Sections 14.1-
14.7; 14.12-14.17).
10.2 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. Often a person will react t o a function cost by saying, "It
isn't worth it!" or "There must be a better way!"
Miles lists five steps under the heading "Evaluation of Functions by Compari-
son" (Section 3-2). The 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. The case
study in the Miles excerpts, Section 3-2, of the gas tanks for Navy landing craft,
illustrates this. The function of the gas tank might be stated as Store Gasoline.
The function leads us first t o 50-gallon standard drums, then to a 250-gallon oil
tank made for domestic use. The recognition of special factors or functions for the
Naval gasoline tank requires an estimate of added cost. The established value of
the function Store Gasoline becomes $50.00, about one tenth of the actual cost of
$520 for the special alloy tank. The final design cost is $80.00, but the effectiveness
of the value analysis approach is clearly demonstrated.
Functions are often interacting and interdependent. The procedure for listing
these functions is outlined, and an example is provided. Note that the functions
were (1) identified, and then (2) arranged in an order suitable for evaluation. In
your particular case, this order is in the basic- and supporting-function format of
TASK FAST or in the technical FAST diagramming format.
Another effective means of evaluation involves using relationships: property-
material relationships and material-cost relationships. All this data is available in
published form but often needs some conversion. For example, the price of low
carbon steel sheet might be determined at 10 centsllb while standard aluminum
alloy sheet might cost 45 centsllb. To make a comparison based only on cost-
per-pound would be inaccurate, because the two materials have different densities.
The density of steel is 0.283 lb/cubic inch while that of aluminum is only 0.098
lblcubic inch. If you wish to compare equivalent volume on a cost basis, you need
dollars/cubic inch. To obtain it, the following calculation could be made: .10
dollars per pound times .238 pounds per cubic inch equals .0238 dollars per cubic
inch for steel. Forty five cents per pound times .098 pounds per cubic inch equals
.0441 dollars per cubic inch for aluminum. This readily indicates that although
the cost per pound for aluminum is four and one-half times that of steel, the cost
ratio of aluminum to steel on a volume basis is closer to two.
Functions can be varied to generate creative ideas. Read Section 15.5 from the
text that deals with maintenance of traffic. Below are some functions.
0 Maintain Raf i c
0 Manage Tmf i c
Prohibit Trafic
0 Divert Trafic
Reduce Trafic 4
Various ideas can be generated by varying either the verb (action) or the noun.
By varying the verb from "maintain" to "prohibit," entirely different ideas will be
Go back and review Value Mismatch in Chapter 14, finction Analysis: The
Stepping Stones to Good Value, and the material in the Study Notes in Unit 9 of this
Course Guide. This unit adds another dimension to function analysis. Once the
functions with the greatest opportunity for improving product acceptance and/or
reducing costs are identified, the next step is to think of other ways to perform these
functions using creativity. Study the quotation at the beginning of Chapter 15.
Where do you belong?
Often the challenge is to create using the correct function. Note the six steps
that should precede the creative phase. Several examples are included. The p r e
posed tunnel station for the CTA rapid transfer extension to O'Hare Airport in
Chicago is an interesting example of creative thinking.
10.3 Written Assignment 10
1. What is meant by "evaluating a function"?
2. List the progressive steps in evaluating a function.
3. How are interacting functions evaluated?
4. Explain how the following quote applies to us who practice VA/VE.
' ? \z
"Some men see things as they are and say, 'Why?'
I dream things that never were and say, 'Why not?' "
5. What are the specific activities that should precede the Creativity step?
6. Do a Pareto analysis on the bridge deck (Section 12.6; textbook). Prepare a
Function Cost Summary and a Function Cost Detail. Identify those functions
that account for 80% of the total cost.
7. Using the functions identified for the retaining wall in Units 4 and 8 conduct
a creativity session. (Recruit some friends to work with you if you wish.) Try
to get as many ideas as possible; the ideas can be major or minor, obscure
or sensible. Submit the results of this activity in rough draft on an Idea List
form enclosed in your " Forms Packet."
%Pr i or t o this unit, your objectives have been to collect information, define func-
tions, arrange them in a function logic diagram called FAST, allocate the cost and
attitudes information to the functions, and carry out a function analysis t o de-
termine the function mismatches. These identified function mismatches were then
used in the creative phase to develop alternate ways to perform these particular
You are now ready to determine how t o obtain the lowest cost product or
service that will receive high customer acceptance. This important relationship
is the ultimate objective that assures good value to both the customer and the
producer and is called the Value Standard.
11.1 Reading Assignment
Fhct i on Analysis: The Stepping Stones to Good Value, Snodgrass and
Kasi. Chapter 16, Pages 293-298
11.2 Study Notes
When ideas are collected during the specu ation phase, the rule is "do not judge".
Adherence to this rule will usually lead to the collection of a number of ideas. The
next step is to use a series of tools to evaluate these ideas. First, "far out" ideas
are crossed off the list on your Idea Form (Figure 11-1).
11.2.1 Feasibility Ranking
The Feasibility Ranking evaluates all the surviving ideas with regard to important
criteria that affect the project, process or service. (This is not the time to interject
owner's opinions.)
1. Put the function name at the top of the Feasibility Ranking sheet for each
function being studied (Figure 11-2).
Unit 11. EVALUATION 85
2. Transfer the ideas, that were not crossed out from the Idea List form, to the
Feasibility Ranking sheets under the same function name.
3. Select a function sheet and address the first idea with respect to the first
criterion (State of the Art).
4. On a scale of 1 to 10 assign a number reflecting how well the idea satisfies
the criterion. High numbers are favorable, low numbers are unfavorable.
Example: 10 is "off the shelf," available now; 1 is "brand new technology,"
usually implying a long development time, high uncertainty and/or high
5. Proceed down the idea column for this criterion-do not proceed horizon-
tally across the line. When the first sheet is completed, continue with the
remaining sheets for the same criterion.
. t ? \
6. When all of the sheets have been completed for this criterion, then repeat
the process for the remaining criteria on the Feasibility Ranking sheets. Be
certain that you proceed dovm the columns.
7. There is room on the sheet to add a sixth criterion.
8. Total the numbers in the row for each idea and enter at the right in the
"Total Ranking" column.
9. Select the 5 t o 8 highest ranking ideas for each function and transfer these
to the Idea Comparison sheets.
11.2.2 Idea Comparison
The Idea Comparison subjectively evaluates the advantages and disadvantages of
the remaining ideas.
Transfer the highest ranking ideas from the Feasibility Ranking Sheets to thg,
Idea Comparison sheets (Figure 11-3). Do not group the ideas by function
hereafter. If some of the ideas obviously could be combined, then list the
combined idea as one.
Address the first idea. The team should identify all of the advantages relat-
ing t o that idea and assign a positive number from +1 t o +5 where +5 is
significant advantages and +1 is minor advantages. 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.
Proceed down the idea column determining the "advantage" rating for each
When the advantages for all of the ideas have been determined, then identify
and rate the disadvantages for each idea. For disadvantages the team should
assign a negative number from -1 to -5, where -1 means disadvantages and
-5 is significantly serious disadvantages.
86 Unit 11. EVALUATION
5. Add the advantage and disadvantage rating for each idea and enter under
.the "Rank" column. (Note: +4 and -2 equal a rank of +2.)
6. The ideas with the highest plus ranking are then grouped and transferred to
the Analysis Matrix chart. Usually any idea with an Idea Comparison rank
of +2 or greater is transferred. Occasionally a +1 is transferred.
Next set up a series of procedures to enable you t o evaluate the ideas objec-
tively. A set of criteria must be developed. Criteria can be developed using the
functions. Various functions can be combined into a set of criteria. It is not desir-
able t o develop more than 10 criteria. If more are suggested, check to see if there
are duplicates, or whether some can be combined. Once the team settles on the
list of criteria, the next step is to rank these criteria.
*31.2.3 Paired Comparison (Figure 11-5)
Using the example retaining wall from Unit 4, the criteria that are to be considered
in the design of any retaining structure are as follows:
A. Strength
B. Stability
C. Constructibility
D. Appearance
E. Versatility
F. Time of construction
G. Drainage
H. Makk%ance
These criteria are not listed in the order of preference. The next step is to find a
way t o arrange them in the order of importance (see Figure 11-5).
List all of the criteria on the left-haid side in any random order and letter
them A thru H (Exhibit 11-1). Across the top, place letters representing these
criteria starting with the second criteria (B) and continue in the same order as the
vertical list. The objective of the following procedure is to compare one criterion
at a time against each of the others and decide which one is more important.
Let us compare the criterion "strength" (A) with "stability" (B). Ask the
question, "Which criterion is more important?" The answer is "stability" (B). Next
ask the question "How much more important?" using the the preference ratings
on the bottom half of Exhibit 11-1. The answer is %cry slightly more important."
Mark B in the box that is enclosed by A and B with a (1) slightly below the B.
Next compare "stability" (B) with "constructabili ty" (C). The result (B) is more
important than (C) and the preference rating is LLmuch more important" or (4).
Unit 1 I . EVALUATION 87
Mark B4 in the box that is enclosed by B and C. Similarly compare C and D, D
and E, E and F, F and G, and G and H. Then compare A and C, B and D, C and
E, D and F, E and G, F and H. Similarly complete the grid. See Exhibit 11-1.
The next step is to add all weightings for each criterion and enter in the column
Sum of Scores. The sum represents the weights of importance.
The final step in the evaluation process is the Analysis Matrix. Enter all the
ideas, including the present way, in the left hand spaces 2-8. Enter all the criteria
that have significant weights of importance in the top spaces (a-g). Enter their
weights of importance. Next rate each idea against the criteria. Rate how well the
idea satisfies the criteria as follows: e cellent (4), good (3), fair (2), and poor (1).
After rating all ideas, multiply the ra ? ing by the weight of importance.
The sum of the products of all criteria for each idea is its total. Exhibit 11-2
shows the summary of the ratings for the Retaining Wall. Ideas with the highest
score should be developed in detail and cost should be allocated. Alsq, ideas with
low total scores, but with high individual scores on certain criteria, dhould be
studied t o see if they can be used t o improve the higher rated alternatives.
11.2.4 Guidelines for Evaluation Sessions
Evaluation should be done in a swift but orderly manner. To ensure this, an
assistant is needed to record the evaluation process.
The performance of each idea must be evaluated for each criterion. The team
should compare all ideas against one criterion before proceeding t o the next
(a) In ranking the ideas in the order of performance against each criterion
the yardstick should be how well an almost ideal idea would perform.
The best performing idea being considered may only rate a 3. On
the other hand, it is possible that several could be rated 4. If they are
equally poor, they all can be rated 1. Generally, the leading idea is rated
first followed by the others, depending on their relative performance:".
Members should rate at the same time by flashing number cards. On the
first try they should not be influenced by other team members.
The rating of team members will generally be averaged if the difference is 1.
However, ratings should be limited to whole or half. Where the differences
are greater than 1 just using the average is not satisfactory. The following
set of scenarios will explain such situations.
(a) When a six member team rates an idea, as follows:
Members Rating
2 3
88 Unit 1 1 . EVALUATION
The members who rated the 1 and 5 will be asked to explain their
viewpoints. Member who rated 3 or 4 can respond and a new poll
taken. If the ratings are not revised, discard the extreme values and
use the average value of 3.5.
(b) When a five member team rates an idea as follows:
Members Rating
4 3
1 5
Discard the rating of 5 and use the value of 3.
(c) When a six member team rates an idea as follows:
Members Rating
3 3
1 4
2 5
Use the average value of 4.
Cost is an important item that should be handled very carefully. In many
instances some rather solid cost figures can be obtained. These then seem to be
very objective and yet to treat them the same as the performance criteria, they
should undergo the same subjective rating. The lowest cost is not necessarily given
a rating of 5. The team may feel that a further reduction in cost is possible, in
which case a 4 or even a 3 is appropriate.
The cost criteria group may include the following:
First cost
A '
Maintenance cost
Operating cost
User cost
0 Rehabilitation cost
0 Demolition cost or Salvage cost
Generally, the evaluation process should be completed at the end of a day and
should be reviewed the following morning t o check if the team has a change of
The evaluating of alternative ideas and rating them against one another can
be complex, requiring organized techniques to sort them out. In conventional
engineering, the engineer would list all advantages and disadvantages and then
choose. In this case, the choice of the best ideas is made by a single stroke. This
Unit 11. EVALUATION 89
kind of decision maker is experienced and has a disciplined mind. Above all, there
should always be enough time and information to make the decision. In Value
Engineering, even though self-discipline and experience of individuals are a help
in making decisions, they are not necessary to obtain good results. The VE job
plan and evaluation procedure will guide the team to an unbiased evaluation.
The Figures and Exhibits for Unit 11 follow the written assignment.
11.3 Written Assignment 11 a ; !
1. What is the value standard and why is it important?
2. What did Mr. Miles mean by "determining the possible"?
3. Do a complete evaluation of the ideas generated for the retaining wall in
your answer to question 7 in the written assignment for Unit 10. Use the
evaluation sheets provided in the Forms Packet.
This is the creative phase of the value study. Generate as many ideas as possible for accomplishing be function.
Do not evaluate the ideas durir~g this phase.
Copyri@t Q 1 9 9 by Bcud of wpnu o f h Udvoniq of W c m h S y a m FORM 1101
Figure 1 1-1
Copyright O 1989 by Bard of Rcgsnu of tho Univcnity of Wwonsin Syr t ~r n FORM 1102
Figure 1 1-2
STUDY NO. I I b c r
Select the most feasible ideas or combination of ideas. List them below. Ust both the advantages and
disadvantages of each idea to determine where additional work must be done.
I '
Copyri@ O 1989 by Boud o i P . p n ~ of the Univ*nity of Wtemndn Syrlorn
POW 1103
Figure 1 1-3
Figure 11-4
0 - N o difference.
1 - Very slightly more important
2 - Slightly more important
3 - ReasmaMy more important.
4 - Much more imponant.
5 - Examely more important.
Put tbe SCORE in each box by writing J
BOTH the LFTIER reprrsenting the crituicm
AND the NUMBER reprrsenting the waghting
for the choice you feel is most important
(Accordin to the
Highest &re)
FORM 1105
Exhibit 11-1
'Poor - i Fak - 2 Good - 3 Excellen1 - 4
Exhibit 1 1-2
Value Engineering Change Proposal, widely known as VECP, is one way an owner
can lower the cost and improve the value of the project. VECP also gives the con-
tractor an incentive to invest significant effort in seeking ways and means by which
savings can be attained without lowering the value of the project. A successful
VECP benefits both owner and contractor.
12.1 Reading Assignment
12.2 Study Notes
The most frequently asked question about VECP by the owner is, "If the designer
did his job right in the first place, why is there a need for VECP and why an
incentive clause for it?" In an ideal situation, the above question has justification.
The following reasons illustrate the need for VECP.
There is always a time lapse between the design and construction phases.
Sometimes this lapse may be measured in years and not in months. Prices of
materials and their availability change considerably during this time lapse.
What was abundant and economical during the design phase may sometimes
become very expensive and scarce during the construction phase.
Even though field conditions, such as types of soils, were investigated by
the designer, it is conceivable that unexpected data may surface during the
contractor's in-depth exploration.
3. Contractors are in intimate contact with everyday construction problems
;.and are in a good position to offer a fresh approach that can reduce cost and
improve construction without lowering the quality.
4. Designers must assume a method of operation and staging of construction
suitable for any qualified bidder. However, some contractors have developed
unique methods. The successful bidder, because of this unique expertise,
may be in a position to provide better construction staging and operation at
less cost.
5. Contractors, because they work with different agencies and consultants and
do different types of work, may have discovered different methods that work
as well or better than methods by some designers. Designers have less oppor-
tunity to try different methods that would achieve an economical solution.
**c. 6. The designer prepares his plans and specifications based on certain con-
straints. Due to many reasons during the construction phase, some of the
constraints may no longer exist, or the contractor (by changing the staging
and operation) can overcome some of the constraints. Thus some time-
consuming, difficult and expensive details can be omitted or simplified with
the cooperation of the contractor.
7. Standard specifications that were prepared a number of years before the
design period of the particular project are often outdated or even inapplicable
for certain specific problems or uses. When problems arise, value engineering
can be used to determine the appropriateness of the specification.
Properly implemented, the incentive clause gives the owner a cost-free oppor-
tunity to have the contractor do an independent VE study. The objective of the
designer is to ensure that the owner gets the best structure at the most economical
price. It is the designer's responsibility to create an atmosphere, through speci-
fications and attitudes, where VECP would not be considered a weakness of the
designe;, h t would be considered an opportunity for a positive team effort be-
tween designer and contractor. There is no reason why an interaction similar to
the one between architects and engineers cannot be developed between contractor
and designer so that the owner gets the o timurn value.
The contract should require that the f lowing steps be taken in order to qualify
for the VECP incentive clause.
1. Application. The VECP proposal should require a change in the contract
to implement the VECP and reduce the contract price without lowering the
value of the project.
2. Documentation. The contract should be comprehensive enough t o under-
stand and evaluate, but also detailed enough to reflect the contractor's con-
fidence in its practicality. In summary, it should have the following:
(a) comparative description between existing and proposed contract re-
quirements, detailing advantages and disadvantages;
(b) analysis and itemization of changes in the contract; and
(c) a detailed cost estimate for both existing and proposed contract re-
quirements, including the cost of development and implementation by
the contractor.
3. Submission. The contractor should submit the VECP t o the resident engi-
neer with a copy to the owner.
4. Acceptance. The contractor should stipulate the time limit by which the
owner should respond. Beyond this limit the contractor has the option to
withdraw the VECP proposal. h t also should stipulate that the owner has
the right t o accept or reject the proposal.
5. Sharing. The contract will detail the method by which the contract price
would be adjusted if the proposal is accepted. One method of s$aring the
savings between the contractor and the owner if the proposal is accepted is
as follows:
New Price = Original Price - (0.45 x Instant Contract Savings (ICS)
+ 0.55 x Government Cost (GC))
Contractor's Savings = 0.55 x ICS - (0.45 x GC) - Implementation Cost
Owner's Savings = 0.45 x (ICS - 0.55 x GC)
No matter how good a VECP is, its success depends mainly upon how receptive the
designer is towards the changes and how much the owner wants to participate in
the technical aspect of the project. Without this receptivity and participation, the
contractor may not want to risk time, money and the possibility of antagonizing
the designer. In such a situation either the contractor will not propose a VECP;-
or will not pressure the owner or the designer t o accept a suitable VECP.
12.3 Written Assignment 12
1. Define VECP.
2. What are the basic steps to be followed in applying the VECP?
3. Discuss in detail the sharing arrangement in a VECP incentive clause.
4. As an owner, explain why you would or would not encourage a VECP in
your project.
5. What additional advantages could the designers obtain from a VECP?
6. What additional advantages could the contractor obtain from a VECP?
7. Are there advantages to other parties when VECPs are used? Give examples
;,if there are any.
8. List some ways that people can abuse the VECP idea. (You may not find
these in this Course Guide.)
The previous units presented the basic principles of Value Engineering. The prob-
lem presented in this unit is how to create a climate in which these VE principles
may be effectively utilized.
13.1 Reading Assignment
13.2 Study Notes
Every VE study is in some respects unique, but there are some steps to be taken
prior t o the actual study that will make the task easier. The Value Engineer needs
to understand these steps and be patient and diplomatic in ensuring that they are
properly done.
In general, the steps to be taken are:
1. project selection,
2. scheduling and duration of workshop,
3. team selection,
4. preparation of team, and
5. subject selection.
13.2.1 Project Selection
In sdhe cases the owner selects a project for VE study before the Certified Value
Specialist (CVS) is selected for any one or more of the following reasons.
1. Federal regulations require a VE study.
2. Estimated cost of the project exceeds budget.
3. Estimated time until completion of construction is excessive.
4. A similar project now in use has excessive maintenance costs.
5. Public reaction to the proposed project is negative.
In other cases, where the CVS is on board to help select the project, additional
%writeria for selection could be:
1. The project is the first of several so the VE savings will be realized more
than once.
2. The project utilizes a number of standard details, particularly if these stan-
dards were developed several years ago.
3. The project is in the planning stage where a greater cost impact is possible.
13.2.2 Scheduling and Duration of Workshop
The Value Engineering Job Plan should be adhered to, no matter what the schedule
is. Keeping that in mind, you can be flexible in scheduling. Conventionally a Value
Engineering study takes about 40 hours, but some projects may require up to 60
The time involved depends upon the team members. Knowledgeable and ded-
icated pembers tend to analyze, design and estimate alternates within the work-
shop; thid'kill increase the workshop hours. In other cases team members may
approach the problem solving techniques in a general way. They may expect the
specialists t o test their ideas. This will reduce the workshop hours; however, out-
side workshop hours will increase. In the st case, the VE study can be conducted
in one week. In the latter case, it is advisable to segment the study into two or
three sessions, with a few days' break for preparation. Following are some of the
schedules that have been found to be practical under certain conditions.
0 Monday: Information Phase
Tuesday: Information Phase
0 Wednesday: Function Analysis, Function Cost, Function Attitude
0 Thursday: Speculation Phase, Evaluation Phase
F'riday: Respeculation & Reevaluation Phase, Development Phase
2. TYPE I1
3. TYPE I11
0 Monday
In addition to general scheduling, consideration should be given to lunch peri-
ods and evenings when vital interaction between team members can take place.
13.2.3 Team Selection
The VE leader should participate in the selection of team members for any given
study. It is desirable that in addition to the VE leader one team member should
participate in all the studies on a project.
Team size may vary, but a team of four to six is best. Having less than four
seriously limits the amount and variety of creative input, and more than six tends
t o be unwieldy and time consuming.
Selection of team members is very critical in organizing a study. The VE leader
should be a person who is well versed in all phases of the project, but not necessarily
an expert in any field. Persons with expertise in different disciplines should be-
included as needed. Apart from the technical considerations, it is advisable to
select participants who do not think alike and who have different strengths. It is
healthy to have a mixture of talents and temperaments that will generate questions
and even arguments. Resolution of questions raised by team members ensures
better solutions. This is the only way a good study can be shaped. The VE leader
can control and guide a study in the proper path by being knowledgeable and
assertive, yet tactful and friendly. The leader should be able to think ahead and
present ideas clearly and with perseverance.
13.2.4 Preparation of Team
After the selection of the team, as much information as possible should be given to
each member well in advance of the workshop. Each member should be respdnsible
for becoming familiar with the project, its scope and purpose.
Pertinent information that each team member may have should be shared.
Members should bring t o the workshop references of all sorts that might be useful.
13.2.5 Subject Selection
In most instances, the VE team is given the opportunity t o select from the project
the elements to be studied. In making the selection, the VE team must keep
in mind that while VE analysis results in cost savings and improvement in any
element, it is also time consuming and thus costly to apply to all elements of a
design project. A general rule of thumb is that a study should not be undertaken
unless the estimated
Cost Savings (First Cost and Li f e Cycle Cost) = 10 x Cost of Study.
Therefore, elements having a low first cost should not be considered unless their
acceptance value is perceived to be great. For example, any element whose basic
function is Safeguard User should be studied if the team perceives the performance
of the element t o be less than very good.
The following criteria are guides in selecting a subject for study.
b9r "
1. If cost exceeds initial estimated cost or budget.
2. If the element has obvious unwanted costly functions.
3. If the element has critical but expensive functions.
4. If the element is difficult to construct.
5. If the element has too many standard details.
6. If the element is expensive to maintain.
Three other factors are used to identify worthwhile subjects. These are
1. Pareto's Law of Distribution,
2. probability of acceptance of change, and
3. p $ ~ b i l i t y of high maintenance cost.
Pareto's Law of Distribution
In the nineteenth century an Italian econc&ist developed a curve known as Pareto's
Law of Distribution. This curve applies whenever a significant number of elements
are involved. It states that in any area a small number of elements will represent
the major cost and therefore these should be examined carefully. Figure 13-1 shows
a modified version of Pareto's Law of Distribution for a stringer bridge.
Figure 13-1 First Cost
Probability of Acceptance of Change
using past experience, the team should rate the elements for the probability of
acceptance of change. To be successful the change should have a good chance of
being accepted by the project designer, management, and the client. It is very
important to note that this does not mean that elements with low probability of
acceptance of change should not be studied. It merely guides the VE team in
setting the priority for which element to study. Figure 13-2 shows the probability
of acceptance of change for the bridge elements.
Probability of High Maintenance Cost
Project engineers should be very interested in keeping track of the cost of main-
tenance of various elements of structures designed by their firm. Value engineers
are responsible for identifying high life-cycle cost elements and insisting on value
engineering studies to reduce maintenance cost, eliminate cost, or eliminate costly
elements. Knowledgeable persons, particularly members of the owner's mainte-
nance force, should be consulted. Figure 13-3 shows the probability that the
bridge elements will require maintenance.
Figure 13-2 Probability of Acceptance of Change
Figure 13-3 Probability of Maintenance Problem
The team should determine the weight of importance of each of the previous
factors, then develop a composite diagram of the weighted factors. For the bridge,
the following weights were used to develop the composite diagram (see Figure 13.4).
Cost 6
Acceptance of Change 10
Maintenance 8
These weights of importance are hultiplied times the rating received for each
of the bridge components to obtain a score. The foundation received a rating of
10 for the cost and a score of 60 (i.e. 10 x 6). The scores for the three factors are
now added to obtain the weighted total. Finally the top weighted to@ i : assigned
10 and the others are a ratio of this number (981188 x 10 = 5.2). These'weighted
ratios are shown in chart form (Figure 13-4) and as a graph for comparison (Figure
Weights of Importance
Maint. 1 Acceptance
Figure 13-4
Figure 13-5
For the bridge, the expansion joint is not an expensive item, ranking lowest in
the cost consideration. However, it ranks second in importance in the study, as
shown in the composite diagram, for two reasons:
1. expansion joints, in general, cost more to maintain or repair, and
2. the owner gives the joint a higher priority for maintenance than other ele-
Figures 13-1 through 13-5 vary for each project and depend on the following:
1. structure,
2. owner,
3. time, and
4. location.
The value engineering team should develop figures similar t o Figures 13-1 - 13-5
before selecting the element to be studied.
13.3 Written Assignment 13
1. How many team members should a VE study include?
2. When should a VE study be considered?
3. Develop the following graphs for the retaining wall.
(a) Cost vs. Components
(b) Probability of Acceptance of Changes vs. Components
(c) Probability of Maintenance Problems vs. Components
4. Develop and justify the weights of importance for the above graphs. (Please,
don't just copy the workbook numbers.)
5. Using your answers to questions 3 and 4, develop a composite graph.
6. Make recommendations based on what you have learned from your answer
to question 5.
7. Select a project with which you are familiar, and that you would like to use
for a VE study.
(a) Briefly explain the project.
(b) Make a list justifying the project selection.
(c) List the expertise you would include on the team? (eg. A design engi-
neer, a juggler, a nuclear physicist, etc.)
The tools and techniques of value analysis are important in determining solutions.
Management's understanding and support determines the degree of implementa-
tion and overall success of the value engineering program. The elements of a suc-
cessful value engineering program, as they concern management, deal primarily
with interactions, personalities and the politics of the organization.
14.1 Reading Assignment
finction Analysis: The Stepping Stones to Good Value, Snodgrass and
Kasi. Chapter 16, Section 16.2
Excerpts from: "Techniques of Value Analysis and Engineering, " L. D. Miles.
Chapters 6; 8; 11; and 16, Sections 16-2 and 16-3
14.2 Study Notes
Value engineering can be used to solve management problems. Chapter 6 indicates
the various steps and considerations invdved. The emphasis is on the problems
of management separate from the products or services the organization produces.
The steps in establishing an agreement or determining the problem may seem
elementary at first reading, but are essential to obtain a solution. The three stages
are very similar t o the job plan approach. Breaking a problem into parts makes it
easier t o identify each different part and to work for individual solutions instead of
initially trying to find one solution for the problem as a whole. An interesting case
study is given in Chapter 6. Five additional situations are presented in Section
6-3. Try the three-step approach to each of these five situations.
The emphasis in Chapter 11 of the Miles Excerpts is on management's role in
implementing the recommendations generated by a value study. The two steps in
achieving 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.
Probably more value analysis programs have failed because of management's
inability t o cope with the recommendations and organizational problems than for
any other reason.
The time needed t o adjust to, or accept, a new or different solution appears to
be directly related to the degree of difference between the solution and the present
method. Miles discusses various rea@ns for this. First, there is the matter of
personal risk. It is a real factor and should be thoroughly understood by the value
specialist and the team members. Gains must be commensurate with the risk to
enable management to consider a value recommendation.
Injuring or destroying the reputation of the decision-makers is a $&isus factor.
A value research study on compact station wagons was conducted in the 1960s for
a major automobile manufacturer. The belief at that time was that compact cars
were a fad, and the public would soon return t o full size cars. However, the results
of the study indicated, if a compact car was properly designed for the customer's
needs, it was a highly acceptable vehicle. The results were completely opposite to
popular beliefs. Even though time proved the correctness of the results, the study
damaged the reputation of the individual who sponsored it. It was even labeled
"Miller's Folly," ridiculing the individual's name within the industry.
There are various types of obstacles that can adversely affect the implemen-
tation of a value analysis recommendation. Internal bias caused by entrenched
attitudes within organizations can cause deviations from good value. That is, bias
can gradually add to the cost, or decrease the performance or overall acceptance,
of the product. Miles lists some important factors that cause this: subjective judg-
ments, accountability for sales or performance as contrasted to profits, cause-and-
effect relationships, feelings and emotions of organization members, and anti-new
perspectives. Several case studies are presented that demonstrate factors already-
discussed. In Section 11-8, understand the seventeen points on "management be-
liefs" which can assist in implementing value recommendations.
The final results are reviewed for the case histories used in various earlier chap
ters of the text, finctional Analysis: The Stepping Stones to Good Value. The
influence of management is clearly shown. Notice that where the implementation
was incomplete or nonexistant, important planning elements were missing. Think
of your own organization and determine where problems could arise in implement-
ing a properly planned value engineering study.
14.3 Written Assignment 14
1. How good must management's decisions be?
2. What is the first step in setting the problem, or mind tuning?
3. What is the purpose and result of the second problem-setting step?
4. What does the third problem-setting step do?
51' What two types of work are required t o improve value?
6. Why is it difficult to create a constructive decision-making environment?
7. List the situations where decisions result in extra cost?
8. List the five most important of the "Management Beliefs that Support Com-
petitive Value Decisions" from the list of 17 found in Section 11-8 of the
Miles Excerpts.
9. 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.
10. List the five results accelerators emphasized in this unit.
Value Engineering specialists are becoming more in demand as corporations face
global competition, and tight government agency budgets clearly indicate shrink-
ing resources. Units 12-14 addressed some of the factors involved in training,
interrelationships, and management's role. A large part of the success or failure of
value engineering studies depends on the degree of motivation of the VE specialist
and the organization. Many of these motivational points were covered in Unit 14.
This final unit will address some of the most important motivational factors and
how they affect the value specialist, the project, and the organization.
15.1 Reading Assignment
Fbnction Analysis: The Stepping Stones to Good Value, Snodgrass and
Kasi. Chapter 16, Section 16.3
"% %
15.2 Study Notes
Every professional faces problems in his career. Value specialists are no exception,
and many of the problems involve change. Change recommended for a product
design or in an organization's procedures. The key techniques the value specialist
uses are strange to the "first timers." Converting a structured bill of materials
containing familiar items such as materials, labor, and overhead into verb/noun
functions, the two types of FAST diagramming, and allocation of cost does not
come easily. The techniques do become easier with diligence, and later come the
rewards for which value engineering is known.
One of the top value specialists in the United States took a course requiring the
learning of customer-oriented FAST, a change from the usual technically-oiiented
FAST with which this individual was familiar. The individual became so emotional
that he could not continue with his team. The team members were learning the
technique for the first time and followed the rules to a satisfactory result. Every
value specialist must learn to cope with such situations and must realize that often
timeedone will help some individuals adjust to change.
A dominant team member will sometimes demand that the team stop "wasting
time" on silly verblnoun functions and get t o the important activity of creativity.
Giving in to such an individual spells disaster because the poor results from such
a study will reflect on the value specialist. Following the stepby-step job plan
from the information phase through the various screens of the evaluation phase
can raise real questions about the use of the team's time. Most team members
are action-oriented, "get the job done" types, and it is difficult not to jump ahead
when one sees a potential solution.
Unit 3 covered gathering the necessary data, and this can also become a prob-
lem. An organization can take months trying to decide whether t o do a value
engineering study, but after management makes the decision, instant action is
desired. Gathering information takes time, and without the proper information
b k
another major pitfall has been placed in the road to a successful study.
Who should be on the team is often another obstacle the value specialist must
face. Successful projects are always the output from the right individuals following
the proper job plan and using the correct data. Anything less, at the very least,
detracts from the organization and definitely injures the reputation of the value
Creative thinking is another problem in motivation. Individuals, working on
the same types of construction for long periods of time, develop methods that
are difficult to change. The dilemma the specialist faces is that usually these
individuals are the very persons who should be on the VE team. Again, time is
the answer. Allow enough time for creating by functions t o produce better and
better answers, Always make positive suggestions, never criticize.
Most important, remember that you are working with a system that works.
Refinement has been made over many years. Ideas have been borrowed from other
approaches. Never lose faith. The system is the solution to the most complex
probleq. Trust the system.
~ h e ~ q ~ i v a t i o n s for becoming a value specialist are as great or greater than
the problems just discussed. There is no similar opportunity in an organization
t o learn and understand how things are done. What makes it work? Where do
the problem areas exist? For many, the time spent as value specialists will be a
training period, a period for upper managkment to observe your skills in handling
people as well as problems, and decide that you are just the right candidate for a
higher level job.
Equally important, value specialists enter upper management as specialists.
They are recognized on an equal basis with their peers, who are supervisors. There
are two reasons for this. First, the unique technique of value engineering tackles
a total project and points out the specific problems. Second, it pushes the team
members toward new technologies.
Review Section 16.3 in your text for further evidence that the techniques of
the value specialist and the VE system provide ready answers to several of John
Nesbitt's mega-trends; weapons against many of W. Edward Demming's many sins;
and procedures for the majority of Peter's and Waterman's eight basic principles.
Finally, the successful organization, corporate or government, has the ability to
work towards common objectives that are the right objectives. Carefully read the
final paragraph in the text, finctional Analysis: Stepping Stones to Good Value
for it may contain the key element for your organization's success.
15.3 Written Assignment 15
This is the final assignment in your C240-A362 Value Analysis course. In preceding
units, we have asked you to learn the tools, techniques, and actions of Value
Analysis. In this assignment, we wanyyou to think about various aspects of how
and why you may or may not be influenced by using Value Analysis. Please
respond t o each of the following questions by writing a brief, concise essay. Please
do not be wordy! There are no correct answers, just well-considered thoughtful
answers. Read all of the questions before answering any. Good luck id your Value
Analysis career.
1. Explain why and how you will (or will not) use value analysis on your job.
2. Explain what additional things you will be doing to improve your value
analysis skills. (If your answer is "nothing," then explain what additional
things you are going t o do to improve your job skills.)
3. Discuss some roadblocks you regularly encounter on your job. How do you
think you might overcome them in the future?
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University credit earned: We will send tm-
Room 104 Extension Building
scripts to the office or institution you specify. To
432 North Lake Street
have credits earned during a summer or vacation
Madison, WI 53706-1498
period transmitted in time for registration, you must
complete aU work, including the examination, at
The charge for each transcript is $3.50 @rice 1 least rwo weeks before the start of a semester.
subject to change; see Independent Study Student High school credit: We will automatically send
Handbook for current price). Make check or money a transcript to Wisconsin high schools for students
order payable to UW-Extension; payment must who have had a school official si n their applica-
accompany your request. tion for enrollment. If you are on8 % f Fese students
Your transcript will show university credits, high and wish to have only one transcript issued, you
school credits, continuing education units (CEUs), need not fill in this form.
NOTE: Please mail this entire sheet separately; do not include it with an assignment.
Name Registration no.
Address (include ZIP)
Date submitted
Course for which transcript is requested
.* %
Date of completion
Number of transcripts requested (@ $3.50 each)
Send transcript to (name of institution and address):
Send additional transcripts to:
University of Wisconsin-Extension Independent Study
Course Evaluation Form
Please help us improve the qudity of our This evaluation form is a postage-paid self-
courses and service to you by answering the mailer, so all you have to do after completing
following questions. the form is remove it from the Cowse Guide,
If, for some reason, you do not complete the fold it in half, tape or staple it shut, and mail
course, it is still important that we hear from it. Please do not include the form with a writ-
you. All responses will remain anonymous. ten assignment. Thank you for your help.
Course number and name k
Approximate date of enrollment (month and year)
> a ? ? , >
1. What was your primary reason for enrolling in this Independent Study corre-
spondence course? (Circle one)
(a) University credit (b) High school credit (c) Professional improvement
(d) Personal interest (e) Teacher certification (f) UW-Extension certificate
(g) College entrance requirement (h) Vocational school credit
2. Why did you take this course through Independent Study? (Circle one)
(a) Prefer the Independent Study method of learning (b) Family commitments
require my presence at home (c) Constraints of job responsibilities (d) Class
scheduling conflict (e) Price more reasonable than other options (f) Course
only offered through Independent Study (g) Incarceration (h) Physically
unable to attend classroom sessions (i) Not in the U.S.
3. To what extent did this course meet your expectations?
(a) More than met my expectations (b) Met my expectations (c) Didn't meet
my expectations
4. How much do you feel you learned in this course?
(a) A lot (b) A moderate amount (c) A little
5. How helpful was the Independent Study Course (or Study) Guide in providing
information and directing you through the course?
(a) Very helpful (b) Helpful (c) Not helpful
6. How clear was the Course (or Study) Guide?
(a) Very clear (b) Moderately clear (c) Unclear
7. How much was your understanding of course content helped by what you had to
do to complete the written assignments?
(a) Very much (b) Somewhat (c) Not much
8. How much work did the written assignments require?
(a) An excessive amount (b) An appropriate amount (c) Too little
How helpful were the self-tests or self-check exercises in the course?
(a) Very helpful (b) Helpful (c) Not helpful (d) Didn't include self-tests
If this course had examinations, were they fair and appropriate?
(a) Yes (b) No
How useful was feedback from your instructor on written assignments?
(a) Very useful (b) Moderately useful (c) Not very useful (d) Instructor
made no comments
Would you have benefited from more written feedback?
(a) Yes (b) No (c) Don't know
Would you have benefited from speaking with your instructor?
(a) Yes (b) No (c) Don't know
In general. do you feel that your written assignments and examinations were
returned in a reasonable time?
(a) Yes (b) No
Was the grading system for the course fair?
(a) Yes (b) No (c) Don't know
How relevant was the primary textbook for the course?
(a) Very relevant (b) Relevant (c) Not relevant (d) Didn't have a textbook
How did the audio or audiovisual matenals relate to the course?
(a) Provided new and valuable information (b) Supplemented information in
the textbook(s) but introduced no new topics (c) Could have been eliminated
without detriment to course content (d) Were optional and I didn't use them
(e) No audio or audiovisual materials in the course
How do you think this course would rate compared with the same course given
in the classroom?
(a) Superior to (b) As good as (c) Inferior to
Did you feel isolated from your instructor while taking this course?
(a) Not at all (b) Somewhat (c) Very much
How hel pl l was the Independent Study+Studenr Handbook?
(a) Very helpful (b) Helpful (c) Not helpful (d) Didn't read it
Did you have problems or difficulties with any of the following registration
procedures or considerations?
(a) Course description Yes No
(b) Application form Yes No
(c) Payment procedures Yes No
(d) Advising Yes No
(e) Delivery of materials and textbook(s) Yes No
(f) Examination procedures Yes No
If you answered yes to any of the above please explain:
Did you contact the Independent Study adviser to students before or while you
were enrolled in this course?
(a) Yes (b) No (c) Didn't know there was an adviser
If yes, why?
Did you need to request an extension of time to complete the course?
(a) Yes (b) No
Did you withdraw or get dropped from the course before completing it?
(a) Yes (b) No
If you didn't complete the course, why didn't you? (Circle one)
(a) Course was too hard (b) Course was too easy (c) I had learned what I
wanted or needed to know (d) Course was not what I had expected or needed
(e) I didn't have enough time (f) Course didn9t hold my interest ''b) Other
(please specify)
Would you recommend this course to someone else?
(a) Yes (b) No (c) Don't know
Why did you choose this UW-Extension Independent Study course rather than a
similar independent study course from another institution? (Circle one)
(a) Reputation of program (b) Course not offered elsewhere (c) Price
(d) Good previous experience with UW-Extension (e) I didn't compare courses
(f) Other (please specify)
Would you take another Independent Study correspondence course?
(a) Yes (b) No (c) Don't know
What course(s) would you like to have offered by UW-Extension Independent
..)- P
If you are a student with a qualified disability, did Independent Study provide
you with reasonable accommodation?
(a) Yes (b) No
If no, please tell us what we could do better:
Comments or suggested improvements:
Independent Study-Room 209
432 North Lake Street
Madison, Wisconsin 53791 -9942
University of Wisconsin-Extension Independent Study
What's Next?
You are one of more than 11,500 students currently
enrolled in the University of Wisconsin-Extension
Independent Study program.
Now that you have completed your course, why
not explore one of the many other opportunities
offered through Independent Study? Nearly 500
courses are available in diverse fields such as for-
eign languages, business, mathematics, history, art,
English, physics, philosophy, social studies, and
Credit. You can take university-level courses
toward a degree, high school courses for credit
toward a diploma, courses earning continuing edu-
cation units (CEUs) for professional advancement,
and courses for credit in the Wisconsin Technical
College System (WTCS). Some of these courses
contain audio or video cassettes for enhanced
learning and educational enrichment.
Directed Study. Some academic departments at the
University of Wisconsin-for example, French,
History, and Spanish-offer a directed-study option,
either for university credit or for continuing edu-
cation units. These are individualized courses de-
signed to serve your special needs. For further
information, check the Independent Study Catalog.
Arrangements must be made with the academic de-
partment before you register for a directed-study
Certificate Programs. You may also be interested
in one of our certificate programs. The General
Studies Certificate acknowledges a student's accom-
plishment in completing thirty semester credits in
the humanities, social sciences, and other college
fields. The Certificate of Achievement recognizes a
student's accomplishment in completing thirty
semester credits of the student's choice. Certificate
programs are also offered by the Business and
Economics department in the areas of general busi-
ness, small business, accounting, purchasing, and
1 personnel management. No special application pro-
cess is required. You can even sign up after you
have completed one or more courses in your chosen
b. 1
Personal Enrichment. Or if you just want to
stretch mentally, to learn for the joy of learning,
you can pick a course that appeals to you and take
it because you've always wanted to learn more
about the subject. Our Independent Study Catalog
is filled with numerous learning opportunities.
Additional Information. To obtain a free Indepen-
dent Study Catalog, or for advice on making a
learning decision, write (using the form below) or
call the
Adviser to Students Office
Room 104 Extension Building
432 North Lake Street
Madison, Wisconsin 53706-1498
(608) 263-2055 or toll free (800) 442-6460
FAX (608) 262-4096 '- %
If you'd like to stop by, come anytime from 7:45 to
11:45 A.M. or from 12:30 to 4:30 P.M. Monday
through Friday.
Please send me a copy of your Independent Study Catalog.
I am interested in the following: university credit high school credit continuing education
WTCS credit certificate programs 0 directed study professional or personal