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6-b1) Product Function Analysis: Value Engineering (VE) and

Value Analysis (VA)

Abdulaziz M. El-Tamimi

What is Value engineering and Value Analysis?

Value engineering (VE); It is a systematic method to improve the "value" of goods or products

and services by using an examination of function. Value, as defined,is the ratio of function to cost

Value can therefore be increased by either improving the function orreducing the cost.

Value engineering uses rational logic (a unique "how" - "why"questioning technique) and the analysis of function to identifyrelationships that increase value.

It is considered a quantitative method similar to the scientificmethod, which focuses on hypothesis-conclusion approaches to testrelationships, and operations research, which uses model building toidentify predictive relationships.

What is Value engineering and Value Analysis?

Value Analysis (VA); It is an orderly and creative method to increase the value of an

item. This item" can be a product, a system, a process, a procedure,

a plan, a machine, equipment, tool, a service or a method ofworking. Value Analysis, also called Functional Analysis wascreated by L.D. Miles.

The value of an item is how well the item does its functiondivided by the cost of the item (In value analysis value is notjust another word for cost):

Value of an item =performance of its function / cost

What is Value? Value: That amount of some commodity, medium of exchange, etc.

that is considered to be equivalent to something else (Oxford English Dictionary)

The Utility theory : The value of something is related to its utility -in the sense that the more uses an item has the greater is its value

Iron and Gold The Labor theory: This theory suggests that the value and labor are

proportional - the more labor work done on an item the higher its value will be

One can increase the value of some product by simply selecting the mode of production with the highest labor costs

The Cost theory: The value of some item is equated by its cost - the more it costs the more value it gain

The value of a Christmas tree would be the same in June is as it in December

The Price theory: The price paid in exchange for an item is a measurement of its value

The inconsistency here is that if the value of the item to be traded were the same to the buyer and the seller, neither would be motivated and the exchange would never be executed

What is Value characteristics?

Value is relative and is not an inherent feature of anything

Value can be measured only by comparison Value is the relationship between what someone wants

and what he/she is willing to give up in order to get it The value of an item can be measured only by the

individual desirous of attaining or retaining it

Types of Value in VEValue Engineers are most concerned with Economic Value, which itself can be subdivided into four types, Use value:

The work or service it can perform or help it can accomplish Esteem Value:

Describes the feature or attractiveness of an item that causes it to be desired

Cost value: Which can be defined as the total cost of producing a particular

item and it represents the effort that must be expended to acquire an item. (The sum of labor, material and overhead costs)

Exchange value: Is the quality of an item that allows trading the item for

something else It is a measure of all the properties or qualities of an item that

could make someone give something else up for it

Defining Value

The value of a product is a rating of the acceptance of a product by the customer and hence the final index of economic value.

The value of a product is always relative and it is the result of a combination of the specific value types.

In general; value increases with higher exchange, esteem and use value but decreases with higher cost value

Some Definition of Value Engineering

Value Engineering is a study of all possible ways of developing new products that will perform required and unequivocally defined functions at minimum cost (Fasal, 1972) Value Engineering concentrates its cost reduction effort on a search

for a new solution rather than an already accepted solution Value Engineering is a proven management technique using a

systematized approach to seek out the best functional balance between the cost, reliability, and performance of a product or project (Zimmerman and Hart, 1982)

Value Engineering is an organized approach for obtaining optimum value for every dollar spent, while maintaining or improving quality, safety, reliability, and maintainability. It is a problem-solving technique based on analysis of the project functions demanded by the owner(s) in order to satisfy the end user(s) ( Mansour, 1994)

Value Engineering IS

System Oriented a formal job plan to identify and remove unnecessary costs

Multi-disciplined Team Approach Teams of experienced designers and VE consultants

Life Cycle Oriented Examine the total cost of owing and operating a facility

A Proven Management Technique

Function Oriented Relates function required to the value received

Value Engineering IS Not

Design Review It is not intended to correct omissions made in design nor to

review calculations made by the designer A Cheapening Process

It does not cut cost by sacrificing needed reliability and performance

A Requirement Done On All Designs It is not a part of every designer scheduled review, but a

formal cost and function analysis Quality Control

It does more than review fail-safe reliability status of plant or product design

How value analysis works?

To increase the value of products or services consider the function ofindividual items and the benefit of this function and balancing thisagainst the costs incurred in delivering it.

Value analysis technique involves cost reduction activities by relatingthe cost of components to their function contributions.

Then the task becomes to increase the value or decrease the cost.

How value analysis works?Example; In analyzing a pen, the following table is used to connectcomponents with the functions to which they contribute and hence identify areasof focus.

Value Engineering Techniques : Job Plan

Job Plan Value Engineering can be thought of as the use of

specific techniques in an organized manner This organization is provided by the job plan which

can be defined as thought processes and activities needed to properly perform a value engineering study (Mansour, 1994)


1. The Information Phase Information related to the study is to be gathered

2. The Creative Phase the item being studied are generated by the use of creative thinking In this phase all suggestions are recorded regardless of there

impracticability, and no judgment is made about any suggestion in this phase

Alternates methods of accomplishing the same essential function of3. The Evaluation Phase

The alternates resulting from the previous phase are now analyzed, not to eliminate the impractical ideas , but to improve them to the point of acceptance

Then the ideas that have the greatest chance of success are selected for he next phase


4. The Investigation Phase Detailed development of the ideas selected in the previous phase are

made Possible roadblocks to implementation are recognized The preferred proposal is planned along with any other alternative

proposals if feasible

5. The Reporting Phase All the data regarding the preferred proposal is presented to those

having the power to accept or reject the proposal This phase can be thought of as a selling task, where the data has to be

presented in a way that can be easily understood by the authorized people, to make the final judgment about the proposal

Value Engineering Techniques : Functional approach

Cost is related to function not to production The production engineer asks

How a part can be produced more cheaply The value engineer asks

How the function performed by the part can be provided by the least cost

For example If it was required to make an ashtray, a production engineer might

conduct a study which results in changing the base material or changing the production method, while a value engineer study could result in making an ashless cigarettes


A value engineer must ask and answer the following series of questions: Q1: What is it ? The answer will establish the parameter of the study Q2: What does it do ? The answer will provide the definition of the function Q3: What does is cost ? The cost here refers to the total cost of the item Q4: What is the function worth ? The evaluation phase starts with the answer

of this question Q5: What else will accomplish the function ? The creative phase is entered.

All the possible alternatives are listed, and the ideas that best perform the function and have the highest degree of acceptance and possibility for implementation are selected

Q6: What will that cost ? Costs are estimated and assigned to the best ideas, this will refine the possibilities to a few ideas and will establish priorities for these few. The best of these ideas are selected for further development

6-b2) Product Function Analysis: FAST Method

Abdulaziz M. El-Tamimi

VA &The function of a product;

Value analysis technique involves cost reductionactivities by relating the cost of components to theirfunction contributions.

Value analysis defines the function as:A basic function: It is anything that makes the

product work or sells. A function that is defined as "basic" cannot change.

Secondary functions: It is also called "supporting functions", described the manner in which the basic function(s) were implemented. Secondary functions could be modified or eliminated to reduce product cost

Basic Function Model

Basic Function: It is the overall intended purpose of the product [WHAT

the product is supposed to do] It is a statement of a clear, reproducible relationship

between the available input and the desired output It is an action statement represented by Verb-Noun

Examples:Fingernail Clipper Clip NailsCar Transport PeopleCopier Machine Make Copies

Secondary Function Model

Secondary Function[Sub-Function] Overall functions are divided into smaller functions

[A component of a product function] The relationship between overall functions and sub-

functions is usually governed by a constraint or input-output relationships

Example: Copier Make Copies

Make Color Copies Make B/W Copies Zoom in/out Copies

Function Model

Function is an abstraction Process: It is The process of ignoring what is particular or incidental

and emphasizing what is general and essential. Functions are satisfied by subsets of the product through

their operation

Constraint Relationship: It is a statement of clear criterion that must be satisfied by a

product and requires consideration of the entire product todetermine the criterion value

Constraints are satisfied by properties of the entire product

Function hierarchy

Function Modeling: FAST Method

Function Analysis System Technique (FAST) It is concerned with the study of functions and function interactions

by asking three questions and then diagramming the results.The steps necessary to construct the FAST diagram are as follows:

1) Prepare a list of all the functions by assembly or system using the verband noun technique of identification of function.

2) Select the function that you consider to be the basic function.Determine the position of the next higher and lower function byspecifically answering the following logic questions:

"How?": How is this function accomplished? "Why?": Why is this function performed? "When?": When is this function performed?


This means that:

"Why?" on the left of the function identified by the question"How?" on the right.

The "Why" and "How" logic


3. Determine logic questions to each function and establish the relationbetween the functions at higher and lower levels that are required toperform the highest-level basic function. When this has beenproperly done, each function in the entire series is illuminated onthe left by "Why it is done?" and on the right by "How it is done?"

The "Why" and "How" function diagram.

Example


4. Next the question "When?" is asked of each function, and it isdiagramed in time sequence in relation to the other functions so thatexamination of the diagram vertically illuminates the matter ofwhich functions are to be accomplished at the same time and thesequential relationships of all others.

Example

Basic FAST diagram


5. Continue FAST diagram until we arrive at a function that is anaccepted interface function for the scope of the problem. thescope of the problem is defined and outlined on the FASTdiagram by the scope lines (vertical broken lines).

6. The arrangement of these functions, as shown by the FASTdiagram, establishes the critical path. The critical path identifiesthe functions that are the result of other functions to beperformed.


NEEDS

WANTS

PROJECT SCOPE

WHY HOW

Enabling the Secondary Function

Basic Function

Secondary

Function

Enabling the Secondary Function

Secondary

FunctionEnabling the Secondary

Function

Essential to the performance of the task/function

Fulfills basic needs of the users

Not essential to the performance of the task/function

Essential to productivity increase, project acceptability

Fulfills the wants of the user

Solution

Solution

Solution

Customer

Function Analysis System Technique Diagram (FAST)


FAST diagram of overhead transparency projector.

Function Modeling: FAST Types

Types of FAST diagram

Task-FAST: Focus on the aspects of customer needs and givesa total view of the product function (Ex: for sharpener thetask function is to provide shaving of pencil)

Technical-FAST: Focus on detail aspects ofproduct/component functions within the design (Ex. Forsharpener blade function -pencil holder function)

Function Modeling: FAST Basic Steps

Function analysis is completed in three simple steps.1. Identify the High Order Functions (for which the customer is

buying the product)

2. Construct a Function Tree by asking How? a function isperformed. Functions are described in two or three word verband noun combinations wherever possible. Eventually thequestion of how? will be answered with a part name or afeature of a part (such as surface finish).

3. Verify the Function Tree by starting at the bottom and askingWhy? a function is performed or a component or featureexists

Function Modeling: FAST Method steps

1) Step 1: Construct two vertical, dashed lines, one to the extreme left and one to theright. These lines define the scope of the product development objective.

2) Step 2: Place the basic function to the right of the left-hand scope line. Pose thequestion, Why is this the basic function being performed?. Place this function tothe left of the basic function and connect with a line, beginning the critical path.

3) Step 3: Generate functions to the right of the basic function. These should alwaysfollow how and why answer these functions with lines to define the furtherance ofthe critical path ring scheme and represent the secondary functions. Connect

4) Step 4: The critical path will end with an assumed function, outside the rightscope line. This function is external to the product.

5) Step 5: Generate the remaining secondary functions by placing them under thefunctions that relate to the basic or critical path secondary functions. Thesefunctions either occur at the same time or are caused by the functions at the criticalpath.

6) Step 6: State the objective of the development effort above the basic function. Inaddition, add one-time or all-time functions to the top of the diagram

Example Function Analysis: ballpen

Lets take a common ball point pen as an example.Its High Order Functions are to write on paper, beaesthetic and ergonomic, and to prevent loss from apocket. These are the things that a customer is buying.To achieve these three functions there are manysecondary functions that can be constructed into afunction tree as shown below.

Example Function Analysis: ballpen

6-b1) Product Function Analysis: Value Engineering (VE) and Value Analysis (VA)What is Value engineering and Value Analysis?What is Value engineering and Value Analysis?What is Value?What is Value characteristics?Types of Value in VEDefining ValueSome Definition of Value Engineering Value Engineering ISValue Engineering IS NotHow value analysis works?How value analysis works?Value Engineering Techniques : Job PlanValue Engineering Techniques : Job PlanValue Engineering Techniques : Job PlanValue Engineering Techniques : Functional approachValue Engineering Techniques : Functional approachValue Engineering Techniques : Functional approach6-b2) Product Function Analysis: FAST MethodVA &The function of a product; Basic Function ModelSecondary Function ModelFunction ModelFunction hierarchyFunction Modeling: FAST MethodFunction Modeling: FAST MethodFunction Modeling: FAST MethodFunction Modeling: FAST MethodFunction Modeling: FAST MethodFunction Modeling: FAST MethodFunction Modeling: FAST MethodFunction Modeling: FAST MethodFunction Modeling: FAST MethodFunction Modeling: FAST MethodFunction Modeling: FAST TypesFunction Modeling: FAST Basic StepsFunction Modeling: FAST Method stepsExample Function Analysis: ballpenExample Function Analysis: ballpen

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