6-b1) Product Function Analysis:

Value Engineering (VE) and

Value Analysis (VA)

Abdulaziz M. El-Tamimi
 What is Value engineering and Value Analysis?

Value engineering (VE);

• It is a systematic method to improve the "value" of goods or products
and services by using an examination of function. Value, as defined,
is the ratio of function to cost
• Value can therefore be increased by either improving the function or
reducing the cost.
• Value engineering uses rational logic (a unique "how" - "why"
questioning technique) and the analysis of function to identify
relationships that increase value.
• It is considered a quantitative method similar to the scientific
method, which focuses on hypothesis-conclusion approaches to test
relationships, and operations research, which uses model building to
identify predictive relationships.
 What is Value engineering and Value Analysis?

Value Analysis (VA);

• It is an orderly and creative method to increase the value of an
item.
• This “item" can be a product, a system, a process, a procedure,
a plan, a machine, equipment, tool, a service or a method of
working. Value Analysis, also called Functional Analysis was
created by L.D. Miles.
• The value of an item is how well the item does its function
divided by the cost of the item (In value analysis value is not
just another word for cost):
• Value of an item =performance of its function / cost
 What is Value?
 Value: That amount of some commodity, medium of exchange, etc.
that is considered to be equivalent to something else (Oxford English
Dictionary)
 The Utility theory : The value of something is related to its utility -
in the sense that the more uses an item has the greater is its value
• Iron and Gold
 The Labor theory: This theory suggests that the value and labor are
proportional - the more labor work done on an item the higher its
value will be
• One can increase the value of some product by simply selecting the
mode of production with the highest labor costs
 The Cost theory: The value of some item is equated by its cost - the
more it costs the more value it gain
• The value of a Christmas tree would be the same in June is as it in
December
 The Price theory: The price paid in exchange for an item is a
measurement of its value
• The inconsistency here is that if the value of the item to be traded
were the same to the buyer and the seller, neither would be
motivated and the exchange would never be executed
 What is Value characteristics?

• Value is relative and is not an inherent feature of

anything
• Value can be measured only by comparison
• Value is the relationship between what someone wants
and what he/she is willing to give up in order to get it
• The value of an item can be measured only by the
individual desirous of attaining or retaining it
 Types of Value in VE
Value Engineers are most concerned with Economic Value, which
itself can be subdivided into four types,
– Use value:
• The work or service it can perform or help it can accomplish
– Esteem Value:
• Describes the feature or attractiveness of an item that causes it
to be desired
– Cost value:
• Which can be defined as the total cost of producing a particular
item and it represents the effort that must be expended to
acquire an item. (The sum of labor, material and overhead costs)
– Exchange value:
• Is the quality of an item that allows trading the item for
something else
• It is a measure of all the properties or qualities of an item that
could make someone give something else up for it
 Defining Value

• The value of a product is a rating of the acceptance

of a product by the customer and hence the final
index of economic value.
• The value of a product is always relative and it is the
result of a combination of the specific value types.
• In general; value increases with higher exchange,
esteem and use value but decreases with higher cost
value
 “Some” Definition of Value Engineering

 Value Engineering is a study of all possible ways of developing new

products that will perform required and unequivocally defined functions
at minimum cost (Fasal, 1972)
– Value Engineering concentrates its cost reduction effort on a search
for a new solution rather than an already accepted solution
 Value Engineering is a proven management technique using a
systematized approach to seek out the best functional balance between the
cost, reliability, and performance of a product or project (Zimmerman
and Hart, 1982)
 Value Engineering is an organized approach for obtaining optimum value
for every dollar spent, while maintaining or improving quality, safety,
reliability, and maintainability. It is a problem-solving technique based on
analysis of the project functions demanded by the owner(s) in order to
satisfy the end user(s) ( Mansour, 1994)
 Value Engineering IS

 System Oriented
– a formal job plan to identify and remove unnecessary costs
 Multi-disciplined Team Approach
– Teams of experienced designers and VE consultants
 Life Cycle Oriented
– Examine the total cost of owing and operating a facility
 A Proven Management Technique
 Function Oriented
– Relates function required to the value received
 Value Engineering IS Not
 Design Review
– It is not intended to correct omissions made in design nor to
review calculations made by the designer
 A Cheapening Process
– It does not cut cost by sacrificing needed reliability and
performance
 A Requirement Done On All Designs
– It is not a part of every designer scheduled review, but a
formal cost and function analysis
 Quality Control
– It does more than review fail-safe reliability status of plant
or product design
 How value analysis works?
Value analysis technique involves cost reduction activities by relating
the cost of components to their function contributions.
To increase the value of products or services consider the function of
individual items and the benefit of this function and balancing this
against the costs incurred in delivering it.
Then the task becomes to increase the value or decrease the cost.
 How value analysis works?
Example; In analyzing a pen, the following table is used to connect
components with the functions to which they contribute and hence identify areas
of focus.
Value Engineering Techniques : Job Plan

Job Plan
– Value Engineering can be thought of as the use of
specific techniques in an organized manner
– This organization is provided by the job plan which
can be defined as “thought processes and activities
needed to properly perform a value engineering study”
(Mansour, 1994)
Value Engineering Techniques : Job Plan
1. The Information Phase
 Information related to the study is to be gathered
2. The Creative Phase
 the item being studied are generated by the use of creative thinking
 In this phase all suggestions are recorded regardless of there
impracticability, and no judgment is made about any suggestion in this
phase
 Alternates methods of accomplishing the same essential function of
3. The Evaluation Phase
 The alternates resulting from the previous phase are now analyzed, not
to eliminate the impractical ideas , but to improve them to the point of
acceptance
 Then the ideas that have the greatest chance of success are selected for
he next phase
Value Engineering Techniques : Job Plan

4. The Investigation Phase

– Detailed development of the ideas selected in the previous phase are
made
– Possible roadblocks to implementation are recognized
– The preferred proposal is planned along with any other alternative
proposals if feasible
5. The Reporting Phase
– All the data regarding the preferred proposal is presented to those
having the power to accept or reject the proposal
– This phase can be thought of as a selling task, where the data has to be
presented in a way that can be easily understood by the authorized
people, to make the final judgment about the proposal
 Value Engineering Techniques :
Functional approach

• Cost is related to function not to production

• The production engineer asks
– How a part can be produced more cheaply
• The value engineer asks
– How the function performed by the part can be provided by the
least cost
• For example
– If it was required to make an ashtray, a production engineer might
conduct a study which results in changing the base material or
changing the production method, while a value engineer study
could result in making an ashless cigarettes
 Value Engineering Techniques :
Functional approach
A value engineer must ask and answer the following series of
questions:
 Q1: What is it ? The answer will establish the parameter of the study
 Q2: What does it do ? The answer will provide the definition of the function
 Q3: What does is cost ? The cost here refers to the total cost of the item
 Q4: What is the function worth ? The evaluation phase starts with the answer
of this question
 Q5: What else will accomplish the function ? The creative phase is entered.
All the possible alternatives are listed, and the ideas that best perform the
function and have the highest degree of acceptance and possibility for
implementation are selected
 Q6: What will that cost ? Costs are estimated and assigned to the best ideas,
this will refine the possibilities to a few ideas and will establish priorities for
these few. The best of these ideas are selected for further development
Value Engineering Techniques :
Functional approach
6-b2) Product Function Analysis:
FAST Method

Abdulaziz M. El-Tamimi
 VA &The function of a product;

Value analysis technique involves cost reduction

activities by relating the cost of components to their
function contributions.
Value analysis defines the function as:
 A “basic function”: It is anything that makes the
product work or sells. A function that is defined as
"basic" cannot change.
 Secondary functions: It is also called "supporting
functions", described the manner in which the basic
function(s) were implemented. Secondary functions
could be modified or eliminated to reduce product cost
 Basic Function Model

Basic Function:
– It is the overall intended purpose of the product [WHAT
the product is supposed to do]
– It is a statement of a clear, reproducible relationship
between the available input and the desired output
– It is an action statement represented by “Verb-Noun”
Examples:
 Fingernail Clipper  Clip Nails
 Car  Transport People
 Copier Machine  Make Copies
 Secondary Function Model

Secondary Function[Sub-Function]
 Overall functions are divided into smaller functions
[A component of a product function]
 The relationship between overall functions and sub-
functions is usually governed by a constraint or input-
output relationships
 Example:
 Copier  Make Copies
– Make Color Copies
– Make B/W Copies
– Zoom in/out Copies
 Function Model

 Function is an abstraction Process:

 It is The process of ignoring what is particular or incidental
and emphasizing what is general and essential.
 Functions are satisfied by subsets of the product through
their operation
 Constraint Relationship:
 It is a statement of clear criterion that must be satisfied by a
product and requires consideration of the entire product to
determine the criterion value
 Constraints are satisfied by properties of the entire product
Function hierarchy
 Function Modeling: FAST Method

Function Analysis System Technique (FAST)

 It is concerned with the study of functions and function interactions
by asking three questions and then diagramming the results.
 The steps necessary to construct the FAST diagram are as follows:
1) Prepare a list of all the functions by assembly or system using the verb
and noun technique of identification of function.
2) Select the function that you consider to be the basic function.
Determine the position of the next higher and lower function by
specifically answering the following logic questions:
– "How?": How is this function accomplished?
– "Why?": Why is this function performed?
– "When?": When is this function performed?
 Function Modeling: FAST Method

This means that:

• "Why?" on the left of the function identified by the question
"How?" on the right.

The "Why" and "How" logic

 Function Modeling: FAST Method

3. Determine logic questions to each function and establish the relation

between the functions at higher and lower levels that are required to
perform the highest-level basic function. When this has been
properly done, each function in the entire series is illuminated on
the left by "Why it is done?" and on the right by "How it is done?"

Example

The "Why" and "How" function diagram.

 Function Modeling: FAST Method

4. Next the question "When?" is asked of each function, and it is

diagramed in time sequence in relation to the other functions so that
examination of the diagram vertically illuminates the matter of
which functions are to be accomplished at the same time and the
sequential relationships of all others.
• Example

Basic FAST diagram

 Function Modeling: FAST Method

5. Continue FAST diagram until we arrive at a function that is an

accepted interface function for the scope of the problem. the
scope of the problem is defined and outlined on the FAST
diagram by the scope lines (vertical broken lines).

6. The arrangement of these functions, as shown by the FAST

diagram, establishes the critical path. The critical path identifies
the functions that are the result of other functions to be
performed.
Function Modeling: FAST Method
Function Modeling: FAST Method
Function Modeling: FAST Method
Function Modeling: FAST Method
Customer

Function Analysis System Technique Diagram (FAST)

NEEDS

•Essential to the performance of

the task/function
•Fulfills basic needs of the users

Enabling the Secondary

Function Solution
Secondary

Function
Enabling the Secondary Solution
Function

Basic Function PROJECT SCOPE

Secondary
Enabling the Secondary
Solution
Function
Function
WANTS
WHY HOW
•Not essential to the performance of the
task/function
•Essential to productivity increase,
project acceptability
•Fulfills the wants of the user
Function Modeling: FAST Method
FAST diagram of overhead transparency projector.
 Function Modeling: FAST Types
Types of FAST diagram

Task-FAST: Focus on the aspects of customer needs and gives

a total view of the product function (Ex: for sharpener the
task function is to provide shaving of pencil)

Technical-FAST: Focus on detail aspects of

product/component functions within the design (Ex. For
sharpener blade function -pencil holder function)
 Function Modeling: FAST Basic Steps
Function analysis is completed in three simple steps.
1. Identify the High Order Functions (for which the customer is
buying the product)
2. Construct a Function Tree by asking “How?” a function is
performed. Functions are described in two or three word verb
and noun combinations wherever possible. Eventually the
question of “how?” will be answered with a part name or a
feature of a part (such as surface finish).
3. Verify the Function Tree by starting at the bottom and asking
“Why?” a function is performed or a component or feature
exists
 Function Modeling: FAST Method steps
1) Step 1: Construct two vertical, dashed lines, one to the extreme left and one to the
right. These lines define the scope of the product development objective.
2) Step 2: Place the basic function to the right of the left-hand scope line. Pose the
question, “Why is this the basic function being performed?”. Place this function to
the left of the basic function and connect with a line, beginning the critical path.
3) Step 3: Generate functions to the right of the basic function. These should always
follow how and why answer these functions with lines to define the furtherance of
the critical path ring scheme and represent the secondary functions. Connect
4) Step 4: The critical path will end with an “assumed function”, outside the right
scope line. This function is external to the product.
5) Step 5: Generate the remaining secondary functions by placing them under the
functions that relate to the basic or critical path secondary functions. These
functions either occur at the same time or are caused by the functions at the critical
path.
6) Step 6: State the objective of the development effort above the basic function. In
addition, add one-time or all-time functions to the top of the diagram
 Example Function Analysis: ballpen

Let’s take a common ball point pen as an example.

It’s High Order Functions are to write on paper, be
aesthetic and ergonomic, and to prevent loss from a
pocket. These are the things that a customer is buying.
To achieve these three functions there are many
secondary functions that can be constructed into a
function tree as shown below.
Example Function Analysis: ballpen