8/8/2019 Session 17 ORMB10-1

1/26

P d ti M g t Iroduction Management ISession 17 VA/VEession 17 VA/VE

8/8/2019 Session 17 ORMB10-1

2/26

What is Value?

According to Aristotle (350 BC) Political/ Social/ Economic/ Religious/ Ethical/

ypes o conom c a ues

Cost value

Use value

Esteem value Exchange value

Dipankar Bose - XLRI

8/8/2019 Session 17 ORMB10-1

3/26

Reasons for Poor Value

Lack of information Wrong beliefs

Reluctance to seek advice

Shortage of time ega ve a u e

Changing technology

Strict adherence to requirements

Poor human relations

Dipankar Bose - XLRI

8/8/2019 Session 17 ORMB10-1

4/26

What is Value Analysis?

Value analysis is an organized creative approach whichhas for its purpose the efficient identification of

. ., ,

nor use, nor life, nor appearance, nor customer features.

L. D. Miles

Dipankar Bose - XLRI

8/8/2019 Session 17 ORMB10-1

5/26

VE Job Plan Mudge (1971) Phasesg

General phase Information phase

Creation phase

Evaluation phase nves ga on p ase

Recommendation phase

Implementation phase

Dipankar Bose - XLRI

Next

8/8/2019 Session 17 ORMB10-1

6/26

Job Plan General Phase

Use good human relations Inspire team work

Overcome roadblocks

Apply good business judgment

Dipankar Bose - XLRI

Back

8/8/2019 Session 17 ORMB10-1

7/26

Job Plan Information Phase

Secure facts Determine costs

Dipankar Bose - XLRI

Back

8/8/2019 Session 17 ORMB10-1

8/26

Generalized Cost StructureProfitrofitSelling CostG leneralAdministrative CostsField Service andllelling Price Cost ofGoods SoldMiscellaneous Costs

OverheadCosts ConversionCosts Cost of GoodsIndirect Labor

Manufacturingndirect MaterialDirect Labor Prime

Dipankar Bose - XLRI

CostsDirect Material

8/8/2019 Session 17 ORMB10-1

9/26

Job Plan Function Phase

The goals of this phase are To define the functions that a product actually

To relate these functions to the cost and worth of

providing them

Dipankar Bose - XLRI

Back

8/8/2019 Session 17 ORMB10-1

10/26

Rules of Function Definition Rule 1: Expression of functions must be

A verb and a noun

Rule 2: Types of Functions Work function/ Sell function/ Constraint

Rule 3: Divide into two levels of importance Basic function/ Secondary function

Function Analysis System Technique (FAST) Technical oriented FAST Diagram Customer oriented FAST Diagram

Dipankar Bose - XLRI

Back

8/8/2019 Session 17 ORMB10-1

11/26

Example Screwdriver Technical FASTpComponents Functions

V b N

Customer FAST

Verb Noun

Handle

Facilitate Grip

Receive Torque

VarnishProtect Wood

Improve Appearance

Name Plate Identify Manufacturer

Suit Slot

Deliver Torque

Transmit Torque

Provide Approach

Facilitate Application

Prevent Rotation

Dipankar Bose - XLRI

Sleeve Prevent Cracking

Pin

Join Components

Withstand Force

Back

8/8/2019 Session 17 ORMB10-1

12/26

Function Analysis System Technique(FAST)FAST) How to differentiate between Basic Function and

Secondary Function?

Proposed by Mudge A Trial-and-error method

Divide the product into components or eac componen

Find basic function

Using numerical evaluation

Find weights of all basic functions The basic function with highest weight

Dipankar Bose - XLRI

8/8/2019 Session 17 ORMB10-1

13/26

FAST Developed by Charles V. Bytheway

Incorporating dimension When Richard J. Park

Customer oriented FAST Thomas Snodgrass & Theodore

Fowler

Function An active verb + A measurable noun

Dipankar Bose - XLRI

8/8/2019 Session 17 ORMB10-1

14/26

Technical oriented FAST Some Terms Scope line

Higher order function

Required secondary function

Causative function or Lower order function unc ons e same me an or re cause y

some other functions

All the time functions

One time function Design objectives

Dipankar Bose - XLRI

8/8/2019 Session 17 ORMB10-1

15/26

Technical Oriented FAST

Dipankar Bose - XLRI

8/8/2019 Session 17 ORMB10-1

16/26

Steps Identify Basic Function Answer the questions

Is this function what users are looking for?

,

do the job?

Will the function disappear, if the design approach isc ange

Dipankar Bose - XLRI

8/8/2019 Session 17 ORMB10-1

17/26

The FAST Diagram (TechnicalO i t d)riented)

1. Prepare a list of all functions

2. Use verb and noun to define a function

.

Involve the whole team in the diagramming exercise

4. Select the card which appears to be basic function. pp y og ca ques on ow an w y on se ec e

function to determine functions to right and left on this

selected function

6. Functions satisfy howwhy logic are required secondaryfunctions to be put in line

Dipankar Bose - XLRI

8/8/2019 Session 17 ORMB10-1

18/26

FAST Diagram (Technically Oriented)C ti dContinued8. Higher order function on the left side of scope line

9. All time function to be placed on right hand top corner

10. Design objectives is placed above the basic function

11. Functions that happen at the same time placed belowa unc on

Put them in reducing order of importance

12. Right scope line (dotted) to be drawn left of function that

is suitable input to the system13. Function right to the right side of right scope line is lower

Dipankar Bose - XLRI

Screwdriver

8/8/2019 Session 17 ORMB10-1

19/26

Customer Oriented FAST May have more than one Basic function

Only left side scope line is there

Task

Basic function uppor ng unc ons

Assure convenience

Assure dependability

Satisfy user Attract user

Dipankar Bose - XLRI

8/8/2019 Session 17 ORMB10-1

20/26

Customer Oriented FAST

Dipankar Bose - XLRI

8/8/2019 Session 17 ORMB10-1

21/26

FAST Diagram (Customer Oriented)1. Prepare a list of all functions

2. Use verb and noun to define a function

.

Involve the whole team in the diagramming exercise

4. Select the card which appears to be basic function. pp y og ca ques on ow an w y on se ec e

function to determine functions to right and left on this

selected function

6. The logical question why to basic function will provideTask

Dipankar Bose - XLRI

8/8/2019 Session 17 ORMB10-1

22/26

FAST Diagram (Customer Oriented) C ti dontinued

8. Task will be on the left side of scope line

9. Support functions should be placed below the basic

10. There are four supporting functions at the primary level

They are

Assure convenience/ Assure dependability/

a s y user rac user

11. Each supporting function will branch out to secondary

level function

12. Secondary level functions will branch out to third levelfunctions

Dipankar Bose - XLRI

Backcrewdriver

8/8/2019 Session 17 ORMB10-1

23/26

Function-Cost-Worth Analysis(FCWA)FCWA) Value Gap = Difference between Worth and Cost

Indicates scope of possible value improvement

=

More than 1 Potential for value improvement

Dipankar Bose - XLRI

8/8/2019 Session 17 ORMB10-1

24/26

Cost Allocation Procedure1. Split the product into components and service/system into

activities

.

3. Divide the total cost of product/service/system into

components/activities cost. rocesses per orme o ac eve par cu ar unc on

Cost allocated to that function

5. Component provided to achieve particular function

Cost allocated to that function6. Component accomplishes more than one function

Dipankar Bose - XLRI

7. Hold each function in isolation of the others to do this

8/8/2019 Session 17 ORMB10-1

25/26

FunctionCostWorth Matrix1. Write down all functions for the project as a whole

2. Divide the project into parts

.

An active verb and a measurable noun

4. Apply three tests to identify the basic and secondaryunc ons

5. Cost of each part to be ascertained

6. Cost of the part to be transformed into function

7. Check whether the cost of the functions are equal to thesum of the costs of the parts

Dipankar Bose - XLRI

8/8/2019 Session 17 ORMB10-1

26/26