Value Engineering Workshop MECH 497

Professor Paul Zsombor-Murrayhttp://www.cim.mcgill.ca/~paul Professor Vince ThomsonLucie Parrot, Certified Value SpecialistJoe Slanik, ing.

Value Engineering

”A philosophy implemented by the use of a specific set of techniques, a body of knowledge, and a group of learned skills.

It is an organized creative approach which has as its purpose the efficient identification of unnecessary cost, i.e., cost which provides neither quality, nor use, nor appearance, nor customer features."  

Lawrence Miles, 1946, General Electric Co.

Value Engineering

A formalized method to• select customer critical functions• quantify value• relate customer benefits to costs• create and select alternatives• reduce costs• focus on effective action

Systems Approach• focused on customer and performance• applied at all stages of operation

Value Engineering

Applications•design, manufacture, inspection, procurement,installation, maintenance, i.e., the total life cycle of product, process, or service

Other terms•Value Engineering Value Analysis, Value

Improvement•Value Management - benefit/cost of all activities

Value Engineering

5 phase job plan• Information• Speculation• Evaluation• Development• Persuasion

Value Engineering

Information• get the facts about the problem• define the functions } FUNCTIONAL• evaluate the functions } ANALYSIS

Speculation• define alternatives } CREATIVE

} TECHNIQUESEvaluation• develop specifics for alternatives• costing, value matrix } VALUE• comparative cost-value chart } ANALYSIS

Value Engineering

Development• decide on alternatives• prepare implementation plans

Persuasion• report solution and action plan• anticipate roadblocks• SELL PLAN TO CUSTOMER

Value Engineering

Used by major corporations • in the new product introduction process (NPI), • in product/process renewal, • in quality assurance programs,• GE, IBM, Pratt & Whitney, Hydro Quebec, Transport

Ontario, Alberta Infrastructure,….

• VE is required for government contracts in the USA and in other countries.

• Many professional organizations in several countries Society of American Value Engineers (SAVE) Canadian Society for Value Analysis (CSVA –SCAV)

Value Engineering Workshop

Course Outline

Course Notes • handed out on 21-Sep-15• no textbook

Dates

Student Organization

Workshop Sessions

TrialPresentation

Final Presentation*

14-Sep-15 21-Sep-15 09-Nov-15 16-Nov-15

28-Sep-15

05-Oct-15

26-Oct-15

02-Nov-15

* at the Delta Montreal Hotel, 475 President Kennedy

Organization

Course times 1330 - 2130 hrs MD 267

• Lecture 1330-1500• Coffee 1500• Project 1515-2130• Dinner 1745-1845 (Royal Victoria residence)

Evaluation• Companies participate in the evaluation of

students.

Organization

• 4-7 projects• 4-7 teams of 7-4 students, 1-2 company engineers• Need a captain and a scribe

Attendance is mandatory at all classes. (Conflicts)

Conduct• Towards companies

professional, confidentiality, intellectual property• Towards peers

fairness: participate, share workload

Projects

CV Intl. Plastics Re-bar hardware warehousing ASAQ Court sports for the blindSlanik Snow/ice-free sidewalkWaterax Fire pump clamp & primerThomas & Betts Emergency lighting LED

conversionKamec Precision Plastic injection molding

automationArcelorMittal Robotic billet furnace loading arm

Electrochemical waste water treatment

WETT™: raw sewage to clean dischargeable water (a previous prospect)

CAE Trainer/Simulator

A previous project

A previous project

Value Engineering Workshop

• Sign up and preference sheet

• Information http://www.mcgill.ca/ve http://www.mcgill.ca/~paul Look @ stuff from

last year, e.g., sample final reports & this slide sequence, until new stuff is posted.