Value Engineering at Xerox

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Value Analysis and FASTDiagramming

Presented to the Product Development &Management Association of Western NY

September 17, 2003

Thomas Prentiss

Manager of Xerox Value Analysis and Value Engineering

Xerox Corporation(585) 422-5961

[email protected]


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We are all in the business of solvingproblems.We sell products and services to help

others solve their problems or satisfytheir needs and desires.

We solve our own problems in producingthese goods and services in a moreeffective and efficient manner.

What is Value Analysis?


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Some problem solving methods: JIT A Delta T Xerox (or fill in your ownname) Problem Solving Process Quality ImprovementProcess Design for Assembly

Design for Manufacturing Brainstorming Design for Six Sigma

Cut and Try Engineering Re-engineering

Cost Reduction Cost Down QFD Six Sigma

Lean Manufacturing Lean Six Sigma Balanced Scorecard Feynman problem solvingalgorithm


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Each is a process intended to HELP toarrive at a better solution, moreefficiently.

Most can be mapped to one another andmost are just variations on the ScientificMethod.

Each brings with it some common and someunique tools, techniques, and consultants.



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Value Analysis is a problem solvingmethodology which utilizes its own setof specialized tools and techniques tohelp a team generate optimumsolutions to their systems problems.


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Value Analysis is different because itemphasizes Function.

Value Analysis seeks to maximize theValue of a system.



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What is Value?

Value = Function/Cost

where Function is WHAT a systemdoes and

Cost is the total cost to implementthe function.


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Where is Value Analysis applied?

Value Analysis improves the VALUE ofany system: Hardware - Architecture, total machine,

module, subsystem or part

Process or Procedure - Engineering,manufacturing, service, business,

Organization - Any size, any stage

Software - Concept, design


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How is Value Analysis applied?

It is not an incremental task, but it is abetter way to work It provides structure and discipline to

normal work functions It provides tools/techniques to optimize

the teams efforts It provides documentation of the teams

process and results


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PossibleSolutionsPossibleSolutions

The Five Phases of Value Analysis

Implementation

Evaluation Integration

Innovation

Information

RealProblem setShortfall

Solution

PossibleSystem

Solutions

PossibleSystem

Solutions

BestSystem

Solutions

Best

SystemSolutions


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InformationPhase

Shortfall

Voice of Customer

Customer Requirements

Product Specifications

Knowledge transfer

FAST diagram

Current Status

History

RealProblem set

RealProblem set

Root Causes

Doom Loops

Tell Tales

Function Costs

Information Phase

Critical Parameters/Specs

Inputs/Outputs

Cause & Effect

Diagram

(for organizations)Functional Job Descriptions


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FAST Diagram

Developed by Charles W. Bytheway atSperry Rand Corp in 1964; presented in apaper to the Society of American ValueEngineers (SAVE) in 1965.

Functional Logic diagram Shows functional hierarchy, interactions

and interdependencies Determines functional costs Used at Xerox for over 30 years


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FAST Diagram

Each Box contains a Function Name

Action Verb Measurable Noun

How functions are connected to the right. Why functions are connected to the left.

Why A is

performed

How A is

performed

Function

A

How Why


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FAST Diagram

How Why

Requirement

Requirement

Input

FunctionA

FunctionL

FunctionK

FunctionJ

FunctionI

FunctionH

FunctionG

Function

F

FunctionE

FunctionD

FunctionC

FunctionB

Input

Input


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FAST Diagram

High Level Functions Requirements Outputs

Identification of interfaces Low Level Functions

Inputs

Identification of interfaces Level of detail

Matching of expected outputs and inputs

with interfaces


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Example - Cheap Pen

End Cap

Steel Retaining Tip

Clip Cap InkCartridge

Main

Body


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Example - Cheap PenAssembly Function List

PART/ASSEMBLY FUNCTION

End Cap Mount/locate ink cartridgeEnhance aestheticsMount/Locate main bodyEnable disassembly

Main Body Identify companyIdentify modelMount/locate retaining tip

Mount/locate clip capMount/locate ink cartridgeEnhance aestheticsEnhance grip


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Example - Cheap PenAssembly Function List

PART/ASSEMBLY FUNCTION

Clip Cap Cover writing pointRetain pen in pocketEnhance aestheticsReduce rolling

Steel Retaining Tip Mount/locate ink cartridgeEnhance aestheticsEnhance life of pen

Enhance perception of qualityImprove balance

Ink Cartridge Transfer ink to medium


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Example - Cheap PenFAST Diagram

How Why


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Example - Cheap PenFunction Cost List


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How Why


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FAST Diagram

Uses

Identifying functions to brainstorm. Documenting teams understanding of their

system

Bring new people up to speed transfer/shareknowledge of system Functional cost analysis Benchmarking Organizational responsibility flow Functional Job descriptions Training needs analysis


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Questions?

Value Analysis and FAST Diagrams

Documents

Value Engineering at Xerox