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Introduction To VEVA
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A review of the basics of performing the value engineering process
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Introduction To VEVA
- AN INTRODUCTION
- * What is it? * Where did it come from? * How does it work? * What are benefits?
- A decision process that uses systematic, organized procedures to generate creative alternatives to secure essential functions at the greatest worth. DEFINITION
- VALUE WORTH COST = Value Function >1 <1 Good Value Poor Value
- EXISTING PRODUCTS, PROCESSES or SERVICES Concept Design Development Manufacturing Distributing Selling Servicing Value Engineering Value Analysis FUTURE PRODUCTS, PROCESSES or SERVICES Value Planning
- 1960s - Miles publishes first book - Initial FAST diagramming techniques developed - Society of American Value Engineers (SAVE) establ. - US Dept. of Defense requires for procurement 1940s - Larry Miles / GE developed Theory of Value Analysis and Use Functions 1950s - Adopted by Dept. of Navy as Value Engineering 1990s - Public Law 104106 mandates Value Engineering at all executive agencies of federal government 1970s & 1980s - Value Engineering courses established at University of Wisconsin - “Technical” and “Customer” FAST standardized - Quality Function Deployment (QFD) begins in US - Value Methods expand to major US companies HISTORY
- MOREVALUE WORTH COST =
- WORTH COST • Performance • Quality • Safety • Esteem • Timeliness • Convenience • Reliability • Production • Ownership • Training • Delay • Breakage • Poor Style • Maintenance • Excess Time • Wear • Service • Benefits POOR VALUE
- KEY ELEMENTS • Team Involvement • Structured Process • Functional Analysis • Communication • Creativity
- • Structured Process JOB PLAN 2 Information 3 Creativity 1 Selection 5 Development 4 Analysis 6 Presentation 7 Implementation 8 Verification TEAM WORKSHOP (3 to 10 days)
- • JOB PLAN 2 Information 3 Creativity 1 Selection 5 Development 4 Analysis 6 Presentation 7 Implementation 8 Verification Project Scope Data Team Based on: • Apparent benefits • Cost / Resource reductions • Performance improvements • Projected ROI Based on: • Budget available • Time available • Opportunity for changes • Expertise available • Drawings & Schematics • Specifications • Cost Accounting • Performance • Customer Feedback Based on: • Expertise • Compatibility • Availability • Interest Indicators: • Costs Increasing • Schedules Missed • Losing Market Share • Traditional Solutions - won’t work! . . . too costly!
- • Team Involvement - 5 to 7 Members - Selected by Management - Assisted by Certified VM Facilitator - Multiple Disciplines
- • JOB PLAN 2 Information 3 Creativity 1 Selection 5 Development 4 Analysis 6 Presentation 7 Implementation 8 Verification (Project, Scope, Data, Team Members) FA FAST Focus Points FUNCTION ANALYSIS
- FUNCTION ANALYSIS - Two Word Descriptions - What Does It Do ? - Active Verb + Measurable Noun for each component or element what is it ? example: a pencil “makes marks”
- / COSTS Remove Marks Secure Eraser Display Info. Protect Wood Improve Appear. Make Marks Improve Appear. Transmit Force Support Lead Display Info. $1.19 Accommodate Grip / $0.30 / $0.10 / $0.03 / $0.05 / $ 0.05 / $0.04 / $0.24 / $0.20 / $0.14 / $0.04 FUNCTION ANALYSIS Valmax Associates Eraser Band Paint (Body) Paint (Letters) Body Lead Eraser Band Paint (Letters) Paint (Body) Lead Body PARTS COSTS $0.30 $0.13 $0.05 $0.09 $0.24 $0.38 $1.19 Eraser Band Lead Body PARTS FUNCTIONS Paint (Letters) Paint (Body)
- • JOB PLAN 2 Information 3 Creativity 1 Selection 5 Development 4 Analysis 6 Presentation 7 Implementation 8 Verification (Project, Scope, Data, Team Members) FA FAST FAST Diagram
- FAST Diagram - Logical Arrangement of Functions - Distribute Costs by Function - Prioritize Functions for Analysis higher order, basic, secondary, supporting costs of functions allocated focus points refine emphasis of study
- FAST Diagram F unction A nalysis S ystem T echnique TECHNICAL FAST
- Purpose How Why Higher Order Function CUSTOMER (TASK) FAST TASK TASK The reason that the product, process, system, service, etc. exists. Secondary Basic Secondary Basic Secondary Basic Primary Basic BASIC FUNCTIONS Essential for performance of the TASK Assure Convenience Facilitate • spatial layouts • maintenance • repairs Furnish • instructions • directions Assure Dependability • Make stronger • Make safer • Ensure reliability • Extend life • Protect environs Supporting Functions Satisfy O U S • Desired by users •Make easy to use •Offer comfort •Make pleasing •Improve basics -faster, smaller,etc. Attract O U S • Style • Color • Image • Shape • Texture • Endorsement SUPPORTING FUNCTIONS NOT essential for performing the TASK. ENABLE • marketing • selling • customer acceptance FAST Diagram Scope Line Secondary Basic Functions A schematic of logical functional relationships
- Convey Information Supporting Functions 20% 17% 25% 8% 8% Assure Dependability 12% 4% 6% Satisfy O U S Make Marks Transmit Force Remove Marks Secure Eraser Display Information Accommodate Grip Support Lead Protect Wood Improve Appearance CUSTOMER (TASK) FAST FAST Diagram How Why Valmax Associates Eraser Band Paint (Body) Paint (Letters) Body Lead Assure Convenience Secondary Higher Order Function Basic Functions Attract O U S Eraser Band Lead Body PARTS FUNCTIONS/COSTS Paint (Letters) Paint (Body) Remove Marks / $0.30 Secure Eraser / $0.10 Display Info / $0.05 Protect Wood / $0.05 Improve Appear. / $0.04 Make Marks / $0.24 Improve Appear. / $0.03 Transmit Force / $0.20 Support Lead / $0.14 Display Info / $0.04 $1.19 Accommodate Grip
- • JOB PLAN 2 Information 3 Creativity 1 Selection 5 Development 4 Analysis 6 Presentation 7 Implementation 8 Verification (Project, Scope, Data, Team Members) FA FAST Focus Points ) • Basic Function(s) • Value Mismatches • Complexity
- Convey Information Supporting Functions 20% 17% 25% 8% 8% 12% 4% 6% FOCUS POINTS • Basic Functions • Highest Cost Supporting Functions (potential VALUE MISMATCHES) • Complexity FAST Diagram How Why Assure Convenience Display Information Accommodate Grip Remove Marks Secure Eraser Assure Dependability Support Lead Secondary Higher Order Function Basic Functions Transmit Force Make Marks Satisfy O U S Protect Wood Attract O U S Improve Appearance
- • JOB PLAN 2 Information 3 Creativity 1 Selection (Project, Scope, Data, Team Members) 5 Development 4 Analysis 6 Presentation 7 Implementation 8 Verification (FA FAST Focus Points) ( Focus Points • Brainstorming • Gordon Technique • Field Force Analysis • Brain-writing • Uniform Methods Listing • Other methods Ideas Concepts )
- IDEA IDEA IDEA Focus Point A Focus Point B Focus Point C IDEA Focus Point n Creative GENERATE IDEAS • How else . . ? • How better . . ? • How quicker . . ? • How to avoid . . ? • How less costly . . ? • How . . ? How . . ? IDEA IDEA IDEA IDEA IDEA IDEA IDEA IDEA IDEA IDEA IDEA IDEA IDEA IDEA IDEA IDEA IDEA IDEA IDEA IDEA IDEA IDEA IDEA
- • JOB PLAN 2 Information 3 Creativity 1 Selection (Project, Scope, Data, Team Members) 5 Development 4 Analysis 6 Presentation 7 Implementation 8 Verification (FA FAST Focus Points) Ideas ( Focus Points Concepts ) • Affinity Grouping • Blast-Create-Refine • Refine Concept Groups • Identify Benefits/Risks • Other methods
- CONCEPT 1 CONCEPT 2 CONCEPT 3 CONCEPT n AFFINITY GROUPS Creative IDEA IDEA IDEA Focus Point A IDEA IDEA IDEA IDEA IDEA IDEA IDEA IDEA Focus Point B IDEA IDEA IDEA IDEA IDEA IDEA IDEA IDEA IDEA Focus Point n IDEA IDEA IDEA IDEA IDEA Focus Point C IDEA IDEA
- • JOB PLAN 2 Information 3 Creativity 1 Selection (Project, Scope, Data, Team Members) 5 Development 4 Analysis 6 Presentation 7 Implementation 8 Verification (FA FAST Focus Points) Ideas (Focus Points Concepts) ( Evaluate Rank Select Concepts ) • Consensus • “ Sticky Vote” • Probability Grouping • Criteria Weighting Matrix • Multi Series Decision Matrix
- EASY MODERATE HARD LARGE BENEFITS MEDIUM BENEFITS SMALL BENEFITS IMPLEMENTATION DIFFICULTY GENERATE PROPOSALS FUTURE CONSIDERATION 1 2 3 n n n REJECT Analysis EXAMPLE: Probability Groupings
- • JOB PLAN 2 Information 3 Creativity 1 Selection (Project, Scope, Data, Team Members) 5 Development 4 Analysis 6 Presentation 7 Implementation 8 Verification (FA FAST Focus Points) Ideas Concepts) (Focus Points (Evaluate Rank Select Concepts) ( Improve Proposal Value, Document ) SELECTED CONCEPTS: feasibility, viability, advantages, disadvantages, dangers, risks, costs (life cycle) WRITTEN REPORT
- • JOB PLAN 2 Information 3 Creativity 1 Selection (Project, Scope, Data, Team Members) 5 Development 4 Analysis 6 Presentation (FA FAST Focus Points) Ideas Concepts) (Focus Points (Evaluate Rank Select Concepts) (Improve Proposal Value, Document) (Recommendations to Sponsors) WRITTEN REPORT & ORAL PRESENTATION • Information for Decision-Makers • Guidance for Implementation • Records for Audit & Verification 7 Implementation 8 Verification 7 Implementation 8 Verification
- • JOB PLAN 2 Information 3 Creativity 1 Selection (Project, Scope, Data, Team Members) 5 Development 4 Analysis 6 Presentation 7 Implementation 8 Verification (FA FAST Focus Points) Ideas Concepts) (Focus Points (Evaluate Rank Select Concepts) (Improve Proposal Value, Document) (Recommendations to Sponsors) (Schedule, Budget, Staff, etc.) (Audit Actual Results and Compare) 8 Verification
- • JOB PLAN 2 Information 3 Creativity 1 Selection (Project, Scope, Data, Team Members) 5 Development 4 Analysis 6 Presentation 7 Implementation 8 Verification (FA FAST Focus Points) Ideas Concepts) (Focus Points (Evaluate Rank Select Concepts) (Improve Proposal Value, Document) (Recommendations to Sponsors) (Schedule, Budget, Staff, etc.) (Audit Actual Results and Compare)
- IMPROVE CUSTOMER SATISFACTION - Major appliance company product ratings increased from “unsatisfactory” to “ recommended”; new product rated one of “top three”. ROI - 40:1 typical (economic benefits / VM study costs) REDUCE PRODUCT COSTS - Electrical component manu- facturer introduced new lighted switch achieving larger market share with 30% lower product costs. INCREASE ORGANIZATIONAL EFFICIENCY - Sales training department reduced total program cost by 47%. INCREASE PROCESS EFFICIENCY - Machining / assembly costs reduced by 40% for automotive forgings. BENEFITS
- Monetary Value Product Life Cycle PRE | MFG. Value Engg. Value Anal. Value Mgmt. VP PLANNING CONCEPT DEVEL. DESIGN/ DEVEL. PI LOT PROD ONGOING MFG. Potential Savings Cost to Change
- EXAMPLE: Team Workshop Cost 5 Day Project 9 TIME (days) COST (w/OH) $10,800 5 $5,000 5 $2,000 5 $2,000 5 $2,300 5 $2,500 5 $2,500 3 $1,500 $12,800 $1,000 $29,600 $32,000 $15,800 Travel Exp. Total $800 $18,900 TEAM MEMBERS Facil -FT Subtotal Asst Facil -FT Member A-FT Member A-FT Member A-FT Member A-FT Member A-FT Other - PT Subtotal 3 Day Project 6 TIME (days) COST (w/OH) $7,200 3 $3,000 3 $1,200 3 $1,200 3 $1,400 3 $1,500 3 $1,500 1 $500 $7,300 $10,200 $21,000 TOT (rounded w/8% cont)
- VE Society International Professional society for VM practitioners www.vesociety.com SAVE International Professional society for VM practitioners www.value-eng.org Miles Value Foundation VM reference center at College of Engineering, Univ. of Wisconsin www.wisc.edu/wendt/miles VeToday Value Methods information web site: www.vetoday.com REFERENCES
- QUESTIONS ? THANK YOU
Notas do Editor
- Today I would like to review the basic principles and elements of the Value Methodology. This review is intended to provide an overview which will enable you to determine if the process could apply to problems or projects at your company. While this presentation includes examples which relate most directly to value improvement of products, the same methodology can be applied to analyze systems, improve construction projects, industrial processes and organizational improvements as well.
- Today I would like to review the basic principles and elements of the Value Methodology. This review is intended to provide an overview which will enable you to determine if the process could apply to problems or projects at your company. While this presentation includes examples which relate most directly to value improvement of products, the same methodology can be applied to analyze systems, improve construction projects, industrial processes and organizational improvements as well.
- Today I would like to review the basic principles and elements of the Value Methodology. This review is intended to provide an overview which will enable you to determine if the process could apply to problems or projects at your company. While this presentation includes examples which relate most directly to value improvement of products, the same methodology can be applied to analyze systems, improve construction projects, industrial processes and organizational improvements as well.
- We will be reviewing how the Value Methodology can be used to improve the relationship between WORTH and COST. Another term that is used to refer to this relationship is VALUE FUNCTION. Generally we consider that we are getting the desired value when the Value Function is equal to ONE or greater.
- You may have heard the terms “Value Engineering” or “Value Analysis” used as references to this methodology. These are terms that apply to using Value Methodology at different stages of the project or product life cycle. Value Methodology can be successfully applied during any stage of the life cycle. When employed prior to concept development it is referred to as Value Planning. When utilized as a tool to assist during the early phases it is typically referred to as Value Engineering. When applied after the design has been implemented the term Value Analysis is used. It is not critical to be dogmatic about using these terms in a restrictive sense -- they all refer to methods and disciplines which are essentially identical -- and which seek to improve the value function.
- Today I would like to review the basic principles and elements of the Value Methodology. This review is intended to provide an overview which will enable you to determine if the process could apply to problems or projects at your company. While this presentation includes examples which relate most directly to value improvement of products, the same methodology can be applied to analyze systems, improve construction projects, industrial processes and organizational improvements as well.
- Value Methodology focuses on improving the relationship between WORTH and COST. Emphasis can be placed on improved value, lowering costs, or some combination of both which results in the desired balance. Improvement to the WORTH attributes, such as increasing the safety or reliability of a product with an existing suitable level of performance provides more VALUE. Likewise, reducing the amount of training or maintenance that may be required also provides more VALUE. While Value Methodology can focus solely on the COST reduction side to drive the VALUE equation higher, improving the WORTH attributes is just as valid and should not be overlooked. Value Methodology can address both the WORTH and COST elements.
- When using the term WORTH we are typically using it to describe positive attributes of a product, system, process or service. These are desirable attributes that will satisfy our needs in accordance with our expectations. These attributes have, either consciously or subconsciously, been deemed to be important or necessary. The term COST is used to describe attributes of the product, process or service that may diminish our satisfaction if they are “out of balance” with the WORTH attributes. We know that these attributes are included along with the positive WORTH attributes when we select the products, processes or services. For instance when we purchase a car we expect that there will be some maintenance costs as we continue to add mileage. But we want to make sure that these COSTS are proportionate with our expectations or we will become disappointed with our selection. For instance, we will not likely be very pleased about a selection that provides us with great performance, performance that meets (or even exceeds) our expectations if the rate of wear and breakage is excessive. The COSTs of this selection won’t compensate for the WORTH of the performance -- and we will consider this selection to have resulted in POOR VALUE.
- Value Methodology is a structured process that has been proven, over time, to yield the maximum benefits in terms of the quality of the results that are achieved by the team. It is most often practiced in a team environment. The teams members engage in a structured multi-step process which promotes a high level of communication and common understanding amongst the team members. The major distinguishing elements of the Value Methodology is Function Analysis -- a unique tool that stimulates new insights regarding the subject of the workshop. This tool, which was originated by Larry Miles, the first practitioner of Value Methodology at General Electric, has remained as the core ingredient of the process for over 50 years due to the strength and benefits of its application. The methods and tools are oriented to generate highly creative ideas and concepts to improve the value function.
- The structured process of the Value Methodology is referred to as the JOB PLAN. This Job Plan consists of 8 stages including: Selection, Information, Creativity, Analysis, Development, Presentation, Implementation and Verification. I will explain each of these stages as part of this review so that you can see how they relate to accomplishing the overall objective of the workshop. The Workshop, during which the team members all participate in a hands-on manner, consists of stages 2 through 6. This is where the combined abilities and skills of the team members are concentrated. It is anticipated that at least some of the team members may be directly involved during the Implementation and Verification stages of the Job Plan as well, but their participation is required for each of the stages from Information through Presentation. Now we will examine each of the Job Plan stages in more detail.
- During the Selection stage of the Job Plan a project is selected. Again, projects may be anything along the life cycle spectrum. Indicators of appropriate projects include those where: - traditional solutions aren’t working - solutions proposed to date are too costly - schedules are begin missed - costs (product, project, recurring) are increasing - market share is being lost, or momentum is lagging Potential benefits, cost reductions opportunities and ROI improvements are also considerations. The SCOPE of the study must recognize “real world” constraints of funding and time available for a study and access to the expertise that can be included on the team. The more data that is available the better the team will be able to recognize opportunities for improvement. Data related to costs, prices, market situation and technical references are all useful. The composition of the team should assure that the team dynamics are positive. Team members (except for the facilitator(s) need not be experienced in the Value Methodology, however, they should be receptive to the concept and willing to concentrate their efforts on the study for its duration.
- The composition of the team is very important. Teams composed of 5 to 7 members participate in a highly interactive workshop over a period of several days to generate the value improvement proposals related to a selected project. Members of the team should be selected to fully cover the involved technical specialties, customer needs and constraints of the topic to be studied. Optimum results can be anticipated with people that have ability to extend their thinking beyond the existing horizon and envision new innovations. Management is relied upon to assist with the team selection. Since the process is quite structured the team must be facilitated by a qualified Value Study Team Leader who is skilled in applying the principles of Value Methodology, who can insure that the workshop events proceed in the appropriate sequence, and who can manage the workshop to meet the required timing schedules. The value study workshop involving the study team requires adherence to the principles and structure of the Value Methodology. The Value Facilitator is trained to insure such adherence.
- Once the Selection effort is completed the team is assembled and the formal Workshop process begins. All of the information is shared with the team members whose first effort is to analyze the subject of the study using Function Analysis. This will lead to defining the subject in terms of a FAST diagram from which a number of Focus Points will be generated. Function Analysis is one of the signature activities of the Value Methodology. It is a powerful technique to identify the “essence” of the subject being studied. Using this technique the team members begin relating to the subject of the study in a creative mode and to begin to reduce the influences of old paradigms associated with the subject.
- Function Analysis requires that each element or component of the subject of the study (the process, the product, the organization) be described in two words. These words are to describe “WHAT IT DOES” instead of describing the components in conventional terms of “WHAT IT IS.” The two word descriptions must include a VERB and a NOUN. Function descriptions are limited to two words so that ambiguity is reduced. Each unique function of each component can be described with as many two word descriptions as necessary to fully expose the complete utility of the item. An example we will use today is a pencil. One of the functions of a pencil is that is “makes marks”. We’ll use the pencil example to see how Function Analysis enables creation of the FAST diagram and FOCUS POINTS.
- Our example is a simple lead pencil with six components. We are studying this pencil in order to identify and quantify opportunities to make it more competitive -- in this instance by reducing costs. First we will examine the eraser and determine its function -- two words, a verb and noun, that describe “what is does”. In this instance we determine that its function is to “Remove Marks”. Then we examine the band. We identify two functions “Secure Eraser’ and “Improve Appearance” as the functions performed by the band. We proceed through the various elements of the pencil assigning FUNCTIONS to each. As you can see several of the components can each have several functions. And some functions are provided by more than one of the components. We also have the costed bill of material available as a reference for this study. Using these costs we allocate the costs according to the functions. Some are pretty direct - the total cost of the eraser is assigned to “Remove Marks”. Others, where the component has multiple functions, may require a division of the costs amongst the functions. Sometimes there is an easily determined method for such allocation -- in other instances the judgement of the team members is used for this allocation.
- Now we have a functional basis for our study --a definition of “WHAT IS DOES” derived from the information which described “WHAT IT IS.” This will enable us to “reassemble” the pencil along functional lines. The tool that we use for this is the FAST Diagram.
- Both forms of the FAST diagram enable the functions to be arranged in a logical relationship. Additionally the functions are categorized as Higher Order, Basic, Secondary or Supporting. The costs of the various functions, when available, are likewise displayed on the FAST diagram -- usually as a percentage of the total cost. This provides a matrix for categorizing the costs to produce a product or system or to facilitate a process. Once a FAST diagram is completed it can be scrutinized to identify areas which do not conform to expectations. These functions are then identified for special study during the balance of the project.
- FAST is an acronym for FUNCTION ANALYSIS SYSTEM TECHNIQUE. There are several standard formats for FAST Diagrams including a Technical FAST and a TASK or CUSTOMER) FAST. The Technical FAST diagram format is illustrated here. This was the original diagramming format developed during the early years of Value Methodology. TECHNICAL FAST has been used historically by governmental units. The TECHNICAL FAST diagram is often preferred when a portion of a total product, process or system is being analyzed.
- A FAST diagram arranges the functions into a schematic format which illustrates the logical relationships between the functions. We’ll look at the second type of FAST diagram -- CUSTOMER (or TASK) FAST to illustrate this process in more detail. The PURPOSE of the item being studied is listed on the far left of the diagram. This is referred to as the HIGHER ORDER FUNCTION. It is also referred to as the TASK -- what is it that the user wants to do? What is the reason it exists? The TASK is separated from the other functions be a vertical SCOPE LINE. The functions to the right of the SCOPE LINE are the BASIC and SECONDARY functions. They are arranged horizontally according to HOW and WHY they relate to each other. The PRIMARY BASIC and SECONDARY functions are listed at the top of the diagram. These functions define CRITICAL PATH -- those functions that must be performed in order for the HIGHER ORDER function to be accomplished. The SUPPORTING FUNCTIONS are listed below the PRIMARY FUNCTIONS. These supporting functions, while not essential, may be extremely important in marketing and selling the product and in building customer acceptance. The CUSTOMER FAST format evolved with the second generation of Value Engineers. Compared to the TECHNICAL FAST which focuses on a portion of a larger product or system, the CUSTOMER FAST diagram is used to look at a total product, service or system. We will be using the CUSTOMER FAST format for the examples discussed in this introductory review.
- Let’s now see how such a FAST diagram can be applied to our pencil example. We begin the diagramming process with the FUNCTION / COST schedule that was developed during the FA (FUNCTION ANALYSIS) step. We will use the CUSTOMER FAST format that we just discussed. The first activity is to determine “what is the HIGHER ORDER function -- the TASK -- for the pencil?”-- “why does one use a pencil?” In this instance, to accomplish the task from the point of view of the USER, the function of CONVEY INFORMATION has been determined to describe this function. Then, those functions from the FUNCTION / COST schedule that best conform with the HOW / WHY logic are selected as the PRIMARY BASIC and SECONDARY functions. We arrange them according to how well they “make sense” as we question HOW from the left to right and WHY from the right to the left. The cost of each FUNCTION, as a proportion of the total cost, are also included on the diagram. We follow the same process until all of the identified FUNCTIONS are arranged and categorized in the FAST diagram.
- The description of the pencil, as now illustrated on the FAST diagram, provides us with a basis for identifying FOCUS POINTS. These FOCUS POINTS are most typically recognized as: - the BASIC FUNCTIONS - any VALUE MISMATCHES, where the proportion of cost for supporting functions seems to be too high or low for the function that is being performed, and - areas of the FAST diagram that exhibit unusual complexity. Let’s take a look at our pencil example to see what FOCUS PONTS can be identified.
- The BASIC FUNCTIONS for the pencil, along with three of the supporting functions meet the Value Methodology criteria for FOCUS POINTS. There are no COMPLEXITY related FOCUS POINTS since this is a very simple example. During the next phase of the JOB PLAN these would be the elements of the pencil that would most likely yield the highest number of new ideas and concepts and which would have the most dramatic potential impact related to cost reductions and performance improvements.
- As we continue to implement the JOB PLAN we are now prepared to begin generating alternative ideas and concepts to improve the areas of the product, process, system or organization. A number to tools are available for idea generation. Some are more appropriate for certain types of studies so it is useful to have a variety of tools for this important step. We’ll use the BRAINSTORMING approach for illustration purposes.
- No matter what tool for idea generation is selected the objective is to have unfettered, open-minded sessions with all team members participating. Some rules during this include: - Use the FOCUS POINTS - Verbalize each idea - Document each idea - Defer analysis -- that’s later - No negative thoughts - No negative body language Ideas generate additional -- they are “synergistic” and “piggyback” on each other -- so a large quantity of ideas is desired.
- Now the ideas need to be organized into conceptual form. Again, a number of proven tools are available. One that works well in conjunction with the brain-storming ideation tool is AFFINITY GROUPING.
- During AFFINITY GROUPING ideas with similar “themes” are clustered together. This is an interactive effort by the team members. Just as during ideation, the AFFINITY GROUPING activity can lead to additional ideas and concepts while the activity is ongoing. All of the ideas related to each concept are recorded for further analysis. Those ideas that are deemed to be less significant or practical can be relegated to a “further analysis” category or assigned to a “drop out” category. As the concepts evolve any observations related to BENEFITS, DISADVANTAGES and RISKS related to the concept are be noted.
- The next step in the JOB PLAN is to determine which of the CONCEPTS have the highest potential. We want to insure that the concepts which are selected have a high probability of being implemented -- and that when they are implemented the payoffs will be as high as possible. Again, a number of various tools can be used. For purposes of illustration let’s follow through how PROBABILITY GROUPING is used to rank and select high potential concepts
- For this example we’ll use a 3 by 3 matrix with the horizontal axis segmented by descriptions of a range of outcomes that could be expected from the concepts. The other axis is labeled with the expected degree of difficulty of implementation from Easy to Hard. Anything in the sector labeled Large Benefits and Easy to Implement is obviously a preferred concept. Conversely, concepts that are deemed to fall into the Small Benefits / Hard to Implement sector will not be selected. Team members locate each concept on the grid. This is an interactive process which takes into account the particular issues related to each concept. Once all the concepts have been added to the grid it is divided into three sections by placing two slanted lines on the grid. Those concepts that are located in the upper left sector will be developed as proposals by the team. Those that fall into the middle sector will be documented and submitted to the study sponsors as concepts for future consideration. Those falling in the lower right sector will be rejected.
- According to the JOB PLAN we now undertake to develop the high potential concepts selected during the Analysis step. There is not typically enough time during a value study to complete detail design of any of the concepts. However, during this phase of the JOB PLAN
- Today I would like to review the basic principles and elements of the Value Methodology. This review is intended to provide an overview which will enable you to determine if the process could apply to problems or projects at your company. While this presentation includes examples which relate most directly to value improvement of products, the same methodology can be applied to analyze systems, improve construction projects, industrial processes and organizational improvements as well.
- Today I would like to review the basic principles and elements of the Value Methodology. This review is intended to provide an overview which will enable you to determine if the process could apply to problems or projects at your company. While this presentation includes examples which relate most directly to value improvement of products, the same methodology can be applied to analyze systems, improve construction projects, industrial processes and organizational improvements as well.
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