Lean Design With Ve PDF

Salt Lake City Chapter #085
Webinar on
LEAN Design with Value Engineering
Presented by
Jim Wixson CMfgE, CVS-Life
CEO Wixson Value Associates, Inc
May 21, 2009

We will begin at 6:00PM MST
Sponsor for tonights Webinar

The Member Engagement Initiative of SME
www.sme.org/mei
About The Webinars Presenter

Jim Wixson
Jim Wixson is the Founder and CEO of Wixson Value Associates, Inc.
Inc. a
consulting company specializing in product and process improvements
improvements and
new product development. He brings over 30 years of industrial
experience in Systems Engineering, Value Engineering, Industrial and
Manufacturing Engineering, LeanLean-Six Sigma/Process Improvement, and
Project Management to his clients, and has worked with/for Fortune
Fortune 500
Companies including INL, The Boeing Company, and Raytheon
Corporation.
Jim has been a featured speaker and author of several papers and articles
for SME, INCOSE, PMI, ASQ, SAVE International, Partners in Business,
Business,
Shingo Prize Operational Excellence Conference and the Systems
Dynamics Society.
For The Society of Manufacturing Engineers, Jim is the current Chapter
Chapter
Chair of the Salt Lake City Chapter #085, and over 20 years of
membership he has held numerous volunteer leadership roles in The
The
Society as well as other professional associations.
Lean Design with

Value Engineering
Jim Wixson, CVS-Life, CMfgE-Life
President, Wixson Value Associates, Inc.
jrwixson@wvasolutions.com
(208) 520-2296
http://wvasolutions.com
Agenda
I.
What is Lean Design?
II.
How does Value Engineering (VE) facilitate

creative Lean Design?
III.
Value of VE. Why use it?
IV.
What is Function Analysis and FAST?
V.
The benefits of functional thinking.
VI.
The VE Job Plan & How it Relates to Lean

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

methodology.
VIII.
Questions and Answers
5/21/2009
Wixson Value Associates Inc.
Lean Design

Lean Design is applying lean principles to Product Development

Lean Design is achieved through a organized effort by a
interdisciplinary team to develop, or improve a product that
accomplishes the necessary functions that make it work and sell at
the lowest possible lifecycle cost within the constraints of safety to
the user and the environment.
Lean Design focuses on "balanced excellence" in product design by
focusing on the elimination of non-value-added waste in both the
process of development and in the design of the products
themselves. (Technology Perspectives, http://www.design-for-lean.com/lean%20design.html)
Lean Design can be viewed as Value Engineering repackaged with
improvements to the implementation phase using lean principles,
DFM/A, and 3P.
Lean Design requires the application of the VE methodology to be
effectively applied.
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Waste in Product Development

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

enhancement must be designed, produced, maintained and supported
and customers pay the price in greater complexity and greater risk of
failure (Design to Cost is important).
Overloaded Resources
Lean Design teams appreciate the value of knowledge, and ensure that
knowledge is easy to capture, reuse and always used to make
decisions, thus avoiding reinvention of key products or features
Lean Design teams know that overloading resources makes them

slower and less flexible, and that task-switching costs engineers
valuable time.
Unintegrated Design
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Lean Design teams strive to understand and then manage their designs
in an integrated system, so that they can focus innovation on areas that
improve the market performance of their entire portfolio of products.
Serial Product Evolution

(A Language Problem)
Identify
opportunity
Marketing
Express
Need
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Engineering
Production
Conceptualize
solution
Produce
Products
Satisfy
need
A Failure to Communicate
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A Product Definition Process..
Traditional Product Cycle
Rework
Configuration
Rework
Design
Rework
Analyze
Rework
Build Plan
Rework
Schedule
Build
Co-located Team Environment
Lean Design Product Cycle

TEAM
Configuration
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Design / Analyze / Build Plan / Schedule

Build
Savings in
Time to market
Product cost
Life Cycle Cost
Etc.
7
What is Value Engineering?

VE is an intensive, interdisciplinary
problem solving activity.
VE is uses an organized approach toward

problem solving.
VE focuses on the functions performed by

products, products, or services and what is
required to perform these functions safely
and at the lowest possible cost consistent
with customer requirements.
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What is Value Engineering?

Value Engineering is a proven methodology that

has saved private industry and governmental
agencies $Billions since its inception in 1947.
Value Engineering can be used to generate

significant cost savings and cost avoidance by
identifying potential problems and ways to avoid
these problems before they occur.
The VE approach promotes the philosophy of Do

It Right the First Time.
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Value Study Methodology

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The value team study process matches the quick-hit, small

team process that Tom Peters and Nancy Austin describe in, A
Passion for Excellence, as a powerful alternative to the throw
resources at it approach to problem solving (Peters and Austin,
1985).
The strength of the value team process we use is in the prestudy phase, especially when the Executive Review Board
(ERB) members include the Customer (Air Force, Army, Navy,
airlines, FAA, etc), and suppliers. (ERB is described in the
attached pre-event paper.)
10
VM, Six Sigma and Lean?

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Doing Things Right

is the main focus of
Lean and Six Sigma
(Process Improvement)
(Customer Satisfaction)
Doing The Right Thing
is the main focus of
Value Methodology
(Function/Cost balance)
(Customer Perceived Value)
Both Are Required
for economic profit
11
Lean Design - Goals

Resource Efficient LEAN
Capable of very high yields regardless of
volume
Not affected by process variation: Robust
Lead to a flawless launch
Meets
Performance Targets (Quality)

Meets Delivery Targets (On Time)
Meets Financial Targets (Target Cost)
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12
Lean Design - Process

Identify Customer requirements

Estimate Baseline
DOE, CAE, FEA, Simulation, Analytical models.
Verify Design and Process

VE, 3P, TRIZ, Brainstorm, Ways of Nature, etc.
Optimize Design and Process Concepts

VE, DFMA
Generate, Evaluate, Select Design & Process Concept(s)

Benchmark, Patent search, Product Scorecard, Process Map, VSM
Determine Functional Requirements

VE, QFD, Critical to Quality (CTQ)
PFMEA, Design Verification Planning and Reporting (DVP&R),

Production Part Approval Process (PPAP)
Maintain the Gains

Control Plan, SPC, Kaizen
(from Superfactory, Lean Enterprise Series)

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13
PPAP
Production Part Approval Process:

The Production Part Approval Process (PPAP) outlines the methods
used for approval of production and service commodities, including
bulk materials, up to and including part submission warrant in the
Advanced Quality Planning process. The purpose of the PPAP
process is to ensure that suppliers of components comply with the
design specification and can run consistently without affecting the
customer line and improving the quality systems. PPAP ensures that
you will achieve the first time quality and will lower down the cost of
quality.
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14
Example Tools Used in the VE Job Plan

Project
Planning
Frame Issue
Information
Search
Select
Investigate
Analyze
<
>
<
>
Questionaires
Brainstorm
Issues and
Concerns
Action Log
Items
Process
Check
Nominal
Group
FAST
Hi-Cost
Drivers
Mgmt.
Focus
Agendas
Impact
Changeability
Pareto
Histograms
Scatter Ana.
Decision
Analysis
Charter
Document
Cause and
Effect
Check Lists
Scatter Dia.
Flow Charts
Cost Model
Problem
Definition
Cost
Targeting
Imagineering
Nominal
Group
Brainstorm
Run Charts
Avg. and
Range
Charts
QFD
TOC
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Implementation
Project Sessions
Speculation
Planning/Presentation
Speculate Evaluate Develop
<
>
<
Cost
FAST
Brainstorm Champion Analysis
Pareto
Cluster
GFI-Delphi Benefit/
Function
Nominal
Rank and
Risk
Analysis
Group
Rate
Control
Cost
Imagineer- Pareto
Chart
Analysis
ing
Benchmark ROA/ROI
Histograms Experts
Paired
IRR
Impact
Other
Comp.
Brainstorm
ChangeCreative
Multivoting Break-even
ability
Thinking Cause and
Analysis
Life-CycleTechniques Effect
Regression
Cost Alloc.
Impact
Analysis
Design for
Change- Market
Assy & Mfg
ability
Survey
Value Stream
Histograms Arrow
mapping
DOE
Diagram
(VSM).
FAST
Affinity
TOC
Diagram
Design for Life-CycleAssy & Mfg Cost Ana.
VSM.
FAST
VSM
Post-Sessions
Present
Implement
>
<
VU Charts
Flip Charts
Milestones
Strategy
Proposal
Dev.
VSM
Project
Mgmt.
MBO
IPT
Leadership
Brainstorm
CM
Design for
Assy & Mfg.
FAST
AIW
Lean Event
Verify
>
SPC
Check Lists
Questionaires
Histograms
Control
Charts
Run Charts
Avg. and
Range
Charts
CM
15
Value Methodology Timeline

VE adopted
by NASA ofc
of facilities.
Larry Miles
assigned to
cost
reduction at
GE
Bill Allen
initiates
Boeing VE
Program 1958
Invents Concept
Value = Function /
Cost
1947
Navy adds
VE
incentive
clause
1952 1955
VE a success,
training of
employees and
suppliers
begins
Charles
Bytheway
invents
FAST
1968 69
VE included
in ASPR for
military
procurements
1959 1962 1964

SAVE
formed in
Wash. DC
on Oct.22,
1959
Army
Corps of
Engineers
begins VE
training
Boeing VE
Program
stopped 1968
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Larry Miles
takes VE to
Japan.
1969
1970
First VE
incentive
clause
published in
Fed.
Register,
GSA staffs
for VE.
Govt
agencies
adopt VE in
compliance
with OMB C
A-131
Larry
Miles
dies.
Jerry
Kaufman
updates
Boeing on
VE/FAST
- 1989
1985 1988 1990 1993
OMB
circular A131
published
requiring all
Federal
Agencies to
use VE to
identify and
reduce nonessential
costs.
Today
OMB
circular A131 passes
Sunset
Review
16
FEDERAL DEPARTMENT OR AGENCY

DOLLARS SAVED BY VALUE ENGINEERING -- FY
95
Agency
FY-95 VE Savings
Defense Department
$734,385,000.00
Department of Transportation
$686,373,874.00
General Services Administration
$109,608,453.00
Army Corps of Engineers
$59,554,000.00
Department of the Interior
$22,427,840.00
Department of Agriculture
$8,764,155.00
Justice Department
$5,990,387.00
Veterans Affairs
$2,270,800.00
Health & Human Services
$1,884,464.00
Agency for International Development
$800,000.00
State Department
$91,721.00
TOTAL $1,632,150,694.00
5/21/2009
17
SUMMARY OF PAST VE SAVINGS

Federal-Aid Highway Program
FY 2007
FY 2006
FY 2005
FY 2004
FY 2003
316
251
300
324
309
Cost of VE Studies Plus Administrative Costs
$12.54 Mil
$8.15 Mil.
$9.80 Mil.
$7.67 Mil.
$8.42 Mil
Estimated Construction Cost of Projects Studied
$24.81 Bil
$21.53 Bil.
$31.58 Bil.
$18.7 Bil.
$20.48 Bil.
2861
1924
2427
1794
1909
$4.60 Bil
$3.06 Bil.
$6.76 Bil.
$3.04 Bil.
$1.97 Bil.
1233
996
1077
793
794
$1.97 Bil.
$1.785 Bil.
$3.187 Bil.
$1.115 Bil.
$1.110 Bil.
157:01
219:01
325:01
145:01
132:01
Number of VE Studies
Total No. of Recommendations

Total Value of Recommendations
No. of Approved Recommendations
Value of Approved Recommendations
Return on Investment
Avg. project savings: 8%
http://www.fhwa.dot.gov/ve/index.cfm
5/21/2009
18
Thought for the day:

When you always do what you have
always done - you always get what
you have always gotten.
Socrates
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19
Who Casts the Biggest Shadow?

Influence
70%
20%
5%
5%
Overhead
30%
Design
5%
5/21/2009
Material
50%
Labor
15%
Product Cost
20
When to do Value Engineering?
85% of Cost Committed
5% Cost Expended
100
Percent of Life-Cycle
Cost Committed
Percent
90
95
85
80
70
70
60
50
40
30
20
30
Brief Window of Opportunity
10
Percent of Program
Cost Expended
Concept
Development
Preliminary
Design
Detail
Design
Production
Product Development Phase

5/21/2009
Wixson Value Associates

Inc.
42
21
When to do VE?
No engineering
Change Revision
Document Revision
Re-Test/Re-qualification
Drawings Released
Tooling Changes
Net Savings from VE
Total Cost of VE Implementation
VE Implementation
beyond this point
results in a net loss.
Concept
5/21/2009
Design
Engineering
&Production
Release
Production
22
Definition and Scope

Lean Design Life Cycle Scope
Market
Research
Conceptual
Design
Voice of
the Customer
Phase 0
Value Engineering
Program
Go-ahead
Test
MDTC/Design to Cost
Delivery
In-Service
Performance
Value Analysis
Value Engineering
Design for Manufacturing & Assembly
Product Development Phase
5/21/2009
23
Creating a Culture for Innovation

Innovation is not a solo sport despite all
the mythology. It requires a team using
a well structured work session.
Innovation comes far more often from a
diverse team, freely exchanging ideas,
than it does from a solitary genius or an
insulated team with the occasional aha
moment along the way. Jim McNerney
5/21/2009
24
The Synergistic Effect of

Value Analysis/Value Engineering
INFORMATION HELD BY ONE
MEMBER ONLY
INFORMATION HELD BY TWO

OR MORE MEMBERS
INFORMATION OR EXPERIENCE
COMMON TO ALL
5/21/2009
25
VE Task Team
Core Team
Support
Support
Support
Support
Support
Support
Core team consists of5 to 8 PARTICIPANTS

OPTIMAL
5/21/2009
26
Definitions

Value Study - The overarching objective of a value study is to improve the value of
the project.
Job Plan Provides the structure for the Value Study which is part of a three-stage
process which includes:
1.
2.
3.

Value Methodology Provides the process and structure that is used to apply the
Value Job Plan used in the Workshop.
Value Standard Establishes the specific six-phase sequential Job Plan process
and outlines the objectives of each of those phases. It does not standardize the
specific activities that are used to accomplish each phase.
Value Engineering Study: A study used in the design phases of product
development to establish the functions, target costs, and preferred alternative(s) for a
new, or revised product.
Value Analysis Study: A study on an existing product used to improve product
performance, lower cost or improve reliability and maintainability.

Pre-Workshop preparation
Value Workshop which applies the Six Phase Job Plan
Post-Workshop documentation and implementation
Note: Value Engineering and Value Analysis are often used synonymously and are encompassed
by the term Value Methodology.
LDB/P: Lean Design Build Process An VM study supported by DFMA and 3P.
DFM/A: Design for Manufacturing and Assembly (DFMA is a registered trademark of Boothroyd Dewhurst Inc.)
3P: The Production Preparation and Planning process.
5/21/2009
27
The Value Job Plan Concept

Systematic guide to ensure everyone is focused on

exactly what they are trying to do
Get knowledge
Develop understanding
Create ideas
Develop and sell innovations
Each phase involves different types of thinking

...each completed exhaustively before the next is begun
...otherwise they will slur back and forth and get little done
5/21/2009
28
The VM Study Methodology

From the General to the Specific
REQUIREMENTS/
OBJECTIVES/
FUNCTIONS
Di
v
Th erge
ink nt
ing
t
en
g
er g
v
n in
Co hink
T
VERIFY
Implementation Phase
Achieve
Results
IMPLEMENT
EVALUATE
SPECULATE
ANALYZE
INVESTIGATE
SELECT
Generalized,
vague
concepts or
problems
SEARCH
PHASE
Development
Develop and
Sell Innovations
PRESENT
Creativity &
Evaluation Phases
Create
Ideas
DEVELOP
Phase 0: Identify
Opportunity
Information & Function

Analysis Phase
Get Knowledge /
Dev. Understanding
VM meets customer
needs by providing
the best value solution
for the entire value stream
CONCEPT
PRODUCTION
DEVELOPMENT PREPARATION
Detailed
Design &
Implementation
A series of divergent and convergent thought processes that provide a logical path to achieving a solution.
5/21/2009
29
Study Job Plan

Study
Information Phase
Data Collection & Analysis
Issues
Requirements
System models
Pre-Study
Select Project
Define Problem/Opportunity
Establish Goals/Constraints
Determine Evaluation Metrics
Scope the Study
Determine Team
Study Preparation Plan
Creative Phase
Create Quantity of Ideas by Function
Evaluation Phase
Rank and Rate Alternative Ideas
Select Ideas for Development
Development Phase
Conduct Benefit Analysis

Complete Technical Data Package
Create Implementation Plan
Prepare Final Proposals
Post-study
Validate Changes
Commit changes
Implement Changes
Monitor Status
Presentation Phase
Present Oral Report
Obtain Commitments for Implementation
5/21/2009
30
Pre-Study

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

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

5/21/2009
Collect data
Event Logistics
31
PROFIT
COST
Concerns/Expectations
alue
Management
PROFIT
Product Performance Profile
PROFIT
COST
COST
Displaying Attributes
alue
Management
H. Additional Imposed
Requirements Cost
Identify opportunities to shrink lead time from product introduction

Remove installation problems
Surface supplier/contractor issues to drive down costs, lower
rejection rates that impact contractor quality impacts
Determine how contractor requirements impact the suppliers
Win/win/win for contractor , supplier and Airlines
Gain a better perspective of the supplier
Reduce rejection tags
Reduce the flow time in the engineering & mfg. sides of the house
Continue to meet certification requirements
System that does degrade over time - a robust system
Get the best product at the best price
Have good feelings about the contractual process with supplier
See VE be used throughout company - Expand VE opportunities
Attributes should be scaleable, rather than binary.
B. ROLT
G. All Rejects
Scaling Attributes
alue
Management
A. Recurring Cost
C. Flow Time
Attributes
A. Recurring Cost ($)
+.4K
Score
408
Target
650
Attribute
A
B
C
D
E
F
G
H
Weighting Factor
Available Points
Baseline Score (1-10)
Baseline Score (Weighte d)
De lta (B - D)
Proposal Score (1-10)
Proposal Score (Weighte d)
De lta (B - G)
D. Implementation Time
10
-4.5K
-6.9K
16*
15
18 mo
E. Non-Recurring Exp. 20%
Bleed Ducts
PRODUCT
5
-1.5K
B. Re-order Lead Time 33wks

C. Flow Time (mdays) 30*
F. Reliability
4
*
Today
0
2*
30%
50%
E. NRE
Cost
ROLT
Flow Time
Impl
NRE
22
220
3
66
154
14
140
5
70
70
12
120
1
12
108
15
150
10
150
0
2
20
10
20
0
0
220
0
140
0
120
0
150
0
20
20
200
0
0
15
150
6
90
60
Total
100
1000
0
200
408
592
0
0
0
150
0
200
0
1000
Reli abili ty
Rejects
Rqmts
F. Reliability
G. All Rejects
5%
3%
.003%
H. Add. Reqmts Cost *-15%
0
-34%
* Product Benchmark
J. J. Kaufman Assoc, Inc.
PROFIT
PROFIT
PROFIT
COST
COST
COST
alue
Management
Problem Definition
What is the problem (or opportunity) we are about to resolve?
Attributes are prioritized and graded using a Paired Comparison processes.
The cost/price of the part does not the allow supplier to make an adequate profit
margin, contractor to meet product price objectives, and an acceptable cost - ofownership for the airlines.
Producibility and design improvements will allow for less expensive parts.
Why do we believe a solution is necessary? -OR(What is the consequence of not solving the problem?)
Customers demand that contractor hold or reduce our costs.
Supplier may choose to not renew its contract after 3 years
New supplier qualification costs.
Supports contractor in meeting its business plan

Retain a valuable supplier
Boeing want to build a strong supplier base
Enable faster delivery of airplanes (reduce A/P flow time)
B C D E F G H I
A A1 C1 A3 A2 0 G2 A3
PRESTUDY
Why do you consider this a problem (or opportunity) ?
Weighting Attributes
alue
alue
Management
Management
B B2 B2 B1
C C3 C1
D D3
E
1. Low
2. Medium
3. High
PROFIT
Attribute
Score Weight
A. Recurring Cost
22%
0 G2 H3
B. Re-order Lead Time
14%
0 G1 H3
12%
0 D2 D1
C. Flow Time
15%
0 G1 H1
E. Non-Recurring Exp.
2%
F. Reliability
0%
G. All Rejects
15%
H. Add. Reqmts Cost
20%
41
100%
F
Weighting
Factors
G H1
H
I
J
Total
PROFIT
COST
COST
PROFIT
alue
Management
Goals
COST
alue
Management
Unit cost reduction

Maintain or reduce cost-of-ownership
(to airlines-spares)
Reorder lead time
All changes incorporated by

Point of use delivery of parts
> 21%
TBD
<16 weeks
(80 m-days)
1 Jan 99
100%
Attribute Definitions
Recurring Cost - Total manufacturing cost (material & labor) measured

in $/unit
Meet certification requirements
Re-order Lead time-ROLT - Total time from order receipt to on-dock

delivery measured in M-days
First article inspection test - September, 1998 (?)
Flow Time - Product received on dock from supplier until product is

consumed (installed in engine) M-days
Implementation Time - (to install changes) Time to plan, make and qualify
(parts built and delivered) engineering changes measured in calendar
days
Non-recurring costs - Total cost (contractor & supplier) to develop and

implement change measured in % of return in 1 year.
All rejections - Number of part discrepancies for workmanship, quality,

fit, form, function issues. Measured in % of rejections per year .
Additional Imposed Requirements Costs - The additional costs to

manufacture the parts in accordance with the drawings measured in %
reduction.
First delivery is January 1, 1999

Target costs
Major interfaces and envelop must remain the same
Form, fit, function - transparent
Engine interface loads
Meet current operating envelope of engine
100% radiographic inspection
5/21/2009
alue
Management
Constraints
32
The Processing of Information

FACT FINDING
What do you need to know about the problem that
you dont know now?
What facts are known?
Are these facts, opinions, assumptions, or
prejudices?
Where, or how can information be obtained?
RECORD ALL INFORMATION
J. J. Kaufman Associates, Inc.
5/21/2009
33
THREE KEY QUESTIONS

PROBLEM DEFINITION - TEAM BUILDING
1. What is the problem/opportunity we are
about to discuss?
2. Why do you consider this a problem, or
opportunity?
3. Why do you believe a solution is
necessary?
5/21/2009
34
The Value Methodology

Value Method
PRESTUDY
Value Method
PRE-STUDY ORGANIZATION
Brief Management
Select Project
Structure Team
Gather Information
Plan Workshop
Confirm Commitment
Value Management is a methodology, . a structured, step-by-step

procedure for solving Planning, Process, Business and Engineering
problems and capturing opportunities.
POST
STUDY
It is not a tool. It is made-up of a

Set of tools that complement common initiatives.
THE IMPLEMENTATION PHASE

Assure implementation of proposals
Complete changes
The VM process takes multi-disciplined project representatives,

molds them into a high performance team, and quickly (1 to 3
weeks) guides the team to the resolution of the project issues.
Implement changes
Monitor status
FOLLOW-UP
The Process is particularly applicable for both small projects, as

well as resolving key issues within much larger projects.
(The Society of American Value Engineers (SAVE) has recently change their name to SAVE
International, The Value Society, and the name of the VA/VE Process to Value Methodology
rather than Value Analysis/Value Engineering due to emerging broader application of the
process. The term Value Management is being used when an organization employs the Value
Methodology for Managing Value.)
Success is achieved after

verification
Value Method
Value Method
Value Method
THE INFORMATION PHASE
Analyze Information
Define Problem
Set Targets
Assess Attributes
Identify Constraints
Isolate Functions
Develop FAST Model
Dimension FAST Model
THE VALUE METHODOLOGY

JOB PLAN
PRESTUDY
THE PRESENTATION PHASE
POST
STUDY
Package Proposals
Develop Sales Strategy
SUCCESS
Plan Presentation
INFORMATION
PRESENTATION
Present Proposal
CLOSE
CREATIVE
DEVELOPMENT
EVALUATION
Value Method
Value Method
Value Method
THE CREATIVE PHASE
THE DEVELOPMENT PHASE

THE EVALUATION PHASE
Develop Potential Proposals
Brainstorm Functions
Cluster Ideas
Generate Ideas (not solutions)
Record Ideas
Avoid Roadblocks
Suspend Judgment
Perform Benefit/Risk Analysis
Identify Champions
Score Attributes
Screen Ideas
Determine Pay-Back
Rank and Select Ideas
Validate Assumptions
Expand Surviving Ideas
Create Implementation Plan
Value Management presentation developed by W. Marlo Stebner in cooperation with J.J. Kaufman, Associates, Inc.
Value Engineering
Value Engineering (VE) - is a
systematic activity used during
product development to reduce
costs without loss of product
performance. The scope of value
engineering includes design cost
reduction, process improvements
and supplier cost reductions
Gather
Information
Define the
Function(s)
Brainstorm
Evaluate
Investigate
Recommend
5/21/2009
36
Lean Design Methodologies

Core
Tools
5/21/2009
Process Costing ability to provide visibility & analysis of

costs by business or manufacturing process
Component Costing frequently used with VE to determine

where cost drivers & CERs are within the design, manufacture
or assembly of a part(s)
Feature to Function Costing determines if a customers

features can be satisfied by the function(s) of a product and,
if so, is it within the customers price expectations
Design for Manufacturability and Assembly (DFM/A) strives

for the most effective process to make & assemble parts
Benchmarking comparative cost or process performance data
Multiyear product/profit plan matrix integrates data on revenues,

spending, & investment over a multiple year time period
Cost Tables sources of detailed cost information
Value Engineering/Value Analysis (VE/VA) organized efforts

directed at analyzing the functions of products, processes, & services
to achieve the lowest overall costs with no reduction in performance
Quality Function Deployment (QFD)/ Voice of the Customer(VOC)

- ranked & rated customer & tech design rqmts. that can be measured
& controlled by the integrated product & process development team
37

TOOLS
3P
TRIZ
FAST
QFD
DFMA
VSM
Barriers
METHODOLOGY
Lean Design
w/VE
SUCCESS
5/21/2009
38
The Value Methodology Process

Sponsor
Opportunity
1
PROJECT
PLAN
Team
4
7
5
8
6
9
Pre-Study
Implementation
Event
Collect
Identify
Information Alternatives
Analyze &
Screen
Prepare
Proposals
Present
Proposal
Plan
Approval &
Funding
Brainstorm
How
Why
J. J. Kaufman Associates,
Inc.
5/21/2009
39
Cost vs. Performance
C
O
S
T
Cost
Tolerance
Zone
Project Cost
Target Cost
Performance
Tolerance
Zone
Performance
5/21/2009
40
Target Allocation Workshop
The IDEAL - Linkage to Customer Requirements

Voice of the Customer Approach
Customer requirements
Estimated cost distribution
Correlation of requirements to components (QFD)
Evaluation of Value Index
Target setting to value
IPTs need to focus cost reduction on value matching
5/21/2009
41
Concept of Value
FUNCTION
VALUE =
COST
5/21/2009
42
Concept of Value
Esteem + Exchange + Utility
Value =
Cost
5/21/2009
43
Concepts of Value - Desirable

Ideal
Value =
Good
Function
Cost
5/21/2009
Acceptable
Passable
Function
Cost
44
Concepts of Value - Undesirable
Undesirable but Passable

(cheapening the
product)
Value =
Function
Cost
5/21/2009
Function
Cost
45
Function Analysis
Function Analysis is the key to understanding
the problem.
The first step is to brainstorm all possible
functions of the product/process/system.
Next, build a FAST Model to help identify any
missing functions.
5/21/2009
46
Fast Modeling
5/21/2009
47
Benefits of Functional Thinking

The function analysis system technique process (FAST) helps

task teams plan projects, develop technical and business
processes and procedures, and modify organizations for leaner,
more effective performance.
FAST displays functionally what has to be done and identifies

dependent functions (how) and the reason for selecting those
functions (why).
Thinking functionally shifts paradigms and helps task teams

innovate by changing the way they normally think about solving
problems and capturing opportunities.
Two basic questions are at the heart of FAST

Why? and How?

If ask strategically they will open the door to a wealth of information
hidden under levels of assumptions and misinformation
Once learned, thinking and speaking functionally allows team

members to communicate with anyone, regardless of their
technical or professional background.
5/21/2009
48
Synergism
5/21/2009
49
FAST
A Logically Diagramed Function Relationship

FAST
FAST
FAST

FAST

5/21/2009
50
Concepts of Function
5/21/2009
51
Concepts of Function
5/21/2009
52
Function Analysis

Functions - Describe what something does

Functions - Use active verb and measurable noun
FAST (Function Analysis System Technique) - A
logic diagram to describe how a system works.
Examples of Verbs and Nouns:
Active Verbs
Transmit
Irradiate
Project
Dissipate
Generate
Convert
Receive
Reflect
5/21/2009
Nouns
Signal
Information
Data
Heat
Radiation
Current
Light
Image
53
FAST Diagramming

5/21/2009
Function Analysis System Technique

Developed in 1964 by Charles W. Bytheway
Applies intuitive logic to test functions
Displays functions in a diagram or model form
Identifies dependence between functions
Creates common language for team
Tests validity of functions
No correct FAST model - team consensus
54
Function Analysis
Intuitive Logic
HOW
FUNCTION
WHY
FUNCTION
(GOAL)
5/21/2009
FUNCTION
(METHOD)
55
Function Analysis

Functions - Describe what something does

Functions - Use active verb and measurable noun
FAST (Function Analysis System Technique) - A
logic diagram to describe how a system works.
Examples of Verbs and Nouns:
Active Verbs
Transmit
Irradiate
Project
Dissipate
Generate
Convert
Receive
Reflect
5/21/2009
Nouns
Signal
Information
Data
Heat
Radiation
Current
Light
Image
56
FAST Diagramming

5/21/2009
Function Analysis System Technique

Developed in 1964 by Charles W. Bytheway
Applies intuitive logic to test functions
Displays functions in a diagram or model form
Identifies dependence between functions
Creates common language for team
Tests validity of functions
No correct FAST model - team consensus
57
Basic FAST Model

Minor Logic Path
HOW
WHEN
Objective
or
Specification
WHY
Independent
(Support)
Function
Major Logic Path

Objective
or
Specification
Higher
Order
Function
Basic
Function
Concept
Dependent
(Secondary)
Function
Independent
(Support)
Function
(AND)
Lower
Order
Function
(OR)
Concept
Activity
Left Scope Line

Scope of the Problem
Right Scope Line
RESPONSIBILITY/COST MATRIX
Symbol
5/21/2009
58
FAST Example - Overhead Projector

HOW?
WHY?
F.A.S.T MODEL
OVERHEAD PROJECTOR
FACILITATE
PORTABILITY
OBJECTIVES OR
SPECIFICATIONS
ALLOW
SAFETY
OUTPUT
W
H
E
N
CONVEY
Information
PROJECT
IMAGE
FOCUS
IMAGE
SUPPORT
IMAGE
AMPLIFY
IMAGE
5/21/2009
INPUT
(concept)
GENERATE
LIGHT
(concept)
CONVERT
ENERGY
RECEIVE
CURRENT
TRANSMIT
CURRENT
GENERATE
HEAT
DISSIPATE
HEAT
GENERATE
NOISE
59
IMAGINATION
Imagination is more important than
knowledge, for knowledge is
limited, while imagination embraces
the entire world.
Albert Einstein
5/21/2009
60
Lean Design and 3P Integration

Production Preparation
Process 3P
Lean Design = VE + DFMA

Robust requirements validation

Functional analysis of product
Requirements and function
linkage to components
Design to production/program
attributes
Innovative and creative concepts
Less parts
Fewer steps in Mfg and Assy
Reduces design and mfg rework
Determine production processes
Design to enable takt time and
poka-yoke
Lead time reduction

5/21/2009
Flowing production with high

quality (Poke yoke) that is reliable
and predictable
Moonshine and rapid prototyping
to validate product / production
design
Simulation of to be fabrication and
assy processes
Product flow Fishbone Diagram
Right sized assets
Equipment
Tooling
People
Production paced to Takt Time
Standard work and work in
process
Lead time reduction
61
Lean Design (VE with DMF/A and 3P)

FAST
Modeling
HOW?
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A. Recurring Cost
WHY?
H. Additional Imposed
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B. ROLT
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C. Flow Time
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Score
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390
650
A ttri bute
A
B
C
D
E
F
G
H
PM
Prod
ME
MKTG
W e ig ht in g Fa c to r
A v a il ab le Po in ts
B a s e li ne S c o re (1 -1 0)
B a s e li ne S c o re (W e i gh te d )
D e lt a (B - D )
P ro po s a l S c o re (1 -1 0)
P ro po s a l S c o re (W e i gh te d )
D e lt a (B - G )
E. NRE
C os t
23
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3
69
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8
18 4
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Fl ow T im e
13
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7
91
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15
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1 05
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R e li abil ity
3
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30
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0
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0
R e je c t s
15
15 0
6
90
60
8
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R qm t s
20
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0
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10
2 00
0
To ta l
1 00
1 0 20
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FAST Modeling
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Attribute Grading
Generate Ideas
Process Mapping
Combine & Select
DFMA
Concept Evaluation
Written Description:
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5/21/2009
D e sig n C o n c e p ts
1 2 3 4 5 6 7 8 9 10
S ele c tio n C rite ria
Im pr o ve L oa d P a th
S S S S | S S S - R ed u ce H a rd w a re C o s t - + - S | - - + S +
R ed u ce V a ri ab i lity
- S - - | + S - - S
7 3 7/75 7 C o m m o nal ty + + + S D - - + S O ve ra ll T ec hni c al R is k S + S - A S S + - R ed u ce W e ig ht
+ + S S T - - + - S
M i ni m ize P a rt C o unt
+ + + S U + - + + +
Im pr o ve S u p po rt A c c e s s- S S + M S S S - +
R ed u ce Instl Ti m e
- S S S | S - S S +
R ed u ce N o i se , R a ttl ing S S - - | S S S S S im p li fy T oo li ng
- S S S | S S S S +
T o ta ls + 's
3 5 2 1 | 2 0 5 1 5
T o ta ls -'s
5 0 3 3 | 3 5 1 5 4
T o ta l S co re
-2 5 -1 -2 | -1 -5 4 -4 1
( + ) B e tte r than , (-) W o rs e tha n, (S ) S am e a s D A T U M
Down Select
Prototyping
11
S
S
S
+
+
S
2
5
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Wri tten De scription:

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62
VE/DFMA Function
Thinking Guidelines
Important DFMA & VE Guidelines

Changing the rules (Think Function).
Reduce part count and part numbers. (Nonexistent parts cost nothing to
make, handle, assemble, purchase or service)
Dont fight gravity!
Eliminate fasteners and adjustments
Design parts to be self-aligning and locating ( This can eliminate tooling)
Ensure adequate access and unrestricted vision
Design parts that cant be installed incorrectly (MISTAKE PROOF)
Minimize opposite parts
Use catalog parts
Know process capability before specifying tolerances
Think Ergonomics
5/21/2009
64
Think Function

What is the basic function of this part?

How is that function being performed?
How else can the basic function be performed?
Are there any unnecessary non-value added
secondary functions added to the part?
How can functions be combined?
5/21/2009
65
Design Reuse
Company X has 10,000+ New Design Part Numbers per Month
200 New Standard Parts per Month
7 New Extrusions per Month
Never design a part that you can buy from a catalog!

Never design a part that you can buy from a catalog!
You cant design and build standard parts for less than the cost of
buying already available catalog parts.
5/21/2009
66
Functional Thinking How

else can I do this function?
VE requires SEEING what
everyone has seen,
But THINKING differently than

everyone has thought! (Function Thinking)
With new materials, processes and fasteners being developed every

year, seeing things differently is important. The above example
illustrates using Snap together design that may not have made
sense 20 years ago. These designs are meeting commercial shock
and vibration tests and an alternative that is increasingly being used.
5/21/2009
67
Reduce Complexity & Part Count
21 Parts
6 Parts
The part on the right is obviously less complex.

Do engineers do this intuitively?
Remember, if a part doesnt exist it doesnt have to be ordered and
can never be late to the line!
5/21/2009
68
Combine Part Functions
Lowers costs for handling, purchasing, inspection, and inventory

Simplifies assemblies
Makes assemblies less prone to defects
Look at the function of neighboring parts to see if reallocation of functions
could improve airplane level cost, quality and/or performance
5/21/2009
69
Assemble in the Open
Assembly operations should be carried out in clear view with

proper access
Improves ergonomics
Eliminates special tools
Reduced opportunity for Foreign Object Debris (FOD)
5/21/2009
70
Minimum Number of Surfaces
Minimizes the need to reorient parts

Results in reduced time and motion
Simplifies tool design
Reduces the need for tools
5/21/2009
71
Use Modular Design
Quality is directly related to the number of parts being assembled.

Modular design results in:
5/21/2009
Reduction of parts
Simplified assemblies
Quicker disassembly and repair using fewer tools
Simplified trouble shooting & fault isolation
Inspections for quality made easier
Cost effective upgrades
72
Dont Fight Gravity
Assemble from the top down

Fighting gravity requires more tooling, clamps, fixtures, etc.
Fighting gravity often results in Foreign Object Debris (F.O.D.)
5/21/2009
73
Design for Part Identity

BAD
GOOD
Add part features to enhance positioning

Does not hide important features
Can force correct alignment and orientation
Makes assembly errors next to impossible!
5/21/2009
SimplifiesWixson
Inspection
Value Associates Inc.
74
Eliminate Fasteners
Fasteners add:
Weight
Complexity
Cost (assembly, installation, and fastener)
Opportunities for quality problems
Build fastening function into design

Limit the number and types of fasteners
5/21/2009
75
Simplify Assembly
Facilitate Insertion: Design components with guide surfaces, choose

simple moving patterns, make insertion unambiguous. Add guide
surfaces, chamfers etc
5/21/2009
76
Provide Locating Features

BAD
GOOD
Build in self-locating features

Surface features will keep parts in location after initial
assembly (e.g., projections, indentations)
5/21/2009
77
Determinate Assembly (DA)

Determinant Assembly is a strategy utilizing
part-to-part indexing wherever possible.
Index Tooling
Determinant Assembly
Uses part features to locate parts.

Also known as: Advance Technology Assembly (ATA)
5/21/2009
78
Use paired Parts

Use paired parts instead of R/H and L/H parts.
With paired parts you have twice the quantity, and
one-half the number of part types.
Paired parts (1 P/N)
5/21/2009
L/H & R/H parts (2 P/Ns)
79
Dimensional Management
Ensure that parts have
design tolerances well within
their fabrication process
capability
MINIMUM
.010
C
SPE
.005
Do you try to find out the process capability tolerance of the manufacturing
process(es) you are going to use, before you call out the tolerances on your
design?
or
Do you specify a tolerance, and then let manufacturing struggle to meet your
tolerance?
5/21/2009
80
Ergonomics
Poor ergonomics leads to:

Poor quality
Low moral
Increased cost do to inefficiency
5/21/2009
81
Summary
Simplicity
The best design.

Is the simplest one that works!
Albert Einstein
5/21/2009
83
Think Functions

What is the basic function of this part?

How is that function being performed?
How else can the basic function be performed?
Are there any unnecessary non-value added
secondary functions added to the part?
How can functions be combined?
5/21/2009
84
Insanity
Doing the same old thing..................

The same old way.................
And expecting different results
5/21/2009
85
ABOUT SAVE INTERNATIONAL

SAVE International
SAVE International is the premier international society devoted to the
advancement and promotion of the value methodology (also called value
engineering, value analysis or value management). Value methodology
benefits include decreasing costs, increasing profits and improving quality.
Society members practice the value methodology in the public and private
sectors for organizations in more than 35 countries. VM applications span a
variety of fields, including construction, corporations and manufacturing,
transportation, health care, government and environmental engineering.
SAVE International offers member services such as education and training,
publications, tools for promoting the value methodology, certification,
networking and recognition.
5/21/2009
86
Where to get more information

Wixson Value Associates, Inc.

http://wvasolutions.com
DRM Associates, Inc.

http://www.npd-solutions.com/
Society of American Value Engineers (SAVE)

http://www.value-eng.org/
Slide Share Superfactory Lean Design Series
http://www.slideshare.net/ahmad1957/lean-design-sample
5/21/2009
87
Questions?
Staple Puller
Example
Staple Remover Example
5/21/2009
90
5/21/2009
91
Numerical Function Evaluation
5/21/2009
92
Numerical Function Evaluation
5/21/2009
93
Information Phase
5/21/2009
94
Speculation Phase
5/21/2009
95
Execution Phase
5/21/2009
96

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Salt Lake City Chapter #085

May 21, 2009

Sponsor for tonights Webinar

About The Webinars Presenter

Lean Design with

What is Lean Design?

How does Value Engineering (VE) facilitate

Value of VE. Why use it?

What is Function Analysis and FAST?

The benefits of functional thinking.

The VE Job Plan & How it Relates to Lean

How DFM/A and 3P work with the VE

Questions and Answers

Wixson Value Associates Inc.

Lean Design is applying lean principles to Product Development

Wixson Value Associates Inc.

Waste in Product Development

Lean Design teams recognize that every extra feature or performance

Lean Design teams know that overloading resources makes them

Serial Product Evolution

Wixson Value Associates Inc.

Wixson Value Associates Inc.

A Product Definition Process..

Traditional Product Cycle

Co-located Team Environment

Lean Design Product Cycle

Design / Analyze / Build Plan / Schedule

What is Value Engineering?

VE is uses an organized approach toward

VE focuses on the functions performed by

Wixson Value Associates Inc.

What is Value Engineering?

Value Engineering is a proven methodology that

Value Engineering can be used to generate

The VE approach promotes the philosophy of Do

Wixson Value Associates Inc.

Value Study Methodology

The value team study process matches the quick-hit, small

Wixson Value Associates Inc.

VM, Six Sigma and Lean?

Doing Things Right

Wixson Value Associates Inc.

Lean Design - Goals

Performance Targets (Quality)

Wixson Value Associates Inc.

Lean Design - Process

Identify Customer requirements

DOE, CAE, FEA, Simulation, Analytical models.

Verify Design and Process

VE, 3P, TRIZ, Brainstorm, Ways of Nature, etc.

Optimize Design and Process Concepts

Generate, Evaluate, Select Design & Process Concept(s)

Benchmark, Patent search, Product Scorecard, Process Map, VSM

Determine Functional Requirements

VE, QFD, Critical to Quality (CTQ)

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

Maintain the Gains

Control Plan, SPC, Kaizen

(from Superfactory, Lean Enterprise Series)

Wixson Value Associates Inc.

Production Part Approval Process:

Wixson Value Associates Inc.