01.IntroductionToVe100 (NXPowerLite)

7/27/2019 01.IntroductionToVe100 (NXPowerLite)

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Value EngineeringAn Introduction


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# PARTICULARS REMARKS

1 What Ratio of Function to Cost

2 Why To Improve Value toCustomer

3 How Entire Workshop

4 Who Everybody engaged in

creating value chain5 When Concept, Design, Mfg.,

Delivery..Life Cycle

6 Where Value Chain

Typical Questions on Value Engineering


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Objective of this Two Day Program:

Create awareness on VE Methodology

What is VE?

Why VE?

How to apply VE?

Case Studies of

Past

Present

Future

VE


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4Pyramid of Knowledge

Know


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Know

Understand


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Know

UnderstandApply


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Know

Understand

Apply

Analyze


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Know

Understand

Apply

Analyze

Synthesize


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Know

Understand

Apply

Analyze

Synthesize

Evaluate


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Know

Understand

Apply

Analyze

Synthesize

Evaluate

Create


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11Pyramid of Value Engineering

Know

~ Utility


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Understand

~ Output

Know


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Wasteful

Spending Excellence

ShoddyWork

Low High

Efficiency

Low

High

Degree of

Achievement


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Analyze

~ Quality

Know

Understand

Apply


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Synthesize

~ Performance?

Know

Understand

Apply

Analyze


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Evaluate

~ Yield

Know

Understand

Apply

Analyze

Synthesize


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Know

Understand

Apply

Analyze

Synthesize

Evaluate

Create

~ Function


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The Ultimate in Value Engineering:

There are no ProductsThere are only Functions

Product

What we see


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The Ultimate in Value Engineering:

There are no ProductsThere are only Functions - Anon.

Product

Function

What Value Engineer sees


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Seminar Vs Workshop


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What is Value Engineering?


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What is VE ?

Powerful problem-solving tool that can

1. Value of Product / Service

Performance of Product / Service

2. Costs to customer


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Advantages of VE?


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Advantages of VE?

VE helps organizations compete moreeffectively in local, national andinternational markets by:

1. Decreasing costs - Increasing profits

2. Improving quality -Expanding marketshare

3. Saving time -Solving problems

4. Using resources more effectively..


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Father of Value Engineering?


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Father of Value Engineering?

Lawrence D Miles of GE, USAWho founded GE?

Circumstances leading to VE?

Todays situation?

GE

Logo


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Founder of GE


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193909010815?


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W W II Started at 1939-09-01-08-15?


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Developed VE Concepts During IIWorld War Years

Shortage of materials affectedproduction

Explored how alternative

materials could be considered atlower cost without affectingProduct Functionality /

Performance


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Heavy Wooden Chair

Molded Chair

Molded Stool

Two-legged Walker

Single Legged Chair?!


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US NAVY 1954

Analyze Design before Productionization

Engineering Value during Development


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US Army

US Air ForceUS Department of Defense 1961

Who is the largest buyer in anycountry?


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US Government mandated that all majorpurchases & contracts be covered by an

incentive clause: Gains of VE will be sharedbetween Govt. & Contractor

Private Industry followed suit in Engg. & Mfg.

SAVE (Expansion?) founded in 1958

CVS

SAVE - International


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1993 US Office of Management & BudgetsOMB Circular A-131:

Federal agencies to use VEmethodology as management tool toreduce program & Acquisition costs


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1995 National Highway System DesignationAct USA states:

States to carry out VE analysis for allfederal-aid highway projects withestimated total cost > $25 million


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Definition of VE by SAVE International?


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VESystematic team approach to improve Valuein product or service by using examination of

Function

Definition of VE by SAVE International

VFunction

Team


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Indian Value Engineering Society INVEST1978

Society of Value Management SIVAM - 1990


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VE Definition:

Application of analytical methods & creative

techniques to ensure that the essentialfunctions of a product or service are providedat minimum cost without reducing Quality &

Reliability


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VE =

Achieve essential Functions of Product

@ Minimum Cost

Without compromising Q & R

Apply Analytical methods & Creative Techniques


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Synonyms of Value Engineering?

S f V l E i i (VE)?


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Synonyms of Value Engineering (VE)?

1. Value Assurance

2. Value Buying

3. Value Control

4. Value Engineering

5. Value Improvement

6. Value Management

7. Value Methodology

8. Value Research

VE Forerunner of


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VE - Forerunner of

1. DFMA - DFX

2. FMEA

3. FTA

4. Imagineering

5. Kanos Model

6. Six Sigma

7. Lateral Thinking

8. Lean Thinking

9. Taguchi Methodology

10. TQM

11. TRIZ

12. QFD.


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DFMA - DFX

VE - FA

Forerunner of

Boothroyd & Dewhurst


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DFMA - DFX Imagineering

VE - FA

Forerunner of


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DFMA - DFX

Kano Model

VE - FA

ImagineeringForerunner of


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DFMA - DFX

Lateral ThinkingVE - FA

Kanos Model


1970


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DFMA - DFX

Lean Thinking

VE - FA Lateral Thinking

Kanos Model

Imagineering

ToyotaProductionSystem

Forerunner of


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DFMA - DFX

VE - FA

FMEA

DFMA - DFX

Lean Thinking

Lateral Thinking

Kanos Model



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DFMA - DFX

VE - FA

Lean Thinking

Lateral Thinking

Kanos Model

Imagineering

FMEA

FTA

Forerunner of


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DFMA - DFX

VE - FA

FTASix Sigma

Lean Thinking

Lateral Thinking

Kanos Model

Imagineering

FMEA

Forerunner of


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DFMA - DFX

VE - FA

TaguchiLean Thinking

Lateral Thinking

Kanos Model

Imagineering

FMEA

FTASix Sigma

Forerunner of

Picture

F f


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DFMA - DFX

VE - FA


Lateral Thinking

Kanos Model

Imagineering

FMEA

FTASix Sigma

TQM

Forerunner of

Forerunner of


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DFMA - DFX

VE - FA


Lateral Thinking

Kanos Model

Imagineering

FMEA

FTASix Sigma

TQM

TRIZ

Forerunner of

Picture Altschuller

Forerunner of


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DFMA - DFX

VE - FA


Lateral Thinking

Kanos Model

Imagineering

FMEA

FTASix Sigma

TQM

TRIZ

QFD

Forerunner of

Picture


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58Application of ?

DFMA - DFX

VE - FA


Lateral Thinking

Kanos Model

Imagineering

FMEA

FTASix Sigma

TQM

TRIZ

QFD


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59Application of common sense!

DFMA - DFX

VE - FA


Lateral Thinking

Kanos Model

Imagineering

FMEA

FTASix Sigma

TQM

TRIZ

QFD


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Newton & 2 Cats

A f A li ti f VE?


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Areas of Application of VE?


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Can we apply VE to English Language?


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Miles conceived

Value = (Performance cost)

Value to customer of any productincreases if you

Increase Numerator

Reduce Denominator

Or?

Mil i d


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Miles conceived

Value = (Performance cost)

Value to customer of any productincreases if you

Increase Numerator

Reduce Denominator

Do both

People extended VE over time from


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People extended VE over time fromProducts to

Service

Project

Programvirtually anything where thereexists customer - supplier

relationship

A l i E i thi i d t il t


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VA = Examine Value thoroughly to knowmore about itscomposition

Analysis = Examine something in detail todiscover more about it

Ex: Chemical Analysis


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Value

VA = Examine Value thoroughly to knowmore about its composition

Engineering = Design & Build something


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Engineering = Design & Build somethingusing scientific principles

VE = Apply Value for Design

Value Engineered

house..


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Management = Plan, Organize, Control,.

towards success (Objectives)

VM = Manage Value

Every human activity involving expenditure of


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Every human activity involving expenditure ofmoney can be viewed through ValueParadigm

Value

ROI that public & private organizations derive


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ROI that public & private organizations derivefrom implementing VM programs averages 10 to 1

For every dollar invested in VM study - $10 in netsavings results.

- S.A.V.E. International

Expenditure for two days of Workshop?


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What do we see here?


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Japanese Mantra to succeed in Market


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Q

C

D

How?

Japanese Mantra to succeed in Market

What?


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VE

Q

C

D

How?


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How Does VE Work?


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How Does VE Work?

Through VE study

Brings together multidisciplinary team ofpeople who own problem & haveexpertise to identify & solve it

VE study team works under direction offacilitator who follows VE job plan

To review project

Making sure team understandscustomer requirements

Develops a cost-effective solution

U S Embassy


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US Embassy NairobiBudget Cost: $80 Million

(VE Savings $4.4 M)

U.S. EmbassyDar es Salaam

Budget Cost: $50 Million(VE Savings $2.2 M)


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Rock Line Original Grade

Standard RockExcavation Face

10M Clear Zone

Original Design


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g


Standard RockExcavation Face

VE Proposed RockExcavation Face

Earth Fill Over Rock Face

10m Clear Zone

10m Clear Zone

VE Proposed Design

(Net Savings $4 Million Accident Loss Reduction)

Original Design


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By VE, Make it

1. Greener2. Cheaper

3. Legal4. Refined

5. Reliable

6. Win

MIRA, UK


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# PARTICULARS VA VE

1

2

3


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# PARTICULARS VA VE

1 Cost Reduction Avoidance

2 For Products During Design

&Development

Already in

Production

3 Savings Less More


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Value Engineered English


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Value Engineering (VE) term coined by

Lawrence D Miles of General Electric USA

He developed VE Concept during Post IIWorld War Years, when shortage of material

affected GE production

Miles explored how alternative materials


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could be considered at lower cost withoutaffecting product performance

He conceived, Value = (Performance Cost)

Value to customer of any productincreased

If you improve performance at samecost

Reduce cost retaining sameperformance

People extended VE over time from Products


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pto

1.Service2.Project3.Program4.Virtually anything where there exists

customer supplier relationship !5.Why not to English?

Purpose of this presentation to show VE


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p papplicability to written English also

Value of written Message = (Effectiveness)(word count)

We improve Value by minimizing wordcount

Principles (Syntax & Semantics) of Value


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p ( y )Engineered English:

Rule # 1


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Use minimum words to convey meaning conciselyGrammar classifies words as one of 8 Parts of

Speech: Verb, Noun, Pronoun, Adjective, Adverb,Preposition, Conjunction & InterjectionWe can totally get rid of verbs like is, was, am, are,were in most places without any loss of meaning!Such verbs - better understood with a hyphenplaced, where they need to occur (If not convinced,kindly read passage above, written by following this

rule)Avoid use of articles a, an, the wherever possible

Rule # 2Conserve space by universally understood Symbols:


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Conserve space by universally understood Symbols:

# SYMBOL MEANING(REPLACES

WORD)

EXAMPLE

1 & And -

2 Therefore -

3 Invert Because -4 / Or Give me Orange

/ Apple

5 Divided By -

6 % Percentage -

7 Actual Numbers Numerals 5 Soldiers

8 > Greater than A > B

9 < Less than C < D

Rule # 3


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Rule # 3

Bulleted sentences do not require full stopsat ends

Rule # 4


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To improve Effectiveness, Nouns wherevernecessary written with capital letters

Conclusion:


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This value engineered write up contains 300words

Same written in conventional text would take

400 words!

Saving in written matter ~ 33%!

Improving communication Effectiveness

The rules are not God-given but are only


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man-made

You can add & modify rules

Please inform us of any such improvements

[email protected]

Please Remember

VE generic Problem solving Tool
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Thank You
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Documents

01.IntroductionToVe100 (NXPowerLite)